SEC Contract Filing

Filing Date: 2022-09-06

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>tm2225154d1_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit&nbsp;10.3</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DIRECTOR NOMINATION AGREEMENT</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Director Nomination Agreement
(this &ldquo;<U>Agreement</U>&rdquo;) is made as of August&nbsp;31, 2022 (the &ldquo;<U>Effective Date</U>&rdquo;), by and among Ring
Energy,&nbsp;Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo;), Stronghold Energy II Operating, LLC, a Delaware limited liability
company (&ldquo;<U>Stronghold OpCo</U>&rdquo;) and Stronghold Energy II Royalties, LP, a Delaware limited partnership (&ldquo;<U>Stronghold
RoyaltyCo</U>,&rdquo; together with Stronghold OpCo, collectively, the &ldquo;<U>Stockholders</U>&rdquo; and each, a &ldquo;<U>Stockholder</U>&rdquo;).
Terms used but not otherwise defined herein shall have the meaning set forth in that certain Purchase and Sale Agreement, dated as of
July&nbsp;1, 2022, by and among the Stockholders and the Company (as amended, restated or otherwise modified from time to time and together
with all exhibits, schedules, and other attachments thereto, the &ldquo;<U>Purchase Agreement</U>&rdquo;).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RECITALS</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>WHEREAS</B></FONT>,
the Company and the Stockholders are parties to the Purchase Agreement, pursuant to which, and subject to the terms and conditions contained
therein, the Company has agreed to issue 21,339,986 shares of fully paid and nonassessable shares of the Company&rsquo;s common stock,
par value $0.001 per share (the &ldquo;<U>Common Stock</U>&rdquo;), and 153,176 shares of fully paid and nonassessable shares of preferred
stock, par value $0.001 per share (the &ldquo;<U>Series&nbsp;A Preferred Stock</U>&rdquo;) that are convertible into shares of Common
Stock pursuant to the terms of the Certificate of Designation for the Series&nbsp;A Preferred Stock (the &ldquo;<U>Certificate of Designation</U>&rdquo;)
adopted by the Company as of the date hereof;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>WHEREAS</B></FONT>,
the Company and the Stockholders desire to enter into this Agreement in order to generally set forth their respective rights and responsibilities,
and to establish various arrangements and restrictions with respect to, among other things, (a)&nbsp;the governance of the Company and
(b)&nbsp;other related matters with respect to the Company.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOW,
THEREFORE</B></FONT>, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>Article&nbsp;I
</B></FONT><B><BR>
DEFINITIONS</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section&nbsp;1.01&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><U>Definitions</U>.
As used in this Agreement, the following terms shall have the following meanings:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&ldquo;<U>Affiliate</U>&rdquo;
with respect to any party to this Agreement, means any Person directly or indirectly controlled by, controlling, or under common control
with, such party, including any subsidiary of such party and any &ldquo;affiliate&rdquo; of such party within the meaning of Rule&nbsp;12b-2
of the Exchange Act. As used in this definition, &ldquo;<U>control</U>&rdquo; means possession, directly or indirectly, of the power to
direct or cause the direction of management, policies, or action through ownership of voting securities, contract, voting trust, or membership
in management or in the group appointing or electing management or otherwise through formal or informal arrangements or business relationships.
The terms &ldquo;<U>controlled by</U>,&rdquo; &ldquo;<U>controlling</U>,&rdquo; and other derivatives shall be construed accordingly.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text