Document:

Exhibit 10.1 

 

 

SECURITIES
PURCHASE AGREEMENT

This Securities
Purchase Agreement is dated as of June 24, 2015 (this “Agreement”), by and between Freestone Resources, Inc.,
a Nevada corporation (the “Company”), and Dynamis Energy, LLC, an Idaho limited liability company (the “Purchaser”).

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act (as defined
below), and Rule 506 promulgated thereunder, the Company desires to issue and sell to Purchaser, and Purchaser desires to purchase
from the Company (i) five million (5,000,000) shares of Common Stock at a purchase price of
$0.10 per share (collectively, the “Shares”), par value $0.001 per share (together with any securities into
which such shares may be reclassified, the “Common Stock”), and (ii) a common stock purchase warrant (the “Warrant”)
to purchase five million (5,000,000) additional shares of Common Stock (collectively, the “Warrant Shares”),
which Warrants shall be in the form attached hereto as Exhibit A, upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE,
in consideration of the mutual terms, conditions and other agreements set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree to the
sale and purchase of the Shares and Warrants as set forth herein.

ARTICLE I.DEFINITIONS

1.1             
Definitions. 

In addition to the
terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings indicated
in this Section 1.1:

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 144. With respect to a Purchaser, any investment fund
or managed account that is managed on a discretionary basis by the same investment manager as the Purchaser will be deemed to be
an Affiliate of the Purchaser.

“Agreement”
shall have the meaning ascribed to such term in the Preamble.

“Closing”
means the closing of the purchase and sale of the Common Stock pursuant to Section 2.1.

“Closing
Date” means the Trading Day when this Agreement has been executed and delivered by the parties hereto.

“Commission”
means the Securities and Exchange Commission.

“Common
Stock” shall have the meaning ascribed to such term in the Preamble.

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument
that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

“Company”
shall have the meaning ascribed to such term in the Preamble.

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

“Effective
Date” means the date that the initial registration statement filed by the Company for the Registrable Securities is first
declared effective by the Commission.

“Environmental
Laws” shall have the meaning ascribed to such term in Section 3.1(r).

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(u).

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

“Indemnified
Liabilities” shall have the meaning ascribed to such term in Section 4.6.

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(q).

“Investment
Company Act” means the Investment Company Act of 1940, as amended.

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Material
Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(b).

“Material
Contract” means any contract of the Company or any of its Subsidiaries that has been filed or was required to have been
filed as an Exhibit to the SEC Reports pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

“OFAC”
shall have the meaning ascribed to such term in Section 3.1(bb).

“Plan”
shall have the meaning ascribed to such term in Section 3.1(p).

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

“Purchaser”
shall have the meaning ascribed to such term in the Preamble.

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.6.

“Registrable
Securities” means all of the Shares held by the Purchaser, together with any shares of Common Stock issued or issuable
upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing.

“Registration
Statement” means a registration statement covering the resale of the Registrable Securities.

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

“SEC Reports”
shall have the meaning ascribed to such term in Section 3.1(h).

“Securities”
means the Shares and the Warrants.

“Securities
Act” means the Securities Act of 1933, as amended.

“Shares”
shall have the meaning ascribed to such term in the Preamble.

“Subscription
Amount” shall have the meaning ascribed to such term in Section 2.1.

“Subsidiary”
shall mean the subsidiaries of the Company, if any, set forth on Schedule 3.1(a).

“Trading
Day” means a day on which the Common Stock is traded on a Trading Market.

“Trading
Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE Amex (formerly the American Stock Exchange), the New York Stock Exchange, the Nasdaq Global Market, the Nasdaq
National Market, the Nasdaq Capital Market or the OTC Bulletin Board.

“Warrants”
shall have the meaning ascribed to such term in the Preamble.

“Warrant
Shares” shall have the meaning ascribed to such term in the Preamble.

ARTICLE II.PURCHASE
AND SALE

2.1             
Closing. On a Closing Date, Purchaser shall purchase from the Company and the Company
shall issue and sell to Purchaser FIVE MILLION (5,000,000) Shares in exchange for FIVE HUNDRED-THOUSAND DOLLARS ($500,000.00) and
FIVE MILLION (5,000,000) Warrants in exchange for FIVE HUNDRED DOLLARS ($500.00) (the “Subscription Amount”).
Upon satisfaction of the conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of the Company
or such other location as the parties shall mutually agree.

	Name of Purchaser	Class and Number of Securities	Cash Purchase Consideration
	Dynamis Energy, LLC	5,000,000 shares of Common Stock	$500,000
	 	5,000,000 Warrants	$500

 

2.2             
Deliveries.

(a)               
On the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the
following:

(i)                
this Agreement duly executed by the Company;

(ii)              
a copy of the irrevocable instructions to the Company’s transfer agent instructing the
transfer agent to deliver, on an expedited basis, a certificate evidencing the five million (5,000,000) Shares, registered in the
name of the Purchaser; 

(iii)            
a certificate, in form reasonably satisfactory to the Purchaser, executed by an executive
officer of the Company, dated as of the Closing Date, certifying as to the fulfillment of the conditions specified in Sections 2.3(b)(i)
and (ii); 

(iv)            
the Warrants in the form of Exhibit A hereto; and

(v)              
a legal opinion of Taylor V. Wilson, Esq., or other legal counsel to the Company, in the form
of Exhibit B attached hereto.

(b)              
On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the
following:

(i)                
this Agreement duly executed by the Purchaser.

(ii)              
the Subscription Amount by wire transfer to the account as specified by the Company on Annex
A hereto.

2.3             
Closing Conditions. 

(a)               
The obligations of the Company hereunder in connection with the Closing are subject to the
following conditions being met:

(i)                
all representations and warranties of the Purchaser contained herein shall be accurate in
all material respects (except for those representations and warranties which are qualified as to materiality, in which case such
representations and warranties shall be true and correct in all respects) on the Closing Date, except for such representations
that speak as of a specific date; 

(ii)              
all obligations, covenants and agreements of the Purchaser required to be performed at or
prior to the Closing Date shall have been performed; and 

(iii)            
the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b)              
The obligations of the Purchaser hereunder in connection with the Closing are subject to the
following conditions being met:

(i)                
all representations and warranties of the Company contained herein shall be accurate in all
material respects (except for those representations and warranties which are qualified as to materiality, in which case such representations
and warranties shall be true and correct in all respects) on the Closing Date, except for such representations that speak as of
a specific date; 

(ii)              
all obligations, covenants and agreements of the Company required to be performed at or prior
to the Closing Date shall have been performed; and

(iii)            
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement.

ARTICLE III.REPRESENTATIONS
AND WARRANTIES

3.1             
Representations and Warranties of the Company. Except
as set forth under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof,
the Company hereby makes, as of the Closing Date, the representations and warranties set forth below to the Purchaser: 

(a)               
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth
on Schedule 3.1(a). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each
Subsidiary free and clear of any Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly
issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If
the Company has no subsidiaries, then references in this Agreement to the Subsidiaries will be disregarded.

(b)              
Organization and Qualification. The Company and each of the Subsidiaries is an entity
duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on
its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions
of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company
and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result
in (i) a material adverse effect on the legality, validity or enforceability of this Agreement, (ii) a material adverse effect
on the results of operations, assets, business, or financial condition of the Company and the Subsidiaries, taken as a whole, or
(iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations
under this Agreement (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted
in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

(c)               
Authorization; Enforcement. The Company has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations thereunder.
The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated thereby
have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company in
connection therewith other than in connection with the Required Approvals. This Agreement has been (or upon delivery will have
been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

(d)              
No Conflicts. The execution, delivery and performance of this Agreement by the Company,
the issuance and sale of the Shares and the Warrants and the consummation by the Company of the other transactions contemplated
hereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any
of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which
any property or asset of the Company or any Subsidiary is bound or affected, including, without limitation, any Material Contract
or Material Permit, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary
is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a
Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be
expected to result in a Material Adverse Effect.

(e)               
Filings, Consents and Approvals. The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state,
local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company
of this Agreement, other than (i) application(s) to each applicable Trading Market for the listing of the Shares and the Warrant
Shares for trading thereon in the time and manner required thereby, (ii) the filing of Form D with the Commission and such filings
as are required to be made under applicable state securities laws, and (iii) a Form 8-K disclosing the sale of the Shares and the
Warrants hereunder, (collectively, the “Required Approvals”). Subject to the accuracy of the representations
and warranties of the Purchaser set forth in Section 3.2 hereof, the Company has taken all action necessary to exempt: (i)
the issuance and sale of the Shares, (ii) the issuance of the Warrant Shares upon due exercise of the Warrants, and (iii) the other
transactions contemplated hereby from the provisions of any stockholder rights plan or other “poison pill” arrangement,
any anti-takeover, business combination or control share law or statute binding on the Company or to which the Company or any of
its assets and properties may be subject and any provision of the articles of incorporation, bylaws or other organizational or
charter documents of the Company that is or could reasonably be expected to become applicable to the Purchaser as a result of the
transactions contemplated hereby, including without limitation, the issuance of the Shares and the Warrant Shares and the ownership,
disposition or voting of the Shares and the Warrant Shares by the Company or the exercise of any right granted to the Purchaser
pursuant to this Agreement.

(f)               
Issuance of the Shares. The Shares are duly authorized and, when issued and paid for
in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company other than restrictions on transfer provided for in this Agreement. The Warrants have been duly and validly authorized.
Upon the due exercise of the Warrants, the Warrant Shares will be validly issued, fully paid and non-assessable free and clear
of all Liens. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement and the Warrant.

(g)               
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g).
All of the issued and outstanding capital shares of the Company (i) have been duly authorized and validly issued; and are fully
paid and nonassessable, (ii) are not in violation of any first refusal, preemptive right, right of participation, or any similar
right applicable to the company’s capital stock, and (iii) have been offered, issued and sold by the Company in compliance
with all applicable federal and state securities laws. The Company has not issued any capital stock since its most recently filed
periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s
stock incentive plans and the issuance of restricted shares of Common Stock to employees pursuant to the Company’s stock
incentive plan. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by this Agreement. There are no outstanding options, warrants, script rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable
for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common
Stock Equivalents other than pursuant to this Agreement. No further approval or authorization of any stockholder, the Board of
Directors of the Company or other Person is required for the issuance and sale of the Shares. Except for this Agreement, there
are no stockholders agreements, voting agreements, registration agreement or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

(h)              
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it under the Securities Act and the Exchange Act, including pursuant to
Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required
by law to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company has never
been an issuer subject to Rule 144(i) under the Securities Act. Each of the Material Contracts to which the Company or any Subsidiary
is a party or to which the property or assets of the Company or any of its Subsidiaries are subject has been filed (or incorporated
by reference) as an exhibit to the SEC Reports. Each of the Material Contracts is in full force and effect, and constitutes a legal,
valid and binding obligation enforceable in accordance with its terms against the Company. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

(i)                
Material Changes. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in the SEC Reports or on the Disclosure Schedules, (i) there has been
no event, occurrence or development that has had or could result in a Material Adverse Effect, (ii) the Company has not incurred
any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of
business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements
pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method
of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders
or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not
issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock incentive plans.
The Company does not have pending before the Commission any request for confidential treatment of information.

(j)                
Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county,
local or foreign) (collectively, an “Action”) which: (i) adversely affects or challenges the legality, validity
or enforceability of this Agreement, or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result
in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject
of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

(k)              
Labor Relations. No material labor dispute exists or, to the knowledge of the Company,
is imminent with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse
Effect. No officer, consultant or key employee of the Company or any Subsidiary whose termination could reasonably be expected
to result in a Material Adverse Effect has terminated or, to the knowledge of the Company, has any present intention of terminating
his or her employment or engagement with the Company or any Subsidiary.

(l)                
Compliance. Neither the Company nor any Subsidiary (i) is in default under or in violation
of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by
the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), including, without
limitation, the Material Contracts and the Material Permits, (ii) is in violation of any order of any court, arbitrator or governmental
body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws applicable to its business, including, without limitation, all applicable
foreign, federal, state and local statutes, rules and regulations relating to taxes, environmental safety and protection, occupational
health and safety, product quality and safety, and employment and labor matters, except in each case as could not reasonably be
expected to have a Material Adverse Effect.

(m)            
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations
and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective
businesses as described in the SEC Reports, except where the failure to possess such permits could not have or reasonably be expected
to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has
received any notice of proceedings relating to the revocation or modification of any Material Permit. All of the Material Permits
are valid and in full force and effect, except where the invalidity of such Material Permit or the failure of such Material Permit
to be in full force and effect, could not reasonably be expected have a Material Adverse Effect.

(n)              
Title to Assets. The Company and the Subsidiaries have good and marketable title in
fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries and good and
marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in
each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment
of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities
held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the
Company and the Subsidiaries are in compliance in all material respects.

(o)              
Taxes. The Company and its Subsidiaries have timely and properly filed
all tax returns required to be filed by them for all years and periods (and portions thereof) for which any such tax returns were
due, except where the failure to so file would not have a Material Adverse Effect.
All such filed tax returns are accurate in all material respects. The Company has timely paid all taxes due and payable (whether
or not shown on filed tax returns), except where the failure to so pay would not have a Material Adverse Effect.
There are no pending assessments, asserted deficiencies or claims for additional taxes that have not been paid. There have been
no audits or examinations of any tax returns by any governmental body, and the Company or its Subsidiaries have not received any
notice that such audit or examination is pending or contemplated. No claim has been made by any governmental body in a jurisdiction
where the Company or any of its Subsidiaries does not file tax returns that it is or may be subject to taxation by that jurisdiction.
There are no outstanding agreements or waivers extending the statutory period of limitation for the assessment or collection of
any tax. Neither the Company nor any of its Subsidiaries is a party to any tax-sharing agreement or similar arrangement with any
other Person. The Company has made all necessary disclosures required by Treasury Regulation Section 1.6011-4. The Company has
not been a participant in a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4(b).

(p)              
Employee Benefit Plans. No liability to the Pension Benefit Guaranty Corporation has
been incurred with respect to any Plan (as defined below) by the Company or any of its Subsidiaries which is or would be materially
adverse to the Company and its Subsidiaries. As used in this Section 3.1(p), the term “Plan” shall mean
an “employee pension benefit plan” (as defined in Section 3 of ERISA) which is or has been established or maintained,
or to which contributions are or have been made, by the Company or any subsidiary or by any trade or business, whether or not incorporated,
which, together with the Company or any subsidiary, is under common control, as described in Section 414(b) or (c) of the Code.

(q)              
Patents and Trademarks. To the knowledge of the Company, the Company and the Subsidiaries
own, possess, license or have other rights to use, all patents, patent applications, trademarks, trademark applications and registrations,
service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar rights necessary or material for
use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have
a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor any Subsidiary
has received any notice (written or otherwise) that the Intellectual Property Rights used by the Company or any Subsidiary violates
or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable
and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries
have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their Intellectual Property
Rights. 

(r)                
Environmental Matters. Neither the Company nor any Subsidiary is in violation of any
statute, rule, regulation, decision or order of any governmental body relating to the use, disposal or release of hazardous or
toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances
(collectively, “Environmental Laws”), owns or operates any real property contaminated with any substance that
is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws,
or is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had or could
reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or, to the
Company’s knowledge, threatened investigation that might lead to such a claim.

(s)               
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company
and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance. To the Company’s knowledge,
such insurance contracts and policies are accurate and complete. Neither the Company nor any Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business without a significant increase in cost.

(t)                
Transactions With Affiliates and Employees. Except as set forth in the SEC Reports,
none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company (i)
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee
or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner, in each case in excess of $120,000 other than (A) for payment of salary or consulting
fees for services rendered, (B) reimbursement for expenses incurred on behalf of the Company and (C) for other employee benefits,
including stock option agreements under any stock option plan of the Company; or (ii) has any direct or indirect ownership interest
in any firm or corporation with which the Company is affiliated or with which the Company has a business relationship, or any firm
or corporation that competes with the Company.

(u)              
Disclosure Controls and Procedures and Accounting Controls. The Company has established
and maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(c) and 15d-15(c)) that are effective
in all material respects to ensure that material information relating to the Company is made known to its chief executive officer
and chief financial officer by others within those entities. The Company’s certifying officers have evaluated the effectiveness
of the Company’s controls and procedures as of the end of the period covered by the most recently filed quarterly or annual
periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most
recently filed quarterly or annual periodic report under the Exchange Act the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation
Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of
Regulation S-K under the Exchange Act) or, to the Company’s knowledge, in other factors that could significantly affect the
Company’s internal controls. The Company maintains a system of accounting controls sufficient to provide reasonable assurances
that (a) transactions are executed in accordance with management’s general or specific authorization; (b) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability
for assets; (c) access to assets is permitted only in accordance with management’s general or specific authorization; and
(d) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.

(v)              
Private Placement. Assuming the accuracy of the Purchaser’s representations and
warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the
Shares and the Warrants by the Company to the Purchaser as contemplated hereby. The issuance and sale of the Shares and the Warrants
hereunder does not contravene the rules and regulations of the Trading Market.

(w)             
Investment Company. The Company is not, and is not an Affiliate of, and immediately
after receipt of payment for the Shares and the Warrants, will not be or be an Affiliate of, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that
it will not become subject to the Investment Company Act.

(x)              
Anti-takeover Protections. The Company has taken all necessary action, if any, in order
to render inapplicable any control share acquisition, business combination, poison pill, shareholder rights agreements or other
similar anti-takeover provision under the Company’s articles of incorporation and bylaws or any applicable state laws that
is or could become applicable to Purchaser’s purchase and ownership of the Shares. 

(y)              
No Integrated Offering. Assuming the accuracy of the Purchaser’s representations
and warranties set forth in Section 3.2, neither the Company, nor to the Company’s knowledge, any of its Affiliates,
nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under circumstances that would cause this offering of the Shares and Warrants to be integrated
with prior offerings by the Company for purposes of the Securities Act or any applicable shareholder approval provisions, including,
without limitation, under the rules and regulations of any Trading Market on which any of the securities of the Company are listed
or designated, other than successive offerings and sales of Shares under this Agreement. 

(z)               
General Solicitation. Neither the Company nor any person acting on behalf of the Company
has offered or sold any of the Shares and Warrants by any form of general solicitation or general advertising. The Company has
offered the Shares and Warrants for sale only to the Purchaser’s and certain other “accredited investors” within
the meaning of Rule 501 under the Securities Act. 

(aa)           
Foreign Corrupt Practices Act. Neither the Company nor any of its Subsidiaries, nor
any of their respective directors, officers, employees or agents has (i) directly or indirectly, used any corporate funds for unlawful
contributions, gifts, entertainment or made any other unlawful expenses relating to political activity to government officials,
candidates or members of political parties or organizations, (ii) paid, accepted or received any unlawful contributions, payments,
expenditures or gifts, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any Person
authorized to act on its behalf) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign
Corrupt Practices Act of 1977, as amended, any export restrictions, anti-boycott regulations, embargo regulations or other similar
applicable domestic or foreign laws and regulations. 

(bb)          
OFAC. None of the Company or any of its Subsidiaries nor, to the knowledge of the Company,
any director, officer, agent, employee, Affiliate or Person acting on behalf of the Company or any of its Subsidiaries, is currently
subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
and the Company will not directly or indirectly use the proceeds of the sale of the Shares and Warrants, or lend, contribute or
otherwise make available such proceeds to any of the Company’s Subsidiaries, joint venture partner or other Person or entity,
towards any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for the purpose
of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC.

(cc)           
No Broker Fees. No broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements
made by or on behalf of the Company. No Purchaser shall have any obligation with respect to any such fees or any claims made by
or on behalf of any such Persons that any such fees are due. 

(dd)          
No Additional Agreements. The Company does not have any agreements or understanding
with any Purchaser with respect to the transactions contemplated by this Agreement other than as specified in this Agreement. 

3.2             
Representations and Warranties of the Purchaser.

The Purchaser hereby
represents and warrants as of the Closing Date to the Company as follows:

(a)               
Organization; Authority. The Purchaser is an entity duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and
authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations
thereunder. The execution, delivery and performance by the Purchaser of the transactions contemplated by this Agreement have been
duly authorized by all necessary corporate or similar action on the part of the Purchaser. This Agreement has been duly executed
by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally
binding obligation of the Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies, and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

(b)              
Own Account. The Purchaser understands that the Shares and Warrants are “restricted
securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring
the Shares and Warrants as principal for its own account and not with a view to or for distributing or reselling the Shares and
Warrants or any part thereof, has no present intention of distributing any of the Shares and Warrants and has no arrangement or
understanding with any other persons regarding the distribution of the Shares and Warrants. The Purchaser does not have any agreement
or understanding, directly or indirectly, with any Person to distribute any of the Shares and Warrants

(c)               
Purchaser Status. At the time the Purchaser was offered the Shares and Warrants, it
was, and at the date hereof it is, either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7) or (a)(8) under the Securities Act, or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under
the Securities Act. The Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 

(d)              
Experience of the Purchaser. The Purchaser, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits
and risks of the prospective investment in the Shares and Warrants, and has so evaluated the merits and risks of such investment.
The Purchaser is able to bear the economic risk of an investment in the Shares and Warrants and, at the present time, is able to
afford a complete loss of such investment.

The Company acknowledges
and agrees that the Purchaser does not make or has not made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in this Section 3.2.

ARTICLE IV.OTHER
AGREEMENTS OF THE PARTIES

4.1             
Transfer Restrictions. 

(a)               
The Securities may only be disposed of in compliance with state and federal securities laws.
In connection with any transfer of Securities other than pursuant to an effective Registration Statement or Rule 144, to the Company
or to an affiliate of the Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require
the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to
the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer
does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee
shall agree in writing to be bound by the terms of this Agreement and shall have the rights of the Purchaser under this Agreement.

(b)              
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1(b),
of a legend on any of the Securities in the following or its equivalent form:

NEITHER THESE SECURITIES NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

(c)               
Certificates evidencing the Securities shall not contain any legend (including the legend
set forth in Section 4.1(b)), (i) while a registration statement covering the resale of such security is effective under
the Securities Act, or (ii) following any sale of such Securities pursuant to Rule 144, or (iii) if such Securities are eligible
for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required
under Rule 144 as to such securities and without volume or manner-of-sale restrictions, or (iv) if such legend is not required
under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff
of the Commission) and such lack of requirement is confirmed by a legal opinion satisfactory to the Company. The Company shall
cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after the Effective Date if required
by the Company’s transfer agent to effect the removal of the legend hereunder. The Company agrees that following the Effective
Date or at such other time as a legend is no longer required under this Section 4.1(c), it will, no later than three Trading
Days following the delivery by the Purchaser to the Company or the Company’s transfer agent of a certificate representing
Securities issued with a restrictive legend (such date, the “Legend Removal Date”), deliver or cause to be delivered
to the Purchaser a certificate representing such Securities that is free from all restrictive and other legends. The Company may
not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on
transfer set forth in this Section. Certificates for Securities subject to legend removal hereunder may be transmitted by the transfer
agent of the Company to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust
Company System. 

(d)              
The Purchaser agrees that the removal of the restrictive legend from certificates representing
Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance that the Purchaser will sell
any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom.

(e)               
In order to enable the Purchaser to sell the Securities under Rule 144, the Company shall
use its reasonable best efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace period)
all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. If the Company is not required
to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchaser and make publicly available in accordance
with Rule 144(c) such information as is required for the Purchaser to sell the Securities under Rule 144. 

4.2             
Publicity. The Company shall not publicly disclose the name of the Purchaser or an
Affiliate of the Purchaser, or include the name of the Purchaser or an Affiliate of the Purchaser in any press release or filing
with the Commission (other than the Registration Statement) or any regulatory agency or Trading Market without the prior written
consent of the Purchaser, except to the extent that such disclosure is required by law, request of the staff of the Commission
or Trading Market regulations, in which case the Company shall provide the Purchaser with prior notice of such disclosure.

4.3             
Integration. The Company shall not, and shall use its commercially reasonable efforts
to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares and
Warrants in a manner that would require the registration under the Securities Act of the sale of the Shares and Warrants to the
Purchaser or that would be integrated with the offer or sale of the Shares and Warrants for purposes of the rules and regulations
of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder
approval is obtained before the closing of such subsequent transaction.

4.4             
Non-Public Information. The Company covenants and agrees that neither it nor any other
Person acting on its behalf will provide the Purchaser or its agents or counsel, with any information that the Company believes
constitutes material non-public information without the express written consent of the Purchaser, unless prior thereto the Purchaser
shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and
confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

4.5             
Use of Proceeds. The Company shall only use the net proceeds from the sale of the Shares
hereunder to pay a portion of the purchase price for one hundred percent (100%) of the common stock (the “CTR Stock”)
of C.C. Crawford Retreading Company, Inc., a Texas corporation (“CTR”), and for no other purpose.

4.6             
Indemnification of Purchaser. Subject to the provisions of this Section 4.6,
the Company will defend, protect, indemnify and hold the Purchaser and its directors, officers, shareholders, members, partners,
employees and agents (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation (“Indemnified Liabilities”) that any such Purchaser Party may
suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements
made by the Company in this Agreement, or (b) any action, suit, proceeding or claim (including for these purposes a derivative
action brought on behalf of the Company) instituted against the Company, any Purchaser Party, or any other Purchaser in any capacity,
or any of them or their respective Affiliates, by any Person who is not an Affiliate of the Purchaser, with respect to or arising
out of the execution, delivery, performance or enforcement of any of the transactions contemplated by this Agreement (unless such
action is based upon a breach of the Purchaser’s representations, warranties or covenants under this Agreement or any agreements
or understandings the Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities
laws or any conduct by the Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). To the extent
that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. 

4.7             
Trading Market Listing. In the time and manner required by the Trading Market, the
Company shall (a) prepare and file with such Trading Market an additional shares listing application covering all of the Shares
and a notification form the change in the number of shares outstanding pertaining thereto; (b) use its reasonable best efforts
to take all steps necessary to case all of the Shares to be approved for listing on the Trading Market as promptly as possible
thereafter; (c) if requested by the Purchaser, provide the Purchaser with evidence of such listing, and (d) use its reasonable
best efforts to maintain the listing of such Shares on the Trading Market. 

4.8             
Form D; Blue Sky. The Company agrees to timely file a Form D with respect to the Shares
and Warrants as required under Regulation D and to provide a copy there of upon written request of the Purchaser. The Company,
on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary in order to obtain
an exemption for or to qualify the Shares and Warrants for sale to the Purchaser under applicable securities or “Blue Sky”
laws of the states of the United States (or to obtain an exemption from such qualification) and shall provide evidence of such
actions promptly upon the written request of the Purchaser.

4.9             
Piggy-Back Registrations. Except as provided in this Section 4.9, the Purchaser shall
have no registration rights with respect to any of the Shares or Warrants; however, if the Company shall determine to prepare and
file with the Commission a Registration Statement relating to an offering for its own account or the account of others under the
Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act),
then the Company shall send to the Purchaser a written notice of such determination and, if within 15 days after the date of such
notice, the Purchaser shall so request in writing, the Company shall include in such Registration Statement all or any part of
such Registrable Securities the Purchaser requests to be registered and sold in such offering; provided, however, that any Rule
415 cut backs by the Commission shall be shared pro rata and computed based upon all Registrable Securities, and further, that
such cut backs, if any, shall not be considered to be a violation of the Piggy-Back Registration Rights of the Purchaser. 
All fees and expenses incident to the Company’s performance of or compliance with its obligations under this Section 4.9
(excluding any underwriting discounts and selling commissions and all legal fees and expenses of legal counsel for any Purchaser)
shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement.

4.10         
Reservation of Shares. The Company shall maintain a reserve from its duly authorized
shares of Common Stock to comply with its obligations to issue the Warrant Shares upon exercise of the Warrants.

4.11         
Right of First Refusal. If at any time after the Closing, the Company shall authorize
the issuance of any additional shares of Common Stock (“Additional Shares”), the Company shall immediately grant
and deliver to Purchaser warrants to purchase the total number of such Additional Shares up to a maximum of five million (5,000,000)
Additional Shares, all in a form and upon the terms set forth in the Warrant attached hereto as Exhibit A.

ARTICLE V.MISCELLANEOUS

5.1             
Fees and Expenses. Except as otherwise set forth in this Agreement, each party shall
pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all
stamp and other taxes and duties levied in connection with the delivery of the Shares and Warrants.

5.2             
Entire Agreement. This Agreement, together with the exhibits and schedules hereto,
contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules. At the Closing, and without further consideration, the Company and the Purchaser will execute and deliver
to the other such further documents as may be reasonably requested in order to give practical effect to the intentions of the parties
under this Agreement.

5.3             
Notices. Any and all notices or other communications or deliveries required or permitted
to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the second Trading
Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (b) upon actual receipt
by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth
on the signature pages attached hereto.

5.4             
Amendments; Waivers. No provision of this Agreement may be waived or amended except
in a written instrument signed, in the case of an amendment, by the Company and the Purchaser or, in the case of a waiver, by the
party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such right.

5.5             
Headings. The headings herein are for convenience only, do not constitute a part of
this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

5.6             
 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Purchaser. The Purchaser may assign its rights hereunder in whole or in part
to any Person to whom the Purchaser assigns or transfers the Shares, provided such transferee shall agree in writing to be bound,
with respect to the transferred Shares, by the terms and conditions of this Agreement that apply to the “Purchaser.”

5.7             
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except each Purchaser Party is an intended third party beneficiary of Section 4.6.

5.8             
Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State
of Texas, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in
the federal district court for the Northern District of Texas. Each party hereby irrevocably submits to the exclusive jurisdiction
of the federal district court for the Northern District of Texas for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of this
Agreement), 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 such court, that such suit, action or proceeding is improper or inconvenient venue for
such proceeding. 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 via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for 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. The parties hereby waive all rights to a trial by jury. 

5.9             
Survival. Subject to applicable statute of limitations, the representations, warranties,
agreements and covenants contained herein shall survive the Closing and the delivery of the Shares and the Warrant. 

5.10         
Execution. This Agreement may be executed in two or more counterparts, all of which
when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile or other electronic transmission, 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 other electronic signature page were an original thereof. 

5.11         
Severability. If any provision of this Agreement is held to be invalid or unenforceable
in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

5.12         
Replacement of Shares. If any certificate or instrument evidencing any Securities is
mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants
for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the
issuance of such replacement Securities.

5.13         
Remedies. In addition to being entitled to exercise all rights provided herein or granted
by law, including recovery of damages, the Purchaser and the Company will be entitled to specific performance under this Agreement.
The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate.

(Signature Page Follows)

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	
        freestone resources,
        INC.

         

         
	
        Address for Notice:

         

        Freestone Resources, Inc.

        325 N. St. Paul Street, Suite 1350

        Dallas, TX 75201

         

	
        By: ____/s/ Clayton Carter_________

        Name: Clayton Carter

        Title: Chief Executive Officer

         

         
	 
	
        With a copy to (which shall not constitute notice):

         

        ______________________

        ______________________

        ______________________

        ______________________
	 

 

 

 

 

 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

 

 

 

 

    	 

    	 

    

 

 

 

[PURCHASER SIGNATURE PAGE TO SECURITIES PURCHASE
AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

	
        DYNAMIS ENERGY, LLC

         

         
	
        Address for Notice:

         

        Dynamis Energy, LLC

        776 E. Riverside Dr. #150

        Eagle, ID 83616

         

	
        By: _____/s/ Kevin McNulty_________

        Name: ___W. Kevin McNulty________

        Title: ____Director_____________

         

         
	 
	With a copy to (which shall not constitute notice):

                                                          ______________________

        ______________________

        ______________________

        ______________________

 

    	 

 

 

 

 

 

 

 

Subscription Amount: $500,500.00

Shares: 5,000,000

Warrants: 5,000,000

EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

 

 

 

 

    	 

    	 

    

 

 

 

Annex A

 

WIRE TRANSFER INSTRUCTIONS 

 

Pursuant to the attached
Securities Purchase Agreement, dated as of the date hereto, the Purchaser shall purchase up to FIVE HUNDRED THOUSAND FIVE HUNDRED
DOLLARS ($500,500.00) of Shares and Warrants from Freestone Resources, Inc., a Nevada corporation (the “Company”).
All funds will be wired in accordance with these instructions:

 

Disbursement
Date:June 24, 2015.

 

 

	
        I. PURCHASE PRICE

         
	$500,500.00
	
        WIRE INSTRUCTIONS:

         

         
	 
	
        Reference funds flow memorandum dated June 24, 2015Exhibit
10.2

 

EXHIBIT
A

 

THE
SECURITIES COVERED HEREBY HAVE BEEN (I) ACQUIRED FOR INVESTMENT; (II) ISSUED AND SOLD IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES LAWS OF VARIOUS STATES; AND (III) ISSUED AND SOLD IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) PROVIDED BY SECTION 4(a)(2) OF THE SECURITIES ACT. THE
SECURITIES CANNOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED OTHER THAN PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES
ACT OR ANY TRANSACTION WHICH IS OTHERWISE IN COMPLIANCE WITH THE SECURITIES ACT AND ANY SUCH TRANSACTION SHALL BE ACCOMPANIED
BY A LEGAL OPINION THAT IS SATISFACTORY TO THE COMPANY. THE COMPANY SHALL BE ENTITLED TO RELY UPON AN OPINION OF COUNSEL SATISFACTORY
TO IT WITH RESPECT TO COMPLIANCE WITH THE ABOVE LAWS.

 

NEITHER
THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE SOLD,
ASSIGNED, PLEDGED, HYPOTHECATED, ENCUMBERED OR IN ANY OTHER MANNER TRANSFERRED OR DISPOSED OF EXCEPT AS PROVIDED HEREIN. THE HOLDER
OF THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF ARE SUBJECT TO THE RESTRICTIONS HEREIN SET FORTH.

 

FREESTONE
RESOURCES, INC.

 

Common
Stock Purchase Warrant

 

 

THIS
IS TO CERTIFY THAT, for value received, Dynamis Energy, LLC, an Idaho limited liability company (the “Holder”),
upon due exercise of this Warrant, dated as of June 24, 2015 (the “Issuance Date”), is entitled to purchase
from Freestone Resources, Inc., a Nevada corporation (the “Company”), all or any part of five million (5,000,000)
shares of fully paid and non-assessable share of common stock, $.001 par value, of the Company (the “Common Stock”),
exercisable during the period from and after the Issuance Date to and including 5:00 p.m. Central Standard Time on the date that
is twelve (12) months after the Issuance Date (the “Expiration Date”) at a purchase price per share pursuant
to Section 1 below.

 

This
Warrant is hereinafter called the “Warrant,” and the shares of Common Stock issuable upon exercise hereof are hereinafter
called the “Warrant Shares.”

 

This
Warrant is issued pursuant to that Securities Purchase Agreement, dated as of 24 June, 2015, by and among the Company and the
Holder (the “Purchase Agreement”). In addition to the terms defined elsewhere in this Warrant, capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Purchase Agreement.

 

1.          Exercise
Price. The exercise price per share for the shares of Common Stock that may be purchased pursuant to terms of this Warrant
shall be an amount equal to eighty percent (80%) multiplied by the Closing Price (as defined below) of the Common Stock
as of the Exercise Date (as defined below), rounded to the nearest one-hundredth of one cent ($0.0001) per share, subject to adjustment
pursuant to Section 8 below (the “Exercise Price”). If the Common Stock is traded on a national securities
exchange, the Closing Price shall be the average of the closing price of the Common Stock for the ten (10) consecutive Trading
Days immediately preceding the Exercise Date. If the Common Stock is not traded on a national securities exchange, the Closing
Price shall be the average of the closing bid and ask price quoted on the over-the-counter market for the ten (10) consecutive
Trading Days immediately preceding the Exercise Date. If the Common Stock is not traded on the over-the-counter market or on a
national securities exchange, the Closing Price shall be the fair market value of a share of Common Stock as determined by an
independent appraiser in good faith mutually agreeable to the Holder and the Company.

 

		2.	Exercise
                                         of Warrant.

 

(a)     Procedure
for Exercise. The Holder of this Warrant may exercise this Warrant at any time after the Issuance Date but on or before the
earlier of the Expiration Date for the purchase of all or part of the Warrant Shares that have not been earlier purchased or redeemed
pursuant hereto. The purchase price shall be equal to the Exercise Price multiplied by the number of Warrant Shares to be acquired
pursuant to such exercise of the Warrant. In order to exercise this Warrant in whole or in part, the Holder hereof shall deliver
to the Company (a) a written Notice of Exercise of such Holder's election to exercise this Warrant substantially in the form
attached hereto as Exhibit A, which notice shall specify the number of whole shares of Common Stock to be purchased, (b) payment
of the aggregate Exercise Price of the shares of Common Stock being purchased in the manner provided herein, (c) an executed
Investor Representation Letter in the form attached hereto as Exhibit B, and (d) this Warrant. Upon the Company’s
receipt of the Notice of Exercise, the payment, the executed Investor Representation Letter and surrender of this Warrant (the
date of such receipt is the “Exercise Date”), the Company shall, as promptly as practicable (but in no event
later than seven (7) Trading Days after the Exercise Date), execute or cause to be executed and deliver to such Holder a certificate
or certificates representing the aggregate number of shares of Common Stock specified in such notice, bearing restrictive legends
(unless if, and only if, at the time of exercise, the Warrant Shares are included in a registration statement for resale that
has been filed by the Company and declared effective by the Securities and Exchange Commission).. The stock certificate or certificates
so delivered shall be in such denominations as may be specified in such notice and shall be registered in the name of such Holder
or, subject to the conditions of Section 3 below, such other name as shall be designated in such notice. Payment of the Exercise
Price may be made by wire transfer, by certified check or cashier's check, payable to the order of the Company, or by wire transfer.

 

(b)     No
Fractional Shares. No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, nor shall the
Company be required to pay cash in lieu of fractional interests, it being the intent of the parties that all fractional interests
shall be eliminated and that all issuances of Common Stock shall be rounded up to the nearest whole share. If this Warrant shall
have been exercised only in part, the Company shall, at the time of delivery of such certificate or certificates, deliver to such
Holder a new warrant evidencing the rights of such Holder to purchase the remaining shares of Common Stock called for by this
Warrant, which new warrant shall in all other respects be identical with this Warrant, or, at the request of such Holder, appropriate
notation may be made on this Warrant and the same returned to such Holder.

 

(c)     Expenses.
The Company shall pay all expenses, taxes and other charges payable in connection with the preparation, execution and delivery
of stock certificates under this Section, except that, in case such stock certificates are to be registered in a name or names
other than the name of the Holder of this Warrant, all stock transfer taxes payable upon the execution and delivery of such stock
certificate or certificates shall be paid by the Holder hereof at the time of delivering the notice of exercise mentioned above.
In such case, the Holder hereof shall deliver with such notice of exercise evidence, satisfactory to the Company, that such taxes
have been paid.

 

(d)     Warrant
Holder Not a Shareholder. No Holder of this Warrant shall be entitled, solely by reason of being a Holder hereof, to possess
any right or privilege as a shareholder of the Company, including without limitation, the right to vote or receive dividends or
be deemed for any purpose the holder of Common Stock or of any other securities of the Company which may at any time be issuable
on the exercise hereof, until the Holder shall have exercised all or any part of this Warrant in accordance with the provisions
set forth in Section 2 hereof. Nothing contained herein shall be construed to confer upon the Holder, as such, any of the rights
of a shareholder of the Company or any right to vote upon any matter submitted to shareholders at any time thereof, or to give
or withhold consent to any corporate action (whether upon any recapitalization, issue of stock, reclassification of stock, change
of par value, consolidation, merger, conveyance, or otherwise) or, to receive notice of the meetings, until the Warrant shall
have been exercised as provided in Section 2 hereof.

 

(e)     Default
by the Company. If the Company fails to cause its transfer agent to transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to the terms hereof by the seventh (7th) Trading Day after the date on which such certificate
is required to be delivered pursuant to Section 2(a), then, the Holder will have the right to rescind such exercise. In addition,
if after such seventh (7th) Trading Day the Holder is required by its broker to purchase (in an open market transaction or otherwise)
or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder
of the Warrant Shares which the Holder anticipated receiving upon such exercise, then the Company shall pay in cash to the Holder
the amount, if any, by which the Holder’s total purchase price (including brokerage commissions, if any) for the shares
of Common Stock so purchased exceeds the amount obtained by multiplying (i) the number of Warrant Shares that the Company was
required to deliver to the Holder in connection with the exercise at issue times (ii) the price at which the sell order giving
rise to such purchase obligation was executed. In addition, the Company will at the option of the Holder, either reinstate the
portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise
shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company
timely complied with its exercise and delivery obligations hereunder. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common
Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

3.            Transfer,
Division and Combination. 

 

(a)     Transfer
of Warrants. The Warrants are separate and detachable securities, transferable only on the books of the Company by the registered
Holder hereof in person or by attorney duly authorized in writing, upon surrender of this Warrant to the Company for transfer.
Upon any such transfer, a new Warrant to purchase a like number of Warrant Shares will be issued to the transferee or transferees
in exchange for this Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction
or mutilation of this Warrant, and, in case of loss, theft or destruction, of an agreement of indemnity (without security therefor,
and upon surrender and cancellation of this Warrant, if mutilated), the Company will make and deliver a new Warrant of like tenor,
in lieu of this Warrant. This Warrant shall be promptly canceled by the Company upon the surrender hereof in connection with any
exchange, transfer or replacement.

 

(b)     Division
and Combination of Warrants. This Warrant may, subject to Section 4 hereof, be divided or combined with other warrants upon
presentation hereof at the principal office of the Company, together with a written notice specifying the names and denominations
in which new warrants are to be issued signed by the Holder or his agent or attorney. Subject to compliance with the preceding
paragraph and with Section 4, as to any transfer which may be involved in such division or combination, the Company shall execute
and deliver a new warrant or warrants in exchange for the warrant or warrants to be divided or combined in accordance with such
notice.

 

(c)     Expenses.
Holder shall pay all reasonable expenses, taxes (other than stock transfer taxes) and other charges payable in connection
with the preparation, execution and delivery of this Warrant pursuant to this Section.

 

4.             Compliance
with Securities Act; Restrictions on Transfer.

 

(a)     Compliance
with Securities Act. This Warrant and the related Warrant Shares shall not be transferable except upon the conditions specified
in this Section, which conditions are intended, among other things, to ensure compliance with the provisions of the Securities
Act or any applicable state securities laws in respect of the transfer of such Warrant or Warrant Shares.

 

(b)    
Legend. Each certificate for Warrant Shares issued upon exercise of this Warrant shall bear a legend to the effect
that the Warrant Shares may not be transferred except upon compliance with the provisions of this Section 4, and each certificate
for Warrant Shares transferred pursuant to Section 4 shall also bear such a legend unless, in the opinion of counsel for the Company,
such a legend is not required.

 

(c)      Certain
Covenants, Representations and Warranties of Holder.

 

(i)     Holder
hereby represents, warrants and covenants to the Company that it has had access to the Company’s public filings and the
opportunity to request additional information regarding the Company's records. Holder has had the opportunity to ask questions
of and receive answers from the Company's management concerning the Company's business and operations, and has made an independent
review and determination of the value of the investment and has the qualifications to do so. Holder understands that neither the
Warrant nor the Warrant Shares have been registered under the Securities Act in reliance upon exemptions available for non-public
or limited offerings not involving a public offering. Holder understands that any resale of the Warrant or Warrant Shares will
require compliance with an exemption under the Securities Act in the absence of registration thereunder.

 

(ii)    Holder
acknowledges that the Warrant and the Warrant Shares have not been registered under the Securities Act, and are being acquired
for Holder's own account for investment and not with a view to the distribution thereof.

 

(iii)   Holder
has the knowledge and experience in financial and business matters to enable Holder to evaluate the merits and risks of acquiring
the Warrant and the Warrant Shares.

 

(iv)   Holder
is able to bear the economic risks of its investment in the Warrant and the Warrant Shares, including the risk of a loss of the
entire value of the Warrant and the Warrant Shares.

 

(v)    The
Company may instruct its transfer agents not to transfer the Warrant or any of the Warrant Shares unless the transfer agents have
been advised by the Company or otherwise have been satisfied that the Holder has complied with the provisions above-described.

 

(vi)    The
Holder understands that the Company has not covenanted and is not obligated to furnish a registration statement under the Securities
Act covering the Warrant or the Warrant Shares.

 

5.             Special
Agreements of the Company.

 

(a)     Reservation
of Common Stock. The Company covenants and agrees that it will reserve and set apart and have at all times, a number of shares
of authorized but unissued Common Stock deliverable upon the exercise of the Warrant or any other rights or privileges provided
for therein sufficient to enable it at any time to fulfill all of its obligations thereunder; and if at any time the number of
authorized but unissued shares of Common Stock shall not be sufficient to effect the exercise of the Warrant at the Exercise Price
then in effect, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

 

(b)     Par
Value. As a condition precedent to the taking of any action which would cause an adjustment reducing the Exercise Price below
the then par value, if any, per share of the Common Stock issuable upon exercise of this Warrant, the Company will take such corporate
action as may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue its Common
Stock at the Exercise Price upon conversion of this Warrant in accordance with the provisions of this Section 6.

 

(c)     Shares
to be Fully Paid and Nonassessable. The Company covenants that all shares of Common Stock which may be issued upon exercise
of this Warrant will be, upon issuance and payment of the Exercise Price, validly issued, fully paid and nonassessable.

 

6.     Notices.
All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only
if delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the parties at the following addresses
or facsimile numbers: (i) if to the Holder, to the name and address and with a copy to the email address set forth in the
Purchase Agreement or any other address or email address delivered to the Company in writing or to the name and address or email
address of any transferee of this Warrant recorded on the books of the Company as instructed on the form of Assignment attached
hereto as Exhibit C; and (ii) if to the Company, to 325 N. St. Paul St., Republic Center, Suite 1350, Dallas, Texas
75201 with a copy to ccarter@freestoneresourcesinc.com.

 

Any
party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set
forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary
mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Any party from time to time may change its address,
facsimile number or other information for the purpose of notices to that party by giving notice specifying such change to the
other parties hereto.

 

7.     Limitation
of Liability. No provision hereof, in the absence of affirmative action by the Holder to purchase shares of Common Stock
as provided in Section 2 above, and no mere enumeration herein of the rights or privileges of the Holder hereof, shall give rise
to any liability of such Holder for the Exercise Price or as a stockholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

 

     8.     Certain
Adjustments to Exercise Price. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant
are subject to adjustment from time to time as set forth in this Section 8.

 

(a)     Adjustments
for Stock Splits and Combinations and Stock Dividends. If the Company shall at any time or from time to time after the date
hereof, effect a stock split or combination of the outstanding Common Stock or pay a stock dividend in shares of Common Stock,
then the number of Warrant Shares issuable upon exercise of this Warrant shall be the number of Warrant Shares issuable immediately
prior to such event, multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding
immediately after such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
before such event, with per shares Exercise Price of this Warrant to be proportionately adjusted. Any adjustments under this Section
8(a) shall be effective at the close of business on the date the stock split or combination becomes effective or the date of payment
of the stock dividend, as applicable.

 

(b)     Fundamental
Transactions. If, at any time while this Warrant is outstanding, (i) the Company effects any merger or consolidation of the
Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series
of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (iv)
the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock
is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or
combination of shares of Common Stock covered by Section 8(a) above) (in any such case, a “Fundamental Transaction”),
then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities,
cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been,
immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full
of this Warrant (the “Alternate Consideration”). The aggregate Exercise Price for this Warrant will not be
affected by any such Fundamental Transaction, but the Company shall apportion such aggregate Exercise Price among the Alternate
Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. At the Holder’s request, any successor to the Company or surviving entity in such
Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s
right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof. The terms of any agreement
pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to
comply with the provisions of this paragraph (b) and insuring that the Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

(c)     Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 8, the Company at its expense will promptly
compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment,
including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable
upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail
the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate
to the Holder and to the Company’s transfer agent.

 

    9.     Miscellaneous.
    The terms and provisions of Sections 5.3, 5.5, 5.6, 5.7, 5.8, 5.9, 5.10, 5.11, 5.12, and 5.14 of the Purchase Agreement
are incorporated herein by reference as if set forth herein in their entirety and shall apply mutatis mutandis to this
Agreement.

[SIGNATURE
PAGE FOLLOWS]

 

 

 

 

 

 

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be effective by signature of its duly authorized officer as of the 24
day of June, 2015.

 

	 	FREESTONE RESOURCES, INC., 
	 	a Nevada corporation
	 	 
	 	 
	 	
	 	By:  /s/ Clayton Carter               
	 	Name:  Clayton Carter
	 	Title:   President and Chief Executive Officer
	 	 

 

 

 

 

 

    	 

    	 

    

 

 

Exhibit
A

 

FORM
OF NOTICE OF EXERCISE

 

TO
BE EXECUTED BY THE REGISTERED HOLDER

IF
IT DESIRES TO EXERCISE THE WARRANT

 

 

The
undersigned, record holder of the Warrant, hereby irrevocably elects to exercise the right represented by this Warrant, to purchase
___________ of the Warrant Shares and herewith tenders payment for such Warrant Shares to the order of Freestone Resources, Inc.
in the amount of $________ in accordance with the terms of this Warrant.

 

Please
issue the certificate for shares of Common Stock in the name of:

 

 

Print
or type name

 

 

Social
Security or Other Identifying Number

 

 

 Street
Address

 

 

City
State Zip Code

 

	 	 
	 	Signature
	 	 
	 	 
	 	Print
Name
	 	 
	 	 
	 	 
	 	 
	 	Address
	 	 
	 	Social Security Number
	 	 
	Date:
___________________, _____	 
	 	 
	(Signature
Medallion Guaranteed):	 Date:
                                         ___________________, _____  

 

 

    	 

    	 

    

 

 

Exhibit B

 

INVESTOR
REPRESENTATION LETTER

 

 

Freestone
Resources, Inc.

Republic
Center, Suite 1350

325
N. St. Paul St.

Dallas,
TX 75201

 

Gentlemen:

 

This
Investor Representation Letter is executed and delivered in connection with the purchase by the undersigned (the “Purchaser”)
of _______ shares of common stock (the “Shares”) of Freestone Resources, Inc., a Nevada corporation (the “Company”),
pursuant to the terms of that certain Common Stock Purchase Warrant dated ________________.

 

In
connection with the purchase of the Shares, Purchaser hereby makes the following representations, warranties and confirms the
following understandings:

 

a.     Investment
Purpose. Purchaser is acquiring the Shares for his own account and for investment purposes only, within the meaning of the
Securities Act of 1933 (the “Act”), with no intention of assigning any participation or interest therein, and not
with a view to the distribution thereof.

 

b.     Review
and Evaluation of Information. The Purchaser is familiar with the business and operations of the Company and has had the opportunity
to ask the Company questions about the offering to the extent deemed necessary to permit full evaluation of the merits and risks
of an investment in the Company. Further, Purchaser has consulted with such other of his accounting, legal and tax advisors as
he deemed necessary and appropriate in making his decision to purchase the Shares.

 

c.     Purchaser's
Financial Experience. Purchaser is sufficiently experienced in financial and business matters to be capable of evaluating
the merits and risks of his investment in the Company.

 

d.     Suitability
of Investment. Purchaser has evaluated the merits and risks of Purchaser's proposed acquisition of Shares of the Company,
including those risks particular to Purchaser's personal situation, and has determined that the investment is suitable for Purchaser.
Purchaser has adequate financial resources for an investment of this character, and could bear a complete loss of his investment.
Further, Purchaser will continue to have, after making his investment in the Company, adequate means of providing for his current
needs, the needs of those dependent on him, and possible personal contingencies.

 

e.     Unregistered
Offering. Purchaser understands that the Shares are not being registered under the Act because the sale is exempt from registration
under the Act and rules and regulations promulgated thereunder, as a “transaction by an issuer not involving any public
offering,” and that the availability of such exemption is predicated, in part, on Purchaser's representations and warranties
contained in this Investor Representation Letter. In the view of the Securities and Exchange Commission, the statutory basis for
the exemption claimed by the Company in connection with the sale of Shares would not be present if, notwithstanding Purchaser's
representations and warranties, Purchaser has the intention of acquiring the Shares for resale upon the occurrence or nonoccurrence
of some predetermined event.

 

f.     Limitations
on Disposition. The Shares have not been registered under the Act or under applicable state securities laws and, therefore,
cannot be sold, assigned, or otherwise transferred unless they are subsequently registered under the Act and under applicable
state securities laws or an exemption from such registrations is then available. Purchaser hereby agrees that he will not sell,
assign, or transfer his Shares unless they are registered under the Act and under applicable state securities laws or an exemption
from such registration is then available in the opinion of counsel to the Company.

 

g.     Absence
of Official Evaluation. Purchaser understands that no federal or state agency has made any finding or determination as to
the fairness of the terms of an investment in the Company, nor any recommendation or endorsement of a purchase of the Shares.

 

h.     Residency.
Purchaser's principal residence is in the country and state or other jurisdiction indicated, and his citizenship is as indicated,
opposite his signature to this Investor Representation Letter. Purchaser has no intent of changing his residency, citizenship,
or principal office to any other country or state or jurisdiction.

 

i.     Accredited
Investor. The Purchaser is an “Accredited Investor” as that term is defined in Rule 501 of Regulation D promulgated
by the Securities and Exchange Commission under the Act.

 

j.     Nonreliance.
Purchaser is not relying on the Company or any legal opinion with respect to the tax and economic effect of his investment in
the Company.

 

The
representations, warranties, covenants, and agreements contained herein shall survive Purchaser's delivery of payment for the
Shares and the delivery of the Shares by the Company .

 

Dated
to be effective as of the _____ day of ____________, ______.

 

 

	 	PURCHASER:
	 	 
	 	_________________________________________
	 	Name:   ___________________________________
	 	Address:  _________________________________
	 	_________________________________________
	 	 

 

 

    	 

    	 

    

 

Exhibit
C

 

ASSIGNMENT

 

(Form
of assignment to be executed if the Holder desires to transfer the Warrant)

 

 

FOR
VALUE RECEIVED, _____________________________ hereby sells, assigns, and transfers unto (“Transferee”) this the attached
warrant (the “Warrant”) dated June ___, 2015, issued by Freestone Resources, Inc. (the “Company”) and
registered in the name of the undersigned (“Holder”) on the books of the Company, to acquire ______ shares of the
Company's common stock, together with all right, title or interest therein and does hereby irrevocably appoint __________________________________
attorney to transfer the Warrant on the books of the Company with full power of substitution in the premises.

 

Print
name of Transferee: ____________________________________________________________________________

 

Address
of Transferee: _____________________________________________________________________________

 

 

 

Telephone
Nos. of Transferee: (Home) _________________ (Business) ________________

 

Facsimile
No. of Transferee: _________________

 

Dated
to be effective as of the ___ day of _______, ______.

 

 

 

	 	 
	 	Signature of Holder
	 	(Signature must conform n all respects to name of Holder as specified on the face of this Warrant)
	 	 
	 	 
	(Signature Medallion Guaranteed):	Date: _______________

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