Promissory Note, Royalty Interests and Judgment for Sale

Sale of Promissory Note, Royalty Interests and Judgment describe as: (i) Promissory Note (the “Note”) in the principal amount of $500,000.00 secured by a judgment in the sum of $500,000.00. The Note could be pre-paid at a discounted amount until maturity in July, 2017. 3. (ii) a 5% royalty interest on certain mineral interests on Padre Island known as the “Disputed Interests” reduced to 2.5% at the time of full payment of the Note. (iii) 1.5% royalty interest on other lands on Padre Island known as the “Remaining Interests” which could be reacquired by Balli for additional payment of $500,000.00. and (iv) a Judgment entered on April 28, 2014 by the bankruptcy court against Balli Minerals & Royalties, LLC in Adversary number 08-04192.