Texas South Energy, Inc. entered into an asset purchase agreement with Sydson Energy, Inc. In connection with the Closing of the Asset Purchase Agreement, the Company entered into an employment agreement with Mr. Mayell. The term of his employment agreement began on January 4, 2017 and terminates on December 31, 2019. Upon December 31 of each calendar year, commencing on December 31, 2017, the term shall be extended for one additional year, provided that neither the Company nor Employee notify the other on or prior to 90 days before the applicable December 31 date that either party does not intend to extend this Agreement.

The Company shall pay to Mr. Mayell a base salary of $420,000 per annum and Mr. Mayell shall be entitled to standard and customary benefits. Mr. Mayell has agreed to standard non-disclosure and non-competition provisions. Upon termination of Mr. Mayell by the company other than for cause, Mr. Mayell is entitled to receive three years of his then compensation as severance.

Subsequent to the Closing, James M. Askew resigned as an executive officer and director of company and entered into a consulting agreement with the company that began on January 5, 2017 and terminates on December 31, 2019.