Document:

LOAN NUMBER	LOAN NAME	ACCT. NUMBER	AGREEMENT DATE	INITIALS
	179710	BLACK ROCK CAPITAL INC	 	06/29/11	DRE
	 	 	 	 	 
	NOTE AMOUNT	INDEX (w/Margin)	RATE	MATURITY DATE	LOAN PURPOSE
	$2,681,201.37	Not Applicable	6.009%	06/29/14	Commercial
	 	 	Creditor Use Only	 	 

 

COMMERCIAL LOAN AGREEMENT

Single Advance Loan 

 

  

DATE AND PARTIES. The date of this
Commercial Loan Agreement (Agreement) is June 29, 2011. The parties and their addresses are as follows:

 

LENDER:

FIRST STATE BANK

101 S Center

P O Box 320

Lonoke, AR 72086

 

BORROWER:

BLACK ROCK CAPITAL INC

an Arkansas Corporation

16623 CANTRELL RD, SUITE 1B

LITTLE ROCK, AR 72223

 

ALAN W BARKSDALE

141 FALATA CIRCLE

LITTLE ROCK, AR 72223

 

ERNEST A. BARTLETT

24224 KANIS ROAD

LITTLE ROCK, AR 72223

 

1. DEFINITIONS. For the purposes of
this Agreement, the following terms have the following meanings.

 

A. Accounting Terms.
In this Agreement, any accounting terms that are not specifically defined will have their customary meanings under generally accepted
accounting principles.

 

B. Insiders. Insiders
include those defined as insiders by the United States Bankruptcy Code, as amended; or to the extent left undefined, include without
limitation any officer, employee, stockholder or member, director, partner, or any immediate family member of any of the foregoing,
or any person or entity which, directly or indirectly, controls, is controlled by or is under common control with me.

 

C. Loan. The Loan refers
to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for
this transaction.

 

D. Loan Documents. Loan
Documents refer to all the documents executed as a part of or in connection with the Loan.

 

E. Pronouns. The pronouns
"I", "me" and "my" refer to every Borrower signing this Agreement, individually or together. "You"
and "your" refers to the Loan's lender.

 

F. Property. Property
is any property, real, personal or intangible, that secures my performance of the obligations of this Loan.

 

2. SINGLE ADVANCE. In accordance
with the terms of this Agreement and other Loan Documents, you will provide me with a term note in the amount of $2,681,201.37
(Principal). I will receive the funds from this Loan in one advance. No additional advances are contemplated, except those made
to protect and preserve your interests as provided in this Agreement or other Loan Documents.

 

3. DEMAND. I agree to fully repay the
Loan on demand, but if no demand is made, I will repay the Loan by June 29, 2014.

 

4. WARRANTIES AND REPRESENTATIONS.
I make to you the following warranties and representations which will continue as long as this Loan is in effect, except when
this Agreement provides otherwise. 

 

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A. Power. I am duly organized,
and validly existing and in good standing in all jurisdictions in which I operate. I have the power and authority to enter into
this transaction and to carry on my business or activity as it is now being conducted and, as applicable, am qualified to do so
in each jurisdiction in which I operate.

 

B. Authority. The execution,
delivery and performance of this Loan and the obligation evidenced by the Note are within my powers, have been duly authorized,
have received all necessary governmental approval, will not violate any provision of law, or order of court or governmental agency,
and will not violate any agreement to which I am a party or to which I am or any of my property is subject.

 

C. Name and Place of Business.
Other than previously disclosed in writing to you I have not changed my name or principal place of business within the last 10
years and have not used any other trade or fictitious name. Without your prior written consent, I do not and will not use any other
name and will preserve my existing name, trade names and franchises.

 

D. Hazardous Substances.
Except as I previously disclosed in writing and you acknowledge in writing, no Hazardous Substance, underground tanks, private
dumps or open wells are currently located at, on, in, under or about the Property.

 

E. Use of Property. After
diligent inquiry, I do not know or have reason to know that any Hazardous Substance has been discharged, leached or disposed of,
in violation of any Environmental Law, from the property onto, over or into any other property, or from any other property onto,
over or into the property.

 

F. Environmental Laws.
I have no knowledge or reason to believe that there is any pending or threatened investigation, claim, judgment or order, violation,
lien, or other notice under any Environmental Law that concerns me or the property. The property and any activities on the property
are in full compliance with all Environmental Law.

 

G. Loan Purpose. The purpose
of this Loan is Purchase the BAMCO Gas LLC loan from First State Bank.

 

H. No Other Liens. I
own or lease all property that I need to conduct my business and activities. I have good and marketable title to all property that
I own or lease. All of my Property is free and clear of all liens, security interests, encumbrances and other adverse claims and
interests, except those to you or those you consent to in writing.

 

I. Compliance With Laws.
I am not violating any laws, regulations, rules, orders, judgments or decrees applicable to me or my property, except for those
which I am challenging in good faith through proper proceedings after providing adequate reserves to fully pay the claim and its
challenge should I lose.

 

5. FINANCIAL STATEMENTS. I will
prepare and maintain my financial records using consistently applied generally accepted accounting principles then in effect. I
will provide you with financial information in a form that you accept and under the following terms.

 

A. Certification. I represent
and warrant that any financial statements that I provide you fairly represents my financial condition for the stated periods, is
currant, complete, true and accurate in all material respects, includes all of my direct or contingent liabilities and there has
been no material adverse change in my financial condition, operations or business since the date the financial information was
prepared.

 

B. Frequency. In addition
to the financial statements provided to you prior to closing, I will provide you with current financial statements on an annual
basis, or as otherwise requested by you, until I have performed all of my obligations under the Loan and you terminate the Loan
in writing.

 

C. Requested Information.
I will provide you with any other information about my operations, financial affairs and condition within 30 days after your request.

 

6. COVENANTS. Until the Loan and
all related debts, liabilities and obligations are paid and discharged, I will comply with the following terms, unless you waive
compliance in writing.

 

A. Participation. I consent
to you participating or syndicating the Loan and sharing any information that you decide is necessary about me and the Loan with
the other participants or syndicators.

 

B. Inspection. Following
your written request, I will immediately pay for all one-time and recurring out-of-pocket costs that are related to the inspection
of my records, business or Property that secures the Loan. Upon reasonable notice, I will permit you or your agents to enter any
of my premises and any location where my Property is located during regular business hours to do the following.

 

(1) You may inspect,
audit, check, review and obtain copies from my books, records, journals, orders, receipts, and any correspondence and other business
related data.

 

(2) You may discuss
my affairs, finances and business with any one who provides you with evidence that they are a creditor of mine, the sufficiency
of which will be subject to your sole discretion.

 

(3) You may inspect
my Property, audit for the use and disposition of the Property's proceeds and proceeds of proceeds; or do whatever you decide
is necessary to preserve and protect the Property and your interest in the Property.

 

After prior notice to me, you
may discuss my financial condition and business operations with my independent accountants, if any, or my chief financial officer
and I may be present during these discussions. As long as the Loan is outstanding, I will direct all of my accountants and auditors
to permit you to examine my records in their possession and to make copies of these records. You will use your best efforts to
maintain the confidentiality of the information you or your agents obtain, except you may provide your regulator, if any, with
required information about my financial condition, operation and business or that of my parent, subsidiaries or affiliates.

 

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C. Business Requirements.
I will preserve and maintain my present existence and good standing in the jurisdiction where I am organized and all of my rights,
privileges and franchises. I will do all that is needed or required to continue my business or activities as presently conducted,
by obtaining licenses, permits and bonds everywhere I engage in business or activities or own, lease or locate my property. I will
obtain your prior written consent before I cease my business or before I engage in any new line of business that is materially
different from my present business.

 

D. Compliance with Laws.
I will not violate any laws, regulations, rules, orders, judgments or decrees applicable to me or my Property, except for those
which I challenge in good faith through proper proceedings after providing adequate reserves to fully pay the claim and its appeal
should I lose. Laws include without limitation the Federal Fair Labor Standards Act requirements for producing goods, the federal
Employee Retirement Income Security Act of 1974's requirements for the establishment, funding and management of qualified deferred
compensation plans for employees, health and safety laws, environmental laws, tax laws, licensing and permit laws. On your request,
I will provide you with written evidence that I have fully and timely paid my taxes, assessments and other governmental charges
levied or imposed on me, my income or profits and my property. Taxes include without limitation sales taxes, use taxes, personal
property taxes, documentary stamp taxes, recordation taxes, franchise taxes, income taxes, withholding taxes, FICA taxes and unemployment
taxes. I will adequately provide for the payment of these taxes, assessments and other charges that have accrued but are not yet
due and payable.

 

E. New Organizations.
I will obtain your written consent before organizing, merging into, or consolidating with an entity; acquiring all or substantially
all the assets of another; materially changing the legal structure, management, ownership or financial condition; or effecting
or entering into a domestication, conversion or interest exchange.

 

F. Other Liabilities.
I will not incur, assume or permit any debt evidenced by notes, bonds or similar obligations, except: debt in existence on the
date of this Agreement and fully disclosed to you; debt subordinated in payment to you on conditions and terms acceptable to you;
accounts payable incurred in the ordinary course of my business and paid under customary trade terms or contested in good faith
with reserves satisfactory to you.

 

G. Notice to You. I will
promptly notify you of any material change in my financial condition, of the occurrence of a default under the terms of this Agreement
or any other Loan Document, or a default by me under any agreement between me and any third party which materially and adversely
affects my property, operations, financial condition or business.

 

H. Dispose of No Assets.
Without your prior written consent or as the Loan Documents permit, I will not sell, lease, assign, transfer, dispose of or otherwise
distribute all or substantially all of my assets to any person other than in the ordinary course of business for the assets' depreciated
book value or more.

 

I. Insurance. I will
obtain and maintain insurance with insurers, an amounts and coverages that are acceptable to you and customary with industry practice.
This may include without limitation insurance policies for public liability, fire, hazard and extended risk, workers compensation,
and, at your request, business interruption and/or rent loss insurance.
At your request, I will deliver to you certified copes of all of these insurance policies, binders or certificates.
I will obtain and maintain a mortgagee clause (or lender loss payable clause) endorsement - naming you as the loss payee. If you
require, I will also obtain an "additional insured" endorsement - naming you as an additional insured. I will immediately
notify you of cancellation or termination of insurance. I will require all insurance policies to provide you with at least 10
days prior written notice to you of cancellation or modification. I consent to you using or disclosing information relative to
any contract of insurance required by the Loan for the purpose of replacing this insurance. I also authorize my insurer and you
to exchange all relevant information related to any contract of insurance required by any document executed as part of this Loan.

 

J. Property Maintenance.
I will keep all tangible and intangible property that I consider necessary or useful in my business in good working condition by
making all needed repairs, replacements and improvements and by making all rental, lease or other payments due on this property.

 

K. Property Loss. I
will immediately notify you, and the insurance company when appropriate, of any material casualty, loss or depreciation to the
Property or to my other property that affects my business.

 

L. Deposit Accounts. I will
maintain substantially all of my demand deposit/operating accounts with you.

 

M. Additional Taxes. I
will pay all filing and recording costs and fees, including any recordation, documentary or transfer taxes or stamps, that are
required to be paid with respect to this Loan and any Loan Documents.

 

N. Additional Covenants.
BANK AND BORROWER AGREE THAT BANK WILL LOCK BOX ALL THE FUNDS FROM NET PRODUCTION DUE BLACK ROCK CAPITAL, INC. FUNDS RECEIVED ABOVE
THE MINIMUM PAYMENTS DUE AS STATED IN THE PROMISSORY NOTE DATED JUNE 29, 2011 WILL BE PLACED IN AN INTEREST BEARING ACCOUNT WITH
FIRST STATE BANK. AS GAS PRICES INCREASE OR DECREASE, THE BANK WILL MAKE THE CHANGES TO THE PAYMENT STREAM TO MAINTAIN THE MINIMUM
PAYMENTS.

 

7. DEFAULT. I understand that you
may demand payment anytime at your discretion. For example, you may demand payment in full if any of the following events (known
separately and collectively as an Event of Default) occur:

 

A. Payments. I fail to make
a payment in full when due.

 

B. Insolvency or Bankruptcy.
The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law,
the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the
commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition
or debtor relief law by or against me or any co-signer, endorser, surety or guarantor of this Agreement or any other obligations
I have with you.

 

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C. Death or Incompetency.
I die or am declared legally incompetent.

 

D. Business Termination.
I merge, dissolve, reorganize, end my business or existence, or a partner or majority owner dies or is declared legally incompetent.

 

E. Failure to Perform. I
fail to perform any condition or to keep any promise or covenant of this Agreement.

 

F. Other Documents. A default
occurs under the terms of any other Loan Document.

 

G. Other Agreements. I am
in default on any other debt or agreement I have with you.

 

H. Misrepresentation.
I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a material
fact at the time it is made or provided.

 

I. Judgment. I fail to satisfy
or appeal any judgment against me.

 

J. Forfeiture. The Property
is used in a manner or for a purpose that threatens confiscation by a legal authority.

 

K. Name Change. I change
my name or assume an additional name without notifying you before making such a change.

 

L. Property Transfer. I
transfer all or a substantial part of my money or property.

 

M. Property Value. You determine
in good faith that the value of the Property has declined or is impaired.

 

N. Material Change.
Without first notifying you, there is a material change in my business, including ownership, management, and financial conditions.

 

O. Insecurity. You determine
in good faith that a material adverse change has occurred in Borrower's financial condition from the conditions set forth in Borrower's
most recent financial statement before the date of this Agreement or that the prospect for payment or performance of the Loan is
impaired for any reason.

 

8. REMEDIES. After I default, you may
at your option do any one or more of the following.

 

A. Acceleration. You
may make all or any part of the amount owing by the terms of the Loan immediately due. If I am a debtor in a bankruptcy petition
or in an application filed under section 5(a)(3) of the Securities Investor Protection Act, the Loan is automatically accelerated
and immediately due and payable without notice or demand upon filing of the petition or application.

 

B. Sources. You may use
any and all remedies you have under state or federal law or in any Loan Document.

 

C. Insurance Benefits.
You may make a claim for any and all insurance benefits or refunds that may be available on my default.

 

D. Payments Made On My Behalf.
Amounts, advanced on my behalf will be immediately due and may be added to the balance owing under the terms of the Loan, and accrue
interest at the highest post-maturity interest rate.

 

E. Attachment. You may
attach or garnish my wages or earnings.

 

F. Set-Off. You may
use the right of set-off. This means you may set-off any amount due and payable under the terms of the Loan against any right I
have to receive money from you.

 

My right to receive money from
you includes any deposit or share account balance I have with you; any money owed to me on an item presented to you or in your
possession for collection or exchange; and any repurchase agreement or other non-deposit obligation. "Any amount due and payable
under the terms of the Loan" means the total amount to which you are entitled to demand payment under the terms of the Loan
at the time you set-off.

 

Subject to any other written
contract, if my right to receive money from you is also owned by someone who has not agreed to pay the Loan, your right of set-off
will apply to my interest in the obligation and to any other amounts I could withdraw on my sole request or endorsement.

 

Your right of set-off does
not apply to an account or other obligation where my rights arise only in a representative capacity. It also does not apply to
any Individual Retirement Account or other tax-deferred retirement account.

 

You will not be liable for
the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. I agree to hold you harmless
from any such claims arising as a result of your exercise of your right of set-off.

 

G. Waiver. Except as
otherwise required by law, by choosing any one or more of these remedies you do not give up your right to use any other remedy.
You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to
later consider the event a default and to use any remedies if the default continues or occurs again.

 

9. COLLECTION EXPENSES AND ATTORNEYS'
FEES. On or after the occurrence of an Event of Default, to the extent permitted by law, I agree to pay all expenses of collection,
enforcement or protection of your rights and remedies under this Agreement or any other Loan Document. Expenses include, but are
not limited to, reasonable attorneys' fees (as determined under Ark. Code Ann. §16-22-308), court costs, and other legal expenses.
If not paid immediately, these expenses will bear interest from the date of the payment until paid in full at the same interest
rate in effect as provided in the terms of this Loan. All fees and expenses will be secured by the Property I have granted to you,
if any. In addition, to the extent permitted by the United States Bankruptcy Code, I agree to pay the reasonable attorneys' fees
incurred by you to protect your rights and interests in connection with any bankruptcy proceedings initiated by or against me.

 

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	Arkansas Commercial Loan Agreement	 	Initials___
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    Bankers SystemsTM	Page 4

 

    	 

    	 

    

 

10. APPLICABLE LAW. This Agreement
is governed by the laws of Arkansas, the United States of America, and to the extent required, by the laws of the jurisdiction
where the Property is located, except to the extent such state laws are preempted by federal law.

 

11.JOINT AND INDIVIDUAL LIABILITY
AND SUCCESSORS. My obligation to pay the Loan is independent of the obligation of any other person who has also agreed to pay
it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the Loan. Extending
the Loan or new obligations under the Loan, will not affect my duty under the Loan and I will still be obligated to pay the Loan.
You may assign all or part of your rights or duties under this Agreement or the Loan Documents without my consent. If you assign
this Agreement, all of my covenants, agreements, representations and warranties contained in this Agreement or the Loan Documents
will benefit your successors and assigns. I may not assign this Agreement or any of my rights under it without your prior written
consent. The duties of the Loan will bind my successors and assigns.

 

12. AMENDMENT, INTEGRATION AND SEVERABILITY.
This Agreement may not be amended or modified by oral agreement. No amendment or modification of this Agreement is effective unless
made in writing and executed by you and me. This Agreement and the other Loan Documents are the complete and final expression of
the understanding between you and me. If any provision of this Agreement is unenforceable, then the unenforceable provision will
be severed and the remaining provisions will still be enforceable.

 

13. INTERPRETATION. Whenever used,
the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not
to be used to interpret or define the terms of this Agreement.

 

14. NOTICE, FINANCIAL REPORTS AND ADDITIONAL
DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to
the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to
one Borrower will be deemed to be notice to all Borrowers. I will inform you in writing of any change in my name, address or other
application information. I will provide you any financial statement or information you request. All financial statements and information
I give you will be correct and complete. I agree to sign, deliver, and file any additional documents or certifications that you
may consider necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any
Property. Time is of the essence.

 

15. SIGNATURES. By signing, I agree
to the terms contained in this Agreement. I also acknowledge receipt of a copy of this Agreement. 

 

	BORROWER:	 
	 	 	 	 	 
	 	BLACK ROCK CAPITAL INC	 
	 	 	 	 	 
	 	 	By	 	 
	 	 	ALAN W. BARKSDALE, PRESIDENT	 
	 	 	 	 	 
	 	 	 
	 	ALAN W BARKSDALE	 
	 	Individually	 
	 	 	 
	 	 	 
	 	ERNEST A. BARTLETT	 
	 	Individually	 
	 	 	 	 	 
	LENDER:	 	 
	 	 	 
	 	First State Bank	 
	 	 	 	 	 
	 	 	By	 	 
	 	 	DAVID ESTES, PRESIDENT/CEO	 

 

	BLACK ROCK CAPITAL INC	 	 
	Arkansas Commercial Loan Agreement	 	Initials___
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    Bankers SystemsTM	Page 5LOAN NUMBER	LOAN NAME	ACCT. NUMBER	NOTE DATE	INITIALS
	179710	BLACK ROCK 

CAPITAL, INC.	 	06/29/11	DRE
	 	 	 	 	 
	NOTE AMOUNT	INDEX (w/Margin)	RATE	MATURITY DATE	LOAN PURPOSE
	$2,681,201.37	Not Applicable	6.009%	06/29/14	Commercial
	 	 	Creditor Use Only	 	 

 

PROMISSORY NOTE

(Commercial - Single
Advance) 

 

 

DATE AND PARTIES. The date of
this Promissory Note (Note) is June 29, 2011. The parties and their addresses are:

 

LENDER:

FIRST STATE BANK

101 S Center

P O Box 320

Lonoke, AR 72086

Telephone: (501) 676-3106

 

BORROWER:

BLACK ROCK CAPITAL, INC.

an Arkansas Corporation

16623 CANTRELL RD, SUITE 1B

LITTLE ROCK, AR 72223

 

ALAN W BARKSDALE

141 FALATA CIRCLE

LITTLE ROCK, AR 72223

 

ERNEST A. BARTLETT

24224 KANIS ROAD

LITTLE ROCK, AR 72223

 

1. DEFINITIONS. As used in this Note,
the terms have the following meanings:

 

A. Pronouns. The pronouns
"I," "me," and "my" refer to each Borrower signing this Note, individually and together. "You"
and "Your" refer to the Lender.

 

B. Note. Note refers to
this document and and any extensions, renewals, modifications and substitutions of this Note.

 

C. Loan. Loan refers
to this transaction generally including obligations and duties arising from the terms of all documents prepared or submitted for
this transaction such as applications, security agreements, disclosures or notes, and this Note.

 

D. Loan Documents. Loan
Documents refer to all the documents executed as a part of or in connection with the Loan.

 

E. Property. Property
is any property, real, personal or intangible, that secures my performance of the obligations of this Loan.

 

F. Percent. Rates and rate
change limitations are expressed as annualized percentages.

 

2. PROMISE TO PAY. For value received,
I promise to pay you or your order, at your address, or at such other location as you may designate, the principal sum of $2,681,201.37
(Principal) plus interest from June 29, 2011 on the unpaid Principal balance until this Note matures or this obligation is
accelerated.

 

3. INTEREST. Interest will accrue
on the unpaid Principal balance of this Note at the rate of 6.009 percent (Interest Rate).

 

A. Interest After Default.
If you declare a default under the terms of the Loan, including for failure to pay in full at maturity, you may increase the Interest
Rate otherwise payable as described in this section. In such event, interest will accrue on the unpaid Principal balance of this
Note at 18.000 percent until paid in full.

 

B. Maximum Interest Amount.
Any amount assessed or collected as interest under the terms of this Note will be limited to the maximum lawful amount of interest
allowed by state or federal law, whichever is greater. Amounts collected in excess of the maximum lawful amount will be applied
first to the unpaid Principal balance. Any remainder will be refunded to me.

 

C. Statutory Authority.
The amount assessed or collected on this Note is authorized by the Arkansas usury laws under Ark. Const. art. XIX, § 13(d)(i),
provided such laws are not otherwise preempted by federal laws and regulations.

 

D. Accrual. Interest accrues
using an Actual/360 days counting method.

 

4. ADDITIONAL CHARGES. As additional
consideration, I agree to pay, or have paid, the fees and charges listed on the APPENDIX: FEES AND CHARGES, which is attached to
and made part of this Note.

 

5. REMEDIAL CHARGES. In addition
to interest or other finance charges, I agree that I will pay these additional fees based on my method and pattern of payment.
Additional remedial charges may be described elsewhere in this Note.

 

A. Late Charge. If a
payment is more than 10 days late, I will be charged 10.000 percent of the Amount of Payment or $20.00, whichever
is greater. However, this charge will not be greater than $200.00. I will pay this late charge promptly but only once for
each late payment.

 

6. GOVERNING AGREEMENT. This Note
is further governed by the Commercial Loan Agreement executed between you and me as a part of this Loan, as modified, amended or
supplemented. The Commercial Loan Agreement states the terms and conditions of this Note, including the terms and conditions under
which the maturity of this Note may be accelerated. When I sign this Note, I represent to you that I have reviewed and am in compliance
with the terms contained in the Commercial Loan Agreement.

 

7. PAYMENT. I agree to pay this
Note on demand, but if no demand is made, I agree to pay this Note in 3 payments. I will make 2 payments of $540,000.00
beginning on June 29, 2012, and on the same day each year thereafter. A single "balloon payment" of the entire unpaid
balance of Principal and interest will be due June 29, 2014. 

 

	BLACK ROCK CAPITAL, INC.	 	 
	Arkansas Promissory Note	 	Initials___
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    Bankers SystemsTM	Page 1

 

    	 

    	 

    

 

Payments will be rounded to the nearest
$.01. With the final payment I also agree to pay any additional fees or charges owing and the amount of any advances you have made
to others on my behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a month that contains no such day will,
instead, be made on the last day of such month.

 

Each payment I make on this Note will be
applied first to interest that is due then to principal that is due, and finally to any charges that I owe other than principal
and interest. If you and I agree to a different application of payments, we will describe our agreement on this Note. You may change
how payments are applied in your sole discretion without notice to me. The actual amount of my final payment will depend on my
payment record.

 

8. PREPAYMENT. I may prepay this
Loan in full or in part at any time. Any partial prepayment will not excuse any later scheduled payments until I pay in full.

 

9. LOAN PURPOSE. The purpose of this
Loan is Purchase the BAMCO Gas LLC loan from First State Bank.

 

10. ADDITIONAL TERMS. 1. THE UNDERSIGNED
AGREES THAT THIS NOTE AND ALL PROVISIONS THEREOF SHALL BE GOVERNED BY THE LAWS OF THE STATE OF ARKANSAS AND FEDERAL LAW, INCLUDING,
BUT NOT LIMITED TO, THE MAXIMUM INTEREST RATE OR AMOUNT OF INTEREST, DISCOUNT POINTS, FINANCE CHARGES, OR OTHER SIMILAR CHARGES
ALLOWED BY THE PROVISIONS OF SECTION 731 OF THE GRAMM-LEACH-BLILEY ACT OF 1999, WHICH AMENDED SECTION 44 OF THE FEDERAL DEPOSIT
INSURANCE ACT, BEING CODIFIED AT 12 U.S.C. 1831U(F).

 

2. BANK AND BORROWER AGREE THAT BANK WILL
LOCK BOX ALL THE FUNDS FROM NET PRODUCTION DUE BLACK ROCK CAPITAL, INC. FUNDS RECEIVED ABOVE THE MINIMUM PAYMENTS DUE AS STATED
IN THE PROMISSORY NOTE DATED JUNE 29, 2011 WILL BE PLACED IN AN ACCOUNT WITH FIRST STATE BANK. AS GAS PRICES INCREASE OR DECREASE,
THE BANK WILL MAKE THE CHANGES TO THE PAYMENT STREAM TO MAINTAIN THE MINIMUM PAYMENTS.

 

11. SECURITY. The Loan is secured
by separate security instruments prepared together with this Note as follows: 

 

	Document Name	 	Parties to Document	 	Date of Security Document
	 	 	 	 	 
	Assignment Of Investment Property/Securities - RED MOUNTAIN RESOURCES, INC.	 	WILTOM INVESTORS, LLC	 	JUNE 29, 2011
	 	 	 	 	 
	Assignment Of Investment Property/Securities - BLACK ROCK CAPITAL, INC.	 	RED MOUNTAIN RESOURCES, INC.	 	JUNE 29, 2011
	 	 	 	 	 
	Assignment Of Investment Property/Securities - RED MOUNTAIN RESOURCES, INC.	 	BMR ADVISORS, LLC	 	JUNE 29, 2011
	 	 	 	 	 
	Assignment Of Investment Property/Securities - Cross Border Resources	 	BLACK ROCK CAPITAL, INC.	 	JUNE 29, 2011
	 	 	 	 	 
	Security Agreement - BLACK ROCK CAPITAL, INC.	 	BLACK ROCK CAPITAL, INC.	 	JUNE 29,  2011
	 	 	 	 	 
	Security Agreement - BLACK ROCK CAPITAL, INC. 	 	BLACK ROCK CAPITAL, INC.	 	JUNE 29, 2011
	 	 	 	 	 
	Deed Of Trust -	 	BLACK ROCK CAPITAL, INC.	 	JUNE 29, 2011
	 	 	 	 	 
	Deed Of Trust -	 	BLACK ROCK CAPITAL, INC.	 	JUNE 29, 2011
	 	 	 	 	 
	Deed Of Trust -	 	BLACK ROCK CAPITAL, INC.	 	JUNE 29, 2011

 

12. DUE ON SALE OR ENCUMBRANCE.
You may, at your option, declare the entire balance of this Note to be due and payable upon the creation of, or contract for the
creation of, any lien, encumbrance, transfer or sale of all or any part of the Property. This right is subject to the restrictions
imposed by federal law (12 C.F.R. 591), as applicable.

 

13. WAIVERS AND CONSENT. To the
extent not prohibited by law, I waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate
and notice of dishonor.

 

A. Additional Waivers By
Borrower. In addition, I, and any party to this Note and Loan, to the extent permitted by law, consent to certain actions you
may take, and generally waive defenses that may be available based on these actions or based on the status of a party to this Note.

 

(1) You may renew or extend
payments on this Note, regardless of the number of such renewals or extensions.

 

(2) You may release any
Borrower, endorser, guarantor, surety, accommodation maker or any other co-signer.

 

(3) You may release, substitute
or impair any Property securing this Note.

 

(4) You, or any institution
participating in this Note, may invoke your right of set-off.

 

(5) You may enter into
any sales, repurchases or participations of this Note to any person in any amounts and I waive notice of such sales, repurchases
or participations.

 

(6) I agree that any
of us signing this Note as a Borrower is authorized to modify the terms of this Note or any instrument securing, guarantying or
relating to this Note.

 

B. No Waiver By Lender.
Your course of dealing, or your forbearance from, or delay in, the exercise of any of your rights, remedies, privileges or right
to insist upon my strict performance of any provisions contained in this Note, or any other Loan Document, shall not be construed
as a waiver by you, unless any such waiver is in writing and is signed by you.

 

14. COMMISSIONS. I understand and
agree that you (or your affiliate) will earn commissions or fees on any insurance products, and may earn such fees on other services
that I buy through you or your affiliate.

 

15. APPLICABLE LAW. This Note is
governed by the laws of Arkansas, the United States of America, and to the extent required, by the laws of the jurisdiction where
the Property is located, except to the extent such state laws are preempted by federal law.

 

16. JOINT AND INDIVIDUAL LIABILITY
AND SUCCESSORS. My obligation to pay the Loan is independent of the obligation of any other person who has also agreed to
pay it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the Loan.
Extending the Loan or new obligations under the Loan, will not affect my duty under the Loan and I will still be obligated to
pay the Loan. This Note shall inure to the benefit of and be enforceable by you and your successors and assigns and shall be binding
upon and enforceable against me and my personal representatives, successors, heirs and assigns. 

 

	BLACK ROCK CAPITAL, INC.	 	 
	Arkansas Promissory Note	 	Initials___
	AR/4thartsfi00184400007454056070111N	Wolters Kluwer Financial Services ©1996, 2011
    Bankers SystemsTM	Page 2

 

    	 

    	 

    

 

17. AMENDMENT, INTEGRATION AND SEVERABILITY.
This Note may not be amended or modified by oral agreement. No amendment or modification of this Note is effective unless made
in writing and executed by you and me. This Note and the other Loan Documents are the complete and final expression of the agreement.
If any provision of this Note is unenforceable, then the unenforceable provision will be severed and the remaining provisions will
still be enforceable. No present or future agreement securing any other debt I owe you will secure the payment of this Loan if,
with respect to this loan, you fail to fulfill any necessary requirements or limitations of Sections 19(a), 32 or 35 of Regulation
Z or if, as a result, this Loan would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal
Year 2007.

 

18. INTERPRETATION. Whenever used,
the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not
to be used to interpret or define the terms of this Note.

 

19. NOTICE, FINANCIAL REPORTS AND ADDITIONAL
DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to
the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to
one Borrower will be deemed to be notice to all Borrowers. I will inform you in writing of any change in my name, address or other
application information. I agree to sign, deliver, and file any additional documents or certifications that you may consider necessary
to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the
essence.

 

20. CREDIT INFORMATION. I agree
to supply you with whatever information you reasonably request. You will make requests for this information without undue frequency,
and will give me reasonable time in which to supply the information.

 

21. ERRORS AND OMISSIONS. I agree,
if requested by you, to fully cooperate in the correction, if necessary, in the reasonable discretion of you of any and all loan
closing documents so that all documents accurately describe the loan between you and me. I agree to assume all costs including
by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing to reasonably comply with
your requests within thirty (30) days.

 

22. SIGNATURES. By signing, I agree
to the terms contained in this Note. I also acknowledge receipt of a copy of this Note. 

 

	BORROWER:	 
	 	 	 
	 	BLACK ROCK CAPITAL, INC.	 
	 	 	 
	 	 	By	/s/ ALAN W. BARKSDALE	 
	 	 	ALAN W. BARKSDALE, PRESIDENT	 
	 	 	 	 	 
	 	 	 
	 	ALAN W BARKSDALE	 
	 	Individually	 
	 	 	 
	 	 	 
	 	ERNEST A. BARTLETT	 
	 	Individually	 
	 	 	 
	LENDER:	 
	 	 	 
	 	First State Bank	 
	 	 	 
	 	 	By	 	 
	 	 	DAVID ESTES, PRESIDENT/CEO	 

 

 

	BLACK ROCK CAPITAL, INC.	 	 
	Arkansas Promissory Note	 	Initials___
	AR/4thartsfi00184400007454056070111N	Wolters Kluwer Financial Services ©1996, 2011
    Bankers SystemsTM	Page 3

 

    	 

    	 

    

 

APPENDIX: FEES AND CHARGES

 

As described in the ADDITIONAL CHARGES
section of the attached Note, I agree to pay, or have paid, these additional fees and charges.

 

Nonrefundable Fees and Charges.
The following fees are earned when collected and will not be refunded if I prepay this Note before the scheduled maturity date.

 

State/County UCC Filing/AR/TX/NM.
A(n) State/County UCC Filing/AR/TX/NM fee of $135.00 payable from separate funds on or before today's date.

Recording - Mortgage. A(n)
Recording - Mortgage fee of $260.00 payable from separate funds on or before today's date.

Processing fee. A(n) Processing
fee fee of $300.00 payable from separate funds on or before today's date.

Lien Search/AR and TX.
A(n) Lien Search/AR and TX fee of $184.25 payable from separate funds on or before today's date.

Late charges. A(n) Late
charges fee of $793.87 payable from separate funds on or before today's date.

Attorneys. A(n) Attorneys
fee of $3,575.00 payable from separate funds on or before today's date.

Accrued interest. A(n)
Accrued interest fee of $783.36 payable from separate funds on or before today's date. 

 

	BLACK ROCK CAPITAL, INC.	 	 
	Arkansas Promissory Note	 	Initials___
	AR/4thartsfi00184400007454056070111N	Wolters Kluwer Financial Services ©1996, 2011
    Bankers SystemsTM	Page 4

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