<SUBMISSION>
<ACCESSION-NUMBER>0001144204-12-038661
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>12
<PERIOD>20120703
<ITEMS>1.01
<ITEMS>2.03
<ITEMS>3.02
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20120709
<DATE-OF-FILING-DATE-CHANGE>20120709
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AMERICAN PETRO-HUNTER INC
<CIK>0001040482
<ASSIGNED-SIC>1389
<IRS-NUMBER>980171619
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-22723
<FILM-NUMBER>12953317
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>17470  NORTH PACESETTER WAY
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85255
<PHONE>480-305-2052
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>17470  NORTH PACESETTER WAY
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85255
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>TRAVELPORT SYSTEMS INC
<DATE-CHANGED>20001129
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WOLF INDUSTRIES INC
<DATE-CHANGED>19970604
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v318014_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>July 3, 2012</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">Date of Report (Date
of earliest event reported)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>AMERICAN
PETRO-HUNTER, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; text-autospace: none; text-align: center"><B>Nevada</B>&nbsp;</TD>
    <TD STYLE="width: 2%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 32%; text-autospace: none; font-weight: bold; text-align: center">0-22723</TD>
    <TD STYLE="width: 2%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 32%; text-autospace: none; font-weight: bold; text-align: center">98-0171619</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">(State or other jurisdiction of&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">(Commission File&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">(IRS Employer Identification&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">incorporation)&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">Number)&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">No.)&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>17470 North Pacesetter Way</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Scottsdale, AZ&nbsp; 85255</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(480) 305-2052</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">(Address and telephone number of principal executive
offices) (Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under
the Act (17 CFR 230.425)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a -12)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d -2(b))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e -4(c))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Section 1 - Registrant&rsquo;s Business and Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 1.01</B></TD><TD STYLE="text-align: justify"><B>Entry into a Material Definitive Agreement.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Notes Amendment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 3, 2012, American Petro-Hunter
Inc. (the &ldquo;Company&rdquo;) entered into a Third Amendment to Promissory Notes (the &ldquo;Notes Amendment&rdquo;) with an
accredited investor (the &ldquo;Holder&rdquo;) to amend those certain Secured Convertible Promissory Notes issued by Holder to
the Company, dated August 13, 2009, as amended (the &ldquo;First Note&rdquo;), and September 15, 2009, as amended (the &ldquo;Second
Note&rdquo; and together with the First Note, the &ldquo;Notes&rdquo;).&nbsp;</P>

<P>The Notes Amendment terminates the security interest and royalty interest Holder had in certain assets of the Company. The
Notes Amendment also revises the repayment terms of the Notes, such that all amounts owed under the Notes will be due and payable
in two equal installments if the Company is successful in obtaining other debt financing, but in no event later than December
31, 2014, and the interest rate on the Notes will be reduced to ten percent (10%) upon the Company announcing the receipt of the
first $1,000,000 in debt financing.</P>

<P>The Notes Amendment is attached to this report as Exhibit 10.1 and the terms and conditions
are incorporated herein. The foregoing statements are not intended to be a complete description of all terms and conditions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Lien Termination</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: black">On July 3, 2012,
</FONT>the Company and Maxum Overseas Fund, a foreign institutional investor (&ldquo;Maxum&rdquo;), agreed to enter into a Lien
Termination Agreement (the &ldquo;Lien Termination&rdquo;), whereby Maxum agreed to terminate its security interest in certain
assets of the Company in exchange for the grant by the Company of certain antidilution protections with respect to the shares issued
upon conversion of Maxum&rsquo;s promissory notes (the &ldquo;Maxum Conversion Shares&rdquo;). The antidilution protections provide
that in the event the Company issues warrants to a third party with an exercise price less than the conversion price of the Maxum
Conversion Shares, then Maxum will be issued additional shares of common stock in accordance with a specific formula outlined in
the Lien Termination agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Lien Termination is attached to this
report as Exhibit 10.2 and the terms and conditions are incorporated herein. The foregoing statements are not intended to be a
complete description of all terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Royalty Termination</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black">On July 3, 2012, the Company and
</FONT>Centennial Petroleum Partners, LLC <FONT STYLE="color: black">(&ldquo;CPP&rdquo;), agreed to enter into a Royalty Termination
Agreement (the &ldquo;Royalty Termination&rdquo;), whereby CPP agreed to terminate its royalty interest in certain assets of the
Company in exchange for the grant by the Company of certain antidilution protections with respect to the shares issued upon conversion
of CPP&rsquo;s promissory note (the &ldquo;CPP Conversion Shares&rdquo;). </FONT>The antidilution protections provide that in the
event the Company issues warrants to a third party with an exercise price less than the conversion price of the CPP Conversion
Shares, then CPP will be issued additional shares of common stock in accordance with a specific formula outlined in the Royalty
Termination agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Royalty Termination is attached to this report as Exhibit
10.3 and the terms and conditions are incorporated herein. The foregoing statements are not intended to be a complete description
of all terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Debt Financing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On July 3, 2012, the Company entered into a Purchase Agreement
with ASYM Energy Opportunities LLC (&ldquo;ASYM&rdquo;), pursuant to which ASYM agreed to provide up to $10,000,000 in debt financing
to the Company (the &ldquo;Purchase Agreement&rdquo;), the first $1,000,000 tranche of which was funded with respect to $300,000
on the July 6, 2012. The remaining $700,000 of the initial $1,000,000 tranche will be funded only upon the satisfaction of certain
conditions, including completion of due diligence by ASYM, satisfaction by the Company of certain financial tests, and the availability
of funds of ASYM. Additionally, subject to such conditions and certain others, the Company shall be entitled to draw the remaining
$9,000,000 in financing in tranches of $1,000,000. In connection with the financing, ASYM will receive a $100,000 one time administrative
fee, due upon the closing of the second $1,000,000 in financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Purchase Agreement, ASYM is to receive a first
priority security interest in all of the Company&rsquo;s right, title and interest in and to all properties and assets of the Company
pursuant to the terms of a First Lien Security Agreement and the Mortgage, Deed of Trust, Assignment of Production, Security Agreement,
Fixture Filing and Financing Statement (the &ldquo;Mortgage&rdquo;). In connection with the grant of the security interest, the
Company entered into a Deposit Account Control (Default) Agreement with ASYM to perfect ASYM&rsquo;s security interest in certain
bank accounts maintained by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each senior secured promissory note (the &ldquo;Note&rdquo;)
evidencing each tranche of financing will bear interest at the rate of fifteen percent (15%) per annum and mature on June 30, 2015,
at an amount equal to 110% of the principal amount. Additionally, each Note is subject to early repayment in the event the Company
does not meet certain financial covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with each tranche of funding, the Company will
issue ASYM a warrant equal to 83% of the tranche amount, divided by the warrant exercise price per share (the &ldquo;Exercise Price&rdquo;).
The Exercise Price shall be equal to the lesser of (i) $0.20, (ii) eighty five percent (85%) of the volume weighted average price
per share of the Company&rsquo;s common stock for the fifteen days preceding the issuance of any tranche, or (iii) the trailing
ninety (90) net average daily oil production multiplied by $40,000, the product of which is reduced by the Company&rsquo;s total
debt and any obligations or liabilities (the &ldquo;Net Asset Value&rdquo;), thereafter divided by the Company&rsquo;s fully diluted
number of common shares outstanding. In no case, however, shall the Net Asset Value be less than $500,000. The warrants will have
a term of five years from the date of issuance. The shares of stock issuable upon exercise of the warrants are entitled to demand
registration rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the Purchase Agreement, the Company is engaging
ASYM Management LLC (&quot;ASYM Management&quot;) as a consultant with respect to management, financial, strategic and operational
issues, pursuant to the terms of a Management Services Agreement (the &quot;Services Agreement&quot;). The Services Agreement shall
expire only upon the sale, liquidation or dissolution of the Company or termination by ASYM Management for convenience. Pursuant
to the terms of the Services Agreement, ASYM Management will receive a management fee equal to $12,000 per month, plus two percent
(2%) of any amounts undrawn by the Company pursuant to the Purchase Agreement. In addition, the Company will issue ASYM Management
a warrant equal to 17% of the tranche amount divided by the Exercise Price of the warrant.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black">The Purchase Agreement, form
of Warrant, form of Senior Secured Promissory Note, First Lien Security Agreement, Management Services Agreement, Mortgage and
</FONT>Deposit Account Control (Default) Agreement<FONT STYLE="color: black"> are attached to this report as Exhibits 10.4 through
10.10, respectively, and the terms and conditions are incorporated herein. The foregoing statements are not intended to be a complete
description of all terms and conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Section 2 - Financial Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 2.03</B></TD><TD STYLE="text-align: justify"><B>Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information regarding the ASYM Purchase
Agreement contained in Item 1.01 above is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Section 3 - Securities and Trading Markets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 3.02</B></TD><TD STYLE="text-align: justify"><B>Unregistered Sales of Equity Securities</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information regarding the ASYM Purchase Agreement contained
in Item 1.01 above is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As more fully described in Section 1.01 above, in connection
with the Purchase Agreement, on July 6, 2012, the Company issued a warrant to ASYM for the purchase of such number of shares as
is equal to eighty percent (80%) of the $300,000 in initial funding, divided by the Exercise Price (the &ldquo;Warrant&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Warrant was issued in reliance upon Rule 506 of Regulation
D of the Securities Act, and comparable exemptions for sales to &ldquo;accredited&rdquo; investors under state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Section 8 - Other Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 8.01</B></TD><TD STYLE="text-align: justify"><B>Other Events.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 9, 2012, the Company issued a press
release announcing the transactions contemplated by the Purchase Agreement. A copy of the press release is attached to this report
as Exhibit 99.1 and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Section 9 - Financial Statements and Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 9.01</B></TD><TD STYLE="text-align: justify"><B>Financial Statements and Exhibits</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 8%; text-autospace: none; font-weight: bold">Exhibit</TD>
    <TD STYLE="width: 2%; text-autospace: none">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 90%; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold">No.</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.1</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Notes Amendment</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.2</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Lien Termination</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.3</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Royalty Termination</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.4</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Purchase Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.5</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Form of Warrant</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.6</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Form of Senior Secured Promissory Note</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.7</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">First Lien Security Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.8</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Management Services Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.9</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Mortgage</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.10</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Deposit Account Control (Default) Agreement</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">99.1</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Press Release</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold">AMERICAN PETRO-HUNTER INC.,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">a Nevada Corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-autospace: none">Dated: July 9, 2012</TD>
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid; text-autospace: none">/s/ Robert B. McIntosh</TD>
    <TD STYLE="width: 20%; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">Robert B. McIntosh, Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v318014_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-underline-style: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-underline-style: none">THIRD
AMENDMENT TO PROMISSORY NOTES</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-underline-style: none">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Third Amendment
to Promissory Notes (the &ldquo;<B>Amendment</B>&rdquo;) is made as of July 3, 2012 (the &ldquo;<B>Effective Date</B>&rdquo;) by
and between American Petro-Hunter, Inc., a Nevada corporation (the &ldquo;<B>Company</B>&rdquo;), and John E. Friesen (the &ldquo;<B>Holder</B>&rdquo;
and collectively with the Company, the &ldquo;<B>Parties</B>&rdquo;), and amends that certain Secured Convertible Promissory Note,
dated August 13, 2009, between the Company and the Holder (the &ldquo;<B>First Note</B>&rdquo;), and that certain Secured Convertible
Promissory Note, dated September 15, 2009, between the Company and the Holder, each as amended (the &ldquo;<B>Second Note</B>&rdquo;,
and together with the First Note, the &ldquo;<B>Prior Notes</B>&rdquo;) and certain documents related thereto as further described
below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS,</B> the
Company and the Holder are parties to those certain Prior Notes, pursuant to which the Company, as of the date of this Amendment
owes to the Holder $640,000, and pursuant to which the Holder has the option to convert the Prior Notes into shares of common stock
of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS, </B>in
connection with the issuance of the Prior Notes<B> </B>the Company granted a security interest (the &ldquo;<B>Security Interest</B>&rdquo;)
and assigned a royalty interest (the &ldquo;<B>Royalty Interest</B>&rdquo;) in certain of its assets to the Holder, pursuant to
the Note Purchase Agreement, dated August 13, 2009 (the &ldquo;<B>First Purchase Agreement</B>&rdquo;) and the Note Purchase Agreement,
dated September 15, 2009 (the &ldquo;<B>Second Purchase Agreement</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS,</B> the
Company and the Holder each desire to amend the Prior Notes to terminate the Security Interest and Royalty Interest, revise the
repayment terms, and to otherwise modify the Prior Notes as provided herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW THEREFORE,</B>
in consideration of the promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties agree
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="text-transform: none"><U>AGREEMENT</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Termination
of Security Interest and Royalty Interest</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">1.1&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment
of First Note</U>. The Company and the Holder each agrees that Section 7 of the First Note is hereby amended and restated to read
in its entirety as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&ldquo;Intentionally Reserved.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">1.2&nbsp;&nbsp;&nbsp;<U>Amendment
of First Purchase Agreement</U>. The Company and the Holder each agrees that Exhibit B (Form of Security Agreement) and Exhibit
C (Form of Collateral Assignment of Royalties) of the First Purchase Agreement are hereby deleted in their entirety and Section
5 of the First Purchase Agreement is hereby amended and restated to read in its entirety as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&ldquo;Intentionally Reserved.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">1.3&nbsp;&nbsp;&nbsp;<U>Amendment
of Second Note</U>. The Company and the Holder each agrees that Section 7 of the Second Note is hereby amended and restated to
read in its entirety as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&ldquo;Intentionally Reserved.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">1.4&nbsp;&nbsp;&nbsp;<U>Amendment
of Second Purchase Agreement</U>. The Company and the Holder each agrees that Exhibit B (Form of Security Agreement) of the Second
Purchase Agreement is hereby deleted in its entirety and Section 5 of the Second Purchase Agreement is hereby amended and restated
to read in its entirety as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&ldquo;Intentionally Reserved.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">1.5&nbsp;&nbsp;<U>Termination
of Security Interest</U>. In consideration of the covenants and agreements set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree that the Security Interest is hereby terminated
and the Security Agreements dated August 13, 2009 and September 15, 2009, and any references to the Security Interest in any other
documents between the Parties shall be of no further force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">1.6&nbsp;&nbsp;<U>Termination
Statement</U>. Simultaneously with the execution of this Amendment, Holder will file a UCC-3 Termination Statement prepared by
the Company to indicate the termination of the Security Interest contemplated hereby, in any jurisdiction where the Security Interest
had been recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">1.7&nbsp;&nbsp;<U>Royalty
Interest</U>. In consideration of the covenants and agreements set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties hereby acknowledge and agree that any Royalty Interest the
Holder may have which has not already terminated by its terms, is hereby terminated and shall be of no further force or effect,
no further amounts are owed to Holder pursuant to any Royalty Interest, and any references to the Royalty Interest in any other
documents between the Parties shall be of no further force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">1.8&nbsp;&nbsp;<U>Further
Assurances</U>. The Holder will execute and deliver such other documents as may be reasonably necessary and requested by the Company
to terminate the Security Interest or the Royalty Interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">1.9&nbsp;&nbsp;<U>Representations
and Warranties of the Holder</U>. The Holder hereby represents and warrants to the Company that the statements contained in the
following paragraphs of this Section 1.9 are all true and correct as of the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -17.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.55pt; text-align: justify">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Title</I>.
The Holder owns all right, title and interest in and to the Security Interest and Royalty Interest and has not transferred, pledged
or encumbered in any way such interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.55pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.55pt; text-align: justify">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Authority</I>.
The Holder has full power and authority to execute this Amendment and carry out the transactions and agreements contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.55pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.55pt; text-align: justify">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest</I>.
After giving effect to the terminations contemplated in this Section 1, the Holder will have no further security interest, royalty
interest, lien or encumbrance upon any assets of the Company, other than the Prior Notes, as amended hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Repayment
Terms</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">2.1&nbsp;&nbsp;&nbsp;The
Company and the Holder each agrees that the last sentence of the introductory paragraph of the First Note is hereby amended and
restated to read in its entirety as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&ldquo;The amount of principal
and interest due hereon as of July 3, 2012, shall be payable at the principal office of the Company or by mail to the registered
address of the Holder in two equal payments simultaneously with the second and third funding tranches of the proposed debt financing
between the Company and ASYM Energy Opportunities LLC, but in no event later than December 31, 2014 (the &ldquo;<B>Repayment Date</B>&rdquo;),
except that no payment will be required to the extent that such principal and interest are or have been paid or converted pursuant
to the terms hereof or under the Agreement. Notwithstanding anything in this Note to the contrary, the interest accruing on this
Note after and including July 3, 2012, shall be due and payable via cashier&rsquo;s check, wire of immediately available funds,
or cash, by the 15<SUP>th</SUP> day of each month beginning with July 15, 2012.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">2.2&nbsp;&nbsp;&nbsp;The
Company and the Holder each agrees that the last sentence of the introductory paragraph of the Second Note is hereby amended and
restated to read in its entirety as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&ldquo;The amount of principal
and interest due hereon as of July 3, 2012, shall be payable at the principal office of the Company or by mail to the registered
address of the Holder in two equal payments simultaneously with the second and third funding tranches of the proposed debt financing
between the Company and ASYM Energy Opportunities LLC, but in no event later than December 31, 2014 (the &ldquo;<B>Repayment Date</B>&rdquo;),
except that no payment will be required to the extent that such principal and interest are or have been paid or converted pursuant
to the terms hereof or under the Agreement. Notwithstanding anything in this Note to the contrary, the interest accruing on this
Note after and including July 3, 2012, shall be due and payable by the 15<SUP>th</SUP> day of each month beginning with July 15,
2012.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 106.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.8pt; text-align: justify; text-indent: -20.8pt">2.3 &nbsp;&nbsp;The
Company and the Holder each agrees that upon the funding of the first $1,000,000 tranche of debt financing from ASYM Energy Opportunities
LLC, or its affiliates (&ldquo;<B>ASYM</B>&rdquo;), as contemplated by the Purchase Agreement dated on or about the date hereof
(the &ldquo;<B>Purchase Agreement</B>&rdquo;), and the Company&rsquo;s issuance of a press release regarding the terms of the
Purchase Agreement, including disclosure of the aggregate of $10,000,000 of financing to be provided by ASYM, the interest rate
in effect on each of the Prior Notes shall be reduced to an annual interest rate of ten percent (10%).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">3.&nbsp;&nbsp;&nbsp;&nbsp;<B>Effect
on Prior Notes</B>. This Amendment shall be effective on the Effective Date. Except as set forth in this Amendment, the Prior
Notes shall remain in full force and effect in accordance with their original terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">4.&nbsp;&nbsp;&nbsp;&nbsp;<B>Governing
Law</B>. This Amendment shall be governed by the laws of the State of New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">5.&nbsp;&nbsp;&nbsp;&nbsp;<B>Counterparts</B>.
This Amendment may be signed in counterparts, each of which when taken together shall constitute one fully executed document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signature Page Follows]</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
the parties have executed and delivered this Amendment as of the date and year first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-indent: 0in; layout-grid-mode: line; font-weight: bold">COMPANY:</TD>
    <TD STYLE="text-indent: 0in; layout-grid-mode: line; font-weight: bold">HOLDER:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-variant: small-caps">American Petro-Hunter, Inc.</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">a Nevada corporation</TD>
    <TD STYLE="color: red">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="color: red">&nbsp;</TD>
    <TD STYLE="color: red">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%">By:</TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 67%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">Robert McIntosh</TD>
    <TD>John E. Friesen</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">Chief Executive Officer</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-variant: small-caps"><B>[Signature
Page to Third Amendment to Promissory Notes]</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>v318014_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<P STYLE="margin: 0">&nbsp;<B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This LIEN TERMINATION
AGREEMENT (this &ldquo;<U>Agreement</U>&rdquo;) is made as of July 3, 2012 (&ldquo;<U>Effective Date</U>&rdquo;) by and between
Maxum Overseas Fund (the &ldquo;<U>Secured Party</U>&rdquo;) and American Petro-Hunter, Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo;
and collectively with the Secured Party, the &ldquo;<U>Parties</U>&rdquo;).</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and the Secured Party are parties to that certain Security Agreement, dated May 4, 2011 (the &ldquo;<U>Security Agreement</U>&rdquo;),
pursuant to which the Company granted a security interest in certain Collateral (as defined in the Security Agreement) of the Company
to the Secured Party (the &ldquo;<U>Security Interest</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and the Secured Party are parties to that certain Amended and Restated Convertible Debenture, dated May 4, 2011, as amended
(the &ldquo;<U>Convertible Debenture</U>&rdquo;), pursuant to which the Secured Party has the right to convert the outstanding
principal balance and interest under the Convertible Debenture into shares of the Company&rsquo;s common stock (&ldquo;<U>Common
Stock</U>&rdquo;) at $0.25 per share (the &ldquo;<U>Conversion Price</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between
December 1, 2011 and July 3, 2012, the remaining outstanding principal balance and interest of the Convertible Debenture (&ldquo;<U>Total
Debt Amount</U>&rdquo;) was converted by Secured Party into Common Stock (the &ldquo;<U>Debt Conversions</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with a proposed debt financing of the Company by ASYM Energy Partners LLC (&ldquo;<U>ASYM</U>&rdquo;), Secured Party
agreed to undertake the Debt Conversions and the Parties have agreed to terminate the Security Agreement and the Security Interest
contemplated thereby in exchange for the grant to the Secured Party of certain antidilution protections for the Debt Conversions
(the &ldquo;<U>Conversion Price Adjustments</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with each distribution pursuant to the proposed ASYM debt financing, the Company will issue a warrant to ASYM (the &ldquo;<U>ASYM
Warrants</U>&rdquo;), the exercise price of which will be determined based upon certain financial measurements agreed to between
ASYM and the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Conversion Price Adjustments for the Debt Conversions will be based upon the exercise price of the ASYM Warrants.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below, the Parties hereto,
intending to be legally bound, hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Security
INTEREST</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Termination
of Security Interest</U>. In consideration of the covenants and agreements set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree that the Security Interest is hereby terminated
and the Security Agreement and any references to the Security Interest in any other documents between the Parties shall be of no
further force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Termination
Statement</U>. Simultaneously with the execution of this Agreement, Secured Party will file a UCC-3 Termination Statement prepared
by the Company to indicate the termination of the Security Interest contemplated hereby, in any jurisdiction where the Security
Interest had been recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Further
Assurances</U>. The Secured Party will execute and deliver such other documents as may be reasonably necessary and requested by
the Company to release the Collateral from the Security Interest.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Representations
and Warranties of the SECURED PARTY</U>.</FONT> The Secured Party hereby represents and warrants to the Company that the statements
contained in the following paragraphs of this Section 2 are all true and correct as of the date hereof.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Title</U>.
The Secured Party owns all right, title and interest in and to the Security Interest and has not transferred, pledged or encumbered
in any way such Security Interest.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Authority</U>.
The Secured Party has full power and authority to execute this Agreement and carry out the transactions and agreements contemplated
hereby.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Interest</U>.
After giving effect to the termination contemplated in Section 1 above, the Secured Party will have no further security interest,
lien or encumbrance upon any assets of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>ANTi-DILUTION
PROTECTION</U></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>ASYM
Warrant Exercise Price</U>. The exercise price (&ldquo;<U>Warrant Exercise Price</U>&rdquo;) of the ASYM warrants issuable from
time to time shall be equal to the lower of: (i) $0.20 per share, (ii) 85% of the volume weighted average price per share (<U>VWAP</U>)
of Common Stock for the fifteen (15) days preceding the issuance of any loan to the Company by ASYM, or (iii) the trailing 90-day
net average daily oil production of the Company multiplied by $40,000, the product of which is reduced by the Company&rsquo;s debt
and any obligations, thereafter divided by the Company&rsquo;s fully diluted number of shares of Common Stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Additional
Share Issuance</U>. In the event the Warrant Exercise Price for any ASYM Warrant issued in connection with a loan from ASYM is
less than the Conversion Price , the Company will issue to Secured Party additional shares of Common Stock in an amount equal to
(&ldquo;Adjustment Shares&rdquo;): [(Total Debt Amount/Warrant Exercise Price) less (Total Debt Amount/Conversion Price)] minus
any Adjustment Shares previously issued to Secured Party hereunder. By way of example only,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Warrant Exercise Price is $0.20 in connection with the
first loan from ASYM and the Total Debt Amount of $1,000,000, then the Adjustment Shares will equal: [($1,000,000/$0.20) - ($1,000,000/$0.25)]
- 0 = 1,000,000 shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Warrant Exercise Price is $0.15 in connection with the
second loan from ASYM, then the Adjustment Shares will equal: [($1,000,000/$0.15) - ($1,000,000/$0.25)] - 1,000,000 = 1,666,667
shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Warrant Exercise Price is $0.20 in connection with the
third loan from ASYM, then the Adjustment Shares will equal: [($1,000,000/$0.20) - ($1,000,000/$0.25)] - 2,666,667 = 0 shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Rights</U>.
Any Common Stock issued to Secured Party pursuant to Section 3.2 above shall have the same rights, preferences and privileges and
be subject to the same restrictions on transfer as those shares issued in the applicable Debt Conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Subsequent
Warrant Issuances</U>. For the avoidance of doubt, the issuance of shares to Secured Party pursuant to Section 3.2 shall not preclude
the issuance of additional shares of Common Stock in the event the Warrant Exercise Price for any subsequent ASYM Warrant is lower
than the Warrant Exercise Price for the previous ASYM Warrant(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>GENERAL
PROVISIONS</U></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Survival
of Warranties</U>. The representations, warranties and covenants of the Secured Party contained in or made pursuant to this Agreement
shall survive the execution and delivery of this Agreement and shall in no way be affected by any investigation of the subject
matter thereof made by or on behalf of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Successors
and Assigns</U>. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors
and assigns of the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Governing
Law</U>. This Agreement shall be governed by and construed under the internal laws of the State of Nevada as applied to agreements
among Nevada residents entered into and to be performed entirely within Nevada, without reference to principles of conflict of
laws or choice of laws and, to the extent applicable, by federal law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Counterparts</U>.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Headings</U>.
The headings and captions used in this Agreement are used only for convenience and are not to be considered in construing or interpreting
this Agreement. All references in this Agreement to sections, paragraphs, exhibits and schedules shall, unless otherwise provided,
refer to sections and paragraphs hereof and exhibits and schedules attached hereto, all of which exhibits and schedules are incorporated
herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Severability</U>.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision(s) shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be
enforceable in accordance with its terms, provided however that the Conversion Price Adjustments contemplated in Section 3 hereof
and the termination of the Security Interest contemplated in Section 1 are contingent upon each other.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Further
Assurances</U>. From and after the date of this Agreement, upon the request of the Secured Party or the Company, the Company and
the Secured Party shall execute and deliver such instruments, documents or other writings as may be reasonably necessary or desirable
to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Waiver
and Amendment</U>. Any of the terms and provisions of this Agreement may be waived at any time by the Party that is entitled to
the benefit thereof, but only by a written instrument executed by such Party. This Agreement may be amended only by an agreement
in writing executed by the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Delay
or Omission</U>. No delay or omission to exercise any right, power or remedy accruing to any Party hereto shall impair any such
right, power or remedy of such Party nor be construed to be a waiver of any such right, power or remedy nor constitute any course
of dealing or performance hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">[SIGNATURE
PAGE IMMEDIATELY FOLLOWS]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the Parties have caused
this Agreement to be executed and delivered as of the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SECURED PARTY:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-indent: 0in; font-weight: bold"><FONT STYLE="font-variant: small-caps">Maxum Overseas Fund</FONT></TD>
    <TD STYLE="text-indent: 0in; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-indent: 0in; font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; width: 4%">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-indent: 0in; width: 46%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-indent: 0in">Name: Kenneth Taves</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-indent: 0in">Title: Portfolio Manager</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B>American Petro-Hunter,
Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">a Nevada corporation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; text-autospace: none">By:</TD>
    <TD STYLE="width: 46%; border-bottom: windowtext 1pt solid; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 50%; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Robert McIntosh</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Chief Executive Officer</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>v318014_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<P STYLE="margin: 0"></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This ROYALTY TERMINATION
AGREEMENT (this &ldquo;<U>Agreement</U>&rdquo;) is made as of July 3, 2012 (&ldquo;<U>Effective Date</U>&rdquo;) by and between
Centennial Petroleum Partners, LLC (the &ldquo;<U>CPP</U>&rdquo;) and American Petro-Hunter, Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo;,
and collectively with CPP, the &ldquo;<U>Parties</U>&rdquo;).</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the Amended and Restated Convertible Debenture between the Company and Maxum Overseas Fund (&ldquo;<U>Maxum</U>&rdquo;),
the Company and CPP entered into that certain Assignment of Royalties Agreement, dated July 18, 2011, as amended August 12, 2011
(the &ldquo;<U>Royalty Agreement</U>&rdquo;), pursuant to which the Company granted CPP a six percent (6%) overriding royalty interest
in and to the Receivables and Related Rights of the Company (as such terms are defined in the Royalty Agreement) (the &ldquo;<U>Royalty
Interest</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and CPP are parties to that certain Demand Promissory Note, dated August, 2011, the outstanding principal balance and interest
of which (the &ldquo;<U>Total Debt Amount</U>&rdquo;) the Parties have agreed to convert (the &ldquo;<U>Debt Conversions</U>&rdquo;)
into shares of the Company&rsquo;s common stock (&ldquo;<U>Common Stock</U>&rdquo;) at $0.25 per share (the &ldquo;<U>Conversion
Price</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with a proposed debt financing of the Company by ASYM Energy Partners LLC (&ldquo;<U>ASYM</U>&rdquo;), CPP agreed to
undertake the Debt Conversions and the Parties have agreed to terminate the Royalty Interest in exchange for the grant to the CPP
of certain antidilution protections for the Debt Conversions (the &ldquo;<U>Conversion Price Adjustments</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with each distribution pursuant to the proposed ASYM debt financing, the Company will issue a warrant to ASYM (the &ldquo;<U>ASYM
Warrants</U>&rdquo;), the exercise price of which will be determined based upon certain financial measurements agreed to between
ASYM and the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Conversion Price Adjustments for the Debt Conversions will be based upon the exercise price of the ASYM Warrants.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below, the Parties hereto,
intending to be legally bound, hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Royalty
Interest</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Termination
of Royalty Interest</U>. In consideration of the covenants and agreements set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree that the Royalty Interest is hereby terminated
and the Royalty Agreement and any references to the Royalty Interest in any other documents between the Parties shall be of no
further force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Further
Assurances</U>. CPP will execute and deliver such other documents as may be reasonably necessary and requested by the Company to
terminate the Royalty Interest.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Representations
and Warranties of CPP</U>.</FONT> CPP hereby represents and warrants to the Company that the statements contained in the following
paragraphs of this Section 2 are all true and correct as of the date hereof.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Title</U>.
CPP owns all right, title and interest in and to the Royalty Interest and has not transferred, pledged or encumbered in any way
such Royalty Interest.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Authority</U>.
CPP has full power and authority to execute this Agreement and carry out the transactions and agreements contemplated hereby.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Interest</U>.
After giving effect to the termination contemplated in Section 1 above, CPP will have no further Royalty Interest in or lien or
encumbrance upon any assets of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>ANTi-DILUTION
PROTECTION</U></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>ASYM
Warrant Exercise Price</U>. The exercise price (&ldquo;<U>Warrant Exercise Price</U>&rdquo;) of the ASYM Warrants issuable from
time to time shall be equal to the lower of: (i) $0.20 per share, (ii) 85% of the volume weighted average price per share (<U>VWAP</U>)
of Common Stock for the fifteen (15) days preceding the issuance of any loan to the Company by ASYM, or (iii) the trailing 90-day
net average daily oil production of the Company multiplied by $40,000, the product of which is reduced by the Company&rsquo;s debt
and any obligations, thereafter divided by the Company&rsquo;s fully diluted number of shares of Common Stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Additional
Share Issuance</U>. In the event the Warrant Exercise Price for any ASYM Warrant issued in connection with a loan from ASYM is
less than the Conversion Price, the Company will issue to CPP additional shares of Common Stock in an amount equal to (&ldquo;Adjustment
Shares&rdquo;): [(Total Debt Amount/Warrant Exercise Price) less (Total Debt Amount/Conversion Price)] minus any Adjustment Shares
previously issued to CPP hereunder. By way of example only,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Warrant Exercise Price is $0.20 in connection with the
first loan from ASYM and the Total Debt Amount of $1,000,000, then the Adjustment Shares will equal: [($1,000,000/$0.20) - ($1,000,000/$0.25)]
- 0 = 1,000,000 shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Warrant Exercise Price is $0.15 in connection with the
second loan from ASYM, then the Adjustment Shares will equal: [($1,000,000/$0.15) - ($1,000,000/$0.25)] - 1,000,000 = 1,666,667
shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Warrant Exercise Price is $0.20 in connection with the
third loan from ASYM, then the Adjustment Shares will equal: [($1,000,000/$0.20) - ($1,000,000/$0.25)] - 2,666,667 = 0 shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Rights</U>.
Any Common Stock issued to CPP pursuant to Section 3.2 above shall have the same rights, preferences and privileges and be subject
to the same restrictions on transfer as those shares issued in the applicable Debt Conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Subsequent
Warrant Issuances</U>. For the avoidance of doubt, the issuance of shares to CPP pursuant to Section 3.2 shall not preclude the
issuance of additional shares of Common Stock in the event the Warrant Exercise Price for any subsequent ASYM Warrant is lower
than the Warrant Exercise Price for the previous ASYM Warrant(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>GENERAL
PROVISIONS</U></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Survival
of Warranties</U>. The representations, warranties and covenants of CPP contained in or made pursuant to this Agreement shall survive
the execution and delivery of this Agreement and shall in no way be affected by any investigation of the subject matter thereof
made by or on behalf of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Successors
and Assigns</U>. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors
and assigns of the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Governing
Law</U>. This Agreement shall be governed by and construed under the internal laws of the State of Nevada as applied to agreements
among Nevada residents entered into and to be performed entirely within Nevada, without reference to principles of conflict of
laws or choice of laws and, to the extent applicable, by federal law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Counterparts</U>.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Headings</U>.
The headings and captions used in this Agreement are used only for convenience and are not to be considered in construing or interpreting
this Agreement. All references in this Agreement to sections, paragraphs, exhibits and schedules shall, unless otherwise provided,
refer to sections and paragraphs hereof and exhibits and schedules attached hereto, all of which exhibits and schedules are incorporated
herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Severability</U>.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision(s) shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be
enforceable in accordance with its terms, provided however that the Conversion Price Adjustments contemplated in Section 3 hereof
and the termination of the Royalty Interest contemplated in Section 1 are contingent upon each other.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Further
Assurances</U>. From and after the date of this Agreement, upon the request of CPP or the Company, the Company and CPP shall execute
and deliver such instruments, documents or other writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Waiver
and Amendment</U>. Any of the terms and provisions of this Agreement may be waived at any time by the Party that is entitled to
the benefit thereof, but only by a written instrument executed by such Party. This Agreement may be amended only by an agreement
in writing executed by the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><U>Delay
or Omission</U>. No delay or omission to exercise any right, power or remedy accruing to any Party hereto shall impair any such
right, power or remedy of such Party nor be construed to be a waiver of any such right, power or remedy nor constitute any course
of dealing or performance hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">[SIGNATURE
PAGE IMMEDIATELY FOLLOWS]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the Parties have caused
this Agreement to be executed and delivered as of the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-indent: 0in; font-weight: bold; text-align: justify"><FONT STYLE="font-variant: small-caps">Centennial
    Petroleum Partners, LLC</FONT></TD>
    <TD STYLE="text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 45%; text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 50%; text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">By: </TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Name:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Title: </TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold"><FONT STYLE="font-variant: small-caps">American Petro-Hunter,
    Inc.</FONT></TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-autospace: none">a Nevada corporation</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Robert McIntosh</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Chief Executive Officer</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>v318014_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"><B>&nbsp;</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>PURCHASE AGREEMENT
</B>(as may be amended, restated, supplemented or otherwise modified in accordance herewith and in effect from time to time, this
&ldquo;<U>Agreement</U>&rdquo;) dated as of the 3rd day of July 2012, by and among ASYM Energy Opportunities LLC, a Delaware limited
liability company (the &ldquo;<U>Purchaser</U>&rdquo;) and American Petro Hunter Inc., a company incorporated in the State of
a Nevada (the &ldquo;<U>Company</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company
and the Purchaser desire for the Purchaser to extend to the Company a secured credit facility in the amount of up to $10,000,000;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, in connection
with the secured credit facility, the Company shall issue, and the Purchaser shall purchase, one or more secured promissory notes,
and, in consideration therefore, the Company shall issue to Purchaser one or more Warrants to acquire the Company&rsquo;s Common
Stock;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, initially
the Company shall issue to Purchaser and the Purchaser shall acquire a secured promissory note in the principal amount of $300,000
substantially in the form of <U>Exhibit A</U> attached hereto (as amended, restated, supplemented or otherwise modified, the &ldquo;<U>Tranche
A Note</U>&rdquo;), and, thereafter, the Company will be obligated to sell, and the Purchaser shall be have the option to purchase,
the Tranche B Note and Additional Note(s) (as such terms are hereinafter defined), all in accordance with the terms and conditions
set forth below;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, in connection
with the execution and delivery of the Tranche A Note, the Company shall execute and deliver to the Purchaser the First Lien Security
Agreement substantially in the form of <U>Exhibit B</U> attached hereto (as amended, restated, supplemented or otherwise modified,
the &ldquo;<U>First Lien Security Agreement</U>&rdquo;), pursuant to which the Company is granting to the Purchaser first lien
security interests in all of the Company&rsquo;s personal Property;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, in accordance
with this Agreement and as a condition precedent to Purchaser acquiring the Tranche B Note and any Additional Notes, the Company
shall execute and deliver to the Purchaser mortgages on all of the Company&rsquo;s real property interests (&ldquo;<U>First Lien
Mortgages</U>&rdquo;);</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, in connection
with the execution and delivery of this Agreement, the Company shall grant a security interest to Purchaser in certain of the
Company&rsquo;s deposit accounts pursuant to the Control Agreement substantially in the form of <U>Exhibit C</U> attached hereto
(as amended, restated, supplemented or otherwise modified, the &ldquo;<U>Control Agreement</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, in connection
with the execution and delivery of this Agreement, the Company has or shall execute, deliver and/or file UCC financing statements
and other documents or instruments to document and perfect the security interests contemplated by the First Lien Security Agreement
and the First Lien Mortgages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>DEFINITIONS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used in this Agreement,
the following terms shall have the following meanings, unless the context otherwise requires:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Additional
Closing</U>&rdquo; has the meaning set forth in Section 1(c).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Additional
Note</U>&rdquo; has the meaning set forth in Section 1(c)(i).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Additional
Tranche Amount</U>&rdquo; has the meaning set forth in Section 1(c)(i).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Administrative
Fee</U>&rdquo; means $100,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Affiliate</U>&rdquo;
means any person directly or indirectly, through one or more intermediaries, manages, directs, owns, is owned by, controls, is
controlled by, or is under common control with, such first person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Agreement</U>&rdquo;
has the meaning set forth in the introductory paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Ancillary
Documents</U>&rdquo; has the meaning set forth in Section 2(i).</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Board</U>&rdquo;
has the meaning set forth in Section 8(x).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Budget</U>&rdquo;
means a document in form and substance satisfactory to Purchaser setting forth Company&rsquo;s cash flow needs and intended use(s)
of proceeds of the Notes during the Restriction Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Business
Day</U>&rdquo; means any day other than Saturday, Sunday or other day on which commercial banks in New York City are authorized
or required by law to remain closed.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Capital
Expenditures</U>&rdquo; means (a) any expenditures relating to the re-entry, Workover Drilling, Workover Operations, Drilling,
completion, acquisition or tie-in to production of Oil and Gas Properties, (b) any Plugging and Abandonment Expenses, (c) any
environmental related costs, (d) any expenditures for mineral leases, leases and leasehold improvements. and (e) any equipment
or services related to the foregoing.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Capital
Lease Obligation</U>&rdquo; means, as to any Person, any obligation that is required to be classified and accounted for as a capital
lease on a balance sheet of such Person prepared in accordance with GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Change in
Control</U>&rdquo; means the occurrence of (i) the acquisition by a person or a group of related persons (other than Purchaser
or Affiliates of Purchaser) of more than fifty percent (50%) of the Common Stock whether by merger, consolidation, stock sale
or otherwise, (ii) the sale of all or substantially all of the Company&rsquo;s assets in one or more related transactions, or
(iii) the voluntary or involuntary liquidation, dissolution or winding up of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Closing</U>&rdquo;
has the meaning set forth in Section 1(d).</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Collateral</U>&rdquo;
has the meaning set forth <FONT STYLE="color: black">in the First Lien Security Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">&ldquo;<U>Common
Stock</U>&rdquo; </FONT>has the meaning set forth <FONT STYLE="color: black">in Section 3(a)(ii).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">&ldquo;<U>Company</U>&rdquo;
</FONT>has the meaning set forth <FONT STYLE="color: black">in the introductory paragraph.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Company
Indemnitees</U>&rdquo; has the meaning set forth in Section 11(c).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Contingent
Obligation</U>&rdquo; means, as to any Person, any direct or indirect liability, contingent or otherwise, of such Person with
respect to any indebtedness, lease, dividend or other obligation of another Person if a primary purpose or intent of the Person
incurring such liability, or a primary effect thereof, is to provide assurance to the obligee of such liability that such liability
will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability
will be protected (in whole or in part) against loss with respect thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Contracts</U>&rdquo;
has the meaning set forth in Section 3(g).</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Control
Agreement</U>&rdquo; has the meaning set forth in the sixth &ldquo;whereas&rdquo; clause.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Current
Assets</U>&rdquo; means the sum of the Company&rsquo;s available cash, cash equivalents and marketable securities (but excluding
any restricted cash or cash providing collateral for bonding or similar purposes), monies held on behalf of other working interest
owners, accounts receivable, and prepaid expenses, taken as a whole.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Current
Liabilities</U>&rdquo; means the sum of the Company&rsquo;s accounts payable, severance, ad valorem, income taxes and any other
taxes payable, revenues and royalties due to third-parties, monies due on behalf of working interest owners other than the Company,
accrued interest expense and other accrued expenses, and any other amounts due within one year of such date (but excluding the
outstanding principal on each of the Notes), taken as a whole.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Determination
Date</U>&rdquo; means each of June 30 and December 31 of each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Director
Fees</U>&rdquo; and &ldquo;<U>Director</U>&rdquo; have the meanings set forth in Section 8(x).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Drilling</U>&rdquo;
means the search for Oil and Gas in their natural states and original locations that may include, but not be limited to,
drilling, completion, re-entry, sidetracking, horizontal laterals, recompletions, fracing, Workover Drilling, secondary
recovery, tertiary recovery and any other method.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>EBITDA</U>&rdquo;
means the net income of the Company for that period (A) <I>plus</I>, to the extent deducted from revenues in determining net income
(i) interest expense, (ii) expense for income or similar taxes paid or accrued (giving effect to any tax benefits that reduce
such expense to an amount that is not less than zero (0)), but excluding severance taxes, franchise taxes and ad valorem taxes,
(iii) depreciation, (iv) amortization, (v) extraordinary non-recurring non-cash losses, and (vi) costs and expenses related to
Capital Expenditures which shall exclude any lease operating expenses, (B) <I>minus </I>to the extent included in net income,
(i) extraordinary non-recurring non-cash gains, and (ii) to the extent any income or similar tax benefits included in net income
exceed the aggregate expense deducted therefrom for income or similar taxes paid or accrued, such net tax benefit, all in accordance
with GAAP principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Effective
Date</U>&rdquo; has the meaning set forth in Section 1(a).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Environmental
Law</U>&rdquo; means any federal, state, or local statute, or rule or regulation promulgated thereunder, any judicial or administrative
order or judgment to which the Company is party or which are applicable to the Company (whether or not by consent), and any provision
or condition of any governmental permit, license or other operating authorization relating to protection of the environment, persons
or the public welfare from actual or potential exposure for the effects of exposure to any actual or potential release, discharge,
spill or emission (whether past or present) of, or regarding the manufacture, processing, production, gathering, transportation,
importation, use, treatment, storage or disposal of any chemical, raw material, pollutant, contaminant or toxic, corrosive, hazardous
or non-hazardous substance or waste, including Oil and Gas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Equity Securities</U>&rdquo;
shall mean any of the Company&rsquo;s Common Stock, preferred stock (if any) or other ownership interests (if any), and any options,
warrants or securities issued by the Company or instruments exercisable for or exchangeable or convertible into any of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Event of
Default</U>&rdquo; has the meaning set forth in Section 9.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Fees</U>&rdquo;
means the Administrative Fee and the Finder Fee, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Financial
Covenant Test Failure</U>&rdquo; has the meaning set forth in Section 2(d)(i)(A).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Financial
Covenant Test Failure Amount</U>&rdquo; has the meaning set forth in Section 2(d)(i)(B).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Financial
Statements</U>&rdquo; means the balance sheet and the statements of income, shareholders&rsquo; equity and cash flow and notes
thereto of the Company as of and for the periods ending on the dates thereof in accordance with GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>First Lien
Mortgages</U>&rdquo; has the meaning set forth in the fifth &ldquo;whereas&rdquo; clause.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>First Lien
Security Agreement</U>&rdquo; has the meaning set forth in the fourth &ldquo;whereas&rdquo; clause.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>First Lien
Security Documents</U>&rdquo; means the First Lien Security Agreement, the First Lien Mortgages and any and all other agreements
or instruments now or hereafter executed and delivered by Company as security for the payment or performance of the Notes, in
form and substance satisfactory to Purchaser, as such agreements may be amended or otherwise modified from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>G&amp;A</U>&rdquo;
means the dollar amount of the Company&rsquo;s general and administrative expenses, executive compensation, and Director Fees,
in addition to, but not limited to, legal expenses, accounting and auditing costs (financial and reserve engineering related),
rent, travel expenses, and consulting costs, but which shall exclude any (i) non-cash amounts; (ii) other amounts due, payable
and/or paid under the Management Services Agreement between the Company and Purchaser; (iii) legal expenses, accounting and auditing
costs related to the Purchaser Transaction Documents and ancillary agreements and documents related thereto, future acquisitions
and other extraordinary transactions; and (iv) Fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>GAAP</U>&rdquo;
means those generally accepted accounting principles and practices that are recognized from time to time as such by the American
Institute of Certified Public Accountants acting through its Accounting Principles Board or by the Financial Accounting Standards
Board or through other appropriate boards or committees thereof and which were consistently applied with respect to the preparation
of the Financial Statements and are consistently applied for all periods after the date hereof so as to reflect properly the financial
condition, the results of operations, and the reconciliation of capital accounts of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Gas</U>&rdquo;
means natural gas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Governmental
Authorities</U>&rdquo; means the government of the United States or any other nation, or any political subdivision thereof, whether
state, provincial or local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administration powers or functions of or pertaining to government.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Hydrocarbon
Interests</U>&rdquo; means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases, Oil,
Gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests,
net profit interests and production payment interests, including any reserved or residual interests of whatever nature.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Indebtedness</U>&rdquo;
of any Person means, without duplication: (i) all indebtedness for borrowed money; (ii) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than unsecured account trade payables that are entered into
or incurred in the ordinary course of such Person&rsquo;s business, including those that arise under standard industry joint operating
agreements); (iii) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar
instruments; (iv) all obligations evidenced by notes, bonds, debentures, redeemable capital stock or similar instruments, including
obligations so evidenced incurred in connection with the acquisition of property, assets or businesses; (v) all indebtedness created
or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect
to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller,
bank or other financing source under such agreement in the event of default are limited to repossession or sale of such property);
(vi) all Capital Lease Obligations; (vii) all indebtedness referred to in clauses (i) through (vi) above secured by (or for which
the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge,
charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned
by any Person, even though the Person that owns such assets or property has not assumed or become liable for the payment of such
indebtedness; and (viii) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred
to in clauses (i) through (vii) above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Initial
Closing</U>&rdquo; has the meaning set forth in Section 1(a).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Insurance
Recovery Determination Date</U>&rdquo; has the meaning set forth in Section 8(h).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Interest
Rate</U>&rdquo; has the meaning set forth in Section 1(e)(ii).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>LOE</U>&rdquo;
means the expenses for the maintenance and production activities necessary to retrieve and sell Oil and Gas from its natural reservoirs,
and the operation and maintenance of field gathering and storage systems, which includes lifting the Oil and Gas to the surface
and the preparation and sale of the Oil and Gas, which may include the following expenses charged to working interest owners,
in accordance with GAAP: Production Taxes, gathering, transportation, dehydration, compression, treating, processing, field storage,
marketing and selling of the Oil and Gas; pumper costs; chemicals and solvents; production supervision; legal; pulling unit; water
supply; transportation and water hauling and/or disposal; fuel and power; electric; insurance; vehicle expenses; gas lift systems;
waterflooding systems; logging; testing; road and location improvements; acid treatment; consulting services; engineering and
geological; repairs and maintenance; materials and supplies; hot oil treatments; rentals; Workover Expenses; contract labor; salaries
and fringe benefits of field personnel; operations or field offices and related expenses; and any directly related administrative
and overhead costs; and other costs and expenses in accordance with GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Lien Termination
Agreement</U>&rdquo; means that certain Lien Termination Agreement with Maxum Overseas Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Liens</U>&rdquo;
mean <FONT STYLE="color: black">any liens, claims, charges, taxes, mortgages, pledges, security interests, equities, encumbrances
or rights of any kind by third parties in the Property of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Losses</U>&rdquo;
has the meaning set forth in Section 11(b).</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Material
Adverse Effect</U>&rdquo; means an event or condition, individually or in the aggregate, that has had or may reasonably be expected
to have a material adverse effect on (A) the properties, business, prospects, results of operation or financial condition of the
Company taken as a whole, (B) the Company&rsquo;s performance of its respective obligations under this Agreement or any of the
other Purchaser Transaction Documents, or (C) the seniority of indebtedness of the Company under this Agreement and the Notes
or the perfection or priority of the security interests granted to the Purchaser pursuant to this Agreement or the Purchaser Transaction
Documents.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Notes</U>&rdquo;
has the meaning set forth in Section 1(e).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>NYMEX</U>&rdquo;
means New York Mercantile Exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Officer&rsquo;s
Certificate</U>&rdquo; has the meaning set forth in Section 2(d).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;&ldquo;<U>Oil and Gas Hedging Contract</U>&rdquo;
means any purchase or hedging agreement, derivative, swap, fixed price agreement, forward sale, volumetric production payments
and/or similar instruments, transaction, agreement or arrangement directly or indirectly related to Oil and Gas.&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Oil</U>&rdquo;
means crude oil, condensate and natural gas liquids.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Oil and
Gas Properties</U>&rdquo; means (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or unitized with Hydrocarbon
Interests; (c) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units
created thereby (including without limitation all units created under orders, regulation and rules of Government Authorities)
that may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements,
including production sharing contracts and agreements, that relate to any of the Hydrocarbon Interests or the production, sale,
purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and
under and that may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents,
issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f) all tenements,
hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests
and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property,
real or personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating,
working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental
equipment or other personal Property that may be on such premises for the purpose of drilling a well or for other similar temporary
uses) and including any and all oil wells, gas wells, injection wells or other wells, building, structures, fuel separators, liquid
extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves,
fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers,
casing, tubing and rods, surface leases, rights-of-way, easements and servitudes, together with all additions, substitutions,
replacements, accessions and attachments to any and all of the foregoing.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Permitted
Indebtedness</U>&rdquo; means (i) purchase money Indebtedness or Capital Lease Obligations in an aggregate amount not to exceed
$100,000 outstanding at any time; (ii) Indebtedness of the Company for taxes, assessments, municipal or Governmental Authorities&rsquo;
charges not yet due; (iii) obligations of the Company resulting from endorsements for collection or deposit in the ordinary course
of business; (iv) Indebtedness under this Agreement and the Notes; (v) reimbursement obligations in respect of letters of credit
issued for the account of the Company in the ordinary course of their business for the purpose of securing performance obligations
of the Company or for the purpose of satisfying federal, state and/or local legal requirements for owning and operating oil and
gas properties, so long as the aggregate face amount of such letters of credit does not exceed $100,000 (or such greater amount
as required by any federal, state and/or local Governmental Authorities) at any one time; (vi) Indebtedness owed under the Third
Amendment to Promissory Notes (A) the holders of which agree in writing to be subordinate to the Notes on terms and conditions
acceptable to the Purchaser, including with regard to interest payments and repayment of principal, and (B) which does not mature
or otherwise require or permit redemption or repayment until at least six months after the Maturity Date (as defined in the Notes)
of any Notes then outstanding; and (vii) Indebtedness owed under the McIntosh Notes (A) the holders of which agree in writing
to be subordinate to the Notes on terms and conditions acceptable to the Purchaser, including with regard to interest payments
and repayment of principal, and (B) which requires repayment as described in Section 2(b).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Permitted
Liens</U>&rdquo; shall mean (i) Liens granted in favor of the Purchaser pursuant to this Agreement and the First Lien Security
Documents and the transactions related hereto and thereto; (ii) Liens for taxes or other governmental charges not at the time
due and payable, or which are being contested in good faith by appropriate proceedings diligently prosecuted, so long as foreclosure,
distraint, sale or other similar proceedings have not been initiated, and in each case for which the Company maintains adequate
reserves in accordance with GAAP; (iii) Liens arising in the ordinary course of business in favor of carriers, warehousemen, mechanics
and materialmen, or other similar Liens imposed by law, which remain payable without penalty or which are being contested in good
faith by appropriate proceedings diligently prosecuted, which proceedings have the effect of preventing the forfeiture or sale
of the property subject thereto, and in each case for which adequate reserves in accordance with GAAP; (iv) Liens arising in the
ordinary course of business in connection with worker&rsquo;s compensation, unemployment compensation and other types of social
security (excluding Liens arising under the Employee Retirement Income Security Act of 1974, as amended); (v) easements, rights
of way, restrictions, minor defects or irregularities in title and other similar Liens not materially detracting from the value
of the property subject thereto and not interfering in any material respect with the ordinary conduct of the business of the Company;
(vi) zoning, building codes and other land use laws regulating the use or occupancy of the Real Property or the activities conducted
thereon which are imposed by any Governmental Authority having jurisdiction over such Real Property which are not violated by
the current use or occupancy of such Real Property or the operation of the Company&rsquo;s business thereon; (vii) Liens arising
solely by virtue of any statutory or common law provision relating to banker&rsquo;s liens, rights of set-off or similar rights
and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution, <U>provided
</U>that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor
in excess of those set forth by regulations promulgated by the Board of Governors of the U.S. Federal Reserve System and that
no such deposit account is intended by the Company to provide collateral to the depository institution; (viii) Liens securing
capital lease obligations permitted pursuant to clause (i) of the definition of &ldquo;Permitted Indebtedness,&rdquo; <U>provided
</U>that such Liens attach only to the fixed assets financed by such capital lease obligations and that such Liens attach concurrently
with, or within ninety (90) days, after the acquisition thereof; (ix) purchase money Liens (A) securing Indebtedness of the Company
listed under <U>Schedule 3(f)</U>, or (B) in connection with the purchase by the Company of equipment in the normal course of
business; <U>provided</U>, that such payables, Indebtedness and amounts shall be Permitted Indebtedness hereunder; (x) Liens on
any property or asset of the Company as set forth on <U>Schedule 3(f)</U> and replacements thereof; (xi) judgment Liens so long
as they and/or the judgment they are securing do not constitute or result in an Event of Default; (xii) any interest or title
of a lessor or sublessor in respect of assets owned by such lessor or licensor and leased by or licensed to the Company; and (xiii)
Liens consisting of cash collateral securing the Company&rsquo;s reimbursement obligations, under letters of credit permitted
under clause (v) of the definition of &ldquo;Permitted Indebtedness&rdquo;, <U>provided</U> that the aggregate amount of cash
collateral securing such Indebtedness does not exceed the undrawn face amount outstanding at any one time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Person</U>&rdquo;
means and includes an individual, corporations, limited partnerships, general partnerships, limited liability partnerships, limited
liability companies, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts,
business trusts or other organizations or entities, whether or not legal entities, and Governmental Authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Plugging
and Abandonment Expenses</U>&rdquo; means the expense and capitalized cost to plug and abandon a well as required by the appropriate
regulatory authorities as a result of the well being (i) completed as a nonproductive well; (ii) ceasing to produce Oil or Gas;
(iii) operated for the purpose for which the well is no longer permitted; or (iv) in violation of an Environmental Law.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Price Differentials</U>&rdquo;
means any price difference (positive or negative) between Oil prices and Gas prices realized from the sale of such Oil and Gas
less the NYMEX Oil price and NYMEX Gas price, respectively, for the same period, which shall reflect qualitative, British thermal
unit content (if applicable), locational, and any other differences and costs, including but not limited to gathering, marketing,
transportation, and compression, required to sell any Production that are not already included in LOE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Production</U>&rdquo;
means any quantities of Oil and Gas retrieved from its natural reservoirs.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Production Taxes</U>&rdquo;
means severance, ad valorem, franchise, sales and other related taxes (excluding federal, state and local income taxes) related
to Production, the sale of Production, and Oil and Gas Properties.&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Properties</U>&rdquo;
means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without
limitation, cash securities, accounts, and contract rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Proved Developed
Non-Producing Reserves</U>&rdquo; means Proved Reserves which are categorized as proved developed non-producing reserves, including
Proved Reserves categorized as &ldquo;Developed&rdquo; and &ldquo;Nonproducing&rdquo; and &ldquo;Behind Pipe&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Proved Reserves</U>&rdquo;
means the estimated quantities of Oil and Gas net to the Company&rsquo;s interest, which geological engineering data demonstrate
with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions
and categorized as proved developed producing reserves (&ldquo;PDP&rdquo;), Proved Developed Non-Producing reserves (&ldquo;PDNP&rdquo;),
and proved undeveloped reserves (&ldquo;PUD&rdquo;), all in accordance with SEC guidelines and as determined by a Reserve Engineer
and provided in a Reserve Report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Purchaser</U>&rdquo;
has the meaning set forth in the introductory paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Purchaser
Indemnitees</U>&rdquo; has the meaning set forth in Section 11(b).</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Purchaser
Transaction Documents</U>&rdquo; means this Agreement, the First Lien Security Documents, the Notes, Third Amendment to Promissory
Notes, Lien Termination Agreement, Royalty Termination Agreement, Control Agreement, each Warrant, the Ancillary Documents and
any subordination agreement or other document or agreement entered into in connection with the transactions contemplated by this
Agreement and such other documents and agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>PV10 Value</U>&rdquo;
means, as of any Determination Date, the present value (discounted using an annual discount rate of 10%) of the net annual cash
flows (after all Price Differentials, LOE, and Capital Expenditures and any other expenses expected to accrue to the Company&rsquo;s
interests as determined by the Reserve Engineer, however, before deducting future income taxes) associated with each component
of Proved Reserves in accordance with SEC guidelines and as prepared in good faith by a Reserve Engineer.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>PV10 Coverage
Ratio</U>&rdquo; means, as of any Determination Date, the quotient of the PDP component of the PV10 Value, divided by the Total
Debt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Purchaser
Transaction Documents</U>&rdquo; means this Agreement, First Lien Security Agreement, Third Amendment to Promissory Notes, Lien
Termination Agreement with Maxum Overseas Fund, Royalty Termination Agreement with Centennial Petroleum Partners, LLC, Control
Agreement, Notes, each Warrant, and any subordination agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Real Property</U>&rdquo;
means all of the Company&rsquo;s now or hereafter owned or leased estates in real property, including, without limitation, all
fees, leasehold interests, and future interests, together with all now or hereafter owned or leased interests in the improvements
thereon, the fixtures attached thereto and the easements appurtenant thereto; including leasehold interests; fee interests; oil,
gas and other mineral drilling, exploration and development rights; royalty, overriding royalty, and other payments out of or
pursuant to production; other rights in and to oil, gas and other minerals, including contractual rights to production, concessions,
net profits interests, working interests and participation interests (including all hydrocarbon property); producing and non-producing
wells and/or units located on or within or including or involving any of said real property or leasehold interests as well as
all related production, treatment, transportation and gathering equipment and facilities located therein, including all pipelines
and rights of way; facilities; fixtures; and equipment that (i) are at any time leased, lease owned or otherwise owned or possessed
by the Company, (ii) in connection with which the Company is at any time party to an option agreement, participation agreement
or acquisition and drilling agreement or (iii) the Company at any time has an obligation (or at any time has an option) to lease
or otherwise acquire in connection with the conduct of its business, and any other contractual rights for the acquisition or earning
of any of any such interests in real property. &#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Related
Party</U>&rdquo; means the Company&rsquo;s and each Subsidiary&rsquo;s officer, directors or consultants, individuals who were
officers, directors, or consultants of the Company or any Subsidiary at any time during the previous three years, direct or indirect
holders of any Equity Securities, or Affiliates of the Company, any Subsidiary, or officer, director or consultant or any individual
related by blood, marriage or adoption to any such individual or any entity in which any such entity or individual owns a beneficial
interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Reserve
Engineer</U>&rdquo; means one of Degolyer and MacNaughton, Ryder Scott Company, Netherland, Sewell &amp; Associates, Inc. or Cawley,
Gallespie &amp; Associates, Inc., or any of their respective successors, as selected by the Company in its sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Reserve
Report</U>&rdquo; means an independently engineered report provided by a Reserve Engineer in which such report and each other
such report shall set forth, as of each Determination Date or as herein provided, the annual future cash flows (before future
income taxes) and the details of each of its components including, but not limited to, gross and net Production, NYMEX Oil and
Gas prices, Oil and Gas prices realized, Price Differentials, Oil revenue, Gas revenue, total revenue, LOE (detailing operating
expenses, Production Taxes, and other expenses), and Capital Exenditures that results in the PV10 Value for Proved Reserves as
well as each of its categories, including PDP, PDNP, and PUD., Each Reserve Report shall be in accordance with SEC reporting requirements
at the time and (a) take into account the Company&rsquo;s actual experiences withany of the components of the PV10 Value.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Required
PV10 Coverage Ratio</U>&rdquo; means 0.9 (subject to adjustment, as agreed upon in writing by the Company and the Purchaser).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Restriction
Period</U>&rdquo; means at all times from the date hereof until the first date following the Initial Closing Date on which no
Notes are outstanding,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Royalty
Burden</U>&rdquo; means the total specified percentage of Oil and Gas revenue related to mineral fee royalties, overriding royalty
interests or other similar types of interests prior to LOE or Capital Expenditures but after deducting any Production Taxes but
without giving effect to federal, state or local income taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Royalty
Termination Agreement</U>&rdquo; means that certain Royalty Termination Agreement with Centennial Petroleum Partners, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;&ldquo;<U>SEC</U>&rdquo; means the
Securities and Exchange Commission.&#9;</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Second Closing</U>&rdquo;
has the meaning set forth in Section 1(b).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Securities</U>&rdquo;
has the meaning set forth in Section 4(d).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Securities
Act</U>&rdquo; has the meaning set forth in Section 4(d).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Stock Outstanding</U>&rdquo;
has the meaning set forth in Section 3(a)(ii).</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Subsidiary</U>&rdquo;
means any corporation, limited liability company, partnership or other entity of which more than fifty percent (50%) of the shares
of stock, or other ownership interests having ordinary voting power (including stock or such other ownership interests having
such voting power only by reason of the happening of a contingency) and are at the time owned, directly or indirectly, through
one or more intermediaries, or both, by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Third Amendment
to Promissory Notes</U>&rdquo; means that certain Third Amendment to Promissory Notes between the Company and John E. Friesen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Total Debt</U>&rdquo;
means the aggregate outstanding principal amount of Permitted Indebtedness and Notes, less Working Capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">&ldquo;<U>Tranche
A Amount</U>&rdquo; </FONT>has the meaning set forth <FONT STYLE="color: black">in Section 1(a)(i).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">&ldquo;<U>Tranche
A Note</U>&rdquo; </FONT>has the meaning set forth <FONT STYLE="color: black">in the third &ldquo;whereas&rdquo; clause.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">&ldquo;<U>Tranche
B Amount</U>&rdquo; </FONT>has the meaning set forth <FONT STYLE="color: black">in Section 1(b)(i).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">&ldquo;<U>Tranche
B Note</U>&rdquo; </FONT>has the meaning set forth <FONT STYLE="color: black">in Section 1(b)(i).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>UCC</U>&rdquo;
means the Uniform Commercial Code of the State of New York, or, if the UCC requires that the governing law be the state where
the applicable assets are located, then the Uniform Commercial Code of such other state.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">&ldquo;<U>Warrant(s)</U>&rdquo;
</FONT>has the meaning set forth <FONT STYLE="color: black">in Section 1(a)(i).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Working
Capital</U>&rdquo; means Current Assets less Current Liabilities, which such amount may be greater (Current Assets exceed Current
Liabilities) or less than zero (Current Liabilities exceed Current Assets).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Workover</U>&rdquo;
means Workover Drilling or Working Operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Workovers
Capitalized</U>'' means capitalized costs (which may include Workover Expenses that are capitalized) related to Workover Drilling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Workover
Drilling</U>&rdquo; means operations on a producing or non-producing well related to the operation that results in the deepening
(vertically or horizontally) of a well or plugging back to a shallower horizon for the purpose of accessing PDNP and/or PUD or
increasing the PDP component of Proved Reserves and shall include the intended initiation, restoration or increase of Production
and an intended increase in the PDP component of Proved Reserves; provided that it shall not include any Workover Operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Workover
Expenses</U>&rdquo; means expenses related to Workover Operations.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<U>Workover
Operations</U>&rdquo; means operations on a producing or non-producing well for the purpose of stimulating or restoring Production
in the same or existing producing horizon or for the purpose of restoring or increasing Production, in each case without an intended
increase in the PDP component of Proved Reserves, including the repair of sucker rods, tubing, casing, and leaks as well as cleaning
out sand-filled perforations, and acidizing; provided that it shall not include any Workover Drilling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>ACCOUNTING TERMS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Accounting terms used
and not otherwise defined in this Agreement have the meanings determined by, and all calculations with respect to accounting or
financial matters shall be computed in accordance with GAAP. Any accounting term used and not otherwise defined in this Agreement
has the meaning assigned to such term in accordance with GAAP.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Courier; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal; font-style: normal"><U>Code
Terms</U>. As used herein, the terms &ldquo;accounts,&rdquo; &ldquo;cash proceeds,&rdquo; &ldquo;chattel paper,&rdquo; &ldquo;commercial
tort claims,&rdquo; &ldquo;deposit accounts,&rdquo; &ldquo;documents,&rdquo; &ldquo;electronic chattel paper,&rdquo; &ldquo;equipment,&rdquo;
&ldquo;fixtures,&rdquo; &ldquo;general intangibles,&rdquo; &ldquo;goods,&rdquo; &ldquo;instruments,&rdquo; &ldquo;inventory,&rdquo;
&ldquo;investment property,&rdquo; &ldquo;letter-of-credit rights,&rdquo; &ldquo;noncash proceeds,&rdquo; &ldquo;payment intangibles,&rdquo;
&ldquo;proceeds,&rdquo; &ldquo;promissory notes,&rdquo; &ldquo;records,&rdquo; &ldquo;software,&rdquo; &ldquo;supporting obligations,&rdquo;
&ldquo;tangible chattel paper&rdquo; (whether or not such terms are used in this Agreement in their capitalized forms), and any
other terms used herein and defined in the UCC and not otherwise defined herein shall have the respective meanings assigned to
those terms in the UCC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 1.&nbsp;<U>Issuance
and Sale of the Notes and Warrants.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.9in">&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Initial
Closing</U>.<U></U> On the first Business Day after the date hereof<B> </B>(or
such later date as is mutually agreed to by the Purchaser and the Company) (the &ldquo;<U>Initial Closing</U>&rdquo;), and upon
the terms and subject to the satisfaction (or waiver) of all the conditions set forth in Sections 5(a) and 6(a) hereof, the Company
will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue
and sell to the Purchaser, and the Purchaser shall purchase from the Company, the Tranche A Note in exchange for the Purchaser&rsquo;s
payment of $300,000 (&ldquo;<U>Tranche A Amount</U>&rdquo;) as further described in Section 2(a), provided that such Tranche A
Note may be amended and restated in its entirety prior to the Second Closing to reflect review and comment by counsel to Purchaser;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue
the Warrant with respect to the Tranche A Amount to Purchaser substantially in the form of <U>Exhibit D</U> attached hereto (the
&ldquo;<U>Warrant</U>&rdquo;), which Warrant shall provide that as of the Effective Date, Purchaser may immediately exercise the
number of shares of Warrant Stock that it is entitled to purchase as a result of the delivery by the Purchaser to the Company
of the Tranche A Amount, as calculated by the formula in the Warrant, provided that prior to the Second Closing: (A) the Warrant
may be amended and restated in its entirety to reflect review and comment by counsel to Purchaser, and (ii) the Company shall
have filed an amendment to its Certificate of Incorporation, if necessary, so that it shall have a sufficient number of authorized
and unissued shares of its Common Stock to enable it to issue the number of shares of Warrant Stock (as defined in the Warrants)
that may be issued to Purchaser pursuant to the Warrants, assuming that the Purchaser acquires the Tranche A Note, the Tranche
B Note and all Additional Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding the actual date of the
Initial Closing, the Initial Closing shall be deemed for all purposes to have occurred on June 30, 2012 (&ldquo;<U>Effective Date</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Second
Closing</U>. Within thirty (30) days after the satisfaction (or waiver) of all the conditions set forth in Sections 5(b) and 6(b)
hereof on a date mutually agreed to by Purchaser and the Company (&ldquo;<U>Second Closing</U>&rdquo;), the Company will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue
and sell to the Purchaser, and the Purchaser shall purchase from the Company, the secured promissory note substantially in the
form of the Tranche A Note, provided that such additional promissory note (&ldquo;<U>Tranche B Note</U>&rdquo;) shall be in the
principal amount of $700,000 (the &ldquo;<U>Tranche B Amount</U>&rdquo;), as further described in Section 2(b);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue
the Warrant with respect to the Tranche B Amount to Purchaser substantially in the form of Warrant issued with respect to the
Tranche A Amount, provided that the number of Warrant Shares and the Warrant Price (as such terms are defined in the Warrant)
shall be proportionately adjusted to reflect the Tranche B Amount and the value of the Warrant Stock at the time of issuance of
such Warrant, which Warrant shall provide that as of the Second Closing, Purchaser may immediately exercise the number of shares
of Warrant Stock that it is entitled to purchase as a result of the delivery by the Purchaser to the Company of the Tranche B
Amount, as calculated by the formula in the Warrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to the Purchaser cash in the amount of the Administrative Fee, by wire transfer of immediately available funds, in accordance
with wire instructions provided by the Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional
Closing(s)</U>. Upon the terms and subject to the satisfaction (or waiver) of all the conditions set forth in Sections 5(b) and
6(b) hereof on such date and time as the Company and the Purchaser shall mutually agree (each such date, an &ldquo;<U>Additional
Closing</U>&rdquo;), the Company will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue
and sell to the Purchaser, and the Purchaser will purchase from the Company, additional secured promissory notes substantially
in the form of the Tranche A Note, provided that each such additional promissory note (each an &ldquo;<U>Additional Note</U>&rdquo;)
shall be in the principal amount of $1,000,000 (each such amount, the &ldquo;<U>Additional Tranche Amount</U>&rdquo;), and provided
further that all such Additional Notes, together with the Tranche A Note and the Tranche B Note, shall at no time exceed the principal
amount of $10,000,000; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issue
a Warrant with respect to the Additional Tranche Amount to Purchaser substantially in the form of Warrant issued with respect
to the Tranche A Amount, provided that the number of Warrant Shares and the Warrant Price (as such terms are defined in the Warrant)
shall be proportionately adjusted to reflect the Additional Tranche Amount and the value of the Warrant Stock at the time of issuance
of such Warrant, which Warrant shall provide that as of such Additional Closing, Purchaser may immediately exercise the number
of shares of Warrant Stock that it is entitled to purchase as a result of the delivery by the Purchaser to the Company of the
Additional Tranche Amount, as calculated by the formula in the Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing</U>.
At the Initial Closing, the Second Closing or any Additional Closing (each, a &ldquo;<U>Closing</U>&rdquo;), such Closing shall
be held in person or via electronic transmission and conference telephone on the date of the applicable Closing. At each Closing,
the parties hereto shall execute and deliver all documents and instruments necessary to effect the transfers provided for herein
and not theretofore effected and to evidence their respective compliance with the provisions of this Agreement.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notes</U>.
The terms of the Tranche A Note, the Tranche B Note and each Additional Note (collectively, along with any and all renewals, extensions,
modifications, replacements, substitutions, increases, and rearrangements thereof, the &ldquo;<U>Notes</U>&rdquo;) shall be as
follows:</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maturity</U>.
All Notes will mature on June 30, 2015 at 110% of the original principal amount, plus all accrued and unpaid interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interest
Rate</U>. The Notes shall bear interest at a rate of fifteen percent (15.0%) per annum (&ldquo;<U>Interest Rate</U>&rdquo;), computed
on the basis of a 360-day year and for the actual number of days elapsed, compounded monthly, and payable monthly in cash. Interest
shall accrue as of the date that the Purchaser acquires the Note and pays the applicable purchase price therefor, and shall terminate
on the date that the principal amount of such Note has been paid in full.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prepayment</U>.
The Notes may not be prepaid, in whole or in part, by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change
in Control</U>. On and after a Change in Control, the Purchaser shall have the right to immediately put to the Company, in whole
or in part, the Notes for cash at 110% of the original principal amount, plus all accrued and unpaid interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default
Clause</U>. The penalties for an Event of Default as set forth in each Note shall include a default interest rate equal to the
lesser of (i) the sum of the Interest Rate plus three percent (3.0%, i.e. 300 basis points) per annum or (ii) the maximum rate
of interest permissible under applicable law; however, the Company shall have a 10-day period to remedy any monetary Event of
Default before such default rate of interest takes effect, and if non-monetary, the Company shall have thirty (30) days to remedy
before such default rate of interest takes effect, plus such additional time as the Purchaser shall grant, in Purchaser&rsquo;s
sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 2.&nbsp;<U>Certain
Terms and Covenants Applicable to the Notes</U>. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Note
Payments</U>. At each Closing, subject to the satisfaction or waiver of all applicable conditions to Closing, the Purchaser shall
pay to the Company, by wire transfer in immediately available funds, in accordance with wire instructions provided by the Company,
an amount equal to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 107pt; text-align: justify; text-indent: -35pt">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$300,000
at the Initial Closing, less any amounts previously lent to the Company by Purchaser to provide bridge financing, including interest
accrued on such prior amounts to the date of the Initial Closing;</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 107pt; text-align: justify; text-indent: -35pt">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$700,000
at the Second Closing, if any; and</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 107pt; text-align: justify; text-indent: -35pt">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1,000,000
at each Additional Closing, if any.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Use
of Proceeds</U>. The proceeds from the sale of the Notes hereunder will be used for the sole purpose of drilling development wells
in Payne and Lincoln County, Oklahoma with a minimum 78% net revenue interest, repayment of accounts payables previously disclosed
to Purchaser in an amount of up to $210,000, costs and expenses associated with the transactions contemplated under the Purchaser
Transaction Documents, repayment of the promissory notes between the Company and John E. Friesen and the Company and Robert McIntosh
and general working capital. Specifically, $320,000 of the proceeds of the second $1,000,000 tranche of financing pursuant to
this Agreement may be used to repay amounts owed to Mr. Friesen, and the remaining amounts owed to Mr. Friesen may be repaid from
the proceeds of the third $1,000,000 tranche of financing pursuant to this Agreement. All amounts owed to Mr. McIntosh pursuant
to the terms of his unsecured promissory note, currently $39,200 (the &ldquo;McIntosh Promissory Note&rdquo;), may be repaid from
the proceeds of the $700,000 Second Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>First
Liens</U>. The Purchaser shall have first priority security interests in all of the Company&rsquo;s right, title and interest
in and to all personal Properties of the Company, now owned or hereafter acquired, pursuant to the First Lien Security Agreement
and, prior to the Second Closing, the Purchaser shall have security interests in all of the Company&rsquo;s current and future
real Property, now owned or hereafter acquired, pursuant to the First Lien Mortgages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Covenant Tests</U>. During the Restriction Period, each of the following conditions must be met:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>PV10
Coverage Ratio</U>. Within seventy-five (75) days of each Determination Date, the Company shall deliver to the Purchaser a certificate
executed by its principal financial officer (an &ldquo;<U>Officer&rsquo;s Certificate</U>&rdquo;) disclosing the PV10 Coverage
Ratio and any Financial Covenant Test Failure Amount (as defined below) with respect to the Notes as of the applicable Determination
Date, including details of the calculations and components thereof. Notwithstanding anything herein to the contrary, the initial
Officer&rsquo;s Certificate to be delivered by the Company pursuant to this Section 2(d)(i) shall be delivered within seventy-five
(75) days of December 31, 2012, with December 31, 2012 being the initial Determination Date. If the Company delivers an Officer&rsquo;s
Certificate that discloses a Financial Covenant Test Failure, unless waived by the Purchaser, the Company shall promptly, and
in no event later than five Business Days after such delivery, prepay, without demand or notice by the holder of any Note, by
wire transfer of immediately available funds to such account as the holder of such Note may from time to time designate, an amount
equal to the Financial Covenant Test Failure Amount with respect to such Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Financial
Covenant Test Failure Amount</U>&rdquo; means in the event that there is a Financial Covenant Test Failure as of any Determination
Date an amount equal to the product of (I) the result of (X) one (1) minus (Y) the quotient of the PV10 Coverage Ratio as of such
Determination Date, divided by the Required PV10 Coverage Ratio as of such Determination Date, multiplied by (II) the Total Debt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Financial
Covenant Test Failure</U>&rdquo; means that, as of any Determination Date, the PV10 Coverage Ratio as of such Determination Date
is less than the Required PV10 Coverage Ratio as of such Determination Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maximum
Amount of Notes</U>. The aggregate outstanding principal balance and accrued but unpaid interest outstanding under the Notes may
not exceed the lesser of $10,000,000 or any of the following, unless waived by the Purchaser in its discretion:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">(A) 90% of the PDP PV10 Value
as indicated in the Company&rsquo;s most recent Reserve Report;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">(B) the Company&rsquo;s trailing
90-day average net daily oil production multiplied by $40,000; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">(C) Ten times (10x)
the Company&rsquo;s most recent quarterly EBITDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Current
Asset Test</U>. The Current Assets shall be greater than the Current Liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capital
Expenditures</U>. During the Restriction Period, without the prior written consent of the Purchaser, which shall not be unreasonably
withheld, the Company shall not make, or seek to make, any drilling capital expenditures other than (A) Workovers in the ordinary
course of business to maintain Proved Reserves, and (B) for new drilling Capital Expenditures in Payne and Lincoln County, Oklahoma.
In addition, during the Restriction Period, without the prior written consent of the Purchaser, the Company shall not authorize
or engage in any acquisition of all or substantially all of the equity or assets of any other operating business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reimbursement
of Expenses</U>. The Company shall reimburse and pay to the Purchaser actual and reasonable out-of-pocket expenses incurred by
the Purchaser in connection with the Purchaser Transaction Documents and the transactions contemplated hereby and thereby, which
shall, for the Initial Closing only, not exceed an aggregate amount of $25,000. All such outstanding expenses shall be a condition
precedent to and shall be paid in full at each Closing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Hedging
Transactions</U>. Without the prior written approval of the Purchaser, which shall not be unreasonably withheld, from the date
of this Agreement until the first date on which the Purchaser is not the holder of any Notes, the Company shall not protect any
of the Company&rsquo;s oil and gas production from price fluctuations, or deviate in any material respect from methods or strategies
approved by the Company therefor, using derivatives, <FONT STYLE="color: #220011">fixed price agreements, forward sales, volumetric
production payments and/or similar instruments or transactions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #220011">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #220011">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Budget</U>.
</FONT>Company may only use proceeds of the Notes in accordance with a Budget that Purchaser has approved. The Company shall submit
to Purchaser by the 10<SUP>th </SUP>day following each quarter in form, substance and detail satisfactory to the Purchaser, of
the source, use and applications of funds expended by the Company during the previous calendar quarter pursuant to that quarter&rsquo;s
Budget approved by Purchaser and a reconciliation, including a line-by-line item comparison of budgeted to actual expenditures
setting forth in reasonable detail any explanation of any differences between budgeted and actual amounts of funds received or
used and expended by Company during the calendar quarter. The Budget shall be delivered prior to, and as a condition precedent
to, the Second Closing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Ancillary
Documents</U>. The Company and the Purchaser, as applicable, shall have executed, delivered, filed or adopted, as the case may
be, and the Purchaser shall have received fully executed or certified copies thereof, of the following documents (the &ldquo;<U>Ancillary
Documents</U>&rdquo;) by the dates indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First
Lien Security Agreement by the Initial Closing, provided that prior to the Second Closing the First Lien Security Agreement may
be amended and restated in its entirety to reflect review and comment by counsel to Purchaser;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tranche
A Note by the Initial Closing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control
Agreement as soon as possible after the Initial Closing, but by no later than the Second Closing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant
by the Initial Closing, and an Amended and Restated original Warrant by the Second Closing, along with a new Warrant by the Second
Closing and new Warrants for each Additional Closing, if any;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First
Lien Mortgages by the Second Closing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tranche
B Note by the Second Closing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional
Note by each Additional Closing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: -0.5in">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
Services Agreement between Purchaser and the Company by the Initial Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax
Matters</U>. Contemporaneously with the execution and delivery of this Agreement, the Purchaser shall furnish to the Company two
copies of a properly completed and executed IRS Form W-9 and such other documents (if any) as may be required in order to establish
that the Company is not required to withhold taxes from any payments to the Purchaser hereunder or under any of the Notes or any
of the other Purchaser Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 3.&nbsp;<U>Representations
and Warranties of the Company</U>.</B> The Company represents and warrants to the Purchaser, as of the date hereof, as of the
Initial Closing, the Second Closing Date, if any, and each Additional Closing Date, if any, that:</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization;
Capitalization</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company is
a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite
power to carry on its business as it is now being conducted and is now contemplated to be conducted following the Effective Date.
The Company is duly qualified to do business and in good standing in all of the jurisdictions in which the failure of the Company
to be qualified would be reasonably likely to have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
authorized capital stock of the Company consists of 200,000,000 shares of common stock (&ldquo;<U>Common Stock</U>&rdquo;). The
Company has no other classes of Equity Securities. At the Effective Date and at Initial Closing, 47,470,406<B> </B>Common Stock
shares will be issued and outstanding (&ldquo;<U>Stock Outstanding</U>&rdquo;), which will be the only Common Stock shares issued
and outstanding, and all of which will be duly authorized, validly issued, fully paid and non-assessable, and owned of record
and beneficially by the Persons, and in the amounts, set forth on <U>Schedule 3(a)(ii)</U>. The Company has, or will have upon
issuance, sufficient amounts of authorized, but unissued, shares of Common Stock to cover the shares to be issued to Purchaser
upon the exercise of each of the Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has reserved no greater than 2,560,000 shares of its Common Stock for issuance upon conversion of Company&rsquo;s outstanding
indebtedness prior to giving effect to this Agreement, which conversion shall take place pursuant to the Third Amendment to Promissory
Notes. Except as set forth on <U>Schedule 3(a)(iii)</U>, there are no additional outstanding options, warrants, instruments, agreements
or other documents requiring the Company to issue, or giving any person the right to acquire, any additional Common Stock or other
Equity Securities of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subsidiaries</U>.
The Company does not own any Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Power,
etc</U>. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement and
each of the Purchaser Transaction Documents to which it is (or will be) bound, including, without limitation, the issuance of
the Notes and Warrants and, as of the Effective Date, the Initial Closing, the Second Closing and each Additional Closing, will
possess all licenses, permits, franchises and other Governmental Authorities&rsquo; authorizations necessary to own and operate
its properties and to carry on its business as now proposed to be conducted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Authorization; No Conflict</U>. The Purchaser Transaction Documents to which the Company is a party and each of the transactions
contemplated hereby and thereby, including the issuance of the Notes and Warrants to the Purchaser, have been duly authorized
by all necessary corporate action of the Company, and no further such authorization is required. Neither this Agreement nor any
Purchaser Transaction Documents to which the Company is a party, nor the consummation of the transactions provided for herein
or therein, materially conflicts with or materially violates (i) any applicable provision of the Company&rsquo;s articles of incorporation,
bylaws or other similar organizational document, (ii) any agreement by which the Company or any of its properties is bound, except
as would not reasonably be expected to have a Material Adverse Effect, or (iii) any applicable federal, state or local law, rule
or regulation or judicial order applicable to the Company or any of its properties, except as would not reasonably be expected
to have a Material Adverse Effect. This Agreement and each Ancillary Document which is dated of even date herewith have been duly
executed and delivered by the Company. The Purchaser Transaction Documents, when executed and delivered by all parties, will constitute
the legal, valid and binding obligation of the Company, enforceable against the Company, in accordance with their respective terms,
except as may be limited by applicable bankruptcy, insolvency, moratorium, fraudulent transfer, preference and other laws and
equitable principles affecting the scope and enforcement to creditors&rsquo; rights generally. As of the Initial Closing, the
Second Closing and any Additional Closings, the Ancillary Documents required to be delivered at such Closing shall have been duly
executed and delivered by the Company. The Purchaser Transaction Documents, when executed and delivered by all parties, will constitute
the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their respective terms
except as may be limited by applicable bankruptcy, insolvency, moratorium, fraudulent transfer, preference and other laws and
equitable principles affecting the scope and enforcement to creditors&rsquo; rights generally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation;
No Default</U>. Except as set forth on <U>Schedule 3(e)</U>, there are no material claims, actions, suits, arbitrations, investigations
or proceedings pending against or threatened against the Company, or any of their respective officers or employees (in their capacities
as such) or their businesses, properties or assets, or the transactions contemplated by this Agreement or the Purchaser Transaction
Documents, by any Person, or by any securities exchange or national securities association. There is not in existence any order,
judgment or decree of any court, governmental authority or agency or arbitration board or tribunal enjoining the Company from
taking, or requiring the Company to take, action of any kind with respect to the business of the Company. The Company is not in
violation of any laws or governmental rules or regulations applicable to the Company or its respective businesses or properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title
to Assets</U>. <U>Schedule 3(f)</U> lists all of the material tangible personal property and similar interests of the Company
which the Company purports to own as of the date of this Agreement and as of the Effective Date and the Initial Closing, free
and clear of all Liens, except for Permitted Liens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Material
Agreements</U>. <U>Schedule 3(g)</U> lists all material agreements, leases, licenses or sublicenses, contracts or other agreements,
arrangements, understandings and commitments, whether written or oral, to which the Company will be a party, or by which the Company
will be bound as of the date of this Agreement and as of the Effective Date and as of Initial Closing (the &ldquo;<U>Contracts</U>&rdquo;).
The Company is not in breach of or default under any of the Contracts, nor has any event or omission occurred on the part of the
Company which through the passage of time or the giving of notice, or both, would constitute a breach of or default thereunder
or cause the acceleration of or give rise to the right to accelerate Company&rsquo;s obligations thereunder or result in the creation
of any Liens on any of the assets owned, used or occupied by Company thereunder, in any event, except in each case as would not
reasonably be expected to have a Material Adverse Effect. No third party is in breach of or default under any Contract, except
as would not reasonably be expected to have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consents</U>.
Except as set forth in <U>Schedule 3(h)</U> or as expressly contemplated by this Agreement or any other Purchaser Transaction
Documents, no notice to, consent, approval or authorization of, or filing, registration or qualification with, any Governmental
Authority or any other Person on the part of the Company is required in connection with the execution, delivery and performance
of this Agreement or any Ancillary Document or any Purchaser Transaction Document, or the offer, issuance, sale or delivery of
the Notes and Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Real
Property</U>.<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule 3(i)</U> lists all of the Real Property of the
Company as of the Effective Date and as of the Initial Closing. <U>Schedule 3(i)</U> sets forth a complete list of all material
<FONT STYLE="color: black">defects in title affecting the Real Property of the Company, other than Permitted Liens, as of the
Effective Date and as of the Initial Closing. Except as set forth on <U>Schedule 3(i)</U>, the Company has good and marketable
title to all of such Real Property, free and clear of all Liens except Permitted Liens</FONT>.<FONT STYLE="color: black"><B> </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Outstanding
Indebtedness; Liens</U>. Payments of principal and other payments due under the Notes will, upon issuance in connection with the
Initial Closing, the Second Closing or any Additional Closing, as applicable, rank senior to all other Indebtedness of the Company.
The Company will make all payments of principal, interest, fees, and all other payments required under this Agreement and each
of the Notes when due. Other than Permitted Indebtedness, the Company on any Closing Date will not have, any outstanding Indebtedness.
There are no, and on each Closing there will not be any, Liens on any of the assets of the Company other than Permitted Liens.
There are no, and on each Closing Date there will not be any, financing statements securing obligations of any amounts filed against
the Company other than any in connection with Permitted Liens.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Accounts</U>.
Each of the accounts in the name of, on behalf of, or for the benefit of the Company is listed in <U>Schedule VI</U> to the First
Lien Security Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Royalty
Burdens</U>. The Royalty Burden of any Property is no greater than 22.0% and no Royalty Burden is held and/or owned directly,
indirectly or for the benefit of any Related Party or owner of any Common Stock or Equity Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Current
Liabilities.</U> Current Liabilities as of June 13, 2012 total no more than $443,000 and are reduced to $210,000 as of the Effective
Date in exchange for no more than 580,500 shares of Common Stock (which shares are included in the Outstanding Stock).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Contingent
Obligations</U>. The Company has no Contingent Obligations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;(o) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;<U>Other Agreements</U>. Each
of the Third Amendment to Promissory Notes, the Lien Termination Agreement, and the Royalty Termination Agreement are executed
and in effect as of the Initial Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conduct
of Business</U>. &nbsp;&nbsp;&nbsp;At all times from June 13, 2012 until the Initial Closing, the Company has not conducted any business or had
any operations, assets, obligations or liabilities of any type whatsoever (contingent or otherwise), except for the fees and
expenses related to the preparation and negotiation of this Agreement and the Purchaser Transaction Documents and other
transactions, obligations or liabilities incurred in operating the Company&rsquo;s business in the ordinary course.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The Company has made available to the Purchaser all the information reasonably available relating to the Company that Purchaser
has requested for deciding whether to purchase the Securities and that would be considered relevant in connection with such a
purchase. No representation or warranty of the Company contained in this Agreement or any Purchaser Transaction Documents and
no certificate furnished or to be furnished to the Purchaser at any subsequent Closing contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in
light of the circumstances under which they were made</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>SECTION 4.&nbsp;<U>Representations
and Warranties of the Purchaser</U>.</B> The Purchaser represents and warrants to the Company, as of the Effective Date and as
of the Initial Closing, the Second Closing and each Additional Closing, if any, that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization;
Power</U>. The Purchaser is a limited liability company, duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite power and authority to enter into and perform its obligations under this Agreement,
the Purchaser Transaction Documents to which it is (or will be) bound, and to consummate the transactions contemplated hereby
and thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Authorization</U>. This Agreement, each of the other Purchaser Transaction Documents to which Purchaser is a party and each of
the transactions contemplated hereby and thereby have been duly authorized by all necessary member action of the Purchaser and
no further consent or authorization is required by the Purchaser, its general partner (if any), limited partners (if any) or other
equity holders (if any). Neither this Agreement nor any of the transactions provided for herein or in any other Purchaser Transaction
Document to which Purchaser is a party, violates (i) any provision of the Purchaser&rsquo;s certificate of formation or limited
liability operating agreement, (ii) any agreement by which the Purchaser or any of its properties is bound, except as would not
reasonably be expected to have a material adverse effect on the Purchaser&rsquo;s performance of its obligations under this Agreement
or any of the other Ancillary Documents, or (iii) any federal, state or local law, rule or regulation or judicial order applicable
to Purchaser or its properties, except as would not reasonably be expected to have a material adverse effect on the Purchaser&rsquo;s
performance of its obligations under this Agreement or any of the other Ancillary Documents. This Agreement and the other Purchaser
Transaction Documents dated of even date herewith to which the Purchaser is a party have been duly executed and delivered by the
Purchaser and are legal, valid and binding on the Purchaser and enforceable against the Purchaser in accordance with their respective
terms, except as may be limited by applicable bankruptcy, insolvency, moratorium, fraudulent transfer, preference and other laws
and equitable principles affecting the scope and enforcement to creditors&rsquo; rights generally. As of each of the Effective
Date, the Initial Closing, the Second Closing and each Additional Closing, if any, the Purchaser Transaction Documents dated as
of or prior to the Initial Closing, the Second Closing or any Additional Closing, as applicable, to which the Purchaser is a party
shall have been duly executed and delivered by the Purchaser, and shall be legal, valid and binding on the Purchaser, and enforceable
against the Purchaser in accordance with their respective terms except as may be limited by applicable bankruptcy, insolvency,
moratorium, fraudulent transfer, preference and other laws and equitable principles affecting the scope and enforcement to creditors&rsquo;
rights generally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consents</U>.
No consent, approval or authorization of, or filing, registration or qualification with, any governmental authority or other person
on the part of the Purchaser is required in connection with the execution, delivery and performance of this Agreement or any other
Purchaser Transaction Document, or the purchase of the Notes and the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Intent</U>. The Purchaser is acquiring the Notes and the Warrants (the Notes and the Warrants being collectively referred to herein
as the &ldquo;<U>Securities</U>&rdquo;) for the Purchaser&rsquo;s own account for investment; <U>provided</U>, <U>however</U>,
that by making the representations herein, the Purchaser does not agree to hold any of the Securities for any minimum or other
specific term, and reserves the right to dispose of any of the Securities at any time in accordance with or pursuant to an effective
registration statement or an exemption under the Securities Act of 1933, as amended (the &ldquo;<U>Securities Act</U>&rdquo;),
subject to the provisions hereof and the other Purchaser Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Experience</U>.
The Purchaser has sufficient knowledge and experience in investing in companies similar to the Company so as to be able to evaluate
the risks and merits of its investment in the Company and is able financially to bear the risks thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Accredited
Investor</U>. The Purchaser is an &ldquo;Accredited Investor&rdquo; within the meaning of Regulation D under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Information</U>.
The Purchaser and its advisors, if any, have performed their own due diligence notwithstanding having been furnished with materials
relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities
that have been requested by the Purchaser. The Purchaser and its advisors, if any, have been afforded the opportunity to ask questions
of, and have received answers from, the Company and its representatives, and the other parties to the Ancillary Documents with
respect to the Company and the transactions contemplated thereby. Neither such inquiries nor any other due diligence investigations
conducted by the Purchaser or its advisors, if any, or its representatives shall modify, amend or affect the Purchaser&rsquo;s
right to rely on the representations and warranties of the Company contained in Section&nbsp;3 hereof or contained in any of the
other Ancillary Documents. The Purchaser acknowledges and understands that its investment in the Securities involves a high degree
of risk. The Purchaser has sought and reviewed such accounting, legal and tax advice as it has considered necessary to make an
informed investment decision with respect to its acquisition of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictions
on Transfer</U>. The Purchaser understands that the Securities may not be sold, transferred, or otherwise disposed of without
registration under the Securities Act or an exemption therefrom. The Purchaser shall refrain from transferring or otherwise disposing
of the Securities, or any interest therein, in such a manner as to cause the Company to be in violation of the registration requirements
of the Securities Act or applicable state securities or &ldquo;blue sky&rdquo; laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation</U>.
There are no claims, actions, suits, arbitrations, investigations or proceedings pending against or affecting or, to the knowledge
of the Purchaser, threatened against the Purchaser, or any of its officers or employees (in their capacities as such), relating
to the transactions contemplated by this Agreement or the other Purchaser Transaction Documents to which the Purchaser is a party,
by any Person, Governmental Authority or by any securities exchange or national securities association.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>SECTION 5.&nbsp;<U>Conditions
Precedent to Obligations of the Purchaser</U>. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Initial
Closing</U>. The obligation of the Purchaser under this Agreement to purchase the Tranche A Note from the Company at the Initial
Closing is subject to and conditioned upon the satisfaction at or prior to the Initial Closing of each of the following conditions,
<U>provided</U> that these conditions are for the sole benefit of the Purchaser and may be waived by the Purchaser at any time
in its sole discretion by providing the Company with written notice thereof:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations;
Performance</U>. The representations and warranties of the Company contained the Purchaser Transaction Documents to which it is
party, shall be true and correct in all material respects at and as of the date hereof and on and as of the Effective Date and
as of the Initial Closing with the same effect as though made on and as of the Initial Closing if the Initial Closing is different
from the date hereof, except that any representations or warranties that relate to a particular date or period shall be true and
correct in all material respects as of such date or period. The Company shall have duly performed, satisfied and complied with
all covenants, agreements and conditions required by this Agreement and each of the other Purchaser Transaction Documents to which
it is a party to be performed, satisfied or complied with by the Company, as applicable, prior to or on the Initial Closing. The
Company shall have delivered to the Purchaser a certificate, dated the Effective Date and signed by the principal executive officer
of the Company, certifying to the foregoing and to the incumbency of officers and such other matters as the Purchaser may reasonably
request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Proceedings</U>.
All corporate and other proceedings of the Company in connection with this Agreement and the other Purchaser Transaction Documents
to which it is a party and the transactions contemplated hereby and thereby, and all documents and instruments incident thereto,
shall be reasonably satisfactory in substance and form to the Purchaser and its counsel, and the Purchaser and its counsel shall
have received all such documents and instruments, or copies thereof, certified if requested, as the Purchaser may reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consents</U>.
All consents needed by the Company for the execution, delivery and performance of this Agreement and each other Purchaser Transaction
Document shall have been obtained, including without limitation the authorization and reservation of sufficient shares of Common
Stock to issue upon exercise of each Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchaser
Transaction Documents</U>. The Company shall have (A) executed each of the Purchaser Transaction Documents to which it is a party
(other than the Tranche B Note, the Additional Tranche Notes and the First Lien Mortgages) and delivered fully executed copies
of this Agreement and each of the other Purchaser Transaction Documents (other than the First Lien Mortgages and Control Agreement)
to which the Company is a party to the Purchaser, and (B) delivered fully executed copies from third parties that are party thereto
of the Third Amendment to the Promissory Notes, the Lien Termination Agreement, and the Royalty Termination Agreement. <B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal
Proceedings</U>. There shall be no law, rule or regulation and no order shall have been entered (and not vacated) by a court or
administrative agency of competent jurisdiction in any litigation, which (A) enjoins, restrains, makes illegal or prohibits consummation
of the transactions contemplated hereby, by any other Purchaser Transaction Document, (B) requires separation of a significant
portion of the assets or business of the Company after the Effective Date or (C) restricts or interferes with, in any material
way, the operation of the Company or its businesses or assets after the Effective Date, materially adversely affects the financial
condition, results of operations, properties, assets, business or prospects of the Company; and there shall be no litigation pending
before a court or administrative agency of competent jurisdiction, or threatened, seeking to do, or which, if successful, would
have the effect of, any of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financing
Statements</U>. The Company shall have given, executed, delivered, filed and/or recorded any financing statements, notices, instruments,
documents, agreements and other papers that may be necessary or desirable (as determined the Purchaser) to create, preserve, perfect
or validate the security interests granted to the Purchaser pursuant to the First Lien Security Documents and to enable the Purchaser
to exercise and enforce its rights with respect to such security interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance</U>.
The Company shall have complied and shall then be in compliance with all the terms, covenants and conditions of the Purchaser
Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Event of Default</U>. There shall have occurred and be continuing no Event of Default and no event that, with the giving of notice
or the lapse of time or both, could constitute an Event of Default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Good
Standings</U>. Purchaser shall have received certificates of good standing for Company issued by the state of organization of
Company and by each state in which the Company is doing and currently intends to do business for which qualification is required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Statements</U>. Purchaser shall have received the Company&rsquo;s Financial Statements and such reports, certifications, and other
operational information required to be delivered under Section 8(g) of this Agreement if they have not already been provided.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Creditor
Releases</U>. The Company shall have received full and complete releases from its creditors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Diligence</U>. The Purchaser shall have completed the portion of its due diligence investigation regarding the Company and its
assets, business and operations, that it is able to complete and believes is sufficient for the Initial Closing, to Purchaser&rsquo;s
satisfaction; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Net
Revenue Interest</U>. The Company&rsquo;s oil and gas producing Properties have a 78% (8/8ths) minimum net revenue interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Second Closing and any Additional Closings</U>. The obligation of the Purchaser under this Agreement to purchase the Tranche
B Note from the Company at the Second Closing and to purchase any Additional Note at any Additional Closing is subject to and
conditioned upon the satisfaction at or prior to the Second Closing or any Additional Closing all of the conditions set forth
in Section 6(a) above as of the applicable subsequent Closing. For clarity, all conditions set forth above that must be satisfied
or waived by Purchaser as of the Initial Closing must also be true as of each subsequent Closing and, for the purposes of this
Section 6(b), all references in Section 6(a) to the Initial Closing shall be deemed references to each subsequent Closing; <U>provided
</U>that these conditions are for the sole benefit of the Purchaser and may be waived by the Purchaser at any time in its sole
discretion by providing the Company with written notice thereof. In addition, the conditions set forth below must be met as of
each subsequent Closing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: -0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Initial
Closing</U>. The Initial Closing shall have occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional
Documents</U>. At the Second Closing, the Tranche B Note shall be executed by the Company and delivered to Purchaser. To the extent
not provided prior to the Second Closing, the First Lien Mortgages and the Control Agreement shall have been executed and delivered
to Purchaser, and filed in the appropriate jurisdictions. At each Additional Closing, the Additional Note shall be executed by
the Company and delivered to Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Issuance of Additional Notes</U>. The Second Closing shall have occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Section 2 Terms and Covenants</U>. The Company shall have fully complied with all of the terms and covenants set forth in
Section 2 above and there must be no outstanding Financial Covenant Test Failure; provided, however, for the Second Closing only,
with regard to the Current Asset Test under Section 2(d)(iii), the ratio of Current Assets to Current Liabilities shall be equal
or greater to 0.7.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations;
Performance</U>. The representations and warranties of the Company contained in this Agreement and the other Purchaser Transaction
Documents to which it is party, shall be true and correct in all material respects at and as of the date as of the Second Closing
and any Additional Closing with the same effect as though made on and as of the Second Closing and any Additional Closing, as
applicable (except that any representations or warranties that relate to a particular date or period shall be true and correct
in all material respects as of such date or period), giving effect to the updates required by the last sentence of this paragraph
(v) so long as there is nothing disclosed in any such updates that would, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. At or prior to the Second Closing and any Additional Closing, there shall not be any continuing
Event of Default. The Company shall have delivered to the Purchaser a certificate, dated the Second Closing and any Additional
Closing(s) and signed by the principal executive officer of the Company, certifying, to the foregoing and to the incumbency of
officers and such other matters as the Purchaser may reasonably request, including an update as of the Second Closing and any
Additional Closing(s) as to any developments with the Company and any revisions to the representations, warranties and covenants
of the Company contained in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fee
Amount and Expenses</U>. The Company shall have delivered to the Purchaser the Administrative Fee on the Second Closing, and any
expenses of the Purchaser incurred in connection with the Second Closing or any Additional Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financing</U>.
The Second Closing and each Additional Closing is subject to Purchaser having sufficient financing available to pay the Second
Tranche Amount or the Additional Tranche Amount, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Diligence</U>. Due diligence related to the Second Closing shall be performed by Purchaser and its advisors and include, but not
be limited to, title, accounting, organizational, and environmental as well as geological, operational and engineering with respect
to the Properties and be completed no later than July 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 37pt">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capital
Expenditures</U>. Purchaser shall have received a Capital Expenditure schedule and budget for the use of proceeds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance</U>.
Purchaser shall have received insurance certificates with respect to each of the insurance policies of Company required hereunder
showing Purchaser as additional insured as contemplated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title
Insurance</U>. Purchaser shall have received an updated title insurance policy on the Real Property owned by Company.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P> <P STYLE="font: 10pt Courier; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 6.&nbsp;<U>Conditions
Precedent to Obligations of Company</U>. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Initial
Closing</U>. The obligation of the Company under this Agreement to issue and sell the Tranche A Note and the Warrant to the Purchaser
at the Initial Closing is subject to and conditioned upon the satisfaction at or prior to the Initial Closing of each of the following
conditions, <U>provided</U> that these conditions are for the sole benefit of the Company and may be waived by the Company at
any time in its sole discretion by providing the Purchaser with written notice thereof:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations;
Performance</U>. The representations and warranties of the Purchaser contained in this Agreement and the other Purchaser Transaction
Documents to which it is a party shall be true and correct in all material respects at and as of the date hereof and on and as
of the Initial Closing with the same effect as though made on and as of the Initial Closing if the Initial Closing is different
from the date hereof, except that any representations or warranties of the Purchaser that relate to a particular date or period
shall be true and correct in all material respects as of such date or period. The Purchaser shall have duly performed, satisfied
and complied with all covenants, agreements and conditions required by this Agreement and the other Purchaser Transaction Documents
to which it is a party be performed, satisfied or complied with by the Purchaser prior to or on the Initial Closing. The Purchaser
shall have delivered to the Company a certificate, dated the Initial Closing and signed by its duly authorized officer certifying
to the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Proceedings</U>.
All limited liability company and other proceedings of the Purchaser in connection with this Agreement and the other Purchaser
Transaction Documents to which it is a party and the transactions contemplated hereby and thereby, and all documents and instruments
incident thereto, shall be reasonably satisfactory in substance and form to the Company and its counsel, and the Company and its
counsel shall have received all such documents and instruments, or copies thereof, certified if requested, as may be reasonably
requested.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal
Proceedings</U>. There shall be no law, rule or regulation and no order shall have been entered (and not vacated) by a court or
administrative agency of competent jurisdiction in any litigation, which (A) enjoins, restrains, makes illegal or prohibits consummation
of the transactions contemplated hereby, by any other Purchaser Transaction Document (B) requires separation of a significant
portion of the assets or business of the Company or (C) restricts or interferes with, in any material way, the operation of the
Company or its respective businesses or assets, or materially adversely affects the financial condition, results of operations,
properties, assets, business or prospects of the Company; and there shall be no litigation pending before a court or administrative
agency of competent jurisdiction, or threatened, seeking to do, or which, if successful, would have the effect of, any of the
foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchaser
Transaction Documents</U>. The Purchaser shall have executed each of this Agreement and each of the other Purchaser Transaction
Documents to which it is a party and delivered the same to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tranche
A Note Payment.</U> The Purchaser shall have delivered to the Company the Tranche A Amount set forth in Section 2(a) for the Tranche
A Note being purchased by the Purchaser at the Initial Closing by wire transfer of immediately available funds as provided in
Section 2(a) hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Second
Closing and Any Additional Closings</U>. The obligation of the Company under this Agreement to issue and sell the Tranche B Note
and any Additional Notes to the Purchaser at the Second Closing and any Additional Closing, as applicable, is subject to and conditioned
upon the satisfaction at or prior to the Second Closing or any Additional Closing, as applicable, of each of the following conditions,
<U>provided</U> that these conditions are for the sole benefit of the Company and may be waived by the Company at any time in
its sole discretion by providing the Purchaser with written notice thereof:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations;
Performance</U>. The representations and warranties of the Purchaser contained in this Agreement and the other Purchaser Transaction
Documents to which Purchaser is a party shall be true and correct in all material respects at and as of the date hereof and on
and as of the Second Closing and any Additional Closing(s) with the same effect as though made on and as of the Second Closing
and any Additional Closing(s), except that any representations or warranties of the Purchaser that relate to a particular date
or period shall be true and correct in all material respects as of such date or period. The Purchaser shall have duly performed,
satisfied and complied with all covenants, agreements and conditions required by this Agreement and the other Purchaser Transaction
Documents<B><I> </I></B>to which it is a party to be performed, satisfied or complied with by the Purchaser prior to or on the
Second Closing or any Additional Closing(s), as applicable. The Purchaser shall have delivered to the Company a certificate, dated
the Second Closing and any Additional Closing, as applicable, and signed by its duly authorized officer certifying to the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Second
Closing Payment</U>. The Purchaser shall have delivered to the Company the Tranche B Amount in accordance with Section 2(b) at
the Second Closing by wire transfer of immediately available funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional
Tranche Amounts</U>. For any Additional Closings, the Purchaser shall have delivered to the Company the Additional Tranche Amount
as such Closing by wire transfer of immediately available funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 7.&nbsp;<U>Termination;
No-Shop</U>.</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>.
In the event that the Initial Closing shall not have occurred on or before August 31, 2012 due to the Company&rsquo;s or the Purchaser&rsquo;s
failure to satisfy the conditions set forth in Sections 5(a) and 6(a) above (and the nonbreaching party&rsquo;s failure to waive
such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement at the close of business
on such date without liability of the terminating party to any other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect
of Termination</U>. In the event of the termination of this Agreement in accordance with Section 7(a) hereof, this Agreement shall
thereafter become void and have no effect, without any liability or obligation on the part of any party hereto under this Agreement,
except for the provisions of this Section 7(b) and Section 10 hereof, which provisions shall survive such termination, and except
to the extent that such termination results from the fraud or intentional misrepresentation by any party hereto or the material
breach by any party hereto of any of its representations, warranties, covenants or agreements set forth in this Agreement, in
which case, the terminating party shall continue to have all rights hereunder, at law or in equity, with respect to any such fraud,
misrepresentation or breach. Upon any termination of this Agreement prior to the Initial Closing pursuant to Section 7(a) hereof,
all instruments, agreements and documents existing and in place prior to the Initial Closing shall continue in full force and
effect.<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Public
Announcements</U>. Except as mutually agreed, neither the Company nor the Purchaser shall, nor shall the Company or the Purchaser
permit any of its officers, directors, managers, members, limited partners, shareholders, employees or agents to, make any public
announcement, other than disclosures required by applicable U.S. laws or announcements approved by the other party and made to
employees, officers, directors, managers, members, limited partners, shareholders, Affiliates or other personnel, in respect of
this Agreement, the Ancillary Documents or the transactions contemplated hereby or thereby, without the prior written consent
of the other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 8.&nbsp;<U>Covenants
of the Company</U>.</B> The Company covenants and agrees that at all times from the date hereof until the expiration of the Restriction
Period, except as otherwise waived and agreed to by the Purchaser in writing in its sole discretion, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conduct
of Business</U>. Except as expressly permitted or required by this Agreement, the Company will (i) carry on its business in the
ordinary course and use all reasonable efforts to preserve intact its present business organization, maintain its properties in
good operating condition and repair, keep available the services of its present officers and significant employees, and preserve
its relationship with customers, suppliers and others having business dealings with it, to the end that its goodwill and going
business as it exists on the date hereof shall be in all material respects unimpaired on and after the Initial Closing, (ii) notify
the Purchaser of any governmental or third party complaint, investigation or hearing received by the Company, or of which the
Company becomes aware, with respect to the Company, or any of its officers, employees, agents or other representatives (or written
communication indicating that such a complaint, investigation or hearing is or may be contemplated), and (iii) notify the Purchaser
if any representation by the Company set forth in this Agreement or any Purchaser Transaction Document was untrue in any material
respect when made or subsequently has become untrue in any material respect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Access</U>.
The Company shall provide the Purchaser with reasonable inspection and audit rights with respect to the assets and business records
of the Company. Specifically, upon three (3) Business Days prior written notice and during normal business hours, the Purchaser
may visit and inspect any of the properties of the Company, to inspect, audit and make copies of or prepare extracts from the
Company&rsquo;s minute books, books of account and other records of the Company, and to discuss the business affairs, finances
and accounts of the Company with, and be advised as to the same by, the officers, employees and independent accountants of the
Company; <U>provided</U> <U>that</U> prior to the occurrence and continuance of an Event of Default, the Purchaser shall not conduct
any such inspection or audit more than once during any calendar quarter and shall perform such activities in a manner so as not
to unreasonably disrupt the Company&rsquo;s businesses. Notwithstanding the foregoing, the Company will (i) provide the Purchaser
a copy of its daily production report and (ii) cause an executive officer thereof to be reasonably available, during normal business
hours, by telephone or email, to the Purchaser to respond to reasonable inquiries regarding the Company&rsquo;s business and assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Actions</U>. The Company shall (i) use all commercially reasonable efforts to take all actions and to do all things necessary,
proper or advisable to consummate the transactions contemplated hereby on each of the Initial Closing, the Second Closing and
any Additional Closings; (ii) as promptly as practicable, file or supply, or cause to be filed or supplied, all applications,
notifications and information required to be filed or supplied by the Company pursuant to applicable law in connection with this
Agreement, the Purchaser Transaction Documents, the issuance and sale of the Notes and Warrant and the consummation of the other
transactions contemplated hereby and thereby, and use its commercially reasonable efforts to obtain, or cause to be obtained,
all consents (including all consents, approvals, authorizations, waivers, permits, grants, franchises, concessions agreements,
licenses, exemptions or orders of registration, certificates, declarations or filings with, or reports or notices with or to any
Governmental Authority and any consent required under any contract) necessary to be obtained in order to consummate the transactions
contemplated by this Agreement and the Purchaser Transaction Documents, including the issuance and sale of the Notes and Warrant;
and (iii) promptly notify the Purchaser in writing of any fact, condition, event or occurrence that will or may result in the
failure of any of the conditions in any material respect contained in (A) Section 5(a) prior to the Initial Closing, or (B) Section
5(b) at any time after the Initial Closing but prior to the Second Closing or any Additional Closings, to be satisfied, promptly
upon becoming aware of the same.<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maintenance
of Existence, etc.</U> The Company shall at all times do or cause to be done each of the Company&rsquo;s respective officers and
employees to do, all things necessary to maintain, preserve and renew their existence and all licenses, permits, franchises and
other governmental authorizations necessary to own and operate their properties and carry on their business, except for those
which if not obtained, maintained, preserved or renewed, as applicable, would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect, and comply with, all laws, rules, regulations and orders applicable to the Company,
except where the failure to do so would not reasonably be expected to have a Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Books
and Records</U>. The Company will at all times keep proper books of record and account (on a consolidated basis) in which full,
true and correct entries will be made of its transactions in accordance with GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment
of Taxes</U>. The Company will at all times duly pay and discharge, as the same become due and payable, all taxes, assessments
and governmental and other charges, levies or claims levied or imposed; <U>provided</U>, <U>however</U>, that nothing contained
in this paragraph shall require the Company to pay or discharge, or cause to be paid and discharged, any such tax, assessment,
charge, levy or claim so long as the Company, in good faith shall either (i) contest the validity thereof and shall set aside
on its books adequate reserves with respect thereto or (ii) have a valid claim for reimbursement thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Statements, Reports, Etc</U>. In addition to the information and reporting identified in Sections 2(d) or (h) above, the Company
shall furnish to the Purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;within
one hundred twenty (120) days after the end of each fiscal year of the Company a consolidated balance sheet of the Company, as
of the end of such fiscal year and the related consolidated statements of income, stockholders&rsquo; equity and cash flows for
the fiscal year then ended, prepared in accordance with GAAP and certified by a firm of independent public accountants selected
by the Company&rsquo;s board of directors;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;within
fifty one (51) days after the end of each fiscal quarter a consolidated balance sheet of the Company, and the related consolidated
statement of income, unaudited but certified by the Chief Executive Officer or Chief Financial Officer of the Company, such balance
sheet to be as of the end of such fiscal quarter and such consolidated statement of income to be for such fiscal quarter and for
the period from the beginning of the fiscal year to the end of such fiscal quarter;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at
the time of delivery of each quarterly statement pursuant to subsection (ii) above, a management narrative report briefly describing
all those current developments in staffing, marketing, sales and operations that the principal executive officer of the Company
has determined to be significant, including cash flow reports showing compliance with Company&rsquo;s Budget, a sales and collections
report and accounts receivable aging schedule and payables aging schedule. These reports should show volume of production including
monthly historical data for the previous twelve (12) months, sales attributable to production, sales prices by commodity, ad valorem
taxes, severance taxes, production taxes, and lease operating expenses;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
later than thirty (30) days prior to the start of<B><I> </I></B>each fiscal year, consolidated capital and operating expense budgets,
cash flow projections and income and loss projections for the Company in respect of such fiscal year, all itemized in reasonable
detail, and promptly after the preparation thereof, any material revisions to any of the foregoing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;promptly
following receipt by the Company, each audit response letter, accountant&rsquo;s management letter and other written report submitted
to the Company by its independent public accountants in connection with an annual or interim audit or review of the books of the
Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;promptly
after the commencement thereof, notice of any action, suit, claim, proceeding, investigation or governmental or regulatory inquiry
that is reasonably likely to materially adversely affect the Company, except to the extent prohibited by law from providing such
notice; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;notice
of any event that the principal executive officer of the Company determines would be reasonably likely to have a Material Adverse
Effect within five (5) Business Days after the Company&rsquo;s principal executive officer makes such determination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company will provide or cause to be provided for itself, insurance against loss or damage of the kinds customarily insured against
by Persons similarly situated, with reputable insurers, in such amounts, with such deductibles and by such methods as shall be
customary for Persons similarly situated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall not cause or permit any assignment of, or change in beneficiary of, and shall not borrow against, any insurance
policy of the Company described in Section 8(h)(i); and if requested by Purchaser, the Company will add the Purchaser as a notice
party for each such policy and shall request that the issuer of each policy provide the Purchaser with ten (10) days&rsquo; notice
before such policy is terminated (for failure to pay premiums or otherwise) or assigned or before any change is made in the beneficiary
thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise agreed to by the Purchaser, the Purchaser shall be entitled to, and the Company shall, promptly following an Insurance
Recovery Determination Date (as defined below), use all proceeds of any insurance recovery in excess of $50,000 for loss or damage
to Real Property of the Company that has PDP included in the Proved Reserves that are included in the Company&rsquo;s most recent
PV10 Value to prepay the Notes in accordance herewith, unless at the time of payment by the applicable carrier of any such insurance
proceeds (an &ldquo;<U>Insurance Recovery Determination Date</U>&rdquo;), the Company meets the Required PV10 Coverage Ratio,
as determined by the Company based upon the Company&rsquo;s Reserve Report, most recently used in connection with determining
the PV10 Coverage Ratio for purposes of Section 2(d)(i), after giving effect to the insured Real Property loss or damage and the
addition of such insurance proceeds to the present value of the PDP component of the Proved Reserves used in determining the PV10
Value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Company
Debt</U>. The Company shall at all times perform its obligations under and comply with the covenants (including all affirmative,
negative, financial and reporting covenants) contained in this Agreement, the Notes, and any other Indebtedness incurred by the
Company as permitted by this Agreement. The Company shall provide Purchaser with copies of all covenant compliance financial calculations,
correspondence, reports and other information (if not otherwise required to be furnished hereunder to the Purchaser) provided
by the Company to any lender of such Indebtedness promptly following the delivery of such information to such lender, except for
communications of a routine or administrative nature prepared in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice
of Default</U>. The Company will notify the Purchaser in writing of the occurrence of any Event of Default. The notice required
to be given pursuant to this section shall be signed by an officer of the Company and shall set forth a description of the Event
of Default or other event and the remedial steps, if any, being taken with respect thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indebtedness</U>.
Other than the Notes, the Company may not incur additional Indebtedness (other than Permitted Indebtedness) without the approval
of the Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Mortgages</U>.
Promptly after (or, in the case of any acquisition of real estate or real property leasehold interests having a total value of
$50,000 or more, concurrently with) the acquisition by the Company, at any time during the Restriction Period, of any real estate
or Real Property leasehold interests, the Company shall deliver or cause to be delivered to the Purchaser, with respect to such
real estate, (i) a mortgage or deed of trust, as applicable, in form and substance satisfactory to the Purchaser, executed by
the title holder thereof, (ii)&nbsp;an ALTA lender&rsquo;s title insurance policy issued by a title insurer reasonably satisfactory
to the Purchaser<B> </B>in form and substance and in amounts reasonably satisfactory to the Purchaser ensuring the Purchaser&rsquo;s
first priority Lien on such real estate, free and clear of all defects, encumbrances and Liens except Permitted Liens; (iii) a
current ALTA survey, certified to the Purchaser<B> </B>by a licensed surveyor, in form and substance satisfactory to the Purchaser,
(iv) a certificate, in form and substance acceptable to the Purchaser, to Purchaser<B> </B>from a national certification agency
acceptable to the Purchaser, certifying that such real estate is not located in a special flood hazard area, and (v) in the case
of real estate that consists of a leasehold estate, such estoppel letters, consents and waivers from the landlords and non-disturbance
agreements from any holders of mortgages or deeds of trust on such real estate as may be reasonably requested by the Purchaser,
all of which shall be in form and substance satisfactory to the Purchaser. <FONT STYLE="color: black">Notwithstanding any interpretation
or construction of this Section 8(l) to the contrary, clauses (ii), (iii), (iv) and (v) hereof shall not apply to the acquisition
of any oil and gas leases or other oil and gas rights and interests associated with the exploration and production of oil, gas
and other minerals under oil, gas and mineral leases or similar agreements granting such rights and interests. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Liens</U>.
The Company shall not grant or suffer to exist (voluntarily or involuntarily) any Lien, claim, security interest or other encumbrance
whatsoever on any of its assets, other than Permitted Liens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Dividends
and Distributions</U>. The Company shall not declare, set aside or pay any dividends on or make any other distributions (whether
in cash, shares or other Equity Securities, or Property) in respect of any shares or split, combine or reclassify any shares or
other equity interests or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution
for, any shares or other equity interests. Other than the Stock Outstanding and stock issued to settle Account Payables as of
June 13, 2012 not exceeding _____ shares, the Company may not issue additional Common Stock, Equity Securities, or any other stock
settlement and warrant agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Corporate
Existence; Sale of Collateral</U>. The Company shall maintain its existence, and the Company shall not sell any portion of the
Company&rsquo;s assets without the written consent of the Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Equipment</U>.
The Company shall not (i) permit any Equipment (as defined in the First Lien Security Agreement) to become a fixture to Real Property
unless such Real Property is owned or leased by such Person and is subject to a mortgage in favor of the Purchaser, and if such
Real Property is leased, is subject to a landlord&rsquo;s agreement in favor of the Purchaser on terms acceptable to the Purchaser,
or (ii) permit any Equipment to become an accession to any other personal property unless such personal property is subject to
a first priority perfected Lien in favor of the Purchaser and any other holders of the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Settling
of Accounts</U>. The Company shall not sell, discount, settle or adjust any material Account (as defined in the First Lien Security
Agreement); <U>provided</U> that after the date hereof, so long as no Event of Default shall have occurred and be continuing,
the Company may (i) discount or settle past due Accounts on an arm&rsquo;s length basis in the ordinary course of business, and
(ii) provide early payment discounts in respect of Accounts in the ordinary course of business, consistent with past practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subsidiaries</U>.
If the Company acquires, or forms or otherwise becomes the direct or indirect owner of the equity of, any Subsidiary in compliance
with the terms and conditions of the First Lien Security Agreement and the other Ancillary Documents, the covenants of the Company
contained in this Section 8, except for the covenants contained in Section 8(g) hereof, shall apply to and bind such Subsidiary,
and the Company shall cause any such Subsidiary to comply with such covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>G&amp;A</U>.
Notwithstanding anything to the contrary contained in this Agreement, G&amp;A shall not exceed $150,000 per calendar quarter (pro
rated for any partial calendar quarter during which any Note is outstanding), but such amount may be increased with the consent
of Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Businesses</U><I>. </I>The Company shall not amend its articles of incorporation or bylaws, or enter into the ownership, management
or operation of any business other than the Company&rsquo;s business as of the date of this Agreement and operations and activities
related thereto or in furtherance thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;<U>Derivatives</U><I>.</I>
The Company shall not adopt, authorize or enter Oil and Gas Hedging Contracts, derivatives, swaps, fixed price agreements, forward
sales, volumetric production payments and/or similar instruments or transactions, or any interest rate swap or other derivative
contract that does not constitute an Oil and Gas Hedging Contract.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuance
of Equity Securities</U>. The Company shall not issue any Equity Securities, except for Common Stock required to be issued upon
exercise of the Warrant, or any Common Stock required to be issued under <U>Schedule 3(a)(iii)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Management</U>.
The Company shall not authorize or modify any Company equity, option or employee ownership plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#9;<U>Board</U>.<U> </U>The Company shall use commercially reasonable best efforts and shall take all actions as are commercially
reasonably necessary to cause the Company to be managed at all times by or under the direction of the Board of Directors, which
shall consist of three (3) Persons (each, a &ldquo;<U>Director</U>,&rdquo; and together, the &ldquo;<U>Board</U>&rdquo;), (i)
two (2) of whom shall be designated by the Purchaser, and (ii) one (1) of whom shall be designated by the Company. The cash compensation
for any Director shall not exceed $2,000 per month (collectively, &ldquo;<U>Director Fees</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;(y) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;<U>Joint Ventures</U>. The
Company will not invest directly or indirectly in any joint venture, partnership, &ldquo;farm out&rdquo;, &ldquo;farm in&rdquo;,
volumetric production payment, forward sale, or other similar agreements for any purpose.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Public Accountants</U>. The Company shall not remove nor replace the Company&rsquo;s independent public accountants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(aa)&nbsp;&nbsp; &#9;&nbsp;&nbsp;&nbsp;<U>New Accounts</U>. The
Company will not apply for, attempt to open, open, or establish any additional deposit, securities or other type of accounts with
any bank or other Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Employees;
Consultants</U>. The Company will not pay total cash compensation to Robert McIntosh and Eric Daniel Halloday in excess of $15,000
and $5,000 per month, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;(cc) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;<U>Employee Loans</U>. The
Company shall not advance or loan any monies to any employee or consultant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;(dd) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Expense Reimbursement</U>.
The Company shall not pay any expense reimbursement without the written consent of the Board and the Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
of Common Stock Issued Following Exercise of Warrant</U>. The Company shall take all such action as is commercially reaosonable
to register the Common Stock to be issued following the exercise of the Warrant, such that the Common Stock is freely tradable
upon such issuance.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;(ff) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;<U>Miscellaneous</U>. The
Company hereby agrees to take all actions to effectuate and carry out the provisions of this Agreement.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Events
of Default</U>. </B>An &ldquo;<U>Event of Default</U>&rdquo; means:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
default in the payment of principal of, or interest on, the Notes, as and when due and payable, including a mandatory prepayment
required by Section 2(d) above, or any default in the payment of any other amount payable pursuant to this Agreement; which default
remains uncured for five (5) days from the date such amount was due; <U>provided</U>, that the Company shall be permitted to withhold
from any payment under the Notes, or any other amounts payable pursuant to this Agreement, any and all amounts for tax purposes
required to be withheld from such payments by law;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
default in the due observance or performance of any other covenant, condition or agreement on the part of the Company to be observed
or performed pursuant hereto, or pursuant to any Ancillary Document or First Lien Security Document, which default remains uncured
for ten (10) days after the Company&rsquo;s receipt of written notice regarding the occurrence of such default, provided the cure
period shall be extended for an additional ten (10) days if the Company is diligently pursuing a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
material representation or warranty made herein or in any Purchaser Transaction Documents shall prove to be false or misleading
in any material respect as of the date made (or deemed made);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
any default in the due observance or performance of any covenant, condition or agreement on the part of the Company to be observed
or performed or any other Indebtedness in excess of $100,000, individually or in the aggregate, if the ultimate effect of such
default causes or permits holders of such other Indebtedness to accelerate the maturity of such Indebtedness or to permit all
or a portion of the holders thereof to cause such Indebtedness to become due prior to its stated maturity or (ii) any such other
Indebtedness or installment due thereunder shall not be paid within five (5) days&rsquo; from its due date, or (iii) the existence
of any mechanics&rsquo; liens in excess of $100,000 individually or in the aggregate which are delinquent by more than five (5)
Business Days and which are not being contested in good faith and by appropriate proceedings diligently prosecuted;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="color: black">any
material provision hereof or of any Purchaser Transaction Document or First Lien Security Document shall for any reason cease
to be valid and binding on or enforceable against the Company, as applicable, or the Company shall so state in writing or bring
an action to limit its obligations or liabilities thereunder; or any First Lien Security Document shall for any reason (other
than pursuant to the terms hereof or thereof) cease to create a valid security interest in any material portion of the Collateral
purported to be covered thereby or such security interest shall for any reason (other than the failure of the Purchaser to take
any action within its control) cease to be a perfected security interest subject only to Permitted Liens;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee,
liquidator or similar official of the Company or any of its properties or assets, (ii) admit in writing that it is generally unable
to pay its debts as the same become due, (iii) make a general assignment for the benefit of creditors or (iii) commence a voluntary
case under the federal bankruptcy laws, as now in effect or hereafter amended, or take advantage of any other bankruptcy, reorganization,
insolvency, readjustment or debt, dissolution or liquidation law or statute, or file an answer admitting the material allegations
of a petition filed against it in any proceeding under any such law, or corporate action shall be taken by the Company in furtherance
of any of the foregoing;<B><I> </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
decree or order for relief shall be entered, without the application, approval or consent of the debtor by any court of competent
jurisdiction, approving a petition seeking reorganization, dissolution or liquidation of the Company or of all or a substantial
part of the properties or assets of the Company, or appointing a receiver, custodian, trustee, liquidator or similar official
of the Company or any substantial part of any of its properties, or ordering the winding-up or liquidation of its affairs, and,
if such proceeding is being contested by the Company in good faith, such decree or order shall continue undismissed, or unstayed
and in effect, for any period of sixty (60) days;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
final non-appealable judgment for the payment of money in excess of $100,000 in the aggregate shall be rendered against the Company
and the same shall not be released, bonded, vacated, discharged or stayed pending appeal for a period of sixty (60) days;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
sale or encumbrance in violation of this Agreement or any of the First Lien Security Documents of any portion of the Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">If any Event of Default
occurs, then, and in any such event and for so long as such Event of Default shall be continuing, the Purchaser may by written
notice to the Company declare the Notes to be forthwith due and payable, whereupon the Notes shall become forthwith due and payable,
both as to principal and interest, without presentment, demand, protest, or other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the Notes to the contrary notwithstanding; <U>provided</U>, <U>however</U>,
that upon the happening of any event described in the foregoing clauses (f) or (g), the Notes shall automatically become due and
payable at 110% of par, without any action required to be taken by the Purchaser. <B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION
10.&nbsp;<U>Remedies</U>.</B> After the occurrence and during the continuance
of any Event of Default, the Purchaser may, without limitation to any other rights or remedies which may be available to the
Purchaser, (a) enforce (judicially, through self help, or otherwise) any remedy or other right herein, in the Notes or in any
Ancillary Document, or exercise any of the rights or remedies provided by applicable law, and (b) set-off any funds of the
Company in the possession of the Purchaser against any amounts then due by the Company pursuant to this Agreement, the Notes,
the Control Agreement or any <FONT STYLE="color: black">First Lien </FONT>Security Document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 11.&nbsp;<U>Survival;
Indemnification</U>. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival</U>.
The warranties and representations of the parties hereto shall survive the Initial Closing, the Second Closing and any Additional
Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
by Company</U>. The Company covenants and agrees to defend, indemnify and hold harmless the Purchaser and its Affiliates, and
their respective members, managers, officers, directors, employees, agents, partners (general and limited), affiliates and other
representatives (collectively, the &ldquo;<U>Purchaser Indemnitees</U>&rdquo;), from and against, and pay or reimburse the Purchaser
Indemnitees for, any and all claims, liabilities, obligations, losses, fines, costs, royalties, proceedings, deficiencies or damages
(whether absolute or otherwise and whether or not resulting from third party claims), including out-of-pocket expenses and reasonable
attorneys&rsquo; and accountants&rsquo; fees and expenses incurred in the investigation or defense of any of the same (collectively,
&ldquo;<U>Losses</U>&rdquo;), resulting from or arising out of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i) any
inaccuracy of any representation or warranty made by the Company herein or in any of the other Purchaser Transaction Documents
or in connection herewith or therewith;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii) any
failure of the Company to perform any covenant or agreement hereunder or under any other Purchaser Transaction Documents or fulfill
any other obligation in respect hereof or of any other Purchaser Transaction Documents; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii) any
pending or threatened investigation, litigation or proceeding, or any action taken by any Person, related to the Company and Property
or any other assets of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
by Purchaser</U>. The Purchaser covenants and agrees to defend, indemnify and hold harmless the Company, its officers, directors,
employees, agents, affiliates and other representatives (collectively, the &ldquo;<U>Company Indemnitees</U>&rdquo;), from and
against, and pay or reimburse the Company Indemnitees for, any and all Losses, resulting from or arising out of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i) any
inaccuracy of any representation or warranty made by the Purchaser herein or in any of the other Purchaser Transaction Documents
or in connection herewith or therewith; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii) any
failure of the Purchaser to perform any covenant or agreement hereunder or under any other Purchaser Transaction Documents or
fulfill any other obligation in respect hereof or of any other Purchaser Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>SECTION 12.&nbsp;<U>Miscellaneous
Provisions</U>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement: Amendments</U>. This Agreement (and the Schedules and Exhibits hereto, including the Purchaser Transaction Documents)
are intended by the parties as the final expression of their agreement and intended to be a complete and exclusive statement of
the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein or in the other Purchaser Transaction Documents
with respect to the Notes or Warrant. This Agreement and the other Purchaser Transaction Documents supersede all prior agreements
and understandings between the parties with respect to such subject matter hereof and thereof. No term, covenant, agreement or
condition of this Agreement or any of the other Purchaser Transaction Documents may be amended, or compliance therewith waived
(either generally or in a particular instance and either retroactively or prospectively), except (i) at the election of the Purchaser
to cure any ambiguity, formal defect or omission or correct or supplement any provision contained herein that may be inconsistent
with any other provision contained herein; and (ii) as agreed to in writing by the Purchaser and the Company. As an inducement
for Purchaser to enter into this Agreement and the other Purchaser Transaction Documents, the Company agrees to fully cooperate
with Purchaser in executing any documents or agreements that Purchaser, in its reasonable discretion, deems necessary to correct
any clerical or other errors or omissions which may exist in any of the Purchaser Transaction Documents in order to correct any
such clerical error or other error or omission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
All notices required or permitted hereunder shall be in writing and shall be deemed sufficiently given if (i) hand delivered (in
which case the notice shall be effective upon delivery); (ii) delivered by Express Mail, Federal Express or other nationally recognized
overnight courier service (in which case the notice shall be effective one Business Day following receipt), or (iii) delivered
by facsimile transmission (in which case the notice shall be effective upon receipt (<U>provided</U> confirmation of transmission
is mechanically or electronically generated and kept on file by the sending party)), to the parties at the following addresses
and/or facsimile numbers, or to such other address or number as a party shall specify by written notice to the others in accordance
with this Section 12.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 67%; text-autospace: none; text-align: justify">If to the Company:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">American Petro-Hunter Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">17470 North Pacesetter Way</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Scottsdale, AZ 85255</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">with a copy to:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Greenberg Traurig LLP</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">1201 K Street, Suite 1100</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Sacramento, CA 95814</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Attn: Mark C. Lee, Esq.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">If to the Purchaser:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">ASYM Energy Opportunities LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">1055 Washington Blvd, Suite 410</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Stamford, CT&nbsp; 06901</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Facsimile: (203) 742-1660</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">with a copy to:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Levett Rockwood P.C.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">33 Riverside Avenue</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Westport, CT&nbsp; 06680</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-left: 0.5in; text-autospace: none; text-align: justify">Attn:&nbsp; Cheryl L. Johnson, Esq.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sections
and Counterparts</U>. The section headings contained in this Agreement are for reference purposes only and shall not affect the
interpretation of this Agreement. This Agreement and any amendments hereto may be executed and delivered in two or more counterparts,
and by the different parties hereto in separate counterparts, each of which when executed shall be deemed an original, but all
of which together shall constitute the same agreement, and shall become effective when counterparts have been signed by each party
hereto and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart. In
the event that any signature to this Agreement or any amendment hereto is delivered by facsimile transmission or by e-mail delivery
of a &ldquo;.pdf&rdquo; format data file, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile or &ldquo;.pdf&rdquo; signature
page were an original thereof. No party hereto shall raise the use of a facsimile machine or e-mail delivery of a &ldquo;.pdf&rdquo;
format data file to deliver a signature to this Agreement or any amendment hereto or the fact that such signature was transmitted
or communicated through the use of a facsimile machine or e-mail delivery of a &ldquo;.pdf&rdquo; format data file as a defense
to the formation or enforceability of a contract, and each party hereto forever waives any such defense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law; Jurisdiction; Waiver of Jury Trial</U>. This Agreement shall be governed by the internal laws of the State of New York without
regard to the principles thereof regarding conflicts of law. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the New York City, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof by registered or certified mail, return receipt requested, or
by deposit with a nationally recognized overnight delivery service, to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH OF THE PARTIES
KNOWINGLY, INTENTIONALLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
A JURY TRIAL IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT, OBLIGATION, DEFENSE OR REMEDY ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE NOTES.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U>. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
heirs, successors, assigns, executors, administrators and personal representatives; provided that the Company may not assign this
Agreement without the prior written consent of the Purchaser. The Purchaser may assign some or all of its rights under this Agreement
without the consent of the Company; provided, however, that any such assignment shall not release the Purchaser from its obligations
hereunder unless such obligations are assumed by such assignee (as evidenced in writing).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies</U>.
No remedy conferred by any of the specific provisions of this Agreement is intended to be exclusive of any other remedy, and each
and every remedy shall be cumulative of and shall be in addition to every other remedy given hereunder or now or hereafter existing
at law or in equity or by statute or otherwise. The election of any one or more remedies by the Purchaser or the Company shall
not constitute a waiver of the right to pursue other available remedies. Each of the Company and the Purchaser acknowledges and
agrees that any breach of this Agreement by the other party will result in irreparable and continuing damage to the non-breaching
parties for which there will be no adequate remedy at law. The parties hereto further acknowledge and agree, accordingly, that
the Company, on the one hand, and the Purchaser, on the other hand, shall be entitled to injunctive relief, specific performance
and other equitable relief for such breach, or any threatened breach, and that resort by the non-breaching parties to any such
equitable relief shall not be deemed to waive or to limit in any respect any right or remedy which the non-breaching party may
have with respect to such breach or threatened breach.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Recourse to General Partner or Manager of the Purchaser.</U> The Company agrees that, with respect to any breach or claimed breach
of this Agreement or any other Purchaser Transaction Document by the Purchaser, the Company shall have recourse only to the assets
of the Purchaser, and that neither the general partner, nor manager, or any Affiliate thereof, of the Purchaser shall have any
liability with respect thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Expenses</U>.
The Company will, promptly on demand, pay the Purchaser&rsquo;s reasonable, actual and documented expenses, including reasonable
fees and disbursements of counsel and other professionals, incident to (i) any material waiver, amendment, or modification of
the terms of this Agreement or the other Purchaser Transaction Documents, or of the Notes or any refinancing thereof, or any subordination
agreement related to any Indebtedness of the Company, each as agreed upon by the Company, and (ii) the collection of any sums
due, or enforcement of any of the provisions, under this Agreement or the other Purchaser Transaction Documents, including all
efforts made to enforce payment of any of the obligations hereunder or under the Notes, and/or any institution, maintenance, preservation,
enforcement, foreclosure, release, termination, amendment or modification of any mortgage, Lien or other security interest of
Purchaser in any of the Collateral, whether through judicial proceedings or otherwise. This covenant shall survive the satisfaction
in full of the Company&rsquo;s obligations under the Notes and the termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Assurances</U>. Each party hereto shall from time to time do and perform, or cause to be done and performed, all such further
acts and things, and shall execute and deliver such additional instruments, documents, conveyances or assurances, and shall take
such other actions as shall be necessary, or otherwise reasonably requested by the other party, to confirm and assure the rights
and obligations provided for in, and otherwise carry out the intent and accomplish the purposes of, this Agreement and the other
Purchaser Transaction Documents and render effective the consummation of the transactions contemplated hereby and thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretive
Matters</U>. Unless the context otherwise requires, (i) all references to Sections, Schedules, Appendices or Exhibits are to Sections,
Schedules, Appendices or Exhibits contained in or attached to this Agreement, (ii) each accounting term not otherwise defined
in this Agreement has the meaning assigned to it in accordance with U.S. generally accepted accounting principles, (iii) words
in the singular or plural include the singular and plural and pronouns stated in either the masculine, the feminine or neuter
gender shall include the masculine, feminine and neuter, (iv) the words &ldquo;hereof,&rdquo; &ldquo;herein&rdquo; and words of
similar effect shall reference this Agreement in its entirety, and (v) the use of the word &ldquo;including&rdquo; in this Agreement
shall be by way of example rather than limitation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Brokers
and Finders</U>. Purchaser may incur obligations or commitments on behalf of the Company to any Person which would be reasonably
likely to give rise to a claim for any finder&rsquo;s, broker&rsquo;s or other similar commission or compensation in respect of
the transactions contemplated by this Agreement or the Ancillary Documents (&ldquo;<U>Finder Fees</U>&rdquo;), provided such Finder
Fees are not in violation of any laws or governmental rules or regulations and do not exceed five percent (5%) of the cash proceeds
received by the Company from the Company&rsquo;s issuance of Tranche B Note and any Additional Notes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signature on following page]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the day and year first
above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold">American Petro-Hunter Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 5%; text-autospace: none">By:</TD>
    <TD STYLE="width: 45%; text-autospace: none; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Name:</TD>
    <TD STYLE="text-autospace: none">Rob McIntosh</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Title:</TD>
    <TD STYLE="text-autospace: none">CEO</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold">ASYM Energy Opportunities LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">By:</TD>
    <TD STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">Name:</TD>
    <TD STYLE="text-autospace: none; text-align: justify">Greg Imbruce</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Its:</TD>
    <TD STYLE="text-autospace: none">President</TD></TR>
</TABLE>
<P STYLE="font: 10pt Courier; margin: 0pt 0">&nbsp;</P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>v318014_ex10-5.htm
<DESCRIPTION>EXHIBIT 10.5
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">THE SECURITIES EVIDENCED BY THIS WARRANT
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &ldquo;SECURITIES ACT&rdquo;), AND MAY
NOT BE SOLD, TRANSFERRED, OR ASSIGNED, UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING SUCH
SECURITIES, OR THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION UNDER THE SECURITIES
ACT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Date: ____________ (the &ldquo;Date&rdquo;)</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tranche #: ______</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tranche Amount: $______________ (the
&ldquo;Tranche Amount&rdquo;)</B></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Void after July __, 2017)</B></P>

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

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuance
of Warrant</U>. <B>FOR VALUE RECEIVED</B>, on and after the date of issuance of this Warrant, and subject to the terms and conditions
herein set forth, the Holder (as defined below) is entitled to purchase from American Petro-Hunter, Inc., a Nevada corporation
(the &ldquo;<B>Company</B>&rdquo;), at any time during the Exercise Period (as defined below), at a price per share equal to the
Warrant Price (as defined below and subject to adjustment as described below), the Warrant Stock (as defined below and subject
to adjustment as described below) upon exercise of this warrant (this &ldquo;<B>Warrant</B>&rdquo;) pursuant to Section 5 hereof.
This Warrant is being issued pursuant to the terms of the Purchase Agreement, dated as of even date herewith by and between the
Company and ASYM Energy Opportunities LLC (the &ldquo;<B>Agreement</B>&rdquo;). Capitalized terms not otherwise defined herein
shall have the meanings given to them in the Agreement.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.
As used in this Warrant, the following terms have the definitions ascribed to them below:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&ldquo;<B>Commencement
Date</B>&rdquo; means the date of each issuance of borrowings received by the Company under the Purchase Agreement (each, a &ldquo;Tranche&rdquo;).
For clarification purposes, each Tranche will have a separate Commencement Date and be the Date written above.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<B>Common
Stock</B>&rdquo; means the Common Stock, $0.001 par value, of the Company.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;
&ldquo;<B>Exercise Period</B>&rdquo; means the period commencing on the Commencement Date and ending at 5:00 p.m. Pacific Standard
Time on the Termination Date (as defined below); <U>provided</U>, <U>however</U>, the Exercise Period shall end and this Warrant
shall no longer be exercisable and shall become null and void (except the right to receive the securities and property to which
the Holder is entitled by virtue of exercising or converting this Warrant in connection with any Termination Event) upon consummation
of any of the following (each, a &ldquo;<B>Termination Event</B>&rdquo;): (i) the lease of all or substantially all of the assets
of the Company or the exclusive license of all or substantially all of the Company&rsquo;s intellectual property to a third party,
(ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including
without limitation, any reorganization, merger or consolidation, but excluding any merger or conversion effected exclusively for
the purpose of changing the domicile of the Company), or (iii) the sale, conveyance or disposal of all or substantially all of
the assets of the Company, unless the Company&rsquo;s shareholders of record as constituted immediately prior to such acquisition
or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company&rsquo;s
acquisition or sale or otherwise) hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity. Notwithstanding
anything to the contrary herein, this Warrant shall continue in full force and effect until the Termination Date unless (y) no
less than thirty (30) days prior to any Termination Event, the Company shall have given the Holder notice of such Termination Event,
which notice shall include a reasonably detailed description of the terms of such Termination Event, and (z) the Company shall
have given the Holder a reasonable opportunity to exercise or convert this Warrant.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<B>Holder</B>&rdquo;
means ASYM Energy Opportunities LLC or its assigns.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<B>Termination
Date</B>&rdquo; means five (5) years from the Commencement Date.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<B>Warrant
Price</B>&rdquo; means a price per warrant share equal to the lesser of: (i) $0.20, (ii) 85% of the volume weighted average price
per share (&ldquo;VWAP&rdquo;) of the Company&rsquo;s common stock for the fifteen days preceding the issuance of any Tranche as
defined in the Purchase Agreement, or (iii) the trailing ninety (90) net average daily oil production multiplied by $40,000, the
product of which is reduced by the Company&rsquo;s total debt and any obligations or liabilities (collectively, <B>&ldquo;Net Asset
Value&rdquo;</B>), thereafter divided by the Company&rsquo;s fully diluted number of common shares outstanding. In no case, however,
shall the Net Asset Value be less than $500,000.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<B>Warrant
Stock</B>&rdquo; means the shares of Common Stock purchasable upon exercise of this Warrant. The total number of shares of Warrant
Stock to be issued upon the exercise of this Warrant shall be equal to eighty-three percent (83%) of the amount of any Tranche,
in this case, the Tranche Amount written above, divided by the Warrant Price; <U>provided</U>, <U>however</U>, such number shall
be subject to adjustment as described in Section 3 hereof.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustments
and Notices</U>. The Warrant Price and the number of shares of Warrant Stock shall be subject to adjustment from time to time in
accordance with this Section 3.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustments
to Warrant Stock</U>. When any adjustment is required to be made to the Warrant Price as described in Section 2(f) above, the number
of shares of Warrant Stock purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing
(i)&nbsp;an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment,
multiplied by the Warrant Price in effect immediately prior to such adjustment, by (ii)&nbsp;the Warrant Price in effect immediately
after such adjustment.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;<U>Reclassification,
Exchange, Substitution, In-Kind Distribution</U>. Upon any reclassifications, exchange, substitution or other event that results
in a change of the number and/or class of the securities issuable upon exercise of this Warrant or upon the payment of a dividend
in securities or property other than shares of Common Stock, the Holder shall be entitled to receive, upon exercise of this Warrant,
the number and kind of securities and property that Holder would have received if this Warrant had been exercised or converted
immediately before the record date for such reclassification, exchange, substitution, or other event or immediately prior to the
record date for such dividend. The Company or its successor shall promptly issue to Holder a new warrant for such new securities
or other property. The new warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Warrant. The provisions of this Section 3(b) shall similarly apply to successive reclassifications,
exchanges, substitutions, or other events and successive dividends.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;<U>Certificate
of Adjustment</U>. In each case of an adjustment or readjustment of the Warrant Price, the Company, at its own expense, shall compute
such adjustment or readjustment in accordance with the provisions hereof and prepare a certificate executed by the Company&rsquo;s
Chief Financial Officer showing such adjustment or readjustment, and shall mail such certificate, by first class mail, postage
prepaid, to the Holder.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;<U>No
Impairment</U>. The Company shall not, by amendment of its Articles of Incorporation or through a reorganization, transfer of assets,
consolidation, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith
assist in carrying out all of the provisions of this Section 3 and in taking all such action as may be necessary or appropriate
to protect the Holder&rsquo;s rights under this Section 3 against impairment.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;<U>Fractional
Shares</U>. No fractional shares shall be issuable upon exercise or conversion of the Warrant and the number of shares to be issued
shall be rounded to the nearest whole share. If a fractional share interest arises upon any exercise or conversion of the Warrant,
the Company shall eliminate such fractional share interest by paying the Holder an amount computed by multiplying the fractional
interest by the fair market value of a full share.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation
of Stock</U>. On and after the Commencement Date, the Company shall reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of Warrant Stock upon the exercise or conversion of this Warrant. Issuance of this
Warrant shall constitute full authority to the Company&rsquo;s officers who are charged with the duty of executing stock certificates
to execute and issue the necessary certificates for shares of Warrant Stock issuable upon the exercise or conversion of this Warrant.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise
of Warrant</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;This
Warrant may be exercised as a whole or part by the Holder, at any time after the date hereof prior to the termination of this Warrant,
by the surrender of this Warrant, together with the Notice of Exercise and Investment Representation Statement in the forms attached
hereto as <U>Attachments 1 and 2</U>, respectively, duly completed and delivered to the principal office of the Company, specifying
the portion of the Warrant to be exercised, and accompanied by payment in full of the Warrant Price in cash or by check with respect
to the shares of Warrant Stock being purchased, except in the case of a Net Exercise pursuant to Section 5(b). This Warrant shall
be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided
above, and the person entitled to receive the shares of Warrant Stock issuable upon such exercise shall be treated for all purposes
as the holder of such shares of record as of the close of business on such date. As promptly as practicable after such date, the
Company shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates for the number
of full shares of Warrant Stock issuable upon such exercise. If this Warrant shall be exercised for less than the total number
of shares of Warrant Stock then issuable upon exercise, promptly after surrender of this Warrant upon such exercise, the Company
will execute and deliver a new warrant, dated the date hereof, evidencing the right of the Holder to the balance of this Warrant
Stock purchasable hereunder upon the same terms and conditions set forth herein.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;The
Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise
contemplated to be made to the Company upon such exercise in payment of the Warrant Price as set forth in Section 5(a) above, elect
instead to receive upon such exercise the &ldquo;Net Number&rdquo; of shares of the Company&rsquo;s Common Stock determined according
to the following formula (a &ldquo;<B>Net Exercise</B>&rdquo;):</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">Net Number = <U>(A
x B) - (A x C)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 193.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 193.5pt">B</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">For purposes of the
foregoing formula:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">A= the total number of shares with
respect to which this Warrant is then being exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">B= the closing sale price of the
Common Stock of the Company on the last trading day immediately preceding the date of the Notice of Exercise on which at least
10,000 shares of the Company&rsquo;s Common Stock were traded, as reported on Nasdaq.com (as adjusted for stock splits, stock dividends
and the like).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-underline-style: none">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-underline-style: none">C=
the Warrant Price then in effect for the applicable Warrant Stock at the time of such exercise.</FONT></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;Notwithstanding
anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the Holder hereof to the extent (but
only to the extent) <FONT STYLE="color: black">necessary to ensure that, following such exercise, the total number of shares of
Common Stock then beneficially owned by Holder and its affiliates and any other persons whose beneficial ownership of Common Stock
would be aggregated with the Holder&rsquo;s for purposes of Section 13(d) of the Exchange Act, does not exceed 4.999% of the total
number of issued and outstanding shares of Company Common Stock</FONT>.<FONT STYLE="color: black"> For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations thereunder</FONT>.
<FONT STYLE="color: black">Notwithstanding the foregoing, Holder may waive such limitation on exercise contained in this Section
5(b) or increase or decrease such limitation percentage to any other percentage as specified in a written notice to the Company.</FONT></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer
of Warrant</U>. Notwithstanding anything to the contrary herein, subject to applicable securities laws, this Warrant may be transferred
or assigned in whole or in part by the Holder, and the Company shall permit such transfer or assignment to an affiliate of the
Holder.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Demand
Registration Rights</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Process</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the written request of Holder, the Company shall prepare and file a Registration Statement covering the resale of the Warrant Stock,
and use commercially reasonable best efforts to cause the Registration Statement declared effective; provided, however, that the
amount of Warrant Stock to be included in the Registration Statement shall be limited to not less than 100% of the maximum amount
of Warrant Stock which may be included in a single registration statement without exceeding registration limitations imposed by
the SEC pursuant to Rule 415, and provided, further, that the Company shall not be obligated to the Holder for any penalties or
damages, liquidated or otherwise, so long as the Company uses its commercially reasonable best efforts with respect to its obligations
under this Section 7.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company will pay all expenses associated with the registration, including, without limitation, filing and printing fees, and the
Company&rsquo;s counsel and accounting fees and expenses, costs, if any, associated with registering or qualifying the Warrant
Stock for sale under applicable state securities laws.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall have the right to delay the filing or effectiveness of the Registration Statement, or, as applicable, suspend sales
of Warrant Stock under an effective Registration Statement or suspend trading of its securities on any exchange, (i) in the event
such filing or effectiveness of the Registration Statement, or the non-suspension of trading, would in the Company&rsquo;s reasonable
judgment require the disclosure of material, non-public information concerning the Company that is not, in the reasonable opinion
of the Company, in the best interest of the Company, or (ii) during the occurrence of any event specified in Section 7(b)(iii)
below.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the provisions of Section 7(a)(iii) and 7(b)(iii), the Company will use commercially reasonable best efforts to cause the Registration
Statement to remain continuously effective for a period that will terminate upon the earlier of (x) the date on which all the Warrant
Stock covered by the Registration Statement have been sold or (y) the date on which all the Warrant Stock covered by the Registration
Statement may be sold immediately without registration pursuant to Rule 144 of the Securities Act (&ldquo;<B>Rule 144</B>&rdquo;).</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">v.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&rsquo;s obligation to register the Warrant Stock shall terminate upon the earlier of (A) the sale of such Warrant Stock
pursuant to a Registration Statement or Rule 144, or (B) such Warrant Stock has become eligible for sale by the Holder pursuant
to Rule 144.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">vi.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
provisions of this Section 7 will survive termination of the Warrant for so long as the Warrant Stock remains outstanding.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holder&rsquo;s
Obligations</U>. In connection with the registration of the Warrant Stock, the Holder shall have the following obligations:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Warrant with respect
to the Warrant Stock that Holder shall furnish to the Company such information regarding itself, the Warrant Stock held by it and
the intended method of disposition of the Warrant Stock held by it as shall be reasonably required to effect the registration of
such Warrant Stock and shall execute such documents in connection with such registration as the Company may reasonably request.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holder
agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the
Registration Statement hereunder.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holder
agrees to immediately discontinue disposition of Warrant Stock pursuant to any Registration Statement upon notice from the Company
of (A) the issuance of any stop order or other suspension of effectiveness of the Registration Statement by the SEC, or the suspension
of the qualification of any of the Warrant Stock for sale in any jurisdiction by the applicable regulatory authorities, (B) the
happening of any event, as promptly as practicable after becoming aware of such event, as a result of which the prospectus included
in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading, (C)&nbsp;the failure of the prospectus included in the Registration Statement, as then in effect, to
comply with the requirements of the Securities Act, until the Purchaser&rsquo;s receipt of a supplemented or amended prospectus
or receipt of notice that no supplement or amendment is required, or (D) the happening of any other event that in the Company&rsquo;s
reasonable judgment makes it necessary to file a supplement to the prospectus included in the Registration Statement or to file
and have declared effective a post-effective amendment to the Registration Statement (including, without limitation, filing a post-effective
amendment or supplement to incorporate the Company&rsquo;s annual or quarterly reports and audited financial statements on Form
10-K or Forms 10-Q).</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer
of Registration Rights</U>. The rights under this Warrant shall be automatically assignable by the Holder to any transferee of
all or any portion of Warrant Stock if: (i) the Holder agrees in writing with the transferee or assignee to assign such rights,
and a copy of such agreement is furnished to the Company within a reasonable time after such assignment, (ii) the Company is, within
a reasonable time after such transfer or assignment, furnished with written notice of the name and address of such transferee or
assignee, and the securities with respect to which such registration rights are being transferred or assigned, (iii) following
such transfer or assignment, the further disposition of such securities by the transferee or assignee is restricted under the Securities
Act of 1933, as amended (the &ldquo;<B>Securities Act</B>&rdquo;) and applicable state securities laws, (iv) at or before the time
the Company receives the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein, (v) such transfer shall have been made in accordance with
the applicable requirements of the Agreement, and (vi) such transferee shall be an &ldquo;accredited investor&rdquo; as that term
is defined in Rule 501 of Regulation D promulgated under the Securities Act. As used in this Section 7, the term &ldquo;Holder&rdquo;
includes any transferee or assignee who agrees to become bound by the provisions of this Warrant.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.
As used in this Warrant, the following terms shall have the following meanings:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<B>register</B>,&rdquo;
&ldquo;<B>registered</B>,&rdquo; and &ldquo;<B>registration</B>&rdquo; refer to a registration effected by preparing and filing
a Registration Statement in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor
rule providing for offering securities on a continuous basis (&ldquo;<B>Rule 415</B>&rdquo;), and the declaration or ordering of
effectiveness of such Registration Statement by the United States Securities and Exchange Commission (the &ldquo;<B>SEC</B>&rdquo;).</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<B>Registration
Statement</B>&rdquo; means a registration statement eligible to be filed by the Company under the Securities Act.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>.
This Warrant shall terminate at 5:00 p.m. Pacific Standard Time on the Termination Date, subject to earlier termination as set
forth in Section 2(c) hereof.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>.
This Warrant shall be governed by the laws of the State of Nevada, as such laws are applied to contracts to be entered into and
performed entirely in Nevada. In the event of any dispute among the Holder and the Company arising out of the terms of this Warrant,
the parties hereby consent to the exclusive jurisdiction of the federal and state courts located in the State of Nevada for resolution
of such dispute, and agree not to contest such exclusive jurisdiction or seek to transfer any action relating to such dispute to
any other jurisdiction. The headings in this Warrant are for purposes of convenience and reference only, and shall not be deemed
to constitute a part hereof. Neither this Warrant nor any term hereof may be changed or waived orally, but only by an instrument
in writing signed by the Company and the Holder of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-indent: 0in; font-weight: bold; text-align: justify">AMERICAN PETRO-HUNTER, INC.</TD>
    <TD STYLE="width: 50%; text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Authorized Signature</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-left: 0.5in; text-indent: 0in; text-align: justify">Robert McIntosh</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Name</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-left: 0.5in; text-indent: 0in; text-align: justify">Chief Executive Officer</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Title</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-indent: 0in; font-weight: bold; text-align: justify">ASYM ENERGY OPPORTUNITIES LLC</TD>
    <TD STYLE="width: 50%; text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-weight: bold; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Authorized Signature</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-left: 0.5in; text-indent: 0in; text-align: justify">Greg Imbruce</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Name</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-left: 0.5in; text-indent: 0in; text-align: justify">President</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in; text-align: justify">Title</TD>
    <TD STYLE="text-indent: 0in; text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>



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<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>7
<FILENAME>v318014_ex10-6.htm
<DESCRIPTION>EXHIBIT 10.6
<TEXT>
<HTML>
<HEAD>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS NOTE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THIS NOTE UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THIS NOTE. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE. THE OUTSTANDING PRINCIPAL AMOUNT REPRESENTED
BY THIS NOTE MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF.</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-autospace: none; font-size: 10pt; font-weight: bold">Issuance Date: &nbsp;&nbsp;______________________</TD>
    <TD STYLE="width: 50%; text-autospace: none; font-size: 10pt; font-weight: bold; text-align: right">$______</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">American Petro-Hunter
Inc., a Nevada corporation (the &ldquo;<I>Company</I>&rdquo;), for value received, hereby promises to pay to the order of ASYM
Energy Opportunities LLC or its permitted assigns (&ldquo;<I>Holder</I>&rdquo;) the principal sum of _______________________, plus
interest, payable at the rate and in the manner set forth herein. The unpaid principal amount of this Note shall bear interest
at the rate of fifteen percent (15%) per annum (the &ldquo;<I>Interest Rate</I>&rdquo;) computed from the date hereof until the
obligations under this Note are paid in full. Interest will be computed on the basis of a 360-day year and for the actual number
of days elapsed and shall compound monthly. Interest on the outstanding principal balance hereof will be due and payable in cash
monthly in arrears on the last Business Day of each calendar month, commencing ______________. In the event any interest is not
timely paid as set forth herein, such interest (including any unpaid default interest) will compound on a monthly basis in each
calendar month until such interest is paid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal amount
of this Senior Secured Promissory Note (this &ldquo;<I>Note</I>&rdquo;), and all accrued but unpaid interest (including any accrued
but unpaid default interest), shall be due and payable in full, in a balloon payment, on _____________ (the &ldquo;<I>Maturity
Date</I>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All payments under
this Note shall be made in lawful money of the United States of America (the &ldquo;<I>U.S.</I>&rdquo;) by wire transfer or check
of immediately available funds to such account as Holder may from time to time designate by written notice to the Company in accordance
with the provisions of this Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Note is issued
pursuant and subject to the terms and conditions of that certain Purchase Agreement (the &ldquo;<I>Purchase</I> <I>Agreement&rdquo;)</I>,
dated as of July 3, 2012, between Holder and the Company. This Note is (a) one of up to eleven Notes issued by the Company pursuant
to the Purchase Agreement, (b) senior in right of payment and in all other respects to the Third Amendment to Promissory Notes
between the Company and John E. Friesen and any other debt, liability, and obligations of the Company (c) subject to the terms
and conditions of any subordination agreement (&ldquo;Subordination Agreement&rdquo;), among Holder, as a Senior Lender (as defined
in the Subordination<FONT STYLE="color: red"> </FONT>Agreement) and collateral agent for all Senior Lenders, and the Company. Capitalized
terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Purchase Agreement. This
Note is secured pursuant to the First Lien Security Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Note may not
be prepaid in whole or in part at any time. Any repayment amounts permitted by the Purchase Agreement, however, shall be applied
on account of principal remaining unpaid and shall be accompanied by payment of all accrued and unpaid interest, if any, thereon.
All partial repayments of principal shall be credited to accrued interest and then to principal as set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An Event of Default
under the Purchase Agreement shall be an &ldquo;<I>Event of Default</I>&rdquo; under this Note. Whenever any Event of Default shall
have occurred and be continuing, Holder shall have all rights and remedies as set forth herein and in the Purchase Agreement and
the First Lien Security Agreement. No remedy conferred by any of the specific provisions of this Note is intended to be exclusive
of any other remedy, and each and every remedy shall be cumulative of and shall be in addition to every other remedy given hereunder
or now or hereafter existing at law or in equity or by statute or otherwise. The election of any one or more remedies by Holder
shall not constitute a waiver of the right to pursue other available remedies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the occurrence
and during the continuance of any Event of Default as set forth herein, interest shall accrue at a rate equal to the lesser of:
(i) the sum of the Interest Rate plus three percent (3.0%, i.e., 300 basis points) per annum or (ii) the maximum rate of interest
permissible under applicable law. All accrued but unpaid interest hereon will be paid at the time of and as a condition precedent
to the curing of any such Event of Default or as agreed upon by the Company and Holder. The foregoing notwithstanding, any interest
paid and actually collected by Holder hereunder which is found by a court of competent jurisdiction to be in excess of the highest
rate of interest allowed under applicable law shall be applied to the repayment of the then outstanding principal balance due hereunder
in such a manner as to prevent the payment and collection of interest in excess of the highest rate permitted by applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event this Note
is placed in the hands of an attorney for collection or for enforcement or protection of any collateral securing this Note, or
if Holder incurs any costs incident to the collection of the indebtedness evidenced hereby or the enforcement or protection of
any such collateral, the Company agrees to pay to Holder an amount equal to all such costs reasonably and actually incurred, including
without limitation all reasonable attorneys&rsquo; fees and all court costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Presentment for payment,
demand, protest and notice of demand, protest and nonpayment are hereby waived by the Company and all other parties hereto. No
failure to accelerate the indebtedness evidenced hereby by reason of an Event of Default hereunder or acceptance of a past-due
installment or other indulgences granted from time to time, will be construed as a novation of this Note or as a waiver of such
right of acceleration or of the right of Holder thereafter to insist upon strict compliance with the terms of this Note or to prevent
the exercise of such right of acceleration or any other right granted hereunder or by applicable laws. No term, covenant, agreement
or condition of this Note may be amended, or compliance therewith waived (either generally or in a particular instance and either
retroactively or prospectively), unless agreed to in writing by Holder and the Company and in compliance with the terms and conditions
of the Subordination Agreement, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as provided
in the Purchase Agreement and First Lien Security Agreement, the Company also waives all rights to notice and hearing of any kind
upon the occurrence of an Event of Default and prior to the exercise by Holder of its rights to repossess the Collateral (as such
term is defined in the First Lien Security Agreement) without judicial process or to replevy, attach or levy upon the Collateral
without notice or hearing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as otherwise
expressly provided elsewhere herein, all notices, requests, demands and other communications relating to this Note, shall be in
writing and shall be provided as set forth in the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Note shall be
binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither
Holder nor the Company may assign the Note without the prior written consent of the other party, except pursuant to the terms and
conditions of the Purchase Agreement and the Subordination Agreement, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Holder shall promptly
provide written notice to the Company of the name and address of the assignee or transferee and the principal amount of this Note
assigned or transferred, as applicable. The Company shall maintain, at one of its offices in the United States, a register for
the recordation of the names and addresses of each holder of the Notes, and the principal amount of the Notes owed to each such
holder pursuant to the terms hereof and of the other Notes from time to time (the &ldquo;<I>Register</I>&rdquo;). The entries in
the Register shall be conclusive absent manifest error, and the Company<B> </B>and the Holder shall treat each person whose name
is recorded in the Register pursuant to the terms hereof as the Holder for all purposes, notwithstanding notice to the contrary.
The Register shall be available for inspection by any holder of the Notes, at any reasonable time and from time to time upon reasonable
prior notice. The Notes are intended to be obligations in &ldquo;registered form&rdquo; for purposes of Sections 871 and 881 of
the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder, and the provision of this Note
shall be interpreted consistently therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding the
place of making of this Note, this Note will be construed and enforceable in accordance with the laws of the State of New York,
without regards to its principles of the conflicts of law or the choice of law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In case any provision
in this Note shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to and
without limitation of any of the foregoing, this Note shall be subject to all of general terms and conditions contained in the
Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that any
signature to this Note or any amendment hereto is delivered by facsimile transmission or by e-mail delivery of a &ldquo;.pdf&rdquo;
format data file, such signature shall create a valid and binding obligation of the Company (or the party on whose behalf such
signature is executed) with the same force and effect as if such facsimile or &ldquo;.pdf&rdquo; signature page were an original
thereof. Notwithstanding the foregoing, the Company shall be required to deliver an originally executed Note to Holder. The Company
shall not raise the use of a facsimile machine or e-mail delivery of a &ldquo;.pdf&rdquo; format data file to deliver a signature
to this Note or any amendment hereto or the fact that such signature was transmitted or communicated through the use of a facsimile
machine or e-mail delivery of a &ldquo;.pdf&rdquo; format data file as a defense to the formation or enforceability of a contract
and the Company forever waives any such defense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>[The remainder of this page is intentionally
left blank.]</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>, the Company has
caused this Note to be duly executed all as of the day and year above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold">AMERICAN PETRO-HUNTER INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 54%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 4%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 42%; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">By:</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Its:</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>8
<FILENAME>v318014_ex10-7.htm
<DESCRIPTION>EXHIBIT 10.7
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS FIRST LIEN SECURITY
AGREEMENT (&ldquo;<U>Agreement</U>&rdquo;), dated as of July 3, 2012, among AMERICAN PETRO-HUNTER INC., a Nevada corporation (&ldquo;<U>Company</U>&rdquo;<FONT STYLE="color: black">;
Company</FONT>, together with each other Person who becomes a party to this Agreement by execution of a joinder in the form of
<U>Exhibit A</U> attached hereto, is referred to individually as a &ldquo;<U>Debtor</U>&rdquo; and, collectively, as the &ldquo;<U>Debtors</U>&rdquo;),
and ASYM ENERGY OPPORTUNITIES LLC, a Delaware limited liability company, in its capacity as collateral agent for the holders of
the Obligations (together with its successors and assigns in such capacity, the &ldquo;<U>Secured Party</U>&rdquo;).</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Secured
Party has entered into that certain Purchase Agreement dated as of July 3, 2012, by and among Secured, and as the same may be further
amended, restated, modified or supplemented and in effect from time to time, the &ldquo;<U>Purchase Agreement</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, to induce
Secured Party to enter into the Purchase Agreement, Company has agreed to pledge and grant a security interest in the Collateral
(as hereinafter defined) as security for the Obligations (as hereinafter defined).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1. <U>Definitions</U>.
Capitalized terms used herein without definition and defined in the Purchase Agreement are used herein as defined therein. In addition,
as used herein:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Accounts</U>&rdquo;
means any &ldquo;account,&rdquo; as such term is defined in the Uniform Commercial Code, and, in any event, shall include, without
limitation, &ldquo;supporting obligations&rdquo; as defined in the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>As-extracted
Collateral</U>&rdquo; means any &ldquo;as-extracted collateral,&rdquo; as such term is defined in the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Chattel
Paper</U>&rdquo; means any &ldquo;chattel paper,&rdquo; as such term is defined in the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Collateral</U>&rdquo;
shall have the meaning ascribed thereto in <U>Section 3</U> hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Collateral
Agent&rdquo; shall have the meaning ascribed thereto in Section 5.12 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Commercial
Tort Claims</U>&rdquo; means &ldquo;commercial tort claims&rdquo;, as such term is defined in the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Contracts</U>&rdquo;
means all contracts, undertakings, or other s (other than rights evidenced by Chattel Paper, Documents or Instruments) in or under
which a Debtor may now or hereafter have any right, title or interest, including without limitation with respect to an Account,
any agreement relating to the terms of payment or the terms of performance thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Copyrights</U>&rdquo;
means any copyrights, rights and interests in copyrights, works protectable by copyrights, copyright registrations and copyright
applications, including, without limitation, the copyright registrations and applications listed on <U>Schedule III</U> attached
hereto, and all renewals of any of the foregoing, all income, royalties, damages and payments now and hereafter due and/or payable
under or with respect to any of the foregoing, including without limitation damages and payments for past, present and future infringements
of any of the foregoing and the right to sue for past, present and future infringements of any of the foregoing.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Deposit
Accounts</U>&rdquo; means all &ldquo;deposit accounts&rdquo; as such term is defined in the Uniform Commercial Code, now or hereafter
held in the name of a Debtor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Documents</U>&rdquo;
means any &ldquo;documents,&rdquo; as such term is defined in the Uniform Commercial Code, and shall include without limitation
all documents of title (as defined in the Uniform Commercial Code), bills of lading or other receipts evidencing or representing
Inventory or Equipment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Equipment</U>&rdquo;
means any &ldquo;equipment,&rdquo; as such term is defined in the Uniform Commercial Code and, in any event, shall include, Motor
Vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Excluded
Deposit Accounts</U>&rdquo; means none.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>General
Intangibles</U>&rdquo; means any &ldquo;general intangibles,&rdquo; as such term is defined in the Uniform Commercial Code, and,
in any event, shall include without limitation all right, title and interest in or under any Contract, models, drawings, materials
and records, claims, literary rights, goodwill, rights of performance, Copyrights, Trademarks, Patents, warranties, rights under
insurance policies and rights of indemnification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Goods</U>&rdquo;
means any &ldquo;goods&rdquo;, as such term is defined in the Uniform Commercial Code, including without limitation fixtures and
embedded Software to the extent included in &ldquo;goods&rdquo; as defined in the Uniform Commercial Code .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Governmental
Authority</U>&rdquo; means the government of the United States of America or any other nation, or any political subdivision thereof,
whether state or local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administration powers or functions of or pertaining to government or any
Debtor of any of their Subsidiaries, or any of their respective properties, assets or undertakings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Instruments</U>&rdquo;
means any &ldquo;instrument,&rdquo; as such term is defined in the Uniform Commercial Code, and shall include without limitation
promissory notes, drafts, bills of exchange, trade acceptances, letters of credit, letter of credit rights (as defined in the Uniform
Commercial Code), and Chattel Paper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Inventory</U>&rdquo;
means any &ldquo;inventory,&rdquo; as such term is defined in the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Investment
Property</U>&rdquo; means any &ldquo;investment property&rdquo;, as such term is defined in the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Motor
Vehicles</U>&rdquo; shall mean motor vehicles, tractors, trailers and other like property, whether or not the title thereto is
governed by a certificate of title or ownership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;Note
or Notes&rdquo; shall mean that certain promissory note(s) of Company, of even date herewith, in the maximum amount of $10,000,000,
payable to the Purchaser, and any and all renewals, extensions, modifications, replacements, substitutions, increases, and rearrangements
thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;&ldquo;<U>Obligations</U>&rdquo;
shall mean all obligations, liabilities and indebtedness of every nature of Debtors from time to time owed or owing under or in
respect of this Agreement, the Note, the Mortgages and any other Security Instrument, as the case may be, including without limitation
the principal amount of all debts, claims and indebtedness, accrued and unpaid interest and all fees, costs and expenses, whether
primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and/or from time to time hereafter owing, due or payable
whether before or after the filing of a bankruptcy, insolvency or similar proceeding under applicable federal, state, foreign
or other law and any other amounts that may be loaned from time to time by the Secured Party to the Debtors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Patents</U>&rdquo;
means any patents and patent applications, including without limitation the inventions and improvements described and claimed therein,
all patentable inventions and those patents and patent applications listed on <U>Schedule&nbsp;IV</U> attached hereto, and the
reissues, divisions, continuations, renewals, extensions and continuations-in-part of any of the foregoing, and all income, royalties,
damages and payments now or hereafter due and/or payable under or with respect to any of the foregoing, including, without limitation,
damages and payments for past, present and future infringements of any of the foregoing and the right to sue for past, present
and future infringements of any of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Proceeds</U>&rdquo;
means &ldquo;proceeds,&rdquo; as such term is defined in the Uniform Commercial Code and, in any event includes without limitation,
(a) any and all proceeds of any insurance, indemnity, warranty or guaranty payable with respect to any of the Collateral, (b) any
and all payments (in any form whatsoever) made or due and payable from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental body, authority, bureau or agency
(or any person acting under color of governmental authority), and (c) any and all other amounts from time to time paid or payable
under, in respect of or in connection with any of the Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Purchaser
Transaction Documents</U>&rdquo; means The Agreement, First Lien Security Agreement, Third Amendment to Promissory Notes, Control
Agreement, Note and Warrant Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Representative</U>&rdquo;
means any Person acting as agent, representative or trustee on behalf of the Secured Party from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Security
Instrument</U>&rdquo; means any and all agreements or instruments now or hereafter executed and delivered by Borrower as security
for the payment or performance of the Obligations, in form and substance satisfactory to Lender, as such agreements may be amended
or otherwise modified from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Software</U>&rdquo;
means all &ldquo;software&rdquo; as such term is defined in the Uniform Commercial Code, now owned or hereafter acquired by a Debtor,
other than software embedded in any category of Goods, including without limitation all computer programs and all supporting information
provided in connection with a transaction related to any program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Event
of Default</U>&rdquo; shall have the meaning set forth in the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Trademarks</U>&rdquo;
means any trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service
marks, logos, other business identifiers, prints and labels on which any of the foregoing have appeared or appear, all registrations
and recordings thereof, and all applications in connection therewith, including without limitation the trademarks and applications
listed in <U>Schedule V</U> attached hereto and renewals thereof, and all income, royalties, damages and payments now or hereafter
due and/or payable under or with respect to any of the foregoing, including without limitation damages and payments for past, present
and future infringements of any of the foregoing and the right to sue for past, present and future infringements of any of the
foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Uniform
Commercial Code</U>&rdquo; shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided,
that to the extent that the Uniform Commercial Code is used to define any term herein and such term is defined differently in different
Articles or Divisions of the Uniform Commercial Code, the definition of such term contained in Article or Division 9 shall govern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2. <U>Representations,
Warranties and Covenants of Debtors</U>. Each Debtor represents and warrants to, and covenants with, the Secured Party as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Debtor has or will have rights in and the power to transfer the Collateral in which it purports to grant a security interest pursuant
to <U>Section 3</U> hereof (subject, with respect to after acquired Collateral, to such Debtor acquiring the same) and no Lien
(other than Permitted Liens) exists or will exist upon such Collateral at any time;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement is effective to create in favor of the Secured Party a valid security interest in any Lien upon all of such Debtor&rsquo;s
right, title and interest in and to the Collateral, and, upon (i) the filing of appropriate Uniform Commercial Code financing statements
in the jurisdictions listed on <U>Schedule I</U> attached hereto, and (ii) each Deposit Account (other than the Excluded Deposit
Accounts) being subject to an Account Control Agreement (as hereinafter defined) between the applicable Debtor and depositary institution
and the Secured Party on behalf of the Secured Party, such security interest will be a duly perfected first priority perfected
security interest in all the Collateral (other than Instruments not constituting Chattel Paper), and upon delivery of the Instruments
to the Secured Party or its Representative, duly endorsed by such Debtor or accompanied by appropriate instruments of transfer
duly executed by such Debtor, the security interest in the Instruments will be duly perfected;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on <U>Schedule I</U> attached
hereto. Except as disclosed on <U>Schedule I</U>, none of the Collateral is in the possession of any bailee, warehousemen, processor
or consignee. <U>Schedule I</U> discloses such Debtor&rsquo;s name as of the date hereof as it appears in official filings in the
state of its incorporation, formation or organization, the type of entity of such Debtor (including corporation, partnership, limited
partnership or limited liability company), organizational identification number issued by such Debtor&rsquo;s state of incorporation,
formation or organization (or a statement that no such number has been issued), such Debtor&rsquo;s state or province, as applicable,
of incorporation, formation or organization and the chief place of business, chief executive office and the office where such Debtor
keeps its books and records. Such Debtor has only one state of incorporation, formation or organization. Such Debtor (including
any Person acquired by such Debtor) does not do business and has not done business during the past five (5) years under any trade
name or fictitious business name, except as disclosed on <U>Schedule II</U> attached hereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Copyrights, Patents or Trademarks listed on <U>Schedules III</U>, <U>IV </U>and <U>V</U>, respectively, if any, have been adjudged
invalid or unenforceable or have been canceled, in whole or in part, or are not presently subsisting. Each of such Copyrights,
Patents and Trademarks is valid and enforceable. Such Debtor is the sole and exclusive owner of the entire and unencumbered right,
title and interest in and to each of such Copyrights, Patents and Trademarks, identified on <U>Schedules III</U>, <U>IV</U> and
<U>V</U>, as applicable, as being owned by such Debtor, free and clear of any liens, charges and encumbrances (other than Permitted
Liens), including without limitation licenses, shop rights and covenants by such Debtor not to sue third persons. Such Debtor has
adopted, used and is currently using, or has a current bona fide intention to use, all of such Trademarks and Copyrights. Such
Debtor has no notice of any suits or actions commenced or threatened with reference to the Copyrights, Patents or Trademarks owned
by it;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Debtor agrees to deliver to the Secured Party an updated <U>Schedule I</U>, <U>II</U>, <U>III</U>, <U>IV</U> and/or <U>V</U> within
five (5) Business Days of any change thereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
depositary and other accounts including, without limitation, Deposit Accounts, securities accounts, brokerage accounts and other
similar accounts, maintained by each Debtor are described on <U>Schedule VI</U> hereto, which description includes for each such
account the name of the Debtor maintaining such account, the name, address and telephone and telecopy numbers of the financial
institution at which such account is maintained, the account number and the account officer, if any, of such account. No Debtor
shall open any new Deposit Accounts, securities accounts, brokerage accounts or other accounts unless such Debtor shall have given
the Secured Party ten (10) Business Days&rsquo; prior written notice of its intention to open any such new accounts. Each Debtor
shall deliver to the Secured Party a revised version of <U>Schedule VI</U> showing any changes thereto within five (5) Business
Days of any such change. Each Debtor hereby authorizes the financial institutions at which such Debtor maintains an account to
provide the Secured Party with such information with respect to such account (other than an Excluded Deposit Account) as the Secured
Party from time to time reasonably may request, and each Debtor hereby consents to such information being provided to the Secured
Party. In addition, all of Debtor&rsquo;s depositary, brokerage, security and other accounts including without limitation Deposit
Accounts shall be subject to the provisions of <U>Section 4.5</U> hereof;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Debtor does not own any Commercial Tort Claim except for those disclosed on <U>Schedule VII</U> hereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Debtor does not have any interest in real property or mining rights with respect to real property except as disclosed on <U>Schedule
VIII</U>. Each Debtor shall deliver to the Secured Party a revised version of <U>Schedule VIII</U> showing any material changes
thereto within twenty (20) Business Days of any such change. Except as otherwise agreed to by the Secured Party, all such interests
in real property or mining rights with respect to such real property are subject to a mortgage, deed of trust and assignment of
production proceeds (in form and substance satisfactory to the Secured Party) in favor of the Secured Party (hereinafter, a &ldquo;<U>Mortgage</U>&rdquo;).
Each Debtor acknowledges that each such Mortgage contains an <U>Exhibit A</U> (or other applicable Exhibit) listing the properties
in which Debtor has an interest, and to the extent that <U>Schedule VIII</U> is updated pursuant to this <U>Section 2(h)</U>, the
applicable Debtor shall be obligated to execute an amendment to the applicable Exhibit to the applicable Mortgage such that, after
giving effect to such Mortgage amendment, the Secured Party will have a first priority perfected security interest in such new
real property or mining rights;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Debtor shall duly and properly record each interest in real property held by such Debtor except with respect to easements, rights
of way, access agreements, surface damage agreements, surface use agreement or similar agreements that such Debtor, using prudent
customs and practices in the industry in which it operates, does not believe are of material value or material to the operation
of such Debtor&rsquo;s business or, with respect to certain local, state and federal rights of way, are not capable of being recorded
as a matter of local, state or federal law; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Equipment (including without limitation Motor Vehicles) owned by a Debtor and subject to a certificate of title or ownership statute
is described on <U>Schedule IX</U> hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pledge of
<U>Collateral</U>. As collateral security for the prompt performance and payment in full when due (whether at stated maturity,
by acceleration or otherwise) of the Obligations, each Debtor hereby pledges and grants to the Secured Party, for its benefit,
a Lien on and security interest in and to all of such Debtor&rsquo;s right, title and interest in the personal property and assets
of such Debtor, whether now owned by such Debtor or hereafter acquired and whether now existing or hereafter coming into existence
and wherever located (all being collectively referred to herein as &ldquo;<U>Collateral</U>&rdquo;), including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Instruments, together with all payments thereon or thereunder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Accounts;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Inventory;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
General Intangibles (including payment intangibles (as defined in the Uniform Commercial Code) and Software);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Equipment;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Documents;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Contracts;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Goods;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Investment Property;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Deposit Accounts, including, without limitation, the balance from time to time in all bank accounts maintained by such Debtor (excluding,
however, the Excluded Deposit Accounts);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial
Tort Claims specified on <U>Schedule VII</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
As-extracted Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Trademarks, Patents and Copyrights; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
other tangible and intangible property of such Debtor, including, without limitation, all interests in real property, Proceeds,
tort claims, products, accessions, rents, profits, income, benefits, substitutions, additions and replacements of and to any of
the property of such Debtor described in the preceding clauses of this <U>Section 3</U> (including, without limitation, any proceeds
of insurance thereon, insurance claims and all rights, claims and benefits against any Person relating thereto), other rights to
payments not otherwise included in the foregoing, and all books, correspondence, files, records, invoices and other papers, including
without limitation all tapes, cards, computer runs, computer programs, computer files and other papers, documents and records in
the possession or under the control of such Debtor or any computer bureau or service company from time to time acting for such
Debtor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4. <U>Covenants;
Remedies</U>. In furtherance of the grant of the pledge and security interest pursuant to <U>Section 3</U> hereof, each Debtor
hereby agrees with the Secured Party as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.1. <U>Delivery and
Other Perfection; Maintenance, etc</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery
of Instruments, Documents, Etc</U>. Each Debtor shall deliver and pledge to the Secured Party or its Representative any and all
Instruments, negotiable Documents, Chattel Paper and certificated securities (accompanied by stock powers executed in blank) duly
endorsed and/or accompanied by such instruments of assignment and transfer executed by such Debtor in such form and substance as
the Secured Party or its Representative may request; <U>provided</U>, that so long as no Event of Default shall have occurred and
be continuing, each Debtor may retain for collection in the ordinary course of business any Instruments, negotiable Documents and
Chattel Paper received by such Debtor in the ordinary course of business, and the Secured Party or its Representative shall, promptly
upon request of a Debtor, make appropriate arrangements for making any other Instruments, negotiable Documents and Chattel Paper
pledged by such Debtor available to such Debtor for purposes of presentation, collection or renewal (any such arrangement to be
effected, to the extent deemed appropriate by the Secured Party or its Representative, against a trust receipt or like document).
If a Debtor retains possession of any Chattel Paper, negotiable Documents or Instruments pursuant to the terms hereof, such Chattel
Paper, negotiable Documents and Instruments shall be marked with the following legend: &ldquo;This writing and the obligations
evidenced or secured hereby are subject to the security interest of [____________] in its capacity as collateral agent for the
benefit of the holders of the Obligations, as secured party.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Documents and Actions</U>. Each Debtor shall give, execute, deliver, file and/or record any financing statement, notice, instrument,
document, agreement or other papers that may be necessary or desirable (in the reasonable judgment of the Secured Party or its
Representative) to create, preserve, perfect or validate the security interest granted pursuant hereto (or any security interest
or mortgage contemplated or required hereunder, including with respect to <U>Section 2(h)</U> of this Agreement) or to enable the
Secured Party or its Representative to exercise and enforce the rights of the Secured Party hereunder with respect to such pledge
and security interest, <U>provided</U> that notices to account debtors in respect of any Accounts or Instruments shall be subject
to the provisions of clause (e) below. Notwithstanding the foregoing, each Debtor hereby irrevocably authorizes the Secured Party
at any time and from time to time to file in any filing office in any jurisdiction any initial financing statements and amendments
thereto that (a) indicate the Collateral (i) as all assets of such Debtor or words of similar effect, regardless of whether any
particular asset comprised in the Collateral falls within the scope of Article 9 of the Uniform Commercial Code of the State of
New York or such jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other information
required by part 5 of Article 9 of the Uniform Commercial Code of the State of New York or any other State for the sufficiency
or filing office acceptance of any financing statement or amendment, including (i) whether such Debtor is an organization, the
type of organization and any organization identification number issued to such Debtor, and (ii) in the case of a financing statement
filed as a fixture filing or indicating Collateral as As-extracted Collateral or timber to be cut, a sufficient description of
real property to which the Collateral relates. Each Debtor agrees to furnish any such information to the Secured Party promptly
upon request. Each Debtor also ratifies its authorization for the Secured Party to have filed in any jurisdiction any like initial
financing statements or amendments thereto if filed prior to the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Books
and Records</U>. Each Debtor shall maintain, at its own cost and expense, complete and accurate books and records of the Collateral,
including without limitation a record of all payments received and all credits granted with respect to the Collateral and all other
dealings with the Collateral. Upon the occurrence and during the continuation of any Event of Default, each Debtor shall deliver
and turn over any such books and records (or true and correct copies thereof) to the Secured Party or its Representative at any
time on demand. Each Debtor shall permit any representative of the Secured Party to inspect such books and records at any time
during reasonable business hours and will provide photocopies thereof at such Debtor&rsquo;s expense to the Secured Party upon
request of the Secured Party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Motor
Vehicles</U>. Each Debtor shall, promptly upon the request of the Secured Party or its Representative, cause the Secured Party
to be listed as the lienholder on each certificate of title or ownership covering any items of Equipment, including Motor Vehicles
having a value in excess of $100,000 in the aggregate for all such items of Equipment of the Debtors, or otherwise comply with
the certificate of title or ownership laws of the relevant jurisdiction issuing such certificate of title or ownership in order
to properly evidence and perfect the Secured Party&rsquo;s security interest in the assets represented by such certificate of title
or ownership. <B><I><U> </U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice
to Account Debtors; Verification</U>. (i) Upon the occurrence and during the continuance of any Event of Default (or if any rights
of set-off (other than set-offs against an Account arising under the Contract giving rise to the same Account) or contra accounts
may be asserted), upon request of the Secured Party or its Representative, each Debtor shall promptly notify (and each Debtor hereby
authorizes the Secured Party and its Representative so to notify) each account debtor in respect of any Accounts or Instruments
or other Persons obligated on the Collateral that such Collateral has been assigned to the Secured Party hereunder, and that any
payments due or to become due in respect of such Collateral are to be made directly to the Secured Party, and (ii) the Secured
Party and its Representative shall have the right at any time or times to make direct verification with the account debtors or
other Persons obligated on the Collateral of any and all of the Accounts or other such Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Intellectual
Property</U>. Each Debtor represents and warrants that the Copyrights, Patents and Trademarks listed on <U>Schedules III</U>, <U>IV</U>
and <U>V</U>, respectively, constitute all of the registered Copyrights and all of the Patents and Trademarks now owned by such
Debtor. If such Debtor shall (i) obtain rights to any new patentable inventions, any registered Copyrights or any Patents or Trademarks,
or (ii) become entitled to the benefit of any registered Copyrights or any Patents or Trademarks or any improvement on any Patent,
the provisions of this Agreement above shall automatically apply thereto and such Debtor shall give to the Secured Party prompt
written notice thereof. Each Debtor hereby authorizes the Secured Party to modify this Agreement by amending <U>Schedules III</U>,
<U>IV</U> and <U>V</U>, as applicable, to include any such registered Copyrights or any such Patents and Trademarks. Each Debtor
shall have the duty (i) to prosecute diligently any patent, trademark, or service mark applications pending as of the date hereof
or hereafter, (ii) to make application on unpatented but patentable inventions and on trademarks, copyrights and service marks,
as appropriate, (iii) to preserve and maintain all rights in the Copyrights, Patents and Trademarks, to the extent material to
the operations of the business of such Debtor and (iv) to ensure that the Copyrights, Patents and Trademarks are and remain enforceable,
to the extent material to the operations of the business of such Debtor. Any expenses incurred in connection with such Debtor&rsquo;s
obligations under this <U>Section 4.1(f)</U> shall be borne by such Debtor. Except for any such items that a Debtor reasonably
believes (using prudent industry customs and practices) are no longer necessary for the on-going operations of its business, no
Debtor shall abandon any right to file a patent, trademark or service mark application, or abandon any pending patent, application
or any other Copyright, Patent or Trademark without the written consent of the Secured Party, which consent shall not be unreasonably
withheld.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Identification of Collateral</U>. Each Debtor will, when and as often as requested by the Secured Party or its Representative,
furnish to the Secured Party or such Representative, statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as the Secured Party or its Representative may reasonably request, all
in reasonable detail.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Property</U>. Each Debtor will take any and all actions required or requested by the Secured Party, from time to time, to (i) cause
the Secured Party to obtain exclusive control of any Investment Property owned by such Debtor in a manner acceptable to the Secured
Party and (ii) obtain from any issuers of Investment Property and such other Persons, for the benefit of the Secured Party, written
confirmation of the Secured Party&rsquo;s control over such Investment Property. For purposes of this <U>Section 4.1(h)</U>, the
Secured Party shall have exclusive control of Investment Property if (A) such Investment Property consists of certificated securities
and a Debtor delivers such certificated securities to the Secured Party (with appropriate endorsements if such certificated securities
are in registered form); (B) such Investment Property consists of uncertificated securities and either (x) a Debtor delivers such
uncertificated securities to the Secured Party or (y) the issuer thereof agrees, pursuant to documentation in form and substance
satisfactory to the Secured Party, that it will comply with instructions originated by the Secured Party without further consent
by such Debtor, and (C) such Investment Property consists of security entitlements and either (x) the Secured Party becomes the
entitlement holder thereof or (y) the appropriate securities intermediary agrees, pursuant to the documentation in form and substance
satisfactory to the Secured Party, that it will comply with entitlement orders originated by the Secured Party without further
consent by any Debtor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Equipment</U>.
No Debtor shall, nor shall any Subsidiary, (i) permit any Equipment to become a fixture to Real Property unless such Real Property
is owned or leased by such Person and is subject to a mortgage in favor of the Secured Party and if such Real Property is leased,
is subject to a landlord&rsquo;s agreement in favor of the Secured Party on terms acceptable to the Secured Party, or (ii) permit
any Equipment to become an accession to any other personal property unless such personal property is subject to a first priority
perfected Lien (subject only to Permitted Liens) in favor of the Secured Party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Commercial
Tort Claims</U>. Each Debtor shall promptly notify the Secured Party of any Commercial Tort Claim acquired by it that concerns
a claim in excess of $50,000 and, unless otherwise consented to by the Secured Party, such Debtor shall enter into a supplement
to this Agreement granting to the Secured Party a Lien on and security interest in such Commercial Tort Claim.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Excluded
Deposit Accounts</U>. The Excluded Deposit Accounts shall be used for the sole purpose of holding cash for the benefit of third
parties and shall not contain nor be used for any other deposits of any kind.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.2 <U>Other Liens</U>.
Debtors will not create, permit or suffer to exist, and will defend the Collateral against and take such other action as is necessary
to remove, any Lien on the Collateral (other than Permitted Liens), and will defend the right, title and interest of the Secured
Party in and to the Collateral and in and to all Proceeds thereof against the claims and demands of all Persons whatsoever.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.3 <U>Preservation
of Rights</U>. Whether or not any Event of Default has occurred or is continuing, the Secured Party and its Representative may,
but shall not be required to, take any steps the Secured Party or its Representative deems necessary or appropriate to preserve
any Collateral or any rights against third parties to any of the Collateral, including obtaining insurance for the Collateral at
any time when a Debtor has failed to do so, and Debtors shall promptly pay, or reimburse the Secured Party for, all expenses incurred
in connection therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.4 <U>Formation of
Subsidiaries; Name Change; Location; Bailees</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Debtor shall form any Subsidiary unless such Subsidiary becomes a party to this Agreement, all other applicable Ancillary Documents
and such other documents as the Secured Party shall request (including, without limitation, proof of corporate (or comparable)
action, incumbency of officers, opinions of counsel and other documents as the Secured Party shall have reasonably required or
requested), and such take such other action (including authorizing the filing of such UCC financing statements and delivering certificates
in respect of the equity securities of such subsidiary), as shall be necessary or appropriate to establish, create, preserve, protect
and perfect a first priority Lien (subject only to Permitted Liens) in favor of the Secured Party on all assets, both real and
personal, in which such new Subsidiary has or may thereafter acquire any interest. Each Debtor shall, and each Debtor shall cause
each of its Subsidiaries to, take such action from time to time as shall be necessary to ensure that each of the Subsidiaries is
a wholly-owned Subsidiary, and that the Secured Party shall have a first priority Lien (subject only to Permitted Liens) on all
equity securities of each of the Subsidiaries concurrently with acquisition or formation of such Subsidiary and each Debtor shall,
or shall cause each of the Subsidiaries to deliver promptly to the Secured Party the certificates evidencing such securities, accompanied
by undated powers executed in blank and to take such other action as the Secured Party shall request to perfect the security interest
created therein pursuant to such documents. Each Debtor shall, and shall cause each of the Subsidiaries to, (A) refrain from engaging
to any extent in any business other than the ownership and operation of oil, gas and other hydrocarbon drilling, exploration and
development rights, concessions, working interests and participation interests and hydrocarbon transportation facilities and businesses
reasonably related thereto or in furtherance thereof, and (B) preserve, renew and keep in full force and effect their respective
material rights, privileges and franchises necessary or desirable in the normal conduct of their business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Debtor shall (i) reincorporate or reorganize itself under the laws of any jurisdiction other than the jurisdiction in which it
is incorporated or organized as of the date hereof without the prior written consent of the Secured Party, which shall not be unreasonably
withheld, or (ii) otherwise change its name, identity or corporate structure, in each case, without the prior written consent of
the Secured Party. Each Debtor will notify the Secured Party promptly in writing prior to any such change in the proposed use by
such Debtor of any trade name or fictitious business name other than any such name set forth on <U>Schedule II</U> attached hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
for the sale of Inventory in the ordinary course of business and other sales of assets expressly permitted in the Purchase Agreement,
each Debtor will keep the Collateral at the locations specified in <U>Schedule I</U>. Each Debtor will give the Secured Party thirty
(30) day&rsquo;s prior written notice of any change in such Debtor&rsquo;s chief place of business, any new location for any of
the Collateral, the closing of any existing place of business or location of books, records, accounts (or copies thereof) and any
other Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any Collateral is at any time in the possession or control of any warehousemen, bailee, consignee or processor, such Debtor shall,
upon the request of the Secured Party or its Representative, notify such warehousemen, bailee, consignee or processor of the Lien
and security interest created hereby and shall instruct such Person to hold all such Collateral for the Secured Party&rsquo;s account,
subject to the Secured Party&rsquo;s instructions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Debtor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect
to any financing statement without the prior written consent of the Secured Party and each Debtor agrees that it will not do so
without the prior written consent of the Secured Party, subject to such Debtor&rsquo;s rights under Section 9-509(d)(2) to the
Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Debtor shall enter into any Contract that restricts or prohibits the grant to the Secured Party of a security interest in Accounts,
Chattel Paper, Instruments or payment intangibles or the proceeds of the foregoing to the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bank
Accounts and Securities Accounts</U>. On or prior to the date hereof, the Secured Party and each Debtor shall enter into an account
control agreement or securities account control agreement, as applicable, (each an &ldquo;<U>Account Control Agreement</U>&rdquo;),
in a form specified by the Secured Party, with each financial institution with which such Debtor maintains from time to time any
Deposit Accounts (general or special (but specifically excluding the Excluded Deposit Accounts), securities accounts, brokerage
accounts or other similar accounts, which financial institutions are set forth on <U>Schedule VI</U> attached hereto; <U>provided</U>,
<U>however</U>, that notwithstanding the foregoing, the Secured Party acknowledges and agrees that it may not be possible for the
Debtors to obtain duly executed Account Control Agreements prior to the date hereof, and the Secured Party hereby agrees that it
shall not constitute a breach of the Purchase Agreement, this Agreement or any other Security Instrument executed pursuant thereto
or hereto if any Debtor fails to obtain such executed Account Control Agreements in a timely fashion so long as any Debtor, as
the case may be, undertakes commercially reasonable efforts to obtain such executed agreements as soon as practicable after the
date hereof from the applicable financial institutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Account
Control Agreements and pursuant hereto, each such Debtor grants and shall grant to the Secured Party a continuing lien upon, and
security interest in all such accounts and all funds at any time paid, deposited, credited or held in such accounts (whether for
collection, provisionally or otherwise) or otherwise in the possession of such financial institutions, and each such financial
institution shall act as the Secured Party&rsquo;s agent in connection therewith. Following the date hereof, no Debtor shall establish
any Deposit Account, securities account, brokerage account or other similar account with any financial institution, unless the
Secured Party and such Debtor shall have previously entered into an Account Control Agreement with such financial institution which
purports to cover such account. Other than petty cash not exceeding $10,000 in the aggregate for all Debtors and funds deposited
in an Excluded Deposit Account, each Debtor shall deposit and keep on deposit all of its funds into a Deposit Account which is
subject to an Account Control Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.6 <U>Events of Default,
Etc</U>. During the period during which a Event of Default shall have occurred and be continuing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Debtor shall, at the request of the Secured Party or its Representative, assemble the Collateral and make it available to the Secured
Party or its Representative at a place or places designated by the Secured Party or its Representative which are reasonably convenient
to the Secured Party or its Representative, as applicable, and such Debtor;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Secured Party or its Representative may make any reasonable compromise or settlement deemed desirable in its discretion with respect
to any of the Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms
of any of the Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Secured Party shall have all of the rights and remedies with respect to the Collateral of a secured party under the Uniform Commercial
Code (whether or not said Uniform Commercial Code is in effect in the jurisdiction where the rights and remedies are asserted)
and such additional rights and remedies to which a secured party is entitled under the laws in effect in any jurisdiction where
any rights and remedies hereunder may be asserted, including without limitation the right, to the maximum extent permitted by law,
to: (i) exercise all voting, consensual and other powers of ownership pertaining to the Collateral as if the Secured Party were
the sole and absolute owner thereof (and each Debtor agrees to take all such action as may be appropriate to give effect to such
right) and (ii) to the appointment of a receiver or receivers for all or any part of the Collateral or business of a Debtor, whether
such receivership is incident to a proposed sale or sales of such Collateral or otherwise and without regard to the value of the
Collateral or the solvency of any person or persons liable for the payment of the Obligations secured by such Collateral. Each
Debtor hereby consents to the appointment of such receiver or receivers, waives any and all defenses to such appointment, and agrees
that such appointment shall in no manner impair, prejudice or otherwise affect the rights of the Secured Party under this Agreement.
Each Debtor hereby expressly waives notice of a hearing for appointment of a receiver and the necessity for bond or an accounting
by the receiver;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Secured Party or its Representative in their discretion may, in the name of the Secured Party or in the name of a Debtor or otherwise,
demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any
of the Collateral, but shall be under no obligation to do so;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Secured Party or its Representative may take immediate possession and occupancy of any premises owned, used or leased by a Debtor
and may exercise all other rights and remedies of an assignee which may be available to the Secured Party;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Secured Party may, upon ten (10) Business Days&rsquo; prior written notice to Debtors of the time and place (which notice Debtors
hereby agree is commercially reasonable notification for purposes hereof), with respect to the Collateral or any part thereof which
shall then be or shall thereafter come into the possession, custody or control of the Secured Party or its Representative, sell,
lease, license, assign or otherwise dispose of all or any part of such Collateral, at such place or places as the Secured Party
deems best, and for cash or for credit or for future delivery (without thereby assuming any credit risk), at public or private
sale, without demand of performance or notice of intention to effect any such disposition or of the time or place thereof (except
such notice as is required above or by applicable statute and cannot be waived), and the Secured Party or anyone else may be the
purchaser, lessee, licensee, assignee or recipient of any or all of the Collateral so disposed of at any public sale (or, to the
extent permitted by law, at any private sale) and thereafter hold the same absolutely, free from any claim or right of whatsoever
kind, including any right or equity of redemption (statutory or otherwise), of Debtors, any such demand, notice and right or equity
being hereby expressly waived and released. The Secured Party may, without notice or publication, adjourn any public or private
sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for the sale, and such sale
may be made at any time or place to which the sale may be so adjourned;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall promptly notify the Secured Party if such Event of Default, or any litigation or third-party claim, would be reasonably
likely to expose the Company or Operating to an uninsured liability of $100,000 or more; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
rights, remedies and powers conferred by this <U>Section 4.6</U> are in addition to, and not in substitution for, any other rights,
remedies or powers that the Secured Party may have under the Purchase Agreement, this Agreement, the Note or any other Security
Instrument (collectively, the &ldquo;<U>Purchaser Transaction Documents</U>&rdquo;), at law, in equity or by or under the Uniform
Commercial Code or any other statute or agreement. The Secured Party may proceed by way of any action, suit or other proceeding
at law or in equity and no right, remedy or power of the Secured Party will be exclusive of or dependent on any other. The Secured
Party may exercise any of its rights, remedies or powers separately or in combination and at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The proceeds of each collection, sale or
other disposition under this <U>Section 4.6</U> shall be applied in accordance with <U>Section 4.9</U> hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.7 <U>Deficiency</U>.
If the proceeds of sale, collection or other realization of or upon the Collateral are insufficient to cover the costs and expenses
of such realization and the payment in full of the Obligations, Debtors shall remain liable for any deficiency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.8 <U>Private Sale</U>.
Each Debtor recognizes that the Secured Party may be unable to effect a public sale of any or all of the Collateral consisting
of securities by reason of certain prohibitions contained in the Securities Act of 1933, as amended (the &ldquo;<U>Act</U>&rdquo;),
and applicable state securities laws, but may be compelled to resort to one or more private sales thereof to a restricted group
of purchasers who will be obliged to agree, among other things, to acquire such Collateral for their own account for investment
and not with a view to the distribution or resale thereof. Each Debtor acknowledges and agrees that any such private sale may result
in prices and other terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances,
agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner. The Secured Party shall
be under no obligation to delay a sale of any of the Collateral to permit a Debtor to register such Collateral for public sale
under the Act, or under applicable state securities laws, even if Debtors would agree to do so. The Secured Party shall not incur
any liability as a result of the sale of any such Collateral, or any part thereof, at any private sale provided for in this Agreement
conducted in a commercially reasonable manner, and each Debtor hereby waives any claims against the Secured Party arising by reason
of the fact that the price at which the Collateral may have been sold at such a private sale was less than the price which might
have been obtained at a public sale or was less than the aggregate amount of the Obligations, even if the Secured Party accepts
the first offer received and does not offer the Collateral to more than one offeree.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Debtor further
agrees to do or cause to be done all such other acts and things as may be necessary to make such sale or sales of any portion or
all of any such Collateral valid and binding and in compliance with any and all applicable laws, regulations, orders, writs, injunctions,
decrees or awards of any and all courts, arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction
over any such sale or sales, all at such Debtor&rsquo;s expense, <U>provided</U> that Debtors shall be under no obligation to take
any action to enable any or all of such Collateral to be registered under the provisions of the Act. Each Debtor further agrees
that a breach by any Debtor of any of the covenants contained in this <U>Section 4.8</U> will cause irreparable injury to the Secured
Party, that the Secured Party has no adequate remedy at law in respect of such breach and, as a consequence, agrees that each and
every covenant contained in this <U>Section 4.8</U> shall be specifically enforceable against Debtors, and each Debtor hereby waives
and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no
Event of Default has occurred and is continuing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.9 <U>Application
of Proceeds</U>. The proceeds of any collection, sale or other realization of all or any part of the Collateral, and any other
cash at the time held by the Secured Party under this Agreement, shall be applied in the manner set forth in the Purchase Agreement
(or, if not so set forth, in a manner acceptable to, and at the election of, the Secured Party).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.10 <U>Attorney-in-Fact</U>.
Each Debtor hereby irrevocably constitutes and appoints the Secured Party, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and stead of such Debtor and in the name of such Debtor
or in its own name, from time to time in the discretion of the Secured Party, for the purpose of carrying out the terms of this
Agreement, to take any and all appropriate action, and to execute and deliver any and all documents and instruments which may be
necessary or desirable to perfect or protect any security interest granted hereunder, to maintain the perfection or priority of
any security interest granted hereunder and to otherwise accomplish the purposes of this Agreement and, without limiting the generality
of the foregoing, hereby gives the Secured Party the power and right, on behalf of such Debtor, without notice to or assent by
such Debtor, to do the following upon the occurrence and during the continuation of any Event of Default:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
take any and all appropriate action and to execute and deliver any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
ask, demand, collect, receive and give acquittance and receipts for any and all moneys due and to become due under any Collateral
and, in the name of such Debtor or its own name or otherwise, to take possession of and endorse and collect any checks, drafts,
notes, acceptances or other Instruments for the payment of moneys due under any Collateral and to file any claim or to take any
other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Secured Party for the purpose of
collecting any and all such moneys due under any Collateral whenever payable and to file any claim or to take any other action
or proceeding in any court of law or equity or otherwise deemed appropriate by the Secured Party for the purpose of collecting
any and all such moneys due under any Collateral whenever payable;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
pay or discharge charges or liens levied or placed on or threatened against the Collateral, to effect any insurance called for
by the terms of this Agreement and to pay all or any part of the premiums therefor;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due, and to become due
thereunder, directly to the Secured Party or as the Secured Party shall direct, and to receive payment of and receipt for any and
all moneys, claims and other amounts due, and to become due at any time, in respect of or arising out of any Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
sign and indorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications and notices in connection with accounts and other Documents constituting or relating to the Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect
the Collateral or any part thereof and to enforce any other right in respect of any Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
defend any suit, action or proceeding brought against a Debtor with respect to any Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
settle, compromise or adjust any suit, action or proceeding described above and, in connection therewith, to give such discharges
or releases as the Secured Party may deem appropriate;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
the extent that a Debtor&rsquo;s authorization given in <U>Section 4.1(b)</U> of this Agreement is not sufficient to file such
financing statements with respect to this Agreement, with or without such Debtor&rsquo;s signature, or to file a photocopy of this
Agreement in substitution for a financing statement, as the Secured Party may deem appropriate and to execute in such Debtor&rsquo;s
name such financing statements and amendments thereto and continuation statements which may require such Debtor&rsquo;s signature;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;generally
to sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely
as though the Secured Party were the absolute owners thereof for all purposes, and to do, at the Secured Party&rsquo;s option and
at such Debtor&rsquo;s expense, at any time, or from time to time, all acts and things which the Secured Party reasonably deems
necessary to protect, preserve or realize upon the Collateral and the Secured Party&rsquo;s lien therein, in order to effect the
intent of this Agreement, all as fully and effectively as such Debtor might do.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Debtor hereby
ratifies, to the extent permitted by law, all that such attorneys lawfully do or cause to be done by virtue hereof. The power of
attorney granted hereunder is a power coupled with an interest and shall be irrevocable until the Obligations are indefeasibly
paid in full in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Debtor also authorizes
the Secured Party, at any time from and after the occurrence and during the continuation of any Event of Default, (x) to communicate
in its own name with any party to any Contract with regard to the assignment of the right, title and interest of such Debtor in
and under the Contracts hereunder and other matters relating thereto and (y) to execute, in connection with any sale of Collateral
provided for in <U>Section 4.5</U> hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect
to the Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.11 <U>Perfection</U>.
Prior to or concurrently with the execution and delivery of this Agreement, each Debtor shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;file
such financing statements, assignments for security and other documents in such offices as may be necessary or as the Secured Party
or the Representative may request to perfect the security interests granted by <U>Section 3</U> of this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at
the Secured Party&rsquo;s request, deliver to the Secured Party or its Representative the originals of all Instruments, together
with, in the case of Instruments constituting promissory notes, allonges attached thereto showing such promissory notes to be payable
to the order of a blank payee; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at
the Secured Party&rsquo;s request, deliver to the Secured Party or its Representative the originals of all Motor Vehicle titles,
duly endorsed indicating the Secured Party&rsquo;s interest therein as lienholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.12 <U>Termination</U>.
This Agreement and the Liens and security interests granted hereunder shall not terminate until the termination of the Purchase
Agreement and the Note and the full and complete performance and indefeasible satisfaction of all of the Obligations, whereupon
the Secured Party shall forthwith cause to be assigned, transferred and delivered, against receipt but without any recourse, warranty
or representation whatsoever, any remaining Collateral to or on the order of Summerline so long as any Summerline Notes remain
outstanding and thereafter to Debtors. The Secured Party shall also execute and deliver to Debtors upon such termination and at
Debtors&rsquo; expense such Uniform Commercial Code termination statements, certificates for terminating the liens on the Motor
Vehicles (if any), and such other documentation as shall be reasonably requested by Debtors to effect the termination and release
of the Liens and security interests in favor of the Secured Party affecting the Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding anything to the contrary
contained in the Purchase Agreement, any Loan Document or in this Agreement, each Debtor acknowledges and agrees that, solely for
purposes of this Agreement, the parties hereby acknowledge and agree that the Liens created by the Purchase Agreement and Loan
Documents shall survive the acquisition by the Company and Operating of, and continue to apply to, the Assets (as defined in the
Purchase Agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.13 <U>Further Assurances</U>.
(a) At any time and from time to time, upon the written request of the Secured Party or its Representative, and at the sole expense
of Debtors, Debtors will promptly and duly execute and deliver any and all such further instruments, documents and agreements and
take such further actions as the Secured Party or its Representative may reasonably require in order for the Secured Party to obtain
the full benefits of this Agreement and of the rights and powers herein granted in favor of the Secured Party, including, without
limitation, using Debtors&rsquo; best efforts to secure all consents and approvals necessary or appropriate for the assignment
to the Secured Party of any Collateral held by Debtors or in which a Debtor has any rights not heretofore assigned, the filing
of any financing or continuation statements under the Uniform Commercial Code with respect to the liens and security interests
granted hereby, transferring Collateral to the Secured Party&rsquo;s possession (if a security interest in such Collateral can
be perfected by possession), placing the interest of the Secured Party as lienholder on the certificate of title of any Motor Vehicle
and obtaining waivers of liens from landlords and mortgagees. Each Debtor also hereby authorizes the Secured Party and its Representative
to file any such financing or continuation statement without the signature of such Debtor to the extent permitted by applicable
law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the request of the Secured Party, each Debtor shall procure insurers&rsquo; acknowledgments of any assignments of key man life
insurance policies which may be assigned to the Secured Party as additional security for the Obligations (if any) and will take
all such further action as required by any insurer or the Secured Party in connection with any such assignment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.14 <U>Limitation
on Duty of the Secured Party</U>. The powers conferred on the Secured Party under this Agreement are solely to protect the Secured
Party&rsquo;s interest on behalf of itself in the Collateral and shall not impose any duty upon it to exercise any such powers.
The Secured Party shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and
neither the Secured Party nor its Representative nor any of their respective officers, directors, employees or agents shall be
responsible to Debtors for any act or failure to act, except for willful misconduct. Without limiting the foregoing, the Secured
Party and any Representative shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral
in their possession if such Collateral is accorded treatment substantially equivalent to that which the relevant Secured Party
or any Representative, in its individual capacity, accords its own property consisting of the type of Collateral involved, it being
understood and agreed that neither the Secured Party nor any Representative shall have any responsibility for taking any steps
to preserve rights against any Person with respect to any Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Also without limiting
the generality of the foregoing, neither the Secured Party nor any Representative shall have any obligation or liability under
any Contract or license by reason of or arising out of this Agreement or the granting to the Secured Party of a security interest
therein or assignment thereof or the receipt by the Secured Party or any Representative of any payment relating to any Contract
or license pursuant hereto, nor shall the Secured Party or any Representative be required or obligated in any manner to perform
or fulfill any of the obligations of Debtors under or pursuant to any Contract or license, or to make any payment, or to make any
inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under
any Contract or license, or to present or file any claim, or to take any action to collect or enforce any performance or the payment
of any amounts which may have been assigned to it or to which it may be entitled at any time or times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5. <U>Miscellaneous</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.1 <U>No Waiver</U>.
No failure on the part of the Secured Party or any of its Representatives to exercise, and no course of dealing with respect to,
and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise by the Secured Party or any of its Representatives of any right, power or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. The rights and remedies hereunder provided are cumulative
and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.2 <U>Governing Law</U>.
All questions concerning the construction, validity enforcement and interpretation of this Agreement shall be governed by and construed
in accordance with the internal laws and decisions of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.3 <U>Notices</U>.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth
in, and shall be effective in accordance with the terms of, the Purchase Agreement; <U>provided</U>, that, to the extent any such
communication (i) is being made or sent to a Debtor that is not the Company, such communication shall be effective as to such Debtor
if made or sent to the Company in accordance with the foregoing or (ii) is being made or sent to the Secured Party, such communication
shall be made to the Secured Party at the address set forth below the Secured Party&rsquo;s signature hereto. Debtors and the Secured
Party may change their respective notice addresses by written notice given to each other party five (5) Business Days prior to
the effectiveness of such change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.4 <U>Amendments,
Etc</U>. The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by the Debtor
sought to be charged or benefited thereby and the Secured Party. Any such amendment or waiver shall be binding upon the Secured
Party and the Debtor sought to be charged or benefited thereby and their respective successors and assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.5 <U>Successors and
Assigns</U>. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of each of
the parties hereto, <U>provided</U>, that no Debtor shall assign or transfer its rights hereunder without the prior written consent
of the Secured Party. The Secured Party, in such capacity as collateral agent, may assign its rights hereunder without the consent
of the Debtors, in which event such assignee shall be deemed to be the Secured Party hereunder with respect to such assigned rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.6 <U>Counterparts;
Headings</U>. This Agreement may be authenticated in any number of counterparts, all of which taken together shall constitute one
and the same instrument and any of the parties hereto may authenticate this Agreement by signing any such counterpart. This Agreement
may be authenticated by manual signature, facsimile or, if approved in writing by the Secured Party, electronic means, all of which
shall be equally valid. The headings in this Agreement are for convenience of reference only and shall not alter or otherwise affect
the meaning hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.7 <U>Severability</U>.
If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the
other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of
the Secured Party and its Representative in order to carry out the intentions of the parties hereto as nearly as may be possible
and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability
of such provision in any other jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>5.9 <U>SUBMISSION
TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS</U>. (A) EACH DEBTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION
OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT AND EACH DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING
HEREIN SHALL LIMIT THE RIGHT OF SECURED PARTY TO BRING PROCEEDINGS AGAINST ANY DEBTOR IN THE COURTS OF ANY OTHER JURISDICTION.
ANY JUDICIAL PROCEEDING BY A DEBTOR AGAINST THE SECURED PARTY OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK
..</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH
DEBTOR DESIGNATES AND APPOINTS CT CORPORATION SYSTEM AND SUCH OTHER PERSONS AS MAY HEREAFTER BE SELECTED BY IT (AFTER PRIOR WRITTEN
NOTICE TO THE SECURED PARTY) WHICH IRREVOCABLY AGREES IN WRITING TO SO SERVE AS ITS AGENT TO RECEIVE ON ITS BEHALF SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDINGS IN ANY SUCH COURT, SUCH SERVICE BEING HEREBY ACKNOWLEDGED BY EACH DEBTOR TO BE EFFECTIVE AND BINDING
SERVICE IN EVERY RESPECT. A COPY OF ANY SUCH PROCESS SO SERVED SHALL BE MAILED BY REGISTERED MAIL TO SUCH DEBTOR AT ITS ADDRESS
PROVIDED IN THIS AGREEMENT EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT
THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A DEBTOR REFUSES TO ACCEPT SERVICE, SUCH DEBTOR HEREBY AGREES THAT
SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>5.10 <U>WAIVER OF
RIGHT TO TRIAL BY JURY</U>. EACH DEBTOR AND THE SECURED PARTY EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION,
PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT
TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH DEBTOR AND THE SECURED PARTY AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL
BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT
TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE
OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Joint
and Several</U>. The obligations, covenants and agreements of Debtors hereunder shall be the joint and several obligations, covenants
and agreements of each Debtor, whether or not specifically stated herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Collateral
Agent</U>. (a)&nbsp;The Secured Party is appointed and authorized to act
as collateral agent hereunder (the &ldquo;<U>Collateral Agent</U>&rdquo;), to enter into each of the instruments, documents and
agreements, including any pledge agreement, guaranty, financing statements, mortgage, Account Control Agreement or any other Loan
Document (collectively with this Agreement, the &ldquo;<U>Financing Documents</U>&rdquo;), to which it is a party as agent (including
as a collateral agent) on behalf of any holders of the Obligations (collectively, the &ldquo;<U>Holders</U>&rdquo;) and to take
such actions as Collateral Agent on the Holders&rsquo; behalf under the Financing Documents and to exercise such powers under the
Financing Documents as are delegated to the Collateral Agent (as agent, secured party or otherwise) by the terms thereof, together
with all such powers as are reasonably incidental thereto. The Collateral Agent shall take such action under this Agreement and/or
any other Loan Documents as the Collateral Agent shall reasonably be directed by the Holders in accordance with the terms of the
Purchaser Transaction Documents. The Secured Party is authorized and empowered to amend, modify, or waive any provisions of this
Agreement or the other Financing Documents to which it is a party or which run in its favor on behalf of the Holders; <U>provided</U>,
however, that the parties hereto hereby agree that no such <FONT STYLE="color: black">amendment, modification or waiver shall be
effective without the unanimous written consent of the Holders</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="color: black">Whether
or not the transactions contemplated hereby shall be consummated, upon demand therefor, the Holders shall indemnify the Collateral
Agent (to the extent not reimbursed by or on behalf of the Company and without limiting the obligation of the Company to do so),
ratably (based on the ratio of the amount of Obligations a Holder holds to the aggregate Obligations held by all Holders) from
and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements
of any kind whatsoever, including, for purposes of clarification, all taxes, which may at any time (including at any time following
the payment in full of the Note and the termination or resignation of the Collateral Agent) be imposed on, incurred by or asserted
against the Collateral Agent in any way relating to or arising out of this Agreement, any other Transaction Document or any document
contemplated hereby or referred to herein or the transactions contemplated hereby or thereby or any action taken or omitted by
the Collateral Agent under or in connection with any of the foregoing; </FONT><U>provided</U>, however, that the Holders shall
not be liable for the payment to the Collateral Agent of any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting solely from the Collateral Agent&rsquo;s gross negligence
or willful misconduct. In addition, the Holders shall reimburse the Collateral Agent upon demand for its ratable share (based on
the ratio of the amount of Obligations a Holder holds to the aggregate Obligations held by all Holders) of any costs or out-of-pocket
expenses (including attorney costs) incurred by the Collateral Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect
of rights or responsibilities under, this Agreement, any other Transaction Document, or any document contemplated hereby or referred
to herein to the extent that the Collateral Agent is not reimbursed for such expenses by or on behalf of the Company. Without limiting
the generality of the foregoing, if any Governmental Authority of any jurisdiction asserts a claim that the Collateral Agent did
not properly withhold tax from amounts paid to or for the account of a Holder (because the appropriate form was not delivered,
was not properly executed, or because such Holder failed to notify the Collateral Agent of a change in circumstances which rendered
the exemption from, or reduction of, withholding tax ineffective, or for any other reason), the Holders shall indemnify the Collateral
Agent fully for all amounts paid, directly or indirectly, by the Collateral Agent as tax or otherwise, including penalties and
interest, and including any taxes imposed by any jurisdiction on the amounts payable to the Collateral Agent under this <U>Section
5.12(b)</U>, together with all related costs and expenses (including attorney costs). The obligation of the Holders in this <U>Section
5.12(b)</U> shall survive the payment of all Obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default or any event that with
the giving of notice or passage of time would constitute a Event of Default unless the Collateral Agent shall have received written
notice from the Holders describing such Event of Default or event that with the giving of notice or passage of time would constitute
a Event of Default and stating that such notice is a &ldquo;notice of default&rdquo;. Upon the occurrence and continuance of a
Event of Default, or an event that with the giving of notice or passage of time would constitute a Event of Default, the Collateral
Agent shall take such action under this Agreement and/or any other Purchaser Transaction Documents with respect to such Event of
Default or event that with the giving of notice or passage of time would constitute a Event of Default as the Collateral Agent
shall reasonably be directed by the Holders in accordance with the terms of the Purchaser Transaction Documents</FONT>;<FONT STYLE="color: black">
</FONT><U>provided</U> that, unless and until the Collateral Agent shall have received such directions, the Collateral Agent may
(but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default or
event that with the giving of notice or passage of time would constitute a Event of Default as the Collateral Agent shall deem
advisable in the best interests of the Holders. In taking such action or refraining from taking such action without specific direction
from the Holders, the Collateral Agent shall use the same degree of care and skill as a prudent person would exercise or use under
the circumstances in the conduct of such person&rsquo;s own affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing
in this <U>Section 5.12</U> shall be deemed to limit or otherwise affect the rights of the Secured Party or the Holders to exercise
any remedy provided in this Agreement or any other Transaction Document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Collateral Agent may resign from the performance of all of its functions and duties hereunder and/or under the other Purchaser
Transaction Documents at any time by giving five (5) Business Days&rsquo; prior written notice to the Holders. Such resignation
shall take effect upon the appointment of a successor Collateral Agent pursuant to <U>Section 5.12(f)</U> below or as otherwise
provided below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
(i) Holders&rsquo; receipt of a notice of resignation by the Collateral Agent in accordance with <U>Section 5.12(e)</U> above,
or (ii) written notice by the Holders to the Collateral Agent of Holders&rsquo; election to remove the existing Collateral Agent
and appoint a successor Collateral Agent, the Holders shall have the right to appoint a successor Collateral Agent. Upon the acceptance
of a successor&rsquo;s appointment as Collateral Agent hereunder and notice of such acceptance to the retiring Collateral Agent,
such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Collateral Agent, the retiring Collateral Agent&rsquo;s resignation shall become immediately effective and the retiring Collateral
Agent shall be discharged from all of its duties and obligations hereunder and under the other Purchaser Transaction Documents
(if such resignation was not already effective and such duties and obligations not already discharged, as provided below in this
paragraph). If no such successor shall have been so appointed by the Holders and shall have accepted such appointment within thirty
(30) days after the retiring Collateral Agent gives notice of its resignation or the Holders give notice of their election to replace
the retiring Collateral Agent, then the retiring Collateral Agent may, on behalf of the Holders (but without any obligation) appoint
a successor Collateral Agent without the consent of the Holders. From and following the expiration of such thirty (30) day period,
the Collateral Agent shall have the exclusive right without any Person&rsquo;s consent, upon one (1) Business Days&rsquo; notice
to the Holders, to make its resignation or removal effective immediately. From and following the effectiveness of such notice,
(i) the retiring Collateral Agent shall be discharged from its duties and obligations hereunder and under the other Purchaser Transaction
Documents and (ii) all actions, payments, communications and determinations provided to be made by, to or through the Collateral
Agent shall instead be made by or to the Holders directly, until such time as the Holders appoint a Collateral Agent as provided
for above in this paragraph. The provisions of this Agreement shall continue in effect for the benefit of any retiring Collateral
Agent and its sub-agents after the effectiveness of its resignation or removal hereunder and under the other Purchaser Transaction
Documents in respect of any actions taken or omitted to be taken by any of them while the retiring Collateral Agent was acting
or was continuing to act as Collateral Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: black">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
pursuant to any Financing Document the Collateral Agent is given the discretion to allocate proceeds received by the Collateral
Agent pursuant to the exercise of remedies under the Financing Documents or at law or in equity (including without limitation with
respect to any secured creditor remedies exercised against the Collateral and any other collateral security provided for under
any Financing Document), the Collateral Agent shall apply such proceeds to the then outstanding Obligations in the following order
of priority (with </FONT>amounts received being applied in the numerical order set forth below until exhausted prior to the application
to the next succeeding category and each of the Holders or other Persons entitled to payment shall receive an amount equal to its
pro rata share of amounts available to be applied pursuant to clauses second, third and fourth below)<FONT STYLE="color: black">:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>first</U>,
to payment of fees, costs and expenses (including reasonable attorney&rsquo;s fees) owing to the Collateral Agent;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>second</U>,
to payment of all accrued unpaid interest and fees (other than fees owing to the Collateral Agent) on the Obligations;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>third</U>,
to payment of principal of the Obligations;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>fourth</U>,
to payment of any other amounts owing constituting Obligations; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>fifth</U>,
any remainder shall be for the account of and paid to whoever may be lawfully entitled thereto.<FONT STYLE="color: black"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Strict Construction</U>. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement; Amendments</U>. This Agreement supersedes all other prior oral or written agreements between each Debtor, the Secured
Party, the Holders and their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this
Agreement and the Purchaser Transaction Documents and instruments referenced herein and therein contain the entire understanding
of the parties with respect to the matters covered herein and therein.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><I>[Remainder of Page
Intentionally Left Blank; Signature Pages Follow]</I></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties hereto have caused this First Lien Security Agreement to be duly executed and delivered as of the day and year first
above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="layout-grid-mode: line; text-align: justify"><U>DEBTOR</U>:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="layout-grid-mode: line; font-weight: bold; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="layout-grid-mode: line; text-align: left; vertical-align: middle"><B>AMERICAN PETRO-HUNTER INC.</B>, a Nevada corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="layout-grid-mode: line; text-align: left; vertical-align: middle">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 5%; layout-grid-mode: line; text-align: justify">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify; width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">Name:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">Title:&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">FEIN:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 3in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><U>SECURED PARTY</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><B>ASYM ENERGY OPPORTUNITIES LLC</B>,
a Delaware limited liability company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 4%; layout-grid-mode: line; text-align: justify">By:</TD>
    <TD STYLE="width: 46%; border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">Greg Imbruce, President</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Notice Address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">1055 Washington Blvd., Suite 410</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Stamford, Connecticut 06901</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Attention: Greg Imbruce</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Telephone: (203) 595-5600&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Facsimile: (203) 742-1660</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 3in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 3in">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Joinder to First Lien Security Agreement</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned, ______________________________,
hereby joins in the execution of that certain First Lien Security Agreement dated as of July 3, 2012 (the &ldquo;<U>Security Agreement</U>&rdquo;),
by AMERICAN PETRO-HUNTER INC., a Nevada corporation and each other Person that becomes a Debtor thereunder after the date thereof
and pursuant to the terms thereof, to and in favor of ASYM ENERGY OPPORTUNITIES LLC, a Delaware limited liability company (the
&ldquo;<U>Secured Party</U>&rdquo;). By executing this Joinder, the undersigned hereby agrees that it is a Debtor thereunder and
agrees to be bound by all of the terms and provisions of the Security Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned represents
and warrants to the Secured Party that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on <U>Schedule I</U> attached
hereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except
as disclosed on <U>Schedule II</U>, none of such Collateral is in the possession of any bailee, warehousemen, processor or consignee;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
chief place of business, chief executive office and the office where such Debtor keeps its books and records are located at the
place specified on <U>Schedule III</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such
Debtor (including any Person acquired by such Debtor) does not do business or has not done business during the past five years
under any tradename or fictitious business name, except as disclosed on <U>Schedule IV</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Copyrights, Patents and Trademarks owned by the undersigned are listed in <U>Schedules V</U>, <U>VI</U> and <U>VII</U>, respectively;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Deposit Accounts, securities accounts, brokerage accounts and other similar accounts maintained by such Debtor, and the financial
institutions at which such accounts are maintained, are listed on <U>Schedule VIII</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Commercial Tort Claims of such Debtor are listed on <U>Schedule IX</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
interests in real property and mining rights held by such Debtor are listed on <U>Schedule X</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
Equipment (including Motor Vehicles) owned by such debtors are listed on <U>Schedule XI</U>; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
other representations and warranties made by the Debtors in the Security Agreement are true, complete and correct in all respects
as of the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: right">__________________________, a _____ _________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 5%; layout-grid-mode: line; text-align: justify">By:</TD>
    <TD STYLE="width: 45%; border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">Title:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="layout-grid-mode: line; text-align: justify">&nbsp;</TD>
    <TD STYLE="layout-grid-mode: line; text-align: justify">FEIN:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 3in">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.8
<SEQUENCE>9
<FILENAME>v318014_ex10-8.htm
<DESCRIPTION>EXHIBIT 10.8
<TEXT>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Management Services
Agreement (the &ldquo;<I>Agreement</I>&rdquo;), dated as of July 3, 2012, by and between American Petro-Hunter Inc., a Nevada corporation
with its principal place of business located at 17470 N. Pacesetter Way, Scottsdale, AZ 85255 (together with its subsidiaries and
affiliates, the <I>&ldquo;Company&rdquo;</I>), and ASYM Management LLC, a Delaware limited liability company with its principal
place of business located at 1055 Washington Boulevard, Suite 410, Stamford, CT 06901 (<I>&ldquo;Consultant&rdquo;</I>).<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, Consultant
has expertise and the ability to provide valuable advice and personnel to Company with respect to management, financial, strategic
and operational issues, and other matters of concern to Company; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, Company will materially benefit
from and desires to have Consultant provide such advice and services and Consultant desires to provide such advice and so serve
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, capitalized terms used herein and
not otherwise defined herein shall have the meaning set forth in the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the foregoing, Company and Consultant hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Term
and Termination</B>. Consultant shall provide advice and services to Company hereunder for the period beginning on the date hereof
and expiring on the date of the sale or liquidation and dissolution of the Company. In addition, Consultant may terminate this
Agreement for convenience upon ninety (90) days prior written notice.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Services
to be Provided</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consultant
hereby agrees that during the Term of this Agreement, it will provide the following services. Consultant shall serve Company in
a management assistance role in Company&rsquo;s efforts to maximize it value and build its asset base. Consultant will devote its
commercially reasonable efforts to the performance of services for Company hereunder; <U>provided</U>, <U>however</U>, Company
acknowledges that Consultant may perform similar functions and duties for other parties during the term of this Agreement. Consultant
and Company each shall observe and comply with all applicable laws and regulations in effect from time to time in performing this
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
mutual agreement between Company and Consultant, Consultant may from time to time make Consultant&rsquo;s personnel available for
additional projects as requested by Company, including, without limitation, providing personnel to (i) act from time to time as
interim or project-related financial, accounting or administrative staff for Company or (ii) act as special consultants to Company
with respect to (A) seeking, evaluating and negotiating mergers and acquisitions, (B) arranging financing, (C) managing financial
relationships with banks, investment banks, and other institutions, including negotiation of agreements, waivers and consents,
(D) identifying and evaluating strategic alliances, (E) preparing analyses and reports relating to production, development and
operations, (F) conducting competitive and strategic analyses, and (G) evaluating, selecting and assisting in implementation of
management information systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.3pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consultant,
at the request of Company, shall seek out oil and gas assets and properties, equipment and other assets related to the business
of the Company (the &ldquo;<I>Assets</I>&rdquo;) for acquisition and assist in finding financing for the Assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.3pt; text-align: justify; text-indent: 31.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consultant
agrees that any items developed, created or produced by Consultant in the scope of providing the services hereunder (&ldquo;<I>Work
Product</I>&rdquo;) will be the sole and exclusive property of Company. All elements in the Work Product that are protected by
copyright are &ldquo;works made for hire&rdquo; for which the Company is the &ldquo;author&rdquo; (as such first quoted term is
defined by and such second quoted term given meaning by the United States Copyright Act of 1976, as amended). The Company will
exclusively own the copyright in all such works upon their creation. To the extent that any aspect of such Work Product is found
as a matter of law not to be a &ldquo;work made for hire&rdquo; as contemplated above, Consultant hereby irrevocably and unconditionally
assigns to Company all right, title, and interest worldwide in and to the Work Product and all intellectual property rights thereto.
Consultant understands and agrees that Consultant has no right to use the Work Product except as necessary to perform the services
for the Company. At Company&rsquo;s request, Consultant will, and will cause its employees and agents to, (a)&nbsp;cooperate with
and assist Company, both during and after the term of this Agreement, in perfecting, maintaining, protecting, and enforcing Company&rsquo;s
rights in the Work Product, and (b)&nbsp;execute and deliver to Company any documents deemed necessary or appropriate by Company
in its discretion to perfect, maintain, protect, or enforce Company&rsquo;s rights in the Work Product or otherwise carry out the
purpose of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Management
Fees</B>. As consideration for Consultant&rsquo;s services hereunder, Company shall pay to Consultant the collective amounts (&ldquo;<I>Management
Fees</I>&rdquo;) set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the services set forth in Section 2(a) above, Company shall pay Consultant a fee equal to $12,000 per month, which shall be paid
monthly in advance in cash, and two percent (2%) of the maximum amount of the Notes less any amounts outstanding under the Purchase
Agreement, which amount shall be paid monthly in arrears on the final day of each month in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
any services set forth in Section 2(b) above, Company shall also provide Consultant with Warrant Stock as provided in the Warrant
Agreement dated July 3, 2012, between the Company and the Consultant, a copy of which is attached hereto as <U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Expenses</B>.
Company shall reimburse Consultant for all reasonable out-of-pocket expenses incurred by Consultant in connection with Consultant&rsquo;s
performance of this Agreement, including without limitation any out of pocket expenses related to services provided specifically
to the Company and its affiliates, provided that any out-of-pocket expenses in excess of $10,000 shall be preapproved in writing
by the Company. Without limiting the generality of the foregoing, Company shall pay (and if paid by Consultant, then Consultant
shall be reimbursed by Company) for all out of pocket expenses reasonably incurred by Consultant or Company in connection with
(i) outside legal and related expenses incurred by Consultant in connection with the Company&rsquo;s and its business; (ii) any
expenses incurred by Consultant on behalf of Company other than in the ordinary course of its business; (iii) expenses incurred
to prosecute and defend claims against Company and to; and (iv) travel expenses incurred by Consultant in connection with the performance
of its obligations hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Consultant
Status</B>. Consultant shall provide advice and services hereunder as an independent contractor. No employer-employee relationship
shall exist or be deemed to exist between Company and Consultant or Consultant&rsquo;s agents as a result of or in connection with
this Agreement. Company shall not withhold employment or income taxes from payments to Consultant and Consultant shall hold Company
harmless from and against any tax liability incurred by Consultant arising out of or resulting from this Agreement. Company shall
furnish to Consultant annually, within the time period prescribed by law, Internal Revenue Service Form 1099 with respect to Management
Fees paid hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Indemnification</B>.
Consultant shall have no liability to Company for any advice or services rendered or information disseminated hereunder except
liability that may arise as a result of the breach or inaccuracy of any covenants or representations of Consultant contained in
this Agreement, or Consultant&rsquo;s willful misconduct or gross negligence. Company shall indemnify and hold harmless Consultant,
its officers, managers, employees and stockholders from and against any and all losses, liabilities, expenses (including, without
limitation, legal fees and disbursements), claims, liens and other obligations that Consultant may suffer or incur as a result
of or in connection with this Agreement, except to the extent caused by Consultant&rsquo;s willful misconduct or gross negligence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Confidentiality</B>.
Consultant shall not disclose to any person and shall cause Consultant&rsquo;s agents providing services hereunder not to disclose,
(except in connection with the performance of its or their services hereunder, if ordered to do so by a court of competent jurisdiction
or with the written authority of Company) any Confidential Information. As used herein, the term &ldquo;<I>Confidential Information</I>&rdquo;
means any and all information related to the Company&rsquo;s business (including trade secrets, technical information, business
forecasts and strategies, marketing plans, customer and supplier lists, personnel information, financial data, and proprietary
information of third parties provided to Company in confidence) that is labeled or identified as &ldquo;confidential&rdquo; or
&ldquo;proprietary&rdquo; or that Consultant otherwise knows, the Company considers to be confidential or proprietary or the Company
has a duty to treat as confidential. Confidential Information does not include (a)&nbsp;information known in general to Consultant&rsquo;s
profession, or that becomes known thereafter, through no fault of Consultant, (b)&nbsp;information that was lawfully in Consultant&rsquo;s
possession before the Company&rsquo;s first disclosure to Consultant, or (c)&nbsp;information obtained lawfully and in good faith
from a third party free of any confidentiality duties or obligations. Consultant will protect the Confidential Information from
unauthorized use, access, or disclosure in the same manner as Consultant protects its own confidential or proprietary information
of a similar nature and with no less than the greater of reasonable care and industry-standard care. Consultant will not disclose
to Company, will not bring into Company&rsquo;s facilities, and will not induce Company to use any confidential or proprietary
information of any third party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Miscellaneous</B>.
This Agreement contains the entire understanding of the parties and may be amended only by a writing signed by both parties hereto.
This Agreement may not be assigned by Company or Consultant without the prior written consent of the other and shall be binding
upon each party&rsquo;s successors, permitted assigns and legal representatives. All notices and communications hereunder shall
be in writing, effective upon receipt and sent by certified mail, return receipt requested, or confirmed facsimile, or national
overnight courier service to the address of the receiving party set forth herein or provided from time to time by either party
in accordance with this notice provision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Governing
Law; Jurisdiction</B>. This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship
of the parties and/or the interpretation and enforcement of the rights and duties of the parties shall be governed by and construed
in accordance with the laws of the State of New Yorkwithout giving effect to any principles regarding conflicts of law. Any dispute,
controversy or claim (&ldquo;<U>Dispute</U>&rdquo;) arising out of, relating to or in connection with this Agreement, including
any question regarding its existence, validity or termination, or regarding a breach hereof which cannot be resolved by good faith
discussions among the parties within thirty (30) days (or such longer period as may be agreed by the parties) shall be referred
by any party to, and shall finally settled by, arbitration under and in accordance with the Commercial Arbitration Rules of the
American Arbitration Association (the &ldquo;<U>Rules</U>&rdquo;). A Dispute shall be deemed arisen when any party to this Agreement
notifies the other party involved in the Dispute in writing to that effect. The place of arbitration shall be New York, New York,
and the award shall be deemed to have been made there. The decision of the arbitrator shall be final and binding on the parties
involved in the Dispute, and judgment thereon may be entered in any court having jurisdiction for its enforcement. In connection
with such enforcement, each party hereto submits to the non-exclusive jurisdiction of the courts of New York, waives any objections
to venue in such courts and, to the extent necessary to accomplish the foregoing, agrees to enter into such agreements as are necessary
to appoint an agent for the service of process in connection with such an enforcement action. The costs of the arbitration proceedings
shall be borne according to the arbitration award. However, each party hereto that is party to the Dispute shall bear its own costs,
including costs regarding its own witnesses, expert witnesses, translators and attorneys, as well as such expert witnesses, translators
and attorneys&rsquo; fees, regardless of which party prevails. The parties to any such arbitration shall request confidential treatment
of the arbitration to the maximum permissible extent. The provisions of this Section 9 shall survive the dissolution of either
party and/or the termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signature page follows.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold">AMERICAN PETRO-HUNTER INC.</TD>
    <TD STYLE="text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold">ASYM MANAGEMENT LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; text-autospace: none; padding-bottom: 1pt">By:</TD>
    <TD STYLE="width: 44%; text-autospace: none; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 4%; text-autospace: none; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 4%; text-autospace: none; padding-bottom: 1pt">By:</TD>
    <TD STYLE="width: 44%; text-autospace: none; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Robert B. McIntosh</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Greg Imbruce</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">President and Chief Executive Officer</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">President</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.9
<SEQUENCE>10
<FILENAME>v318014_ex10-9.htm
<DESCRIPTION>EXHIBIT 10.9
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 28%">WHEN RECORDED RETURN TO:</TD>
    <TD STYLE="width: 72%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NOTICE OF CONFIDENTIALITY RIGHTS:
IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER&rsquo;S LICENSE NUMBER.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">MORTGAGE, DEED OF TRUST, ASSIGNMENT
OF<BR>
PRODUCTION, SECURITY AGREEMENT, FIXTURE FILING AND FINANCING<BR>
STATEMENT<BR>
<BR>
<B>FROM<BR>
<BR>
AMERICAN PETRO-HUNTER INC.</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><BR>
<B>TO<BR>
<BR>
ASYM ENERGY OPPORTUNITIES LLC</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>A CARBON, PHOTOGRAPHIC, FACSIMILE OR
OTHER REPRODUCTION OF THIS INSTRUMENT IS SUFFICIENT AS A FINANCING STATEMENT.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>A POWER OF SALE HAS BEEN GRANTED
IN THIS INSTRUMENT. IN CERTAIN STATES, A POWER OF SALE MAY ALLOW THE MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT
GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE MORTGAGOR UNDER THIS INSTRUMENT.</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THIS INSTRUMENT CONTAINS AFTER-ACQUIRED
PROPERTY PROVISIONS.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THIS INSTRUMENT SECURES PAYMENT OF FUTURE
ADVANCES.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THIS INSTRUMENT COVERS PROCEEDS OF MORTGAGED
PROPERTY.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THIS INSTRUMENT COVERS AS EXTRACTED
COLLATERAL, MINERALS AND OTHER SUBSTANCES OF VALUE WHICH MAY BE EXTRACTED FROM THE EARTH (INCLUDING WITHOUT LIMITATION OIL AND
GAS) AND ACCOUNTS RESULTING FROM THE SALE OF AS EXTRACTED COLLATERAL. THIS FINANCING STATEMENT IS TO BE RECORDED OR FILED FOR RECORD,
AMONG OTHER PLACES, IN THE REAL ESTATE RECORDS OR SIMILAR RECORDS OF THE COUNTY RECORDERS OF THE COUNTIES LISTED ON <U>EXHIBIT
A</U> HERETO. THE MORTGAGOR HAS AN INTEREST OF RECORD IN THE REAL ESTATE CONCERNED, WHICH INTEREST IS DESCRIBED IN <U>EXHIBIT A</U>
ATTACHED HERETO.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PORTIONS OF THE MORTGAGED PROPERTY ARE
GOODS WHICH ARE OR ARE TO BECOME AFFIXED TO OR FIXTURES ON THE LAND DESCRIBED IN OR REFERRED TO IN <U>EXHIBIT A</U> HERETO. THIS
FINANCING STATEMENT IS TO BE FILED FOR RECORD OR RECORDED, AMONG OTHER PLACES, IN THE REAL ESTATE RECORDS OR SIMILAR RECORDS OF
EACH COUNTY IN WHICH SAID LAND OR ANY PORTION THEREOF IS LOCATED. THE MORTGAGOR IS THE OWNER OF RECORD INTEREST IN THE REAL ESTATE
CONCERNED. THIS INSTRUMENT IS ALSO TO BE INDEXED IN THE INDEX OF FINANCING STATEMENTS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD COLSPAN="2">ARTICLE I&nbsp; Grant of Lien and Indebtedness Secured</TD>
    <TD STYLE="text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="width: 21%; padding-left: 0.5in">Section 1.01</TD>
    <TD STYLE="width: 72%">Grant of Liens</TD>
    <TD STYLE="width: 7%; text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 1.02</TD>
    <TD>Grant of Security Interest</TD>
    <TD STYLE="text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 1.03</TD>
    <TD>Indebtedness Secured</TD>
    <TD STYLE="text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 1.04</TD>
    <TD>Fixture Filing, Etc</TD>
    <TD STYLE="text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 1.05</TD>
    <TD>Defined Terms</TD>
    <TD STYLE="text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2">ARTICLE II&nbsp; Assignment of Production, Accounts and Proceeds</TD>
    <TD STYLE="text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 2.01</TD>
    <TD>Assignment</TD>
    <TD STYLE="text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 2.02</TD>
    <TD>[Reserved]</TD>
    <TD STYLE="text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 2.03</TD>
    <TD>No Modification of Payment Obligations</TD>
    <TD STYLE="text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 2.04</TD>
    <TD>Effectuating Payment of Production Proceeds to Mortgagee</TD>
    <TD STYLE="text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 2.05</TD>
    <TD>Application of Production Proceeds</TD>
    <TD STYLE="text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 2.06</TD>
    <TD>Release from Liability; Indemnification</TD>
    <TD STYLE="text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2">ARTICLE III Representations, Warranties and Covenants</TD>
    <TD STYLE="text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.01</TD>
    <TD>[Reserved]</TD>
    <TD STYLE="text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.02</TD>
    <TD>Defend Title</TD>
    <TD STYLE="text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.03</TD>
    <TD>Not a Foreign Person</TD>
    <TD STYLE="text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.04</TD>
    <TD>Taxes, Insurance and Fees</TD>
    <TD STYLE="text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.05</TD>
    <TD>Operation By Third Parties</TD>
    <TD STYLE="text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.06</TD>
    <TD>Failure to Perform</TD>
    <TD STYLE="text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.07</TD>
    <TD>Sale,&nbsp;Encumbrance&nbsp;or&nbsp;Removal</TD>
    <TD STYLE="text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.08</TD>
    <TD>Sale of Production</TD>
    <TD STYLE="text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.09</TD>
    <TD>Operation of Mortgaged Property</TD>
    <TD STYLE="text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.10</TD>
    <TD>[Reserved]</TD>
    <TD STYLE="text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.11</TD>
    <TD>Environmental.</TD>
    <TD STYLE="text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.12</TD>
    <TD>Not Abandon Wells; Participate in Operations</TD>
    <TD STYLE="text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.13</TD>
    <TD>Condemnation Awards</TD>
    <TD STYLE="text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.14</TD>
    <TD>Insurance</TD>
    <TD STYLE="text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.15</TD>
    <TD>Compliance with&nbsp;Leases</TD>
    <TD STYLE="text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.16</TD>
    <TD>Further Assurance</TD>
    <TD STYLE="text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.17</TD>
    <TD>Name and Place of Business</TD>
    <TD STYLE="text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 3.18</TD>
    <TD>[Reserved]</TD>
    <TD STYLE="text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 3.19</TD>
    <TD>Inspection;&nbsp;Management</TD>
    <TD STYLE="text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD COLSPAN="2">ARTICLE IV&nbsp; Rights and Remedies</TD>
    <TD STYLE="text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.01</TD>
    <TD>Event of Default</TD>
    <TD STYLE="text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 4.02</TD>
    <TD>Foreclosure and Sale</TD>
    <TD STYLE="text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.03</TD>
    <TD>Agents</TD>
    <TD STYLE="text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 4.04</TD>
    <TD>Judicial Foreclosure; Receivership</TD>
    <TD STYLE="text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.05</TD>
    <TD>Foreclosure for Installments</TD>
    <TD STYLE="text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 4.06</TD>
    <TD>Separate Sales</TD>
    <TD STYLE="text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.07</TD>
    <TD>Possession of Mortgaged Property</TD>
    <TD STYLE="text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 4.08</TD>
    <TD>Occupancy After Foreclosure</TD>
    <TD STYLE="text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.09</TD>
    <TD>Remedies Cumulative, Concurrent and Nonexclusive</TD>
    <TD STYLE="text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 4.10</TD>
    <TD>No Release of Obligations</TD>
    <TD STYLE="text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.11</TD>
    <TD>Release of and Resort to Collateral</TD>
    <TD STYLE="text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 4.12</TD>
    <TD>Waiver of Redemption, Notice and Marshalling of Assets, Etc</TD>
    <TD STYLE="text-align: right">18</TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="width: 21%; padding-left: 0.5in">Section 4.13</TD>
    <TD STYLE="width: 72%">Discontinuance of Proceedings</TD>
    <TD STYLE="width: 7%; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.14</TD>
    <TD>Application of Proceeds</TD>
    <TD STYLE="text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 4.15</TD>
    <TD>Resignation of Operator</TD>
    <TD STYLE="text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 4.16</TD>
    <TD>Indemnity</TD>
    <TD STYLE="text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2">ARTICLE V. Trustee</TD>
    <TD STYLE="text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 5.01</TD>
    <TD>Duties, Rights, and Powers of Trustee</TD>
    <TD STYLE="text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 5.02</TD>
    <TD>Successor Trustee</TD>
    <TD STYLE="text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 5.03</TD>
    <TD>Retention of Moneys</TD>
    <TD STYLE="text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD COLSPAN="2">ARTICLE VI&nbsp; Miscellaneous</TD>
    <TD STYLE="text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.01</TD>
    <TD>Instrument Construed as Mortgage, Etc</TD>
    <TD STYLE="text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.02</TD>
    <TD>Release of Mortgage</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.03</TD>
    <TD>Severability</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.04</TD>
    <TD>Successors and Assigns of Parties</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.05</TD>
    <TD>Satisfaction of Prior Encumbrance</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.06</TD>
    <TD>Subrogation of Trustee</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.07</TD>
    <TD>Nature of Covenants</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.08</TD>
    <TD>Notices</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.09</TD>
    <TD>Counterparts</TD>
    <TD STYLE="text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.10</TD>
    <TD>Effective as a Financing Statement</TD>
    <TD STYLE="text-align: right">22</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.11</TD>
    <TD>No Impairment of Security</TD>
    <TD STYLE="text-align: right">22</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.12</TD>
    <TD>Acts Not Constituting Waiver</TD>
    <TD STYLE="text-align: right">22</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.13</TD>
    <TD>Mortgagor&rsquo;s Successors</TD>
    <TD STYLE="text-align: right">23</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.16</TD>
    <TD>Exculpation Provisions</TD>
    <TD STYLE="text-align: right">23</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.17</TD>
    <TD>FINAL AGREEMENT</TD>
    <TD STYLE="text-align: right">23</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.18</TD>
    <TD>Subrogation; Prior Mortgages</TD>
    <TD STYLE="text-align: right">24</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.19</TD>
    <TD>Compliance with Usury Laws</TD>
    <TD STYLE="text-align: right">24</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Section 6.20</TD>
    <TD>Certain Obligations of Mortgagor</TD>
    <TD STYLE="text-align: right">24</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.5in">Section 6.21</TD>
    <TD>Authority of Mortgagee</TD>
    <TD STYLE="text-align: right">24</TD></TR>
</TABLE>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>FIRST LIEN MORTGAGE, DEED OF TRUST,
ASSIGNMENT OF<BR>
PRODUCTION, SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This <B>FIRST LIEN</B>
<B>MORTGAGE, DEED OF TRUST, ASSIGNMENT OF PRODUCTION, SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT </B>(this &ldquo;<U>Mortgage</U>&rdquo;)
is entered into as of the Effective Date (as hereinafter defined) by AMERICAN PETRO-HUNTER, a Nevada corporation whose address
for notice is 17470 North Pacesetter Way, Scottsdale, AZ 85255 (&ldquo;<U>Mortgagor</U>&rdquo;), and ASYM ENERGY OPPORTUNITIES
LLC, a Delaware limited liability company, whose address for notice is 1055 Washington Boulevard, Suite 410, Stamford, CT 06901,
Attention: Greg Imbruce, acting in its capacity as lender (together with its successors and assigns in such capacity, &ldquo;<U>Mortgagee</U>&rdquo;).</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to that certain Purchase Agreement and Security Agreement dated as of June ___, 2012, by and among Mortgagee, (the &ldquo;<U>Borrower</U>&rdquo;)
and the Mortgagee, and as the same may be further amended, restated, modified or supplemented and in effect from time to time,
the &ldquo;<U>Purchase Agreement</U>&rdquo;), the Borrower, has, among other things, issued to Mortgagee that certain Senior Secured
Prmissory, dated as of June ___, 2012, in the maximum amount of $10,000,000, payable to the order of Mortgagee (the &ldquo;<U>Note</U>&rdquo;),
subject to the terms and conditions set forth in the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Amendment No. 2, the Mortgagee, has, among other things, agreed to loan $300,000 to the Mortgagor, and the Mortgagor, has, among
other things, agreed to issue to Mortgagee that certain Senior Secured Promissory Note, dated as of June __, 2012, in the maximum
amount of $300,000, payable to the order of Mortgagee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagor
has agreed that all of the Indebtedness (as defined in <U>Section 1.03</U> hereof) is intended to be secured in part by this Mortgage
and recorded in those jurisdictions as set forth on <U>Exhibit&nbsp;A</U> of this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
entering into of the Purchase Agreement by Mortgagee and the satisfaction of its obligations thereunder are conditioned upon the
execution and delivery by Mortgagor of this Mortgage, and Mortgagor has agreed to enter into this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THEREFORE, in order
to comply with the terms and conditions of the Purchase Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Mortgagor hereby agrees with Mortgagee as follows:</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">&nbsp;</FONT></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">ARTICLE
I<BR>
</FONT><U>Grant of Lien and Indebtedness Secured</U></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grant
of Liens</U>. To secure payment of the Indebtedness and the performance of the covenants and obligations herein contained and
contained in the Purchase Agreement and any other Loan Document (as defined below) to which Mortgagor is a party, Mortgagor does
by these presents hereby GRANT, BARGAIN, SELL, ASSIGN, MORTGAGE, PLEDGE, HYPOTHECATE, TRANSFER and CONVEY unto Mortgagee and Mortgagee&rsquo;s
successors and substitutes in trust hereunder, WITH A POWER OF SALE, for the use and benefit of Mortgagee (on its behalf and on
behalf of the Purchasers), the real and personal property, rights, titles, interests and estates described in the following paragraphs
(a) through (l) (collectively called the &ldquo;<U>Mortgaged Property</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
rights, titles, interests and estates now owned or hereafter acquired by Mortgagor in and to the oil and gas leases and/or oil,
gas and other mineral leases, other mineral properties, mineral servitudes and/or mineral rights, operating rights, royalty interests,
net profits interests, net revenue interests, overriding royalty interests and other interests and estates and the lands and premises
covered or affected thereby which are described on <U>Exhibit&nbsp;A</U> hereto without regard to any limitations as to specific
lands or depths that may be set forth in <U>Exhibit A</U> (collectively called the &ldquo;<U>Hydrocarbon Property</U>&rdquo;) or
which Hydrocarbon Property is otherwise referred to herein, and specifically, but without limitation, the undivided interests of
Mortgagor which are more particularly described on attached <U>Exhibit A</U>.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
rights, titles, interests and estates now owned or hereafter acquired by Mortgagor in and to (i)&nbsp;the properties now or hereafter
pooled or unitized with any Hydrocarbon Property; (ii)&nbsp;all presently existing or future unitization, communitization, pooling
agreements and designations, orders or declarations of pooled units and the units created thereby (including, without limitation,
all units created under orders, regulations, rules or other official acts of any federal, state or other governmental body or agency
having jurisdiction and any units created solely among working interest owners pursuant to operating agreements or otherwise) which
may affect all or any portion of the Hydrocarbon Property including, without limitation, those units which may be described or
referred to on attached <U>Exhibit&nbsp;A</U>; (iii)&nbsp;the APA, all operating agreements, production sales or other contracts,
processing agreements, transportation agreements, gas balancing agreements, farmout agreements, farm-in agreements, salt water
disposal agreements, area of mutual interest agreements, equipment leases and other agreements described or referred to in this
Mortgage or which relate to any of the Hydrocarbon Property or interests in the Hydrocarbon Property described or referred to herein
or on attached <U>Exhibit&nbsp;A</U> or to the production, sale, purchase, exchange, processing, handling, storage, transporting
or marketing of the Hydrocarbons (as defined in <U>Section 1.01(c)</U> hereof) from or attributable to such Hydrocarbon Property
or interests; (iv) all geological, geophysical, engineering, accounting, title, legal, and other technical or business data concerning
the Hydrocarbon Property, the Hydrocarbons, or any other item of Hydrocarbon Property which are in the possession of Mortgagor
or in which Mortgagor can otherwise grant a security interest, and all books, files, records, magnetic media, computer records,
and other forms of recording or obtaining access to such data; and (v)&nbsp;the Hydrocarbon Property described on attached <U>Exhibit&nbsp;A</U>
and covered by this Mortgage even though Mortgagor&rsquo;s interests therein be incorrectly described or a description of a part
or all of such Hydrocarbon Property or Mortgagor&rsquo;s interests therein be omitted; it being intended by Mortgagor and Mortgagee
herein to cover and affect hereby all interests which Mortgagor may now own or may hereafter acquire in and to the Hydrocarbon
Property notwithstanding that the interests as specified on <U>Exhibit&nbsp;A</U> may be limited to particular lands, specified
depths or particular types of property interests.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
rights, titles, interests and estates now owned or hereafter acquired by Mortgagor in and to all oil, gas, casinghead gas, condensate,
distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined therefrom and all other minerals (collectively called
the &ldquo;<U>Hydrocarbons</U>&rdquo;) in and under and which may be produced and saved from or attributable to the Hydrocarbon
Property, the lands pooled or unitized therewith and Mortgagor&rsquo;s interests therein, including all oil in tanks and all rents,
issues, profits, proceeds, products, revenues and other income from or attributable to the Hydrocarbons, the Hydrocarbon Property,
the lands pooled or unitized therewith and Mortgagor&rsquo;s interests therein.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
tenements, hereditaments, appurtenances and properties in anywise appertaining, belonging, affixed or incidental to the Hydrocarbon
Property, and any and all rights, titles, interests and estates described or referred to in paragraphs (a) and (b) above, which
are now owned or which may hereafter be acquired by Mortgagor, including, without limitation, any and all property, real or personal,
now owned or hereafter acquired and situated upon, used, held for use, or useful in connection with the operating, working, extraction,
treatment, marketing, gathering, transmission or development of any of such Hydrocarbon Property or the lands pooled or unitized
therewith or the Hydrocarbons and including any and all oil wells, gas wells, injection wells, water wells or other wells, buildings,
structures, field separators, liquid extraction plants, plant compressors, pumps, pumping units, pipelines, sales and flow lines,
gathering systems, field gathering systems, salt water disposal facilities, tanks and tank batteries, fixtures, valves, fittings,
machinery and parts, engines, boilers, meters, apparatus, goods, inventory, equipment, appliances, tools, implements, cables, wires,
towers, casing, tubing and rods, surface leases, rights-of-way, easements, servitudes, licenses and other surface and subsurface
rights together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing properties.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
property that may from time to time hereafter, by delivery or by writing of any kind, be subjected to the lien and security interest
hereof by Mortgagor or by anyone on Mortgagor&rsquo;s behalf; and Mortgagee is hereby authorized to receive the same at any time
as additional security hereunder.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the rights, titles and interests of every nature whatsoever now owned or hereafter acquired by Mortgagor in and to the Hydrocarbon
Property rights, titles, interests and estates and every part and parcel thereof, including, without limitation, the Hydrocarbon
Property rights, titles, interests and estates as the same may be enlarged by the discharge of any payments out of production or
by the removal of any charges or encumbrances to which any of the Hydrocarbon Property rights, titles, interests or estates are
subject, or otherwise; all rights of Mortgagor to liens and security interests securing payment of proceeds from the sale of production
from the Mortgaged Property, including, but not limited to, those liens and security interests provided in &sect;9.343 of the Applicable
UCC, as amended from time to time, any other statute enacted in the jurisdiction in which the Hydrocarbon Property is located or
statute made applicable to the Hydrocarbon Property under federal law (or some combination of federal and state law); together
with any and all renewals and extensions of any of the Hydrocarbon Property rights, titles, interests or estates; all contracts
and agreements supplemental to or amendatory of or in substitution for the contracts and agreements described or mentioned above;
and any and all additional interests of any kind hereafter acquired by Mortgagor in and to the Hydrocarbon Property rights, titles,
interests or estates.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
accounts, contract rights, inventory, choses in action (i.e., rights to enforce contracts or to bring claims thereunder), commercial
tort claims, general intangibles, insurance contracts and insurance proceeds (regardless of whether the same arose, and/or the
events which gave rise to the same occurred, on or before or after the date hereof) and all proceeds and products of all such portions
of the Hydrocarbon Property or the Hydrocarbons and payments in lieu of production, whether such proceeds or payments are goods,
money, documents, instruments, chattel paper, securities, accounts, general intangibles, fixtures, real property, or other assets
and regardless of whether such payments accrued, and/or the events which gave rise to such payments occurred, on or before or after
the date hereof, including, without limitation, &ldquo;take or pay&rdquo; payments and similar payments, payments received in settlement
of or pursuant to a judgment rendered with respect to take or pay or similar obligations or other obligations under a production
sales contract, payments received in buyout or buydown or other settlement of a production sales contract, and payments received
under a gas balancing or similar agreement as a result of (or received otherwise in settlement of or pursuant to judgment rendered
with respect to) rights held by Mortgagor as a result of Mortgagor (and/or its predecessors in title) taking or having taken less
gas from lands covered by a Hydrocarbon Property (or lands pooled or unitized therewith) than its ownership of such Hydrocarbon
Property would entitle it to receive.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without
limitation of the generality of the foregoing, any rights and interests of Mortgagor under any present or future hedge or swap
agreements, caps, floors, collars, exchanges, forwards or other hedge or protection agreements or transactions relating to crude
oil, natural gas or other Hydrocarbons, or any option with respect to any such agreement or transaction now existing or hereafter
entered into by or on behalf of Mortgagor.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
licenses, permits and other regulatory approvals held by Mortgagor relating to the Mortgaged Property.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
proceeds of all of the rights, titles and interests of Mortgagor described in the foregoing paragraphs (a) through (i), regardless
of whether such proceeds or payments are goods, money, documents, instruments, chattel paper, securities, accounts, payment intangibles,
general intangibles, fixtures, real/immovable property, personal/movable property or other assets.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the rights granted to Mortgagee in <U>Section&nbsp;1.01(f)</U> of this Mortgage, any and all liens, security interests,
financing statements or similar interests of Mortgagor attributable to its interest in the Hydrocarbons and proceeds of runs therefrom
arising under or created by any statutory provision, judicial decision or otherwise.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of Mortgagor&rsquo;s rights and interests pursuant to the provisions of &sect; 9.343 of the Applicable UCC and of any similar state
or local jurisdiction statute in any state wherein the Mortgaged Property is located, hereby vesting in Mortgagee all of Mortgagor&rsquo;s
rights as an interest owner to the continuing security interest in and liens upon the Mortgaged Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any fractions or percentages
specified on attached <U>Exhibit&nbsp;A</U> in referring to Mortgagor&rsquo;s interests are solely for purposes of the warranties
made by Mortgagor pursuant to <U>Section 3.05</U> hereof and shall in no manner limit the quantum of interest affected by this
<U>Section&nbsp;1.01</U> with respect to any Hydrocarbon Property or with respect to any unit or well identified on said <U>Exhibit&nbsp;A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">TO HAVE AND TO HOLD
the Mortgaged Property unto Mortgagee and to his successors and assigns forever to secure the payment of the Indebtedness and to
secure the performance of the covenants, agreements, and obligations of Mortgagor herein contained.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grant
of Security Interest</U>. To further secure the Indebtedness, Mortgagor hereby grants to Mortgagee a security interest in and
to the Mortgaged Property (whether now or hereafter acquired by operation of law or otherwise) (subject to the existing Liens)
insofar as the Mortgaged Property consists of equipment, accounts, contract rights, general intangibles, insurance contracts,
insurance proceeds, inventory, Hydrocarbons, fixtures and any and all other personal property of any kind or character defined
in and subject to the provisions of the Uniform Commercial Code presently in effect in the jurisdiction in which the Mortgaged
Property is situated (&ldquo;<U>Applicable UCC</U>&rdquo;), including the proceeds and products from any and all of such personal
property. Upon the happening of any of the Events of Default (as defined in <U>Section 4.01</U> hereof), Mortgagee is and shall
be entitled to all of the rights, powers and remedies afforded a secured party by the Applicable UCC with reference to the personal
property and fixtures in which Mortgagee has been granted a security interest herein, or Mortgagee may proceed as to both the
real and personal property covered hereby in accordance with the rights and remedies granted under this Mortgage in respect of
the real property covered hereby. Such rights, powers and remedies shall be cumulative and in addition to those granted to Mortgagee
under any other provision of this Mortgage or under any other security instrument. Written notice mailed to Mortgagor as provided
herein at least ten (10) business days prior to the date of public sale of any part of the Mortgaged Property which is personal
property subject to the provisions of the Applicable UCC, or prior to the date after which private sale of any such part of the
Mortgaged Property will be made, shall constitute reasonable notice. Except as otherwise expressly provided in this Mortgage,
all terms in this Mortgage relating to the Mortgaged Property and the grant of the foregoing security interest which are defined
in the Applicable UCC shall have the meanings assigned to them in Article 9 (or, absent definition in Article 9, in any other
Article) of the Applicable UCC, as those meanings may be amended, revised or replaced from time to time. Notwithstanding the foregoing,
the parties intend that the terms used herein which are defined in the Applicable UCC have, at all times, the broadest and most
inclusive meanings possible.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indebtedness
Secured</U>. This Mortgage is executed and delivered by Mortgagor to secure and enforce the following (the &ldquo;<U>Indebtedness</U>&rdquo;):</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
obligations, liabilities and indebtedness of every nature of Mortgagor from time to time owed or owing under or in respect of this
Mortgage, the Purchase Agreement, the Security Agreement, the Note, and any other Security Instrument (as defined in the Purchase
Agreement), as the case may be, including without limitation the principal amount of all debts, claims and indebtedness, accrued
and unpaid interest and all fees, costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore,
now and/or from time to time hereafter owing, due or payable whether before or after the filing of a bankruptcy, insolvency or
similar proceeding under applicable federal, state, foreign or other law and any other amounts that be loaned from time to time
by the Mortgagee to the Mortgagor.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without
limiting the generality of the foregoing, all post-petition interest, expenses and other duties and liabilities with respect to
indebtedness, liabilities or other obligations described above in this <U>Section 1.03</U>, which would be owed but for the fact
that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fixture
Filing, Etc.</U> Without in any manner limiting the generality of any of the other provisions of this Mortgage: (i)&nbsp;some
portions of the goods described or to which reference is made herein are or are to become fixtures on the land described or to
which reference is made herein or on attached <U>Exhibit&nbsp;A</U>; (ii)&nbsp;the security interests created hereby under applicable
provisions of the Applicable UCC will attach to Hydrocarbons (minerals including oil and gas), as extracted collateral or the
accounts resulting from the sale thereof at the wellhead or minehead located on the land described or to which reference is made
herein; (iii)&nbsp;this Mortgage is to be filed of record in the real estate records as a financing statement; and (iv) Mortgagor
is the record owner of the real estate or interests in the real estate comprised of the Mortgaged Property.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Defined
Terms</U>. Any capitalized term used in this Mortgage and not defined in this Mortgage shall have the meaning assigned to such
term in the Purchase Agreement.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">&nbsp;</FONT></P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">ARTICLE
II<BR>
</FONT><U>Assignment of Production, Accounts and Proceeds</U></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
Mortgagor does hereby absolutely and unconditionally assign, transfer and convey unto Mortgagee, its successors and assigns, all
of the Hydrocarbons and all products obtained or processed therefrom, and the revenues and proceeds now and hereafter attributable
to the Hydrocarbons and said products and all accounts arising therefrom or in connection therewith and all payments in lieu of
the Hydrocarbons such as &ldquo;take or pay&rdquo; payments or settlements (all of the foregoing, the &ldquo;<U>Production Proceeds</U>&rdquo;),
together with the immediate and continuing right to collect and receive such Production Proceeds. The Hydrocarbons and products
are to be delivered into pipe lines connected with the Mortgaged Property, or to the purchaser thereof, to the credit of Mortgagee
(to the extent of the Mortgagor&rsquo;s interest therein); and all such Production Proceeds shall be paid directly to a deposit
account subject to a deposit account control agreement, in form and substance acceptable to Mortgagee, among Mortgagor, Mortgagee
and the applicable financial institution where the deposit account is maintained, with no duty or obligation of any party paying
the same to inquire into the rights of Mortgagee to receive the same, what application is made thereof, or as to any other matter.
Mortgagor directs and instructs any and all purchasers of any Hydrocarbons to pay to such deposit accounts all of the Production
Proceeds accruing to Mortgagor&rsquo;s interest until such time as such purchasers have been furnished with evidence that all Indebtedness
has been paid in full in cash and that this Mortgage has been released. Mortgagor agrees that no purchasers of the Hydrocarbons
shall have any responsibility for the application of any funds paid to Mortgagee. Mortgagor agrees to perform all such acts, and
to execute all such further assignments, transfer orders and division orders, and other instruments as may be required or desired
by Mortgagee or any party in order to have the Production Proceeds paid to Mortgagee. Upon the occurrence and during the continuance
of an Event of Default, Mortgagee is fully authorized to receive and receipt for the Production Proceeds; to endorse and cash any
and all checks and drafts payable to the order of Mortgagor or Mortgagee for the account of Mortgagor received from or in connection
with the Production Proceeds and to hold the Production Proceeds in a bank account as additional collateral securing the Indebtedness;
and to execute transfer and division orders in the name of Mortgagor, or otherwise, with warranties binding Mortgagor. All Production
Proceeds received by Mortgagee pursuant to this assignment shall be applied as provided in the other Loan Documents. Mortgagee
shall not be liable for any delay, neglect or failure to effect collection of any Production Proceeds or to take any other action
in connection therewith or hereunder; but Mortgagee shall have the right, exercisable at its election at any time after an Event
of Default has occurred and is continuing, in the name of Mortgagor or otherwise, to prosecute and defend any and all actions or
legal proceedings deemed advisable by Mortgagee in order to collect such funds and to protect the interests of Mortgagee and/or
Mortgagor, with all costs, expenses and attorneys&rsquo; fees incurred in connection therewith being paid by Mortgagor and until
so paid being a part of the Indebtedness secured by this Mortgage. Mortgagor agrees to perform all such acts, and to execute all
such further assignments, transfer orders and division orders, letters-in-lieu and other instruments as may be required or desired
by Mortgagee or any party in order to effectuate the provisions contained in this <U>Section 2.01</U>. Mortgagor hereby appoints
Mortgagee as its attorney-in-fact to pursue any and all rights of Mortgagor to liens on and security interests in the Hydrocarbons
securing payment of proceeds of runs attributable to the Hydrocarbons, provided Mortgagee shall only be permitted to exercise such
power of attorney granted pursuant to this sentence after the occurrence and during the continuance of an Event of Default. The
power of attorney granted to Mortgagee in this <U>Section 2.01</U>, being coupled with an interest, shall be irrevocable so long
as the Indebtedness or any part thereof remains unpaid.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Reserved].</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Modification of Payment Obligations</U>. Nothing herein contained shall modify or otherwise alter, limit or modify the absolute
obligation of Mortgagor and the other Mortgagor Parties to make prompt payment of all principal, interest and other amounts owing
on the Indebtedness when and as the same become due regardless of whether the Production Proceeds are sufficient to pay the same
and the rights provided in accordance with the foregoing assignment provision shall be cumulative of all other security of any
and every character now or hereafter existing to secure payment of the Indebtedness.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effectuating
Payment of Production Proceeds to Mortgagee</U>. If under any existing sales agreements, other than division orders or transfer
orders, any Production Proceeds are required to be paid by the purchaser to Mortgagor so that under such existing agreements payment
cannot be made of such Production Proceeds to Mortgagee, Mortgagor&rsquo;s interest in all Production Proceeds under such sales
agreements and in all other Production Proceeds which for any reason may be paid to Mortgagor shall, when received by Mortgagor,
constitute trust funds in Mortgagor&rsquo;s hands and shall be immediately paid over to Mortgagee. Without limitation upon any
of the foregoing, Mortgagor hereby constitutes and appoints Mortgagee as Mortgagor&rsquo;s special attorney-in-fact (with full
power of substitution, either generally or for such periods or purposes as Mortgagee may from time to time prescribe) in the name,
place and stead of Mortgagor to do any and every act and exercise any and every power that Mortgagor might or could do or exercise
personally with respect to all Hydrocarbons and Production Proceeds expressly inclusive, but not limited to, giving and granting
unto said attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever necessary and requisite
to be done as fully and to all intents and purposes, as Mortgagor might or could do if personally present (provided such power
of attorney granted pursuant to this sentence shall only be exercisable by Mortgagee upon the occurrence and during the continuance
of an Event of Default); and Mortgagor shall be bound thereby as fully and effectively as if Mortgagor had personally executed,
acknowledged and delivered any of the foregoing certificates or documents. The powers and authorities herein conferred upon Mortgagee
may be exercised by Mortgagee through any person who, at the time of the execution of the particular instrument, is an officer
of Mortgagee. The power of attorney herein conferred is granted for valuable consideration and hence is coupled with an interest
and is irrevocable so long as the Indebtedness, or any part thereof, shall remain unpaid or any commitment to lend under the Purchase
Agreement remains outstanding. All persons dealing with Mortgagee or any substitute shall be fully protected in treating the powers
and authorities conferred by this paragraph as continuing in full force and effect until advised by Mortgagee that all the Indebtedness
is fully and totally paid. Mortgagee may, but shall not be obligated to, in accordance with the provisions of <U>Section 2.01</U>
above, take such action as it deems appropriate in an effort to collect the Production Proceeds and any reasonable expenses (including
reasonable attorney&rsquo;s fees) so incurred by Mortgagee shall be a demand obligation of Mortgagor and shall be part of the Indebtedness,
and shall bear interest each day, from the date of such expenditure or payment until paid, at a per annum rate equal to the Past
Due Rate (as such term is defined in the Note).</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Application
of Production Proceeds</U>. The Production Proceeds received by Mortgagee during each calendar month shall be paid directly into
a deposit account in accordance with <U>Section 2.01</U> hereof. After an Event of Default hereunder has occurred, all Production
Proceeds from time to time in the hands of Mortgagee shall be applied to the payment of the Indebtedness at such times and in such
manner and order as Mortgagee determines in Mortgagee&rsquo;s sole and absolute discretion.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release
from Liability; Indemnification</U>. Mortgagee and its successors and assigns are hereby released and absolved from all liability
for failure to enforce collection of the Production Proceeds and from all other responsibility in connection therewith, except
the responsibility to account to Mortgagor for funds actually received. Mortgagor agrees to indemnify, defend and hold harmless
Mortgagee (for purposes of this paragraph, the term &ldquo;Mortgagee&rdquo; shall include the directors, officers, members, managers,
partners, employees and agents of Mortgagee and any persons or entities owned or controlled by or affiliated with Mortgagee and
any other Indemnified Party as defined in <U>Section 4.16</U> hereof) from and against all claims, demands, liabilities, losses,
damages (including without limitation consequential damages), causes of action, judgments, penalties, costs and expenses (including
without limitation reasonable attorneys&rsquo; fees and expenses) imposed upon, asserted against or incurred or paid by Mortgagee
by reason of the assertion that Mortgagee received, either before or after payment in full of the Indebtedness, funds from the
production of oil, gas, other hydrocarbons or other minerals claimed by third persons (and/or funds attributable to sales of production
which were made in violation of laws, rules, regulations and/or orders governing such sales), and Mortgagee shall have the right
to defend against any such claims or actions, employing attorneys of its own selection, and if not furnished with indemnity satisfactory
to it, Mortgagee shall have the right to compromise and adjust any such claims, actions and judgments, and in addition to the rights
to be indemnified as herein provided, all amounts paid by Mortgagee in compromise, satisfaction or discharge of any such claim,
action or judgment, and all court costs, reasonable attorneys&rsquo; fees and other expenses of every character expended by Mortgagee
pursuant to the provisions of this section shall be a demand obligation (which obligation Mortgagor hereby expressly promises to
pay) owing by Mortgagor to Mortgagee and shall bear interest, from the date expended until paid, at a per annum rate equal to the
Past Due Rate. The foregoing indemnities shall not terminate upon the release, foreclosure or other termination of this Mortgage
but will survive the release, foreclosure of this Mortgage or conveyance in lieu of foreclosure, and the repayment of the Indebtedness
and the discharge and release of this Mortgage and the other documents evidencing and/or securing the Indebtedness. <B>WITHOUT
LIMITATION, IT IS THE INTENTION OF MORTGAGOR AND MORTGAGOR AGREES THAT THE FOREGOING RELEASES AND INDEMNITIES SHALL APPLY TO EACH
INDEMNIFIED PARTY WITH RESPECT TO ALL CLAIMS, DEMANDS, LIABILITIES, LOSSES, DAMAGES (INCLUDING WITHOUT LIMITATION CONSEQUENTIAL
DAMAGES), CAUSES OF ACTION, JUDGMENTS, PENALTIES, COSTS AND EXPENSES (INCLUDING WITHOUT LIMITATION REASONABLE ATTORNEYS&rsquo;
FEES AND EXPENSES) WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF SUCH (AND/OR ANY OTHER) INDEMNIFIED
PARTY.</B> However, such indemnities shall not apply to any particular indemnified party (but shall apply to the other indemnified
parties) to the extent the subject of the indemnification is caused by or arises out of the gross negligence or willful misconduct
of such particular indemnified party.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">ARTICLE
III<BR>
</FONT><U>Representations, Warranties and Covenants</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mortgagor hereby represents,
warrants and covenants as follows:</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>[Reserved]</U>.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Defend
Title</U>. This Mortgage is a direct first lien and security interest upon the Mortgaged Property (subject only to Permitted Liens
and the existing Liens) and Mortgagor will not create or suffer to be created or permit to exist any lien, security interest or
charge prior or junior to or on a parity with the lien and security interest of this Mortgage upon the Mortgaged Property or any
part thereof (except Permitted Liens and the existing Liens) or upon the rents, issues, revenues, profits and other income therefrom.
Mortgagor will warrant and defend the title to the Mortgaged Property against the claims and demands of all other persons whomsoever
and will maintain and preserve the lien created hereby so long as any of the Indebtedness secured hereby remains unpaid. Should
an adverse claim be made against or a cloud develop upon the title to any part of the Mortgaged Property, Mortgagor agrees it will
immediately defend against such adverse claim or take appropriate action to remove such cloud at Mortgagor&rsquo;s cost and expense,
and Mortgagor further agrees that Mortgagee may take such other action as they deem advisable to protect and preserve their interests
in the Mortgaged Property, and in such event Mortgagor will indemnify Trustee and Mortgagee against any and all costs, attorney&rsquo;s
fees and other expenses which they may incur in defending against any such adverse claim or taking action to remove any such cloud.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Not
a Foreign Person</U>. Mortgagor is not a &ldquo;foreign person&rdquo; within the meaning of the Internal Revenue Code of 1986,
as amended (hereinafter called the &ldquo;<U>Code</U>&rdquo;), Sections 1445 and 7701 (i.e. Mortgagor is not a non-resident alien,
foreign corporation, foreign partnership, foreign trust or foreign estate as those terms are defined in the Code and any regulations
promulgated thereunder).</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes,
Insurance and Fees</U>. Mortgagor shall pay or shall cause to be paid when due, all taxes, permits, licenses, insurance premiums
and other similar amounts with respect to the Mortgaged Property, the Hydrocarbon Property and the Hydrocarbons.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Operation
By Third Parties</U>. As to any part of the Mortgaged Property which is not a working interest (if any), Mortgagor agrees, to take
all such action and to exercise all rights and remedies as are available to Mortgagor to cause the owner or owners of the working
interest in such properties to comply with the covenants and agreements contained herein; and as to any part of the Mortgaged Property
which is a working interest operated by a party other than Mortgagor, Mortgagor agrees to take all such action and to exercise
all rights and remedies as are reasonably available to Mortgagor (including, but not limited to, all rights under any operating
agreement) to cause the operator of such property to comply with the covenants and agreements contained herein.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Failure
to Perform</U>. Mortgagor agrees that if Mortgagor fails to perform any act or to take any action which Mortgagor is required to
perform or take hereunder or pay any money which Mortgagor is required to pay hereunder, Mortgagee may, but shall not be obligated
to, perform or cause to be performed such act or take such action or pay such money, and any expenses so incurred by either of
them and any money so paid by either of them shall be a demand obligation owing by Mortgagor to Mortgagee, as the case may be,
and each of Mortgagee, upon making such payment, shall be subrogated to all of the rights of the person or entity receiving such
payment. Each amount due and owing by Mortgagor to Mortgagee pursuant to this Mortgage shall bear interest from the date of such
expenditure or payment or other occurrence which gives rise to such amount being owed to such Person until paid at a rate per annum
equal to the Past Due Rate, and all such amounts together with such interest thereon shall be a part of the Indebtedness described
in <U>Section 1.03</U> hereof.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sale,&nbsp;Encumbrance&nbsp;or&nbsp;Removal</U>.
Mortgagor will not at any time during the existence hereof, sell, assign, transfer, mortgage, encumber, or otherwise dispose of
any Mortgaged Property, except (i) sales of Hydrocarbons in the ordinary course of business and only then in compliance with the
terms of this Mortgage, (ii) the sale of obsolete or worn out equipment or personal property in the ordinary course of business,
and Mortgagor shall not remove or permit to be removed, any personal or other removable property at any time covered hereby from
the premises upon which the same may be situated unless moved to other portions of the Mortgaged Property or replaced with property
of equal value in which Mortgagee has a first priority perfected security interest, (iii) the sale of Hydrocarbon Property if and
to the extent all of the following conditions are satisfied: (A) such Hydrocarbon Property to be sold does not constitute a material
portion of the collateral securing the Indebtedness, is not currently producing Hydrocarbons and such Hydrocarbon Property has
not been proven, consistent with prudent customs and practices in the industry in which Mortgagor operates, to contain Hydrocarbons
which may be extracted in the ordinary course of Mortgagor&rsquo;s business, (B) such sale occurs in the ordinary course of Mortgagor&rsquo;s
business in connection with the disposition of non-producing and non-proven Hydrocarbon Property, (C) no Event of Default has occurred
and is continuing at the time of such sale or would arise as a result thereof and no event has occurred which, with the passing
of time or the giving of notice, would constitute an Event of Default, (D) such sale is to a third-party not affiliated with the
Mortgagor and on an arms-length basis, (E) if Mortgagor or any other Mortgagor Party is the operator with respect to such Hydrocarbon
Property, such Mortgagor Party remains the operator with respect thereto, and (F) Mortgagee has given its prior written consent
to such sale, such consent not to be unreasonably withheld, and (iv) as otherwise permitted pursuant to the terms of the Purchase
Agreement.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.08&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sale
of Production</U>. No Mortgaged Property will become subject to any contractual or other arrangement (a) whereby payment for production
is or can be deferred for a substantial period after the month in which such production is delivered (i.e., in the case of oil,
not in excess of sixty (60) days, and in the case of gas, not in excess of ninety (90) days) or (b) whereby payments are made to
Mortgagor other than by checks, drafts, wire transfer advises or other similar writings, instruments or communications for the
immediate payment of money. Except for transportation, gathering, processing, compression or dehydration agreements (or other agreements
relating to the marketing of Hydrocarbons) from time to time disclosed to Mortgagee in writing (in connection with the Mortgaged
Property to which they relate), and, with respect to the immediately succeeding clause (i), except for agreements entered into
by Mortgagor in the ordinary course of business consistent with prudent customs and practices in the industry in which Mortgagor
operates, (i)&nbsp;no Mortgaged Property will become subject to any contractual or other arrangement for the sale, processing or
transportation of production (or otherwise related to the marketing of Hydrocarbons) which cannot be cancelled on ninety (90) days&rsquo;
(or less) notice and (ii)&nbsp;all contractual or other arrangements for the sale, processing or transportation of Hydrocarbons
(or otherwise related to the marketing of Hydrocarbons) shall be bona fide arm&rsquo;s length transactions and shall be at generally
prevailing market prices. Mortgagor hereby covenants not to enter into any advance or prepayment arrangements or receive any prepayments
(including, but not limited to, payments for gas not taken pursuant to &ldquo;take or pay&rdquo; or other similar arrangements)
for any Hydrocarbons produced or to be produced from the Mortgaged Properties whereby it accepts consideration for Hydrocarbons
not yet produced. No Mortgaged Property will become subject to any &ldquo;take or pay&rdquo; or other similar arrangement (y) which
can be satisfied in whole or in part by the production or transportation of gas from other properties or (z) as a result of which
production from the Mortgaged Properties may be required to be delivered to one or more third parties without payment (or without
full payment) therefor as a result of payments made, or other actions taken, with respect to other properties. Mortgagor will not
after the date hereof take more (&ldquo;overproduced&rdquo;) gas from the lands covered thereby (or pooled or unitized therewith)
than its ownership interest in such Mortgaged Property would entitle it to take with respect to any well on the Mortgaged Property
(or on any unit in which the Mortgaged Property participate), in an amount in excess of Mortgagor&rsquo;s share of gas produced
from such well, except for insignificant volumes of overproduced or underproduced gas that may occasionally occur from time to
time in the ordinary course of business and consistent with prudent customs and practices in the industry in which Mortgagor operates.
No Mortgaged Property will become subject to a gas balancing arrangement under which one or more third parties may take a portion
of the production attributable to such Mortgaged Property without payment (or without full payment) therefor as a result of production
having been taken from, or as a result of other actions or inactions with respect to, other properties, except for any such gas
balancing arrangement entered into in the ordinary course of business consistent with prudent customs and practices in the industry
in which Mortgagor operates.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.09&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Operation
of Mortgaged Property</U>. <FONT STYLE="font-weight: normal; text-underline-style: none; color: windowtext">The Mortgagor will
promptly pay and discharge or cause to be paid and discharged all rentals, delay rentals, royalties and indebtedness accruing under,
and perform or cause to be performed each and every act, matter or thing required by, each and all of the assignments, deeds, subject
leases, sub-leases, contracts and agreements described or referred to herein or affecting the Mortgagor&rsquo;s interests in the
Mortgaged Property and will do or cause to be done all other things reasonably necessary to keep unimpaired the Mortgagor&rsquo;s
rights with respect thereto and prevent any intentional forfeiture thereof or default with respect thereto, other than a default
which might occur as a result of cessation of production thereunder. </FONT>Each Mortgaged Property will be maintained, operated
and developed in a good and workmanlike manner, in accordance with industry standards and in conformity with all applicable laws
and all rules, regulations and orders of all duly constituted authorities having jurisdiction and in substantial conformity with
all oil, gas and/or other mineral leases and other contracts and agreements forming a part of the Mortgaged Property and in conformity
with all Permitted Liens; specifically in this connection, (i) no Mortgaged Property shall subject to having allowable production
after the date hereof reduced below the full and regular allowable (including the maximum permissible tolerance) because of any
overproduction (whether or not the same was permissible at the time) prior to the date hereof and (ii) none of the wells located
on the Mortgaged Property (or properties unitized therewith) are or will be deviated from the vertical more than the maximum permitted
by applicable laws, regulations, rules and orders, and such wells shall remain, bottomed under and producing from, with the well
bores wholly within, the Mortgaged Property (or, in the case of wells located on properties unitized therewith, such unitized properties).
The Mortgagor shall possess all certificates, authorizations, approvals, licenses and permits issued by the appropriate federal,
state or foreign regulatory authorities (collectively, &ldquo;<U>Permits</U>&rdquo;) necessary to produce, extract, transport and
sell the oil, gas, minerals and/or other Hydrocarbons in that portion of the Mortgaged Property that is producing oil, gas, minerals
and/or other Hydrocarbons. <FONT STYLE="font-weight: normal; text-underline-style: none; color: windowtext">The Mortgagor will
operate the Mortgaged Property, or cause the Mortgaged Property to be operated, in a careful and efficient manner in accordance
with the practices of the industry and in material compliance with all applicable contracts and agreements and in material compliance
with all applicable spacing, proration and conservation laws of the jurisdiction in which the Mortgaged Property is situated, and
all applicable laws, rules and regulations of every other agency and authority from time to time constituted to regulate the development
and operation of the </FONT>Mortgaged Property <FONT STYLE="font-weight: normal; text-underline-style: none; color: windowtext">and
the production and sale of Hydrocarbons and other minerals produced therefrom. The Mortgagor will do or cause to be done, or shall
participate in, such development work as may be reasonably necessary to the prudent and economical operation of the Mortgaged Property
in accordance with the approved practices of prudent operators in the industry, including, without limitation, all work to be done
that may be appropriate to protect from diminution the productive capacity of the Mortgaged Property and each producing well thereon.
Upon the request of the Mortgagee, and at reasonable times and intervals generally, but at any time upon at least twenty-four (24)
hours advance notice after the occurrence of and during the continuation of an Event of Default, the Mortgagor will (a) permit
the Mortgagee and its respective designated representatives to enter upon any part of the Mortgaged Property under the control
of the Mortgagor, and (b) cause the operator of any part of the Mortgaged Property not under the control of the Mortgagor to permit
the Mortgagee and its designated representatives to enter upon the same (to the extent and subject to the conditions under which
the Mortgagor may so enter), for the purposes of inspecting the condition and operation thereof</FONT>.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>[Reserved]</U>.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental</U>.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional
Definitions</U>. For purposes of this Mortgage, (i) &ldquo;<U>Applicable Environmental Laws</U>&rdquo; shall mean any applicable
laws, orders, rules, or regulations pertaining to safety, health or the environment, as such laws, orders, rules or regulations
now exist or are hereafter enacted and/or amended (including without limitation the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986 (as amended, hereinafter called
&ldquo;<U>CERCLA</U>&rdquo;), the Resource Conservation and Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980,
the Solid Waste Disposal Act Amendments of 1980, and the Hazardous and Solid Waste Amendments of 1984 (as amended, hereinafter
called &ldquo;<U>RCRA</U>&rdquo;) and applicable state and local law), (ii) &ldquo;<U>hazardous substance</U>&rdquo; and &ldquo;<U>release</U>&rdquo;
shall have the meanings specified in CERCLA, (iii) &ldquo;<U>solid waste</U>&rdquo; and &ldquo;<U>disposal</U>&rdquo; (or &ldquo;<U>disposed</U>&rdquo;)
shall have the meanings specified in RCRA; <U>provided</U>, in the event either CERCLA or RCRA is amended so as to broaden the
meaning of any term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment and provided
further, to the extent that the laws of the states in which the Mortgaged Properties are located establish a meaning for &ldquo;hazardous
substance,&rdquo; &ldquo;release,&rdquo; &ldquo;solid waste,&rdquo; or &ldquo;disposal&rdquo; which is broader than that specified
in either CERCLA or RCRA, such broader meaning shall apply, and (iv) &ldquo;<U>Associated Property</U>&rdquo; shall mean any and
all interests in and to (and/or carved out of) the lands which are described or referred to in <U>Exhibit A</U> hereto, or which
are otherwise described in any of the oil, gas and/or mineral leases or other instruments described in or referred to in such <U>Exhibit&nbsp;A</U>,
whether or not such property interests are owned by Mortgagor.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Future
Performance</U>. Mortgagor will not cause or permit the Mortgaged Property or Mortgagor to be in violation of, or do anything or
permit anything to be done which will subject the Mortgaged Property to any remedial obligations under, or result in noncompliance
with applicable permits and licenses under, any Applicable Environmental Laws, assuming disclosure to the applicable governmental
authorities of all relevant facts, conditions and circumstances, if any, pertaining to the Mortgaged Property and Mortgagor will
promptly notify Mortgagee in writing of any existing, pending or, to the best knowledge of Mortgagor, threatened investigation,
claim, suit or inquiry by any governmental authority or any person in connection with any Applicable Environmental Laws. Mortgagor
will take steps necessary to determine that no hazardous substances or solid wastes have been disposed of or otherwise released
on or to the Mortgaged Property. Mortgagor will not cause or permit the disposal or other release of any hazardous substance or
solid waste at, into, upon or under the Mortgaged Property and covenants and agrees to keep or cause the Mortgaged Property to
be kept free of any hazardous substance or solid waste (except such use, and temporary storage in anticipation of use, as is required
in the ordinary course of business, all while in compliance with Applicable Environmental Laws), and to remove the same (or if
removal is prohibited by law, to take whatever action is required by law), promptly upon discovery at its sole expense. Upon Mortgagee&rsquo;s
reasonable request, at any time and from time to time during the existence of this Mortgage, but not more often than once every
calendar year (so long as no Event of Default has occurred), Mortgagor will provide at Mortgagor&rsquo;s sole expense an inspection
or audit of the Mortgaged Property from an engineering or consulting firm approved by Mortgagee, indicating the presence or absence
of hazardous substances and solid waste on the Mortgaged Property and compliance with Applicable Environmental Laws.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Not
Abandon Wells; Participate in Operations</U>. Mortgagor will not, without prior written consent of Mortgagee, abandon, or consent
to the abandonment of, any well producing from the Mortgaged Property (or properties unitized therewith) so long as such well is
capable (or is subject to being made capable through drilling, reworking or other operations which it would be commercially feasible
to conduct) of producing oil, gas, or other Hydrocarbons or other minerals in commercial quantities (as determined without considering
the effect of this Mortgage). <FONT STYLE="color: windowtext">Mortgagor will not, without prior written consent of Mortgagee, which
consent shall not be unreasonably conditioned, withheld, or delayed, elect not to participate in a proposed operation on the Mortgaged
Properties where the effect of such election would be the forfeiture either temporarily (i.e. until a certain sum of money is received
out of the forfeited interest) or permanently of any interest in the Mortgaged Properties. All or portions of the Mortgaged Property
may be comprised of interests in the Hydrocarbon Property or lands pooled or unitized therewith which are other than working interests
or which may be operated by a party or parties other than the Mortgagor and with respect to all such portions of the Mortgaged
Property, the Mortgagor&rsquo;s covenants and agreements as expressed in this </FONT><U>Article III</U> are modified to require
that the Mortgagor use its commercially reasonable efforts to cause compliance with such covenants and agreements by the working
interest owners or the operator or operators of such Hydrocarbon Properties.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Condemnation
Awards</U>. If at any time all or any portion of the Mortgaged Property shall be taken or damaged under the power of eminent domain,
the award received by condemnation proceedings for any property so taken or any payment received in lieu of such condemnation proceedings
shall be paid directly to Mortgagee as agent for Mortgagor and all or any portion of such award or payment, at the option of Mortgagee,
shall be applied to the Indebtedness or paid over, wholly or in part, to Mortgagor for any purpose or object satisfactory to Mortgagee;
provided that Mortgagee shall not be obligated to see to the application of any amount paid over to Mortgagor. Mortgagor immediately
upon obtaining knowledge of the institution of any proceedings or negotiations for the condemnation of the Mortgaged Property,
or any portion thereof, will notify Mortgagee of the pendency of such negotiations or proceedings. Mortgagee may participate in
any such negotiations or proceedings, and Mortgagor from time to time will execute and deliver to Mortgagee all instruments requested
by Mortgagee to permit such participation.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance</U>.
Mortgagor will maintain with no less than a single A minus rated company,insurance on all its property in at least such amounts
and against at least such risks (but including in any event general liability) as are usually insured against in the same general
area by companies engaged in the same business and in any case no less comprehensive in scope than that maintained by the Mortgager
as of the date hereof. In the event of any loss under any insurance policies so carried by Mortgagor, Mortgagee shall have the
right (but not the obligation) to make proof of loss and collect the same, and all amounts so received shall be applied toward
costs, charges and expenses (including reasonable attorneys&rsquo; fees), if any, incurred in the collection thereof, then to the
payment, in the order determined by Mortgagee in its own discretion, of the Indebtedness, and any balance remaining shall be subject
to the order of Mortgagor. Mortgagee is hereby authorized but not obligated to enforce in its name or in the name of Mortgagor
payment of any or all of said policies or settle or compromise any claim in respect thereof, and to collect and make receipts for
the proceeds thereof and Mortgagee is hereby appointed Mortgagor&rsquo;s agent and attorney-in-fact to endorse any check or draft
payable to Mortgagor in order to collect the proceeds of insurance (provided Mortgagee shall only be entitled to enforce the power
of attorney provided in this sentence after the occurrence and during the continuance of an Event of Default). In the event of
foreclosure of this Mortgage, or other transfer of title to the Mortgaged Property in extinguishment in whole or in part of the
Indebtedness, all right, title and interest of Mortgagor in and to such policies then in force concerning the Mortgaged Property
and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or other transferee in the event
of such other transfer of title.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with&nbsp;Leases</U>. Mortgagor will observe and comply with all of the terms and provisions, of the oil, gas and mineral leases
covered by this Mortgage and any other agreements or instruments applicable thereto; and, except with the prior written consent
of Mortgagee, will not amend (in any manner adverse to Mortgagor, Mortgagee, or Mortgagor&rsquo;s or Mortgagee&rsquo;s interest
in the Mortgaged Property) or terminate any of such agreements or surrender, abandon or release any of such leases in whole or
in part so long as any well situated thereon, or located on any unit containing all or any part of such leases, is capable of producing
oil, gas, casinghead gas or other hydrocarbons in paying quantities. Mortgagor will cause all obligations to the holders of royalty
interests and all other interests in the Mortgaged Properties to be promptly discharged and all covenants and conditions, imposed
upon the original lessee or his assigns by every such lease and every other agreement relative thereto to be fully and promptly
performed and to cause all acts necessary or proper to accomplish the foregoing and prevent the breach or forfeiture of any such
lease to be fully and promptly performed.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Assurance</U>. Mortgagor will, on request of Mortgagee, (i) promptly correct any defect, error or omission which may be discovered
in the contents of this Mortgage, or in any other document or instrument executed in connection with any of the Loan Documents,
or in the execution or acknowledgment of this Mortgage or any other document; (ii) execute, acknowledge, deliver and record and/or
file such further instruments (including, without limitation, further deeds of trust, mortgages, security agreements, financing
statements, continuation statements, and assignments of production, accounts, funds, contract rights, general intangibles, and
proceeds) and do such further acts as may be necessary, desirable or proper to carry out more effectively the purposes of this
Mortgage and to more fully identify and subject to the liens and security interests hereof any property intended to be covered
hereby, including specifically, but without limitation, any renewals, additions, substitutions, replacements, or appurtenances
to the Mortgaged Property; and (iii) execute, acknowledge, deliver, and file and/or record any document or instrument (including
specifically any financing statement) desired by Mortgagee to protect the lien or the security interest hereunder against the rights
or interests of third persons. Mortgagor shall pay all costs connected with any of the foregoing.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Name
and Place of Business</U>. Mortgagor will not cause or permit any change to be made in its name, identity, state of formation or
corporate or partnership structure, or its federal employer identification number unless Mortgagor shall have notified Mortgagee
of such change at least thirty (30) days prior to the effective date of such change, and shall have first taken all action required
by Mortgagee for the purpose of further perfecting or protecting the liens and security interests in the Mortgaged Property created
hereby. Mortgagor&rsquo;s exact name is the name set forth in this Mortgage. Mortgagor is a registered organization which is organized
under the laws of one of the states comprising the United States (e.g. corporation, limited partnership, registered limited liability
partnership or limited liability company). Mortgagor is located (as determined pursuant to the UCC) in the state under which it
is organized, which is as set forth in the preamble to this Mortgage. Mortgagor&rsquo;s principal place of business and chief executive
office, and the place where Mortgagor keeps its books and records concerning the Mortgaged Property (including, particularly, the
records with respect to Production Proceeds from the Mortgaged Property) has been, and will continue to be (unless Mortgagor notifies
Mortgagee of any change in writing at least thirty (30) days prior to the date of such change), the address set forth on the signature
page of this Mortgage.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Recording</U>.
Mortgagor will cause this Mortgage and all amendments and supplements thereto and substitutions therefor and all financing statements
and continuation statements relating thereto, unless done by Mortgagee, to be recorded, filed, re recorded and refiled in such
manner and in such places as Mortgagee shall reasonably request and will pay all such recording, filing, re recording and refiling
taxes, fees and other charges.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Inspection;&nbsp;Management</U>.
Mortgagee and any persons authorized by Mortgagee shall have the right to enter and inspect the Mortgaged Property at all reasonable
times. If, at any time after an Event of Default by Mortgagor, the management or maintenance of the Mortgaged Property is determined
by Mortgagee to be unsatisfactory and is not corrected within thirty (30) days after notice to Mortgagor of the specific problem
to be corrected, Mortgagor will, to the extent Mortgagor is entitled under third party agreements affecting the same, employ, for
the duration of such Event of Default, as managing agent of the Mortgaged Property, any qualified person from time to time designated
or approved by Mortgagee.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">&nbsp;</FONT></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">ARTICLE
IV<BR>
</FONT><U>Rights and Remedies</U></P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Event
of Default</U>. As used in this Mortgage, an &ldquo;<U>Event of Default</U>&rdquo; means the occurrence of an &ldquo;Event of Default&rdquo;
as defined under the Note.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Foreclosure
and Sale.</U></P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
an Event of Default shall occur and be continuing, Mortgagee shall have the right and option to proceed with foreclosure by directing
Mortgagee, or his successors or substitutes in trust, to proceed with foreclosure and to sell, to the extent permitted by law,
all or any portion of the Mortgaged Property at one or more sales, as an entirety or in parcels, at such place or places in otherwise
such manner and upon such notice as may be required by law, or, in the absence of any such requirement, as Mortgagee may deem appropriate,
and to make conveyance to the purchaser or purchasers. Where the Mortgaged Property is situated in more than one jurisdiction,
notice as above provided shall be posted and filed in all such jurisdictions (if such notices are required by law), and all such
Mortgaged Property may be sold in any such jurisdiction and any such notice shall designate the jurisdiction where such Mortgaged
Property is to be sold. Nothing contained in this <U>Section 4.02</U> shall be construed so as to limit in any way Mortgagee&rsquo;s
rights to sell the Mortgaged Property, or any portion thereof, by private sale if, and to the extent that, such private sale is
permitted under the laws of the applicable jurisdiction or by public or private sale after entry of a judgment by any court of
competent jurisdiction so ordering. Mortgagor hereby irrevocably appoints Trustee to be the attorney of Mortgagor and in the name
and on behalf of Mortgagor to execute and deliver any deeds, transfers, conveyances, assignments, assurances and notices which
Mortgagor ought to execute and deliver and do and perform any and all such acts and things which Mortgagor ought to do and perform
under the covenants herein contained and generally, to use the name of Mortgagor in the exercise of all or any of the powers hereby
conferred on Trustee. At any such sale: (i)&nbsp;whether made under the power herein contained or any other legal enactment, or
by virtue of any judicial proceedings or any other legal right, remedy or recourse, it shall not be necessary for Trustee to have
physically present, or to have constructive possession of, the Mortgaged Property (Mortgagor hereby covenanting and agreeing to
deliver to Trustee any portion of the Mortgaged Property not actually or constructively possessed by Trustee immediately upon demand
by Trustee) and the title to and right of possession of any such property shall pass to the purchaser thereof as completely as
if the same had been actually present and delivered to purchaser at such sale, (ii)&nbsp;each instrument of conveyance executed
by Trustee shall contain a general warranty of title, binding upon Mortgagor and its successors and assigns, (iii)&nbsp;each and
every recital contained in any instrument of conveyance made by Trustee shall conclusively establish the truth and accuracy of
the matters recited therein, including, without limitation, nonpayment of the Indebtedness, advertisement and conduct of such sale
in the manner provided herein and otherwise by law and appointment of any successor Trustee hereunder, (iv)&nbsp;any and all prerequisites
to the validity thereof shall be conclusively presumed to have been performed, (v)&nbsp;the receipt of Mortgagee or of such other
party or officer making the sale shall be a sufficient discharge to the purchaser or purchasers for its purchase money and no such
purchaser or purchasers, or its assigns or personal representatives, shall thereafter be obligated to see to the application of
such purchase money, or be in any way answerable for any loss, misapplication or nonapplication thereof, (vi)&nbsp;to the fullest
extent permitted by law, Mortgagor shall be completely and irrevocably divested of all of its right, title, interest, claim and
demand whatsoever, either at law or in equity, in and to the property sold and such sale shall be a perpetual bar both at law and
in equity against Mortgagor, and against any and all other persons claiming or to claim the property sold or any part thereof,
by, through or under Mortgagor, and (vii)&nbsp;to the extent and under such circumstances as are permitted by law, Mortgagee may
be a purchaser at any such sale, and shall have the right, after paying or accounting for all costs of said sale or sales, to credit
the amount of the bid upon the amount of the Indebtedness (in the order of priority set forth in <U>Section 4.14</U> hereof) in
lieu of cash payment.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to that portion, if any, of the Mortgaged Property situated in the State of _____________, this instrument may be foreclosed
by advertisement and sale as provided by applicable ____________ statutes.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative
of the foregoing and the other provisions of this <U>Section 4.02</U> as to any portion of the Mortgaged Properties located in
the State of __________ (or within the offshore area over which the United States of America asserts jurisdiction and to which
the laws of such State are applicable with respect to this Mortgage and/or the liens or security interests created hereby), such
sales of all or any part of such Mortgaged Properties shall be conducted at the courthouse of any county (whether or not the counties
in which such Mortgaged Properties are located are contiguous) in the State of ______ in which any part of such Mortgaged Properties
is situated or which lies shoreward of any Mortgaged Property (i.e., to the extent a particular Mortgaged Property lies offshore
within the reasonable projected seaward extension of the relevant county boundary), at public venue to the highest bidder for cash
between the hours of ten o&rsquo;clock a.m. and four o&rsquo;clock p.m. on the first Tuesday in any month or at such other place,
time and date as provided by the statutes of the State of ______ then in force governing sales of real estate under powers conferred
by deed of trust, after having given notice of such sale in accordance with such statutes.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the occurrence of an Event of Default, Mortgagee may exercise its rights of enforcement with respect to the Mortgaged Properties
or any part thereof located in the States of Oklahoma, Kansas and California under the Business and Commerce Code, as amended,
under the Applicable UCC of any State where any portion of the Mortgaged Properties are located or under any other statute in force
in any state to the extent the same is applicable law. Cumulative of the foregoing and the other provisions of this <U>Section
4.02</U>: (i) to the extent permitted by law, upon the occurrence and during the continuance of an Event of Default, Mortgagee
may enter upon the Mortgaged Properties or otherwise upon Mortgagor's premises to take possession of, assemble and collect the
personal property portion of the Mortgaged Properties or to render it unusable; (ii) upon the occurrence and during the continuance
of an Event of Default, Mortgagee may require Mortgagor to assemble the personal property and make it available at a place Mortgagee
designates which is mutually convenient to allow Mortgagee to take possession or dispose of the personal property; (iii) written
notice mailed to Mortgagor as provided herein at least ten (10) days prior to the date of public sale of the personal property
or prior to the date after which private sale of the personal property will be made shall constitute reasonable notice; (iv) in
the event of a foreclosure of the liens, privileges and/or security interests evidenced hereby, the personal property, or any part
thereof, and the Mortgaged Properties, or any part thereof, may, at the option of Mortgagee, be sold, as a whole or in parts, together
or separately (including, without limitation, where a portion of the Mortgaged Properties is sold, the personal property related
thereto may be sold in connection therewith); (v) upon the occurrence and during the continuance of an Event of Default, Mortgagee
may, to the extent permitted under applicable law, elect to treat the fixtures included in the Mortgaged Properties either as real
property or as personal property, or both, and proceed to exercise such rights as apply thereto; and (vi) with respect to any sale
of real property included in the Mortgaged Properties made under the powers of sale herein granted and conferred, Mortgagee may,
to the extent permitted by applicable law, include in such sale any personal property and fixtures included in the Mortgaged Properties
and relating to such real property.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Agents</U>.
Mortgagee or his successor or substitute may appoint or delegate any one or more persons as agent (collectively, &ldquo;Trustee&rdquo;)
to perform any act or acts necessary or incident to any sale or action hereunder, including the posting of notices and the conduct
of sale, in the name of either the Mortgagee or Trustee, however, on behalf of Mortgagee, his successor or substitute. If Mortgagee
or his successor or substitute or Trustee shall have given notice of sale hereunder, any successor or substitute thereafter appointed
may complete the sale and the conveyance of the property pursuant thereto as if such notice had been given by the successor or
substitute conducting the sale.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Judicial
Foreclosure; Receivership</U>. If any of the Indebtedness shall become due and payable and shall not be timely paid, Mortgagee
shall have the right and power to proceed by a suit or suits in equity or at law, whether for the specific performance of any covenant
or agreement herein contained or in aid of the execution of any power herein granted, or for any foreclosure hereunder or for the
sale of the Mortgaged Property under the judgment or decree of any court or courts of competent jurisdiction or for the enforcement
of any other appropriate legal or equitable remedy. In addition to all other remedies herein provided for, Mortgagor agrees that,
upon the occurrence of an Event of Default or any event or circumstance which, with the lapse of time or the giving of notice,
or both, would constitute an Event of Default hereunder, Mortgagee shall as a matter of right be entitled to the appointment of
a receiver or receivers for all or any part of the Mortgaged Property, whether such receivership be incident to a proposed sale
(or sales) of such property or otherwise, and without regard to the value of the Mortgaged Property or the solvency of any person
or persons liable for the payment of the Indebtedness secured hereby, and Mortgagor does hereby consent to the appointment of such
receiver or receivers, waives any and all defenses to such appointment, agrees not to oppose any application therefor by Mortgagee,
and agrees that such appointment shall in no manner impair, prejudice or otherwise affect the rights of Mortgagee under <U>Article&nbsp;II</U>
hereof. Mortgagor expressly waives notice of a hearing for appointment of a receiver and the necessity for bond or an accounting
by the receiver. Nothing herein is to be construed to deprive Mortgagee of any other right, remedy or privilege it may now or hereafter
have under the law to have a receiver appointed. Any money advanced by Mortgagee in connection with any such receivership shall
be a demand obligation (which obligation Mortgagor hereby expressly promises to pay) included in the Indebtedness owing by Mortgagor
to the Mortgagee and shall bear interest from the date of making such advance by Mortgagee until paid at the then applicable interest
rate under the Note (the &ldquo;<U>Applicable Rate</U>&rdquo;).</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Foreclosure
for Installments</U>. Mortgagee shall also have the option to proceed with foreclosure in satisfaction of any installments of the
Indebtedness which have not been paid when due either through the courts or by directing Mortgagee or his successors in trust to
proceed with foreclosure in satisfaction of the matured but unpaid portion of the Indebtedness as if under a full foreclosure,
conducting the sale as herein provided and without declaring the entire principal balance and accrued interest due; such sale may
be made subject to the unmatured portion of the Indebtedness, and any such sale shall not in any manner affect the unmatured portion
of the Indebtedness, but as to such unmatured portion of the Indebtedness this Mortgage shall remain in full force and effect just
as though no sale had been made hereunder. It is further agreed that several sales may be made hereunder without exhausting the
right of sale for any unmatured part of the Indebtedness, it being the purpose hereof to provide for a foreclosure and sale of
the security for any matured portion of the Indebtedness without exhausting the power to foreclose and sell the Mortgaged Property
for any subsequently maturing portion of the Indebtedness.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Separate
Sales</U>. The Mortgaged Property may be sold in one or more parcels and in such manner and order as Mortgagee, in its sole discretion,
may elect, it being expressly understood and agreed that the right of sale arising out of any Event of Default shall not be exhausted
by any one or more sales.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Possession
of Mortgaged Property</U>. Mortgagor agrees, to the full extent that it lawfully may agree, that, in case one or more Events of
Default shall have occurred and shall not have been remedied, then, and in every such case, Mortgagee shall have the right and
power to enter into and upon and take possession of all or any part of the Mortgaged Property in the possession of Mortgagor, its
successors or assigns, or its or their agents or servants, and may exclude Mortgagor, its successors or assigns, and all persons
claiming under Mortgagor, and its or their agents or servants wholly or partly therefrom; and, holding the same, Mortgagee may
use, administer, manage, operate and control the Mortgaged Property and conduct the business thereof to the same extent as Mortgagor,
its successors or assigns, might at the time do and may exercise all rights and powers of Mortgagor, in the name, place and stead
of Mortgagor, or otherwise as Mortgagee shall deem best. All costs, expenses and liabilities of every character incurred by Mortgagee
in administering, managing, operating, and controlling the Mortgaged Property shall constitute a demand obligation (which obligation
Mortgagor hereby expressly promises to pay) owing by Mortgagor to Mortgagee and shall bear interest from date of expenditure until
paid at the Applicable Rate, all of which shall constitute a portion of the Indebtedness and shall be secured by this Mortgage
and all other security instruments.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.08&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Occupancy
After Foreclosure</U>. In the event there is a foreclosure sale hereunder and at the time of such sale Mortgagor, or Mortgagor&rsquo;s
representatives, successors or assigns or any other person claiming any interest in the Mortgaged Property by, through or under
Mortgagor, are occupying or using the Mortgaged Property or any part thereof, each and all shall immediately become the tenant
of the purchaser at such sale, which tenancy shall be a tenancy from day to day, terminable at the will of either the landlord
or tenant, or at a reasonable rental per day based upon the value of the property occupied, such rental to be due daily to the
purchaser; to the extent permitted by applicable law, the purchaser at such sale shall, notwithstanding any language herein apparently
to the contrary, have the sole option to demand immediate possession following the sale or to permit the occupants to remain as
tenants at will. In the event the tenant fails to surrender possession of said property upon demand, the purchaser shall be entitled
to institute and maintain a summary action for possession of the Mortgaged Property (such as an action for forcible entry and detainer)
in any court having jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.09&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies
Cumulative, Concurrent and Nonexclusive</U>. Every right, power and remedy herein given to Mortgagee shall be cumulative and, in
addition to every other right, power and remedy herein specifically given or now or hereafter existing in equity, at law or by
statute (including specifically those granted by the Applicable UCC in effect and applicable to the Mortgaged Property or any portion
thereof), each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from
time to time and so often and in such order as may be deemed expedient by Mortgagee, and the exercise, or the beginning of the
exercise, of any such right, power or remedy shall not be deemed a waiver of the right to exercise, at the same time or thereafter
any other right, power or remedy. No delay or omission by Mortgagee in the exercise of any right, power or remedy shall impair
any such right, power or remedy or operate as a waiver thereof or of any other right, power or remedy then or thereafter existing.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Release of Obligations</U>. None of Mortgagor, any other Mortgagor Party, any guarantor of the Indebtedness or any other person
or entity hereafter obligated for payment of all or any part of the Indebtedness shall be relieved of such obligation by reason
of (a) the failure of Mortgagee to comply with any request of Mortgagor, any other Mortgagor Party, any such guarantor or any such
other person or entity so obligated to foreclose the lien of this Mortgage or to enforce any provision hereunder or under any of
the Loan Documents; (b) the release, regardless of consideration, of the Mortgaged Property or any portion thereof or interest
therein or the addition of any other property to the Mortgaged Property; (c) any agreement or stipulation between any subsequent
owner of the Mortgaged Property and Mortgagee extending, renewing, rearranging or in any other way modifying the terms of this
Mortgage without first having obtained the consent of, given notice to or paid any consideration to Mortgagor, any other Mortgagor
Party, any such guarantor or such other person or entity, and in such event Mortgagor, the Mortgagor Parties, such guarantor and
all such other persons and entities shall continue to be liable to make payment according to the terms of any such extension or
modification agreement unless expressly released and discharged in writing by Mortgagee; or (d) by any other act or occurrence
save and except the complete payment of the Indebtedness and the complete fulfillment of all obligations hereunder or under the
Loan Documents.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release
of and Resort to Collateral</U>. Mortgagee may release, regardless of consideration, any part of the Mortgaged Property without,
as to the remainder, in any way impairing, affecting, subordinating or releasing the lien or security interest created in or evidenced
by this Mortgage or its stature as a first and prior lien and security interest in and to the Mortgaged Property, and without in
any way releasing or diminishing the liability of any person or entity liable for the repayment of the Indebtedness. For payment
of the Indebtedness, Mortgagee may resort to any other security therefor held by Mortgagee in such order and manner as Mortgagee
may elect.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waiver
of Redemption, Notice and Marshalling of Assets, Etc</U>. To the fullest extent permitted by law, Mortgagor hereby irrevocably
and unconditionally waives and releases (a) all benefits that might accrue to Mortgagor by virtue of any present or future moratorium
law or other law exempting the Mortgaged Property from attachment, levy or sale on execution or providing for any appraisement,
valuation, stay of execution, exemption from civil process, redemption or extension of time for payment; provided, however, that
if the laws of any state do not permit the redemption period to be waived, the redemption period is specifically reduced to the
minimum amount of time allowable by statute; (b) all notices of any Event of Default or of Mortgagee&rsquo;s intention to accelerate
maturity of the Indebtedness or of Mortgagee&rsquo;s election to exercise or his actual exercise of any right, remedy or recourse
provided for hereunder or under the Loan Documents; and (c) any right to a marshalling of assets or a sale in inverse order of
alienation. If any law referred to in this Mortgage and now in force, of which Mortgagor or its successor or successors might take
advantage despite the provisions hereof, shall hereafter be repealed or cease to be in force, such law shall thereafter be deemed
not to constitute any part of the contract herein contained or to preclude the operation or application of the provisions hereof.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Discontinuance
of Proceedings</U>. In case Mortgagee shall have proceeded to invoke any right, remedy or recourse permitted hereunder or under
the Loan Documents and shall thereafter elect to discontinue or abandon same for any reason, Mortgagee shall have the unqualified
right to do so and, in such an event, Mortgagor and Mortgagee shall be restored to their former positions with respect to the Indebtedness,
this Mortgage, the Loan Documents, the Mortgaged Property and otherwise, and the rights, remedies, recourses and powers of Mortgagee
shall continue as if same had never been invoked.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Application
of Proceeds</U>. The proceeds of any sale of the Mortgaged Property or any part thereof and all other monies received by Mortgagee
in any proceedings for the enforcement hereof or otherwise, whose application has not elsewhere herein been specifically provided
for, shall be applied:</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>first</U>,
to the payment of all costs and expenses incurred by Mortgagee incident to the enforcement of this Mortgage, the Loan Documents
or any of the Indebtedness (including, without limiting the generality of the foregoing, expenses of any entry or taking of possession,
of any sale, of advertisement thereof, and of conveyances, and court costs, compensation of agents and employees, legal fees and
a reasonable commission to Mortgagee acting in connection herewith or hereunder), and to the payment of all other charges, expenses,
liabilities and advances incurred or made by Mortgagee under this Mortgage or in executing any trust or power hereunder;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>second</U>,
to payment of the Indebtedness in such order and manner as Mortgagee may elect in Mortgagee&rsquo;s sole discretion.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Resignation
of Operator</U>. In addition to all rights and remedies under this Mortgage, at law and in equity, if any Event of Default shall
occur and Mortgagee shall exercise any remedies under this Mortgage with respect to any portion of the Mortgaged Property (or Mortgagor
shall transfer any Mortgaged Property &ldquo;in lieu of&rdquo; foreclosure), Mortgagee shall have the right to request that any
operator of any Mortgaged Property which is either Mortgagor or any affiliate of Mortgagor to resign as operator under the joint
operating agreement applicable thereto, and no later than sixty (60) days after receipt by Mortgagor of any such request, Mortgagor
shall resign (or cause such other party to resign) as operator of such Mortgaged Property.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-variant: small-caps"><U>Indemnity</U></FONT>.
In connection with any action taken by Mortgagee pursuant to this Mortgage and their officers, directors, partners (general and
limited), members, managers, investors, equityholders, employees, representatives, agents, advisors, attorneys, accountants, experts
and affiliates and any persons or entities owned or controlled by Mortgagee or any such other person or entity (&ldquo;<U>Indemnified
Parties</U>&rdquo;) shall not be liable for any loss, damage or liability (&ldquo;<U>Loss</U>&rdquo;) sustained by Mortgagor resulting
from an assertion that Mortgagee has received funds from the production of Hydrocarbons claimed by third persons or any act or
omission of any Indemnified Party in administering, managing, operating or controlling the Mortgaged Property, INCLUDING SUCH LOSS
WHICH MAY RESULT FROM THE ORDINARY NEGLIGENCE OF AN INDEMNIFIED PARTY, UNLESS SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF AN INDEMNIFIED PARTY, nor shall Mortgagee be obligated to perform or discharge any obligation, duty or liability
of Mortgagor. Mortgagor shall and does hereby agree to indemnify and defend each Indemnified Party for, and to hold each Indemnified
Party harmless from, any and all Loss which may or might be incurred by any Indemnified Party by reason of this Mortgage or the
exercise of rights or remedies hereunder INCLUDING SUCH LOSS WHICH MAY RESULT FROM THE ORDINARY NEGLIGENCE OF AN INDEMNIFIED PARTY,
UNLESS SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNIFIED PARTY; should Mortgagee make any expenditure
on account of any such Loss, the amount thereof, including costs, expenses and reasonable attorneys&rsquo; fees, shall be a demand
obligation (which obligation Mortgagor hereby expressly promises to pay) owing by Mortgagor to Mortgagee and shall bear interest
from the date expended until paid at a rate per annum equal to the Applicable Rate, shall be a part of the Indebtedness and shall
be secured by this Mortgage and any other Loan Document pursuant to which Mortgagor has granted any liens or security interests
to Mortgagee as collateral security for the Indebtedness. Mortgagor hereby assents to, ratifies and confirms any and all actions
of Mortgagee with respect to the Mortgaged Property taken under this Mortgage. The liabilities of Mortgagor as set forth in this
<U>Section 4.16</U> shall survive the termination of this Mortgage.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">&nbsp;</FONT></P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">ARTICLE
V<BR>
</FONT><U>Trustee</U></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Duties,
Rights, and Powers of Trustee</U>. It shall be no part of the duty of Trustee, if any, to see to any recording, filing or registration
of this Mortgage or any other instrument in addition or supplemental thereto, or to give any notice thereof, or to see to the payment
of or be under any duty in respect of any tax or assessment or other governmental charge which may be levied or assessed on the
Mortgaged Property, or any part thereof, or against Mortgagor, or to see to the performance or observance by Mortgagor of any of
the covenants and agreements contained herein. Trustee shall not be responsible for the execution, acknowledgment or validity of
this Mortgage or of any instrument in addition or supplemental hereto or for the sufficiency of the security purported to be created
hereby, and makes no representation in respect thereof or in respect of the rights of Mortgagee. Trustee shall have the right to
seek advice with counsel upon any matters arising hereunder and shall be fully protected in relying as to legal matters on the
advice of counsel. Trustee shall not incur any personal liability hereunder except for Trustee&rsquo;s own willful misconduct;
and Trustee shall have the right to rely on any instrument, document or signature authorizing or supporting any action taken or
proposed to be taken by him hereunder, believed by him in good faith to be genuine.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successor
Trustee</U>. Trustee, if any, may resign by written notice addressed to Mortgagee or be removed at any time with or without cause
by an instrument in writing duly executed on behalf of Mortgagee. In case of the death, resignation or removal of Trustee, a successor
trustee may be appointed by Mortgagee by instrument of substitution complying with any applicable requirements of law, or, in the
absence of any such requirement, without other formality than appointment and designation in writing. Written notice of such appointment
and designation shall be given by Mortgagee to Mortgagor, but the validity of any such appointment shall not be impaired or affected
by failure to give such notice or by any defect therein. Such appointment and designation shall be full evidence of the right and
authority to make the same and of all the facts therein recited, and, upon the making of any such appointment and designation,
this Mortgage shall vest in the successor trustee all the estate and title in and to all of the Mortgaged Property, and the successor
trustee shall thereupon succeed to all of the rights, powers, privileges, immunities and duties hereby conferred upon Trustee named
herein, and one such appointment and designation shall not exhaust the right to appoint and designate a successor trustee hereunder
but such right may be exercised repeatedly as long as any Indebtedness remains unpaid hereunder. To facilitate the administration
of the duties hereunder, Mortgagee may appoint multiple trustees to serve in such capacity or in such jurisdictions as Mortgagee
may designate.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Retention
of Moneys</U>. All moneys received by Trustee, if any, shall, until used or applied as herein provided, be held in trust for the
purposes for which they were received, but need not be segregated in any manner from any other moneys (except to the extent required
by law), and Trustee shall be under no liability for interest on any moneys received by him hereunder.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="text-underline-style: none">ARTICLE
VI<BR>
</FONT><U>Miscellaneous</U></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Instrument
Construed as Mortgage, Etc.</U> With respect to any portions of the Mortgaged Property located in any state or other jurisdiction
the laws of which do not provide for the use or enforcement of a deed of trust or the office, rights and authority of Trustee as
herein provided, the general language of conveyance hereof to Trustee is intended and the same shall be construed as words of mortgage
unto and in favor of Mortgagee and the rights and authority granted to Trustee herein may be enforced and asserted by Mortgagee
in accordance with the laws of the jurisdiction in which such portion of the Mortgaged Property is located and the same may be
foreclosed at the option of Mortgagee as to any or all such portions of the Mortgaged Property in any manner permitted by the laws
of the jurisdiction in which such portions of the Mortgaged Property is situated. This Mortgage may be construed as a mortgage,
deed of trust, chattel mortgage, conveyance, assignment, security agreement, pledge, financing statement, hypothecation or contract,
or any one or more of them, in order fully to effectuate the lien hereof and the purposes and agreements herein set forth.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release
of Mortgage</U>. If all Indebtedness secured hereby shall be paid in full in cash and all Loan Documents terminated, the lien of
this Mortgagee and this Mortgage shall automatically terminate and Mortgagee shall forthwith cause satisfaction and discharge of
this Mortgage to be entered upon the record at the expense of Mortgagor but in no event later than 14 days thereafter, and shall
execute and deliver or cause to be executed and delivered such instruments of satisfaction and reassignment as may be appropriate.
Otherwise, this Mortgage shall remain and continue in full force and effect.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any provision hereof is invalid or unenforceable in any jurisdiction, the other provisions hereof shall remain in full force
and effect in such jurisdiction and the remaining provisions hereof shall be liberally construed in favor of Trustee and Mortgagee
in order to effectuate the provisions hereof, and the invalidity or unenforceability of any provision hereof in any jurisdiction
shall not affect the validity or enforceability of any such provision in any other jurisdiction.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns of Parties</U>. The term &ldquo;Mortgagee&rdquo; as used herein shall mean and include any legal owner, holder, assignee
or pledgee of any of the Indebtedness secured hereby. The terms used to designate Trustee, Mortgagee and Mortgagor shall be deemed
to include the respective heirs, legal representatives, successors and assigns of such parties.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Satisfaction
of Prior Encumbrance</U>. To the extent that proceeds of the Note are used to pay indebtedness secured by any outstanding lien,
security interest, charge or prior encumbrance against the Mortgaged Property, such proceeds have been advanced by Mortgagee at
Mortgagor&rsquo;s request, and Mortgagee shall be subrogated to any and all rights, security interests and liens owned by any owner
or holder of such outstanding liens, security interests, charges or encumbrances, irrespective of whether said liens, security
interests, charges or encumbrances are released, and it is expressly understood that, in consideration of the payment of such other
indebtedness by Mortgagee, Mortgagor hereby waives and releases all demands and causes of action for offsets and payments to, upon
and in connection with the said indebtedness.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subrogation
of Trustee</U>. This Mortgage is made with full substitution and subrogation of Trustee and his successors in this trust and his
and their assigns in and to all covenants and warranties by others heretofore given or made in respect of the Mortgaged Property
or any part thereof.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nature
of Covenants</U>. The covenants and agreements herein contained shall constitute covenants running with the land and interests
covered or affected hereby and shall be binding upon the heirs, legal representatives, successors and assigns of the parties hereto.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.08&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
All notices, requests, consents, demands and other communications required or permitted hereunder shall be given or furnished in
accordance with the terms of the Purchase Agreement relating to the giving of notices (it being agreed to and understood that delivery
to Mortgagor of any such notice, request, consent, demand or other communication shall be deemed delivery to any Mortgagor Party).</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.09&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Mortgage is being executed in several counterparts, all of which are identical, except that to facilitate recordation, if
the Mortgaged Property is situated in more than one jurisdiction, descriptions of only those portions of the Mortgaged Property
located in, and descriptions of the Prior Mortgages (as defined herein) for, the jurisdiction in which a particular counterpart
is recorded shall be attached as <U>Exhibit A</U> thereto. An <U>Exhibit A</U> containing a description of all Mortgaged Property
wheresoever situated will be attached to that certain counterpart to be attached to a Financing Statement and filed with the Secretary
of State of ______ in the Uniform Commercial Code Records. Each of such counterparts shall for all purposes be deemed to be an
original and all such counterparts shall together constitute but one and the same instrument, <U>provided</U> <U>that</U> a facsimile
signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if
the signature were an original, not a facsimile signature.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effective
as a Financing Statement</U>. This Mortgage, among other things, covers goods which are or are to become fixtures on the real property
described herein and covers as-extracted collateral related to the real/immovable property described herein. This Mortgage shall
be effective as a financing statement (i) filed as a fixture filing with respect to all fixtures included within the Mortgaged
Property, (ii) covering as-extracted collateral with respect to all as-extracted collateral included within the Mortgaged Property
(including, without limitation, all oil, gas, other minerals and other substances of value which may be extracted from the earth
at the wellhead or minehead) and (iii) covering all other Mortgaged Property. This Mortgage is to be filed for record in the real/immovable
property records of each county or parish where any part of the Mortgaged Property is situated and may also be filed in the offices
of the Bureau of Land Management or the Minerals Management Service or any relevant state agency (or any successor agencies). The
mailing address of Mortgagor is the address of Mortgagor set forth at the end of this Mortgage and the address of Mortgagee from
which information concerning the security interests hereunder may be obtained is the address of Mortgagee set forth at the end
of this Mortgage. Nothing contained in this paragraph shall be construed to limit the scope of this Mortgage nor its effectiveness
as a financing statement covering any type of property. A carbon, photographic, facsimile or other reproduction of this Mortgage
or of any financing statement relating to this Mortgage shall be sufficient as a financing statement for any of the purposes referred
to in this Section. Without limiting any other provision herein, Mortgagor hereby authorizes Mortgagee to file, in any filing or
recording office, one or more financing statements and any renewal or continuation statements thereof.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Impairment of Security</U>. To the extent allowed by applicable law, the lien, privilege, security interest and other security
rights hereunder shall not be impaired by any indulgence, moratorium or release which may be granted including, but not limited
to, any renewal, extension or modification which may be granted with respect to any secured obligations, or any surrender, compromise,
release, renewal, extension, exchange or substitution which may be granted in respect of the Mortgaged Property (including without
limitation Production Proceeds), or any part thereof or any interest therein, or any release or indulgence granted to any borrower,
endorser, guarantor or surety of any Indebtedness.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acts
Not Constituting Waiver</U>. Any Event of Default may be waived without waiving any other prior or subsequent Event of Default.
Any Event of Default may be remedied without waiving the Event of Default remedied. Neither failure to exercise, nor delay in exercising,
any right, power or remedy upon any Event of Default shall be construed as a waiver of such Event of Default or as a waiver of
the right to exercise any such right, power or remedy at a later date. No single or partial exercise of any right, power or remedy
hereunder shall exhaust the same or shall preclude any other or further exercise thereof, and every such right, power or remedy
hereunder may be exercised at any time and from time to time. No modification or waiver of any provision hereof nor consent to
any departure by Mortgagor therefrom shall in any event be effective unless the same shall be in writing and signed by Mortgagee
and then such waiver or consent shall be effective only in the specific instances, for the purpose for which given and to the extent
therein specified. No notice nor demand on Mortgagor in any case shall of itself entitle Mortgagor to any other or further notice
or demand in similar or other circumstances. Acceptance of any payment in an amount less than the amount then due on any Indebtedness
shall be deemed an acceptance on account only and shall not in any way excuse the existence of an Event of Default hereunder.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Mortgagor&rsquo;s
Successors</U>. In the event the ownership of any Mortgaged Property or any part thereof becomes vested in a person other than
Mortgagor, then, without notice to Mortgagor, such successor or successors in interest may be dealt with, with reference to this
Mortgage and to the obligations secured hereby, in the same manner as with Mortgagor, without in any way vitiating or discharging
Mortgagor&rsquo;s liability hereunder or for the payment of the Indebtedness or performance of the obligations secured hereby.
No transfer of any Mortgaged Property, no forbearance, and no extension of the time for the payment of any Indebtedness secured
hereby, shall operate to release, discharge, modify, change or affect, in whole or in part, the liability of Mortgagor hereunder
or for the payment of the Indebtedness or performance of the obligations secured hereby, or the liability of any other person hereunder
or for the payment of the Indebtedness.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certain
Consents</U>. Except where otherwise expressly provided herein, in any instance hereunder where the approval, consent or the exercise
of judgment of Mortgagee is required, the granting or denial of such approval or consent and the exercise of such judgment shall
be within the sole discretion of Mortgagee, and Mortgagee shall not, for any reason or to any extent, be required to grant such
approval or consent or exercise such judgment in any particular manner, regardless of the reasonableness of either the request
or the judgment of such party.</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-variant: small-caps"><U>Governing
Law</U></FONT>. WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW, THIS MORTGAGE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE AND
THE LAWS OF THE UNITED STATES OF AMERICA, EXCEPT THAT TO THE EXTENT THAT THE LAW OF A STATE IN WHICH A PORTION OF THE MORTGAGED
PROPERTY IS LOCATED (OR WHICH IS OTHERWISE APPLICABLE TO A PORTION OF THE MORTGAGED PROPERTY) NECESSARILY OR, IN THE SOLE DISCRETION
OF THE MORTGAGEE, APPROPRIATELY GOVERNS WITH RESPECT TO PROCEDURAL AND SUBSTANTIVE MATTERS RELATING TO THE CREATION, PERFECTION
AND ENFORCEMENT OF THE LIENS, PRIVILEGES, SECURITY INTERESTS AND OTHER RIGHTS AND REMEDIES OF THE TRUSTEE OR MORTGAGEE GRANTED
HEREIN, THE LAW OF SUCH STATE SHALL APPLY AS TO THAT PORTION OF THE MORTGAGED PROPERTY LOCATED IN (OR WHICH IS OTHERWISE SUBJECT
TO THE LAWS OF) SUCH STATE.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-variant: small-caps"><U>Exculpation
Provisions</U></FONT>. Each of the parties hereto specifically agrees that it has a duty to read this Mortgage; and agrees that
it is charged with notice and knowledge of the terms of this Mortgage; that it has in fact read this Mortgage and is fully informed
and has full notice and knowledge of the terms, conditions and effects of this Mortgage; that it has been represented by independent
legal counsel of its choice throughout the negotiations preceding its execution of this Mortgage and has received the advice of
its attorney in entering into this Mortgage; and that it recognizes that certain of the terms of this Mortgage result in one party
assuming the liability inherent in some aspects of the transaction and relieving the other party of its responsibility for such
liability. Each party hereto agrees and covenants that it will not contest the validity or enforceability of any exculpatory provision
of this Mortgage on the basis that the party had no notice or knowledge of such provision or that the provision is not &ldquo;conspicuous.&rdquo;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>FINAL
AGREEMENT</U>. THE LOAN DOCUMENTS, THIS MORTGAGE AND THE OTHER WRITTEN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OR PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subrogation;
Prior Mortgages</U>. To the extent that proceeds of the Indebtedness are used to pay obligations secured by any outstanding lien,
privilege, security interest, charge or prior encumbrance against any Mortgaged Property (&ldquo;<U>Prior Mortgages</U>&rdquo;),
such proceeds have been advanced at Mortgagor&rsquo;s request, and the Trustee for the benefit of the Mortgagee or the Mortgagee
as agent for the party or parties advancing the same shall be subrogated to any and all rights, security interests and liens owned
by any owner or holder of such Prior Mortgages, privileges, security interests, charges or encumbrances, irrespective of whether
said liens, privileges, security interests, charges or encumbrances are released, and it is expressly understood that, in consideration
of the payment of such obligations, Mortgagor hereby waives and releases all demands and causes of action for offsets and payments
to, upon and in connection with the said obligations. Mortgagor and Mortgagee acknowledge that this Mortgage amends, restates and
consolidates the Prior Mortgages, and all liens, claims, rights, titles, interests and benefits created and granted by the Prior
Mortgages shall continue to exist, remain valid and subsisting, shall not be impaired or released hereby, shall remain in full
force and effect and are hereby renewed, extended, carried forward and conveyed as security for the Indebtedness.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Usury Laws</U>. It is the intent of Mortgagor, Mortgagee and all other parties to the Loan Documents to contract in strict
compliance with applicable usury law from time to time in effect. In furtherance thereof, it is stipulated and agreed that none
of the terms and provisions contained herein or in the other Loan Documents shall ever be construed to create a contract to pay,
for the use, forbearance or detention of money, interest in excess of the maximum amount of interest permitted to be collected,
charged, taken or received by applicable law from time to time in effect.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certain
Obligations of Mortgagor</U>. Without limiting Mortgagor&rsquo;s obligations hereunder, Mortgagor&rsquo;s liability hereunder and
the obligations secured hereby shall extend to and include all post-petition interest, expenses and other duties and liabilities
with respect to Mortgagor&rsquo;s obligations hereunder which would be owed but for the fact that the same may be unenforceable
due to the existence of a bankruptcy, reorganization or similar proceeding.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.21&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authority
of Mortgagee</U>. The holders of the Indebtedness secured hereby may, by agreement among them, provide for and regulate the exercise
of rights and remedies hereunder, but, unless and until modified to the contrary in writing signed by all such persons and recorded
in the same counties as this Mortgage is recorded, (i) all persons other than Mortgagor and its affiliates shall be entitled to
rely on the releases, waivers, consents, approvals, notifications and other acts (including, without limitation, or the appointment
or substitution of trustees hereunder and the bidding in of all or any part of the Indebtedness held by any one or more persons,
whether the same be conducted under the provisions hereof or otherwise) of Mortgagee, without inquiry into any such agreements
or the existence of required consent or approval of any holders of Indebtedness and without the joinder of any party other than
Mortgagee in such releases, waivers, consents, approvals, notifications or other acts and (ii) all notices, requests, consents,
demands and other communications required or permitted to be given hereunder may be given to Mortgagee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.22&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretation,
etc</U>. Within this Mortgage, words of any gender shall be held and construed to include any other gender, and words in the singular
number shall be held and construed to include the plural, unless the context otherwise requires. Titles appearing at the beginning
of any subdivisions hereof are for convenience only, do not constitute any part of such subdivisions, and shall be disregarded
in construing the language contained in such subdivisions. References herein to any Section, Annex, Schedule or Exhibit shall be
to a Section, an Annex, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. The word &quot;or&quot;
is not exclusive. The use herein of the word &quot;include&quot; or &quot;including&quot;, when following any general statement,
term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately
following such word or to similar items or matters, whether or not nonlimiting language (such as &quot;without limitation&quot;
or &quot;but not limited to&quot; or words of similar import) is used with reference thereto, but rather shall be deemed to refer
to all other items or matters that fall within the broadest possible scope of such general statement, term or matter.</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WITNESS THE EXECUTION
HEREOF, this _____ day of June, 2012, to be effective as of said date (the &ldquo;<U>Effective Date</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">MORTGAGOR:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2"><B>AMERICAN PETRO-HUNTER INC.,</B> a Nevada corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">By:</TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 18.6pt">&nbsp;</TD>
    <TD></TD>
    <TD>Name:&nbsp;&nbsp;&nbsp;Robert B. McIntosh</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 18.7pt">&nbsp;</TD>
    <TD></TD>
    <TD>Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">The name and address of the Mortgagor
is:<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in"><B>AMERICAN PETRO-HUNTER INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">17470 N. Pacesetter Way</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Scottsdale, AZ 85255</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Attention: Robert McIntosh</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Facsimile: (____) ____ - __________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">The name and address of the Mortgagee
is:<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in"><B>ASYM ENEGY OPPORTUNITIES LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">1055 Washington Boulevard, Suite
410</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Stamford, Connecticut 06901</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Attention: Greg Imbruce</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Facsimile: (203) 595-5600</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.10
<SEQUENCE>11
<FILENAME>v318014_ex10-10.htm
<DESCRIPTION>EXHIBIT 10.10
<TEXT>
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<HEAD>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DEPOSIT ACCOUNT CONTROL (DEFAULT) AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This DEPOSIT ACCOUNT
CONTROL AGREEMENT is dated as of July 3, 2012, and is by and among (i) AMERICAN PETRO-HUNTER INC., a Nevada Corporation, and
any Subsidiary (as defined in the Purchase Agreement)(collectively the &quot;Customer&quot;), and (ii) ASYM ENERGY OPPORTUNITIES
LLC, a Delaware limited liability company, as Senior Lender and collateral agent (in such capacity, the &ldquo;Senior Lender&rdquo;)
pursuant to that certain Purchase Agreement dated as of July 3, 2012 (as amended, restated, supplemented or otherwise modified
from time to time, the &ldquo;Purchase Agreement&rdquo;) and other agreements delivered in connection therewith, by and among
Customer, Senior Lender and the &ldquo;Purchaser&rdquo; party thereto, and WELLS FARGO BANK, N.A., a national banking association
(&quot;Bank&quot;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Senior Lender has extended,
and may in the future extend, certain credit facilities to Customer and its affiliates, and as a condition to such credit facilities,
Senior Lender has required that Customer grant to Senior Lender a security interest in certain deposit accounts maintained by Bank
for Customer. The parties are entering into this agreement to perfect Senior Lender&rsquo;s security interests in and to the accounts
and to specify certain rights and duties of the parties with respect to the accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Accounts</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement
applies to each depository account (including any money market accounts) maintained by Customer with Bank identified on <U>Exhibit
A</U> attached hereto and made a part hereof in addition to any similar account(s) established and maintained in the future (such
accounts, all funds at any time on deposit therein and any proceeds, additions, replacements or substitutions of such account or
funds therein are collectively referred to herein as &quot;Deposit Account&quot;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer, pursuant
to the First Lien Security Agreement, has granted a security interest in the Deposit Account to Senior Lender in the Deposit Account
referred to herein. Bank acknowledges the security interest granted by Customer to Senior Lender in the Deposit Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date
of this Agreement, Bank does not know of any claim to or interest in the Deposit Account, except for claims and interests of the
parties hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 2)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control
of Deposit Account</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As evidenced
by this Agreement, the Deposit Account shall be under the control of Senior Lender. Senior Lender shall at all times have &quot;control&quot;
(as defined in Section 8-106 of the Uniform Commercial Code as adopted in the state of New York) of the Deposit Account. Bank shall
comply with instructions originated by Controlling Lender (hereinafter defined) directing disposition of funds in the Deposit Account
without further consent by Customer. As used herein, &ldquo;Controlling Lender&rdquo; means (i) Senior Lender, until such time
as Senior Lender has provided Bank with a written notice that Senior Lender has ceased to be the Controlling Lender hereunder (such
notice being the &ldquo;Controlling Lender Notice&rdquo;). It is understood and agreed hereby that Bank shall rely exclusively
on a Controlling Lender Notice as to the determination of whether the Senior Lender is the Controlling Lender hereunder and shall
be under no obligation to make any independent investigation thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless Bank
shall have received written notice from Controlling Lender (a &quot;Default Notice&quot;) that an &quot;event of default&quot;
has occurred under the loan documents between Customer and Controlling Lender (an &quot;Event of Default&quot;), Customer shall
have full right of access to and withdrawal from the Deposit Account in its normal and ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to paragraph
(b) above and paragraph (d) below, from and after the receipt by the Bank of a Default Notice (and until Bank receives a written
withdrawal of such notice), (i) Controlling Lender shall have exclusive dominion and control over the Deposit Account, (ii) neither
Customer nor any person acting through or on behalf of Customer shall have any right of access to or withdrawal from the Deposit
Account, and (iii) Bank shall not comply with any instructions originated by Customer or any such person directing disposition
of funds in the Deposit Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Default
Notice shall be in writing, shall refer to this Agreement and shall include clear and specific instruction with respect to the
disposition of funds in the Deposit Account. Bank shall have a period of time, not exceeding two (2) Business Days (hereinafter
defined) following the date on which Bank receives a Default Notice to act on such Default Notice. Bank may rely on a Default Notice
notwithstanding any other or conflicting information it may receive from Customer. As used in this Agreement, the term &quot;Business
Day&quot; means any day on which Bank and Senior Lender are not authorized or required to close.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 3)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Matters
Related to Deposit Account</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#9;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank waives
any right it may now or hereafter have to apply amounts in the Deposit Account against the payment of any indebtedness from time
to time owing to Bank from Customer; provided, however, that Bank shall have the right at any time to debit the Deposit Account
(i) to pay the Bank's routine fees and charges applicable to the Deposit Account, (ii) in connection with Uncollectible Drafts
(hereinafter defined) as provided in paragraph (b) below, and (iii) in order to correct errors as provided in paragraph (c) below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Any item deposited
by or on behalf of Customer in the Deposit Account which is returned for insufficient or uncollected funds will be re-deposited
by Bank one time. If such item is returned unpaid a second time or if such amount is otherwise uncollectible by Bank (&quot;Uncollectible
Draft&quot;) (including by any &quot;stop payment order&quot; having been applied to such draft), Bank may debit the Deposit Account
for (i) the amount of such Uncollectible Draft (if such amount has actually been paid by Bank to Senior Lender), and (ii) any routine
fees due to Bank or charges incurred by Bank in connection with its deposit or collection attempts (collectively, &quot;Costs of
Uncollectible Drafts&quot;). If the amount in the Deposit Account is insufficient to fully reimburse Bank for the Costs of Uncollectible
Drafts, Customer and Controlling Lender agree to pay such deficiency to Bank (provided that Controlling Lender's obligations shall
be limited to any such amount that has not been paid in full by Customer within ten (10) Business Days after demand on Customer
by Bank and only to the extent that a Default Notice was in effect at the time the Costs of Uncollectible Drafts arose and the
Controlling Lender received proceeds from the corresponding Uncollectibable Draft).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Bank shall have
the right to debit from the Deposit Account any amounts deposited therein in error or as necessary to correct processing errors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Senior Lender
and Customer agree that, except as specifically provided in this Agreement, the Deposit Account will be subject to, and Bank's
operation of the Deposit Account will be in accordance with, the terms and provisions of Bank's separate deposit account agreement
governing the Deposit Account (&quot;Account Agreement&quot;), a copy of which Customer and Senior Lender acknowledge having received.
In the event that the terms of the Account Agreement shall conflict with the terms of this Agreement, the terms of this Agreement
shall prevail.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 4)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Statements,
Notice of Adverse Claims</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Bank will promptly
send copies of all statements, confirmations and other correspondence concerning the Deposit Account simultaneously to each of
Customer and Senior Lender at their addresses listed below their signatures to this Agreement (or such other address as they may
provide to Bank).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Bank will promptly
notify Senior Lender and Customer (i) if any other person claims that it has an interest in the Deposit Account, (ii) if any other
person requests that Bank enter into an agreement related to the Deposit Account with such person, or (iii) if any other person
inquires as to the existence of any other agreement related to the Deposit Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 5. &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
Matters Affecting Bank</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;This Agreement
does not create any obligation of Bank except for those expressly set forth in this Agreement, and no implied obligations shall
be read into this Agreement against Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Bank may rely
on notices and communications it reasonably believes have been given by an authorized representative of Senior Lender or Customer,
and Bank shall have no obligation to review or confirm that actions taken pursuant to any such notice in accordance with this Agreement
comply with any other agreement or document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Bank shall not
be liable under this Agreement for interruption of services under this Agreement resulting from <I>force majeure</I> or failure
of computer, electronic or other services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;If Customer
becomes subject to a bankruptcy proceeding or if Bank is otherwise served with legal process by any third party asserting an adverse
claim against the Deposit Account or any sums on deposit therein which Bank reasonably believes affects funds deposited in the
Deposit Account, Bank shall have the right to place a hold on funds in the Deposit Account until such time as Bank receives an
appropriate court order or other assurances reasonably satisfactory to Bank establishing that funds may continue to be disbursed
in accordance with this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;If at any time
Bank, in good faith and in its reasonable judgment, is in reasonable doubt as to the action it should take under this Agreement,
Bank shall have the right (i) except as to amounts certified by Customer as necessary for core operations of Customer, to place
a hold on funds in the Deposit Account until such time as Bank receives instructions from Controlling Lender or other assurances
reasonably satisfactory to Bank as to the disposition of funds in the Deposit Account, or (ii) to commence an interpleader action
in an appropriate court and to take no further action except in accordance with instructions from Controlling Lender or in accordance
with the final order of the court in such action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;All Bank's obligations
under this Agreement shall be subject to applicable laws and regulations and to the policies and procedures of Bank. Nothing in
this Agreement shall required Bank to act in violation of any law, regulation, policy or procedure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Bank will not
be liable to any party hereunder for any expense, claim, cause of action, liability, loss, damage or cost arising out of or relating
to the Deposit Account or this Agreement other than those resulting from Bank&rsquo;s acts or omissions constituting negligence
or willful misconduct, and Company agrees to indemnify and hold Bank harmless from any such expense, claim, cause of action, liability,
loss, damages or cost resulting from actions the Bank takes in accordance with the provisions of this Agreement. Except with respect
to Bank's obligations under Section 2 of this Agreement (for which full compliance with the terms of this Agreement shall be deemed
to be the exercise of ordinary care), Bank&rsquo;s substantial compliance with its standard procedures for provision of the services
required under this Agreement shall be deemed to constitute the exercise of ordinary care.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Bank shall not
be liable for losses or delays resulting from computer malfunction, interruption of communication facilities, labor difficulties,
acts of God, terrorist acts, and other causes beyond Bank&rsquo;s reasonable control. In no event shall Bank be liable for any
indirect, special, consequential, exemplary or punitive damages including, without limitation, lost profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 6.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Fees
and Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Customer shall pay
the customary fees and expenses of Bank in connection with the Deposit Account. Customer shall also pay all costs and expenses
(including reasonable attorneys fees incurred in connection with the interpretation or enforcement of this Agreement). Such fees
and expenses may be debited from the Account by Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 7.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Termination,
Survival</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Upon an Event
of Default, Senior Lender may terminate this Agreement by giving joint written notice to Bank and Customer and shall terminate
this Agreement when the security interest granted pursuant to the First Lien Security Agreement has been terminated, and in such
event Bank shall follow the written directions of Controlling Lender with respect to the disposition of funds in the Deposit Account.
Bank may terminate this Agreement upon sixty (60) days written prior notice to Customer and Senior Lender, and in such event Bank
shall follow the directions of Controlling Lender with respect to the disposition of funds in the Deposit Account. Customer may
not terminate this Agreement without prior written consent of Senior Lender. Termination of this Agreement does not terminate the
Deposit Accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;If Senior Lender
notifies Bank that Senior Lender's security interest in the Deposit Account has terminated, this Agreement will immediately terminate,
and Bank will follow the directions of Customer with respect to the disposition of funds in the Deposit Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Section 5 of
this Agreement shall survive the termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 8.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing
Law and Venue</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(a)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;This Agreement sets forth the entire
understanding of the parties with respect to the subject matter hereof and supersedes all other oral or written representations
and understandings. The formation, interpretation, and performance of this Agreement shall be governed by the internal laws of
the State of New York. This Agreement may only be amended or modified in writing signed in advance by Senior Lender, Company and
an authorized representative of Wells Fargo Bank, N.A. All parties have carefully read and understand this Agreement, and acknowledge
receipt of a copy hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(b)&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;The parties expressly stipulate that
any litigation arising under this Agreement shall be brought in any court of appropriate jurisdiction sitting in New York City,
Borough of Manhattan, New York. The parties agree that New York be both the place of making and the place of performance of this
Agreement and all parties consent to jurisdiction in the State of New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(c) &#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;To the fullest extent permitted
by law, each of the parties hereto intentionally and deliberately gives up the right to a trial by jury to resolve each dispute,
claim, demand, cause of action and controversy between the parties hereto arising out of, or related to, this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 9.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;Amendments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No amendments of this
Agreement will be binding unless it is in writing and signed by all parties to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 10.&#9;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severability</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent a provision
of this Agreement is unenforceable; this Agreement will be construed as if the unenforceable provision were omitted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 11.&#9;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successors
and Assigns</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The terms of this agreement
shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assignees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 12.&#9;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any notice, request
or other communication required or permitted to be given under this Agreement shall be in writing and deemed to have been properly
given (a) when delivered in person, (b) when sent by telecopy or other electronic means and electronic conformation of error free
receipt is received or (c) two (2) days after being sent by certified or registered United States mail, return receipt requested,
postage prepaid, addressed to the party at the address set forth bellow.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29%; text-autospace: none">Customer:</TD>
    <TD STYLE="width: 71%; border-bottom: windowtext 1pt solid; text-autospace: none">American Petro-Hunter Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Address:</TD>
    <TD STYLE="text-autospace: none">17470 North Pacesetter Way</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">Scottsdale, AZ&nbsp; 85255</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Attention:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">Robert&nbsp; McIntosh</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Telephone Number:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">(480) 305-2052</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Fax Number:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">(480) 305-2001</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Email:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">rm@aaphinfo.com</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29%; text-autospace: none; text-align: justify">Senior Lender:</TD>
    <TD STYLE="width: 71%; text-autospace: none; text-align: justify">ASYM Energy Opportunities LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">c/o ASYM Energy Partners LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Address:</TD>
    <TD STYLE="text-autospace: none; text-align: justify">1055 Washington Blvd,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">Suite 410</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">Stamford, CT&nbsp; 06901</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Attention:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">Greg Imbruce</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Telephone Number:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">(203) 595-5600</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Fax Number:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">(203) 742-1660</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Email:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">admin@asymenergy.com</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 29%; text-autospace: none; text-align: justify">Bank:</TD>
    <TD STYLE="width: 71%; border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">Wells Fargo Bank, N.A.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Address:</TD>
    <TD STYLE="text-autospace: none; text-align: justify">8601 N. Scottsdale Rd</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">Suite 250</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">Scottsdale, AZ&nbsp; 85253</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Attention:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">Doug Johnston</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Telephone Number:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">(480) 348-5032</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Fax Number:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">(480) 348-5406</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: justify">Email:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: justify">doug.johnston@wellsfargo.com</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 13.&#9;&nbsp;&nbsp;&nbsp;&nbsp;Joint
and Several Obligations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If Customer consists
of more than one person or entity, each shall be jointly and severally liable to perform Customer's obligations under this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 14.&#9;&nbsp;&nbsp;&nbsp;&nbsp;Duplicate
Originals, Counterparts</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Agreement may
be executed in any number of may be executed in any number of counterparts (including by facsimile or other approved means of electronic
transmission), and by the different parties hereto or thereto on the same or separate counterparts, each of which shall be deemed
to be an original instrument but all of which together shall constitute one and the same agreement. Each party agrees that it will
be bound by its own facsimile signature and that it accepts the facsimile signature of each other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 15.&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entire
Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Agreement constitutes
the entire agreement of the parties hereto with respect to the subject matter hereof. There are no oral agreements among the parties
hereto.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their respective authorized officers, effective as of the date
first above written.</P>

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    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">CUSTOMER:</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">AMERICAN PETRO-HUNTER INC., a Nevada corporation</TD></TR>
<TR>
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 18%; vertical-align: top; text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 40%; vertical-align: top; text-autospace: none; text-align: justify">&nbsp;</TD>
    </TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify">By:</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD>
    </TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify">&nbsp;</TD>
    </TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify">Name:</TD>
    <TD STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">Robert B. McIntosh</TD>
    </TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify">&nbsp;</TD>
    </TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-autospace: none; text-align: justify">Title:</TD>
    <TD STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">President and Chief Executive Officer</TD>
    </TR>
</TABLE>
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    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 18%; text-autospace: none; text-align: justify">SENIOR LENDER:</TD>
    <TD STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid; width: 40%">ASYM ENERGY OPPORTUNITIES LLC, &nbsp;a Delaware limited liability company</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">By:</TD>
    <TD STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">Name:</TD>
    <TD STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">Greg Imbruce</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: justify">Title:</TD>
    <TD STYLE="text-autospace: none; text-align: justify; border-bottom: Black 1pt solid">President</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 3in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 18%; text-autospace: none">BANK:</TD>
    <TD STYLE="width: 40%; border-bottom: windowtext 1pt solid; text-autospace: none">Wells Fargo Bank, N.A.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none">Name:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none">Title:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="margin: 0"></P>

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<TYPE>EX-99.1
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<FILENAME>v318014_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #CC0000">American Petro-Hunter
Announces $10 Million Credit Facility</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
<B>SCOTTSDALE, AZ &mdash; June 25, 2012</B><FONT STYLE="color: black; background-color: white">&mdash;American Petro-Hunter, Inc.
(OTCBB: AAPH) (&quot;American Petro-Hunter&quot; or the &quot;Company&quot;) is pleased to announce that the Company entered into
a three-year credit facility with ASYM Energy Partners LLC and its affiliates (&quot;ASYM&quot;), a private investment firm focused
on the energy industry. The credit facility, in the amount of $10 million, is secured by all of the Company's assets. Proceeds
from the loan will be utilized to fund the development drilling of oil properties located in central Oklahoma as well as acquisitions,
repayment of certain accounts payable, and working capital.<BR>
<BR>
As part of the transaction, ASYM will advise the Company in the areas of operational, technical, engineering and financial matters.
In addition, a total of approximately $2.7 million of liabilities were either forgiven or exchanged for common stock in the Company.
This included the forgiveness of the Royalty Interest Payable, the exchange of equity for accounts payable that reduced the balance
to approximately $0.3 million, and the amendment of the convertible debentures which extended the maturity date to six months after
the maturity of the credit facility, and removed all liens and security interests. Also as part of the transaction, the 6% overriding
royalty interest held by certain convertible debenture holders was contributed to the Company.&nbsp;<BR>
<BR>
The Company intends to utilize the credit facility to initially fund the development drilling of the Company's North and South
Oklahoma oil focused horizontal drilling program, primarily targeting the Mississippi Lime and the Woodford Shale. The credit facility
will also allow the Company to participate for its full working interest participation and accelerate production as well as allow
the Company to consider acquisitions of projects, production and leases.&nbsp;<BR>
<BR>
Company President Robert McIntosh states, &quot;We are extremely pleased to have closed this milestone funding arrangement with
ASYM and are expecting outstanding upside for the development of our projects, especially with the welcome inclusion of added expertise
bolstering our financial and engineering strengths. We have aggressive growth plans ahead and look forward to our new funding partner's
active engagement that we expect will allow the Company to gain the necessary scale through significant production and cash flow
growth. As we meet our business objectives, we should be in a position to migrate to an exchange like the NYSE AMEX or NASDAQ with
the goal of providing increased liquidity to our shareholders.&quot;<BR>
<BR>
About American Petro-Hunter, Inc. (OTCBB: AAPH)<BR>
The Company is an exploration and production (E&amp;P) Company focused on the acquisition and horizontal development of the Mississippi
Lime and Woodford oil formations located in Oklahoma and Kansas. The Company operates from its offices in Wichita, Kansas. Visit
us at: www.americanpetrohunter.com<BR>
<BR>
About ASYM Energy Partners LLC<BR>
ASYM Energy Partners LLC is a private investment firm that provides solution capital to the oil and gas exploration and production,
oilfield service and equipment sectors of the North American energy industry. The Company invests in public as well as startup
and later stage private companies in a variety of transaction structures, including recapitalizations, restructurings and numerous
types of direct participation and project financings. ASYM specializes in partnering with mineral lease owners and operators that
require development drilling capital in addition to operational, technical, engineering and financial expertise. Since its inception,
ASYM has distinguished itself as a flexible and innovative source of capital and a value-added partner by actively assisting in
the management of growth opportunities.&nbsp;<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
<FONT STYLE="font-size: 10pt; color: black; background-color: white">Notice Regarding Forward-Looking Statements<BR>
This news release contains &quot;forward-looking statements&quot; as that term is defined in Section 27A of the United States Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical
are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.
Such forward-looking statements include, among other things, scope and type of consulting services provided by ASYM, use of proceeds,
future acquisitions, success of projects, growth and strategic plans. Actual results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration
and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and
we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from
those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained
in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove
to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure
outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic
reports filed from time-to-time with the Securities and Exchange Commission.<BR STYLE="mso-special-character: line-break">
<BR STYLE="mso-special-character: line-break">
</FONT></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">ON BEHALF OF THE BOARD</TD>
    <TD STYLE="width: 55%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">American Petro-Hunter, Inc.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Robert McIntosh</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>President &amp; C.E.O.</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; text-underline-style: none">To
find out more about American Petro-Hunter, Inc. (OTCBB: AAPH), visit our website at </FONT><U>www.americanpetrohunter.com</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investor Relations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mountainview IR Services, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1-888-521-7762</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>investors@americanpetrohunterinc.com</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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