Document:

EXERCISE OF OPTION

AND

AMENDMENT TO FARMOUT AGREEMENT

 

A.           Reference
is here made to that certain Farmout Agreement dated July 23, 2012 (herein referred to as the “Farmout Agreement”),
by and between Bancorp Holdings, LLC, Carrier Acquisitions, LLC, and LHMF, LLC (herein referred to as “Farmors”) and
Richland Resources Corporation, Sun Delta, Inc., and Amerril Energy, LLC (herein referred to as “Farmees”).

 

B.           Reference
is also made to that certain Option Agreement dated July 23, 2012, (herein referred to as the "Option Agreement") whereby
Farmees granted an option to Leon County Minerals, LLC to purchase a percentage interest in the ownership interest of Farmees
in the Farmout Agreement.

 

C.           Leon
County Minerals, LLC has this day assigned its interest in the Option Agreement to Steadfast Resources, LLC, a Nevis limited liability
company (herein referred to as (“Steadfast”).

 

D.           Leon
County Minerals, LLC has requested that the parties to the Farmout Agreement consent to and ratify said assignment.

 

E.           As
recipient of said assigned interest, Steadfast wishes to exercise its rights under the Option Agreement, on the condition that
the Farmout Agreement is amended as hereinafter set forth.

 

F.           To
induce Steadfast to join in the Farmout Agreement, Farmors and Farmees have agreed to amend the terms of the Farmout Agreement
as hereinafter set forth.

 

NOW THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the undersigned do hereby agree to the following:

 

		1.	Farmors and Farmees do hereby consent to and ratify the
assignment dated of even date herewith, from Leon County Minerals, LLC to Steadfast, of Leon County Minerals, LLC’s
interest in the Option Agreement.

 

		2.	Steadfast does hereby exercise its option under the Option
Agreement to purchase a 50% interest in Farmees ownership interest in the Farmout Agreement and has this day remitted
to Farmees a cash sum of $250,000.00, the receipt of which is hereby acknowledged by Farmees.

 

		3.	Farmors, Farmees and Steadfast agree that the Farmout
Agreement is hereby amended so that 100% of the expenses of drilling the Test Well, and any substitute well, shall be borne
solely by Farmees and Steadfast and allocated between them as follows:

 

Exercise of Option and

Amendment to Farmout Agreement

Page 1 of 3

 

    	 

    	 

    

 

	Farmees:	 	 	50.00	%
	 	 	 	 	 
	Steadfast:	 	 	50.00	%
	 	 	 	 	 
	Total:	 	 	100.00	%

 

4.          After
production on the Test well, or any substitute well, is achieved, costs and revenues will be allocated:

 

	 	 	Working Interest	 	 	Net Revenue Interest	 
	 	 	 	 	 	 	 
	Farmors:	 	 	18.75000	%	 	 	14.06250	%
	 	 	 	 	 	 	 	 	 
	Richland:	 	 	13.53700	%	 	 	10.15275	%
	 	 	 	 	 	 	 	 	 
	Sun Delta:	 	 	13.54400	%	 	 	10.15800	%
	 	 	 	 	 	 	 	 	 
	Amerril	 	 	13.54400	%	 	 	10.15800	%
	 	 	 	 	 	 	 	 	 
	Steadfast	 	 	40.62500	%	 	 	30.46875	%
	 	 	 	 	 	 	 	 	 
	Farmors ORRI	 	 	 	 	 	 	5.00000	%
	 	 	 	 	 	 	 	 	 
	Lessors Royalty	 	 	 	 	 	 	20.00000	%
	 	 	 	 	 	 	 	 	 
	Total:	 	 	100.00000	%	 	 	100.00000	%

 

5.          Subsequent
wells will be owned as follows:

 

	 	 	Working Interest	 	 	Net Revenue Interest	 
	 	 	 	 	 	 	 
	Farmors	 	 	00.00	%	 	 	00.0000	%
	 	 	 	 	 	 	 	 	 
	Richland	 	 	16.66	%	 	 	12.4950	%
	 	 	 	 	 	 	 	 	 
	Sun Delta	 	 	16.67	%	 	 	12.5025	%
	 	 	 	 	 	 	 	 	 
	Amerril	 	 	16.67	%	 	 	12.5025	%
	 	 	 	 	 	 	 	 	 
	Steadfast	 	 	50.00	%	 	 	37.5000	%
	 	 	 	 	 	 	 	 	 
	Farmors ORRI	 	 	 	 	 	 	5.0000	%
	 	 	 	 	 	 	 	 	 
	Lessors Royalty	 	 	_______	 	 	 	20.0000	%
	 	 	 	 	 	 	 	 	 
	Total	 	 	100.00	%	 	 	100.0000	%

 

Exercise of Option and

Amendment to Farmout Agreement

Page 2 of 3

 

    	 

    	 

    

 

		6.	The Operating Agreement referenced in the Farmout Agreement
is hereby amended to conform to the provisions of this Agreement.

 

		7.	Address for notice for Steadfast shall be as follows:

 

	 	Steadfast Resources, LLC
	 	c/o Rolfe Johnson, P.C.
	 	1330 Post Oak Blvd., Suite 1600
	 	Houston, Texas 77056-3072

 

		8.	Except as amended hereby, the Farmout remains in full
force and effect:

 

EFFECTIVE as of the 3rd day
of August, 2012.

 

	BANCORP HOLDINGS, LLC	CARRIER ACQUISITIONS, LLC
	 	 
	By: /s/ Walter Quinn 	By:/s/ John Lewis
	Walter Quinn, Manager	John Lewis, Manager
	 	 
	LHMF, LLC	RICHLAND RESOURCES CORPORATION
	 	 
	 	 
	By:	/s/ Lane McNamara	 	By:	 
	Lane McNamara, Manager	Kenneth A. Goggans, Chief Executive Officer 
	 	 
	SUN DELTA, INC.	AMERRIL ENERGY, LLC
	 	 
	By: /s/ Matthew Battrick	By: /s/ Ping He
	Matthew Battrick, Director	Ping He, President
	 	 
	LEON
    COUNTY MINERALS, LLC	STEADFAST RESOURCES, LLC
	 	 
	By: /s/ Lane McNamara	By: /s/ J. Rolfe Johnson
	Lane McNamara, Manager	J. Rolfe Johnson, Member Manager
	 	 	 	 

 

Exercise of Option and

Amendment to Farmout Agreement

Page 3 of 3Exhibit 10.4

 

MANEK ENERGY PRESSURE PUMPING JOINT VENTURE,
LLC

FORMATION AGREEMENT

 

THIS MANEK ENERGY PRESSURE PUMPING JOINT
VENTURE, LLC FORMATION AGREEMENT (“Agreement”) is made effective as of June 18, 2012 (the “Effective
Date”) by and between Manek Energy Holdings, a Delaware corporation, with offices at 2255 Ridge Road, Suite 100, Rockwall,
TX 75087 (“Holdings”), Amerril Energy, LLC, an Oklahoma limited liability company with offices at 3721 Briarpark
Dr., Suite 155, Houston, TX 77042 (“Amerril”) and Cope Services, Inc., a Texas corporation with offices at 2306
Highway 100, Centerville, TN 37033 (“Cope”).

 

WHEREAS, Holdings,
Amerril and Cope desire to create a joint venture to operate a hydraulic fracturing business serving the oil and gas industry,
and to carry out the purpose of the Joint Venture; and

 

WHEREAS, “Joint
Venture” shall refer to Manek Energy Pressure Pumping, LLC, a Delaware limited liability company organized or to be organized
pursuant to the Certificate of Formation and this Agreement whose sole members are Holdings, Amerril and Cope (the “Members”).

 

NOW, THEREFORE,
Holdings, Amerril and Cope do hereby agree to the following terms and conditions, as of the Effective Date:

 

ARTICLE I.

FORMATION OF JOINT VENTURE; OWNERSHIP
STRUCTURE

 

1.1           This
Agreement constitutes a binding agreement with regard to the various matters set forth herein.

 

1.2           Name
of Joint Venture.  The name of the Joint Venture shall be “Manek Energy Pressure Pumping, LLC”
or such other name as the Members hereafter may adopt upon: (i) causing an appropriate amendment to the Certificate of Formation
to be filed in accordance with the Delaware Act; and (ii) sending notice thereof to each Member.

 

1.3           Formation.  Holdings
is hereby designated as the authorized person, within the meaning of the Delaware Act, to execute, deliver and file all certificates
(and any amendments and/or restatements thereof) which: (i) are required or permitted by the Delaware Act to be filed in the office
of the Secretary of State of the State of Delaware; and (ii) this Agreement authorizes the Joint Venture to execute, deliver and
file.  Holdings shall cause to be executed and filed with applicable governmental authorities any other instruments,
documents and certificates which, in the opinion of the Joint Venture’s legal counsel, may from time to time be required
by the laws of the United States of America, the State of Delaware or any other jurisdiction in which the Joint Venture shall determine
to do business, or any political subdivision or agency thereof, or which such legal counsel may deem necessary or appropriate to
effectuate, implement and continue the valid existence and business of the Joint Venture.

 

1.4           Operating
Agreement. On or before July 13, 2012, the parties hereto agree that they will enter into a mutually acceptable operating
agreement with respect to the Joint Venture governing its management, governance, accounting matters, capital accounts, reports,
allocations and distributions, tax matters, termination and winding up, such and other matters as are deemed necessary or desirable
by the Members, (the “Operating Agreement”). If an Operating Agreement is not agreed to by such date,
any Member may elect to withdraw from the Joint Venture and receive reimbursement of its capital contribution.

 

1.5           Purposes
of Joint Venture.  Unless and until otherwise provided in or pursuant to the Operating Agreement, the purposes
of this Joint Venture shall be to:

 

1.5.1           Provide
hydraulic fracturing services to the oil and gas industry;

 

    	 

    	 

    

 

1.5.2           Engage
in all activities and transactions as may, , be necessary or advisable to carry out the administration of the Joint Venture’s
business, all without any further act, vote or approval of any other person, notwithstanding any other provision of this Agreement.

 

1.6           Principal
and Registered Office.  The Joint Venture shall have its principal executive office at the principal executive
office of Holdings, or at such other place designated from time to time by a super-majority in interest of the Members (defined
to be 66.67% or more of the issued and outstanding membership interests).  The Joint Venture shall have its registered
office and registered agent in the State of Delaware the address and person identified in the certificate of Formation of the Joint
Venture, unless a different registered office or agent is designated from time to time in accordance with the Delaware Act.

 

1.7           Duration.  The
term of the Joint Venture shall commence on the filing of the Certificate of Formation with the Secretary of State of the State
of Delaware and shall continue until the Joint Venture is dissolved or as may be otherwise provided in the Operating Agreement.

 

1.8           Limited
Liability.  Except as otherwise required under applicable law, neither of the Members shall be liable personally
for the Joint Venture’s debts, obligations or liabilities, whether arising in contract, tort or otherwise, solely by reason
of being a Member.

 

ARTICLE II.

CAPITAL STRUCTURE, CONTRIBUTIONS AND
DISTRIBUTIONS

 

2.1           Capital
Structure.  The capital structure of the Joint Venture shall consist of the membership interests purchased by
the initial members.  Except as otherwise provided in this Agreement, all Interests shall have the same relative rights,
powers and duties.

 

2.2           Initial
Capital Contributions.  On the Effective Date, and on such dates thereafter as are appropriate per Sections 3.2.1
and 3.2.2, each Member shall make the following capital contributions in consideration for their respective membership interests.
Anticipated initial capital contributions shall total approximately $44,444,444.00 in value.

 

2.2.1           In
consideration for the receipt of membership interests in the Joint Venture, Holdings shall contribute the entire infrastructure
of the Joint Venture as a Capital Contribution, including operating, financial and administrative personnel, two hydraulic frac
fleets and other fixed assets. A specific list of equipment and other fixed assets to be contributed by Holdings is attached hereto
as Schedule 2.2.1. The aggregate value of assets to be contributed by Holdings will be approximately Thirty Six Million ($36,000,000).
Following receipt by the Joint Venture of its initial capital contributions defined herein, Holdings shall receive a reimbursement
of cash bringing its net capital contribution in the Joint Venture to Twenty Two Million, Six Hundred Sixty Six Thousand, Six Hundred
Sixty Six Dollars ($22,666,666.). Such contribution of capital assets to the Joint Venture by Holdings shall be made as follows:
(a) one frac fleet and all its related equipment shall be contributed on or before June 30, 2012; and (b) the balance of such contribution
shall be made on or before August 31, 2012; Holdings agrees to provide copies of paid invoices reflecting the purchase of equipment
and related assets contributed to the Joint Venture; Amerril and Cope shall have the right to review such purchase and transfer
records to confirm the value of the assets contributed.

 

2.2.2           In
consideration for the receipt of membership interests in the Joint Venture, Amerril shall contribute cash in the aggregate amount
of Seventeen Million Seven Hundred Seventy Seven Thousand Seventy Eight Dollars ($17,777,778), payable in installments of (a) One
Million Dollars ($1,000,000) on or before June 19, 2012; (b) Three Million Dollars ($3,000,000), on or before July 16, 2012; and
(c) Thirteen Million, Seven Hundred Seventy Seven Thousand, Seven Hundred Seventy Eight Dollars ($13,777,778) on or before July
30, 2012; and

 

2.2.3           In
consideration for the receipt of membership interests in the Joint Venture, Cope shall contribute (i) cash in the sum of Four Million
Dollars ($4,000,000), payable in installments of (a) Two Hundred Fifty Thousand Dollars ($250,000), on or before June 4, 2012;
(b) One Million Seven Hundred Fifty Thousand Dollars ($1,750,000), on or before June 18, 2012; (c) Two Hundred Fifty Thousand Dollars
($250,000), on or before July 2, 2012; and (d) One Million Seven Hundred Fifty Thousand Dollars ($1,750,000), on or before July
30, 2012.

 

    	2

    	 

    

 

Following such initial Capital Contributions,
the membership interests of the Members shall be fully paid and non-assessable, and the ownership of the membership interests for
each Member shall be as set forth on Schedule I annexed hereto.  Schedule I shall
be amended from time to time to appropriately reflect any additional capital contributions and ownership of the membership interests
in the Joint Venture, whether by new or existing Members.

 

 2.3           Maintenance
of Capital Accounts.  A capital account (the “Capital Account”) shall be established for each
Member and such account shall be adjusted as provided in the Operating Agreement.

 

2.4           Distributions.
Until otherwise provided in the Operating Agreement or except with the consent of a super-majority in interest of all Members,
there shall be no distributions by the Joint Venture to the Members.

 

ARTICLE III.

MANAGEMENT

 

3.1           Management.  The
business and affairs of the Joint Venture will be managed under the direction of the Managers (collectively, as a unit, the “Board
of Managers”), whose composition, duties and function shall be specified in the Operating Agreement. Until the adoption of
an Operating Agreement, the business and affairs of the Joint Venture shall be managed under the direction of the Members.  Management
of the day-to-day operation of the business of the Joint Venture shall be conducted by Holdings without the direction of and approval
by a super-majority in interest of the Members except as stated herein or in the joint operating agreement.  

 

Until the adoption
of an Operating Agreement, the actions requiring approval of Managers shall require the approval of a super-majority in interest
of all Members: In addition, the following actions shall require the consent of all Members:

 

•
transactions outside the ordinary course of business as defined under Section 1.5 above

•
change of name

•
change in scope of the business

•
admission of new members

•
any issuance, sale or transfer of membership interests

•
incurring debt, granting security or guarantees unless contemplated in annual business plan and budget

•
payment of any distributions

•
commencement of bankruptcy proceedings

•
adoption of annual business plan

▪
adoption of annual budget

▪
capital expenditures not contemplated in annual business plan or budget

•
acquisitions, investments in third parties, strategic alliances or partnerships outside the ordinary course of business

•
disposal of assets;

•
if not in ordinary course of business, commencing or making any significant decision relating to litigation, administrative or
investigative proceeding

▪
adoption of an Operating Agreement

▪
contracts with value in excess of $10 Million

▪
service contracts with affiliated companies

 

3.2           Liability
and Indemnification.

 

3.2.1
Except as otherwise provided by law, no Member, Manager or officer or agent of any Member, Manager or officer shall be liable,
responsible, or accountable in any way for damages or otherwise to the Joint Venture or to any of the Members for any act or failure
to act pursuant to this Agreement or otherwise unless there is a final, non-appealable judicial determination that: (i) such Person
acted in bad faith; (ii) the conduct of such Person constituted intentional misconduct or a knowing violation of law; (iii) such
Person gained a financial benefit to which such Person was not legally entitled; or (iv) such Person failed to perform his
or her duties with respect to distributions under Section 18-607 of the Delaware Act, in good faith and with that degree of
care that an ordinarily prudent person in a like position would use under similar circumstances.

 

    	3

    	 

    

 

3.2.2           The
Joint Venture shall indemnify, defend, and hold harmless each of the Members, Managers, officers and each agent of a Member, Manager
or officer against third parties (severally, the “Indemnitee” and collectively, the “Indemnitees”),
from and against any claims, losses, liabilities, damages, fines, penalties, costs, and expenses (including, without limitation,
reasonable fees and disbursements of counsel and other professionals) arising out of or in connection with: (a) such Indemnitee’s
status as a Member, Manager or officer of the Joint Venture; (b) any act or failure to act by an Indemnitee pursuant to this Agreement;
or (c) any claims, damages, liabilities, costs or expenses incurred by the Indemnitee in connection with past or present services
to the Joint Venture to the fullest extent permitted by law, except for gross negligence, bad faith, willful misfeasance, reckless
disregard of duties or willful violation of law having a material adverse effect on the Joint Venture by such Indemnitee; provided,
further, that an Indemnitee shall not be entitled to indemnification hereunder if there is a judicial determination that
such Person’s actions or omissions to act is set forth in clauses (i), (ii), (iii) or (iv) of Section 3.2.1 above.

 

ARTICLE IV.

RESTRICTIONS ON TRANSFER OF INTERESTS;
ADMISSION OF ADDITIONAL MEMBERS

 

4.1           Transfers.
         Except as provided in Section 4.2, no Member may Transfer all or any
portion of its Interest without the prior written consent of all the Members, which consent may be granted or withheld for any
or no reason.  Any Transfer of all or any portion of an Interest by any Member not made in compliance with this Section
4.1 shall be void and of no effect.

 

4.2           Permitted
Transfers.   Notwithstanding the provisions of Section 4.1, either party shall be permitted to Transfer
its Interest to any Affiliate, provided that such Affiliate complies with the provisions of Section 4.3 below (except that the
other parties consent shall not be required), after which all references in this Agreement to the transferring party shall be deemed
to include such transferee. In addition, Amerril shall be permitted to transfer its membership interest to Qingdao Kingking Applied
Chemistry Co., Ltd. without the necessity of additional consent from the other Members, and such entity will be admitted as a Member
of the Joint Venture on its compliance with the terms of Section 4.3 below.

 

4.3           Admission
of Additional Members.   No Person shall have any right as a member of the Joint Venture unless and until
such Person is admitted as a Member after such approval as is required by, and in compliance with the other conditions set forth
in, this Section 4.3.  A new Member may be admitted to the Joint Venture only with the consent of all of the Members
and only if such person shall have executed an appropriate supplement to this Agreement agreeing to be bound by its terms, as such
terms may be modified by such supplement.  Any person so admitted shall have all the rights and obligations of a Member
hereunder effective on and after the date of admission as a Member of the Joint Venture.

 

ARTICLE V.

BANK ACCOUNTS; BOOKS AND RECORDS

 

5.1           Banking.  One
or more bank accounts shall be established in the name of the Joint Venture.

 

5.2           Books
and Records.  Until otherwise provided in the Operating Agreement, Holdings shall have physical possession of
the books and records of the Joint Venture and shall give such notices, reports and advice to the Members as may, from time to
time, be required or deemed advisable, and shall perform the necessary ministerial functions of the Joint Venture.  Upon
not less than five(5) days advance written notice, each Member shall have the right, during ordinary business hours, to inspect
and copy the Joint Venture documents held in accordance with the confidentiality provisions contained herein at the requesting
Member’s expense, provided, however, that the Managers shall not provide any information which they reasonably consider to
be a trade secret or similar confidential information.  The Joint Venture may, at its option, require any Member who
has access to the books or records of the Joint Venture to execute and deliver a nondisclosure agreement in a form reasonably prescribed
by the Joint Venture.

 

    	4

    	 

    

 

ARTICLE VI.

TERMINATION AND WINDING UP OF THE
JOINT VENTURE

 

6.1           Termination.  This
Joint Venture shall commence on execution of this Agreement and shall continue until the first of any of the following events occur:

 

   6.1.1      Termination
on Occurrence of Stated Events: This Agreement and the Joint Venture will terminate automatically on the occurrence of any of
the following events:

 

(i)          To
the extent required by the Delaware Act; or

 

(ii)         Dissolution,
termination of existence, insolvency, business failure, appointment of a receiver, assignment for the benefit of creditors, or
the commencement of any proceeding under any bankruptcy or insolvency law by or against either Party to this Agreement.

 

   6.1.2           Mutual
Termination.  The Parties may, at any time, mutually agree to terminate this Agreement and the Joint Venture.

 

6.2           Winding
Up. 

 

   6.2.1Upon
termination of the Joint Venture, the assets of the Joint Venture shall be liquidated and the affairs of the Joint Venture shall
be wound up and terminated under a plan approved by and adopted by all of the Members.  Upon completion of such liquidation
and winding up, but not later than two (2) years after the end of the Fiscal Year during which termination occurs, the assets of
the Joint Venture shall be liquidated and disposed of as follows:

 

(i)          First,
to the payment of debts and liabilities of the Joint Venture and expenses of the liquidation and winding up;

 

(ii)         Second,
to the setting up of any reserves (to be held in a special interest-bearing account) which the liquidating trustee may deem reasonably
necessary for any contingent or unforeseen liabilities or obligations of the Joint Venture; provided, however, that
at the expiration of such time as such trustee shall deem advisable (not to exceed two (2) years after the end of the Fiscal Year
during which termination occurs, except in the case of any litigation matter where the length of time such reserves are maintained
shall be determined by the liquidating trustee in its sole discretion), the balance of such reserves remaining after the payment
of such contingent liabilities shall be distributed in the manner set forth in Section 6.2.1(iii) below; and

 

(iii)         Third,
to all Members, in accordance with their Percentage Interest.

 

   6.2.2       Notwithstanding
any termination of the Joint Venture, prior to such time as all of the assets of the Joint Venture shall be liquidated and distributed
pursuant to Section 6.2, the Joint Venture’s business and the affairs of the Members, as such, shall continue to be governed
by this Agreement.

 

The provisions of this section
shall survive the termination of any other provisions of this Agreement.

 

6.3           Final
Accounting.       Holdings or the liquidating trustee shall provide to each Member
a financial statement setting forth the assets and liabilities of the Joint Venture as of the date of termination and all income,
gains, losses and deductions realized by the Joint Venture upon completion of the liquidation of the assets of the Joint Venture.  Upon
compliance by Holdings or the liquidating trustee, as applicable, with the foregoing distribution plan, Holdings or the liquidating
trustee shall take such steps as are required to cancel the Certificate of Formation, upon the completion of which the Joint Venture
shall terminate and the Members shall cease to be such.

 

    	5

    	 

    

 

The Joint Venture agrees
to indemnify each Member against any and all debts, liabilities, obligations and legal actions against such Member should the occurrence
of one of the events of termination set forth in Section 6.1.1 above occur due not to any fault of such Member.

 

ARTICLE VII.

GENERAL PROVISIONS

 

7.1           Confidentiality.
Any Member may obtain from the Joint Venture, for any purpose reasonably related to the Member’s Interest, such information
regarding the affairs of the Joint Venture as is just and reasonable under the Delaware Act, subject to reasonable standards (including
standards governing what information and documents are to be furnished, at what time and location and at whose expense) established
by a super-majority in interest of the Members.

 

7.1.1           Each
Member covenants that, except as required by applicable law, judicial proceeding or any regulatory body, it will not divulge, furnish
or make accessible to any other Person information regarding the affairs of the Joint Venture, its Managers and their Affiliates,
including, but not limited to, the terms of material contractual arrangements, financial performance, whether historical in nature,
or relating to plans and prospects, projections and estimates, in each case as such Member may have received in their position
as a Member during in the course of the operation of the Joint Venture (collectively, “Confidential Information”)
without the prior written consent of the other Members, which consent may be withheld in its sole discretion.

 

7.1.2           Each
Member recognizes that in the event that this Section 7.2 is breached by any Member or any of its principals, partners, members,
directors, officers, employees or agents or any of its Affiliates, including any of such Affiliates’ principals, partners,
members, directors, officers, employees or agents, irreparable injury may result to the non-breaching Members and the Joint Venture.  Accordingly,
in addition to any and all other remedies at law or in equity to which the non-breaching Members and the Joint Venture may be entitled,
such Member and the Joint Venture also shall have the right to obtain equitable relief, including, without limitation, injunctive
relief, to prevent any disclosure of Confidential Information, plus reasonable attorneys’ fees and other litigation expenses
incurred in connection therewith.

 

7.2           Members
Not Agents.  This Agreement does not constitute any Member as the agent or legal representative of the other
Member for any purpose whatsoever.  No Member is granted any express or implied right or authority by any other Member
to assume or to create any obligation or responsibility on behalf of, or in the name of, the other Member, or to bind the other
Member in any manner or thing whatsoever.

 

7.3           Choice
of Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware,
including the Delaware Act, without regard to conflict of law provisions of such State.

 

7.4           Attorneys’
Fees. Following any legal proceeding between any of the Parties hereto regarding the operation or enforcement of this Agreement,
the prevailing Party shall be entitled to recover from the non-prevailing party court costs, necessary disbursements (including
without limitation expert witnesses’ fees) and reasonable attorneys’ fees, in addition to any other relief such Party
may be entitled.  This provision shall be construed as applicable to the entire contract.

 

7.5           Injunctive
Relief. The Members hereby agree the subject matter of this Agreement is unique, unusual and extraordinary in nature such
that it has a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages in an action at Law.  Each
Member, therefore, expressly agrees that the other Member, in addition to any other rights or remedies which the other Member may
possess, shall be entitled to injunctive and other equitable relief to prevent or remedy a breach of this Agreement by a Member.

 

7.6           Binding
on Heirs. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors,
and assigns of the Members.

 

    	6

    	 

    

 

7.7           Entire
Agreement/Modification or Amendment.  This Agreement supersedes any and all other agreements, either oral or
in writing, between the Parties hereto with respect to the subject matter hereof, and no other agreement, statement, or promise
relating to the subject matter of this Agreement, which is not contained herein shall be valid or binding; with the express
exception, however, of the Operating Agreement, once negotiated and entered into by the Members and/or Managers.  Any
modification or amendment of this Agreement will be effective only if it is in writing and executed by all Members.

 

7.8           Non-Competition.
No Party shall have the right to usurp Joint Venture opportunities for the benefit of itself or others as delineated in
the scope of work and geographical locations then currently served by the Joint Venture or as further defined herein or in the
Joint Operating agreement. . Such prohibition shall include the ownership, management (as a principal or partner), or other investment
in any competing business or enterprise.

 

7.9           Severability.  If
any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining
provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

 

7.10         Waiver.  The
waiver by any Party of any breach of a provision of this Agreement by the other Party shall not constitute a continuing waiver
or a waiver of any subsequent breach of the same or of a different provision of this Agreement.  Except as otherwise
specifically provided in this Agreement, nothing contained herein shall be deemed to restrict or prevent any Party from exercising
legal or equitable rights or from pursuing legal or equitable remedies in connection herewith.

 

7.11         Notices
and Requests.  All notices, requests, demands and other communications required or permitted under this Agreement
shall be in writing and shall be deemed to have been duly given, made and received: (x) when delivered, if made by hand delivery;
(y) two days following the day when deposited with an overnight courier service such as Federal Express, for the delivery
to the intended addressee; or (z) two days following the day when deposited in the United States mails, first class postage
prepaid, addressed as set forth below:

 

If to the Joint Venture,
to the attention of Holdings at 2255 Ridge Road, Suite 100, Rockwall, TX 75087.

 

If given to any Member,
at the address thereof set forth in the Joint Venture’s books and records.

 

7.12         Section
Headings.  The headings of the paragraphs of this Agreement have been set forth for convenience only and are
not intended to influence the interpretation of this Agreement.

 

7.13         Construction.  Each
Party cooperated in the drafting of this Agreement.  If any construction is to be made of any provision of this Agreement,
it shall not be construed against either Party on the ground such Party was the drafter of the Agreement or any particular provision.

 

7.14         Entity
Authorization.  Each signatory of this Agreement represents and warrants that this Agreement and the undersigned’s
execution of this Agreement has been duly authorized and approved by such signatory, if necessary.  The undersigned officers
and representatives of the entities executing this Agreement on behalf of the entities represent and warrant they possess full
authority to execute this Agreement on behalf of the entities.

 

7.15         Fiscal
Year.  The fiscal year shall be designated in the Definitive Operating Agreement.

 

7.16         Execution
By Facsimile.  This Agreement may be executed by the Parties and transmitted by facsimile, or by an electronic
scan sent by e-mail. A facsimile or scanned and emailed signature of a Party shall be binding as an original.  If a Party
sends a copy of the Agreement or part thereof with that Party’s signature by facsimile or email, that Party shall promptly
send the original by first class mail.  This Agreement may be executed in any number of counterparts, each of which shall
be deemed an original and all of which together shall constitute one instrument.

 

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IN WITNESS WHEREOF,
the Parties hereto have executed this Agreement as of the date first written above.

 

MEMBERS:

 

Each person who has signed or has had signed
on its behalf a Member Signature Page, which shall constitute a counterpart hereof.

 

	MANEK ENERGY HOLDINGS, INC.	 
	 	 
	/s/ Ken Goggans	 
	By:  Kenneth A. Goggans	 
	Title: Chief Executive Officer	 
	 	 
	AMERRIL ENERGY LLC	 
	 	 
	/s/ Ping He	 
	By: Ping He	 
	Title: President	 
	 	 
	COPE SERVICES, INC.	 
	 	 
	/s Ron Cope	 
	By: Ron Cope	 
	Title: President	 
	 	 

    	9

    	 

    

 

SCHEDULE I

 

Percentage Interests of Members%

 

	 
Member
	 	Percentage 
Interest	 
	 	 	 	 
	Manek Energy Holdings, Inc.	 	 	51.0	%
	Amerril Energy LLC	 	 	40.0	%
	Cope Services, Inc.	 	 	9.0	%

 

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