Document:

THIS WARRANT AND THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

 

	Warrant No. 9	June 23, 2013

 

EOS PETRO, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

**** 600,000 Shares of Common Stock ****

 

THIS WARRANT CERTIFIES THAT, for
value received, Wealth Preservation LLC, or registered assigns (the “Holder”), is entitled to subscribe
for and purchase from Eos Petro, Inc., a Nevada corporation (the “Company”), with its principal offices located
at 1999 Avenue of the Stars, Suite 2520, Los Angeles, California 90067, up to and including the number of fully paid and nonassessable
shares of common stock, par value $0.0001 per share (the “Common Stock”) of the Company set forth above (the
“Warrant Shares”), at the exercise price of $2.50 per share (the “Warrant Exercise Price”)
(and as adjusted from time to time pursuant to Section 3 hereof), in accordance with the exercise procedure set forth in Section
1 hereof and prior to or upon July 31, 2018 (the “Expiration Date”), subject to the provisions and upon the
terms and conditions hereinafter set forth.

 

This Warrant is issued in connection with
a certain Employment Agreement, dated as of the date hereof (as amended, modified or supplemented, the “Employment Agreement”),
between Company and Martin Oring. Pursuant to the Employment Agreement, Mr. Oring has agreed to act as the CEO of the Company.
Terms used but not defined in this Warrant shall have the meanings given in the Employment Agreement.

 

		1.	Exercise Procedure; Method of Exercise; Cash Payment;
Issuance of New Warrant.

 

(a)          The
shares underlying this warrant shall vest and become exercisable as follows: commencing on July 31, 2013 and continuing thereafter
on the last day of each calendar month that the Employment Agreement remains in effect, 50,000 Warrant Shares shall vest and become
exercisable. Thereafter, any portion of this Warrant that has vested may be exercised, in whole or in part and from time to time,
at any time until the Expiration Date, pursuant to the provisions contained in this Section 1. However, if Martin Oring’s
Employment Agreement is terminated for any reason, any Warrant Shares which have not yet vested will not vest.

 

(b)          If
Holder elects to exercise any portion of this this Warrant that has vested, Holder shall surrender this Warrant (with the notice
of exercise substantially in the form attached hereto as Exhibit A duly completed and executed) at the principal
executive offices of Company, accompanied by payment to Company, by: (a) certified or bank check acceptable to Company; (b) cancellation
by Holder of bona fide indebtedness of Company to Holder, if agreed to in advance in writing by Company in the Company’s
sole and absolute discretion; (c) by wire transfer to an account designated by Company; or (d) any combination of (a), (b) and
(c), of an amount equal to the then applicable Warrant Exercise Price multiplied by the number of Warrant Shares then being purchased.

 

    	 

    	 

    

 

(c)          The
person or persons in whose name(s) any certificate(s) representing the Warrant Shares shall be deemed to have become the holder(s)
of record of, and shall be treated for all purposes as the record holder(s) of, the shares represented thereby (and such shares
shall be deemed to have been issued) immediately prior to the close of business on the date or dates upon which this Warrant is
exercised. In the event of any exercise of the rights represented by this Warrant, certificates for the Warrant Shares so purchased
shall be delivered to the Holder hereof as soon as possible and in any event within twenty (20) Business Days after such exercise
and, unless this Warrant has been fully exercised or expired, a new warrant having the same terms as this Warrant and representing
the remaining portion of such shares, if any, with respect to which this Warrant shall not then have been exercised shall also
be issued to the Holder hereof as soon as possible and in any event within such twenty (20) Business Day period. For purposes of
this Warrant, the term “Business Day” means any day other than Saturday, Sunday or other day on which commercial
banks in Los Angeles, California are authorized or required by law to remain closed.

 

2.            Reservation
of Shares. During the period within which the rights represented by this Warrant may be exercised, the Company will at all
times have authorized, and reserved for the purpose of the issuance upon exercise of the purchase rights evidenced by this Warrant
a sufficient number of shares of its capital stock to provide for the exercise of the rights represented by this Warrant.

 

3.            Adjustment
of Warrant Exercise Price and Number of Shares. The number and kind of securities purchasable upon the exercise of this Warrant
and the Warrant Exercise Price shall be subject to adjustment to the nearest whole share (one-half and greater being rounded upward)
and nearest cent (one-half cent and greater being rounded upward) from time to time upon the occurrence of certain events, as follows.
Each of the adjustments provided by the subsections below shall be deemed separate adjustments and any adjustment of this
Warrant pursuant to one subsection of this Section 3 shall preclude additional adjustments for the same event or transaction
by the remaining subsections.

 

(a)          Reclassification.
In case of any reclassification or change of securities of the class issuable upon exercise of this Warrant (other than a change
in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination)
into the same or a different number or class of securities, the Company shall duly execute and deliver to the Holder of this Warrant
a new warrant (in form and substance reasonably satisfactory to the Holder of this Warrant), so that the Holder of this Warrant
shall thereafter be entitled to receive upon exercise of this Warrant, at a total purchase price not to exceed that payable upon
the exercise of the unexercised portion of this Warrant, and in lieu of the shares of Common Stock theretofore issuable upon exercise
of this Warrant, the kind and amount of shares of stock, other securities, money and property receivable upon such reclassification
or change by a holder of the number of shares then purchasable under this Warrant. The Company shall deliver such new warrant as
soon as possible and in any event within five (5) Business Days after such reclassification or change. Such new warrant shall provide
for adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 3. The
provisions of this subparagraph (a) shall similarly apply to successive reclassifications or changes.

 

(b)          Stock
Splits or Combination of Shares. If the Company at any time while this Warrant remains outstanding and unexpired shall subdivide
(by stock split) or combine (by reverse stock split) its outstanding shares of capital stock of the class into which this Warrant
is exercisable, the Warrant Exercise Price shall be proportionately decreased in the case of a subdivision or increased in the
case of a combination, effective at the close of business on the date the subdivision or combination becomes effective and the
number of shares of Common Stock issuable upon exercise of this Warrant shall be proportionately increased in the case of a subdivision
or decreased in the case of a combination, and in each case to the nearest whole share, effective at the close of business on the
date the subdivision or combination becomes effective. The provisions of this subparagraph (b) shall similarly apply to successive
subdivisions or combinations of outstanding shares of capital stock into which this Warrant is exercisable.

 

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(c)          Common
Stock Dividends. If the Company at any time while this Warrant is outstanding and unexpired shall pay a dividend with respect
to Common Stock payable in Common Stock, then: (i) the Warrant Exercise Price shall be adjusted, from and after the date of determination
of stockholders entitled to receive such dividend or distribution (the “Record Date”), to that price determined
by multiplying the Warrant Exercise Price in effect immediately prior to such date of determination by a fraction (A) the numerator
of which shall be the total number of shares of Common Stock outstanding immediately prior to such dividend or distribution, and
(B) the denominator of which shall be the total number of shares of Common Stock outstanding immediately after such dividend or
distribution and (ii) the number of shares of Common Stock issuable upon exercise of this Warrant shall be proportionately adjusted,
to the nearest whole share, from and after the Record Date by multiplying the number of shares of Common Stock purchasable hereunder
immediately prior to such Record Date by a fraction (A) the numerator of which shall be the total number of shares of Common Stock
outstanding immediately after such dividend or distribution, and (B) the denominator of which shall be the total number of shares
of Common Stock outstanding immediately prior to such dividend or distribution. The provisions of this subparagraph (c) shall similarly
apply to successive Common Stock dividends by the Company.

 

(d)          No
adjustment in the Warrant Exercise Price shall be required unless such adjustment would require a cumulative decrease of at least
$0.01 in such price; provided, however, that any adjustments that by reason of this Section 3 are not required
to be made shall be carried forward and taken into account in any subsequent adjustment until made.  All calculations under
this Section 3(h) shall be made to the nearest cent (with $.005 being rounded upward) or to the nearest one-tenth of
a share (with .05 of a share being rounded upward), as the case may be.

 

(e)          In
any case in which Section 3 provides that an adjustment shall become effective on the day next following the record date for
an event, the Company may without penalty defer until the occurrence of such event issuing to the Holder with respect to any part
of this Warrant exercised after such record date and before the occurrence of such event the additional shares of Common Stock
issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable
upon such conversion before giving effect to such adjustment.

 

(f)          If,
at any time or from time to time while this Warrant is outstanding any event occurs of the type contemplated by the provisions
of this Section 3 but not expressly provided for by such provisions (including the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then the Company’s Board of Directors will make an appropriate
adjustment in the Warrant Exercise Price so as to protect the rights of the holder; provided that no such adjustment will increase
the Warrant Exercise Price as otherwise determined pursuant to this Section 3.

 

4.            Notice
of Adjustments. Whenever the Warrant Exercise Price or the number of shares of Common Stock purchasable hereunder shall be
adjusted pursuant to Section 3 above, the Company shall deliver a written notice, setting forth, in reasonable detail, the event
requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the Warrant Exercise
Price and the number of shares of Common Stock purchasable hereunder after giving effect to such adjustment, and shall use commercially
reasonable efforts to cause copies of such notice to be delivered to the Holder of this Warrant within three (3) Business Days
after the occurrence of the event resulting in such adjustment at such Holder’s last known address in accordance with Section
9 hereof.

 

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5.            Fractional
Shares. No fractional shares will be issued in connection with any exercise hereunder, but in lieu of such fractional shares,
the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number.

 

6.            Compliance
with Securities Act of 1933; Transfer of Warrant or Shares.

 

(a)          Compliance
with Securities Act of 1933. The Holder of this Warrant, by acceptance hereof, agrees that this Warrant, the Warrant Shares
and the capital stock issuable upon conversion of the Warrant Shares (collectively, the “Securities”) are being
acquired for investment and that such holder will not offer, sell, transfer or otherwise dispose of the Securities except under
circumstances which will not result in a violation of the Securities Act of 1933, as amended (the “Securities Act”)
and any applicable state securities laws. Upon exercise of this Warrant, unless the Warrant Shares being acquired are registered
under the Securities Act and any applicable state securities laws or an exemption from such registration is available, the Holder
hereof shall confirm in writing that the Warrant Shares so purchased are being acquired for investment and not with a view toward
distribution or resale in violation of the Securities Act and shall confirm such other matters related thereto as may be reasonably
requested by the Company. The Warrant Shares (unless registered under the Securities Act and any applicable state securities laws)
shall be stamped or imprinted with a legend in substantially the following form: 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY
TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Such legend shall be removed by the Company, upon the request
of a Holder, at such time as the restrictions on the transfer of the applicable security shall have terminated.

 

(b)          Transferability
of the Warrant. Subject to compliance with Section 6(c) below, which provisions are intended to ensure compliance with applicable
federal and states securities laws, the Securities may be transferred by the Holder hereof, in whole or in part and from time to
time.

 

(c)          Method
of Transfer. With respect to any offer, sale, transfer or other disposition of the Securities, the Holder hereof shall prior
to such offer, sale, transfer or other disposition:

 

(i)          surrender
this Warrant or certificate representing Warrant Shares at the principal executive offices of the Company or provide evidence reasonably
satisfactory to the Company of the loss, theft or destruction of this Warrant or certificate representing Warrant Shares and an
indemnity agreement reasonable satisfactory to the Company,

 

(ii)         pay
any applicable transfer taxes or establish to the satisfaction of the Company that such taxes have been
paid,

 

(iii)        deliver
a written assignment to the Company in substantially the form attached hereto as Exhibit B or appropriate stock power
duly completed and executed prior to transfer, describing briefly the manner thereof, and

 

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(iv)        deliver
a written opinion of such Holder’s counsel, or other evidence, if reasonably requested by the Company, to the effect that
such offer, sale, transfer or other disposition may be effected without registration or qualification (under the Securities Act
as then in effect and any applicable state securities law then in effect) of the Securities. 

As soon as reasonably practicable after receiving the items
set forth above, the Company shall notify the Holder that it may sell, transfer or otherwise dispose of the Securities, all in
accordance with the terms of the notice delivered to the Company. If a determination has been made pursuant to this Section 6(c)
that the opinion of counsel for the Holder or other evidence is not reasonably satisfactory to the Company, the Company shall so
notify the Holder promptly with details of such determination. Notwithstanding the foregoing, the Securities may, as to such federal
laws, be offered, sold or otherwise disposed of in accordance with Rule 144 under the Securities Act if the Company satisfied the
provisions thereof and provided that the Holder shall furnish such information as the Company may reasonably request to provide
a reasonable assurance that the provisions of Rule 144 have been satisfied. Each certificate representing this Warrant or Warrant
Shares thus transferred (except a transfer pursuant to Rule 144 or an effective registration statement) shall bear a legend as
to the applicable restrictions on transferability in order to ensure compliance with applicable federal and state securities laws,
unless in the aforesaid opinion of counsel to the Holder and to the reasonable satisfaction of the Company, such legend is not
required in order to ensure compliance with such laws. Upon any partial transfer of this Warrant, the
Company will issue and deliver to such new holder a new warrant (in form and substance similar to this Warrant) with
respect to the portion transferred and will issue and deliver to the Holder a new warrant (in form and substance similar
to this Warrant) with respect to the portion not transferred as soon as possible and in any event
within five (5) Business Days after such transfer.

 

7.            No
Rights as Shareholders; Information. Prior to exercise of this Warrant, the Holder of this Warrant, as such, shall not be entitled
to vote the Warrant Shares or receive dividends on or be deemed the holder of such shares, nor shall anything contained herein
be construed to confer upon the Holder of this Warrant, as such, any of the rights of a shareholder of the Company or any right
to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to receive notice
of meetings, or to receive dividends or subscription rights or otherwise until this Warrant shall have been exercised and the shares
of Common Stock purchasable upon the exercise hereof shall have become deliverable, as provided herein.

 

8.            Modification
and Waiver; Effect of Amendment or Waiver. This Warrant and any provision hereof may be modified, amended, waived, discharged
or terminated only by an instrument in writing, designated as an amendment to this Warrant and executed by a duly authorized officer
of the Company and the Holder of this Warrant. Any waiver or amendment effected in accordance with this Section 8 shall be binding
upon the Holder, each future holder of this Warrant or of any shares purchased under this Warrant (including securities into which
such shares have been converted) and the Company.

 

9.            Notices
and Payments. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon,
(a) personal delivery or telecopy, (b) one (1) Business Day after deposit with a nationally recognized overnight delivery service
such as Federal Express, with postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following
addresses, or at such other addresses as a party may designate by written notice to each of the other parties hereto or (c) four
(4) Business Days following the date of deposit in the United States mails, first-class postage prepaid, addressed to each of the
other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by written notice
to each of the other parties hereto.

 

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	COMPANY	:	Eos Petro, Inc.
	 	 	Attention: Nikolas Konstant
	 	 	1999 Avenue of the Stars, Suite 2520
	 	 	Los Angeles, CA 90067
	 	 	Tel: (310) 552-1555
	 	 	Fax: (424) 288-5650
	 	 	 
	HOLDER:	 	Wealth Preservation, LLC
	 	 	Attention: Martin Oring
	 	 	7582 Hawks Landing Drive.
	 	 	West Palm Beach, FL 33412

 

10.         Successors.
The obligations of the Company relating to the Warrant Shares shall inure to the benefit of the successors and assigns of the Holder
hereof and shall be binding upon any successor entity. Upon such event, the successor entity shall assume the obligations of this
Warrant, and this Warrant (or any substitute warrant as provided hereinbefore) shall be exercisable for the securities, cash and
property of the successor entity on the terms provided herein.

 

11.         Lost
Warrants or Stock Certificates. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant or any stock certificate and, in the case of any such loss, theft or destruction, upon receipt of
an indemnity agreement reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation
of such mutilated Warrant or stock certificate, the Company will issue and deliver a new warrant (containing the same terms as
this Warrant) or stock certificate, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate, and any such
lost, stolen, destroyed or mutilated Warrant or stock certificate shall thereupon become void.

 

12.         Descriptive
Headings. The descriptive headings of the several paragraphs of this Warrant are inserted for convenience only and do not constitute
a part of this Warrant. The language in this Warrant shall be construed as to its fair meaning without regard to which party drafted
this Warrant.

 

13.         Governing
Law; Jurisdiction. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be
governed by, the laws of the State of Nevada, without reference to principles governing choice or conflicts of laws. Each party
hereby agrees to submit any dispute under this Warrant to arbitration in accordance with the Services Agreement and irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City and County of Los Angeles, California
for the entry of any judgment from such arbitration, 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 arbitrator or court, that such proceeding
is brought in an inconvenient forum or that the venue of such proceeding is improper. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.

 

14.         WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A JURY IN ANY LEGAL PROCEEDING
ARISING OUT OR A RELATED TO THIS AGREEMENT, THE NOTE, AND THE SECURITY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

 

15.         Entire
Agreement. This Warrant constitutes the full and entire understanding and agreement between the parties with regard to the
subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and undertakings of the parties,
whether oral or written, with respect to such subject matter.

 

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16.         No
Impairment. The Company will not, by any 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 will at all times in good faith assist in carrying out
all the provisions of this Warrant and in the taking of all such actions as may be necessary or appropriate in order to protect
the rights of the Holder of this Warrant against impairment.

 

17.         Issue
Taxes. The Company shall pay any and all issue and other taxes payable in respect of any issue or delivery of Common Stock
upon the exercise of this Warrant that may be imposed under the laws of the United States of America or by any state, political
subdivision or taxing authority of the United States of America; provided, however, that the Company shall not be required
to pay any tax or taxes that may be payable in respect of any transfer involved in the issue or delivery of any Warrant or certificates
for Common Stock in a name other than that of the registered holder of such Warrant (which shall
be treated as a transfer under Section 6 above), and no such issue or delivery shall be made unless and until the person or entity
requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid.

 

18.         Severability.
In the event that any one or more of the provisions contained in this Warrant shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such provision(s) shall be ineffective only to the extent of such invalidity, illegality or unenforceability,
without invalidating the remainder of such provision or the remaining provisions of this Warrant and such invalidity, illegality
or unenforceability shall not affect any other provision of this Warrant, which shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties
hereto have caused this Warrant to be duly executed as of the date first written above by its duly authorized officers.

 

EOS PETRO, INC.

 

a Nevada corporation

 

	By:	/s/ Nikolas Konstant	 
	 	 	 
	Name:	Nikolas Konstant	 
	 	 	 
	Title:	Chairman, CFO	 

 

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EXHIBIT A

 

NOTICE OF EXERCISE

 

To: EOS PETRO, INC. (the “Company”)

 

The undersigned hereby exercises the right
to purchase___________________ of the shares of Common Stock (“Warrant Shares”) of the Company, evidenced by
the attached Warrant (the “Warrant”).  Capitalized terms used herein and not otherwise defined shall have
the respective meanings set forth in the Warrant.

 

1.          Form of
Warrant Exercise Price.  The holder intends that payment of the Warrant Exercise Price shall be made as:

 

	 	 	 	a “Cash Exercise” with respect to ______________ Warrant Shares.

 

2.          Payment
of Warrant Exercise Price.  In the event that the holder has elected a Cash Exercise with respect to some or all of the
Warrant Shares to be issued pursuant hereto, the holder shall pay the aggregate Exercise Price in the sum of $_______________ to
the Company in accordance with the terms of the Warrant.

 

3.          Please
issue a certificate or certificates representing said shares in the name of the undersigned or in such other name or names as are
specified below:

 

	 	 
	 	 
	(Name)	 
	 	 
	 	 
	 	 
	(Address)	 
	 	 
	 	 
	 	 
	(City, State)	 

 

4.          The
undersigned represents that the aforesaid shares being acquired for the account of the undersigned for investment and not with
a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing
or reselling such shares, all except as in compliance with applicable securities laws, and that the undersigned is an “accredited
investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended.

 

	 	 	 
	(Date)	 	 
	 	 
	 	(Signature)
	 	 
	 	NOTICE: Signature must be guaranteed by a commercial bank or trust company or a member firm of a major stock exchange if shares of capital stock are to be issued, or securities are to be delivered, other than to or in the name of the registered holder of this Warrant. In addition, signature must correspond in all respects with the name as written upon the face of the Warrant in every particular without alteration or any change whatever.

 

    	 

    	 

    

 

EXHIBIT B

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned
holder of the attached Warrant hereby sells, assigns and transfers unto _______________________ whose address is _______________________________________
and whose taxpayer identification number is _________________ the undersigned’s right, title and interest in and to the Warrant
issued by Eos Petro, Inc., a Nevada corporation (the “Company”) to purchase _______ shares of the Company’s
Common Stock, and does hereby irrevocably constitute and appoint __________________________ attorney to transfer said Warrant on
the books of the Company with full power of substitution in the premises.

 

In connection with
such sale, assignment, transfer or other disposition of this Warrant, the undersigned hereby confirms that:

 

 ̈            such
sale, transfer or other disposition may be effected without registration or qualification (under the Securities Act as then in
effect and any applicable state securities law then in effect) of this Warrant or the shares of capital stock of the Company issuable
thereunder and has attached hereto a written opinion of the undersigned’s counsel to that effect; or

 

 ̈            such
sale, transfer or other disposition has been registered under the Securities Act of 1933, as amended, and registered and/or qualified
under all applicable state securities laws.

 

	 	 	 
	 	 	 
	(Date)	 	 
	 	 	 
	 	 	 
	 	 	 
	(Signature)	 	 

 

NOTICE: Signature must correspond in all respects
with the name as written upon the face of the Warrant in every particular without alteration or any change whatever.Exhibit 10.01

 

SEPARATION AGREEMENT

 

THIS SEPARATION AGREEMENT
(the “Agreement”) is entered into as of the 24th day of July, 2013, by and between, Andrew Hidalgo (“Hidalgo”)
and WPCS International Incorporated, a Delaware corporation (the “Company”).

 

WHEREAS, Hidalgo
is employed as the President and Chief Executive Officer of the Company pursuant to an employment agreement dated as of February
1, 2010, between the Company and Hidalgo (the “Employment Agreement”);

 

WHEREAS, the
Company and Hidalgo desire to enter into this agreement providing for Hidalgo’s amicable resignation from the Company’s
employment, and to settle any payments that may be due under the Employment Agreement; and

 

WHEREAS, Hidalgo
is considering making an offer to the Company to acquire the Company’s subsidiaries located in Trenton, New Jersey and Australia
(the “Acquisition”).

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

 

1.Termination
Date. Hidalgo acknowledges that his last day of employment with the Company will be July 30, 2013, or such other date mutually
agreed upon between the Company and Hidalgo (the “Termination Date”). Hidalgo will also resign as a member of the Board
of Directors of the Company and each of its subsidiaries (the “Subsidiaries”), effective as of the Termination Date.
Hidalgo further understands and agrees that, as of the Termination Date, he will be no longer authorized to conduct any business
on behalf of the Company as an executive or to hold himself out as an officer, agent or representative of the Company. Any and
all positions and/or titles held by Hidalgo with the Company or any Subsidiaries of the Company will be deemed to have been resigned
as of the Termination Date.

 

2.Severance.

 

(a)For the period
commencing on the Termination Date through the earlier to occur of (i) the date of the Acquisition of the Trenton and Australia
Subsidiaries, or (ii) October 1, 2013 (the “Severance Period”), the Company shall continue to pay Hidalgo his current
base salary at the rate of $325,000 per year (the “Severance Employment Payment”) through the Company’s normal
payroll process. The Company will make the appropriate payments of payroll taxes such as FICA, Medicare and other relevant taxes,
consistent with the normal payroll process for its employees. Hidalgo will not be entitled to payment of any bonus, vacation or
other incentive compensation during the Severance Period.

 

(b)In the event
the Acquisition has not been consummated prior to the expiration of the Severance Period, Hidalgo shall be entitled to the full
payment of the Severance Payment (as defined in the Employment Agreement) due pursuant to Section 10.4 of the Employment Agreement,
less any amounts paid between the Termination Date and the expiration of the Severance Period (the “Adjusted Severance Payment”).
The parties shall negotiate in good faith with respect to the payment terms for the Adjusted Severance Payment. Until such time
as the parties reach a mutually satisfactory agreement, the Company shall continue to pay Hidalgo his current base salary at the
rate of $325,000 per year through the Company’s normal payroll process. The Company will make the appropriate payments of
payroll taxes such as FICA, Medicare and other relevant taxes, consistent with the normal payroll process for its employees. Hidalgo
will not be entitled to payment of any bonus, vacation or other incentive compensation during this time. The aggregate amount of
all such payments shall in no event exceed the adjusted Severance Payment. Notwithstanding the foregoing, it is agreed and understood
that Hidalgo, at his option, may apply the adjusted Severance Payment to the purchase price for the Acquisition, but any such agreement
shall be set forth in an independent agreement related to the Acquisition on terms and conditions mutually agreed upon between
Hidalgo and the Company, including but not limited to the aggregate purchase price for the Acquisition.

 

    	 

    	 

    

 

3.Stock
Options. Any vesting of stock options (the “Options”) to purchase shares of the common stock of the Company
previously granted to Hidalgo shall terminate as of the Termination Date. Hidalgo shall have the right at any time within 120 days
following the Termination Date or the remaining term of the Options, whichever is the lesser, to exercise in whole or in part the
Options to the extent, but only to the extent, that the Options were exercisable as of the date of the Termination Date and had
not previously been exercised.

 

4.Health
Benefits. Hidalgo will be entitled to continue to receive medical and other insurance benefits during the Severance Period
under the applicable plans maintained by the Company, consistent with the Company’s then current practice. After the expiration
of the Severance Period, Hidalgo will be eligible for benefit continuation under COBRA.

 

5.Expense
Reimbursements. The Company shall promptly reimburse Hidalgo for reasonable expenses incurred by him during the term of the
Employment Agreement in connection with his services under the Employment Agreement, provided Hidalgo provides the Company with
reasonably acceptable proof of such expenses no later than the Termination Date. No further expenses may be incurred by Hidalgo
after the Termination Date.

 

6.Assignment
of Certain Rights and Personal Property. Hidalgo is hereby assigned all right, title and interest possessed by the Company
in the laptop computer, automobile and cellphone (the “Personal Property”), of which he has use as of the Termination
Date; provided that Hidalgo shall make arrangements to assume all payment and other obligations related to the use of the Personal
Property, to the reasonable satisfaction of the Company.

 

7.Survival
of Provisions of Employment Agreement.Section 6.1 and Article 7 of the Employment Agreement shall remain in full force
and effect in accordance with the terms thereof or any relevant statute of limitation with respect to the provisions of such sections.

 

    	2

    	 

    

 

8.Hidalgo’s
Release. In consideration for the payments and benefits described above and for other good and valuable consideration, Hidalgo
hereby releases and forever discharges the Company and its Subsidiaries, as well as its affiliates and all of their respective
directors, officers, employees, members, agents, and attorneys, of and from any and all manner of actions and causes of action,
suits, debts, claims, and demands whatsoever, in law or equity, known or unknown, asserted or unasserted, which he ever had, now
has, or hereafter may have on account of his employment with the Company, the termination of his employment with the Company, and/or
any other fact, matter, incident, claim, injury, event, circumstance, happening, occurrence, and/or thing of any kind or nature
which arose or occurred prior to the date when he executes this Agreement, including, but not limited to, any and all claims for
wrongful termination; breach of any implied or express employment contract; unpaid compensation of any kind; breach of any fiduciary
duty and/or duty of loyalty; breach of any implied covenant of good faith and fair dealing; negligent or intentional infliction
of emotional distress; defamation; fraud; unlawful discrimination, harassment; or retaliation based upon age, race, sex, gender,
sexual orientation, marital status, religion, national origin, medical condition, disability, handicap, or otherwise; any and all
claims arising under arising under Title VII of the Civil Rights Act of 1964, as amended (“Title VII”); the
Equal Pay Act of 1963, as amended (“EPA”); the Age Discrimination in Employment Act of 1967, as amended
(“ADEA”); the Americans with Disabilities Act of 1990, as amended (“ADA”); the Family and Medical
Leave Act, as amended (“FMLA”); the Employee Retirement Income Security Act of 1974, as amended ("ERISA");
the Sarbanes-Oxley Act of 2002, as amended (“SOX”); the Worker Adjustment and Retraining Notification Act
of 1988, as amended (“WARN”); and/or any other federal, state, or local law(s) or regulation(s); any and all claims
for damages of any nature, including compensatory, general, special, or punitive; and any and all claims for costs, fees, or other
expenses, including attorneys' fees, incurred in any of these matters. The Company acknowledges, however, that Hidalgo does not
release or waive any rights to contribution or indemnity under this Agreement to which he may otherwise be entitled. The Company
also acknowledges that Hidalgo does not release or waive any claims, and that he retains any rights he may have, to any vested
401(k) monies (if any) or benefits (if any), or any other benefit entitlement that is vested as of the Termination Date pursuant
to the terms of any Company-sponsored benefit plan governed by ERISA. Nothing contained herein shall release the Company from its
obligations set forth in this Agreement.

 

9.Company
Release. In exchange for the consideration provided for in this Agreement,  the
Company irrevocably and unconditionally releases Hidalgo of and from all claims, demands, causes of actions, fees and liabilities
of any kind whatsoever, which it had, now has or may have against Hidalgo, as of the date of this Agreement, by reason of any actual
or alleged act, omission, transaction, practice, conduct, statement, occurrence, or any other matter, within the reasonable scope
of Hidalgo’s employment. The Company represents that, as of the date of this Agreement, there are no known claims relating
to Hidalgo. Notwithstanding the foregoing, this release does not include Company’s right to enforce the terms of this Agreement

 

10.Future
Cooperation. Hidalgo agrees to reasonably cooperate with the Company, its financial and legal advisors in any claims, investigations,
administrative proceedings or lawsuits which relate to the Company and for which Hidalgo may possess relevant knowledge or information.
Any travel and accommodation expenses incurred by the Hidalgo as a result of such cooperation will be reimbursed in accordance
with the Company’s standard policies. The parties agree that should Hidalgo’s assistance be required in connection
with any business matters that the parties will agree to reasonable compensation for such services.

 

    	3

    	 

    

 

11.Applicable
Law and Dispute Resolution. Except as to matters preempted by ERISA or other laws of the United States of America, this Agreement
shall be interpreted solely pursuant to the laws of the State of Delaware, exclusive of its conflicts of laws principles. Each
of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of Delaware, for the purposes
of any suit, action, or other proceeding arising out of this Agreement or any transaction contemplated hereby.

 

12.Entire
Agreement. This Agreement may not be changed or altered, except by a writing signed by both parties. Until such time as this
Agreement has been executed and subscribed by both parties hereto: (i) its terms and conditions and any discussions relating thereto,
without any exception whatsoever, shall not be binding nor enforceable for any purpose upon any party; and (ii) no provision contained
herein shall be construed as an inducement to act or to withhold an action, or be relied upon as such. This Agreement constitutes
an integrated, written contract, expressing the entire agreement and understanding between the parties with respect to the subject
matter hereof and supersedes any and all prior agreements and understandings, oral or written, between the parties.

 

13.Assignment.
Hidalgo has not assigned or transferred any claim he is releasing, nor has he purported to do so. If any provision in this Agreement
is found to be unenforceable, all other provisions will remain fully enforceable. This Agreement binds Hidalgo’s heirs, administrators,
representatives, executors, successors, and assigns, and will insure to the benefit of all Released Parties and their respective
heirs, administrators, representatives, executors, successors, and assigns.

 

14.Binding
Effect. This Agreement will be deemed binding and effective immediately upon its execution by the Hidalgo; provided, however,
that in accordance with the Age Discrimination in Employment Act of 1967 (“ADEA”) (29 U.S.C. § 626, as amended),
Hidalgo’s waiver of ADEA claims under this Agreement is subject to the following: Hidalgo may consider the terms of his waiver
of claims under the ADEA for twenty-one (21) days before signing it and may consult legal counsel if Hidalgo so desires. Hidalgo
may revoke his waiver of claims under the ADEA within seven (7) days of the day he executes this Agreement. Hidalgo’s waiver
of claims under the ADEA will not become effective until the eighth (8th) day following Hidalgo’s signing of this Agreement.
Hidalgo may revoke his waiver of ADEA claims under this Agreement by delivering written notice of his revocation, via facsimile
and overnight mail, before the end of the seventh (7th) day following Hidalgo’s signing of this Agreement to: Thomas A. Rose,
Esq., Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor, New York, NY 10006, Fax: 212-930-9725. In the event
that Hidalgo revokes his waiver of ADEA claims under this Agreement prior to the eighth (8th) day after signing it, the remaining
portions of this Agreement shall remain in full force in effect, except that the obligation of the Company to provide the payments
and benefits set forth in Section 2 of this Agreement shall be null and void. Hidalgo further understands that if Hidalgo does
not revoke the ADEA waiver in this Agreement within seven (7) days after signing this Agreement, his waiver of ADEA claims will
be final, binding, enforceable, and irrevocable.

 

HIDALGO UNDERSTANDS THAT
FOR ALL PURPOSES OTHER THAN HIS WAIVER OF CLAIMS UNDER THE ADEA, THIS AGREEMENT WILL BE FINAL, EFFECTIVE, BINDING, AND IRREVOCABLE
IMMEDIATELY UPON ITS EXECUTION.

 

    	4

    	 

    

 

15.Acknowledgement.
Hidalgo acknowledges that he: (a) has carefully read this Agreement in its entirety; (b) has been presented with the opportunity
to consider it for at least twenty-one (21) days; (c) has been advised to consult and has been provided with an opportunity to
consult with legal counsel of his choosing in connection with this Agreement; (d) fully understands the significance of all of
the terms and conditions of this Agreement and has discussed them with his independent legal counsel or has been provided with
a reasonable opportunity to do so; (e) has had answered to his satisfaction any questions asked with regard to the meaning and
significance of any of the provisions of this Agreement; and (f) is signing this Agreement voluntarily and of his own free will
and agrees to abide by all the terms and conditions contained herein.

 

16.Notices.
For the purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in
writing and shall be delivered (i) personally, (ii) by first class mail, certified, return receipt requested, postage prepaid,
(iii) by overnight courier, with acknowledged receipt, or (iv) by facsimile transmission followed by delivery by first class mail
or by overnight courier, in the manner provided for in this Section, and properly addressed as follows:

 

		If to the Company:	WPCS International Incorporated

One East Uwchlan Avenue, Suite
301

Exton, PA 19341

Fax: 610-903-0401

 

		With a copy to:	Thomas A. Rose, Esq

Sichenzia Ross
Friedman Ference LLP

61 Broadway, 32nd
Floor

New York, NY 10006

Fax: 212-930-9725

 

		If to Hidalgo: 	Mr. Andrew Hidalgo

10 East Kentucky
Avenue

Long Beach Township,
NJ 08008

ahidalgo@msn.com

 

		With a copy to:	Gurinder J. Singh, Esq

Miller, Canfield,
Paddock and Stone P.L.L.C.

500 Fifth Avenue,
43rd Floor

New York, NY 10110

Fax: 212-704-4410

 

17.Facsimile,
Counterparts. This Agreement may be executed in facsimile counterparts, each of which, when all parties have executed at least
one such counterpart, shall be deemed an original, with the same force and effect as if all signatures were appended to one instrument,
but all of which together shall constitute one and the same Agreement.

 

[Signature page follows]

 

    	5

    	 

    

 

IN WITNESS HEREOF, the parties hereby
enter into this Agreement and affix their signatures as of the date first above written.

 

WPCS INTERNATIONAL INCORPORATED

 

 

By: /s/ SEBASTIAN GIORDANO

Name: Sebastian Giordano

 

Title: On behalf of WPCS International Incorporated as

Chairman and Director of Special Committee

 

 

/s/ ANDREW HIDALGO

Andrew Hidalgo

 

 

    	6

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