Document:

Exhibit
10.18

 

FUEL
PURCHASE AGREEMENT

 

THIS
FUEL PURCHASE AGREEMENT (this “Agreement”) is entered into as of this 1st day of October, 2013, by and between
Environmental Alternative Fuels, LLC, a Delaware limited liability company (“Company”), and Central
Freight Lines, Inc. a Delaware limited liability company (“Customer”).

 

BACKGROUND

 

Company
is in the business of developing, owning and operating compressed natural gas (“CNG”) fueling stations. Company
is currently in the process of developing and constructing such a fueling station on the property located at E. Loop 1604 and
Weichold Road, San Antonio, Texas 78247 (the “Station”). Customer owns and operates a trucking company
and desires to assure itself of a supply of compressed natural gas to its fleet.

 

DEFINITIONS

 

Gasoline
Gallon Equivalent (GGE): The volume of natural gas needed to produce the same amount of energy contained in one regular gallon
of unleaded gasoline. This is deemed to be 125,000 BTUs per gallon.

 

Diesel
Gallon Equivalent (DGE): The volume of natural gas needed to produce the same amount of energy as one gallon diesel fuel.
This is deemed to be 138,000 BTUs per gallon.

 

DGE
to GGE Conversion: The conversion necessary to calculate the number of GGEs in DGE. For the purposes of this document it is
deemed that there are 1.104 GGEs in 1 DGE. The process for converting DGE to GGE is to multiply the DGE volume by 1.104. For example
to convert 10 DGEs to GGEs the equation would be 10*1.104=11.104

 

WEIGHTS
AND MEASURES

 

The
United States Office of Weights and Measures currently uses GGE for all CNG gas station regulation. Therefore, all contracts,
statements, receipts, etc regarding the volume of fuel sold, to be sold, will be shown in GGE.

 

AGREEMENT

 

		1.	Purchase
                                         of CNG.

 

		a.	Purchase
                                         and Sale of CNG. From and after the Start Date (as defined in Section 2.b
                                         below), subject to the terms and conditions of this Agreement, Company shall supply
                                         to Customer at the Station(s), and Customer shall purchase from Company at the Station(s),
                                         CNG for fueling of motor vehicles.

 

    	 		 

     

    

 

		b.	Minimum
                                         Purchase Requirement. During each contract year during the term of this Agreement,
                                         with the first such period beginning on the Start Date and each subsequent period beginning
                                         on the annual anniversary of the Start Date (each such period a “Contract Year”),
                                         Customer shall purchase the following minimum volume of CNG from the Station(s).

 

		i.	During
                                         the first such Contract Year - at least 540,000 GGE of CNG from Company at the Station(s);
                                         and

 

		ii.	During
                                         second, third, fourth and fifth such Contract Year - at least 540,000 GGE of CNG from
                                         Company at the Station(s); and

 

		iii.	provided,
                                         however, that such minimum purchase requirement during any particular Contract Year shall
                                         be reduced ratably for each day or any portion of any day during such Contract Year on
                                         which the Station(s) is(are) incapable of providing CNG to Customer for more than six
                                         (6) hours between ________ a.m. local time and ________ p.m. local time, unless such
                                         incapacity is caused by or relates to any action or omission, or circumstances caused
                                         by, Customer and/or its associated Users (as defined in Section 2.a below).

 

		iv.	The
                                         minimum volume requirement is subject to truck availability and volume estimates as defined
                                         in Exhibit C.

 

		c.	Pricing
                                         and Payment.

 

		i.	Price.
                                         The purchase price for CNG purchased by Customer pursuant to this Agreement shall be
                                         determined in accordance with the “Ordinary Purchase” formula set forth in
                                         Exhibit A. If Customer fails to purchase the minimum volume of CNG during any
                                         applicable Contract Year as set forth in Section 1.b, then Customer shall pay
                                         Company an amount determined in accordance with the “Minimum Requirement True-Up”
                                         formula set forth in Exhibit A.

 

		ii.	Invoicing.

 

		a.	Invoices
                                         for Ordinary CNG Purchases. By the tenth (10th) day of each calendar month during
                                         the term of this Agreement, Company will deliver an invoice to Customer reflecting the
                                         amount owing from Customer for its purchases during the preceding calendar month.

 

		b.	Invoices
                                         for Minimum Purchase Requirements. If Customer fails to purchase the minimum volume
                                         of CNG during any applicable Contract Year as set forth in Section 1.b, then within
                                         fifteen (15) days following the end of such period, Company will deliver an invoice to
                                         Customer reflecting the amount owing from Customer for its failure to purchase such minimum
                                         volume.

 

    	 	2	 

     

    

 

		iii.	Payment.
                                         Customer shall pay company the amounts shown on the face of each invoice within fifteen
                                         (15) calendar days after the date of the applicable invoice. Payments shall be made in
                                         lawful U.S. currency. Customer shall pay interest on all past due payments calculated
                                         at a rate of ten percent (10%) per annum from the due date until paid.

 

		d.	Taxes.
                                         Any and all federal, state and local fuel use taxes, sales taxes, excise taxes, value-added
                                         taxes, duties, customs, inspection or testing fees, and all other taxes, fees, interest
                                         and charges of any nature whatsoever imposed on or measured by the transactions between
                                         Company and Customer under this Agreement shall be paid by Customer as part of the prices
                                         determined in accordance with Exhibit A. In the event that (i) any such taxes,
                                         fees, interest and charges are not included in the prices determined in accordance with
                                         Exhibit A and (ii) Company is required to pay the same, Customer shall reimburse
                                         Company therefore upon demand.

 

		2.	Fueling
                                         Procedures.

 

		a.	Customer’s
                                         Employees and Independent Contractors. Customer’s employees and/or independent
                                         contractors identified in advance in writing to Company (each, a “User”)
                                         shall, subject to Section 2.b, be entitled to purchase CNG at the Station(s) on
                                         Customer’s behalf under this Agreement.

 

		b.	Training
                                         and Customer Cards. Prior to Customer purchasing any CNG, including through any of
                                         its User, each User shall satisfactorily complete, as determined by Company, Company’s
                                         fueling and safety training. Upon each User completing such fueling and safety training,
                                         Company will issue to such User a non-transferable customer card and PIN to be used for
                                         the purchase of CNG. The date on which Company issues the first customer card to a Customer’s
                                         user shall be the “Start Date”; provided, however, that in no event
                                         shall the Start Date be a date before the development and construction of the Station(s)
                                         is (are) completed and the Station(s) is (are) operational and prepared to sell CNG,
                                         in each case as determined by Company.

 

		c.	Fueling
                                         Procedures. Each User shall perform all fueling acts necessary to purchase CNG in
                                         accordance with Company’s procedures and training, and in no event shall Company
                                         have any obligation whatsoever to assist Customer or any User with any fueling acts.
                                         Each User’s purchase of CNG will be tracked by such User’s customer card.

 

		d.	Customer
                                         Liability for Purchases. Customer shall be responsible for any and all purchases
                                         of CNG by any and all Users, and for any purchases of CNG otherwise associated with any
                                         and all customer cards associated with Customer; provided, however, that if Customer
                                         has notified Company in writing (i) not to accept a particular customer card or (ii)
                                         that a particular customer card has been lost or stolen, in the case of each of (i) and
                                         (ii), as identified by the card number and PIN, then Customer shall have no liability
                                         for any purchases of CNG associated with such customer card following Company’s
                                         receipt of such notice. Any disputes as to whether Customer is liable for any purchases
                                         of CNG will be resolved by Company in its good faith reliance on the tracked customer
                                         cards.

 

    	 	3	 

     

    

 

		3.	Warranty;
                                         Limitations on Liability.

 

		a.	Warranty.
                                         Company hereby represents and warrants that the CNG sold to Customer pursuant to this
                                         Agreement shall conform to the specifications set forth on Exhibit B, if any (the
                                         “Specifications”). The foregoing such warranty is the sole and exclusive
                                         warranty of Company with respect to any and all CNG sold to Customer pursuant to this
                                         Agreement. COMPANY HEREBY DISCLAIMS ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED,
                                         INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS
                                         FOR ANY PARTICULAR PURPOSE AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE
                                         OF TRADE, AND CUSTOMER HEREBY ACKNOWLEDGES THE FOREGOING DISCLAIMER.

 

		b.	Exclusive
                                         Remedy. Company’s sole obligation and Customer’s exclusive remedy for
                                         any failure of CNG to conform to Company’s warranty set forth in Section 3.a
                                         shall be to refund to Customer the purchase price actually paid by Customer for such
                                         non-conforming CNG.

 

		c.	Limitation
                                         of Liability. COMPANY SHALL NOT BE LIABLE FOR (I) ANY OBLIGATIONS WHATSOEVER ARISING
                                         FROM TORT CLAIMS (INCLUDING WITHOUT LIMITATION SUCH CLAIMS BASED UPON NEGLIGENCE OR STRICT
                                         LIABILITY), OR (II) ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, PUNITIVE, STATUTORY
                                         OR CONTINGENT DAMAGES WHATSOEVER, WHETHER BASED ON BREACH OF CONTRACT, WARRANTY, TORT
                                         OR ANY OTHER LEGAL OR EQUITABLE THEORY. COMPANY HEREBY DISCLAIMS THE OBLIGATIONS AND
                                         DAMAGES DESCRIBED IN CLAUSES (I) AND (II), REGARDLESS OF WHETHER COMPANY HAS BEEN GIVEN
                                         NOTICE OF THE POSSIBILITY OF SUCH OBLIGATIONS OR DAMAGES. Without limiting the generality
                                         of the foregoing, Company specifically disclaims any liability for (x) special punitive
                                         damages, penalties, damages for lost profits or revenues, loss of use of trucks or trailers
                                         or other equipment or systems, cost of capital, cost of substitute products or trucks
                                         or trailers or other equipment or systems, delay in Customer’s performance, downtime,
                                         or shutdown or slowdown costs; (y) any other types of economic loss; and (z) claims of
                                         Customer’s customers or any other third party for any such damages, losses, costs
                                         or liabilities. Company’s maximum aggregate liability under this Agreement shall
                                         not exceed the payments made by Customer for the purchase of CNG.

 

		4.	Indemnification
                                         and Insurance. Customer shall indemnify and hold harmless Company and its officers,
                                         directors, managers, affiliates, employees, representatives and agents from and against
                                         any and all losses, liabilities, damages and expenses (including but not limited to attorneys’
                                         fees and other costs of defense) that Company or any of them may incur as a result of
                                         (i) any third party claims for death, bodily injury, property damages or environmental
                                         liabilities arising out of, relating to or resulting from Customer’s acts or omissions,
                                         including but not limited to any such claim based upon the negligence of Customer or
                                         its affiliates, employees, representatives or agents. Customer shall obtain the insurance
                                         policies and coverages listed in Exhibit D and shall name Company as an additional
                                         insured for those policies and coverages.

 

    	 	4	 

     

    

 

		5.	Term
                                         and Termination.

 

		a.	Term.
                                         This Agreement shall be effective as of the date first written above and, unless earlier
                                         terminated, as provided for herein, shall continue in full force and effect through (and
                                         including) the fifth anniversary of the Start Date.

 

		b.	Automatic
                                         Renewal. Provided that Customer is not in violation of any of the terms and conditions
                                         herein, this Agreement shall automatically renew for the term of one year, and shall
                                         continue to renew for a term of one year in perpetuity unless either Customer or Company
                                         notifies the other party in writing of its intention to not renew this Agreement, which
                                         notification must be delivered no later than thirty (30) days prior to the expiration
                                         of the then current term of the Agreement.

 

		b.	Early
                                         Termination by Company. This Agreement and/or any use of any customer cards may be
                                         terminated by Company immediately upon written notice if Customer: (a) fails to make
                                         any payment hereunder as and when due; (b) by act or omission breaches or defaults on
                                         any material term or condition of this Agreement other than the obligation to make payments
                                         as and when due and Customer fails to cure such breach or default within thirty (30)
                                         calendar days after written notice from Company; or (c) becomes insolvent, makes an assignment
                                         for the benefit of creditors, has a receiver appointed over all or any portion of its
                                         property, becomes the subject of an “order for relief” as that term is used
                                         in the U.S. Bankruptcy Code, or is liquidated or dissolved or its affairs are wound up.

 

		c.	Early
                                         Termination by Customer. This Agreement may be terminated by Customer immediately
                                         upon written notice if Company: (a) by act or omission breaches or defaults on any material
                                         term or condition of this Agreement and Company fails to cure such breach or default
                                         within thirty (30) calendar days after written notice from Customer; or (b) becomes insolvent;
                                         makes an assignment for the benefit of creditors, has a receiver appointed over all or
                                         any portion of its property, becomes the subject of an “order for relief”
                                         as that term is used in the U.S. Bankruptcy Code, or is liquidated or dissolved or its
                                         affairs are wound up.

 

		d.	Effect
                                         of Termination. Neither expiration nor termination of this Agreement shall affect
                                         the rights or responsibilities of the parties hereunder that accrued prior to expiration
                                         or termination. Sections 3.b and c, 4, 5.e, and 6 shall survive
                                         expiration or termination.

 

    	 	5	 

     

    

 

		6.	Miscellaneous.

 

		a.	Notice.
                                         All notices, requests, demands and other communications under this Agreement shall be
                                         given in writing and shall be personally delivered; sent by electronic mail or facsimile
                                         transmission; or sent to the applicable parties at their respective addresses indicated
                                         in this Section 6.a by registered or certified U.S. mail, return receipt
                                         requested and postage prepaid; or by private overnight mail courier service, as follows:

 

If
to Company, to:

 

Environmental
Alternative Fuels, LLC

9899
W. Roosevelt Street

Tolleson,
AZ 85353

Facsimile:
623.907.6401

 

If
to Customer, to:

 

Central
Freight Lines, Inc.

5200
E. Loop 820 South

Ft.
Worth, TX 76119

Attention:
Kris Ikejiri (sp?)

Facsimile:
_______________

 

or
to such other person or address as either party shall have specified by notice in writing to the other party. If personally delivered,
such communication shall be deemed delivered upon actual receipt; if sent by electronic mail, such communication shall be deemed
delivered upon the recipient’s confirmation of receipt (it being understood that an automatic response to such electronic
mail shall not be deemed confirmation of receipt); if sent by facsimile transmission, such communication shall be deemed delivered
the day of the transmission, or if the transmission is not made on a business day, the first business day after the transmission
(and sender shall bear the burden of proof of delivery); if sent by overnight courier, such communication shall be deemed delivered
upon receipt; and if sent by U.S. mail, such communication shall be deemed delivered as of the date of delivery indicated on the
receipt issued by the relevant postal service or, if the addressee fails or refuses to accept delivery, as of the date of such
failure or refusal.

 

		b.	Assignment:
                                         No Third-party Beneficiaries. Neither party may assign this Agreement or its rights
                                         or obligations hereunder, in whole or in part, voluntarily or by operation of law, without
                                         the prior written consent of the other party which may not be unreasonably withheld,
                                         delayed or conditioned, and any attempted assignment without such consent shall be null
                                         and void and without legal effect. Notwithstanding the foregoing, Company may assign
                                         this Agreement or its rights or obligations hereunder, in whole or in part, to any of
                                         its affiliates or to any person or entity that purchases all or any substantial portion
                                         of its assets, without Customer’s consent. This Agreement shall be binding upon,
                                         inure to the benefit of and be enforceable by the parties and their respective permitted
                                         successors and permitted assigns. Nothing contained in this Agreement shall be deemed
                                         to confer upon any person or entity any right or remedy under or by reason of this Agreement.

 

    	 	6	 

     

    

 

		c.	Severability.
                                         If a court of competent jurisdiction determines any provision(s) of this Agreement to
                                         be illegal or excessively broad, then this Agreement shall be construed so that the remaining
                                         provisions shall not be affected but shall remain in full force and effect and any such
                                         illegal or excessively broad provision(s) shall be deemed, without further action on
                                         the part of any person, to be modified, amended and/or limited to the extent necessary
                                         to render the same valid and enforceable in such jurisdiction.

 

		d.	Amendment
                                         and Waiver. No provisions of this Agreement may be modified, waived or discharged
                                         unless such modification, waiver or discharged unless such modification, waiver or discharge
                                         is agreed to in a writing executed by Customer and Company. No action taken pursuant
                                         to this Agreement shall be deemed to constitute a waiver by the party taking such action
                                         of compliance with any representations, warranties, covenants or agreements contained
                                         in this Agreement. No waiver by either party at any time of any breach by the other party
                                         of, or compliance with, any provision of the Agreement to be performed by such other
                                         party shall be deemed a waiver of similar or dissimilar provisions at the same or at
                                         any prior or subsequent time.

 

		e.	Entire
                                         Agreement. This Agreement (including the exhibits attached hereto) supersedes all
                                         prior agreements, whether oral or in writing, between the parties with respect to its
                                         subject matter and constitutes the complete and exclusive statement of the terms of the
                                         agreement between the parties with respect to its subject matter. There have been and
                                         are no conditions, agreements, representations or warranties between the parties with
                                         respect to the subject matter of this Agreement other than those set forth or provided
                                         for in this Agreement.

 

		f.	Counterparts:
                                         Facsimile Signatures. This Agreement may be executed by facsimile signature pages
                                         and in one or more counterparts, each of which shall be deemed an original, but all of
                                         which together shall constitute one and the same document.

 

		g.	Governing
                                         Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
                                         WITH THE INTERNAL LAWS OF THE STATE OF ARIZONA, EXCLUDING ANY CHOICE-OF-LAW RULES THAT
                                         MAY DIRECT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. Each party stipulates
                                         that any dispute or disagreement between the parties as to the interpretation of any
                                         provision of, or the performance of obligations under, this Agreement shall be commenced
                                         and prosecuted in its entirety in, and consents to the exclusive jurisdiction and proper
                                         venue of, the federal or state courts located in the State of Arizona, and each party
                                         consents to personal and subject matted [sic] jurisdiction and venue in such courts and
                                         waives and relinquishes all right to attack the suitability or convenience of such venue
                                         or forum by reason of such party’s present or future domiciles or by any other
                                         reason. The parties acknowledge that all directions issued by the forum court, including,
                                         without limitation, all injunctions and other decrees, will be binding and enforceable
                                         in all jurisdictions and countries. EACH PARTY WAIVES ANY RIGHT TO TRIAL BY JURY WITH
                                         RESPECT TO ANY SUCH DISPUTE OR DISAGREEMENT.

 

[The
next page is the signature page]

 

    	 	7	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their duly authorized representatives, effective
as of the date first above set forth.

 

	CENTRAL
    FREIGHT LINES, INC.	 	ENVIRONMENTAL
    ALTERNATIVE FUELS, LLC
	 	 	 	 	 
	By:	/s/
    Donald Orr	 	By:
    	/s/
    Danny Cuzick
	Name:
    	Donald
    Orr	 	Name:
    	Danny
    Cuzick
	Title:
    	President	 	Title:
    	President

 

    	 	8	 

     

    

 

Exhibit
A

 

Ordinary
Purchase, Minimum Requirement

and Excess Volume Rebate Formulas

 

Ordinary
Purchase

 

		1.	Fuel
                                         Price to Customer for all gallons pumped including the minimum purchase requirement,
                                         or otherwise shall be $1.49 per GGE. This Fuel Price is subject to the following conditions:

 

		a.	The
                                         State of Texas currently charges a state sales tax equal to $0.15 per GGE which
                                         is included in the Fuel Price. Company will charge Customer this tax at the pump. Should
                                         the State of Texas change the tax rate on the sale of CNG, such tax rate changes
                                         shall be passed on to Customer. The Company reserves the right to include any county
                                         or municipality tax, if applicable.

 

		b.	Federal
                                         tax is included in the above Fuel Price at a rate of $.181 per GGE. Should the federal
                                         tax rate adjust during the term of the agreement, any adjustment shall be passed on to
                                         Customer.

 

		c.	As
                                         of the date of this Agreement, prompt month natural gas futures on the New York Mercantile
                                         Exchange (NYMEX) settled at a price of $_____ per MMBtu. The Fuel Price to the Customer
                                         shall fluctuate on a monthly basis at the rate of $.0125 per GGE for every $.10 per MMBtu
                                         change in the last day settlement price of prompt month natural gas futures.

 

		d.	Notwithstanding
                                         Article 1.c above, Customer shall have the opportunity to control price fluctuation
                                         by instructing Company to lock in the price of natural gas futures for a determined period
                                         of time at which point the price per GGE would be fixed for that period of time subject
                                         to Articles 1.a and 1.b above. All terms and conditions related to locking
                                         in the price shall be contained in a separate agreement to be mutually agreed upon and
                                         executed by Customer and Company at the time Customer wishes to lock in price.

 

Minimum
Requirement True-up:

 

For
any Contract Year following the Start Date in which Customer does not purchase the minimum volume of CNG as required by Section
1.b, Customer shall pay to Company an amount equal to the product of: (i) the minimum GGE volume stated in 1.b.i. of the Agreement
minus the actual GGE volume purchased for the year, multiplied by (ii) the average annual price of fuel per ggg, excluding state
and local taxes.

 

    	 	9	 

     

    

 

Exhibit
B

 

Specifications

 

None

 

    	 	10	 

     

    

 

Exhibit
C

 

The
truck availability and minimum volume requirements stated in 1.b.iii of the Agreement are subject to the following:

 

		1.	The
                                         customer agrees to purchase __________ CNG powered vehicles for delivery on or near the
                                         date that the CNG fueling station is in operation.

 

		2.	The
                                         estimated annual volume per vehicle is _______________ GGE.

 

		3.	The
                                         minimum annual volume is pro-rated based on the numbers indicated in 1 and 2 above based
                                         on vehicle receipt from the truck dealer.

 

    	 	11	 

     

    

 

Exhibit
D

 

Required
Insurance Coverage

 

		1.	Broad
                                         Form Comprehensive General Liability including Contractual Liability naming Company as
                                         an Additional Insured.

 

		2.	Commercial
                                         Automobile Bodily Injury and Property Damage Liability Insurance naming Company as an
                                         Additional Insured.

 

		3.	Minimum
                                         Limit of Liability for 1 and 2 above is $1,000,000.

 

 

12Exhibit 10.19

 

NATURAL GAS SERVICE
AND PIPELINE AGREEMENT

(LDC, llc.)

EVO CNG Facility, Bexar County, San Antonio, Texas

 

THIS AGREEMENT effective
as of the 12th day of November, 2014, is by and between Environmental Alternative Fuels, LLC an Arizona Limited
Liability Company, hereinafter referred to as “Buyer” and LDC, llc., a Texas Limited Liability Company, hereinafter
referred to as “Pipeline”.

 

RECITALS

 

WHEREAS, Buyer shall own
and operate a Compressed Natural Gas Fueling Station in Bexar County, near San Antonio, Texas which requires an interruptible daily
supply of natural gas; and

 

WHEREAS, Pipeline is a Natural
Gas Distribution Company, as regulated by the Texas Railroad Commission, and is willing to sell natural gas to Buyer and to construct
approximately 1,700 feet of 3 1⁄2” O.D. steel pipeline complete with measurement facilities on the Enterprise Pipeline
to serve Buyer’s CNG Fueling Station located in Texas. Pipeline will own, operate, and maintain the pipeline system. Buyer,
at its sole expense, shall pay for all associated costs pertaining to the acquisition of private rights-of-way, surface site, survey,
tap and metering facilities on the Enterprise Pipeline system; and

 

WHEREAS, Buyer and Pipeline
desire to enter into an agreement whereby Pipeline will construct pipeline facilities and provide exclusive natural gas service
to Buyer and Buyer will purchase from Pipeline, Buyer’s daily natural gas requirements on an interruptible basis, as herein
after set forth:

 

NOW THEREFORE, in consideration
of the premises and of the agreements, covenants and conditions herein set forth, Pipeline agrees to sell and deliver to Buyer
and Buyer agrees to purchase and pay for the gas, and other charges, in accordance with Pipeline’s Tariff and the provisions
of this Agreement (including the General Terms which are attached and made a part hereof) as follows:

 

AGREEMENT

 

Quantity: Pipeline shall
arrange to transport gas on the Enterprise Pipeline system, deliver to Pipeline and sell to Buyer Buyer’s daily gas requirements,
and Buyer shall purchase and receive Buyer’s daily gas requirements for Buyer’s CNG facility.

 

Delivery and Measurement Point:
The Delivery and Measurement Points are set forth in Exhibit “A” attached hereto and incorporated herein by reference.

 

Title and Pressures: Title
to and responsibility for all gas sold and purchased hereunder shall pass from Pipeline to Buyer at the Delivery Point. The pressures
at the Measurement and Deliver Points shall satisfy Buyer’s operational requirements. The maximum pressure shall not exceed
the pressure equal to the pressure, from time to time, on the Enterprise Pipeline system. The current pressure is approximately
250 psig.

 

    	 		 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

Price: (Cost of gas delivered
to Pipeline off the Enterprise Pipeline System Plus Tiered Amounts)

 

The following Commercial Rates shall apply to all deliveries
made under this contract. These rates shall be firm and not subject to change for at least three (3) years. Thereafter the parties
shall enter into mutually agreeable rates applicable to deliveries made under this contract.

 

The components of the rates shall be calculated as
follows:

 

Buyer shall pay Pipeline for its
actual costs of purchasing gas for delivery to Buyer. Such rates are anticipated to consist of Houston Ship Channel Posted Price
plus transportation, fuel and other applicable fees incurred by Pipeline at the Enterprise Pipeline Measurement Point. In addition
to the above, Buyer agrees to pay Pipeline the following additional amounts for natural gas delivered by Pipeline to Buyer during
each of the three 12 month periods covered by this contract (contract year):

 

Tier 1- $0.93 for the first 96,000 MMBtu delivered in a
contract year

Tier 2- $0.55 for 96,001 to $166,000 [sic] MMBtu delivered
in a contract year

Tier 3- $0.34 for volumes in excess of 166,001 MMBtu delivered
in a contract year

 

The Tier 1, Tier 2, and Tier 3 prices shall hereinafter
be referred to as “Natural Gas Commodity Fee”.

 

To the extent that Pipeline’s deliveries to Buyer
exceed 96,000 MMBtu during a contract year, then during the calendar month subsequent to the calendar month in which the minimum
annual obligation of 96,000 MMBtu has been reached the Natural Gas Commodity Fees of Tiers number 2 and 3 shall apply and the minimum
monthly payment provided for herein shall no longer apply for the remainder of that contract year.

 

In addition to the price of gas as outlined above:

 

A) Buyer, shall pay Pipeline a one-time initial payment
of Sixty Five Thousand Dollars ($65,000) as a Contribution In Aid of Construction (CIAC). Pipeline shall have no obligation to
commence construction of the facilities until it has received payment in full of the initial CIAC.

 

Buyer further agrees to pay Pipeline an amount, not
to exceed, Forty Three Thousand Dollars ($43,000) for actual additional construction costs associated with installing the pipeline
on TxDot ROW. Such items include, but are not limited to, additional labor, welding, x-ray, boring, inspection, surveying, certifications
and as-built documentation, etc. Such payment shall be due and payable within ten (10) days of receipt of an itemized invoice after
the pipeline is installed.

 

B) Buyer also agrees to pay Pipeline a minimum monthly
payment of Five Thousand Five Hundred Dollars ($5,500) should the volumes of natural gas sold not exceed Five Thousand Nine Hundred
Fourteen (5,914) MMBtu in any given month. Pipeline shall credit Buyer’s account for volumes paid for in a month but delivered
in subsequent months of a contract year. Buyer agrees to pay the Tier 1 Natural Gas Commodity Fee for 70,968 MMBtu per contract
year even if it takes a lesser volume of gas in such contract year.

 

    	 	2	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

Payment: On or before the
fifth (5th) day of the month following the month in which gas was delivered, Pipeline shall submit an invoice to Buyer
for all gas purchased and sold at the Delivery and Measurement Point(s) during the preceding month. Should Pipeline not receive
the information required to prepare such invoices in a timely manner, then Pipeline shall submit an estimated invoice, to be adjusted
no later than the next month’s billing cycle. Buyer will electronically transfer funds due Pipeline for the gas purchased
within fifteen (15) days of the invoice date.

 

Should Buyer fail to remit the
full undisputed amount payable when due, interest on the unpaid and undisputed portion of the invoice shall accrue at a rate equal
to the lower of (i) the then-effective prime rate of interest published under “Money Rates” by the Wall Street Journal,
plus two percent per annum from the date due until the date of payment or (ii) the maximum applicable lawful interest rate, whichever
is lower. If Buyer, in good faith, disputes the amount of any such invoice or any part thereof, Buyer will pay to Pipeline such
undisputed amount; provided, however, if Buyer disputes the amount due, Buyer shall provide documentation to support the amount
so disputed.

 

Security: Pipeline may,
at its option, upon Buyer not timely remitting the undisputed amount due and payable hereunder, request that Buyer furnish security
acceptable in general bank lending practices to Pipeline to assure Pipeline of on-time payment for gas sold hereunder and Buyer
will promptly furnish such Security. Pipeline will not make unreasonable demand for security upon Buyer. Failure of Buyer to furnish
such security shall entitle Pipeline to suspend deliveries of gas until such security is provided, but the exercise of such right
shall be in addition to any and all other remedies available to Pipeline.

 

Notice Requirements: All
notices are required to be given in writing and shall be deemed received when deposited in the United States mail, postage prepaid
and addressed to the address set forth herein for the party being notified or by facsimile transmission, transmission confirmed.
Notice of readiness to commence deliveries, suspension or resumption of deliveries, shall be given by certified mail, postage prepaid
and addressed to the address set forth herein for the party being notified or by facsimile transmission, transmission confirmed.
Either party may change its address for notices by complying with terms of this paragraph. All Notices shall be addressed as follows:

 

	When to Buyer:	 	When to Pipeline:
	 	 	 
	Environmental Alternative Fuels, LLC	 	LDC, llc.
	(EVO CNG)	 	620 Longmire Rd.
	9899 W Roosevelt St.	 	Conroe, Texas 77304
	Tolleson, AZ 85353	 	Telephone: (936) 539-3500
	Telephone: (855) 386-3835	 	Facsimile: (936) 539-3501
	Attn: Damon Cuzick, COO	 	Attn:  Larry D. Corley, President

 

Operation and Maintenance Facilities:
Pipeline shall maintain its pipeline and other owned facilities at its sole cost and expense.

 

    	 	3	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

IN WITNESS WHEREOF, this Agreement
is executed as of the day of the respective acknowledgments below.

 

	 	PIPELINE
	 	 
	 	LDC, llc.
	 	 	 
	 	By: 	/s/Larry D. Corley
	 	 	Larry D. Corley
	 	 	President
	 	 	 
	 	Date: 	11/12/14
	 	 	 
	 	BUYER
	 	 
	 	ENVIRONMENTAL ALTERNATIVE FUELS, LLC
	 	 	 
	 	By: 	/s/ Damon Cuzick
	 	 	Damon Cuzick
	 	 	COO
	 	 	 
	 	Date: 	11/12/14

 

Signatory page to that certain Gas Service and Pipeline Agreement between
LDC, llc. and Environmental Alternative Fuels, LLC dated November 12, 2014.

 

    	 	4	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

GENERAL TERMS

 

1.       Definitions.
All capitalized terms used in these General Terms refer to the terms specified in the Agreement. The term “Agreement”
refers to the foregoing Gas Service and Pipeline Agreement, which includes these General Terms. For the purpose of this agreement,
unless the context of the instruments requires otherwise, the following terms and phrases shall have the following particular meanings:

 

1.01.       The
term “Party”, as used herein, shall mean either Pipeline or Buyer, and the term “Parties”
shall mean Pipeline and Buyer.

 

1.02.       The
term “gas” or “Gas” shall mean any mixture of hydrocarbons and noncombustible gases in a
gaseous state consisting primarily of methane.

 

1.03.       The
term “Btu” shall metal British Thermal Unit or Units, as applicable, measured at a pressure of fourteen and
seventy-three hundredths (14.73) pounds per square inch at a temperature of sixty (60) degrees Fahrenheit, on a dry basis.

 

1.04.       The
term “MMBtu” shall mean one million (1,000,000) Btu’s.

 

1.05.       The
term ‘‘day” shall mean a period of time commencing at 9:00 A.M. Central Time on a calendar day and ending
at 9:00 A.M. Central Time on the following day.

 

1.06.       The
term “month” shall mean the period beginning at 9:00 A.M. Central Time on the first day of a calendar month
and ending at 9:00 A.M. Central Time on the first day of the next succeeding calendar month.

 

1.07.       The
term “Mcf” shall mean one thousand (1,000) cubic feet of Gas measured at a base temperature of sixty degrees
(60°) Fahrenheit, and at a pressure base of fourteen and seventy-three one-hundredths (14.73) pounds per square inch absolute.

 

1.08.       The
term “psig” shall mean pounds per square inch gauge.

 

1.09.       The
term “psia” shall mean pounds per square inch absolute.

 

2.       Quality.
All gas shall meet the following quality specifications:

 

a.       The
gas shall in no event have a water content in excess of seven (7) pounds of water per million (1,000,000) cubic feet of gas as
determined by a method generally acceptable for use in the gas industry, which method shall be mutually acceptable to both parties.

 

b.       The
gas shall not contain more than one half (1/2) grain of hydrogen sulphide per one hundred (100) cubic feet as determined by quantitative
test. Determination shall be made by a method in general use in the industry, which method shall be mutually acceptable to both
parties.

 

c.       The
gas shall not contain more than ten (10) grains of total sulphur per one hundred (100) cubic feet of gas as determined by quantitative
test. Determination shall be made by a method in general use in the industry, which method shall be mutually acceptable to both
parties.

 

    	 	5	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

d.       The
gas shall not have a temperature greater than one hundred twenty (120) degrees Fahrenheit.

 

e.       The
gas shall not contain, in excess of two percent (2%) by volume of carbon dioxide.

 

f.       The
gas shall not contain in excess of two-tenths percent (0.2%) by volume of oxygen.

 

g.       The
gas shall not contain in excess of three percent (3%) by volume of nitrogen.

 

h.       The
gas shall not contain more than five percent (5%) by volume of total non-hydrocarbons. Non-hydrocarbons shall include, but not
be limited to carbon dioxide, oxygen, and nitrogen.

 

i.       The
gas shall not have a gross heating value of less than nine hundred sixty-seven (967) Btu’s per cubic foot.

 

The compositional analysis of the gas sold hereunder
shall be determined by Enterprise Pipeline using a representative sample of the gas volumes being delivered to the Measurement
Point.

 

3.       Measurement
and Quality Standards and Procedures. Facilities and measurement data with respect to the Gas covered hereby shall at all reasonable
times be subject to joint inspection by the parties hereto. The unit of quantity measurement for purposes of this agreement shall
be one MMBtu dry. The specific gravity and composition used in the computation of quantity measurement shall be obtained from the
most recently available representative gas chromatographic analysis. The meters for measurement of volumes of Gas hereunder must
be installed and operated, and Gas measurement computations must be made in accordance with current industry standards. Orifice
metering must be performed in accordance with the latest version of A.G.A. Report No. 3 -
ANSI/API 2530. Positive displacement and rotary metering must be performed in accordance with the latest version ANSI B 109.1,
B109.2 or B109.3. Turbine metering must be performed in accordance with the latest version of Report No. 7. Electronic measurement
must be performed in accordance with the latest version of API Manual of Petroleum Measurement Standards Chapter 21-Flow Measurement
Using Electronic Metering Systems. Meters and electronic correctors and associated measuring equipment shall be proved at least
once each year; and the cost of such testing shall be borne by the owner of such equipment. Buyer shall be provided with copies
of all tests and gas quality data upon receipt. Buyer shall not be responsible for the cost or expense of such tests or the reports
generated thereby.

 

The determination of gas volumes, analysis, gas quality,
pressure shall be determined by the Transporting pipeline and within the Transporting pipeline’s standards (Enterprise Pipeline).

 

    	 	6	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

4.       Taxes.
The term Taxes include, franchise, all existing taxes imposed, assessments or charges except ad valorem, net income and excess
profit taxes imposed or levied by any governmental authority on Pipeline.

 

Buyer agrees to pay any new taxes or increased rate
of any franchise, existing tax, assessment or charge or subsequently applicable taxes, except ad valorem, net income and excess
profit taxes, imposed or levied by any governmental authority as a result of any new or amended law, ordinance, enacted after the
effective date of this Agreement, which is assessed or levied against the Pipeline and added to or made a part of the cost of natural
gas purchased by the Pipeline for resale hereunder.

 

5.       Audit.
Each party hereto shall have the right at all reasonable times to examine the books and records of the other party to the extent
necessary to verify the accuracy of any statement, charge, computation, or demand made under or pursuant to this Agreement. Any
statement shall be final as to both parties unless questioned within two (2) years after payment thereof has been made. Except
as may otherwise be provided by applicable law, regulation or order, if an error becomes evident involving an overpayment or underpayment
for gas delivered, then within thirty (30) days after the final determination and notice thereof, Pipeline shall refund the amount
of any overpayment and/or Buyer shall pay any balance owed due to any underpayment.

 

6.       Force
Majeure. 

 

a.       Except
with regard to a party’s obligation to make payments due hereunder neither party shall be liable to the other for failure
to perform an obligation, to the extent such failure was caused by Force Majeure. The term “Force Majeure” as employed
herein means any cause not reasonably within the control of the party claiming suspension and which could not have been prevented
with the exercise of reasonable care.

 

b.       Force
Majeure shall include but not be limited to the following: (i) physical events such as acts of God, landslides, lightning, earthquakes,
fires, storms or storm warnings, such as hurricanes, which result in evacuation of the affected area floods, washouts, explosions,
equipment failure; (ii) weather related events affecting an entire geographic region, such as low temperatures which cause freezing
or failure of wells or lines of pipe; (iii) interruption of interruptible transportation and/or storage by transporters; (iv) acts
of others such as strikes, lockouts or other industrial disturbances, riots, sabotage, insurrections or wars; and (v) governmental
actions such as necessity for compliance with any court order, law, statute, ordinance, or regulation promulgated by a governmental
authority having jurisdiction. The Parties shall make reasonable efforts to avoid the adverse impacts of a Force Majeure and to
resolve the event or occurrence once it has occurred in order to resume performance.

 

c.       Notwithstanding
anything to the contrary herein, the Parties agree that the settlement of strikes, lockouts or other industrial disturbances shall
be entirely within the sole discretion of the party experiencing such disturbance.

 

d.       The
party whose performance is prevented by Force Majeure must provide notice to the other party. Initial notice may be given orally;
however, written notification with reasonably full particulars of the event or occurrence is required as soon as reasonably possible.
Upon providing written notification of Force Majeure to the other party, the affected party will be relieved of its obligation
to make or accept delivery of Gas as applicable to the extent and for the duration of Force Majeure, and neither party shall be
deemed to have failed in such obligations to the other during such occurrence or event.

 

    	 	7	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

7.       Laws
& Regulations. This Agreement is subject to all applicable governmental laws, orders, directives, rules and regulations.
The laws of the state of Texas shall govern this Agreement and shall control in construing this Agreement.

 

8.       Invalidity.
A holding by a court that any provision of this Agreement is invalid or unenforceable shall not affect the validity of the other
provisions of this Agreement.

 

9.       Assignment.
This Agreement may not be assigned without the prior written consent of both parties. Consent to an assignment shall not be unreasonably
withheld. No proposed assignment of this Agreement will be effective until written notice is given of the proposed assignment and
written consent to the assignment is obtained in accordance with this paragraph. Notwithstanding anything herein contained to the
contrary, nothing in this Agreement shall prohibit either party from using this Agreement as security for any indebtedness incurred
by it, its parent corporation, or any of its subsidiaries. Either party is expressly granted the right to pledge this Agreement
as security for the payment of any indebtedness incurred by it, its parent company, or its subsidiaries, however such pledge be
evidenced. No assignment of this Agreement will act to release the assigning party unless the non-assigning party expressly consents
to the release of the assigning party.

 

10.       Warranty.
Pipeline warrants, and agrees to defend title to the natural gas delivered hereunder and the right of Pipeline to sell same. Pipeline
further warrants that all such natural gas is delivered free and clear of all liens, encumbrances, and adverse claims, including
without limitation liens to secure payment of taxes.

 

11.       Remedy
for Default. With the exception of billing disputes and as otherwise specifically provided in this Agreement, if either party
shall fail to perform any of the covenants or obligations imposed upon it under this Agreement (except where such failure shall
be excused under the provisions hereof), the other party may, at its option, terminate this Agreement by written notice to be served
on the party in default stating specifically the cause for terminating this Agreement and declaring it to be the intention of the
party giving the notice to terminate the same; thereupon the party in default shall have thirty (30) days after the service of
the notice in which to remedy or remove the cause or causes stated in the notice for terminating the Agreement and, if within said
period of thirty (30) days, the party in default does so remedy and remove said cause or causes and fully indemnify the party not
in default for any and all consequences of such breach, then such notice shall be withdrawn and this Agreement shall continue in
full force and effect. In case the party in default does not so remedy and remove the cause or causes and does not indemnify the
party giving the notice for any all consequences of such breach, within said period of thirty (30) days, then this Agreement shall
become null and void from and after the expiration of said period. Any cancellation of this Agreement pursuant to the provisions
of this section shall be without prejudice to the right of the party not in default to collect any amounts then due it and without
waiver of any other remedy to which the party not in default may be entitled for violation of this Agreement.

 

    	 	8	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

12.       Possession.
Pipeline shall be deemed for purposes hereof to be in exclusive control and possession of the gas delivered at the Delivery and
Measurement Point(s) prior to and upon delivery. Pipeline shall indemnify, defend and hold Buyer and Buyer’s agents harmless
from and against any and all loss, cost and expense, including judgments, demands, actions or liability (including reasonable expenses,
attorneys’ fees and costs incurred by Buyer in connection therewith) arising while the gas is in Pipeline’s exclusive
control or possession. Buyer shall indemnify, defend and hold Pipeline and Pipeline’s agents harmless from and against, any
and all loss, cost and expense, including judgments, demands, actions or liability (including reasonable expenses, attorney’s
fees and costs incurred by Pipeline in connection therewith) arising from Buyer’s possession of the gas while the gas is
in Buyer’s exclusive control.

 

13.       Site
Access. Buyer hereby grants to Pipeline a rights of way and easement and surface site(s) on, under, over and along the properties
owned and/or controlled by Buyer. Pipeline shall have full rights of ingress and egress for the fulfillment of Pipeline’s
obligations to install, operate, maintain, remove, replace and service its facilities and equipment.

 

14.       Independent
Contractor. In performing its obligations hereunder, Pipeline shall act as an independent contractor and not as the agent of
Buyer. No subcontractor or other person or entity hired or engaged by Pipeline or any subcontractor thereof shall be an agent of
Buyer.

 

15.       Notification.
Pipeline shall be responsible for maintaining proper odorization levels for the gas sold and purchased hereunder and Buyer assumes
no obligation therefore. Pipeline, if necessary, shall install or cause to be installed, at Buyer’s expense of Seven Thousand
Dollars ($7,000), such odorizing devices, downstream of the Delivery Point as may be required to provide odorization compliant
with Railroad Commission rules and regulations. The installed odorizing devices will be owned by the Pipeline and will be attached
to and become a part of the Pipeline’s System.

 

16.       Conflict.
In the event of any conflict between these General Terms and the Natural Gas Service and Pipeline Agreement, the Natural Gas Service
and Pipeline Agreement shall be controlling.

 

17.       Entire
Agreement. The Natural Gas Service and Pipeline Agreement together with these General Terms supersede any and all other agreements,
either oral or written, between the parties hereto with respect to the subject matter hereof and contains all of the covenants
and agreements between the parties with respect to said matter.

 

    	 	9	 

    
EVO CNG/LDC Gas Service and Pipeline Agreement

    

 

EXHIBIT “A”

 

DELIVERY AND MEASUREMENT
POINT(S)

 

LDC, llc.

 

	Name	 	Meter Number	 	Meter Station Owned by Pipeline
	Enterprise Pipeline	 	Measurement Point	 	Yes
	EVO CNG Station Inlet Flange and Pipeline’s Outlet Valve	 	Delivery Point	 	N/A

 

 

 

10

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