Document:

DIRECTOR
FEE EXCHANGE AGREEMENT

     

    THIS
DIRECTOR FEE EXCHANGE AGREEMENT (this “Agreement”) is dated
as of April ___, 2010, by and between Epic Energy Resources, Inc., a Colorado
corporation (the “Corporation”), and
the undersigned individual (the “Director”).  The
Corporation and Director are referred to as a “Party” and
collectively as the “Parties”.

     

    WHEREAS, Director has
previously deferred $_________ of his/her board fees (such deferred amount, the
“Deferred
Amount”);

     

    WHEREAS, Director desires to
exchange the Deferred Amount for shares of Series A Convertible Preferred Stock
of the Corporation (the “Shares”);
and

     

    WHEREAS, the Corporation
desires to exchange (the “Exchange”) one newly
issued and unregistered Share for each $1.00 of Deferred Amount (the Shares
received in the Exchange referred to in this Agreement as the “Exchanged
Securities”).

     

    NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    1.           Exchange.

     

    (a)           Exchange
Ratio.  The Corporation and Director hereby agree to exchange
at the Closing one Exchanged Security for each $1.00 of Deferred
Amount.

     

    (b)          Exchange.  To
effect this Exchange, Director will deliver to the Corporation this executed
Agreement, and the Corporation will deliver to Director a stock certificate
representing the number of shares of Exchanged Securities that is equal to the
Deferred Amount being so transferred by Director to the Corporation within [20]
business days after the Closing Date.

     

    (c)           Discharge and Satisfaction
of Deferred Amount.  The issuance of the Shares is in full
satisfaction of the Deferred Amount, and Director waives any claims to the
Deferred Amount and releases and discharges the Corporation from any further
obligation for the Deferred Amount.

     

    2.           The
Closing.

     

    (a)           Closing
Date.  The closing of the transactions contemplated by this
Agreement (the “Closing”) shall take
place at the offices of Mayer Brown LLP, 700 Louisiana, Suite 3400, Houston,
Texas 77002 at 10:00 a.m., Houston time, on April 9, 2010 (“Closing Date”), or at
such other place, date or time as the Corporation may determine in its sole
discretion.

     

    (b)          Conditions to Closing of
Directors.  The obligation of Director to consummate the
transactions on the Closing Date as contemplated by this Agreement shall be
subject to the satisfaction or waiver on or prior to the Closing Date of the
following conditions:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)           the
Corporation shall have performed and complied in all material respects with all
obligations and agreements required to be performed and complied with by the
Corporation hereunder on or prior to the Closing Date; and

     

    (ii)          the
representations and warranties of the Corporation contained in this Agreement
shall be true and correct in all material respects as of the Closing Date as if
made as of such date.

     

    (c)           Conditions to Closing of
Corporation.  The obligation of the Corporation to consummate
the transactions on the Closing Date shall be subject to the satisfaction or
waiver on or prior to the Closing Date of the following conditions:

     

    (i)           Director
shall have performed and complied in all material respects with all obligations
and agreements required to be performed and complied with by Director hereunder
on or prior to the Closing Date;

     

    (ii)          the
representations and warranties of Director contained in this Agreement shall be
true and correct in all material respects as of the Closing Date as if made as
of such date;

     

    (iii)         there
shall not have occurred or be likely to occur any event materially affecting the
Corporation’s business or financial affairs that would or might reasonably be
expected to prohibit, prevent, restrict or delay the Closing or that might
reasonably be expected to be material to Director in deciding whether to
participate in the Exchange;

     

    (iv)        there
shall not have been any action taken or threatened, or any statute, rule,
regulation, judgment, order, stay, decree or injunction promulgated, enacted,
entered, enforced or deemed applicable to the Exchange, by or before any court
or governmental regulatory or administrative agency or authority, tribunal,
domestic or foreign, that (a) challenges the making of the Exchange or might
reasonably be expected to, directly or indirectly, prohibit, prevent, restrict
or delay consummation of, or might otherwise reasonably be expected to adversely
affect in any material manner, the Exchange; or (b) could reasonably be expected
to materially adversely affect the Corporation’s business, condition (financial
or otherwise), income, operations, properties, assets, liabilities or prospects,
or materially impair the contemplated benefits of the Exchange, or the
consummation of the Exchange as a whole to the Corporation or that might be
material to Director in deciding whether to participate in the Exchange;
and

     

    (v)         the
Corporation’s sale of a minimum of 3,500,000 shares of the Corporation’s Series
A Preferred Stock, as contemplated by Corporation’s confidential private
placement memorandum dated as of March 13, 2010, as supplemented on April 6,
2010 (the “Private Placement Memorandum”);

     

    (vi)        the
holders of the Corporation’s Series C Warrants tender, and do not withdraw, 100%
of the Corporation’s outstanding Series C Warrants, as contemplated by the
Private Placement Memorandum;

    
      
         

      

      
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    (vii)       the
holders of the Corporation’s Series D Warrants tender, and do not withdraw, 100%
of the Corporation’s outstanding Series D Warrants, as contemplated by the
Private Placement Memorandum; and

     

    (viii)      holders
of at least 90% of the outstanding principal amount of the Debentures execute
the Waiver and Amendment to Debenture and the Amendment to Securities Purchase
Agreement, as contemplated by the Private Placement Memorandum.

     

    3.           Representations and
Warranties of the Corporation.  The Corporation represents and
warrants to Director as follows:

     

    (a)           Corporate
Status.  The Corporation is a corporation duly organized,
validly existing and in good standing under the laws of the State of Colorado
and is duly licensed or qualified to transact business as a foreign corporation
and is in good standing in each jurisdiction in which the nature of the business
transacted by it or the character of the properties owned or leased by it
requires such licensing or qualification, except where the failure to be so
licensed or qualified would not reasonably be expected to have a material
adverse effect on the business, condition (financial or otherwise) or assets of
the Corporation.  The Corporation has full power and authority,
corporate or otherwise, to own and hold its properties and to carry on its
business as now conducted and as proposed to be conducted, to execute, deliver
and perform this Agreement.

     

    (b)          Authorization/Enforceability.  The
execution and delivery of this Agreement and the performance by the Corporation
of its obligations hereunder, have been duly authorized by all requisite action,
corporate or otherwise, and constitute the valid and legally binding obligations
of the Corporation, enforceable in accordance with its terms and
conditions.  The Corporation need not give any notice to, make any
filing with, or obtain any authorization, consent, or approval of any
Governmental Authority in order to consummate the transactions contemplated by
this Agreement, except with respect to federal and state securities
laws.

     

    (c)           Non-Contravention.  The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, will not violate any provision of law, any
order of any court or other agency of government or the Articles of
Incorporation or Bylaws of the Corporation, as may be amended to date, and do
not and will not result in a material breach of or constitute (with due notice
or lapse of time or both) a material default under any provision of any
indenture, agreement or other instrument to which the Corporation, or any of its
properties or assets, is bound.

     

    (d)           Consents/Approvals.  No
consent, approval, authorization, order, registration or qualification of or
with any Governmental Authority or other Person or entity is required for the
issuance and sale of the Exchanged Securities by the Corporation to Director or
the consummation by the Corporation of the transactions contemplated by this
Agreement.

    
      
         

      

      
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    (e)           Exchanged Securities
Authorization.  The Exchanged Securities have been duly
authorized and, when issued and delivered, will be duly and validly issued and
fully paid and nonassessable.  Upon consummation of the transactions
contemplated hereby, good and valid title to the Exchanged Securities, free and
clear of all Claims, will be transferred by the Corporation to
Director.

     

    (f)           Capitalization.  The
capitalization of the Corporation is as set forth on Schedule 3(f), which
Schedule 3(f) shall also include the number of shares of the Corporation’s
common stock, no par value (“Common Stock”) owned
beneficially, and of record, by Affiliates of the Corporation as of the date
hereof.  The Corporation has not issued any capital stock since its
most recently filed periodic report under the Securities Exchange Act of 1934,
as amended (“Exchange
Act”), other than pursuant to the exercise of employee stock options
under the Corporation’s stock option plans, the issuance of shares of Common
Stock to employees pursuant to the Corporation’s employee stock purchase plans
and pursuant to the conversion and/or exercise of other securities of the
Corporation that are convertible into Common Stock outstanding as of the date of
the most recently filed periodic report under the Exchange Act.  The
issuance of securities hereunder will not obligate the Corporation to issue
shares of Common Stock or other securities to any Person (other than Director)
and will not result in a right of any holder of Corporation securities to adjust
the exercise, conversion, exchange or reset price under any of such securities,
except with respect to any Series C Warrant and Series D Warrant that remain
outstanding. All of the outstanding shares of capital stock of the Corporation
are validly issued, fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe
for or purchase securities.  There are no stockholders agreements,
voting agreements or other similar agreements with respect to the Corporation’s
capital stock to which the Corporation is a party or, to the knowledge of the
Corporation, between or among any of the Corporation’s
stockholders.

     

    4.           Representations and
Warranties of Director.  Director represents and warrants,
severally and not jointly, to the Corporation as follows:

     

    (a)           Legal
Capacity.  Director has full legal right, power and capacity to
execute and deliver this Agreement and to perform his, her or its obligations
hereunder.  This Agreement constitutes the valid and legally binding
obligation of Director, enforceable in accordance with its terms and
conditions.  Director need not give any notice to, make any filing
with, or obtain any authorization, consent, or approval of any third party or
Governmental Authority in order to consummate the transactions contemplated by
this Agreement.  Except as set forth on the signature page hereto, no
Person has any community property rights by virtue of marriage or otherwise in
the Deferred Amount.  Any such Person with community property rights
has duly executed and delivered to the Corporation at or prior to the Closing a
copy of the consent attached hereto as Exhibit
A.

    
      
         

      

      
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    (b)           Non-Contravention.  The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby, will not violate any provision of law, any
order of any court or other agency of government, as may be applicable, and do
not and will not result in a material breach of or constitute (with due notice
or lapse of time or both) a material default under any provision of any
agreement or other instrument to which Director is bound.

     

    (c)           Consents/Approvals.  No
consent, approval, authorization, order, registration or qualification of or
with any Governmental Authority or other entity or Person is required for the
Exchange or the consummation by Director of the transactions contemplated by
this Agreement.

     

    (d)           Investment
Representations.

     

    (i)           Director
qualifies as an “accredited investor” (as defined in Rule 501(a) of Regulation D
under the Securities Act of 1933, as amended (the “Securities Act”)) and
is acquiring the Exchanged Securities hereunder for his/her own account and with
no intention of distributing or selling the Exchanged Securities except pursuant
to a registration or an available exemption under applicable
law.  Director understands that the Exchanged Securities have not been
(and are not being) registered under the Securities Act by reason of their
contemplated issuance in transaction(s) exempt from the registration and
prospectus delivery requirements of the Securities Act pursuant to
Section 4(2) thereof (including the rules and regulations promulgated
thereunder), and that the reliance of the Corporation on such exemption from
registration may be predicated in part on the representations and warranties of
Director hereunder.

     

    (ii)          Director
agrees that it will not sell or otherwise dispose of any of the Exchanged
Securities unless such sale or other disposition has been registered or is
exempt from registration under the Securities Act and has been registered or
qualified or is exempt from registration or qualification under applicable
securities laws of any state. Director agrees that, prior to selling or
otherwise disposing of any of the Exchanged Securities pursuant to an exemption
under the Securities Act, the Corporation may require an opinion of counsel
selected by the Corporation, the form and substance of which opinion shall be
reasonably satisfactory to the Corporation, to the effect that such sale or
disposition does not require registration of such Exchanged Securities under the
Securities Act.

     

    (iii)         Director
understands that a restrictive legend consistent with the foregoing set forth in
Section 7(a) of
this Agreement has been or will be placed on the certificates evidencing the
Exchanged Securities to be issued to him/her hereunder, and related stop
transfer instructions will be noted in the transfer records of the Corporation
and/or its Transfer Agent for the Exchanged Securities during the
Suspension.

     

    (iv)        Director
will comply with insider trading laws and policies and the applicable “control
securities” provisions of Rule 144 in addition to any other obligations set
forth in this Agreement.

    
      
         

      

      
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    (v)         Director
has such knowledge and experience in financial and business matters so as to be
capable of evaluating the merits and risk of an investment in the Exchanged
Securities.  Director acknowledges that he/she has had access to all
information concerning the Corporation and its respective businesses, assets,
liabilities, financial statements, and obligations which have been requested and
has been provided the opportunity to ask questions of and receive answers from
the Corporation to fully and effectively evaluate the Exchange and the
transactions contemplated herein.  Director acknowledges and
represents that he/she has received and reviewed the Private Placement
Memorandum.  Director understands that there is a holding period for
purposes of Rule 144 under the Securities Act with respect to the Exchanged
Securities, and Director is able to bear the economic risk of loss of the
investment in such Exchanged Securities and is able to afford a complete loss of
such investment.

     

    5.           Indemnification.

     

    (a)           Director
understands and acknowledges that the Corporation is relying on representations,
warranties, covenants and agreements made by Director to the Corporation in this
Agreement.  Director hereby agrees to indemnify, defend and hold
harmless the Corporation, its Affiliates and their directors, officers,
shareholders, principals, representatives, agents and employees (each, a “Corporation Indemnified
Party”), against any and all loss, damage, liability or expense
(including, but not limited to, expenses related to the investigation and
enforcement of any provisions of this Agreement and/or any reasonable attorneys’
fees) (collectively, “Losses”) which any
Corporation Indemnified Party may suffer, sustain or incur by reason of or in
connection with or arising under (i) any inaccuracy or breach of
representation or warranty of Director contained in this Agreement;
(ii) the breach of this Agreement or any covenant or agreement made by
Director in this Agreement; or (iii) the sale or distribution by Director
of the Exchanged Securities in violation of this Agreement and/or the Securities
Act or any other applicable law.  This right to indemnification is in
addition to any other remedy available to the Corporation under this
Agreement.

     

    (b)           The
Corporation understands and acknowledges that Director is relying on
representations, warranties, covenants and agreements made by the Corporation to
Director in this Agreement.  The Corporation hereby agrees to
indemnify, defend and hold harmless Director against any and all Losses which
Director may suffer, sustain or incur by reason of or in connection with or
arising under (i) any inaccuracy or breach of representation or warranty of
the Corporation contained in this Agreement; or (ii) the breach of this
Agreement or any covenant or agreement made by the Corporation in this
Agreement.  This right to indemnification is in addition to any other
remedy available to Director under this Agreement.

     

    6.           Certain
Definitions.

     

    (a)           “Affiliate” (and, with
a correlative meaning, “affiliated”) means,
with respect to any Person, any direct or indirect subsidiary of such Person,
and any other Person that directly, or through one or more intermediaries,
Controls or is Controlled by or is under common Control with such first
Person.  As used in this definition, “Control” (and, with
correlative meanings, “Controlled by” and
“under common Control
with”) means the possession, directly or indirectly, of the power to
direct the management or policies of a Person (whether through ownership of
securities or partnership or other ownership interests, by contract or
otherwise) and shall be construed as such term is used in the rules promulgated
under the Securities Act.

    
      
         

      

      
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    (b)           “Claims” shall mean
the following of any nature whatsoever: security interests, liens, deeds of
trust, hypothecations, pledges, claims (pending or threatened), charges,
escrows, encumbrances, lock-up arrangements, options, rights of first offer or
refusal, community property rights, mortgages, indentures, security agreements
or other agreements, arrangements, contracts, commitments, understandings or
obligations, whether written or oral and whether or not relating in any way to
credit or the borrowing of money.

     

    (c)           “Commission” means the
United States Securities and Exchange Commission.

     

    (d)           “Governmental
Authority” means any entity exercising Director, legislative, judicial,
regulatory or administrative functions of or pertaining to government, including
any governmental authority, independent or autonomous official authority,
agency, department, board, commission or instrumentality of the United States or
any other country, or any political subdivision thereof, whether federal, state
or local, and any tribunal, court or arbitrator(s) of competent
jurisdiction.

     

    (e)           “Person(s)” means and
includes any natural persons, sole proprietorships, corporations, limited
partnerships, limited liability companies, general partnerships, joint stock
companies, joint ventures, associations, companies, trusts, banks, trust
companies, land trusts, business trusts or other organizations, whether or not
legal entities, all Governmental Authorities and all other
entities.

     

    (f)           
“Trading Day”
means a day on which the principal Trading Market is open for
trading.

     

    (g)           “Trading Market” means
any of the following markets or exchanges on which the Common Stock is listed or
quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital
Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York
Stock Exchange or the OTC Bulletin Board (or any successors to any of the
foregoing).

     

    (h)           “Transfer Agent” shall
mean TranShare Corporation at 5150 DTC Parkway, Suite 325, Greenwood Village, CO
80111, in its capacity as transfer agent to the Corporation, or any successor
transfer agent to the Corporation.

    
      
         

      

      
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    7.           Miscellaneous.

     

    (a)           Legend
Requirement.

     

    (i)           Each
certificate representing Exchanged Securities held or acquired by Director will
contain legends acknowledging that the shares represented by such certificate
are restricted securities and are subject to this Agreement, as
follows:

     

    THE
SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS
OF ANY STATE OR OTHER JURISDICTION.  THE SHARES MAY NOT BE OFFERED,
SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, OR (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT
THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND
SUCH OTHER APPLICABLE LAWS.

     

    (ii)          The
Corporation agrees that following such time as such legend is no longer required
under this Section 7(a), it will, no later than ten trading days following the
delivery by Director to the Corporation or the Transfer Agent of a certificate
representing the Exchanged Securities, as the case may be, issued with a
restrictive legend, deliver or cause to be delivered to Director a certificate
representing such shares that is free from all restrictive and other
legends.  The Corporation shall cause legal counsel to issue an opinion to
the Transfer Agent promptly if the Transfer Agent conditions the removal of the
legend on receipt of such an opinion. The Transfer Agent and any applicable
broker shall each be instructed not to recognize any transfer by Director that
does not comply with this Agreement.

     

    (b)           Material Nonpublic
Information.  Director acknowledges and agrees that it has
received material nonpublic information in connection with the Exchange and that
it will not sell or otherwise dispose of any of the Exchanged Securities unless
such material nonpublic information has been publicly disclosed or no longer
constitutes material nonpublic information.  The Company shall, within
4 Trading Days of the date hereof, issue a Current Report on Form 8-K disclosing
the material terms of the transactions contemplated hereby, and shall attach
this Agreement and all other related agreements thereto.

     

    (c)           No Right to Continued
Employment.  This Agreement shall not confer upon Director any
right with respect to continuance of employment by the Company or any subsidiary
or Affiliate of the Company.

    
      
         

      

      
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    (d)           Tax
Requirements.  The Company shall have the right to deduct any
applicable federal, state, or local taxes required by law to be withheld with
respect to the Exchange hereunder.  Director shall be required to pay
the Company the amount of any taxes that the Company is required to withhold
with respect to the Exchange at the time of the Closing.

     

    (e)           Certain
Transfers.  Director hereby covenants with the Corporation not
to make any sale of the shares of Common Stock underlying the Exchanged
Securities under the Registration Statement without complying with the
provisions of this Agreement and without effectively causing the prospectus
delivery requirement under the Securities Act to be satisfied (whether
physically or through compliance with Rule 172 under the Securities Act or any
similar rule), and Director acknowledges and agrees that such shares of Common
Stock underlying the Exchanged Securities are not transferable on the books of
the Corporation unless the certificate submitted to the transfer agent
evidencing the shares of Common Stock underlying the Exchanged Securities is
accompanied by a separate Director’s Certificate of Subsequent Sale: (i) in the
form of Exhibit
B hereto, (ii) executed by Director, and (iii) to the effect that (A) the
shares of Common Stock underlying the Exchanged Securities have been sold in
accordance with the Registration Statement, the Securities Act, and any
applicable state securities or Blue Sky laws, and (B) the prospectus delivery
requirement effectively has been satisfied.  Director acknowledges
that there may occasionally be times when the Corporation must suspend the use
of the prospectus (the “Prospectus”) forming
a part of the Registration Statement (a “Suspension”) until
such time as an amendment to the Registration Statement has been filed by the
Corporation and declared effective by the Commission, or until such time as the
Corporation has filed an appropriate report with the Commission pursuant to the
Exchange Act.  Without the Corporation’s prior written consent, which
consent shall not unreasonably be withheld or delayed, Director shall not use
any written materials to offer the shares of Common Stock underlying the
Exchanged Securities for resale other than the Prospectus, including any “free
writing prospectus” as defined in Rule 405 under the Securities
Act.  Director covenants that it will not sell any shares of Common
Stock underlying the Exchanged Securities pursuant to said Prospectus during the
period commencing at the time when the Corporation gives Director written notice
of the suspension of the use of said Prospectus and ending at the time when the
Corporation gives Director written notice that Director may thereafter effect
sales pursuant to said Prospectus.  Notwithstanding the foregoing, the
Corporation agrees that no Suspension shall be for a period of longer than 60
consecutive days, and no Suspension shall be for a period longer than 120 days
in the aggregate in any 12 month period.  Director further covenants
to notify the Corporation promptly of the sale of all of its shares of Common
Stock underlying the Exchanged Securities. The term “Registration Statement”
shall include any preliminary prospectus, final prospectus, free writing
prospectus, exhibit, supplement, or amendment included in or relating to, and
any document incorporated by reference in, the Registration
Statement.  At any time that Director is an Affiliate of the
Corporation, any resale of the Exchanged Securities or shares of Common Stock
underlying the Exchanged Securities that purports to be effected under Rule 144
shall comply with all of the requirements of such rule, including the “manner of
sale” requirements set forth in Rule 144(f).

    
      
         

      

      
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    (f)           DISCLAIMER.  THE
REPRESENTATIONS AND WARRANTIES OF THE CORPORATION CONTAINED IN SECTION 3
CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF THE
CORPORATION IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.  EXCEPT FOR SUCH REPRESENTATIONS AND WARRANTIES, NO PARTY NOR
ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY
WITH RESPECT TO THE CORPORATION OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT, AND THE CORPORATION DISCLAIMS ANY OTHER REPRESENTATIONS OR
WARRANTIES, WHETHER MADE BY SUCH PARTY OR ANY OF ITS AFFILIATES, OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES (INCLUDING WITH RESPECT TO THE
DISTRIBUTION OF THE PRIVATE PLACEMENT MEMORANDUM, OR ANY PERSON’S RELIANCE ON,
ANY INFORMATION, DISCLOSURE OR OTHER DOCUMENT OR OTHER MATERIAL MADE
AVAILABLE).

     

    (g)           Equitable
Remedy.  Each Party shall agree that in addition to any other
remedy that may be available to such Party hereunder, the Party shall be
entitled to specific performance.  Notwithstanding anything to the
contrary in this Agreement, each Party shall be responsible for paying its own
expenses, including legal fees, incurred in enforcing this
Agreement.

     

    (h)           Notices.  All
notices, claims, demands and other communications hereunder shall be in writing
and shall be deemed given upon (i) confirmation of receipt of a facsimile
transmission, (ii) confirmation of delivery when delivered by a standard
overnight carrier or (iii) the expiration of five (5) business days
after the day when mailed by registered or certified mail (postage prepaid,
return receipt requested), addressed to the respective Parties at the following
addresses (or such other address for a Party as shall be specified by like
notice):

     

    
      	
            	
              If to the Corporation, to:

            	
              Epic
      Energy Resources, Inc.

            

    

    
      	
               
      

            	
              1450
      Lake Robbins Drive, Suite 160

            

    

    
      	
               
      

            	
              The
      Woodlands, TX 77380

            

    

    

    
      	
               
      

            	
              Attention:
      Mike Kinney

            

    

    
      	
               
      

            	
              Telephone:
      (281) 419-3742

            

    

    
      	
               
      

            	
              Fax:
      (281) 419-1114

            

    

    
      	
               
      

            	
              Email:
      MKinney@1Epic.com

            

    

     

    
      	
               
      

            	
              If
      to Director, to:

            	
              Director’s
      address, phone or

              fax
      number appearing on the signature

              page
      hereto.

            

    

     

    (i)           No Third-Party
Beneficiaries.  Unless otherwise specifically set forth herein,
this Agreement shall not confer any rights or remedies upon any Person other
than the Parties hereto and their respective successors and
assigns.

     

    (j)           Entire
Agreement.  This Agreement (including the documents referred to
herein) constitutes the entire agreement among the parties hereto and supersedes
any prior understandings, agreements, or representations by or among the
parties, written or oral, to the extent they relate in any way to the subject
matter hereof.

    
      
         

      

      
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    (k)           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same
instrument.

     

    (l)           
Headings.  The
section headings contained in this Agreement are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this
Agreement.

     

    (m)          Governing
Law.  This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of Texas without giving effect to
any choice or conflict of law provision or rule (whether of the State of Texas
or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Texas.

     

    (n)           Amendments and
Waivers.  No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by the Corporation and
Director.

     

    (o)           Gender.  All
pronouns and any variation thereof shall be deemed to refer to the masculine,
feminine, neuter, singular, or plural as the identity of the person or entity or
the context may require.

     

    (p)           Severability.  Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.

     

    (q)           No Presumption Against
Drafter.  Each of the Parties has jointly participated in the
negotiation and drafting of this Agreement.  In the event of any
ambiguity or a question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by each of the Parties and no presumptions or
burdens of proof shall arise favoring any Party by virtue of the authorship of
any of the provisions of this Agreement.

     

    (r)           Successors and
Assigns.  Except as otherwise specifically provided herein,
this Agreement shall be binding upon, and inure to the benefit of, the Parties
hereto and their respective successors and permitted assigns.

     

    (s)           Survival.  All
covenants, agreements, representations and warranties made herein shall survive
the Closing and the consummation of the exchange of the Debenture.

     

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    EPIC
ENERGY RESOURCES, INC.

    signature
page

     

    IN
WITNESS WHEREOF, the undersigned has executed this signature page evidencing its
tender of the Deferred Amount in exchange for Shares in the
Corporation.

     

    
      
        
          
            	 
      	
                    Signature:
      _______________________________

                  
	 
      	 
      
	 
      	
                    Print
      Name: ______________________________

                  
	 
      	 
      
	 
      	
                    Address:________________________________

                  
	 
      	 
      
	 
      	
                    Phone:__________________________________

                  
	 
      	 
      
	 
      	
                    Fax:____________________________________

                  

          

        

      

    

     

    
      
        
          
            	
                    If
      applicable,  Community Property Interest

                  	 
      
	
                    In
      the Deferred Amount

                  	 
      
	 
      	 
      
	
                    Signature: 

                  	 
      	 
      
	 
      	 
      	 
      
	
                    Print
      Name: 

                  	 
      	 
      

          

        

      

    

     

    NOTE:  PLEASE
DO NOT DATE THIS AGREEMENT AS IT WILL BE DATED IF AND WHEN ACCEPTED BY THE
CORPORATION.

    

    IN
WITNESS WHEREOF, the Corporation has agreed to and accepted this Director Fee
Exchange Agreement subject to the terms and conditions hereof as of the day and
year set forth below.

     

    Date:   ___________________,
2010:

     

    
      
        
          
            	 
      	
                    EPIC
      ENERGY RESOURCES, INC.

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    FORM
OF

    COMMUNITY
PROPERTY WAIVER

     

    The
undersigned spouse of _____________________ hereby acknowledges that she has
read, understands and consents to the terms and provisions of Director Fee
Exchange Agreement (the “Agreement”), executed
as of ______________, 2010, consents to the execution of the Agreement and any
amendments, modifications and supplements thereto by _____________________ and
agrees that the undersigned’s interest in the Deferred Amount shall be subject
to and bound by the Agreement.  The undersigned’s obligations
hereunder shall not be affected by any amendment or other modification of the
Agreement or any document related thereto, which may be amended or modified at
any time and from time to time, without the consent of or notice to the
undersigned.

     

    
      
        	 
      	 
      
	 
      	
                Name

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

    [Transfer
Agent]

    [Address]

     

    Attention:

     

    DIRECTOR’S
CERTIFICATE OF SUBSEQUENT SALE

     

    The
undersigned, ________________________________________________ hereby certifies
[fill in official name of individual] that he/she is the holder of the shares
evidenced by the attached certificate, and as such, sold such shares on
___________________________in accordance with the terms of the [date] Director
Fee Exchange Agreement and in accordance with Registration Statement number
______________________________________________________ [fill in the number of or
otherwise identify Registration Statement] or otherwise in accordance with the
Securities Act of 1933, as amended, and, in the case of a transfer pursuant to
the Registration Statement, the requirement of delivering a current prospectus
by the Corporation has been complied with in connection with such
sale.

     

    
      
        
          
            	
                    Signature:

                  	 
      	 
      
	 
      	 
      	 
      
	
                    Print
      Name:

                  	 
      	 
      

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
C

     

    STOCK
POWER

     

    FOR VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers unto
[_______________________________] a number of [____________] shares of Series A
Convertible Preferred Stock in Epic Energy Resources, Inc., a corporation
organized under the laws of the State of Colorado, represented by Certificate
No. [_____________] and do hereby irrevocably constitute and appoint
[_____________________________] attorney to transfer the said stock on the books
of Epic Energy Resources, Inc. with full power of substitution in the
premises.

     

    
      
        
          
            
              
                	
                        DATED:
      ____________________

                      	 
      
	 
      	 
      
	 
      	
                        Signature: 

                      	 
      
	 
      	
                        Print: 

                      	 
      
	 
      	 
      
	
                        IN
      PRESENCE OF:

                      	 
      
	 
      	 
      
	 
      	 
      
	
                        Name:

                      	 
      

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
3(f)

    

    The
following table sets forth our capitalization as of  April 5, 2010 on
an actual basis.

    

    
      
        
          
            	
                    Cash

                  	 	$	153	 
	 
      	 	 	 	 
	
                    Debentures

                  	 	 	14,922	 
	
                    Note
      Payable Secured by Assets Acquired

                  	 	 	1.343	 
	
                    Note
      Payable – EIS Acquisition

                  	 	 	1,070	 
	
                    Other
      Liabilities

                  	 	 	7,568	 
	
                    Total
      Debt

                  	 	$	24,903	 
	 
      	 	 	 	 
	
                    Stockholders’
      equity

                  	 	 	 	 
	
                    Series
      A Preferred Stock

                  	 	$	-	 
	
                    Common
      Stock, no par value, authorized 100,000,000 shares; outstanding
      45,413,7811,
      net of treasury stock

                  	 	 	33,639	 
	
                    Warrants

                  	 	 	-	 
	
                    Additional
      paid-in capital

                  	 	 	1,924	 
	
                    Accumulated
      deficit

                  	 	 	(31,778	)
	
                    Accumulated
      other comprehensive loss

                  	 	 	-	 
	
                    Treasury
      stock, at cost, no shares

                  	 	 	-	 
	
                    Total
      stockholders’ equity

                  	 	 	3,785	 
	 
      	 	 	 	 
	
                    Total
      Capitalization

                  	 	$	28,688	 

          

        

      

    

    
       

      
        

      

    

    1 Of
which, Affiliates of the Company own 77.5%.REGISTRATION
RIGHTS AGREEMENT

     

    This
Registration Rights Agreement (this “Agreement”) is made and entered into as of
this ____ day of ________________, 2010, between Epic Energy Resources, Inc., a
Colorado corporation (the “Company”) and each of the several signatories hereto
pursuant to the Subscription Agreement (the “Purchase Agreement”), dated as of
the date hereof, between the Company and each purchaser therein (each such
purchaser, a “Purchaser” and, collectively, the “Purchasers”) and each of the
several signatories hereto pursuant to the Waiver and Amendment of Debenture
(“Debenture Amendment”), dated as of the date hereof, between the Company and
each participant therein (each such participant, a “Debenture Holder” and,
collectively, the “Debenture Holders”) and each of the several signatories
hereto pursuant to the Series C Exchange Offer Agreement (“Series C
Agreement”), dated as of the date hereof, between the Company and each
participant therein (each such participant, a “Series C Holder” and,
collectively, the “Series C Holders”) and each of the several signatories hereto
pursuant to the Series D Exchange Offer Agreement (“Series D Agreement”), dated
as of the date hereof, between the Company and each participant therein
(together with the Purchasers, the Debenture Holders and the Series C Holders,
the “Acquirors”).

     

    The
Company and each Acquiror hereby agrees as follows:

     

    1.           Definitions.

     

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

     

    “Advice”
shall have the meaning set forth in Section 6(c).

     

    “Business
Day” means any day except any Saturday, any Sunday, any day which is a federal
legal holiday in the United States or any day on which banking institutions in
the State of New York are authorized or required by law or other governmental
action to close.

     

    “Commission”
means the Securities and Exchange Commission.

     

    “Common
Stock” means the common stock of the Company, no par value per share, and any
other class of securities into which such securities may hereafter be
reclassified or changed into.

     

    “Consent
Shares” means the shares of Common Stock issued to each Debenture Holder
pursuant to the Debenture Agreement.

     

    “Converted
Shares” means the shares of Common Stock issuable upon conversion of the
Preferred Shares.

     

    “Effectiveness
Period” shall have the meaning set forth in Section 2(b).

     

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     “Exchanged
Shares” shall mean the shares of Common Stock issued to each Series C Holder
pursuant to the Series C Agreement and each Series D Holder pursuant to the
Series D Agreement.

     

    “Filing
Date” means, with respect to the Initial Registration Statement required
hereunder, one hundred twenty (120) days after the Company files an amendment to
its Articles of Incorporation, as amended, with the Secretary of State of the
State of Colorado increasing the number of authorized shares of Common Stock
sufficient to permit the conversion of the Series A Preferred Stock into Common
Stock, and with respect to any additional Registration Statements which may be
required pursuant to Section 3(c), the earliest practical date on which the
Company is permitted by SEC Guidance to file such additional Registration
Statement related to the Registrable Securities.

     

    “Holder”
or “Holders” means the holder or holders, as the case may be, from time to time
of Registrable Securities.

     

    “Indemnified
Party” shall have the meaning set forth in Section 5(c).

     

    “Indemnifying
Party” shall have the meaning set forth in Section 5(c).

     

    “Initial
Registration Statement” means the initial Registration Statement filed pursuant
to this Agreement.

     

    “Losses”
shall have the meaning set forth in Section 5(a).

     

    “Person”
means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity
of any kind.

     

    “Plan of
Distribution” shall have the meaning set forth in Section 2(a).

     

    “Preferred
Shares” means the shares of Series A Convertible Preferred Stock issued to each
Purchaser pursuant to the Purchase Agreement.

     

    “Proceeding”
means an action, claim, suit, investigation or proceeding (including, without
limitation, an informal investigation or partial proceeding, such as a
deposition), whether commenced or threatened.

     

    “Prospectus”
means the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon
Rule 430A promulgated by the Commission pursuant to the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by a
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such
Prospectus.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Registrable
Securities” means (i) all Shares, and (ii) any securities issued or issuable
upon any stock split, dividend or other distribution, recapitalization or
similar event with respect to the foregoing.

     

    “Registration
Statement” means the registration statement required to be filed hereunder and
any additional registration statements contemplated by Section 3(c), including
(in each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

     

    “Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same purpose and effect as such Rule.

     

     “Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same purpose and effect as such Rule.

     

    “Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same purpose and effect as such Rule.

     

    “SEC
Guidance” means (i) any publicly-available written or oral guidance, comments,
requirements or requests of the Commission staff and (ii) the Securities
Act.

     

    “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

     “Selling
Securityholder Notice and Questionnaire” shall have the meaning set forth in
Section 3(a).

     

    “Shares”
means the Consent Shares, the Converted Shares and the Exchanged
Shares.

     

    “Trading
Day” means a day on which the New York Stock Exchange is open for
trading.

     

     “Transfer
Agent” shall mean TranShare Corporation at 5105 DTC Parkway, Suite 325, Greewood
Village, CO 80111, in its capacity as transfer agent to the Corporation, or any
successor transfer agent to the Corporation.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.           Shelf
Registration.

     

    (a)           On
or prior to each Filing Date, the Company shall use its best efforts to prepare
and file with the Commission a Registration Statement covering the resale of all
or such maximum portion of the Registrable Securities as permitted by SEC
Guidance (provided that, the Company shall use commercially reasonable efforts
to advocate with the Commission for the registration of all of the Registrable
Securities in accordance with the SEC Guidance) that are not then registered on
an effective Registration Statement for an offering to be made on a continuous
basis pursuant to Rule 415.  The Registration Statement shall be on
Form S-3 (except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-3, in which case such registration shall be on
another appropriate form in accordance herewith) and shall contain (unless
otherwise directed by at least an 85% majority in interest of the Holders)
substantially the “Plan of Distribution” attached hereto as Annex
A.

     

    (b)           Subject
to the terms of this Agreement, the Company shall use its commercially
reasonable efforts to cause a Registration Statement to be declared effective
under the Securities Act (i) within twenty (20) Business Days after the
Commission has advised the Company that the Registration Statement has not been
selected for “review” or (ii) within twenty (20) Business Days after the
Commission has advised the Company that it has no further comments to the
Registration Statement, as the case may be and shall use its commercially
reasonable efforts to keep such Registration Statement continuously effective
under the Securities Act until the earliest of (i) one (1) year after the
effective date of the Registration Statement, (ii) the date on which the
Registrable Securities covered by such Registration Statement have been sold or
(iii) the date on which the Registrable Securities covered by the Registration
Statement becomes eligible for resale by non-affiliates pursuant to Rule
144(b)(1), as determined by the counsel to the Company pursuant to a written
opinion letter to such effect, addressed and acceptable to the Transfer Agent
and the affected Holders (the “Effectiveness Period”).  The Company
shall telephonically request effectiveness of a Registration Statement as of
5:00 p.m. New York City time on a Trading Day.  The Company shall
promptly notify the Holders via facsimile or by e-mail of the effectiveness of a
Registration Statement on the same Trading Day that the Company telephonically
confirms effectiveness with the Commission, which shall be the date requested
for effectiveness of such Registration Statement.  The Company shall,
by 9:30 a.m. New York City time on the Trading Day after the effective date of
such Registration Statement, file a final Prospectus with the Commission as
required by Rule 424.

     

    (c)           If
any SEC Guidance sets forth a limitation on the number of Registrable Securities
permitted to be registered on a particular Registration Statement (and
notwithstanding that the Company used commercially reasonable efforts to
advocate with the Commission for the registration of all or a greater portion of
Registrable Securities), unless otherwise directed in writing by a Holder as to
its Registrable Securities, the number of Registrable Securities to be
registered on such Registration Statement will be reduced by Registrable
Securities represented by the Shares (applied, in the case that some Shares may
be registered, to the Holders on a pro rata basis based on the total number of
unregistered Shares held by such Holders).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.           Registration
Procedures.

     

    In
connection with the Company’s registration obligations hereunder, the Company
shall:

     

    (a)           Not
less than five (5) Trading Days prior to the filing of each Registration
Statement and not less than one (1) Trading Day prior to the filing of any
related Prospectus or any amendment or supplement thereto (including any
document that would be incorporated or deemed to be incorporated therein by
reference), the Company shall (i) furnish to each Holder copies of all such
documents proposed to be filed, which documents (other than those referenced or
deemed to be incorporated by reference) will be subject to the review of such
Holders, and (ii) cause its officers and directors, counsel and independent
certified public accountants to respond to such inquiries as shall be necessary,
in the reasonable opinion of respective counsel to each Holder, to conduct a
reasonable investigation within the meaning of the Securities
Act.  The Company shall not file a Registration Statement or any such
Prospectus or any amendments or supplements thereto to which the Holders of at
least a majority of the Registrable Securities shall reasonably object in good
faith, provided that, the Company is notified of such objection in writing no
later than five (5) Trading Days after the Holders have been so furnished copies
of a Registration Statement or one (1) Trading Day after the Holders have been
so furnished copies of any related Prospectus or amendments or supplements
thereto.  Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex B (a “Selling
Securityholder Notice and Questionnaire”) by the earlier to occur of two (2)
Trading Days prior to the Filing Date or the fourth (4th) Trading Day following
the date on which such Holder receives draft materials in accordance with this
Section 3.

     

    (b)           (i)
Prepare and file with the Commission such amendments, including post-effective
amendments, to a Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep a Registration Statement continuously
effective as to the applicable Registrable Securities for the Effectiveness
Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the
Registrable Securities; (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement (subject to the terms of this
Agreement), and, as so supplemented or amended, to be filed pursuant to Rule
424; (iii) respond as promptly as reasonably possible to any comments received
from the Commission with respect to a Registration Statement or any amendment
thereto and provide as promptly as reasonably possible to the Holders true and
complete copies of all correspondence from and to the Commission relating to a
Registration Statement (provided that, the Company may excise any information
contained therein which would constitute material non-public information as to
any Holder which has not executed a confidentiality agreement with the Company);
and (iv) comply in all material respects with the provisions of the Securities
Act and the Exchange Act with respect to the disposition of all Registrable
Securities covered by a Registration Statement during the applicable period in
accordance (subject to the terms of this Agreement) with the intended methods of
disposition by the Holders thereof set forth in such Registration Statement as
so amended or in such Prospectus as so supplemented.

     

    (c)           If
during the Effectiveness Period, the number of Registrable Securities at any
time exceeds 100% of the number of shares of Common Stock then registered in a
Registration Statement, then the Company shall file as soon as reasonably
practicable, but in any case prior to the applicable Filing Date, an additional
Registration Statement covering the resale by the Holders of not less than the
number of such Registrable Securities.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (d)           Notify
the Holders of Registrable Securities to be sold (which notice shall, pursuant
to clauses (iii) through (vi) hereof, be accompanied by an instruction to
suspend the use of the Prospectus until the requisite changes have been made) as
promptly as reasonably possible (and, in the case of (i)(A) below, not less than
one (1) Trading Day prior to such filing) and (if requested by any such Person)
confirm such notice in writing no later than one (1) Trading Day following the
day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed; (B) when the
Commission notifies the Company whether there will be a “review” of such
Registration Statement and whenever the Commission comments in writing on such
Registration Statement; and (C) with respect to a Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other federal or state governmental authority
for amendments or supplements to a Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission or any other
federal or state governmental authority of any stop order suspending the
effectiveness of a Registration Statement covering any or all of the Registrable
Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
Proceeding for such purpose; (v) of the occurrence of any event or passage of
time that makes the financial statements included in a Registration Statement
ineligible for inclusion therein or any statement made in a Registration
Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that
requires any revisions to a Registration Statement, Prospectus or other
documents so that, in the case of a Registration Statement or the Prospectus, as
the case may be, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading; and (vi) of the occurrence or existence of any pending
corporate development with respect to the Company that the Company believes may
be material and that, in the determination of the Company, makes it not in the
best interest of the Company to allow continued availability of a Registration
Statement or Prospectus, provided that, any and all of such information shall
remain confidential to each Holder until such information otherwise becomes
public, unless disclosure by a Holder is required by law; provided, further,
that notwithstanding each Holder’s agreement to keep such information
confidential, each such Holder makes no acknowledgement that any such
information is material, non-public information.

     

    (e)           Use
its commercially reasonable efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of (i) any order stopping or suspending the effectiveness
of a Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable moment.

     

    (f)           Furnish
to each Holder, without charge, at least one conformed copy of each such
Registration Statement and each amendment thereto, including financial
statements and schedules, all documents incorporated or deemed to be
incorporated therein by reference to the extent requested by such Person, and
all exhibits to the extent requested by such Person (including those previously
furnished or incorporated by reference) promptly after the filing of such
documents with the Commission; provided, that any such item which is available
on the EDGAR system need not be furnished in physical form.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (g)           Subject
to the terms of this Agreement, the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling
Holders in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto, except after
the giving of any notice pursuant to Section 3(d).

     

    (h)           The
Company shall cooperate with any broker-dealer through which a Holder proposes
to resell its Registrable Securities in effecting a filing with the FINRA
Corporate Financing Department pursuant to NASD Rule 2710, as requested by any
such Holder, and the Company shall pay the filing fee required by such filing
within two (2) Business Days of request therefor.

     

    (i)           
Prior to any resale of Registrable Securities by a Holder, use its commercially
reasonable efforts to register or qualify or cooperate with the selling Holders
in connection with the registration or qualification (or exemption from the
Registration or qualification) of such Registrable Securities for the resale by
the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably
necessary to enable the disposition in such jurisdictions of the Registrable
Securities covered by each Registration Statement; provided, that, the Company
shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified, subject the Company to any material tax in
any such jurisdiction where it is not then so subject or file a general consent
to service of process in any such jurisdiction.

     

    (j)          
 If requested by a Holder, cooperate with such Holders to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to be delivered to a transferee pursuant to a Registration Statement,
which certificates shall be free, to the extent permitted by pursuant to the
Debenture Amendment, the Purchase Agreement, the Series C Agreement or the
Series D Agreement, as the case may be, of all restrictive legends, and to
enable such Registrable Securities to be in such denominations and registered in
such names as any such Holder may request.

     

    (k)           Upon
the occurrence of any event contemplated by Section 3(d), as promptly as
reasonably possible under the circumstances taking into account the Company’s
good faith assessment of any adverse consequences to the Company and its
stockholders of the premature disclosure of such event, prepare a supplement or
amendment, including a post-effective amendment, to a Registration Statement or
a supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither a Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.  If the Company notifies the Holders in accordance
with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any
Prospectus until the requisite changes to such Prospectus have been made, then
the Holders shall suspend use of such Prospectus.  The Company will
use its commercially reasonable efforts to ensure that the use of the Prospectus
may be resumed as promptly as is practicable.  The Company shall be
entitled to exercise its right under this Section 3(k) to suspend the
availability of a Registration Statement and Prospectus, subject to the payment
of partial liquidated damages otherwise required pursuant to Section 2(b), for a
period not to exceed ninety (90) calendar days (which need not be consecutive
days) in any 12 month period.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (l)           
Comply with all applicable rules and regulations of the Commission.

     

    (m)          The
Company may require each selling Holder to furnish to the Company a certified
statement as to the number of shares of Common Stock beneficially owned by such
Holder and, if required by the Commission, the natural persons thereof that have
voting and dispositive control over the shares.  During any periods
that the Company is unable to meet its obligations hereunder with respect to the
registration of the Registrable Securities solely because any Holder fails to
furnish such information within three Trading Days of the Company’s request, any
liquidated damages that are accruing at such time as to such Holder only shall
be tolled and any Event that may otherwise occur solely because of such delay
shall be suspended as to such Holder only, until such information is delivered
to the Company.

     

    4.           Registration
Expenses.  All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration
Statement.  The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses of the Company’s counsel and
auditors) (A) with respect to filings made with the Commission, (B) with respect
to filings required to be made with any Trading Market on which the Common Stock
is then listed for trading, (C) in compliance with applicable state securities
or Blue Sky laws reasonably agreed to by the Company in writing (including,
without limitation, fees and disbursements of counsel for the Company in
connection with Blue Sky qualifications or exemptions of the Registrable
Securities) and (D) if not previously paid by the Company, any filing that may
be required to be made by any broker through which a Holder intends to make
sales of Registrable Securities with the FINRA pursuant to NASD Rule 2710, so
long as the broker is receiving no more than a customary brokerage commission in
connection with such sale, (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities), (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement.  In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit and the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.  In no
event shall the Company be responsible for any broker or similar commissions of
any Holder or, except to the extent provided for in the Transaction Documents,
any legal fees or other costs of the Holders.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    5.           Indemnification.

     

    (a)           Indemnification
by the Company.  The Company shall, notwithstanding any termination of
this Agreement, indemnify and hold harmless each Holder, the officers,
directors, members, partners, agents, brokers (including brokers who offer and
sell Registrable Securities as principal as a result of a pledge or any failure
to perform under a margin call of Common Stock), investment advisors and
employees (and any other Persons with a functionally equivalent role of a Person
holding such titles, notwithstanding a lack of such title or any other title) of
each of them, each Person who controls any such Holder (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, members, shareholders, partners, agents and employees (and
any other Persons with a functionally equivalent role of a Person holding such
titles, notwithstanding a lack of such title or any other title) of each such
controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to (1) any untrue or alleged
untrue statement of a material fact contained in a Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading or (2) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or any state securities law, or any rule or
regulation thereunder, in connection with the performance of its obligations
under this Agreement, except to the extent, but only to the extent, that (i)
such untrue statements or omissions are based solely upon information regarding
such Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in a
Registration Statement, such Prospectus or in any amendment or supplement
thereto (it being understood that the Holder has approved Annex A hereto for
this purpose) or (ii) in the case of an occurrence of an event of the type
specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(d).  The Company shall notify
the Holders promptly of the institution, threat or assertion of any Proceeding
arising from or in connection with the transactions contemplated by this
Agreement of which the Company is aware.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (b)           Indemnification
by Holders.  Each Holder shall, severally and not jointly, indemnify
and hold harmless the Company, its directors, officers, agents and employees,
each Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors, officers,
agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent
arising out of or based solely upon: (x) such Holder’s failure to comply with
the prospectus delivery requirements of the Securities Act or (y) any untrue or
alleged untrue statement of a material fact contained in any Registration
Statement, any Prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus or supplement thereto, in
light of the circumstances under which they were made) not misleading (i) to the
extent, but only to the extent, that such untrue statement or omission is
contained in any information so furnished in writing by such Holder to the
Company specifically for inclusion in such Registration Statement or such
Prospectus or (ii) to the extent that such information relates to such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by such Holder expressly for use in a Registration
Statement (it being understood that the Holder has approved Annex A hereto for
this purpose), such Prospectus or in any amendment or supplement thereto or
(iii) in the case of an occurrence of an event of the type specified in Section
3(d)(iii)-(vi), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice
contemplated in Section 6(d).  In no event shall the liability of any
selling Holder hereunder be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.

     

    (c)           Conduct
of Indemnification Proceedings.  If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying
Party shall have the right to assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, that, the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this Agreement, except (and only) to the extent that such failure shall have
prejudiced the Indemnifying Party.

     

    An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
expenses; (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (3) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified Party
and the Indemnifying Party, and counsel to the Indemnified Party shall
reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying
Party (in which case, if such Indemnified Party notifies the Indemnifying Party
in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and the reasonable fees and expenses of no more than one
separate counsel shall be at the expense of the Indemnifying
Party).  The Indemnifying Party shall not be liable for any settlement
of any such Proceeding effected without its written consent, which consent shall
not be unreasonably withheld or delayed.  No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    Subject
to the terms of this Agreement, all reasonable fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent incurred
in connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified
Party, as incurred, within ten (10) Trading Days of written notice thereof to
the Indemnifying Party; provided, that, the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is judicially
determined not to be entitled to indemnification hereunder.

     

    (d)           Contribution.  If
the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
Party or insufficient to hold an Indemnified Party harmless for any Losses, then
each Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations.  The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by,
such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission.  The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations
set forth in this Agreement, any reasonable attorneys’ or other fees or expenses
incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms.

     

    The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding
paragraph.  Notwithstanding the provisions of this Section 5(d), no
Holder shall be required to contribute, in the aggregate, any amount in excess
of the amount by which the net proceeds actually received by such Holder from
the sale of the Registrable Securities subject to the Proceeding exceeds the
amount of any damages that such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission.

     

    The
indemnity and contribution agreements contained in this Section are in addition
to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

     

    6.           Miscellaneous.

     

    (a)           No
Piggyback on Registrations; Prohibition on Filing Other Registration
Statements.  Neither the Company nor any of its securityholders (other
than the Holders in such capacity pursuant hereto) may include securities of the
Company in any Registration Statements other than the Registrable
Securities.  The Company shall not file any other registration
statements until all Registrable Securities are registered pursuant to a
Registration Statement that is declared effective by the Commission, provided
that this Section 6(a) shall not prohibit the Company from filing amendments to
registration statements filed prior to the date of this
Agreement.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (b)           Compliance.  Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to a Registration Statement.

     

    (c)           Discontinued
Disposition.  By its acquisition of Registrable Securities, each
Holder agrees that, upon receipt of a notice from the Company of the occurrence
of any event of the kind described in Section 3(d)(iii) through (vi), such
Holder will forthwith discontinue disposition of such Registrable Securities
under a Registration Statement until it is advised in writing (the “Advice”) by
the Company that the use of the applicable Prospectus (as it may have been
supplemented or amended) may be resumed.  The Company will use its
commercially reasonable efforts to ensure that the use of the Prospectus may be
resumed as promptly as is practicable.

     

    (d)           Piggy-Back
Registrations.  If, at any time during the Effectiveness Period, there
is not an effective Registration Statement covering all of the Registrable
Securities and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account
or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with the Company’s stock option or
other employee benefit plans, then the Company shall deliver to each Holder a
written notice of such determination and, if within ten (10) Business Days after
the date of the delivery of such notice, any such Holder shall so request in
writing, the Company shall include in such registration statement all or any
part of such Registrable Securities such Holder requests to be registered;
provided, however, that that if a managing underwriter advises the Company that
the number of shares of Common Stock registered on such Registration Statement
must be reduced for marketing purposes, the number of Shares registered pursuant
to this Section 6(d) shall be reduced by up to 100% before any other shares of
Common Stock are reduced; provided further that the Company shall not be
required to register any Registrable Securities pursuant to this Section 6(d)
that are eligible for resale pursuant to Rule 144(b)(1) promulgated by the
Commission pursuant to the Securities Act or that are the subject of a then
effective Registration Statement.

     

    (e)           Amendments
and Waivers.  The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the same shall be in writing and signed by the Company and the Holders of
a majority of the then outstanding Registrable Securities (including, for this
purpose any Registrable Securities issuable upon exercise or conversion of any
Security).  If a Registration Statement does not register all of the
Registrable Securities pursuant to a waiver or amendment done in compliance with
the previous sentence, then the number of Registrable Securities to be
registered for each Holder shall be reduced pro rata among all Holders and each
Holder shall have the right to designate which of its Registrable Securities
shall be omitted from such Registration Statement.  Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of a Holder or some
Holders and that does not directly or indirectly affect the rights of other
Holders may be given by such Holder or Holders of all of the Registrable
Securities to which such waiver or consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the first sentence of this Section
6(e).

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (f)           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be delivered as set forth in the Purchase
Agreement.

     

    (g)           Successors
and Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and
shall inure to the benefit of each Holder.  The Company may not assign
(except by merger) its rights or obligations hereunder without the prior written
consent of all of the Holders of the then outstanding Registrable
Securities.  Each Holder may assign any or all of its rights under
this Agreement to any Person to whom such Holder assigns or transfers any
Consent Shares, Preferred Shares, Exchanged Shares or Converted Shares, as the
case may be, provided such transferee agrees in writing to be bound, with
respect to the transferred Consent Shares, Preferred Shares, Exchanged Shares or
Converted Shares, by the provisions of this Agreement and any other documents or
agreement executed in connection with the transactions contemplated by the
Purchase Agreement in the case of Consent Shares, the Debenture Amendment in the
case of Converted Shares and Preferred Shares, the Series C Agreement and the
Series D Agreement in the case of Exchanged Shares.

     

    (h)           No
Inconsistent Agreements.  Neither the Company nor any of its
Subsidiaries has entered, as of the date hereof, nor shall the Company or any of
its Subsidiaries, on or after the date of this Agreement, enter into any
agreement with respect to its securities, that would have the effect of
impairing the rights granted to the Holders in this Agreement or otherwise
conflicts with the provisions hereof.

     

    (i)           
Execution and Counterparts.  This Agreement may be executed in two or
more counterparts, all of which when taken together shall be considered one and
the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart.  In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

     

    (j)           
Governing Law.  This Agreement shall be governed by, construed under,
and enforced in accordance with the laws of the State of Texas, without regard
to its conflict of laws rules.

     

    (k)           Cumulative
Remedies.  The remedies provided herein are cumulative and not
exclusive of any other remedies provided by law.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (l)           
Severability.  If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction.  It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or
unenforceable.

     

    (m)          Headings.  The
headings in this Agreement are for convenience only, do not constitute a part of
the Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    (n)           Independent
Nature of Holders’ Obligations and Rights.  The obligations of each
Holder hereunder are several and not joint with the obligations of any other
Holder hereunder, and no Holder shall be responsible in any way for the
performance of the obligations of any other Holder hereunder.  Nothing
contained herein or in any other agreement or document delivered at any closing,
and no action taken by any Holder pursuant hereto or thereto, shall be deemed to
constitute the Holders as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Holders are in any way
acting in concert with respect to such obligations or the transactions
contemplated by this Agreement.  Each Holder shall be entitled to
protect and enforce its rights, including without limitation the rights arising
out of this Agreement, and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such purpose.

     

    [Signature
Page Follows.]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    EPIC
ENERGY RESOURCES, INC.

    SIGNATURE
PAGE

     

    IN
WITNESS WHEREOF, the undersigned has executed this signature page to the
Registration Rights Agreement.

     

    
      
        
          
            
              
                
                  	 
      	
                          Signature:

                        	 
      
	 
      	 
      	 
      
	 
      	
                          Print Name: 

                        	 
      

                

              

            

          

        

      

    

    

    NOTE:  PLEASE
DO NOT DATE THIS AGREEMENT AS IT WILL BE DATED IF AND WHEN ACCEPTED BY THE
COMPANY.

    

    IN
WITNESS WHEREOF, the Company has agreed to and accepted this Registration Rights
Agreement subject to the terms and conditions hereof as of the day and year set
forth below.

     

    Date:   ___________________,
2010:

     

    
      
        
          	 
      	
                  EPIC
      ENERGY RESOURCES, INC.

                
	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	
                  Name:

                	 
      
	 
      	
                  Title:

                

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A

     

    PLAN OF
DISTRIBUTION

     

    Each
Selling Stockholder (the “Selling Stockholders”) of the common stock and any of
their pledgees, assignees and successors-in-interest may, from time to time,
sell any or all of their shares of common stock on the OTC Bulletin Board or any
other stock exchange, market or trading facility on which the shares are traded
or in private transactions.  These sales may be at fixed or negotiated
prices.  A Selling Stockholder may use any one or more of the
following methods when selling shares:

     

    
      	
               
      

            	
              ·

            	
              ordinary
      brokerage transactions and transactions in which the broker-dealer
      solicits purchasers;

            

    

     

    
      	
               
      

            	
              ·

            	
              block
      trades in which the broker-dealer will attempt to sell the shares as agent
      but may position and resell a portion of the block as principal to
      facilitate the transaction;

            

    

     

    
      	
               
      

            	
              ·

            	
              purchases
      by a broker-dealer as principal and resale by the broker-dealer for its
      account;

            

    

     

    
      	
               
      

            	
              ·

            	
              an
      exchange distribution in accordance with the rules of the applicable
      exchange;

            

    

     

    
      	
               
      

            	
              ·

            	
              privately
      negotiated transactions;

            

    

     

    
      	
               
      

            	
              ·

            	
              settlement
      of short sales entered into after the effective date of the registration
      statement of which this prospectus is a
part;

            

    

     

    
      	
               
      

            	
              ·

            	
              broker-dealers
      may agree with the Selling Stockholders to sell a specified number of such
      shares at a stipulated price per
share;

            

    

     

    
      	
               
      

            	
              ·

            	
              through
      the writing or settlement of options or other hedging transactions,
      whether through an options exchange or
  otherwise;

            

    

     

    
      	
               
      

            	
              ·

            	
              a
      combination of any such methods of sale;
or

            

    

     

    
      	
               
      

            	
              ·

            	
              any
      other method permitted pursuant to applicable
  law.

            

    

     

    The
Selling Stockholders may also sell shares under Rule 144 under the Securities
Act of 1933, as amended (the “Securities Act”), if available, rather than under
this prospectus.

     

    Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to
participate in sales.  Broker-dealers may receive commissions or
discounts from the Selling Stockholders (or, if any broker-dealer acts as agent
for the purchaser of shares, from the purchaser) in amounts to be negotiated,
but, except as set forth in a supplement to this Prospectus, in the case of an
agency transaction not in excess of a customary brokerage commission in
compliance with FINRA NASD Rule 2440; and in the case of a principal transaction
a markup or markdown in compliance with NASD IM-2440.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    In
connection with the sale of the common stock or interests therein, the Selling
Stockholders may enter into hedging transactions with broker-dealers or other
financial institutions, which may in turn engage in short sales of the common
stock in the course of hedging the positions they assume.  The Selling
Stockholders may also sell shares of the common stock short and deliver these
securities to close out their short positions, or loan or pledge the common
stock to broker-dealers that in turn may sell these securities.  The
Selling Stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such
transaction).

     

    The
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales.  In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.  Each Selling
Stockholder has informed the Company that it does not have any written or oral
agreement or understanding, directly or indirectly, with any person to
distribute the Common Stock.  In no event shall any broker-dealer
receive fees, commissions and markups which, in the aggregate, would exceed
eight percent (8%).

     

    The
Company is required to pay certain fees and expenses incurred by the Company
incident to the registration of the shares.  The Company has agreed to
indemnify the Selling Stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

     

    Because
Selling Stockholders may be deemed to be “underwriters” within the meaning of
the Securities Act, they will be subject to the prospectus delivery requirements
of the Securities Act including Rule 172 thereunder.  In addition, any
securities covered by this prospectus which qualify for sale pursuant to Rule
144 under the Securities Act may be sold under Rule 144 rather than under this
prospectus.  There is no underwriter or coordinating broker acting in
connection with the proposed sale of the resale shares by the Selling
Stockholders.

     

    We agreed
to keep this prospectus effective until the earlier of until the earliest of (i)
one year after from the date of this prospectus, (ii) the date on which all of
the shares registered pursuant to this prospectus have been sold or (iii) the
date on which the shares may be resold by the Selling Stockholders without
registration and, with regard to non-affiliates, without regard to any volume
limitation by reason of Rule 144(b)(1) under the Securities Act or any other
rule of similar.  The resale shares will be sold only through
registered or licensed brokers or dealers if required under applicable state
securities laws.  In addition, in certain states, the resale shares
may not be sold unless they have been registered or qualified for sale in the
applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Under
applicable rules and regulations under the Exchange Act, any person engaged in
the distribution of the resale shares may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted
period, as defined in Regulation M, prior to the commencement of the
distribution.  In addition, the Selling Stockholders will be subject
to applicable provisions of the Exchange Act and the rules and regulations
thereunder, including Regulation M, which may limit the timing of purchases and
sales of shares of the common stock by the Selling Stockholders or any other
person.  We will make copies of this prospectus available to the
Selling Stockholders and have informed them of the need to deliver a copy of
this prospectus to each purchaser at or prior to the time of the sale (including
by compliance with Rule 172 under the Securities Act).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    ANNEX
B

     

    EPIC
ENERGY RESOURCES, INC.

     

    Selling
Securityholder Notice and Questionnaire

     

    The
undersigned beneficial owner of common stock (the “Registrable Securities”) of
Epic Energy Resources, Inc., a Colorado corporation (the “Company”), understands
that the Company has filed or intends to file with the Securities and Exchange
Commission (the “Commission”) a registration statement (the “Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the “Securities Act”), of the Registrable Securities, in
accordance with the terms of the Registration Rights Agreement (the
“Registration Rights Agreement”) to which this document is annexed.  A
copy of the Registration Rights Agreement is available from the Company upon
request at the address set forth below.  All capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement.

     

    Certain
legal consequences arise from being named as a selling securityholder in the
Registration Statement and the related prospectus.   Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult
their own securities law counsel regarding the consequences of being named or
not being named as a selling securityholder in the Registration Statement and
the related prospectus.

     

    NOTICE

     

    The
undersigned beneficial owner (the “Selling Securityholder”) of Registrable
Securities hereby elects to include the Registrable Securities owned by it in
the Registration Statement.

     

    The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    1.           Name.

     

    (a)           Full
Legal Name of Selling Securityholder

     

    __________________________________

     

    (b)           Full
Legal Name of Registered Holder (if not the same as (a) above) through which
Registrable Securities are held:

     

    ___________________________________

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    (c)          Full
Legal Name of Natural Control Person (which means a natural person who directly
or indirectly alone or with others has power to vote or dispose of the
securities covered by this Questionnaire):

     

    ____________________________________

     

    2.           Address
for Notices to Selling Securityholder:

     

    ____________________________________

     

    ____________________________________

     

    ____________________________________

     

    Telephone:_________________________________

     

    Fax:______________________________________

     

    Contact
Person:_____________________________

     

    3.           Broker-Dealer
Status:

     

    (a)          Are
you a broker-dealer?

     

    Yes  ̈ No
 ̈

     

    (b)          If
“yes” to Section 3(a), did you receive your Registrable Securities as
compensation for investment banking services to the Company?

     

    Yes  ̈ No
 ̈

     

    Note: If
“no” to Section 3(b), the Commission’s staff has indicated that you should be
identified as an underwriter in the Registration Statement.

     

    (c)          Are
you an affiliate of a broker-dealer?

     

    Yes  ̈ No
 ̈

     

    (d)          If
you are an affiliate of a broker-dealer, do you certify that you purchased the
Registrable Securities in the ordinary course of business, and at the time of
the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the
Registrable Securities?

     

    Yes  ̈ No
 ̈

     

    Note: If
“no” to Section 3(d), the Commission’s staff has indicated that you should be
identified as an underwriter in the Registration Statement.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    4.           Beneficial
Ownership of Securities of the Company Owned by the Selling
Securityholder.

     

    Except as
set forth below in this Item 4, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the securities
issuable pursuant to the Purchase Agreement.

     

    (a)          Type
and Amount of other securities beneficially owned by the Selling
Securityholder:

     

    ____________________________________

     

    ____________________________________

     

    ____________________________________

     

    5.           Relationships
with the Company:

     

    Except as
set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any
other material relationship with the Company (or its predecessors or affiliates)
during the past three years.

     

    State any
exceptions here:

     

      
        

      

    

     

      
        

      

    

    
       

    

    The
undersigned agrees to promptly notify the Company of any inaccuracies or changes
in the information provided herein that may occur subsequent to the date hereof
at any time while the Registration Statement remains effective.

     

    By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 5 and the inclusion of such
information in the Registration Statement and the related prospectus and any
amendments or supplements thereto.  The undersigned understands that
such information will be relied upon by the Company in connection with the
preparation or amendment of the Registration Statement and the related
prospectus.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
and Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

     

    
      
        
          
            
              
                	
                        Date:

                      	
                        Beneficial
      Owner:

                      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	
                        Name: 

                      	 
      
	 
      	
                        Title:

                      	 
      

              

            

          

        

      

    

     

    PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO (281)
419-1114, AND

     

    RETURN
THE ORIGINAL BY OVERNIGHT MAIL, TO:

     

    Epic
Energy Resources, Inc.

    Attention:
Mike Kinney, CFO

    1450 Lake
Robbins Drive, Suite 160

    The
Woodlands, Texas 77380

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