Document:

EX-10.8

 Exhibit 10.8 

LOAN AND SECURITY AGREEMENT 

between 
 REDBACK COIL
TUBING LLC, 
 as Borrower, and 

STILLWATER NATIONAL BANK AND TRUST COMPANY, 

as Lender 

October 14, 2013 
 Redback –
Loan Agreement 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	Section 1.	  	 Definitions
	  	 	1	  
	 1.1
	  	 Defined Terms
	  	 	1	  
	 1.2
	  	 UCC Terms
	  	 	6	  
			
	 Section 2.
	  	 The Loans
	  	 	6	  
	 2.1
	  	 Term Loan
	  	 	6	  
	 2.2
	  	 Revolving Loans
	  	 	6	  
	 2.3
	  	 Notes
	  	 	6	  
	 2.4
	  	 Loan Purposes
	  	 	6	  
			
	 Section 3.
	  	 Interest
	  	 	6	  
			
	 Section 4.
	  	 Payment
	  	 	7	  
	 4.1
	  	 Payments of Obligations
	  	 	7	  
	 4.2
	  	 Manner of Payments
	  	 	7	  
	 4.3
	  	 Payment Authorization
	  	 	7	  
	 4.4
	  	 Voluntary Prepayment
	  	 	7	  
	 4.5
	  	 Mandatory Prepayments
	  	 	8	  
	 4.6
	  	 Fees
	  	 	8	  
			
	 Section 5.
	  	 Conditions Precedent
	  	 	8	  
	 5.1
	  	 Conditions to Initial Loans
	  	 	8	  
	 5.2
	  	 Conditions to Subsequent Revolving Loans
	  	 	10	  
	 5.3
	  	 Conditions to Term Loan Advance
	  	 	10	  
			
	 Section 6.
	  	 Collateral
	  	 	11	  
	 6.1
	  	 Grant of Security Interest
	  	 	11	  
	 6.2
	  	 Cross-Collateralization; Cross-Default
	  	 	11	  
	 6.3
	  	 No Assumption of Liability
	  	 	11	  
	 6.4
	  	 Agreements Regarding Accounts
	  	 	11	  
	 6.5
	  	 Further Assurances
	  	 	11	  
	 6.6
	  	 Payments on Accounts; Lockbox
	  	 	11	  
			
	 Section 7.
	  	 Representations and Warranties
	  	 	12	  
	 7.1
	  	 Legal Status
	  	 	12	  
	 7.2
	  	 Subsidiaries
	  	 	12	  
	 7.3
	  	 Authorization and Validity
	  	 	12	  
	 7.4
	  	 No Conflict
	  	 	13	  
	 7.5
	  	 No Consents
	  	 	13	  
	 7.6
	  	 Indebtedness
	  	 	13	  
	 7.7
	  	 Title to Properties
	  	 	13	  
	 7.8
	  	 Taxes
	  	 	13	  
	 7.9
	  	 Litigation
	  	 	13	  

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	 7.10
	  	 Compliance with Laws
	  	 	13	  
	 7.11
	  	 Compliance with Environmental Laws
	  	 	13	  
	 7.12
	  	 Locations of Collateral
	  	 	14	  
	 7.13
	  	 Financial Statements
	  	 	14	  
	 7.14
	  	 Liabilities
	  	 	14	  
	 7.15
	  	 Solvency
	  	 	14	  
	 7.16
	  	 Foreign Assets Control Regulations, Etc.
	  	 	14	  
	 7.17
	  	 Complete Disclosure
	  	 	14	  
			
	 Section 8.
	  	 Affirmative Covenants
	  	 	15	  
	 8.1
	  	 Payment of Indebtedness
	  	 	15	  
	 8.2
	  	 Existence
	  	 	15	  
	 8.3
	  	 Compliance with Laws; Licenses
	  	 	15	  
	 8.4
	  	 Taxes
	  	 	15	  
	 8.5
	  	 Collateral
	  	 	15	  
	 8.6
	  	 Inspection
	  	 	16	  
	 8.7
	  	 Insurance
	  	 	16	  
	 8.8
	  	 Reporting Obligations
	  	 	16	  
			
	 Section 9.
	  	 Negative Covenants
	  	 	17	  
	 9.1
	  	 Existence of Liens
	  	 	17	  
	 9.2
	  	 Restrictions on Debt
	  	 	17	  
	 9.3
	  	 Sale of Assets
	  	 	17	  
	 9.4
	  	 Changes in Structure
	  	 	17	  
	 9.5
	  	 Distributions
	  	 	18	  
	 9.6
	  	 Loans and Investments
	  	 	18	  
	 9.7
	  	 Subsidiaries
	  	 	18	  
	 9.8
	  	 Collection of Accounts
	  	 	18	  
			
	 Section 10.
	  	 Financial Covenants and Definitions
	  	 	18	  
	 10.1
	  	 Current Ratio
	  	 	18	  
	 10.2
	  	 Minimum Tangible Net Worth
	  	 	18	  
	 10.3
	  	 Funded Debt to EBITDA
	  	 	18	  
	 10.4
	  	 Financial Definitions
	  	 	18	  
			
	 Section 11.
	  	 Events of Default
	  	 	19	  
	 11.1
	  	 Non-Payment of Loans
	  	 	19	  
	 11.2
	  	 Breach of Financial Covenant
	  	 	19	  
	 11.3
	  	 Breach of Covenant
	  	 	19	  
	 11.4
	  	 Breach of Representation or Warranty
	  	 	19	  
	 11.5
	  	 Change in Control
	  	 	19	  
	 11.6
	  	 Destruction of Collateral
	  	 	19	  
	 11.7
	  	 Insolvency
	  	 	19	  
	 11.8
	  	 Dissolution
	  	 	20	  
	 11.9
	  	 Levy Judgment
	  	 	20	  
	 11.10
	  	 Cross-Default
	  	 	20	  
	 11.11
	  	 Failure of Perfection
	  	 	20	  

  
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	 Section 12.
	  	 Remedies
	  	 	20	  
			
	 Section 13.
	  	 License
	  	 	21	  
			
	 Section 14.
	  	 Miscellaneous
	  	 	21	  
	 14.1
	  	 Failure or Indulgence Not Waiver
	  	 	21	  
	 14.2
	  	 Modification
	  	 	21	  
	 14.3
	  	 USA PATRIOT Act
	  	 	21	  
	 14.4
	  	 Indemnification
	  	 	21	  
	 14.5
	  	 Notices
	  	 	22	  
	 14.6
	  	 Severability
	  	 	22	  
	 14.7
	  	 Construction
	  	 	22	  
	 14.8
	  	 Applicable Law
	  	 	22	  
	 14.9
	  	 Assignability
	  	 	22	  
	 14.10
	  	 Participations
	  	 	23	  
	 14.11
	  	 Counterparts
	  	 	23	  
	 14.12
	  	 Further Assurances
	  	 	23	  
	 14.13
	  	 Attorneys’ Fees
	  	 	23	  
	 14.14
	  	 Usury
	  	 	23	  
	 14.15
	  	 Integration
	  	 	23	  
	 14.16
	  	 Time
	  	 	24	  
	 14.17
	  	 VENUE
	  	 	24	  
	 14.18
	  	 WAIVER OF JURY TRIAL
	  	 	24	  

  

			
	Exhibit A:	  	Form of Borrowing Base Certificate
	Exhibit B:	  	Form of Revolving Note
	Exhibit C:	  	Form of Term Note
	Exhibit D:	  	Form of Request for Revolving Loan Advance
	Exhibit E:	  	Form of Request for Term Loan Advance
	Exhibit F:	  	Form of Compliance Certificate
		
	Schedule 7.12:	  	Locations of Collateral

  
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 LOAN AND SECURITY AGREEMENT 

THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) is made as of October 14, 2013, between Redback Coil Tubing LLC, a Delaware
limited liability company (“Borrower”), and the Stillwater National Bank and Trust Company (“Lender”). 
 PRELIMINARY
STATEMENTS 
 A. Borrower has requested that Lender grant to Borrower the credit accommodations set forth in this Agreement. 

B. Lender has agreed to grant such credit accommodations, subject to the terms and conditions set forth in this Agreement. 

AGREEMENT 
 In
consideration of the mutual covenants and agreements in this Agreement, and intending to be legally bound hereby, Lender and Borrower agree as follows: 

Section 1. Definitions. 

1.1 Defined Terms. Capitalized terms used in this Agreement (including all schedules and exhibits to this Agreement) and not otherwise
defined have the meanings set forth in this Section 1. 
 “Applicable Rate” means, for each day, the interest rate (or, if
greater, the minimum rate) set forth below for the ratio of Funded Debt to EBITDA as calculated in the most recent certificate delivered to Lender pursuant to Section 8.8(f). For the purpose of this definition, the “Prime Rate” is the
rate published in the “Bonds, Rates & Yields” section of The Wall Street Journal on such day (or, if not published on such day, the first prior day on which such rate was published). 

 

							
	 Funded Debt to EBITDA
	  	 Interest Rate
	  	Minimum Rate	 
	 <3.00:1:00
	  	Prime Rate	  	 	4.45	% 
	 33.00:1.00 and £4.00:1.00
	  	Prime Rate plus 0.50%	  	 	4.95	% 
	 >4.00:1:00
	  	Prime Rate plus 1.00%	  	 	5.45	% 

 “Availability” is defined in Section 2.2. 

“Borrower” is defined in the preamble to this Agreement. 

“Borrowing Base” means, on any date of determination, an amount equal to 80% of the aggregate amount of Eligible Accounts at such
date. 
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 “Borrowing Base Certificate” means a certificate in the form of Exhibit A to
this Agreement setting forth in reasonable detail the calculation of the Borrowing Base. 
 “Business Day” means any day other
than a Saturday, Sunday, or a federal or state holiday or other day on which Lender or commercial banks in Oklahoma are customarily closed or are required to close under federal laws or the laws of the State of Oklahoma. 

“Change in Control” means any event, transaction or series of transactions, whereby (a) at least 80% on a fully diluted basis
of the economic and voting interest in Borrower cease to be owned and controlled, directly or indirectly, by Wexford Capital LP or one or more of its affiliates, (b) the majority of the seats on the board of directors (or similar governing
body) of Borrower ceases to be occupied by persons who were members of the board of directors on the Closing Date, or (c) all or substantially all of the assets of Borrower are sold, leased or otherwise transferred. 

“Closing Date” is defined in Section 5.1. 

“Collateral” means all of Borrower’s Equipment, Inventory, Accounts, Chattel Paper, General Intangibles, Goods, Documents,
Fixtures, Deposit Accounts, Instruments, Investment Property, Letter of Credit Rights, Software, Commercial Tort Claims1, money, and all other property of Borrower pledged as security for the
Obligations in any Loan Document, in each case, whether owned now or acquired after the date of this Agreement, and including all proceeds thereof, all substitutions therefor, and all books and records related thereto. 

“Collateral Access Agreement” means an agreement, in form and substance satisfactory to Lender, of any lessor of a premises where
any of the Collateral is located by which the lessor agrees (a) to waive or subordinate any lien it may have on the Collateral, (b) to permit Lender to enter on the premises to inspect, store, sell or remove the Collateral, and (c) at
the option of Lender, to occupy the premises and continue operation of Borrower’s business. 
 “Debt Service” is defined in
Section 10. 
 “Debt Service Coverage Ratio” is defined in Section 10. 

“EBITDA” is defined in Section 10. 

“Eligible Account” means an Account owing to Borrower that meets, and continues to meet, each of the following requirements: 

(a) It arises in the ordinary course of business from the final, bona fide sale of goods or the rendering of services that have been fully
performed by Borrower. 
 (b) It is owned solely by Borrower and is subject to a perfected, first priority lien in favor of Lender. 

 

	1 	Commercial Tort Claims must be described with specificity for a security interest to attach. If Borrower has any Commercial Tort Claims reference should be made to a schedule that describes each one. 

  
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 (c) It is the valid, legally enforceable and unconditional obligation of the account debtor and
is not subject to the fulfillment of any condition or to any counterclaim, offset, credit, allowance, discount, rebate or any other adjustment. 

(d) There is no bankruptcy, insolvency or liquidation proceeding pending by or against the account debtor or any of its affiliates. 

(e) The account debtor is a resident or citizen of, and is located within, the United States of America and the Account is denominated in
United States Dollars. 
 (f) The account debtor is not the United States of America or any state or local government, or any department,
agency or instrumentality thereof. 
 (g) It is evidenced by an invoice or signed field ticket delivered to the account debtor and is not
more than 90 days past the original invoice date or the date of the signed field ticket, as applicable. 
 (h) It is not an Account owing
by an account debtor, more than 10% of whose Accounts owing to Borrower are ineligible because they are more than 90 days past the original invoice date. 

(i) It is not an Account owing by an affiliate, officer, director or employee of Borrower. For the purposes of this clause (i),
“affiliate” shall exclude any Person that is affiliate solely as a result of being controlled, directly or indirectly, by Wexford Capital, L.P., provided that no entity or individual serves as an executive officer or in an equivalent
management capacity (as determined by Lender in its sole discretion) for both of Borrower and such Person. 
 (j) Unless the account debtor
is specified in paragraph (k) of this definition or as otherwise may be approved in writing by Lender, it is not an Account where the aggregate amount of all Accounts owing by the account debtor exceed 25% of all Eligible Accounts; provided,
however, that only those Accounts in excess of 25% of all Eligible Accounts shall be ineligible pursuant to this clause. 
 (k) If it is an
Account for which the account debtor is Apache Corporation, or any entity controlled by, controlling or under common control with any such Person, it is not an Account where the aggregate amount of all Accounts owing by such account debtor exceed
(i) for any calendar month through and including the month ending June 30, 2014, 50% of all Eligible Accounts, (ii) for the calendar month ending July 31, 2014 through and including the calendar month ending September 30,
2014, 35% of all Eligible Accounts, and (iii) for each calendar month thereafter, 25% of all Eligible Accounts, provided however, that only those Accounts in excess of the applicable percentage shall be ineligible pursuant to this clause. 

(l) It is not an Account that has been declared ineligible in the good faith credit judgment of Lender. 

“Environmental Laws” means all laws, rules, regulations and orders of any governmental authority relating to public health (but
excluding occupational safety and health) or the 

  
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protection or pollution of the environment, including the Comprehensive Environmental Response Compensation and Liability Act, the Clean Water Act, and the Resource Conservation and Recovery Act.

 “Funded Debt” is defined in Section 10.4. 

“GAAP” means generally accepted accounting principles in effect in the United States from time to time. 

“Indebtedness” means (a) all items that would be included as liabilities on a balance sheet in accordance with GAAP, including
capital leases, but excluding payroll and trade payables (including, but not limited to audit bills, general supplies, or similar expenses) incurred and being paid in the ordinary course of business, (b) all contingent obligations and
(c) all reimbursement obligations in connection with letters of credit issued. 
 “Loans” means the Term Loan and the
Revolving Loans, collectively. 
 “Loan Documents” means this Agreement, the Notes, all financing statements perfecting a security
interest under the Uniform Commercial Code, each other agreement, document or instrument executed pursuant to any of the foregoing, and all renewals and extensions of, or amendments or supplements to, or restatements of, any of the foregoing from
time to time in effect. 
 “Lock box” means Post Office Box 25887, Oklahoma City, Oklahoma 73125, or any successor to such Post
Office Box that is designated by Borrower and Lender as the “Lockbox” hereunder, and which is designated by Borrower on invoices as the point of remittance for all payments on Accounts. 

“Material Adverse Effect” means any set of circumstances or events that (a) would have any material adverse effect upon the
validity or enforceability of any of the Loan Documents, (b) is or could reasonably be expected to become material and adverse to the business condition or prospects (financial or otherwise), assets, properties, or operations of Borrower,
(c) could reasonably be expected to materially impair the ability of Borrower to fulfill its obligations under the Loan Documents, or (d) causes an Event of Default or an event that with the giving of notice or passage of time, or both,
would constitute an Event of Default. 
 “Notes” means the Term Note and the Revolving Note. 

“Obligations” means all obligations, liabilities and indebtedness (monetary or otherwise, including post-petition and default
interest, whether allowed or not) of Borrower arising under this Agreement or any other Loan Document and all other obligations of Borrower to Lender of any nature whatsoever, including, without limitation, for principal, interest, fees, costs,
expenses, indemnification, and legal fees, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising. 

“Operating Account” means deposit account number 3000580 maintained by Borrower with Lender, or any successor to such account that
is designated as the “Operating Account” hereunder by Borrower and Lender. 

  
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 “Permitted Indebtedness” means the Obligations and each of the following: 

(a) trade payables arising in the ordinary course of business; and 

(b) contingent obligations (i) arising from endorsements of payment items for collection or deposit in the ordinary course of business
or (ii) incurred in the ordinary course of business with respect to surety, appeal or performance bonds or other similar obligations; and 

(c) unsecured Indebtedness or Indebtedness secured by equipment purchased from the proceeds of such Indebtedness in an aggregate amount not
exceeding $300,000.00 outstanding at any time without Lender’s prior written consent. 
 “Permitted Liens” means liens in
favor of Lender and each of the following: 
 (a) liens for taxes not yet due and payable, or which are being diligently contested in good
faith by proper proceedings; 
 (b) mechanics, warehouseman’s, and other similar liens arising in the ordinary course of business for
obligations not yet due and payable; 
 (c) easements, rights-of-way, restrictions, covenants and other agreements with respect to real
property that do not secure any monetary obligation and do not materially interfere with Borrower’s business; 
 (d) normal and
customary rights of setoff upon deposits in favor of depository institutions, and liens of a collecting bank on payment items in the course of collection; 

(e) liens securing Indebtedness permitted by clause (c) of the definition of “Permitted Indebtedness.” 

“Person” means, whether or not capitalized, any individual, partnership, corporation, business trust, joint stock company, trust,
unincorporated association, joint venture, limited liability company, governmental authority or other entity of any nature. 

“Revolving Loans” is defined in Section 2.2. 

“Revolving Loan Maturity Date” means October 9, 2014. 

“Revolving Note” means a promissory note in the form of Exhibit B evidencing the Revolving Loans. 

“Solvent” means, with respect to Borrower, that (a) the present fair salable value of the assets of Borrower is not less than
the amount that will be required to pay all of Borrower’s debts (including contingent, unmatured and unliquidated liabilities), (b) Borrower is able to pay (and is actually paying) all of its debts as they mature, (c) Borrower will
not have an unreasonably small capital in relation to its business or with respect to any contemplated transaction and (d)

  
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Borrower has not incurred (by way of assumption or otherwise) any obligations or liabilities (contingent or otherwise) under any of the Loan Documents, or made any conveyance in connection with
the Loan Documents, with actual intent to hinder, delay or defraud either present or future creditors of Borrower. 
 “Term Loan”
is defined in Section 2.1. 
 “Term Loan Maturity Date” means October 14, 2017. 

“Term Note” means a promissory note in the form of Exhibit C evidencing the Term Loan. 

“UCC” means the Uniform Commercial Code, as amended and in effect in the State of Oklahoma. 

1.2 UCC Terms. The following capitalized terms shall have the meanings set forth in the UCC: Equipment, Inventory, Accounts, Chattel
Paper, General Intangibles, Goods, Documents, Fixtures, Deposit Accounts, Instruments, Investment Property, Letter-of-credit Rights, Software, and Commercial Tort Claims. 

Section 2. The Loans. 

2.1 Term Loan. Subject to the terms and conditions of this Agreement, Lender agrees to make an advancing term loan to Borrower in the
original principal amount of up to $8,000,000 (the “Term Loan”). Principal amounts of the Term Loan that are repaid may not be reborrowed. 

2.2 Revolving Loans. Subject to the terms and conditions of this Agreement, Lender agrees to make one or more revolving loans (the
“Revolving Loans”) to Borrower in an aggregate amount not to exceed the lesser of (a) the Borrowing Base in effect from time to time or (b) $3,000,000 (the “Availability”). The Revolving Loans may be repaid and
reborrowed as set forth in this Agreement. 
 2.3 Notes. The Term Loan shall be evidenced by the Term Note. The Revolving Loans shall
be evidenced by the Revolving Note. 
 2.4 Loan Purposes. Proceeds of the Term Loan shall be used for the purchase of equipment.
Proceeds of the Revolving Loans shall be used for general working capital purposes and to refinance existing indebtedness of Borrower on the Closing Date. 

Section 3. Interest. 

3.1 Subject to Sections 3.2, 3.3, and 14.14, the unpaid principal of the Loans shall bear interest at the Applicable Rate in effect from time
to time. 
 3.2 Subject to Sections 3.3 and 14.14, upon the occurrence and during the continuance of an Event of Default, the unpaid
principal of the Loans shall bear interest at the rate of 15% per annum. 

  
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 3.3 Interest shall be computed for the actual number of days elapsed on the basis of a year of
360 days. 
 Section 4. Payment. 

4.1 Payments of Obligations. 

(a) Term Loan. 
 (i)
Interest-Only Payments. Commencing on November 14, 2013, and on the 14th day of each month thereafter, through and including
June 14th, 2014, Borrower shall make monthly payments of all accrued and unpaid interest on the Term Loan. 

(ii) Principal and Interest Payments. Commencing on July 14, 2014 (the “Amortization Start Date”), and on the 14th day of each month thereafter, Borrower shall make monthly payments of principal and interest (the “Amortizing Payments”) on the Term Loan. Amortizing Payments shall be in a fixed amount
for each year, commencing on the Amortization Start Date and on each anniversary thereof (each a “Payment Reset Date’’), based on a 40-month amortization (commencing on the Amortization Start Date) of the projected principal balance
of the Term Loan on the Payment Reset Date at the Applicable Rate, in each case, as determined on the date that is 45 days prior to the Payment Reset Date (or, if such date is not a Business Day, the next succeeding Business Day). Amortizing
Payments shall be applied first to accrued and unpaid interest, and then to outstanding principal. A final payment of all outstanding Obligations owing with respect to the Term Loan shall be due and payable on the Term Loan Maturity Date. 

(b) Revolving Loans. Commencing on November 14, 2013, and on the 14th of
each month thereafter, Borrower shall make payments of accrued and unpaid interest with respect to the Revolving Loans. A final payment of all outstanding Obligations owing with respect to the Revolving Loans shall be due and payable on the
Revolving Loan Maturity Date. 
 (c) Other Obligations. All other Obligations owing from Borrower to Lender from time to time
pursuant to the Loan Documents shall be payable on demand, but in any event shall be due and payable on the Maturity Date. 
 4.2 Manner
of Payments. All payments of Obligations shall be made in United States Dollars, without offset, counterclaim or defense of any kind, free and clear of (and without any deduction for) taxes, in immediately available funds at the office specified
by Lender not later than 12:00 p.m., Oklahoma City, Oklahoma time on the date due. Funds received after such hour shall be deemed to have been received on the following Business Day. 

4.3 Payment Authorization. In the event a payment is late or an Event of Default occurs, Borrower authorizes Lender, in its sole
discretion, to charge any of Borrower’s accounts to make any payments of principal and interest. 
 4.4 Voluntary Prepayment.
Borrower may prepay to the Lender the Obligations at any time without penalty. 

  
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 4.5 Mandatory Prepayments. 

(a) Asset Sale. On any date on which Borrower receives proceeds from any sale of any of the Collateral (other than inventory in the
ordinary course of business), Borrower shall apply an amount equal to 100% of such proceeds to the prepayment of the Obligations. This Section 4.5(a) shall not be construed to permit any sale of Collateral not otherwise permitted by this
Agreement. 
 (b) Casualty Events. Not later than three Business Days following the receipt by Borrower of the proceeds of
insurance, any condemnation award, or other compensation in respect of any loss or damage to, or any condemnation or other taking of property, Borrower shall apply an amount equal to 100% of such proceeds, net of reasonable and customary costs
associated with the recovery of such proceeds, to the prepayment of the Loans. Notwithstanding the foregoing, if the proceeds of any loss or condemnation are less than $1,000,000, Borrower may request the insurance proceeds, condemnation award or
other compensation be placed in a restricted account and used by Borrower to repair or replace the applicable property. 
 (c)
Appraisal. If the equipment to be purchased from the proceeds of a Term Loan advance is used equipment, within 60 days following such advance, Borrower shall provide Lender with an appraisal of such equipment prepared by a reputable appraisal
firm reasonably acceptable to Lender. If the amount of the advance exceeded 80% of the appraised value of the equipment, Borrower shall promptly prepay the Term Loan in an amount equal to such excess. 

(d) Overadvance. If the aggregate principal balance of the Revolving Loans exceeds the Availability, Borrower shall prepay the
Revolving Loans in the amount of the excess not later than the first Business Day following Borrower’s knowledge of the excess. 
 4.6
Fees. 
 (a) Origination Fee. On the Closing Date, Borrower shall pay to Lender an origination fee in the amount of $55,000.

 (b) Late Fees. If Borrower makes any payment of the Obligations more than 10 days past the due date for such payment, Borrower
shall pay a late fee in the amount equal to the lesser of (i) 10% of the amount of the unpaid Obligations or (ii) $500.00; provided that the late fee shall not be less than $50.00. Payment of the late fee shall not cure the Event of
Default resulting from any late payment of the Obligations. 
 Section 5. Conditions Precedent. 

5.1 Conditions to Initial Loans. Lender shall not be obligated to make any Loans until the date (the “Closing Date”) on which
the following conditions have been satisfied or waived by Lender: 
 (a) No Event of Default. No Event of Default shall exist or
result from the making of the Loans, and no event shall have occurred, or shall occur with the making of the Loans, that with the giving of notice or passage of time, or both, would constitute an Event of Default. 

  
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 (b) Representations and Warranties. The representations and warranties in this Agreement
shall be true and accurate as of the Closing Date. 
 (c) Documents. The Loan Documents shall be duly authorized, executed, and
delivered to Lender. 
 (d) Collateral Access Agreement. Lender shall have received a Collateral Access Agreement with respect to
its Elk City, Oklahoma and Yukon, Oklahoma locations and each other location that is not owned by Borrower where any material item of tangible Collateral is located or is anticipated to be located. 

(e) Certificates of Insurance. Lender shall have received the certificates of insurance referred to in Section 8.7. 

(f) Financing Statement. A UCC-1 financing statement naming Borrower as debtor and Lender as secured party shall be properly filed
with the Secretary of State of the State of Delaware, and Borrower shall have provided to Lender such evidence as Lender may require to evidence the first priority of Lender’s security interest. 

(g) Certificate of Title. Lender shall have recorded its lien on the certificate of title of each item of Equipment subject to a
certificate of title. 
 (h) Equipment Inventory. Lender shall have received an inventory of all of Borrower’s Equipment. 

(i) Secretary’s Certificate. Lender shall have received a certificate of the secretary, manager or other responsible officer of
Borrower certifying (i) copies of Borrower’s organizational documents, (ii) copies of resolutions of the members or managers, as applicable, of Borrower authorizing the transactions contemplated in this Agreement and the other Loan
Documents, and (iii) the title, name and signature of each person authorized to sign the Loan Documents on behalf of Borrower. 
 (j)
Certificate of Good Standing. Lender shall have received a certificate of the Secretary of State of the State of Delaware certifying the existence and good standing of Borrower in the State of Delaware. 

(k) [Reserved] 
 (1) Fees
and Expenses. Borrower shall have paid all fees and expenses required by the Loan Documents to be paid by Borrower, which shall include Lender’s expenses incurred in preparation and negotiation of this Agreement and the other Loan
Documents, including Lender’s legal fees. This condition shall be deemed satisfied by Borrower’s payment of all fees and expenses set forth on a fee schedule to be delivered by Lender to Borrower prior to the Closing Date. 

  
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 (m) Anti-Money Laundering. Lender shall have received all documentation and information
required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the United States PATRIOT Act. 

(n) Other Documents. Lender shall have received such other agreements, documents, instruments and certificates as it may reasonably
request. 
 5.2 Conditions to Subsequent Revolving Loans. Lender shall not be required to make any subsequent Revolving Loan unless
the following conditions are satisfied: 
 (a) No Event of Default. No Event of Default shall exist or result from the making of the
Revolving Loan and no event shall have occurred, or occur with the making of the Revolving Loan, that with the giving of notice or passage of time, or both, would constitute an Event of Default. 

(b) Representations and Warranties. The representations and warranties in this Agreement shall be true and accurate as of the date of
the Revolving Loans. 
 (c) Request for Advance; Borrowing Base Certificate. Not later than two Business Days prior to the date of
the Revolving Loan, Lender shall have received (i) a duly executed request for the Revolving Loan in the form of Exhibit D to this Agreement and (ii) a duly executed Borrowing Base Certificate. 

(d) Other Documents. Lender shall have received such other agreements, documents, instruments and certificates as it may reasonably
request. 
 (e) Material Adverse Effect. No event shall have occurred or circumstance exist that has or could reasonably be expected
to have a Material Adverse Effect. 
 (f) No Overadvance. After the making of such Revolving Loan, the aggregate principal amount of
all Revolving Loans shall not exceed the Availability. 
 5.3 Conditions to Term Loan Advance. Lender shall not be required to make
any advance with respect to the Term Loan unless the following conditions are satisfied: 
 (a) No Event of Default. No Event of
Default shall exist or result from the making of the Loan and no event shall have occurred, or occur with the making of the advance, that with the giving of notice or passage of time, or both, would constitute an Event of Default. 

(b) Representations and Warranties. The representations and warranties in this Agreement shall be true and accurate as of the date of
the advance. 
 (c) Request for Advance. Not later than two Business Days prior to the date of the advance, Lender shall have
received a duly executed request for the advance in the form of Exhibit E to this Agreement and attached invoices (or such other documentation as Lender may reasonably require) for the equipment to be purchased from the proceeds of the
advance. 

  
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 (d) [Reserved]. 

(e) Advance Rate. The advance shall be in an amount not exceeding: (i) if the Debt Service Coverage Ratio is less than 1.20:1.00,
80% of the invoiced amount for equipment to be purchased from the proceeds of such advance or (ii) if the Debt Service Coverage Ratio is greater than 1.20:1.00, 100% of such amount. 

(f) Perfection. If any equipment to be purchased from the proceeds of the advance are subject to a certificate of title, Lender, in
its sole discretion, shall have recorded its lien on such certificate of title. 
 (g) Other Documents. Lender shall have received
such other agreements, documents, instruments and certificates as it may reasonably request. 
 (h) Material Adverse Effect. No
event shall have occurred or circumstance exist that has or could reasonably be expected to have a Material Adverse Effect. 

Section 6. Collateral. 

6.1 Grant of Security Interest. To secure the prompt payment and performance of all Obligations, Borrower hereby grants to Lender a
lien and continuing security interest in all of the Collateral. 
 6.2 Cross-Collateralization; Cross-Default. The Loans are
cross-collateralized and cross-defaulted. 
 6.3 No Assumption of Liability. The security interest granted by this Agreement is given
as security only and shall not subject Lender to, or in any way modify, any obligation or liability of Borrower relating to any of the Collateral. 

6.4 Agreements Regarding Accounts. At any time, regardless of the existence of a default and without notice to Borrower, Lender may
give notice to any or all account debtors of the assignment of Borrower’s Accounts to Lender and require that the Accounts be paid directly to Lender whether or not the amounts owed to the Borrower by the account debtors so notified exceed the
amount of the Obligations. 
 6.5 Further Assurances. Promptly upon request, Borrower shall deliver such instruments, assignments,
title certificates or other documents or agreements, and shall take such actions as Lender deems appropriate to evidence or perfect its lien and security interests in any of the Collateral, or otherwise to give effect to the intent of this
Agreement. 
 6.6 Payments on Accounts; Lockbox. 

(a) Payments on Accounts. Within 30 days of the Closing Date, Borrower will direct all of its account debtors (other than those
account debtors that have already received invoices, solely with respect to such invoices) to remit payments with respect to Accounts to the Lockbox. 

  
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 (b) Invoices. Within 30 days of the closing date, all of Borrower’s invoices will
include the Lockbox address with instructions to remit payments to the Lockbox. Borrower will not revoke or alter such instructions without Lender’s prior written consent. 

(c) Payments Received at Offices. All payments on Accounts received at the offices of Borrower shall be promptly, but in any event
within two Business Days, remitted to the Lockbox. 
 (d) Processing. 

(i) Daily Processing. On each day, Lender shall (and is hereby authorized by Borrower to) open and process all mail received in the
Lock box. 
 (ii) Improper or Returned Items. Any instrument processed by Lender pursuant to this Agreement that is improper or
otherwise appears to Lender to not be payable in a proper manner will be forwarded to Borrower and not processed as described above. 

(iii) Notation of Items. Any instrument noticed by Lender to contain a notation that it is tendered as full payment of all obligations
due to the Borrower from the maker shall be deposited (and Lender is hereby directed by Borrower to deposit such instrument) into the Operating Account. Borrower agrees that receipt of a copy of any instrument containing any such notation is
sufficient notification thereof. 
 Section 7. Representations and Warranties. Borrower represents and warrants to Lender as
follows: 
 7.1 Legal Status. Borrower is a limited liability company duly formed and existing in good standing under the laws of the
State of Delaware. Borrower is qualified or licensed to do business, and is in good standing as a foreign limited liability company in Oklahoma and each of the jurisdictions in which the failure to so qualify or to be so licensed would reasonably be
expected to have a Material Adverse Effect. 
 7.2 Subsidiaries. Borrower does not own any voting or economic interests in any other
Person. 
 7.3 Authorization and Validity. The execution, delivery and performance of the Loan Documents have been duly authorized by
all necessary organizational action. Each Loan Document is an enforceable obligation of Borrower in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally. 

  
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 7.4 No Conflict. The execution, delivery, and performance by Borrower of this Agreement
and the other Loan Documents do not and will not: 
 (a) conflict with the terms of the certificate of formation or limited liability
company agreement of Borrower; 
 (b) violate any provision of any judgment, decree, or order of any court or governmental authority by
which Borrower is bound, or any provision of any law or regulation applicable to Borrower; 
 (c) result in a breach of, or constitute a
default under, any contract, obligation, indenture, or other instrument to which Borrower is a party or by which Borrower may be bound, except where such breach of or default under would not reasonably be expected to have a Material Adverse Effect;
or 
 (d) result in or require the imposition of any lien or encumbrance on any of Borrower’s property. 

7.5 No Consents. The execution, delivery, and performance by Borrower of this Agreement do not and will not require any authorization,
approval, or other action by, or notice to or filing with, any governmental authority, regulatory body, or any other Person. 
 7.6
Indebtedness. Borrower has no outstanding Indebtedness, except Permitted Indebtedness. 
 7.7 Title to Properties. Borrower
has, as applicable, good, marketable and indefeasible title to (or valid leasehold interests in) all of its material real and personal property free and clear of all liens, charges, security interests and other encumbrances, except Permitted Liens.

 7. 8 Taxes. Borrower has filed all federal, state and local tax returns and other reports that Borrower is required by law to
file, and has paid, or made provision for the payment of, all taxes upon it, its income and its properties that are due and payable, except to the extent (a) being contested diligently and in good faith by proper proceedings, (b) that
would not have a Material Adverse Effect if such proceedings were to be adversely determined and (c) that Borrower has delivered written notice thereof to Lender. 

7.9 Litigation. There are no suits, proceedings, claims, or disputes pending or, to the knowledge of Borrower, threatened against or
affecting Borrower or any of Borrower’s assets or properties that (a) relate to any of the Loan Documents or the transactions contemplated thereby or (b) if adversely determined, could reasonably be expected to have a Material Adverse
Effect. 
 7.10 Compliance with Laws. Borrower is in compliance in all material respects with all laws and regulations applicable to
Borrower, its business and its properties. 
 7.11 Compliance with Environmental Laws. None of Borrower’s past or present
operations or properties is subject to any federal, state or local investigation to determine whether any remedial action is needed to address any environmental pollution, hazardous material or environmental clean-up. Borrower has not received any
notice of any possible noncompliance with, investigation of a possible violation of, litigation relating to, or potential fine or liability under any Environmental Law, or with respect to any release, environmental pollution or hazardous materials.

  
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 7.12 Locations of Collateral. Schedule 7.12 sets forth an accurate and complete list of
each location where any material items of tangible Collateral are stored. 
 7.13 Financial Statements. The most recent balance sheet
of Borrower and the related financial statements provided to Lender are materially complete and correct and fairly present the financial condition of Borrower as at the dates thereof in accordance with GAAP. Since December 31, 2012, no events
have occurred that alone or together with other events have had or would reasonably be expected to have a Material Adverse Effect. 
 7.14
Liabilities. Borrower has no material liabilities, fixed or contingent, that are not reflected in the financial statements delivered to Lender or that have not otherwise been disclosed in writing to Lender. 

7.15 Solvency. Borrower is Solvent. 

7.16 Foreign Assets Control Regulations, Etc. 

(a) Neither the receipt by Borrower of the proceeds of the Loans nor Borrower’s use of the proceeds of the Loans will violate the
Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. 

(b) The Borrower (i) is not a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the
Office of Foreign Assets Control or in Section 1 of the Executive Order No. 13,244 of September 24, 2011 and (ii) does not engage in any dealings or transactions with any such Person. Borrower is compliance, in all material
respects, with the USA PATRIOT Act. 
 (c) No part of the proceeds of the Loans will be used, directly or indirectly, for any payments to
any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to Borrower. 

7.17 Complete Disclosure. No Loan Document contains any untrue statement of a material fact or fails to disclose any material fact.
Borrower has not failed to disclose to Lender in writing any fact or circumstance that could reasonably be anticipated to have a Material Adverse Effect. 

  
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 Section 8. Affirmative Covenants. Until all Obligations have been satisfied in full,
Borrower shall comply with the following covenants: 
 8.1 Payment of Indebtedness. Borrower shall promptly pay all of its
Indebtedness as it becomes due, except to the extent that any such Indebtedness (other than the Obligations) is being contested diligently and in good faith and for which reserves or other provisions (if any) required by GAAP shall have been made.

 8.2 Existence. Borrower shall do or cause to be done all things necessary to preserve, renew, and keep in full force and effect
its existence and comply with the provisions of its organizational documents. 
 8.3 Compliance with Laws; Licenses. Borrower shall
comply in all material respects with all laws, rules, regulations and orders applicable to Borrower, its business or its properties. Borrower shall maintain all licenses, permits, governmental approvals, rights, privileges, and franchises necessary
for the conduct of its business. 
 8.4 Taxes. Borrower shall pay when due all federal, state and local taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or upon any of its properties, except, to the extent contested diligently and in good faith by proper proceedings that stay the imposition of any penalty, fine or lien
resulting from the nonpayment thereof and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP. 

8.5 Collateral. 
 (a)
Location of Collateral. Except for items of Collateral that are in transit or located at a project site, Borrower shall maintain all material items of Collateral at a location that is either owned by Borrower or leased by Borrower and subject
to a Collateral Access Agreement. 
 (b) Records with Respect to Collateral. Borrower shall keep accurate and complete records of
the Collateral, including acquisitions and dispositions of Collateral, and shall submit the records to Lender upon request. 
 (c)
Defense of Title to Collateral. Borrower shall, at all times, defend Borrower’s title to the Collateral and the lien of Lender in the Collateral against all Persons, claims and demands. 

(d) Disposition of Collateral. Except for the sale of inventory in the ordinary course of business, Borrower shall not sell, lease or
otherwise dispose of any Collateral without the prior written consent of Lender, other than replacement of Collateral that is worn, damaged or obsolete with items of like function and value, if the replacement Collateral is acquired substantially
contemporaneously with such disposition and is free of liens. 
 (e) Condition of Collateral. Borrower shall maintain all Collateral
in good operating condition and repair, and make all necessary replacements and repairs so that the value and operating efficiency of the Collateral shall be preserved at all times, reasonable wear and tear excepted. Borrower shall keep all
Collateral from being affixed to any real property. 

  
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 (f) Deposit Accounts. Borrower shall maintain all of its Deposit Accounts with Lender.

 8.6 Inspection. Borrower shall permit Lender from time to time, subject (except where a default exists) to reasonable notice, to
visit and inspect the Collateral and the other properties and operations of Borrower, inspect and audit Borrower’s books and records, and discuss Borrower’s business, assets, prospects and results of operations with its officers,
employees, agents, accountants and advisors. Borrower will reimburse Lender for all its reasonable charges, costs and expenses incurred in connection with any of the foregoing. 

8.7 Insurance. Borrower shall maintain and keep in force the insurance policies reasonably required by Lender from time to time. The
insurance policies of Borrower shall contain an endorsement, in form and substance satisfactory to Lender, describing Lender as additional insured or loss payees, as applicable, and providing that the insurance company shall give Lender 30 days
prior written notice (10 days in the event of cancellation for non-payment of premiums) before such policies are altered, canceled or expired. 

8.8 Reporting Obligations. 

(a) Monthly Reports. Within 30 days after the close of each calendar month, Borrower shall provide to Lender an unaudited balance
sheet of Borrower and the related statements of income and shareholders’ equity for such month, together with a certification by Borrower’s responsible financial officer that such financial statements are complete and correct, present the
financial conditions at the end of such period and the results of its operation during such period in accordance with GAAP, consistently applied, and certifying, in a form satisfactory to Lender, that Borrower has not been and is not then in default
as to any of the covenants contained in this Agreement or any of the Loan Documents and that there was no known Event of Default (or specifying those Events of Default of which he or she is aware). 

(b) Quarterly Reports. Within 60 days after the close of each fiscal quarter of Borrower, Borrower shall provide to Lender an
unaudited balance sheet of Borrower and the related statements of income and shareholders’ equity for such fiscal quarter, together with a certification by Borrower’s responsible financial officer that such financial statements are
complete and correct, present the financial conditions at the end of such period and the results of its operation during such period in accordance with GAAP, consistently applied, and certifying, in a form satisfactory to Lender, that Borrower has
not been and is not then in default as to any of the covenants contained in this Agreement or any of the Loan Documents and there was no known Event of Default (or specifying those Events of Default of which he or she is aware). 

(c) Annual Reports. Within 120 days after the close of each fiscal year of Borrower, Borrower shall provide to Lender an audited
balance sheet of Borrower and the related statements of income and shareholders’ equity for such fiscal year, together with a certification by Borrower’s responsible financial officer that such financial statements are complete and
correct, present the financial conditions at the end of such period and the results of its operation during such period in accordance with GAAP, consistently applied, and certifying, in a form satisfactory to Lender, that Borrower has not been and
is not then in default as to any of the covenants contained in this Agreement or any of the Loan Documents and there was no known Event of Default (or specifying those Events of Default of which he or she is aware). 

  
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 (d) Tax Returns. Within 10 days of the filing of each of Borrower’s annual state or
federal tax returns, Borrower shall provide to Lender a true and correct copy of such tax return. 
 (e) Borrowing Base Certificate.
Not later than the 30th day of each calendar month, Borrower shall deliver to Lender a Borrowing Base certificate calculating the Borrowing Base as at the end of the immediately preceding calendar
month. 
 (f) Compliance Certificate. Together with each quarterly report delivered pursuant to Section 8.8(b), Borrower shall
deliver to Lender a duly completed and executed compliance certificate in the form of Exhibit F. 
 (g) Notice of Litigation.
Immediately following Borrower’s knowledge thereof, Borrower shall deliver to Lender written notice of any litigation that is pending or threatened against Borrower that, if adversely determined, would have a Material Adverse Effect. 

(h) Notice of Default. Immediately following Borrower’s knowledge of any default or Event of Default under any Loan Document,
Borrower shall deliver to lender written notice of the default or Event of Default together with a reasonably detailed description thereof. 

(i) Other Information. Promptly upon request, Borrower shall provide Lender with any other information or reports that Lender
reasonably requests. 
 Section 9. Negative Covenants. Borrower covenants and agrees with Lender, so long as the Obligations
remain outstanding, as follows: 
 9.1 Existence of Liens. Borrower shall not create, assume or suffer to exist any mortgage, pledge,
security interest, encumbrance, lien, charge or deposit arrangement, or any other arrangement having the practical effect of the foregoing on any of the assets of Borrower, except for Permitted Liens. 

9.2 Restrictions on Debt. Borrower shall not create, incur, or suffer to exist any Indebtedness, other than Permitted Indebtedness.

 9.3 Sale of Assets. Borrower shall not sell, transfer, convey, or otherwise dispose of, whether pursuant to a single transaction
or a series of transactions, any of its material assets. 
 9.4 Changes in Structure. Without Lender’s prior written consent,
Borrower shall not: (a) merge or consolidate with any Person (or enter into any merger or consolidation agreement or plan), or permit any such merger or consolidation with it; (b) sell all or substantially all of its assets; (c) make
any material change in the nature of or manner in which it conducts its business; (d) amend its certificate of formation or limited liability company agreement; (e) issue any Indebtedness convertible into any equity interest;
(f) issue any equity interests or rights convertible into equity interests; or (g) agree to do any of the foregoing. 

  
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 9.5 Distributions. Without Lender’s prior written consent, Borrower shall not pay any
dividends, or make any distributions or similar payments, or incur or permit to exist any lien or restriction on any such payments. 
 9.6
Loans and Investments. Borrower shall not make any loans to, or investments in, any Person, except for (a) advances to employees for travel expenses and similar items in the ordinary course of business and (b) extensions of trade
credit in the ordinary course of business. 
 9.7 Subsidiaries. Borrower shall not form or acquire any subsidiary. 

9.8 Collection of Accounts. Borrower will collect its Accounts in the ordinary course of business, and will not make any discount,
credit, rebate or other reduction in the original amount owing except, prior to an Event of Default, for ordinary course reductions in accordance with Borrower’s existing policies. 

Section 10. Financial Covenants and Definitions. Borrower agrees as follows: 

10.1 Current Ratio. Borrower shall not permit the ratio of Borrower’s current assets to current liabilities (in each case, as
determined in accordance with GAAP) to be less than 1.20:1.00 as of the end of any fiscal quarter of Borrower. 
 10.2 Minimum Tangible
Net Worth. Borrower shall maintain a Tangible Net Worth of not less than $15,000,000. 
 10.3 Funded Debt to EBITDA. Borrower
shall not permit the ratio of Funded Debt to EBITDA for the prior twelve-month period to be greater than 4.00:1:00 as of the end of any fiscal quarter of Borrower, commencing with the fiscal quarter ending June 30, 2014. 

10.4 Financial Definitions. 

(a) “Debt Service” means, for any period, the sum, for the Borrower, of the following: (i) all regularly scheduled payments or
prepayments of principal of Indebtedness (including the principal component of any payment in respect of capital lease obligations) made during such period plus (ii) interest charges for such period. 

(b) “Debt Service Coverage Ratio” means, as at any date, the ratio of (i) EBITDA for the period of four fiscal quarters ending
on, or most recently ended prior to, such date to (ii) Debt Service for such four fiscal quarter period. 
 (c) “EBITDA”
means, for any period, net income, calculated before interest expense, provision for income taxes, depreciation and amortization expense, gains or losses arising from the sale of capital assets, gains arising from the write-up of assets, and any
extraordinary gains (in each case, to the extent included in determining net income). 

  
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 (d) “Funded Debt” means, as to Borrower, (i) Indebtedness of Borrower for
borrowed money; (ii) the principal portion of all obligations of Borrower under capital leases; (iii) the maximum undrawn face amount of all letters of credit, acceptances or similar obligations issued or created for the account of
Borrower; (iv) all obligations to guaranty Indebtedness of another Person of the type set forth in clauses (i) through (iii) of this definition; and (v) all Indebtedness of another Person of the type set forth in clauses
(i) through (iv) above that is secured by a lien on any property owned by Borrower. 
 (e) “Tangible Net Worth” means,
as at any date, (i) the sum for Borrower (as determined in accordance with GAAP) of the amounts that would, in conformity with GAAP, be included under “shareholder’s equity” (or any like caption) on the balance sheet of Borrower
as at such date, minus (ii) the net book value of all assets of the Borrower that would be treated as intangibles under GAAP, including, without limitation, goodwill (whether representing the excess cost over book value of assets acquired or
otherwise), patents, trademarks, trade names, franchises, copyrights, licenses, service marks, rights with respect to the foregoing and deferred charges (including, without limitation, unamortized debt discount and expense, organization costs, and
research and development costs). 
 Section 11. Events of Default. The occurrence of any of the following shall constitute an
“Event of Default:” 
 11.1 Non-Payment of Loans. The failure of Borrower to pay any principal, interest or other
Obligation due under any of the Loan Documents when due and payable, and such failure continues for three Business Days. 
 11.2 Breach
of Financial Covenant. A default by Borrower in any of the covenants set forth in Section 10 of this Agreement. 
 11.3 Breach
of Covenant. The failure of Borrower to perform or observe any other covenant or agreement set forth herein or in any of the other Loan Documents and such failure continues for three Business Days. 

11.4 Breach of Representation or Warranty. Any representation, statement, certificate, schedule, or report made or furnished to Lender
by or on behalf of Borrower in connection with this Agreement or otherwise being or becoming false in any material respect. 
 11.5
Change in Control. The occurrence of any Change in Control. 
 11.6 Destruction of Collateral. A loss, theft, damage or
destruction occurs with respect to any Collateral, and the amount not covered by insurance exceeds $50,000. 
 11.7 Insolvency. The
occurrence of any of the following: (a) Borrower shall cease to be Solvent; (b) Borrower shall admit in writing its inability to pay its debts as they mature; (c) Borrower makes an assignment for the benefit of creditors; or
(d) if bankruptcy proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against it and, if instituted against it, the same is not dismissed within 30 days of the
filing thereof. 

  
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 11.8 Dissolution. Any order, judgment, or decree shall be entered against Borrower
decreeing its involuntary dissolution or split up and such order shall remain undischarged and unstayed for a period in excess of 30 days; or Borrower shall otherwise dissolve or cease to exist. 

11.9 Levy Judgment. An attachment or garnishment writ, or the like, is levied against all or any portion of the assets of Borrower or a
judgment for the payment of money is rendered against Borrower and within 30 days from the entry of judgment has not been discharged or stayed pending appeal or, if any such judgment is affirmed on appeal, has not been discharged within 30 days from
the entry of the final order of affirmance on appeal. 
 11.10 Cross-Default. A default or event of default shall occur in any
Indebtedness of Borrower in excess of $50,000. 
 11.11 Failure of Perfection. The security interests granted by Borrower to Lender
shall for any reason fail or cease to create a valid and perfected and, except to the extent otherwise permitted by this Agreement, first priority lien in favor of Lender. 

Section 12. Remedies. If an Event of Default shall occur, then during the continuance thereof: 

12.1 All Obligations, notwithstanding any term of this Agreement or the other Loan Documents to the contrary, shall at Lender’s option
and without further notice become immediately due and payable, without presentment, demand, protest or notice of dishonor, all of which are hereby expressly waived by Borrower. 

12.2 Lender shall have all rights, powers and remedies available under this Agreement and the other Loan Documents or accorded by law,
including, without limitation, the right to resort to any or all security for the Obligations and to exercise any or all of the rights of a beneficiary or secured party pursuant to applicable law. 

12.3 Lender may require Borrower to assemble Collateral at Borrower’s expense, and make it available to Lender at a place designated by
Lender. 
 12.4 Lender may enter any premises where Collateral is located and, without charge by Borrower, store Collateral on such premises
until sold (which sale may be conducted on such premises). 
 12.5 Borrower agrees that 10 days’ notice of any proposed sale or other
disposition of Collateral by Lender shall be reasonable. Lender shall have the right to sell, lease or otherwise dispose of any Collateral for cash, credit or any combination thereof, and Lender may purchase any Collateral at public or, if permitted
by law, private sale and, in lieu of actual payment of the purchase price, may set off the amount of such price against the Obligations. All rights, powers and remedies of Lender in connection with the Obligations may be exercised at any time by
Lender and from time to time after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity. 

  
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 Section 13. License. Borrower hereby irrevocably constitutes and appoints Lender, and
any officer or agent of Lender, with full power of substitution, as Borrower’s true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Borrower or in Lender’s own name, for the purpose of
carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments that may be necessary or useful to accomplish the purposes of this Agreement and the other Loan Documents, and,
without limiting the generality of the foregoing, hereby gives such attorneys the power and right, on behalf of Borrower, without notice to or assent by Borrower, to do the following: (a) to indorse and collect any cash proceeds of the
Collateral, (b) to apply the proceeds of any Collateral received by Lender to the Obligations, and (c) to discharge past due taxes, assessments, charges, fees or liens on the Collateral. Borrower shall reimburse Lender on demand for any
payment made or any expense incurred by Lender in connection therewith, provided that this authorization shall not relieve Borrower of any of its obligations under any of the Loan Documents. 

Section 14. Miscellaneous. 

14.1 Failure or Indulgence Not Waiver. No failure or delay on the part of Lender in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof or of any other right, power or privilege. All rights and remedies existing under this Agreement and the other Loan Documents are cumulative, and not
exclusive of any rights or remedies otherwise available. 
 14.2 Modification. No modification, amendment or waiver of any provision
of this Agreement or the other Loan Documents, nor the consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall have been approved by Lender and shall be in writing signed by the Lender and, with respect
to any amendment, the Borrower. Such waiver or consent shall then be effective only in the specific instance and for the purpose for which given. No notice to or demand on Borrower in any case shall entitle Borrower to any other or further notice or
demand in the same, similar or other circumstances. 
 14.3 USA PATRIOT Act. Lender hereby notifies Borrower that pursuant to the
requirements of the USA PATRIOT Act, Lender may be required to obtain, verify and record information that identifies Borrower, including the name and address of Borrower and other information that will allow Lender to identify Borrower in accordance
with the USA PATRIOT Act. 
 14.4 Indemnification. Borrower shall indemnify Lender and all of its officers, employees, directors,
attorneys, agents, affiliates, successors and assigns (each, an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by Borrower or any Guarantor arising out of, in connection with, or as a result of (a) the execution or
delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (b) any Loan or the use or proposed use of the proceeds 

  
 Redback – Loan Agreement 

  
 21 

 
therefrom, (c) any actual or alleged presence or release of hazardous materials on or from any property owned or operated by Borrower or any of its subsidiaries, or any environmental
liability related in any way to Borrower or any of its subsidiaries, or (d) any actual or prospective claims, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by the Borrower or any Guarantor, and regardless of whether any Indemnitee is party thereto. 
 14.5
Notices. Except as otherwise expressly provided herein, any notice herein required or permitted to be given shall be in writing and shall be deemed effective when delivered personally, by certified mail, return receipt requested, or by FedEx
or other national overnight courier to the appropriate party at the address set forth below (or at such other address as may be designated by either party in a written notice sent in accordance with this section): 

 

			
	If to Borrower:	 	Redback Coil Tubing LLC
		 	10701 NW 2nd Street
		 	Yukon, OK 73099
		 	Attn: Aaron Ackerman, Chief Financial Officer
		
	If to Lender:	 	Stillwater National Bank and Trust Company
		 	6301 Waterford Boulevard
		 	Oklahoma City, OK 73118
		 	Attn: Chris Mostek, Vice President of Energy Lending
		
	With a copy to:	 	McAfee & Taft
		 	211 North Robinson, 10th Floor
		 	Oklahoma City, OK 73102
		 	Attn: J. Barrett Ellis

 14.6 Severability. In case any provision in this Agreement or the other Loan Documents shall be
invalid, illegal or unenforceable, such provision shall be severable from the remainder of such contract and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

14.7 Construction. The rule of construction that a document is to be construed most strictly against the party who drafted the document
shall not be applicable because all parties participated in the preparation of this Agreement and the other Loan Documents. “Includes” and “including” are not limiting. References to exhibits shall be to exhibits to this
Agreement. 
 14.8 Applicable Law. The laws of the State of Oklahoma shall govern this Agreement and the other Loan Documents, and
the legal relations between the parties without giving effect to any conflict of law provision (whether of the State of Oklahoma or any other jurisdiction) that would cause the application of the law of any other jurisdiction. 

14.9 Assignability. Borrower may not assign its rights or obligations under this Agreement or the other Loan Documents to any other
Person without the prior written consent of the other party, and any attempted assignment in violation hereof shall be null and void ab initio. 

  
 Redback – Loan Agreement 

  
 22 

 14.10 Participations. Lender is authorized to assign or sell all or any portion of the
Loans and to sell participation interests in the Loans, and Borrower agrees that each holder of a participation interest or subsequent holder of the Loans will be entitled to rely on the terms of the Loan Documents. Borrower authorizes Lender to
disclose all financial and other information about Borrower and the Guarantors in connection with the sale of the Loans or of participation interests in the Loans. Borrower ratifies any such actions taken prior to the date of this Agreement. 

14.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of
this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission shall constitute effective execution and
delivery of this Agreement and may be used in lieu of the original Agreement for all purposes. 
 14.12 Further Assurances. At any
time or from time to time upon the request of Lender, Borrower will, and will take affirmative steps to cause third parties to, execute and deliver such further documents and do such other acts and things as Lender may reasonably request in order to
effect fully the purposes of this Agreement and the other Loan Documents and to provide for the payment of the Obligations in accordance with the terms of this Agreement and the other Loan Documents. 

14.13 Attorneys’ Fees. In the event any party institutes any action or proceeding to enforce the terms and conditions of this
Agreement or the other Loan Documents, the prevailing party shall be entitled to reasonable attorneys’ fees and costs. 
 14.14
Usury. It is the intention of Borrower and Lender to comply with applicable usury laws. Therefore, notwithstanding any provisions to the contrary in this Agreement or in any other Loan Document, neither this Agreement nor any other Loan
Document shall require the payment or permit the collection of interest in excess of the maximum amount permitted by law. If compliance with this Agreement or any other Loan Document would result in a violation of applicable usury law, the amount of
the payment obligation imposed by this Agreement or any other Loan Document shall be reduced to the maximum amount permitted by law. If Lender receives any payment of interest, or receives any payment or transfer that is deemed to be interest by
applicable law, in an amount that exceeds applicable law, the amount in excess of the limit imposed by law shall be applied to reduce the principal amount owing under this Agreement or the other Loan Document. If the amount received in excess of the
limit imposed by law exceeds the unpaid principal balance due to Lender under this Agreement, the excess amount shall be refunded without interest to Borrower. 

14.15 Integration. This Agreement and the other Loan Documents reflect the entire understanding of the parties with respect to the
transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, whether before or after the date hereof, except in a writing executed by the parties hereto and referring specifically to this
Agreement. From time to time prior to the payment in full of the Obligations, Borrower and Lender may conduct discussions and negotiations with respect to Loans and the Loan Documents. Borrower agrees that no part of such discussions or negotiations
should be 

  
 Redback – Loan Agreement 

  
 23 

 
understood as an offer to contract or to alter the terms of the Loans or the Loan Documents prior to the execution of a definitive written agreement. Prior to the execution of a definitive
written agreement, Borrower shall not act in reliance on any statement of Lender or its officers. No single officer of Lender is authorized to approve any change to the terms of the Loans or the Loan Documents without prior approval in accordance
with Lender’s policies and procedures. 
 14.16 Time. Time is of the essence of this Agreement and the Loans. 

14.17 VENUE. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE DISTRICT COURT OF OKLAHOMA COUNTY,
OKLAHOMA, OR IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA. BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY IRREVOCABLY ACCEPTS THE JURISDICTION OF SUCH COURTS. THIS AGREEMENT SHALL NOT AFFECT THE RIGHT OF LENDER
TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST BORROWER IN ANY OTHER JURISDICTION ALLOWED BY LAW. EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION
OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

14.18 WAIVER OF JURY TRIAL. BORROWER AND LENDER VOLUNTARILY, KNOWINGLY, IRREVOCABLY, AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN BORROWER AND LENDER ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, THE LOAN DOCUMENTS, OR THE LOANS. THIS PROVISION IS A MATERIAL INDUCEMENT TO
LENDER TO MAKE THE LOANS. 

  
 Redback – Loan Agreement 

  
 24 

 EXECUTED as of the date first written above. 

 

			
	“BORROWER”
	
	REDBACK COIL TUBING LLC
		
	By:	 	 /s/ Paul Jacobi

	Name:	 	Paul Jacobi
	Title:	 	Vice President
	
	“LENDER”
	
	STILLWATER NATIONAL BANK AND TRUST COMPANY
		
	By:	 	 /s/ Chris Mostek

	Name:	 	Chris Mostek
	Title:	 	Vice President

  
 Redback – Loan Agreement 

  
 1 

 EXHIBIT A 

FORM OF BORROWING BASE CERTIFICATE 

As of             , 20     

This Borrowing Base Certificate is delivered pursuant to the Loan and Security Agreement, dated as of October 14, 2013 (the “Loan
Agreement”), between Redback Coil Tubing, LLC, and the Stillwater National Bank and Trust Company. 
 Descriptions in this certificate
are for convenience only and are qualified by reference to the Loan Agreement 
 BORROWING BASE 

 

											
	 1.
	  	 Total Accounts Receivable
	  				  	$	            	  
				
	 (a)
	  	 Less accounts excluded by Paragraph (b)
	  				  			
		  	 (Accounts not subject to perfected, first priority lien of Lender)
	  	$	            	  	  			
				
	 (b)
	  	 Less Accounts excluded by Paragraph (g)
	  				  			
		  	 (Accounts 90 days past invoice date)
	  	$	            	  	  			
				
	 (c)
	  	 Less Accounts excluded by Paragraph (h)
	  				  			
		  	 (Account Debtors with more than 10% past due Accounts)
	  				  			
				
	 (d)
	  	 Less Accounts excluded by paragraph G)
	  				  			
		  	 (Concentration limit)
	  	$	            	  	  			
				
	 (e)
	  	 Less any other ineligible accounts
	  	$	            	  	  			
				
	 2.
	  	 Total Of Eligible Accounts
	  				  	$	            	  
		  	 (Line 1 less lines (a) though (e))
	  				  			
				
	 3.
	  	 Borrowing Base
	  				  			
				
		  	 Line 2 x 80%
	  				  	$	            	  
				
	 4.
	  	 Commitment Amount
	  				  	$	3,000,000	  
				
	 5.
	  	 Total Availability
	  				  			
				
		  	 (Lesser of Line 3 or 4)
	  				  	$	            	  
				
	 6.
	  	 Loan Balance
	  				  			
				
		  	 Revolving Loans Outstanding
	  				  	$	            	  
				
	 7.
	  	 Net Availability
	  				  			
				
		  	 (Line 5 minus Line 6)
	  				  	$	            	  

  
 Redback – Loan Agreement 

  
 1 

 The undersigned certifies that he or she has prepared this Borrowing Base Certificate pursuant to the Loan
Agreement and that the information contained in this Certificate is true and correct. 
  

			
	REDBACK COIL TUBING, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Redback – Loan Agreement 

  
 2 

 EXHIBIT B 

FORM OF REVOLVING NOTE 
  

			
	$3,000,000.00	  	October 14, 2013
		  	Oklahoma City, Oklahoma

 The undersigned, for value received promises to pay to the order of The Stillwater National Bank and Trust
Company (“Lender”) at the principal office of the Lender in Oklahoma City, Oklahoma, or such other office as Lender may designate from time to time, the aggregate principal amount of $3,000,000.00, or so much thereof as may be outstanding
from time to time. 
 The undersigned further promises to pay interest on the unpaid principal amount of each Revolving Loan from the date
of such Revolving Loan until the Revolving Loan is paid in full, payable at the Applicable Rate in effect for each day. 
 “Applicable
Rate” means, for each day, the interest rate (or, if greater, the minimum rate) set forth below for the ratio of Funded Debt to EBITDA as calculated in the most recent certificate delivered to Lender pursuant to Section 8.8(e) of the Loan
Agreement. The “Prime Rate” is the rate published in the “Bonds, Rates & Yields” section of The Wall Street Journal on such day (or, if not published on such day, the first prior day on which such rate was published).

  

							
	 Funded Debt to EBITDA
	  	 Interest Rate
	  	Minimum Rate	 
	 <3.00:1:00
	  	Prime Rate	  	 	4.45	% 
	 33.00:1.00 and £4.00:1.00
	  	Prime Rate plus 0.50%	  	 	4.95	% 
	 >4.00:1:00
	  	Prime Rate plus 1.00%	  	 	5.45	% 

 During the continuance of an Event of Default, interest hereunder shall be payable at the rate of 15% per
annum. Payments of both principal and interest are to be made in lawful money of the United States of America. 
 Except as otherwise set
forth in the Loan Agreement from time to time, commencing on November 14, 2013, and on the 14th of each month thereafter, the undersigned shall make payments of accrued and unpaid interest with respect to the outstanding principal balance of
this Note. A final payment of all outstanding Obligations owing with respect to this Note shall be due and payable on October 9, 2014. 

This Note may be prepaid at any time without penalty. 

If the undersigned makes any payment hereunder more than 10 days past the due date for such payment, the undersigned shall pay a late fee in
the amount equal to the lesser of (a) 10% of the amount of the unpaid Obligations or (b) $500.00; provided that the late fee shall not be less than $50.00. Payment of the late fee shall not cure the Event of Default resulting from any late
payment of the Obligations. 

  
 Redback – Loan Agreement 

  
 1 

 This Note is the “Revolving Note” referred to in, and evidences indebtedness incurred
under, and is subject to the terms and provisions of, the Loan and Security Agreement, dated as of October 14, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement;” terms not otherwise
defined have the meanings assigned to them in the Loan Agreement), between the undersigned and Lender. Reference is made to the Loan Agreement for a statement of the terms and provisions under which this Note may or must be paid prior to its due
date or its due date accelerated. 
 This Note is made under and governed by the laws of the State of Oklahoma applicable to contracts made
and to be performed entirely within such state. 
 The undersigned, any other party liable with respect to the Revolving Loans and any and
all endorsers and accommodation parties, and each one of them, if more than one, waive any and all presentment, demand, notice of dishonor, protest, and all other notices and demands in connection with the enforcement of the Lender’s rights
under this Note, the Loan Agreement and the other Loan Documents, except as otherwise specifically provided for therein. 

  
 Redback – Loan Agreement 

  
 2 

 EXECUTED as of the date first written above. 

 

			
	REDBACK COIL TUBING LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Redback – Loan Agreement 

  
 3 

 EXHIBIT C 

FORM OF TERM NOTE 
  

			
	$8,000,000.00	  	October 14, 2013
		  	Oklahoma City, Oklahoma

 The undersigned, for value received promises to pay to the order of The Stillwater National Bank and Trust
Company (“Lender”) at the principal office of the Lender in Oklahoma City, Oklahoma, or such other office as Lender may designate from time to time, the principal amount of $8,000,000.00, or so much thereof as may be outstanding from time
to time. 
 The undersigned further promises to pay interest on the unpaid principal amount of the Term Loan from the date of the Term Loan
until the Term Loan is paid in full, payable at the Applicable Rate in effect for each day. 
 “Applicable Rate” means, for each
day, the interest rate (or, if greater, the minimum rate) set forth below for the ratio of Funded Debt to EBITDA as calculated in the most recent certificate delivered to Lender pursuant to Section 8.8(e) of the Loan Agreement. The “Prime
Rate” is the rate published in the “Bonds, Rates & Yields” section of The Wall Street Journal on such day (or, if not published on such day, the first prior day on which such rate was published). 

 

							
	 Funded Debt to EBITDA
	  	 Interest Rate
	  	Minimum Rate	 
	 <3.00:1:00
	  	Prime Rate	  	 	4.45	% 
	 33.00:1.00 and £4.00:1.00
	  	Prime Rate plus 0.50%	  	 	4.95	% 
	 >4.00:1:00
	  	Prime Rate plus 1.00%	  	 	5.45	% 

 During the continuance of an Event of Default, interest hereunder shall be payable at the rate of 15% per
annum. Payments of both principal and interest are to be made in lawful money of the United States of America. 
 Except as may otherwise be
set forth in the Loan Agreement from time to time, commencing on November 14, 2013, and on the 14th day of each month thereafter, through and including June 14, 2014, the undersigned
shall make monthly payments of all accrued and unpaid interest the outstanding principal balance of this Note. Commencing on July 14, 2014 (the “Amortization Start Date”), and on the
14th day of each month thereafter, the undersigned shall make monthly payments of principal and interest (the “Amortizing Payments”) owing with respect to this Note. Amortizing Payments
shall be in a fixed amount for each year, commencing on the Amortization Start Date and on each anniversary thereof (each a “Payment Reset Date”), based on a 40-month amortization (commencing on the Amortization Start Date) of the
projected principal balance of this Note on the Payment Reset Date at the Applicable Rate, in each case, as determined on the date that is 45 days prior to the Payment Reset Date (or, if such date is not a Business Day, the next succeeding Business
Day). Amortizing Payments shall be applied first to accrued and unpaid interest, and then to outstanding principal. A final payment of all outstanding Obligations owing with respect to this Note shall be due and payable on the October 14, 2017.

  
 Redback – Loan Agreement 

  
 1 

 This Note may be prepaid at any time without penalty. 

If the undersigned makes any payment hereunder more than 10 days past the due date for such payment, the undersigned shall pay a late fee in
the amount equal to the lesser of (a) 10% of the amount of the unpaid Obligations or (b) $500.00; provided that the late fee shall not be less than $50.00. Payment of the late fee shall not cure the Event of Default resulting from any late
payment of the Obligations. 
 This Note is the “Term Note” referred to in, and evidences indebtedness incurred under, and is
subject to the terms and provisions of, the Loan and Security Agreement, dated as of October 14, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement;” terms not otherwise defined have
the meanings assigned to them in the Loan Agreement), between the undersigned and Lender. Reference is made to the Loan Agreement for a statement of the terms and provisions under which this Note may or must be paid prior to its due date or its due
date accelerated. 
 This Note is made under and governed by the laws of the State of Oklahoma applicable to contracts made and to be
performed entirely within such state. 
 The undersigned, any other party liable with respect to the Revolving Loans and any and all
endorsers and accommodation parties, and each one of them, if more than one, waive any and all presentment, demand, notice of dishonor, protest, and all other notices and demands in connection with the enforcement of the Lender’s rights under
this Note, the Loan Agreement and the other Loan Documents, except as otherwise specifically provided for therein. 

  
 Redback – Loan Agreement 

  
 2 

 EXECUTED as of the date first written above. 

 

			
	REDBACK COIL TUBING LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Redback – Loan Agreement 

  
 3 

 EXHIBIT D 

REQUEST FOR REVOLVING LOAN ADVANCE 

This request is made pursuant to the Loan and Security Agreement, dated as of October 14, 2013 (the “Loan Agreement”), between
Redback Coil Tubing LLC, a Delaware limited liability company, as borrower, and the Stillwater National Bank and Trust Company, as lender. Capitalized terms used in this Request for Revolving Loan Advance have the meanings given to such terms in the
Loan Agreement. 
 The undersigned, being the duly elected officer of Borrower, hereby requests that Lender make a Revolving Loan to
Borrower in the principal amount of $        . The date on which such Revolving Loan is requested to be made is             ,
20    . 
 In connection with the requested Revolving Loan, the undersigned certifies as follows: 

1. After giving effect to the Revolving Loan requested above, the aggregate outstanding amount of all Revolving Loans will not exceed the
Availability. 
 2. The representations and warranties of Borrower set forth in the Loan Agreement are true and correct as of the date of
this Request for Advance, except to the extent specifically relating to an earlier date, in which case such representations and warranties were true and correct as of such date. 

Dated             , 20     

 

			
	REDBACK COIL TUBING LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Redback – Loan Agreement 

  

 EXHIBIT E 

REQUEST FOR TERM LOAN ADVANCE 

This request is made pursuant to the Loan and Security Agreement, dated as of October 14, 2013 (the “Loan Agreement”), between
Redback Coil Tubing LLC, a Delaware limited liability company, as borrower, and the Stillwater National Bank and Trust Company, as lender. Capitalized terms used in this Request for Term Loan Advance have the meanings given to such terms in the Loan
Agreement. 
 The undersigned, being the duly elected officer of Borrower, hereby requests that Lender make an advance of the Term Loan to
Borrower in the principal amount of $        . The date on which such advance is requested to be made is             , 20    .

 In connection with the requested Revolving Loan, the undersigned certifies as follows: 

1. Attached herewith are true and correct copies of invoices to be paid with the proceeds of the advance requested hereby. 

2. The representations and warranties of Borrower set forth in the Loan Agreement are true and correct as of the date of this Request for Term
Loan Advance, except to the extent specifically relating to an earlier date, in which case such representations and warranties were true and correct as of such date. 

Dated             , 20     

 

			
	REDBACK COIL TUBING LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 [ATTACH INVOICES] 

  
 Redback – Loan Agreement 

  

 EXHIBIT F 

FORM OF COMPLIANCE CERTIFICATE 

(Attached.) 

  
 Redback – Loan Agreement 

  

 Schedule 7.12 

Locations of Collateral 
 10701 NW 2nd St.

 Yukon, OK 73099 
 100 Stout Drive 

Elk City, OK 

  
 Redback – Loan AgreementEX-10.9

 Exhibit 10.9 

Loan Number: 92522 
  

					
		 	BUSINESS NOTE	 	
		 	(Use only for business purpose loans)	 	Boxes checked are applicable.
		 		 	Boxes not checked are inapplicable.

  

					
	 Muskie Proppant, LLC
	  	 January 31, 2013
	  	 $3,000,000.00

	(MAKER)	  	(DATE)	  	

 1. Promise to Pay and Payment Schedule. The undersigned (“Maker,” whether one or more) promises to pay to the
order of Citizens State Bank of La Crosse (“Lender”) at 620 Main Street, La Crosse, Wisconsin, the sum of $3,000,000.00, plus interest as set forth below, according to the following schedule: 

11 payment(s) consisting of accrued interest beginning March 1, 2013 and continuing monthly thereafter, plus a final payment of the unpaid principal
plus accrued interest due on February 1, 2014. All payments are subject to modification as set forth in the paragraphs 2(c) and 2(d) below. 

2. Interest. Interest shall accrue before maturity (whether by acceleration or lapse of time) at the stated interest rate(s) identified in section
2(a), (b) or (C) below (each a “stated interest rate”), as applicable, on the unpaid principal balance, calculated as provided in section 2(g) below: 

[Check (a), (b) or (c); only one shall apply.).] 
 (a)  ̈ Fixed Interest Rate. n/a% 
 (b)  ̈ Stepped Fixed Interest
Rate. n/a% until n/a% and n/a% thereafter. 
 (c) x Variable Interest Rate. The stated
interest rate is variable and will adjust to equal the Index Rate (as defined” below), x plus  ̈ minus 1.500 percentage points. However,
the stated interest rate shall not exceed n/a% and shall not be less than n/a% and until the first change date described below the stated interest rate shall be 4.750%. The stated interest rate shall be adjusted on the change
dates provided below. The “Index Rate” is: 
 The highest U.S. Prime Rate as published in the Wall Street Journal “Money Table”

 The Index Rate may or may not be the lowest rate charged by Lender. The stated interest rate shall be adjusted on the following change dates: 

as and when the Index changes 
 If the Index Rate ceases
to be made available to Lender during the term of this Note, “Lender may substitute .a comparable Index. 
 (d) Payment Modification. If section 2(b)
or (c) above is checked, an adjustment in the stated interest rate will result in an increase or decrease in (1)  ̈ the amount of each payment of interest, (2) x the amount of the final payment, (3)  ̈ the number of scheduled periodic payments sufficient to repay this Note in substantially equal payments,
(4)  ̈ the amount of each remaining payment of principal and interest so that those remaining payments will be substantially equal and sufficient to repay this Note by its scheduled maturity date,
(5)  ̈ the amount of each remaining payment of principal and interest (other than the final payment) so that those remaining payments will be substantially equal and sufficient to repay this Note
by its scheduled maturity date based on the original amortization schedule used by Lender, plus the final payment of principal and interest, or (6)  ̈ n/a. In addition, Lender is authorized
to change the amount of periodic payments if and to the extent necessary to pay in full all accrued interest owing on this Note. The Maker agrees to pay any resulting payments or amounts.” · 

(e) Interest After Maturity and Application of All Payments. Interest shall accrue on unpaid principal and interest after maturity (whether by acceleration or
lapse of time) until paid x at the stated interest rate(s) under section 2(a), (b) or (c) above, as applicable, plus 4.000 percentage points
 ̈ at the stated interest rate of n/a%, calculated as provided in section. 2(g) below. All payments shall be applied first to accrued and unpaid interest, second to other charges payable by Maker
to Lender and third to unpaid principal. 
 (f)  ̈ Compounding. Prior to maturity (whether by acceleration or
lapse of time), unpaid and past due interest shall bear interest from its due date at the stated interest rate then in effect for this Note, calculated as provided in section 2(g) below. 

(g) Interest Calculation. Interest will be calculated by applying a daily interest rate for the actual number of days interest is owing, up to 365 days in a
full year or 366 days in a full leap year. The daily interest rate will be calculated as follows: 
 [Check (1) or (2); only one shall apply.] 

(1)  ̈ 360 Day Rate Calculation. The daily interest rate will be calculated on the basis of a 360 day
year, which means that it is calculated by dividing the applicable stated interest rate in section 2(a), (b) or (c), above, as applicable, and in section 2(e), above, by 360. Maker understands and agrees that calculating the dally interest rate
using a 360 day year means the actual annual interest rate in a 366 day year and in a 366 day leap year is higher than the stated interest rate in section 2(a), (b) or (c), above, as applicable, and in section 2(e), above. 

(2)  ̈ 365 Day Rate Calculation. The daily interest rate will be calculated on the basis of a 365 day
year, which means that it is calculated by dividing the applicable stated interest rate in section 2(a), (b) or (c), above, as applicable, and in section 2(e), above, by 365. Maker understands and agrees that calculating the daily interest rate
using a 365 day year means the actual annual interest rate in a 366 day leap year is higher than the stated Interest rate in Section 2(a), (b) or (c), above, as applicable, and in section 2(e), above. · 

3. Other Charges. If any payment (other than the final payment) is not made on or before the 10th day after its due date, Lender may collect a delinquency
charge of x 5.00% of the unpaid amount  ̈ n/a. Maker agrees to pay a charge of $15.00 for each check or electronic debit
presented for payment under this Note which is returned unsatisfied. 
 4. Renewal.  ̈ This Note renews and
does not satisfy or discharge a note Maker executed to Lender dated n/a. 
 5. Prepayment. Full or partial prepayment of this Note x is permitted at any time without penalty  ̈ n/a. 
 All
prepayments shall be applied first to accrued and unpaid interest, second to other charges payable by Maker to Lender and third to principal. 

THIS NOTE INCLUDES ADDITIONAL PROVISIONS ON PAGE 2. 

 

					
	Muskie Proppant, LLC	 	(SEAL)
	A Delaware Limited Liability Company
	By:	 	/s/ Cyrus W. Ingraham, III	 	(SEAL)
	Cyrus W. Ingraham, III, CEO	 	(SEAL)
	1125 N. Broadway
	Menomonie, WI 54751
	(ADDRESS)	 	(PHONE)

  

FOR LENDER CLERICAL USE ONLY 
  

			
		 	
	Collateral includes but is not limited to: 1st REM on W2326 US Highway 10, Plum City, WI; SBSA 45-3252412	 	 Dennis J. Vogel

	 	LOAN OFFICER

  
 Page 1 of 2 

			
	 DOCUMENT NO.
  

REAL ESTATE MORTGAGE
 (Use
For Consumer or Business Transactions)
  
 Muskie Proppant, LLC
(“Mortgagor,” whether one or more), whose address is 1125 N. Broadway, Menomonie, WI 54751 mortgages, conveys, assigns, grants a security interest in and warrants to Citizens State Bank of La Crosse 620 Main Street, La Crosse, WI
54601 (“Lender”) in consideration of the sum of
 Three Million and 00/100 ($3,000,000.00), loaned or to be loaned to Muskie
Proppant, LLC (“Borrower”), whether one (or more) by Lender, evidenced by Borrower’s note(s) or agreement(s) dated January 31, 2013 the real estate described below, together with all privileges, hereditaments,
easements and appurtenances, all rents, leases, issues and profits, all claims, awards and payments made as a result of the exercise of the right of eminent domain, all existing and future improvements and all goods that are or are to become
fixtures (all called the “Property”) to secure the Obligations described in paragraph 5, including, but not limited to, repayment of the sum stated above plus certain other debts, obligations and liabilities arising out of past, present
and future credit granted by Lender. SINCE THIS MORTGAGE SECURES ALL OBLIGATIONS DESCRIBED IN PARAGRAPH 5, IT IS ACKNOWLEDGED AND AGREED THAT THIS MORTGAGE MAY SECURE OBLIGATIONS FROM TIME TO TIME IN A DOLLAR AMOUNT GREATER THAN THE DOLLAR AMOUNT
STATED ABOVE.
  
  ̈ If checked here, and
not in limitation of paragraph 5, this Mortgage is also given to secure all sums advanced and re-advanced to Borrower by Lender from time to time under the revolving credit agreement between Borrower and Lender described above.
	  	  
  
  

 
 542429

 
 PIERCE COUNTY

REGISTER OF DEEDS
 VICKI J
NELSON
  

PAGES:        3

NTG
 RECORDING
FEE:        30.00
  

02/08/2013 08:00 AM
  

Recording Area
 Name and Return Address

Citizens State Bank of La Crosse
  

620 Main Street
 La Crosse, WI 54601

 
 034-01018-0100

Parcel Identifier No.

 1. Description of Property. (This Property is not the homestead of Mortgagor.) 

Part of the SE 1/4 of the SW 1/4 of Section 7, Township 25 North, Range 15 West, Town of Union, Pierce County, Wisconsin, described as follows:
Commencing at the Southeast corner of said SE 1/4 of the SW 1/4 thence North 880 feet; thence West 600 feet; thence South 80 feet; thence West 142.5 feet; thence South 800 feet; thence East 742.5 feet to the point of beginning, EXCEPT Certified
Survey map recorded in Volume 4 of Certified Survey maps, Page 165 as Document No. 354508. 
 Together with an Easement described Warranty Deed dated
November 5, 1993 and recorded on November 12, 1993 in Volume 290 of Records, Page 156 as Document No. 351125. 
 W2326 US Highway 10, Plum
City , WI 54761 
  ̈ If checked here, description continues or appears on attached sheet(s). 

 ̈ If checked here, this Mortgage is a construction mortgage. 

 ̈ If checked here, Condominium Rider is attached. 

2. Title. Mortgagor warrants title to the Property, excepting only restrictions and easements of record, municipal and zoning ordinances,
current taxes and assessments not yet due
and                                         .

 3. Escrow. Interest will not be paid on escrowed funds if an escrow is required under paragraph 8(a). 

4. Additional Provisions. This Mortgage includes the additional provisions on pages 2 and 3, which are made a part of this Mortgage. 

  
 Real Estate Mortgage 

Page 1 of 3 

 5. Mortgage as Security. This Mortgage secures prompt payment to Lender of (a) the sum
stated in the first Paragraph of this Mortgage, plus interest and charges, according to the terms of the promissory note(s) or agreement(s) of Borrower to Lender identified in the first paragraph of this Mortgage, and any extensions, renewals or
modifications of such promissory note(s) or agreement(s), plus (b) to the extent not prohibited by the Wisconsin Consumer Act, if applicable, all other debts, obligations and liabilities arising out of credit previously granted, credit
contemporaneously granted and credit granted in the future primarily for personal, family or household purposes by Lender to any Mortgagor, to any Mortgagor and another or to another guaranteed or endorsed by any Mortgagor and agreed in documents
evidencing the transaction to be secured by this Mortgage, plus all interest and charges, plus (c) all other debts, obligations and liabilities arising out of credit previously granted, credit contemporaneously granted and credit granted in the
future other than primarily for personal, family or household purposes by Lender to any Mortgagor, any Mortgagor and another or to another guaranteed or endorsed by any Mortgagor, plus all interest and charges, plus (d) to the extent not
prohibited by the Wisconsin Consumer Act or Chapter 428, Wisconsin Statutes, if applicable, all costs and expenses of collection or enforcement (all called the “Obligations”). This Mortgage also secures the performance of all covenants,
conditions and agreements contained in this Mortgage. Unless otherwise required by law, Lender will satisfy this Mortgage upon request by Mortgagor if (a) the Obligations have been paid according to their terms, (b) any commitment to make
future advances secured by this Mortgage has terminated, (c) Lender has terminated any line of credit under which advances are to be secured by this Mortgage, and (d) all other payments required under this Mortgage and the Obligations and
all other terms, conditions, covenants, and agreements contained in this Mortgage and the documents evidencing the Obligations have been paid and performed. 

6. Taxes. To the extent not paid to Lender under paragraph 8(a), Mortgagor shall pay before they become delinquent all taxes, assessments and
other charges which may be leveled or assessed against the Property, against Lender upon this Mortgage or the Obligations or other debt secured by this Mortgage, or upon Lender’s interest in the Property, and deliver to Lender receipts showing
timely payment. 
 7. Insurance. Mortgagor shall keep the improvements on the Property insured against direct loss or damage occasioned by
fire, flood, extended coverage perils and such other hazards as Lender may require, through insurers reasonably satisfactory to Lender, in amounts, without co-insurance, not less than the unpaid balance of the Obligations or the full replacement
value, whichever is less, and shall pay the premiums when due. The policies shall contain the standard mortgagee and lender loss payee clauses in favor of Lender, shall insure Lender notwithstanding any defenses of the insurer against Mortgagor and,
unless Lender otherwise agrees in writing, the original of all policies covering the Property shall be deposited with Lender. Subject to Lender’s satisfaction, Mortgagor is free to select the insurance agent or insurer through which insurance
is obtained. Mortgagor shall promptly give notice of loss to insurance companies and Lender. All proceeds from such insurance shall be applied, at Lender’s option, to the Installments of the Obligations in the inverse order of their maturities
(without penalty for prepayment) or to the restoration of the improvements on the Property, and Lender may require that such proceeds of insurance be deposited with it for these purposes. In the event of foreclosure of this Mortgage or other
transfer of title to the Property, in extinguishment of the indebtedness secured hereby, all right, title, and interest of Mortgagor in and to any insurance then in force shall pass to the purchaser or grantee. If Mortgagor fails to keep any
required insurance on the Property, Lender may purchase such insurance for Mortgagor, such insurance may be acquired by Lender solely to protect the interest of Lender (it will not cover Mortgagor’s equity in the Property), and Mortgagor’s
obligation to repay Lender shall be in accordance with paragraph 10. 
 8. Mortgagor’s Covenants. Mortgagor covenants: 

(a) Escrow. If an escrow is required by Lender, to pay Lender sufficient funds, at such times as Lender designates, to pay when due
(1) the estimated annual real estate taxes and assessments on the Property, (2) all property and hazard insurance premiums, (3) flood insurance premiums, if any, (4) if payments owed under the Obligations are guaranteed by
mortgage guaranty insurance, the premiums necessary to pay for such insurance, and (5) other items agreed to be included In the escrow. Lender may, at any time, collect and hold such escrow funds in an amount not to exceed the maximum amount a
lender for a federally related mortgage loan may require for Mortgagor’s escrow account under the federal Real Estate Settlement Procedures Act of 1974, as amended from time to time, if applicable. Lender may estimate the amount of escrow funds
due on the basis of current data and reasonable estimates of future expenditures of future escrow account funds or as otherwise required by applicable law. Lender shall apply the escrowed funds against taxes, assessments and insurance premiums when
due or as otherwise required by law. Escrowed funds may be commingled with Lender’s general funds. If the escrowed funds held by Lender exceed the amount permitted to be held by applicable law, Lender shall account to Mortgagor for the excess
escrowed funds in a manner determined by Lender or as otherwise required by applicable law. If the escrowed funds held by Lender at any time are not sufficient to pay the escrow account items when due, Lender may notify Mortgagor in writing, and
Mortgagor shall pay to Lender the amount necessary to make up the deficiency in a manner determined by Lender or as otherwise required by applicable law; 

(b) Condition and Repair. To keep the Property in good arid tenantable condition and repair, and to restore or replace damaged or destroyed
improvements and fixtures; 
 
 (c) Liens. To keep the Property free
from liens and encumbrances superior to the lien of this Mortgage and not described in paragraph 2; 
 (d) Other Mortgages. To perform all
of Mortgagor’s obligations and duties under any other mortgage or security agreement on the Property and any obligation to pay secured by such a mortgage or security agreement; 

(e) Waste. Not to commit waste or permit waste to be committed upon the Property or abandon the Property; 

(f) Conveyance. Not to sell, assign, lease, mortgage, convey or otherwise transfer any legal or equitable interest in all or part of the
Property, or permit the same to occur without the prior written consent of Lender and, without notice to Mortgagor, Lender may deal with any transferee as to its interest in the same manner as with Mortgagor, without in any way discharging the
liability of Mortgagor under this Mortgage or the Obligations; 
 (g) Alteration or Removal. Not to remove, demolish or materially alter any
part of the Property, without Lender’s prior written consent, except Mortgagor may remove a fixture, provided the fixture is promptly replaced with another fixture of at least equal utility; 

(h) Condemnation. To pay to Lender all compensation received for the taking of the Property, or any part, by condemnation proceeding
(including payments in compromise of condemnation proceedings), and all compensation received as damages for injury to the Property, or any part. The compensation shall be applied in such manner as Lender determines to rebuilding of the Property or
to the Obligations in the inverse order of their maturities (without penalty for prepayment); 
 (i) Inspection. Lender and its authorized
representatives may enter the Property at reasonable times to inspect it, and at Lender’s option to repair or restore the Property and to conduct environmental assessments and audits of the Property; 

(j) Laws. To comply with all laws, ordinances and regulations affecting the Property; 

(k) Subrogation. That Lender is subrogated to the lien of any mortgage or other lien discharged, in whole or in part, by the proceeds of the
note(s) or agreement(s) identified in the first paragraph of this Mortgage; and 
 (l) Leases. To pay and perform all obligations and
covenants under and pursuant to the terms of each lease of all or any part of the Property required of Mortgagor, and to not cancel, accept a surrender of, modify, consent to an assignment of the lessee’s interest under, or make any other
assignment or other disposition of, any lease of all or any part of the Property or any interest of Mortgagor in the lease and to not collect or accept any payment of rent more than one month before it is due and payable. 

9. Environmental Laws. Mortgagor represents, warrants and covenants to Lender (a) that during the period of Mortgagor’s ownership or
use of the Property no substance has been, is or will be present, used, stored, deposited, treated, recycled or disposed of on, under, in or about the Property in a form, quantity or manner which if known to be present on, under, in or about the
Property 

 
would require clean-up, removal or some other remedial action (“Hazardous Substance”) under any federal, state or local laws, regulations, ordinances, codes or rules
(“Environmental Laws”); (b) that Mortgagor has no knowledge, after due inquiry, of any prior use or existence of any Hazardous Substance on the Property by any prior owner of or person using the Property; (c) that, without
limiting the generality of the foregoing, Mortgagor has no knowledge, after due inquiry, that the Property contains asbestos, polychlorinated biphenyl components (PCBs) or underground storage tanks; (d) that there are no conditions existing
currently or likely to exist during the term of this Mortgage which would subject Mortgagor to any damages, penalties, injunctive relief or clean-up costs in any governmental or regulatory action or third-party claims relating to any Hazardous
Substance; (e) that Mortgagor is not subject to any court or administrative proceeding, judgment, decree, order or citation relating to any Hazardous Substance; and (f) that Mortgagor in the past has been, at the present is, an in the
future will remain in compliance with all Environmental Laws. Mortgagor shall indemnify and hold harmless Lender, its directors, officers, employees and agents from all loss, cost (including reasonable attorneys’ fees and legal expenses),
liability and damage whatsoever directly or indirectly resulting from, arising out of, or based upon (i) the presence, use, storage, deposit, treatment, recycling or disposal, at any time, of any Hazardous Substance on, under, in or about the
Property, or the transportation of any Hazardous Substance to or from the Property, (ii) the violation or alleged violation of any Environmental Law, permit, judgment or license relating to the presence, use, storage, deposit, treatment,
recycling or disposal of any Hazardous Substance on, under, in or about the Property, or the transportation of any Hazardous Substance to or from the Property, or (iii) the imposition of any governmental lien for the recovery of environmental
clean-up costs expended under any Environmental Law. Mortgagor shall immediately notify Lender in writing of any governmental or regulatory action or third-party claim instituted or threatened in connection with any Hazardous Substance on, in, under
or about the Property. 
 10. Authority of Lender to Perform for Mortgagor. If Mortgagor fails to perform any of Mortgagor’s duties set
forth in this Mortgage, including without limitation, preserving and insuring the Property, not committing waste or abandoning the Property, keeping the Property free of liens or encumbrances other than those approved by Lender, keeping the Property
in good and tenantable condition and repair, and complying with all laws, ordinances and regulations affecting the Property, Lender may after giving Mortgagor any .notice and opportunity to perform which are required by law, perform the covenants or
duties or cause them to be performed, or take such other action as may be necessary to protect Lender’s interest in the Property and to secure and repair the Property. Unless prohibited by the Wisconsin Consumer Act, if applicable, such actions
may include, without limitation, assessing the value of the Property, paying liens that become superior to this Mortgage and making any other payments required, signing Mortgagor’s name, engaging an attorney, appearing in court and paying
reasonable attorney’s fees, and entering the Property to make repairs, change locks, replace and board up doors and windows, drain water from pipes, eliminate building code violations and dangerous conditions and maintain appropriate utilities
to the Property. Any such amounts expended by Lender shall be due on demand and secured by this Mortgage, bearing interest at the highest rate stated in any document evidencing an Obligation, but not in excess of the maximum rate permitted by law,
from the date of expenditure by Lender to the date of payment by Mortgagor. 
 11. Default; Acceleration; Remedies. If (a) there is a
default under any Obligation secured by this Mortgage, or (b) Mortgagor fails timely to observe or perform any of Mortgagor’s covenants or duties contained in this Mortgage, then, at the option of Lender each Obligation will become
immediately due and payable unless notice to Mortgagor or Borrower and an opportunity to cure are required by §425.105, Wis. Stats., if applicable, or the document evidencing the Obligation and, in that event, the Obligation will become due and
payable if the default is not cured as provided in that statute or the document evidencing the Obligation or as otherwise provided by law. If Lender exercises its option to accelerate, the unpaid principal and Interest owed on the Obligation,
together with all sums paid by Lender as authorized or required under this Mortgage or any Obligation, shall be collectible in a suit at law or by foreclosure of this Mortgage by action, or both, or by the exercise of any other remedy available at
law or equity. 
 12. Waiver and Consent. .Lender may waive any default without waiving any other subsequent or prior default by Mortgagor.
Unless prohibited by the Wisconsin. Consumer Act, if applicable, each Mortgagor who is not also a Borrower expressly consents to and waives notice of the following without affecting the liability of any such Mortgagor: (a) the creation of any
present or future Obligations, default under any Obligations, proceedings to collect from any Borrower or anyone else, (b) any surrender, release, impairment, sale or other disposition of any security or collateral for the Obligations,
(c) any release or agreement not to sue any guarantor or surety of the Obligations, (d) any failure to perfect Lender’s security interest in or realize upon any security or collateral for the Obligations, (e) any failure to
realize upon any of the Obligations or to proceed against any Borrower or any guarantor or surety, (f) any renewal or extension of the time of payment, (g) any determination of the allocation and application of payments and credits and
acceptance of partial payments, (h) any application of the proceeds of disposition of any collateral for the Obligations to any obligation of any Borrower secured by such collateral in such order and amounts as it elects, (i) any
determination of what, if anything, may at any time be done with reference to any security or collateral, and (j) any settlement or compromise of the amount due or owing or claimed to be due or owing from any Borrower, guarantor or surety. 

13. Assignment of Rents and Leases. Mortgagor conveys, assigns and transfers to Lender, as additional security for the Obligations, all leases
of all or any part of the Property, whether oral or written, now or hereafter entered into by Mortgagor, together with any and all extensions and renewals of any leases, and all rents which become or remain due or are paid under any agreement or
lease for the use or occupancy of any part or all of the Property. Until the occurrence of an event of default under this Mortgage or any Obligation, Mortgagor has a license to collect the rents, issues and profits (the “Rents”) from the
Property. To the extent not prohibited by the Wisconsin Consumer Act, if applicable, upon or at any time after the occurrence of such an event of default and the expiration of any applicable cure period described in paragraph 11, and lapse of any
applicable grace, notice or cure period provided in any document evidencing such Obligation, the license granted Mortgagor to collect the Rents shall automatically and immediately terminate and Mortgagor shall hold all Rents (whether paid before or
after an event of default) in trust for the use and benefit of Lender, and Lender may, at its option, without any further notice, either in person or by agent, with or without taking possession of or entering the Property, with or without bringing
any action or proceeding, or by a receiver to be appointed by a court, collect all of the Rents payable under the leases. All such payments shall be applied in such manner as Lender determines to payments required under this Mortgage and the
Obligations. To the extent not prohibited by the Wisconsin Consumer Act, if applicable, this assignment shall be enforceable and Lender shall be entitled to take any action to enforce the assignment (including notice to the tenants to pay directly
to Lender or the commencement of a foreclosure action) without seeking or obtaining the appointment of a receiver or possession of the Property. Any entering upon and taking possession of the Property, any collection of Rents, and any application of
Rents as allowed by this Mortgage shall not cure or waive any default or waive, modify or affect notice of default under this Mortgage or invalidate any act done pursuant to such notice, and not in any way operate to prevent Lender from pursuing any
other remedy which it now or hereafter may have under the terms or conditions of this Mortgage, any document evidencing any Obligation or any other instrument securing the Obligations. 

14. Power of Sale. In the event of foreclosure, Lender may sell the Property at public sale and execute and deliver to the purchasers deeds of
conveyance pursuant to statute. 
 15. Receiver. Upon the commencement or during the pendency of an action to foreclose this Mortgage, or
enforce any other remedies of Lender under it, without regard to the adequacy or inadequacy of the Property as security for the Obligations, Mortgagor agrees that the court may appoint a receiver of the Property (including homestead interest)
without bond, and may empower the receiver to take possession of the Property and collect the rents, issues and profits of the Property and exercise such other powers as the court may grant until the confirmation of sale, and may order the rents,
issues and profits, when so collected, to be held and applied as the court may direct. 
 16. Foreclosure Without Deficiency Judgment. If
the Property is a one-to-four family residence that is owner-occupied at the commencement of a foreclosure, a farm, a church or owned by a tax exempt charitable organization, Mortgagor agrees to the 

 
provisions of §846.101 Wis. Stats., and as the same may be amended or renumbered from time to time, permitting Lender, upon waiving the right to judgment for deficiency, to hold the
foreclosure sale of real estate of 20 acres or less six months after a foreclosure judgment is entered. If the Property is other than a one-to-four family residence that is owner-occupied at the commencement of a foreclosure, a farm, a church or
owned by a tax exempt charitable organization, Mortgagor agrees to the provisions of §846.103, Wis. Stats., and as the same may be amended or renumbered from time to time, permitting Lender, upon waiving the right to judgment for deficiency, to
hold the foreclosure sale of real estate three months after a foreclosure judgment is entered. 
 17. Expenses. To the extent not prohibited
by the Wisconsin Consumer Act or Chapter 428, Wisconsin Statutes, if applicable, Mortgagor shall pay all reasonable costs and expenses before and after judgment, including without limitation, attorneys’ fees, appraisal fees, fees and expenses
for environmental assessments, inspections and audits, and fees and expenses for obtaining title evidence incurred by Lender in protecting or enforcing its rights under this Mortgage. 

18. Successors and Assigns. The obligations of all Mortgagors are joint and several. This Mortgage benefits Lender, its successors and
assigns, and binds Mortgagor(s) and their respective heirs, personal representatives, successors and assigns. 
 19. Interpretation. The
validity, construction and enforcement of this Mortgage are governed by the internal laws of Wisconsin except to the extent such laws are preempted by federal law. All references in this Mortgage to sections of the Wisconsin Statutes are to those
sections as they may be renumbered from time to time. Invalidity of any provision of this Mortgage will not affect the validity of any other provision. 

20. Entire Agreement. This Mortgage is intended by Lender and Mortgagor as a final expression of this Mortgage and as a complete and exclusive
statement of its terms, there being no conditions to the enforceability of this Mortgage. To the extent not prohibited by the Wisconsin Consumer Act, if applicable, this Mortgage may not be contradicted or varied by evidence of prior,
contemporaneous or subsequent oral agreements or discussions of Lender and Mortgagor. There are no oral agreements among Lender and Mortgagor. This Mortgage may not be supplemented or modified except in writing signed by Lender and Mortgagor. 

21. Other Provisions. (If none are stated below, there are no other provisions.) 

The undersigned agrees to the terms of this Mortgage and acknowledges receipt of an exact copy of this Mortgage. 

NOTICE TO CUSTOMER IN A TRANSACTION GOVERNED BY THE WISCONSIN CONSUMER ACT 

 

	(a)	DO NOT SIGN THIS BEFORE YOU READ THE WRITING ON ALL THREE PAGES, EVEN IF OTHERWISE ADVISED. 

  

	(b)	DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES. 

  

	(c)	YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN. 

  

	(d)	YOU HAVE THE RIGHT AT ANY TIME TO PAY IN ADVANCE THE UNPAID BALANCE DUE UNDER THIS AGREEMENT AND YOU MAY BE ENTITLED TO A PARTIAL REFUND OF THE FINANCE CHARGE. 

 

			
	Signed and Sealed	 	 January 31, 2013

		 	(Date)

  

			
		
	 Muskie Proppant, LLC
	 	(SEAL)

  

	
	
	 A Delaware Limited Liability Company

	(Type of Organization)
	
	 Delaware

(State of Organization)

  

	
	
	  

	(Organizational I.D. Number, if any)

 

 

 

					
			
	By:	 	 /s/ Cyrus W. Ingraham, III
	 	(SEAL)
		 	Cyrus W. Ingraham, III, CEO	 	
			
	By:	 	  
	 	(SEAL)

 

			
		
	  
	 	(SEAL)
		 	
		
	  
	 	(SEAL)

 
 

  

									
		 	-----------AUTHENTICATION------------
	 	       OR	 	-----------ACKNOWLEDGMENT-----------

 

			
		
	Signatures of	 	  

	
	  

	
	  

	
	  

			
		
	authenticated this          day of	 	  

	  

	  

			
	Title: Member State Bar of Wisconsin or	 	  

authorized under §706.06, Wis. Stats. 
 This instrument was
drafted by 
 Kim Faas – CSB 
  

 
 Type or print name signed above.

					
	STATE OF	 	 Wisconsin
	 	
		 		 	 ss.

					
	County of	 	 La Crosse
	 	

 This instrument was acknowledged before me on 

January 31, 2013, 
  

			
	by	 	 Cyrus W. Ingraham, III

	  

			
	as	 	 CEO

(Name of party of applicant whom instrument was executed, if any) 
  

 
 Dennis J. Vogel 

 

			
	Notary Public,	 	 Wisconsin

			
	My Commission (Expires)	 	 November 3, 2013

 

  

			
	WBA428.GPF Rev. 11/2011	  	 Real Estate Mortgage

Page 3 of 3

 SELECTIVE BUSINESS SECURITY AGREEMENT 

Boxes checked are applicable. 

Boxes not checked are inapplicable. 

Dated January 31, 2013

1. SECURITY INTEREST 
 In
consideration of any financial accommodation at any time granted by Citizens State Bank of La Crosse (“Lender”) to Muskie Proppant, LLC (“Borrower”), each of the undersigned (“Debtor,” whether one or more)
grants Lender a security interest in property, wherever located, checked in Section 2 (“Collateral”) to secure all debts, obligations and liabilities to Lender arising out of credit previously granted, credit contemporaneously granted
and credit granted in the future by Lender to any Debtor, or any Borrower, to any of them and another, or to another guaranteed or endorsed by any of them (“Obligations”). 

2. DESCRIPTION OF COLLATERAL 
 One or more
boxes must be checked. 
  

					
	(a)	  	x	  	All Collateral. If checked here, all equipment, fixtures, inventory, documents, general intangibles, accounts, deposit accounts (unless a security interest would render a nontaxable account taxable), contract rights, chattel paper,
patents, trademarks and copyrights (and the good will associated with and registrations and licenses of any of them), instruments, letter of credit rights and investment property, now owned or hereafter acquired by Debtor (or by Debtor with
spouse);
	(b)	  	 ̈	  	Scheduled Collateral. If checked here, all inventory, accounts, contract rights, equipment, fixtures, general intangibles, instruments, deposit accounts (unless a security interest would render a nontaxable account taxable), letter
of credit rights, commercial tort claims, investment property, documents and chattel paper described in the attached schedule and any additional schedules delivered by Debtor to Lender from time to time, now owned or hereafter acquired by Debtor (or
by Debtor with spouse);
	(c)	  	x	  	Specific Collateral. If checked here, the following described property now owned or hereafter acquired by Debtor (or by Debtor with spouse):
		  		  	 See Attachment

		  		  	  

	(d)	  	 ̈	  	All Inventory. If checked here, all inventory and documents relating to inventory now owned or hereafter acquired by Debtor (or by Debtor with spouse);
	(e)	  	 ̈	  	All Receivables. If checked here, all accounts, contract rights, chattel paper, letter of credit rights and instruments now owned or hereafter acquired by Debtor (or by Debtor with spouse);
	(f)	  	 ̈	  	All Equipment. If checked here, all equipment and fixtures now owned or hereafter acquired by Debtor (or by Debtor with spouse);
	(g)	  	 ̈	  	All General Intangibles. If checked here, all general intangibles now owned or hereafter acquired by Debtor (or by Debtor with spouse); and all additions and accessions to, all spare and repair parts, special tools, equipment and
replacements for, software used in, all returned or repossessed goods the sale of which gave rise to, and all proceeds, supporting obligations and products of the foregoing.

 3. DEBTOR’S WARRANTIES 

Debtor warrants and agrees that while any of the Obligations are unpaid: 

(a) Ownership and use. Debtor owns (or with spouse owns) the Collateral free of all encumbrances and security interests (except Lender’s
security interest). Chattel paper constituting Collateral evidences a perfected security interest in the goods (including software used in the goods) covered by it, free from all other encumbrances and security interests, and no financing statement
is on file or control agreement in existence (other than Lender’s) covering the Collateral or any of it. Debtor, acting alone, may grant a security interest in the Collateral and agree to the terms of this Agreement. The Collateral is used or
bought for use primarily for business purposes. 
 (b) Sale of goods or services rendered. Each account and chattel paper constituting
Collateral as of this date arose from the performance of services by Debtor or from a bona fide sale or lease of goods, which have been delivered or shipped to the account debtor and for which Debtor has genuine invoices, shipping documents or
receipts. 
 (c) Enforceability. Each account, contract right and chattel paper constituting Collateral as of this date is genuine and
enforceable against the account debtor according to its terms. It and the transaction out of which it arose comply with all applicable laws and regulations. The amount represented by Debtor to Lender as owing by each account debtor is the amount
actually owing and is not subject to setoff, credit, allowance or adjustment, except discount for prompt payment, nor has any account debtor returned the goods or disputed liability. 

(d) Due date. There has been no default according to the terms of any chattel paper or account constituting Collateral and no step has been
taken to foreclose the security interest it evidences or otherwise enforce its payment. 
 (e) Financial Condition of account debtor. As of
this date Debtor has no notice or knowledge of anything which might impair the credit standing of any account debtor and Debtor will advise Lender upon receipt of any such notice or knowledge affecting Collateral. 

(f) Valid organization. If a corporation, limited liability company or general or limited partnership, Debtor is duly organized, validly
existing and in good standing under the laws of the state of organization and is authorized to do business in Wisconsin. 
 (g) Other
agreements. Debtor is not in default under any agreement for the payment of money. 
 (h) Authority to contract. The execution and delivery
of this Agreement and any instruments evidencing Obligations will not violate or constitute a breach of Debtor’s articles of incorporation or organization, by-laws, partnership agreement, operating agreement or any other agreement or
restriction to which Debtor is a party or is subject. 
 (i) Accuracy of Information. All information, certificates or statements given to
Lender pursuant to this Agreement shall be true and complete when given. 
 (j) Name and address. Debtor’s exact legal name is as set
forth below Section 13. If Debtor is an individual, the address of Debtor’s principal residence is as set forth below Section 13. If Debtor is an organization that has only one place of business, the address of Debtor’s place of
business, or if Debtor has more than one place of business, then the address of Debtor’s chief executive office, is as set forth below Section 13. 

(k) Location. The address where the Collateral will be kept, if different from that appearing below Section 13, is
                                        . Such
location shall not be changed without the prior written consent of Lender, but the parties intend that the Collateral, wherever located, is covered by this Agreement. 

(l) Organization. If Debtor is an organization, the type of organization and the state under whose law it is organized are as set forth below
Section 13. 
 (m) Environmental laws. (i) No substance has been, is or will be present, used, stored, deposited, treated,
recycled or disposed of on, under, in or about any real estate now or at any time owned or occupied by Debtor (“Property”) during the period of Debtor’s ownership or use of the Property in a form, quantity or manner which if known to
be present on, under, in or about the Property would require clean-up, removal or some other remedial action (“Hazardous Substance “) under any federal, state or local 

 
laws, regulations, ordinances, codes or rules (“Environmental Laws”), (ii) Debtor has no knowledge, after due inquiry, of any prior use or existence of any Hazardous Substance on
the Property by any prior owner of or person using the Property, (iii) without limiting the generality of the foregoing, Debtor has no knowledge, after due inquiry, that the Property contains asbestos, polychlorinated biphenyl components (PCBs)
or underground storage tanks, (iv) there are no conditions existing currently or likely to exist during the term of this Agreement which would subject Debtor to any damages, penalties, injunctive relief or clean-up costs in any governmental or
regulatory action or third-party claim relating to any Hazardous Substance, (v) Debtor is not subject to any court or administrative proceeding, judgment, decree, order or citation relating to any Hazardous Substance, and (vi) Debtor in
the past has been, at the present is, and in the future will remain in compliance with all Environmental Laws. Debtor shall indemnify and hold harmless Lender, its directors, officers, employees and agents from all loss, cost (including reasonable
attorneys’ fees and legal expenses), liability and damage whatsoever directly or indirectly resulting from, arising out of, or based upon (1) the presence, use, storage, deposit, treatment, recycling or disposal, at any time, of any
Hazardous Substance on, under, in or about the Property, or the transportation of any Hazardous Substance to or from the Property, (2) the violation or alleged violation of any Environmental Law, permit, judgment or license relating to the
presence, use, storage, deposit, treatment, recycling or disposal of any Hazardous Substance on, under, in or about the Property, or the transportation of any Hazardous Substance to or from the Property, or (3) the imposition of any
governmental lien for the recovery of environmental clean-up costs expended under any Environmental Law. Debtor shall immediately notify Lender in writing of any governmental or regulatory action or third-party claim instituted or threatened in
connection with any Hazardous Substance described above on, in, under or about the Property. 
 (n) Employees. There are no unpaid wages due
employees of Debtor and there are no outstanding liens against assets of Debtor for unpaid wages due employees of Debtor. 
 (o) Fixtures.
If any of the Collateral is affixed to real estate, the legal description of the real estate set forth in the UCC Financing Statement signed or authorized by Debtor is true and correct. 

4. SHIPPERS 
 Shippers
authorized to draw drafts on Lender under section 7(c) are: 
 THIS AGREEMENT CONTAINS ADDITIONAL PROVISIONS ON PAGES 2 AND 3. 

ADDITIONAL PROVISIONS 

5. SALE AND COLLECTIONS 

(a) Sale of Inventory. So long as no default exists under any of the Obligations or this Agreement, Debtor may (a) sell inventory in the
ordinary course of Debtor’s business for cash or on terms customary in the trade, at prices not less than any minimum sale price shown on instruments evidencing Obligations and describing inventory, or (b) lease or license inventory on
terms customary in the trade. 
 (b) Verification and notification. Lender may verify Collateral in any manner, and Debtor shall assist
Lender in so doing. Upon default Lender may at any time and Debtor shall, upon request of Lender, notify the account debtors or other persons obligated on the Collateral to make payment directly to Lender and Lender may enforce collection of,
settle, compromise, extend or renew the indebtedness of such account debtors or other persons obligated on the Collateral. Until account debtors or other persons obligated on the Collateral are so notified, Debtor, as agent of Lender, shall make
collections and receive payments on the Collateral. 
 (c) Deposit with Lender. At any time Lender may require that all proceeds of
Collateral received by Debtor shall be held by Debtor upon an express trust for Lender, shall not be commingled with any other funds or property of Debtor and shall be turned over to Lender in precisely the form received (but endorsed by Debtor if
necessary for collection) not later than the business day following the day of their receipt. Except as provided in Section 5(d) below, all proceeds of Collateral received by Lender directly or from Debtor shall be applied against the
Obligations in such order and at such times as Lender shall determine. 
 (d) Accounting. If the extent to which Lender’s security
interest in the Collateral is a purchase money security interest depends on the application of a payment to a particular obligation of Debtor, the payment shall first be applied to obligations of Debtor for which Debtor did not create a security
interest in the order in which those obligations were incurred and then to obligations of Debtor for which Debtor did create a security interest, including the Obligations secured by the Collateral, in the order in which those obligations were
incurred; provided, however, that Lender shall retain its security interest in all Collateral regardless of the allocation of payments. 

6. DEBTOR’S COVENANTS 

(a) Maintenance of Collateral. Debtor shall: maintain the Collateral in good condition and repair and not permit its value to be impaired;
keep it free from all liens, encumbrances and security interests (other than Lender’s security interest); defend it against all claims and legal proceedings by persons other than Lender; pay and discharge when due all taxes, license fees,
levies, and other charges upon it; not sell, lease, license or otherwise transfer or dispose of it or permit it to become a fixture or an accession to other goods, except for sales, leases or licenses of inventory as provided in this Agreement; not
permit it to be used in violation of any applicable law, regulation or policy of insurance; and, as to Collateral consisting of instruments, chattel paper and letter of credit rights, preserve rights in it against prior parties. Loss of or damage to
the Collateral shall not affect the liabilities of any Debtor or Borrower under this Agreement, the Obligations or other rights of Lender with respect to the Collateral. 

(b) Insurance. Debtor shall keep the Collateral and Lender’s interest in it insured under policies with such provisions, for such amounts
and by such insurers as shall be satisfactory to Lender from time to time, and shall furnish evidence of such insurance satisfactory to Lender. Subject to Lender’s satisfaction, Debtor is free to select the insurance agent or insurer through
which the insurance is obtained. Debtor assigns (and directs any insurer to pay) to Lender the proceeds of all such insurance and any premium refund, and authorizes Lender to endorse in the name of Debtor any instruments for such proceeds or refunds
and, at the option of Lender, to apply such proceeds and refunds to any unpaid balance of the Obligations, whether or not due, and/or to restoration of the Collateral, returning any excess to Debtor. Each insurance policy shall contain a standard
lender’s loss payable endorsement in favor of Lender and shall provide that the policy shall not be cancelled, and the coverage shall not be reduced, without at least 10 days’ prior written notice by the insurer to Lender. Lender is
authorized, in the name of Debtor or otherwise, to make, adjust and/or settle claims under any credit insurance financed by Lender or any insurance on the Collateral, or cancel the same after the occurrence of an event of default. If Debtor fails to
keep any required insurance on the Collateral, Lender may purchase such insurance for Debtor, such insurance may be acquired by Lender solely to protect the interest of Lender (and will not cover Debtor’s equity in the Collateral), and
Debtor’s obligation to repay Lender shall be in accordance with Section 7(a). · 
 (c) Maintenance of security interest.
Debtor shall pay all expenses and upon request, take any action reasonably deemed advisable by Lender to preserve the Collateral or to establish, evidence, determine and maintain priority of, perfect, continue perfected, terminate and/or enforce
Lender’s interest in it or rights under this Agreement. Debtor authorizes Lender to file Uniform Commercial Code financing statements describing the Collateral (including describing the Collateral as “all assets” or with words of
similar effect if Section 2(a) is checked) and amendments and correction statements to such financing statements and ratifies any such financing statement or amendment filed prior to the date of this Agreement. Debtor will obtain for and
provide to Lender control of Collateral and other security for the Obligations for which control may be required or requested to perfect Lender’s security interest under applicable law, including, without limitation, the execution of control
agreements by and between Debtor, Lender and any necessary third party. If the Collateral is in possession of a third party, Debtor will also join with Lender at its request in notifying the third party of Lender’s security interest and
obtaining an acknowledgment from the third party that it is holding the Collateral for the benefit of Lender. 

 (d) Taxes and other charges. Debtor shall pay and discharge all lawful taxes, assessments and
government charges upon Debtor or against its properties prior to the date on which penalties attach, unless and to the extent only that such taxes, assessments and charges are contested in good faith and by appropriate proceedings by Debtor. 

(e) Employees. Debtor shall pay all wages when due to employees of Debtor and shall not permit any lien to exist against the assets of Debtor
for unpaid wages due employees of Debtor. 
 (f) Records and statements. Debtor shall furnish to Lender financial statements at least
annually and such other financial information respecting Debtor at such times and in such form as Lender may request. Debtor shall keep accurate and complete records respecting the Collateral in such form as Lender may approve. At such times as
Lender may require, Debtor shall furnish to Lender a statement certified by Debtor and in such form and containing such information as may be prescribed by Lender, showing the current status and value of the Collateral. Debtor shall furnish to
Lender such reports regarding the payment of wages to employees of Debtor and the number of employees of Debtor as Lender may from time to time request, and without request shall furnish to Lender a written report immediately upon any material
increase in the number of employees of Debtor, the failure of Debtor to pay any wages when due to employees of Debtor or the imposition of any lien against the assets of Debtor for unpaid wages due employees of Debtor. 

(g) Inspection of Collateral. At reasonable times Lender may examine the Collateral and Debtor’s records pertaining to it, wherever
located, and make copies of records, and Debtor shall assist lender in so doing. 
 (h) Service charge. In addition to the required payments
under the Obligations and this Agreement, Debtor shall pay Lender’s then current service charges for servicing and auditing in connection with this Agreement. 

(i) Chattel paper. Lender may require that chattel paper constituting Collateral shall be on forms approved by Lender. Unless it consists of
electronic paper, Debtor shall promptly mark all chattel paper constituting Collateral, and all copies, to indicate conspicuously Lender’s interest and, upon request, deliver them to Lender. If it consists of electronic chattel paper, Debtor
shall promptly notify Lender of the existence of the electronic chattel paper and, at the request of Lender, shall take such actions as Lender may reasonably request to vest in Lender control of such electronic chattel paper under applicable law.

 (j) United States contracts. If any Collateral arose out of contracts with the United States or any of its departments, agencies or
instrumentalities, Debtor will notify Lender and execute writings required by Lender in order that all money due or to become due under such contracts shalt be assigned to Lender and proper notice of the assignment given under the Federal Assignment
of Claims Act. 
 (k) Modifications. Without the prior written consent of Lender, Debtor shall not alter, modify, extend, renew or cancel
any accounts, letter of credit rights or chattel paper constituting Collateral. 
 (l) Returns and repossessions. Debtor shall promptly
notify Lender of the return to or repossession by Debtor of good’s underlying any Collateral and Debtor shall hold and dispose of them only as Lender directs. 

(m) Promissory Notes, Chattel Paper and Investment Property. If Debtor shall at any time hold or acquire Collateral consisting of promissory
notes, chattel paper or certificated securities, Debtor shall endorse, assign and deliver the same to Lender accompanied by such instruments of transfer or assignment duly executed in blank as Lender may from time to time request. 

(n) Change of name, address or organization. Debtor shall not change Debtor’s legal name or address without providing at least 30
days’ prior written notice of the change to Lender. Debtor if it is an organization shall not change its type of organization or state under whose law it is organized and shall preserve its organizational existence, and Debtor whether or not
Debtor is an organization shall not, in one transaction or in a series of related transactions, merge into or consolidate with any other organization, change Debtor’s legal structure or sell or transfer all or substantially all of Debtor’s
assets. 
 7. RIGHTS OF LENDER 

(a) Authority to perform for Debtor. Upon the occurrence of an event of default or if Debtor fails to perform any of Debtor’s duties set
forth in this Agreement or in any evidence of or document relating to the Obligations, Lender is authorized, in Debtor’s name or otherwise, to take any such action including without limitation signing Debtor’s name or paying any amount so
required, and the cost shall be one of the Obligations secured by this Agreement and shall be payable by Debtor upon demand with interest from the date of payment by Lender at the highest rate stated in any evidence of any Obligation but not in
excess of the maximum rate permitted by law. 
 (b) Charging a Debtor’s credit balance. Unless a lien would be prohibited by law or
would render a nontaxable account taxable, Debtor who is also a Borrower grants lender, as further security for the Obligations, a security interest and lien in any deposit account such Debtor may at any time have with Lender and other money now or
hereafter owed such Debtor by Lender, and agrees that Lender may, at any time after the occurrence of an event of default, without prior notice or demand, set-off all or any part of the unpaid balance of the Obligations against any deposit balances
or other money now or hereafter owed such Debtor by Lender. 
 (c) Power of attorney. Debtor irrevocably appoints any officer of Lender as
Debtor’s attorney, with power after an event of default to receive, open and dispose of all mail addressed to Debtor (and Lender shall not be required as a condition to the exercise of this power to prove the occurrence of an event of default
to the Post Office); to notify the Post Office authorities to change the address for delivery of all mail addressed to Debtor to such address as Lender may designate; to endorse the name of Debtor upon any instruments which may come into
Lender’s possession; and to sign and make draws under any letter of credit constituting Collateral on Debtor’s behalf. Debtor agrees that Obligations may be created by drafts drawn on Lender by shippers of inventory named in
Section 4. Debtor authorizes Lender to honor any such draft accompanied by invoices aggregating the amount of the draft and describing inventory to be shipped to Debtor and to pay any such invoices not accompanied by drafts. Debtor appoints any
employee of Lender as Debtor’s attorney, with full power to sign Debtor’s name on any instrument evidencing an Obligation, or any renewals or extensions, for the amount of such drafts honored by Lender and such instruments may be payable
at fixed times or on demand, shall. bear interest at the rate from time to time fixed by Lender and Debtor agrees, upon request of Lender, to execute any such instruments. This power of attorney to execute instruments may be revoked by Debtor only
by written notice to Lender and no such revocation shall affect any instruments executed prior to the receipt by Lender of such notice. All acts of such attorney are ratified and approved and such attorney is not liable for any act or omission or
for any error of judgment or mistake of fact or law. This power is a power coupled with an interest and is given as security for the Obligations, and the authority conferred by this power is and shall be irrevocable and shall remain in full force
and effect until renounced by Lender except as otherwise expressly provided in this Section 7(c). 
 (d) Non-liability of Lender.
Lender has no duty to determine the validity of any invoice, the authority of any shipper named in Section 4 to ship goods to Debtor or compliance with any order of Debtor. Lender has no duty to protect, insure, collect or realize upon the
Collateral or preserve rights in it against prior parties. Debtor releases Lender from any liability for any act or omission relating to the Obligations, the Collateral or this Agreement, except Lender’s willful misconduct. 

8. DEFAULT 
 Upon the
occurrence of one or more of the following events of default; 
 (a) Nonperformance. Any of the Obligations are not paid when due, or
Borrower or Debtor, as applicable, fails to perform, or rectify breach of, any warranty or covenant or other undertaking in this Agreement or in any evidence of or document relating to the Obligations or an event of default occurs under any evidence
of or document relating to any other obligation secured by the Collateral; 

 (b) Inability to Perform. Borrower, Borrower’s spouse, Debtor or a guarantor or surety of
any of the Obligations dies, ceases to exist, becomes insolvent or the subject of bankruptcy or insolvency proceedings or any guaranty of the Obligations is revoked or becomes unenforceable for any reason; 

(c) Misrepresentation. Any representation or warranty made to induce Lender to extend credit to Debtor or Borrower, under this Agreement or
otherwise, is false in any material respect when made; or 
 (d) Insecurity. At any time Lender believes in good faith that the prospect of
payment or performance of any of the Obligations or performance under any agreement securing the Obligations is impaired; 
 all of the Obligations shall,
at the option of Lender and without notice or demand, become immediately payable; and Lender shall have all rights and remedies for default provided by the Wisconsin Uniform Commercial Code and this Agreement, as well as any other applicable law,
and under any evidence of or document relating to any Obligation, and all such rights and remedies are cumulative and may be exercised, from time to time. With respect to such rights and remedies: 

(e) Repossession. Lender may take possession of Collateral without notice or hearing, which Debtor waives; 

(f) Assembling Collateral. Lender may require Debtor to assemble the Collateral and to make it available to Lender at any place reasonably
designated by Lender; 
 (g) Notice of disposition. Written notice, when required by law, sent to any address of Debtor in this Agreement at
least 10 calendar days (counting the day of sending) before the date of a proposed disposition of the Collateral is reasonable notice; 

(h) Expenses and application of proceeds. Debtor shall reimburse Lender for any expense incurred by Lender in protecting or enforcing its
rights under this Agreement before and after judgment, including, without limitation, reasonable attorneys’ fees and legal expenses (including those incurred in successful defense or settlement of any counterclaim brought by Debtor or incident
to any action or proceeding involving Debtor brought pursuant to the United States Bankruptcy Code) and all expenses of taking possession, holding, preparing for disposition and disposing of Collateral (provided, however, Lender has no obligation to
clean-up or otherwise prepare the Collateral for sale). After deduction of such expenses, Lender shall apply the proceeds of disposition to the extent actually received in cash to the Obligations in such order and amounts as it elects or as
otherwise required by this Agreement. If Lender sells any Collateral on credit, Debtor will be credited only with payments that the purchaser actually makes and that Lender actually receives and applies to the unpaid balance of the purchase price of
the Collateral; and 
 (i) Waiver. Lender may permit Debtor or Borrower to remedy any default without waiving the default so remedied, and
Lender may waive any default without waiving any other subsequent or prior default by Borrower or Debtor. Lender shall continue to have all of its rights and remedies under this Agreement even if It does not fully and properly exercise them on all
occasions. 
 9. WAIVER AND CONSENT 

Each Debtor who is not also a Borrower expressly consents to and waives notice of the following by Lender without affecting the liability of
any such Debtor: (a) the creation of any present or future Obligation, default under any Obligation, proceedings to collect from any Borrower or anyone else, (b) any surrender, release, impairment, sale or other disposition of any security
or collateral for the Obligations, (c) any release or agreement not to sue any guarantor or surety of the Obligations, (d) any failure to perfect a security interest in or realize upon any security or collateral for the Obligations,
(e) any failure to realize upon any of the Obligations or to proceed against any Borrower or any guarantor or surety, (f) any renewal or extension of the time of payment, (g) any allocation and application of payments and credits and
acceptance of partial payments, (h) any application of the proceeds of disposition of any collateral for the Obligations to any obligation of any Debtor or Borrower secured by such collateral in such order and amounts as it elects, (i) any
determination of what, if anything, may at any time be done with reference to any security or collateral, and (j) any settlement or compromise of the amount due or owing or claimed to be due or owing from any Borrower, guarantor or surety. 

 10. INTERPRETATION 

The validity, construction and enforcement of this Agreement are governed by the internal laws of Wisconsin except to the extent such laws are
preempted by federal law. All terms not otherwise defined have the meanings assigned to them by the Wisconsin Uniform Commercial Code, as amended from time to time, provided, however, that the term “instrument “ shall be such term as
defined in the Wisconsin Uniform Commercial Code-Secured Transactions Chapter 409. All references in this Agreement to sections of the Wisconsin Statutes are to those sections as they may be renumbered from time to time. Invalidity of any provision
of this Agreement shall not affect the validity of any other provision. 
 11. PERSONS BOUND 

Each person signing this Agreement is a Debtor. All Debtors are jointly and severally liable under this Agreement. This Agreement benefits
Lender, its successors and assigns, and binds Debtor(s) and their respective heirs, personal representatives, successors and assigns and shall bind all persons and entities who become bound as a debtor to this Agreement.  ̈ If checked here, this Agreement amends and replaces in their entirety the provisions of all existing Selective Business Security Agreements between Debtor and Lender; provided, however, that all security
interests granted to Lender under those existing security agreements shall remain in full force and effect, subject to the provisions of this Agreement. Debtor acknowledges receipt of a completed copy of this Agreement. 

12. ENTIRE AGREEMENT 

THIS AGREEMENT IS INTENDED BY DEBTOR AND LENDER AS A FINAL EXPRESSION OF THIS AGREEMENT AND AS A COMPLETE AND EXCLUSIVE STATEMENT OF ITS
TERMS, THERE BEING NO CONDITIONS TO THE ENFORCEABILITY OF THIS AGREEMENT, AND THIS AGREEMENT MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES TO THIS AGREEMENT. THERE
ARE NO ORAL AGREEMENTS AMONG THE PARTIES TO THIS AGREEMENT. THIS AGREEMENT MAY NOT BE SUPPLEMENTED OR MODIFIED EXCEPT IN WRITING SIGNED BY LENDER AND DEBTOR. 

13. OTHER PROVISIONS 
 (If
none are stated below, there are no other Provisions.) 
  

											
	Address:	 	 1125 N. Broadway
	 		 	 Muskie Proppant, LLC
	 	(SEAL)
	SEE SECTIONS 3(j) AND (k)	 		 		 		 	
			
	 Menomonie, WI 54751
	 		 	 A Delaware Limited Liability Company

TYPE OF ORGANIZATION

					
	 DELAWARE
	 		 	By:	 	 /s/ Cyrus W. Ingraham, III
	 	(SEAL)
	STATE OF ORGANIZATION	 		 	Cyrus W. Ingraham, III, CEO	 	
					
		 		 		 	  
	 	(SEAL)
					
		 		 		 	  
	 	(SEAL)
					
		 		 		 	  
	 	(SEAL)

									
	Address:	 	    
	 		 	    
	 	(SEAL)
	SEE SECTIONS 3(j) AND (k)	 		 		 	
			
	    
	 		 	    

TYPE OF ORGANIZATION

				
	    
	 		 	  
	 	(SEAL)
	STATE OF ORGANIZATION	 		 		 	
					
		 		 		 	  
	 	(SEAL)
					
		 		 		 	  
	 	(SEAL)
					
		 		 		 	  
	 	(SEAL)

  

			
	WBA444.GPF rev. 9/2011	  	 Selective Business Security Agreement

Page 3 of 3

 Attachment to Selective Business Security Agreement 

Dated January 31, 2013 

Debtor: Muskie Proppant LLC 
 Description
of Collateral Continued 
 11.100 Wet Plant – Furnish (includes Sump #25 & Pump #26) 

11.300 Screens – Furnish – 3 primary – 2 Secondary – Trail Screen – Cables 

11.200 Stark Dry Plan – Furnish 
 11.150 Compositech Vacuum
Belt Filter – Furnish F.O.B. Jobsite 
 15.250 Mechanical – Process Slurry Piping 

5.100 Structural & Access Steel – CFS Equipment 

11.900 Conveyor Systems Interior – Furnish & Install 

15.100 Mech – Plumbing Employee Welfare 
 3.502
Product & Waste Storage & Loadout System 
 Process Water Pumps & Vacuum Sump Pump 

General Trades – OH Doors – Touchup Painting 
 15.190
Large Pressure Tank for Water Supply 
 Damp Sand Reclaim grizzly – hopper – conveyor by RB Scott & Orthman Damp Sand Conveyors

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