Document:

SUBSCRIPTION
AGREEMENT

     

    THIS
SUBSCRIPTION AGREEMENT (this “Agreement”) is dated as of
May 6, 2010, between Freedom Resources Enterprises, Inc., a Nevada
corporation (the “Company”), and Life Power and
Fuels LLC, a Delaware limited liability company (the “Investor”).

     

    Recitals

     

    The
Investor and the Company have agreed that the Investor will purchase, and the
Company will issue and sell, 47,700,000 shares of the Company’s common stock,
par value $0.001 per share (the “Shares”), on the terms stated
in this Agreement.

     

    Agreement

     

    In
consideration of the mutual covenants contained in this Agreement, and for other
good and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Company and the Investor agree as follows:

     

    1.           Definitions.

     

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

     

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

     

    “Business Day” means
any day except Saturday, Sunday and any day which is a federal legal holiday or
a day on which banking institutions in Utah are authorized or required by law or
other governmental action to close.

     

    “Closing” means the
closing of the purchase and sale of the Shares pursuant to Section 2 of
this Agreement.

     

    “Closing Date” means
the date on which all of the conditions set forth in Sections 6.1 and 6.2
hereof are satisfied, or such other date as the parties may agree.

     

    “Commission” means the
U.S. Securities and Exchange Commission.

     

    “Creditor” has the
meaning set forth in Section 5.5.

     

    “Escrow Agreement”
means the Escrow Agreement set forth in Section 2.2.

     

     “Material Adverse
Effect” means a material and adverse effect on the results of operations,
assets, business or condition (financial or otherwise) of the Company and its
subsidiaries, taken as a whole.

     

    “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.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Purchase Price” has
the meaning set forth in Section 2.2.

     

    “SEC Reports” has the
meaning set forth in Section 3.7.

     

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

     

    “Settlement
Agreements” has the meaning set forth in Section 5.5.

     

    “Shares” has the
meaning set forth in the Recitals to this Agreement.

     

    2.           Purchase and
Sale.

     

    2.1           Purchase
and Sale.  Subject to the terms and conditions set forth in
this Agreement, the Company shall sell the Shares to the Investor, and the
Investor shall purchase the Shares from the Company.

     

    2.2           Purchase
Price.  The purchase price for the Shares is $100,000 (the
“Purchase
Price”).  The Purchase Price shall be delivered to and held by
counsel for the Company to pay or settle all of the outstanding obligations of
the Company pursuant to the terms of the Escrow Agreement attached hereto as
Exhibit A.

     

    2.3           Management
Changes.  At the Closing the Board of Directors of the Company
shall increase the number of directors to two persons and shall appoint Edward
Mooney as a director to fill the vacancy created by the increase in the number
of directors.  In addition, Neil Christiansen shall resign as an
officer of the Company and the Board of Directors shall appoint the following
persons to the offices set forth below:

     

    
      
        
          	
                  Name

                	 	
                  Office(s)

                
	 
      	 	 
      
	
                  Edward
      Mooney

                	 	
                  President
      & CEO

                
	 
      	 	 
      
	
                  Daniel
      Carlson

                	 	
                  CFO,
      Treasurer, &
Secretary

                

        

      

    

     

    2.4           Closing
Deliverables.  (a) At the Closing, the Company shall
deliver or cause to be delivered to the Investor the following:

     

    (i)           a
certificate evidencing the Shares registered in the name of the
Investor;

     

    (ii)          the
Escrow Agreement executed by the Company and Mr. Vance;

     

    (iii)         the
resignation of Neil Christiansen as sole officer of the Company;
and

     

    (iv)         the
Settlement Agreements signed by each of the Creditors and the
Company.

    
      
         

      

      
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    (b)      At
the Closing, the Investor shall deliver or cause to be delivered to the Company
the following:

     

    (i)           the
sum of $100,000 in immediately available funds, by wire transfer to the client
trust account of Ronald N. Vance, Attorney at Law, counsel for the Company to be
held and disbursed in accordance with the terms of the Escrow
Agreement;

     

    (ii)          the
Escrow Agreement executed by the Investor; and

     

    (iii)         the
written acceptances of Edward Mooney to serve as a director and officer of the
Company and of Daniel Carlson as an officer of the Company.

     

    3.           Representations
and Warranties of the Company.  The Company
hereby makes the following representations and warranties to the
Investor:

     

    3.1           Organization
and Qualification.  The Company is
duly incorporated, validly existing and in good standing under the laws of the
State of Nevada, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.  The Company is not in violation of any of the provisions
of its articles of incorporation or bylaws.  The Company is duly
qualified to conduct its businesses 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, individually or in the aggregate, reasonably be expected to
result in 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.

     

    3.2           Authorization;
Enforceability.  The Company has the requisite corporate power
and authority to enter into and to sell the Shares as contemplated by this
Agreement.  The execution and delivery of this Agreement by the
Company and the sale of the Shares contemplated hereby 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.  This Agreement has
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 as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of, creditors’ rights and remedies or by
other equitable principles of general application.

     

    3.3           No
Conflicts.  The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby do not and will not (i) conflict with or violate any
provision of the Company’s articles of incorporation or bylaws, 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, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, or result in the imposition of any
restriction whatsoever upon any of the material properties or assets of the
Company pursuant to, any agreement, credit facility, debt or other instrument
(evidencing a Company debt or otherwise) or other understanding to which the
Company is a party or by which any property or asset of the Company is bound or
affected, except, such as could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

    
      
         

      

      
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    3.4           Capitalization.  The
authorized equity securities of the Company consist of 100,000,000 shares of
common stock, of which 3,000,000 shares are issued and outstanding, and
5,000,000 shares of preferred stock, none of which are outstanding. All of the
outstanding common shares have been duly authorized and validly issued, and are
fully paid and non-assessable. There are no outstanding options, warrants,
calls, subscriptions, conversion or other rights, agreements or commitments
obligating the Company to issue any additional shares of capital stock or other
securities nor are there outstanding any securities convertible into,
exchangeable for, or evidencing the right to subscribe for any shares of common
stock or other securities of the Company.

     

    3.5           Reports,
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 and the consummation
of the transactions contemplated hereby, other than (i) filings required by
state securities laws, (ii) the filing of a Notice of Sale of Securities on
Form D with the Commission under Regulation D of the Securities Act,
and (iii) those that have been made or obtained prior to the date of this
Agreement.

     

    3.6           Issuance
of the Shares.  The Shares have been duly authorized and, when
paid for in accordance with this Agreement, will be duly and validly issued,
fully paid and non-assessable, free and clear of all of all encumbrances and
restrictions (other than those created by the Investor), except for restrictions
on transfer imposed by applicable securities laws.

     

    3.7           SEC
Reports; Financial Statements.  The Company has made available
to the Investor through the EDGAR system, true and complete copies of the
Company’s most recent Annual Report on Form 10-K for the fiscal year ended
December 31, 2009 (the “10-K”), and all other reports
filed by the Company with the Commission since the filing of the 10-K and prior
to the date hereof (collectively, the “SEC Reports”).  The
SEC Reports are the only filings required of the Company pursuant to the 1934
Act for such period.  The SEC Reports and any other materials supplied
to the Investor by the Company did not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were
made, not misleading.  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 U.S. generally accepted accounting
principles (“GAAP”)
applied on a consistent basis during the periods involved, except as may be
otherwise specified in such financial statements or the notes thereto, 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.  Except as otherwise disclosed in this Subscription
Agreement, there have been no material changes in the Company’s affairs not
disclosed in the SEC Reports.

    
      
         

      

      
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    3.8           No
Material Changes. Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in
the SEC Reports, (i) there has been no event, occurrence or development
that has had or that could reasonably be expected to result in a Material
Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than trade payables, accrued expenses and other
liabilities incurred in the ordinary course of business consistent with past
practice, all of which are listed on Schedule 3.8, (iii) the Company has
not altered its method of accounting or the identity of its auditors,
(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 option plans
and except for the issuance of 200,000 shares of common stock to Neil
Christiansen in conversion of a promissory note in the principal amount of
$5,000.

     

    3.9           Litigation.  There
is no Action which adversely affects or challenges the legality, validity or
enforceability of this Agreement.  For purposes of this Section 3.9,
“Action” means any action, suit, inquiry, notice of violation, proceeding
(including any partial proceeding such as a deposition) or investigation pending
or, to the knowledge of the Company, threatened in writing against the Company
or any of its properties before or by any court, arbitrator, governmental or
administrative agency or regulatory authority (federal, state, county, local or
foreign).

     

    3.10        Certain
Fees.  No brokerage or finder’s fees or commissions are or will
be payable by the Company to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect to
the transactions contemplated by this Agreement.  The Investor shall
have no obligation with respect to any fees or with respect to any claims (other
than such fees or commissions, if any, owed by the Investor pursuant to written
agreements executed by such Investor which fees or commissions shall be the sole
responsibility of such Investor) made by or on behalf of other Persons for fees
of a type contemplated in this Section that may be due in connection with the
transactions contemplated by this Agreement.  The Company shall pay,
and hold Investor harmless against, any liability, loss or expense (including,
without limitation, attorney’s fees and out-of-pocket expenses) arising in
connection with any claim for any such fees.

     

    3.11        Private
Offering.  Assuming the correctness of the representations and
warranties of the Investor set forth in this Agreement, the offer and sale of
the Shares hereunder is exempt from registration under the Securities
Act.

     

    3.12        Use of
Proceeds.  The net proceeds of this offering will be allocated
for the payment or settlement of all outstanding liabilities of the Company at
Closing as set forth in the Escrow Agreement.  With the payment of the
funds pursuant to the Escrow Agreement, the Company shall have no outstanding
payables or other liabilities at Closing.

    
      
         

      

      
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    4.           Representations
and Warranties of the Investor.  The Investor hereby represents
and warrants to the Company as follows:

     

    4.1           Investment
Intent.  The Investor is acquiring the Shares as principal for
its own account for investment purposes only and not with a view to or for
distributing or reselling the Shares, without prejudice, however, to the
Investor’s right at all times to sell or otherwise dispose of all or any part of
the Shares in compliance with applicable federal and state securities
laws.  The Investor does not have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the
Shares.

     

    4.2           Restricted
Securities.  The Investor understands that the Shares have not
been registered pursuant to the Securities Act, or any state securities act, and
thus are “restricted securities” as defined in Rule 144 promulgated by the
Commission and are subject to the provisions of Rule 144(i) as a shell
company.  Therefore, under current interpretations and applicable
rules, the Investor will probably have to retain the Shares for an indefinite
period until compliance with the provisions of Rule 144(i) and at the expiration
of such period its sales may be confined to brokerage transactions of limited
amounts requiring certain notification filings with the Commission and such
disposition may be available only if the Company is current in its filings with
the Commission under the 1934 Act, or other public disclosure
requirements.

     

    4.3           Limitations
on Resale.  The Investor acknowledges that it will not sell,
assign, hypothecate, or otherwise transfer any rights to, or any interest in,
the Shares except (i) pursuant to an effective registration statement under the
Securities Act, or (ii) in any other transaction which, in the opinion of
counsel acceptable to the Company, is exempt from registration under the
Securities Act, or the rules and regulations of the Commission
thereunder.

     

    4.4           Information.  The
Investor has been furnished (i) with all requested materials relating to the
business, finances, and operations of the Company; (ii) with information deemed
material to making an informed investment decision; and (iii) with additional
requested information necessary to verify the accuracy of any documents
furnished to the undersigned by the Company.  A designated
representative of the Investor has been afforded the opportunity to ask
questions of the Company and its management and to receive answers concerning
the terms and conditions of this offering.

     

    4.5           Documents.  The
Investor has received copies of the SEC Reports, including the exhibits
thereto.  The Investor has relied upon the information contained
therein and has not been furnished any other documents, literature, memorandum,
or prospectus.

     

    4.6           Knowledge
and Experience in Business and Financial Matters.  The
individual representing the Investor has such knowledge and experience in
business and financial matters that he is capable of evaluating the risks of the
prospective investment.

     

    4.7           No
Advertisements.  The Investor is not entering into this
Subscription Agreement and did not receive an offer to purchase the Shares as a
result of or subsequent to any advertisement, article, notice, or other
communication published in any newspaper, magazine, or similar media or
broadcast on television or radio, or presented at any seminar or
meeting.

    
      
         

      

      
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    4.8           Relationship
to Company.  The Investor, through its representative(s), has a
preexisting personal or business relationship with the Company or one of its
officers, directors, or controlling persons.

     

    5.           Other Agreements of the
Parties.

     

    5.1           Legends.  Certificates
evidencing the Shares to be delivered at the Closing will contain the following
legend:

     

    THESE
SECURITIES HAVE NOT 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 ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

     

    5.2           Filing of
Form 8-K Report.  Promptly following the Closing, the Company
shall enter into a transaction or shall commence business operations sufficient
that the Company shall cease to be a “shell company” as defined in Rule 12b-2
under the 1934 Act.  The Company shall file with the Commission a
report on Form 8-K which complies with the requirements of Item 2.01(f) or Item
5.06 of Form 8-K within four days following the date on which it ceases to be a
shell company.  The provisions of this Section 5.2, including any
rights or remedies provided in this Agreement, are enforceable by any
shareholder of the Company.

     

    5.3           Rule
144. With a view to making available the benefits of certain rules and
regulations of the Commission which may at any time permit the sale of
restricted shares of Company’s common stock (the “Restricted Shares”) to the
public without registration by the holders of restricted shares at the Closing
(the “Restricted
Shareholders”), the Company shall use its commercially reasonable best
efforts for a period of not less than two years from the Closing Date
to:

     

    (a)           Make
and keep public information available, as those terms are understood and defined
in Rule 144;

     

    (b)           File
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the 1934 Act;

     

    (c)           Furnish
to each Restricted Shareholder forthwith upon request a written statement by the
Company as to its compliance with the reporting requirements of Rule 144
pursuant to paragraph (c) thereof and such other information, reports and
documents so filed by the Company as such holder may reasonably request in
availing itself of any rule or regulation of the SEC allowing such holder to
sell any Restricted Shares without registration; and

    
      
         

      

      
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    (d)           Issue
a customary 144 legal opinion of counsel for the Company upon request of a
Restricted Shareholder, for which the Company may charge a reasonable fee, which
request can be made not earlier than one year from the filing of the report on
Form 8-K pursuant to Section 5.2 hereof,.

     

    The provisions of this Section 5.3,
including any rights or remedies provided in this Agreement, are enforceable by
any Restricted Shareholder.

     

    5.4           Piggyback
Registration Rights.

     

    (a)           If
at any time or times the Company shall determine to register any of its common
stock or securities convertible into or exchangeable for the Company’s common
stock under the Securities Act, whether in connection with a public offering of
securities by the Company, a public offering thereof by stockholders of the
Company (the “Other
Stockholders”), or both, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents relating to
equity securities to be issued solely in connection with any acquisition of any
entity or business or equity securities issuable in connection with the
Company’s equity compensation plan or other employee benefit plans, the Company
will promptly give written notice thereof to the shareholders of the Company who
immediately prior to Closing owned of record not less than 10,000 shares of the
Company (the “Pre-Closing
Shareholders”) and to the holder or holders of the pre-Closing restricted
shares at the time of such registration (the “Restricted Shareholders”), and
will use its commercially reasonable efforts, in good faith, except as herein
otherwise provided, to effect the registration under the Securities Act all such
shares (the “Registrable
Shares”) at the Company’s expense which such shareholders may request in
a writing delivered to the Company within fifteen (15) days after the notice
given by the Company.  The Company shall be required to provide such
registration rights to the Pre-Closing Shareholders and the Restricted
Shareholders and to maintain the effectiveness of such registration statement
for a period of not less than one year or until all the Registrable Shares
included in the registration statement have been sold or been deposited with a
brokerage firm for resale under Rule 144.  The provisions of this
Section 5.4, including any rights or remedies provided in this Agreement, are
enforceable by any Pre-Closing Shareholder or Restricted Shareholder owning
Registrable Shares.  The term “Registerable Shares” shall not include
any shares of the Company that at such time may be resold by the holder through
a registered broker without undue expense and without volume limitations
pursuant to Rule 144.

     

    (b)           Notwithstanding
anything to the contrary contained in this Section 5.4, if the Company receives
comments (“Commission
Comments”) from the Commission relating to the number of shares of common
stock included in any registration statement filed pursuant to Section 5.4(a),
and following discussions with and responses to the Commission in which the
Company uses its reasonable best efforts and time to cause as many shares owned
by Other Stockholders (“Other
Shares”) and Registrable Shares as possible to be included in such
registration statement without characterizing any holder of Other Shares or
Registrable Shares as an underwriter, the Company is unable to cause the
inclusion of all Other Shares and Registrable Shares, then the Company may (i)
remove from such registration statement such number of Registrable Shares (the
“Cut Back Shares”)
and/or (ii) agree to such restrictions and limitations on the registration and
resale of the Registrable Shares, in each case as the Commission may require in
order for the Commission to allow such registration statement to become
effective; provided, that in no event may the Company name any holder of
Registrable Shares as an underwriter without such holder’s prior written consent
(collectively, the “SEC
Restrictions”).  Unless the SEC Restrictions otherwise require,
any cut-back imposed pursuant to this Section 5.4(b) shall be allocated first
among Pre-closing Shareholders on a pro rata basis and then among the Restricted
Shareholders on a pro rata basis.  At such time as the Company is able
to effect the registration of the Cut Back Shares in accordance with any SEC
Restrictions (such date, the “Restriction Termination Date”)
all provisions of this Section 5.4 shall again be applicable to the Cut Back
Shares (which, for avoidance of doubt, retain their character as “Registrable
Shares”).

    
      
         

      

      
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    5.5           Settlement
Agreements.  The Company has obligations to repay cash advances
made by Neil Christiansen, 1st Orion
Corporation, Sparrow, Inc., and Lorikeet, Inc. in the aggregate amount of
$119,500 (the “Creditors”).  Contemporaneous
with Closing, the Company shall deliver settlement agreements from each of the
Creditors agreeing to reduce the amount for repayment which in the aggregate
shall represent the amount of the Purchase Price less the other payables of the
Company at Closing (the “Settlement
Agreements”).  The form of the Settlement Agreement is set
forth in Exhibit B.

     

    6.           Conditions Precedent to
Closing.

     

    6.1           Conditions
Precedent to the Obligations of the Investor to Purchase
Shares.  The obligation of the Investor to acquire the Shares
at the Closing is subject to the satisfaction or waiver by the Investor, at or
before the Closing, of each of the following conditions:

     

    (a)           Representations and
Warranties.  The representations and warranties of the Company
contained herein shall be true and correct in all material respects as of the
date when made and as of the Closing Date and shall be certified to by the
President at Closing;

     

    (b)           Performance.  The
Company shall have performed, satisfied and complied in all material respects
with all covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by it at or prior to the
Closing;

     

    (c)           No
Injunction.  No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction that
prohibits the consummation of any of the transactions contemplated by this
Agreement; and

     

    (d)           Company
Deliverables.  The Company shall have delivered the stock
certificate and other documents provided in Section 2.4(a).

     

    6.2           Conditions
Precedent to the Obligations of the Company to Sell the Shares.  The obligation of
the Company to sell the Shares at the Closing is subject to the satisfaction or
waiver by the Company, at or before the Closing, of each of the following
conditions:

     

    (a)           Representations and
Warranties.  The representations and warranties of the Investor
contained herein shall be true and correct in all material respects as of the
date when made and as of the Closing Date as though made on and as of such
date;

    
      
         

      

      
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    (b)           Performance.  The
Investor shall have performed, satisfied and complied in all material respects
with all covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Investor at or prior to the
Closing;

     

    (c)           No
Injunction.  No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction that
prohibits the consummation of any of the transactions contemplated by this
Agreement; and

     

    (d)           Investor
Deliverables.  The Investor shall have delivered its purchase
price in accordance with Section 2.4(b).

     

    7.           Miscellaneous.

     

    7.1           Fees and
Expenses.  Each party shall pay all fees and expenses incurred
by such party, including, but not limited to fees and expenses of its advisers,
counsel, accountants and other experts, if any, 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 sale of the Shares.

     

    7.2           Entire
Agreement.  This Agreement contains the entire understanding of
the parties with respect to the subject matter hereof and supersede all prior
agreements, understandings, discussions and representations, oral or written,
with respect to such matters, which the parties acknowledge have been merged
into such documents and exhibits.

     

    7.3           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 date of transmission, if such notice
or communication is delivered via facsimile (provided the sender receives a
machine-generated confirmation of successful transmission) at the facsimile
number specified in this Section prior to 5:00 p.m. (Utah time) on a
Business Day, (b) the next Business Day after the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
specified in this Section on a day that is not a Trading Day or later than
5:00 p.m. (Utah time) on any Business Day, (c) the Business Day
following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) 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 follows (or such other address as may be designated in writing
hereafter, in the same manner, by such Person):

     

    If to the Company prior to the
Closing:

     

    Freedom
Resources Enterprises, Inc.

    901 East
7800 South

    Midvale,
UT  84047

    Telecopier
No.: (801) 566-5931

    Attention:
Neil Christiansen, President

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    If to the
Company subsequent to the Closing:

    

    Freedom
Resources Enterprises, Inc.

    4265 San
Felipe Street

    Suite
1100

    Houston,
TX  77027

    Telecopier
No.: (832) 327-7420

    Attention:  Edward
Mooney, President

    

    If to the
Investor:

     

    Life
Power and Fuels LLC

    4265 San
Felipe Street

    Suite
1100

    Houston,
TX  77027

    Telecopier
No.: (832) 327-7420

    Attention:  Edward
Mooney, Managing Member

    

    7.4           Amendments;
Waivers; No Additional Consideration.  No provision of this
Agreement may be waived or amended except in a written instrument signed by the
Company and by the Investor.  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.

     

    7.5           Construction.  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.  The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.  This Agreement
shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

     

    7.6           Successors
and Assigns.  This Agreement shall be binding upon and inure to
the benefit of the parties and their successors and permitted
assigns.  Neither party may assign this Agreement or any rights or
obligations hereunder without the prior written consent of the other
party.

     

    7.7           Third-Party
Beneficiaries.  Except as specifically provided in Sections
5.2, 5.3, and 5.4, this Agreement does not confer any enforceable rights or
remedies on any other person other than the parties hereto.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    7.8           Governing
Law and Venue.  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 Utah,
without regard to the principles of conflicts of law thereof.  The
parties hereto irrevocably submit to the jurisdiction of the Courts of the State
of Utah located in Salt Lake County and the United States District Court of Utah
in any action arising out of or relating to this Agreement, and hereby
irrevocably agree that all claims in respect of such action may be heard and
determined in such state or federal court.  The parties hereto
irrevocably waive, to the fullest extent they may effectively do so, the defense
of an inconvenient forum to the maintenance of such action or
proceeding.  The parties further agree, to the extent permitted by
law, that final and unappealable judgment against any of them in any action or
proceeding contemplated above shall be conclusive and may be enforced in any
other jurisdiction within or outside the United States by suit on the judgment,
a certified copy of which shall be conclusive evidence of the fact and amount of
such judgment.

     

    7.9           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 transmission or by email, 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 email signature
page were an original thereof.

     

    7.10         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.

     

    7.11         Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, each of the Investor 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.

     

    7.12         Authorization.  By
signing below on behalf of the respective entities, each individual executing
this Agreement represents and warrants to the party to this Agreement that (i)
the represented entity is duly authorized to enter into this Agreement; (ii) he
or she is duly authorized to represent the entity in this offering; and (iii) he
or she is duly authorized to execute this Agreement on behalf of such
entity.

     

    7.13         Exhibits.  Each
of the exhibits referenced in this Agreement is annexed hereto and is
incorporated herein by this reference and expressly made a part
hereof.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each of the undersigned has executed this Agreement on
respective the day and year set forth below.  The effective date of
the Agreement shall be the date first written above.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	
                                    FREEDOM
      RESOURCES ENTERPRISES, INC.

                                  
	 
      	 
      	 
      	 
	
                                    Date:  May
      6, 2010

                                  	
                                    By: 

                                  	
                                      /s/ Neil
Christiansen

                                  	 
	 
      	Name:  Neil
      Christiansen	 
	 
      	Title:  President	 
	 	 	 
	 
      	
                                    LIFE
      POWER AND FUELS LLC

                                  
	 
      	 
      	 
      	 
	
                                    Date:  May
      6, 2010

                                  	
                                    By: 

                                  	
                                      /s/ Edward Mooney

                                  	 
	 
      	Name:  Edward
      Mooney	 
	 
      	Title:  Managing
      Member	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    SCHEDULE
3.8

     

    Accounts
payable have increased by $8,689.19 from March 31, 2010, through
Closing.

    
      
         

      

      
        14Freedom
Resources Enterprises, Inc.

      

      2010
Equity Incentive Plan

       

      Adopted
and Effective as of May 12, 2010

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      FREEDOM
RESOURCES ENTERPRISES, INC.

      2010
Equity Incentive Plan

      

      
        	
                1.

              	
                Purpose
      of the Plan.

              

      

       

      This Freedom Resources Enterprises,
Inc. 2010 Equity Incentive Plan is intended to promote the interests of the
Company and its shareholders by providing the Company’s officers, directors,
employees and consultants, on whose judgment, initiative and efforts the
successful conduct of the business of the Company depends, and who are
responsible for the management, growth and protection of the business, with
appropriate incentives and rewards to encourage them to continue in the employ
of the Company and to maximize their performance.

       

      
        	
                2.

              	
                Definitions.

              

      

       

      As used
in the Plan, the following definitions apply to the terms indicated
below:

       

      (a)          “Board”
shall mean the Board of Directors of the Company.

       

      (b)          “Cause,”
when used in connection with the termination of a Participant’s employment,
shall mean (i) to the extent that there is an employment agreement governing the
relationship between the Participant and the Company which contains a definition
of “cause”, cause shall consist of those acts or omissions which would
constitute cause under such agreement, otherwise cause shall mean the
termination of the Participant’s employment on account of: (ii) the willful and
continued failure by the Participant substantially to perform his or her duties
and obligations to the Company (other than any such failure resulting from
incapacity due to physical or mental illness), (iii) the willful violation by
the Participant of (A) any federal or state law or (B) any rule of the Company,
which violation would materially reflect on the Participant’s character,
competence or integrity, (iv) a breach by a Participant of the Participant’s
duty of loyalty to the Company such as Participant’s solicitation of customers
or employees of the Company on behalf of any other Person, (v) the Participant’s
unauthorized removal from the Company’s premises of any document (in any medium
or form) relating to the Company, its business or its customers, provided, however, that no
such removal shall be deemed “unauthorized” if it is in furtherance of an
individual’s duties and obligations to the Company and such removal is a common
practice at the Company, (vi) the Participant’s unauthorized disclosure to any
Person of any confidential information regarding the Company, or (vii) the
willful engaging by the Participant in any other misconduct which is materially
injurious to the Company.  For purposes of this Section 2(b), no act,
or failure to act, on a Participant’s part shall be considered “willful” unless
done, or omitted to be done, by the Participant in bad faith and without
reasonable belief that the action or omission was in the best interests of the
Company.  Any rights the Company may have hereunder in respect of the
events giving rise to Cause shall be in addition to the rights the Company may
have under any other agreement with the Participant or at law or in
equity.  If, subsequent to the termination of a Participant’s
employment without Cause, it is determined by the Board of Directors that the
Participant’s employment could have been terminated for Cause, such
Participant’s employment shall, at the election of the Committee in its sole
discretion, be deemed to have been terminated for Cause.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (c)          “Code”
shall mean the Internal Revenue Code of 1986, as amended.

       

      (d)          “Committee”
shall mean the Compensation Committee of the Board; provided, however, that if
the Company is subject to the Exchange Act, the Compensation Committee shall not
take any action under the Plan unless it is at all times composed solely of not
less than two “Non-Employee Directors” within the meaning of Rule 16b-3, as
promulgated under the Securities Exchange Act of 1934, as amended.  In
the event the Board has not established a Compensation Committee or that the
Compensation Committee is not composed of at least two Non-Employee Directors
when the Company is subject to the Exchange Act, or, in the event the Committee
is unable to act, the Board shall take any and all actions required or permitted
to be taken by the Committee under the Plan and shall serve as the
Committee.

       

      (e)          “Company”
shall mean Freedom Resources Enterprises, Inc., a Nevada
corporation.

       

      (f)           “Company
Stock” shall mean the common stock, par value $0.001 per share, of the
Company.

       

      (g)          “Disability”
shall mean any physical or mental condition as a result of which a Participant
is disabled within the meaning of Section 422(c)(6) of the Code.

       

      (h)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

       

      (i)           “Fair
Market Value” with respect to a share of Company Stock on any relevant date
shall be determined in accordance with the following provisions:

       

      (1)           If
Company Stock is publicly traded, “Fair Market Value” shall be determined as of
the last business day for which the prices or quotes discussed in this sentence
are available prior to such date and shall mean (i) the closing selling price
per share on that date of the Company Stock on the principal national securities
exchange on which the Company Stock is traded, if the Company Stock is then
traded on a national securities exchange; or (ii) the closing selling price per
share on that date of the Company Stock on the NASDAQ National Market List, if
the Company Stock is not then traded on a national securities exchange; or (iii)
the closing bid price per share last quoted on that date by an established
quotation service for over-the-counter securities, if the Company Stock is not
reported on the NASDAQ National Market List.

       

      (2)           If
Company Stock is not publicly traded, “Fair Market Value” shall be determined by
the Board of Directors in its good faith best judgment or by an independent
appraisal that meets the requirements of Section 401(a)(28)(C) of the Code and
the regulations thereunder as of a date that is no more than twelve months
before such date.

       

      (j)           “Incentive
Award” shall mean an Option, a SAR, a Restricted Stock, or a Stock Bonus Award
granted pursuant to the terms of the Plan.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (k)           “Incentive
Stock Option” shall mean an Option that is an “incentive stock option” within
the meaning of Section 422 of the Code and that is identified as an Incentive
Stock Option in the agreement by which it is evidenced.

       

      (l)
           “Issue
Date”  shall mean the date established by the Committee or the Board
on which certificates representing shares of Restricted Stock shall be issued by
the Company pursuant to the terms of Section 8(d) hereof.

       

      (m)          “Non-Qualified
Stock Option” shall mean an Option that is not an Incentive Stock
Option.

       

      (n)           “Option”
shall mean an option to purchase shares of Company Stock granted pursuant to
Section 6 hereof.  Each Option, or portion thereof, shall be
identified as either an Incentive Stock Option or a Non-Qualified Stock Option
in the agreement by which such Option is evidenced.

       

      (o)           “Participant”
shall mean an employee, officer or director of the Company or any subsidiary of
the Company or a consultant to the Company or any subsidiary of the Company
selected to participate in the Plan and to whom an Incentive Award is granted
pursuant to the Plan, and, upon his or her death, that Person’s successors,
heirs, executors and administrators, as the case may be.

       

      (p)           “Person”
shall mean a “person,” such as term is used in Sections 13(d) and 14(d) of the
Exchange Act.

       

      (q)           “Plan”
shall mean this Freedom Resources Enterprises, Inc. 2010 Equity Incentive Plan,
as it may be amended from time to time.

       

      (r) 
          “Restricted Stock”
shall mean a share of Company Stock that is granted pursuant to the terms of
Section 8 hereof and that is subject to the restrictions set forth in Section
8(c) hereof for as long as such restrictions continue to apply to such
share.

       

      (s)           “Retirement”
shall mean a Participant’s termination of employment (other than by reason of
death or Disability and other than a termination that is (or is deemed to have
been) for Cause) on or after the later of (i) the date the Participant attains
age 65 and (ii) the date the Participant has completed ten years of service with
the Company.

       

      (t)   
        “Securities Act” shall mean the
Securities Act of 1933, as amended.

       

      (u)           “SAR”
shall mean a stock appreciation right granted pursuant to Section 7
hereof.

       

      (v)           “Stock
Bonus” shall mean a grant of a bonus payable in shares of Company Stock pursuant
to Section 9 hereof.

       

      (w)          “Vesting
Date” shall mean the date and/or dates established by the Board on which an
Incentive Award may vest.  In the absence of provisions in an
individual grant agreement to the contrary, Options shall vest ratably over a
four (4) year period, with twenty-five percent (25%) vesting on the first
anniversary of the grant date (the “initial vesting date”) and twenty-five
percent (25%) vesting on each of the proceeding three (3) anniversaries of the
initial vesting date.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      
        	
                3.

              	
                Stock
      Subject to the Plan.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Plan
      Awards.

              

      

       

      Under the Plan, the Board may, in its
sole and absolute discretion, grant any or all of the following types of
Incentive Awards to a Participant: an Option, a SAR, a Restricted Stock, or a
Stock Bonus Award.

       

      
        	
                 
      

              	
                (b)

              	
                Individual
      Awards.

              

      

       

      Incentive Awards granted under the Plan
may be made up entirely of one type of Incentive Award or any combination of
types of Incentive Awards available under the Plan, in the Board’s sole
discretion.

       

      
        	
                 
      

              	
                (c)

              	
                Aggregate Plan Share
      Reserve.

              

      

       

      The total number of shares of Company
Stock available for grants of Incentive Awards under the Plan shall be
3,300,000, subject to adjustment in accordance with Section 10 of the
Plan.  These shares may be either authorized but unissued shares,
newly-issued shares or reacquired shares of Company Stock.  If an
Incentive Award or portion thereof shall expire or terminate for any reason
without having been exercised in full, the unexercised shares covered by such
Incentive Award shall be available for future grants of Incentive Awards under
the Plan.

       

      
        	
                4.

              	
                Administration
      of the Plan.

              

      

       

      The Plan shall be administered by the
Committee; provided,
however, that the Board alone shall have the authority to, from time to
time, designate the employees, officers and directors of the Company or any
subsidiary of the Company or consultants to the Company or any subsidiary of the
Company who shall be granted Incentive Awards and the amount and type of such
Incentive Awards.

       

      Otherwise, the Committee shall have the
full authority and discretion to administer the Plan, including authority to
interpret and construe any provision of the Plan and the terms of any Incentive
Award issued under the Plan.  The Committee may also adopt any rules
and regulations for administering the Plan as it may deem necessary or
appropriate.  Decisions of the Committee shall be final and binding on
all parties.

       

      The Committee may, in its absolute
discretion, without amendment to the Plan, (i) accelerate the date on which any
Option or SAR granted under the Plan becomes exercisable or otherwise adjust any
of the terms of such Option or SAR (except that no such adjustment shall,
without the consent of a Participant, reduce the Participant’s rights under any
previously granted and outstanding Incentive Award), (ii) accelerate the Vesting
Date or Issue Date of any share of Restricted Stock issued under the Plan, or
waive any condition imposed thereunder, and (iii) otherwise adjust or waive any
condition imposed on any Incentive Award made hereunder; provided, however, that the
Committee shall not take any action which would cause any Incentive Award to
become subject to taxation under Section 409A of the Code.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      In addition, the Board may, in its
absolute discretion and without amendment to the Plan, grant Incentive Awards of
any type to Participants on the condition that such Participants surrender to
the Committee for cancellation such other Incentive Awards of the same or any
other type (including, without limitation, Incentive Awards with higher exercise
prices or values) as the Committee specifies; provided, however, that (i)
the number of any such replacement Incentive Awards does not exceed the number
of cancelled Incentive Awards to which they relate, (ii) the exercise price (if
any) of such replacement Incentive Awards is different than the exercise price
of the cancelled Incentive Awards to which they relate, and (iii) such
replacement Incentive Awards are granted in compliance with the terms of the
Plan and are not, and would not cause any other Incentive Award to become,
subject to taxation under Section 409A of the Code.  Notwithstanding
Section 3(c) herein, prior to the surrender of such other Incentive Awards,
Incentive Awards granted pursuant to the preceding sentence of this Section 4
shall not count against the limit set forth in such Section 3(c).

       

      Whether an authorized leave of absence,
or absence in military or government service, shall constitute termination of
employment shall be determined by the Committee, subject to applicable
laws.

       

      No member of the Committee shall be
liable for any action, omission or determination relating to the Plan, and the
Company (and any affiliate that may adopt the Plan), jointly and severally,
shall indemnify and hold harmless each member of the Committee and each other
director or employee of the Company (or affiliate) to whom any duty or power
relating to the administration or interpretation of the Plan has been delegated
against any cost or expense (including counsel fees) or liability (including any
sum paid in settlement of a claim with the approval of the Committee) arising
out of any action, omission or determination unless such action, omission or
determination was taken or made by such member, director or employee in bad
faith and without reasonable belief that it was in the best interests of the
Company and its affiliates, as the case may be.

       

      
        	
                5.

              	
                Eligibility.

              

      

       

      The
Persons who shall be eligible to receive Incentive Awards pursuant to the Plan
shall be those employees, officers and directors of the Company or any
subsidiary of the Company or consultants to the Company or any subsidiary of the
Company who are responsible for the management, growth and protection of the
business of the Company; provided, however, that only
employees of the Company or any subsidiary of the Company shall be eligible to
receive Incentive Awards consisting of Incentive Stock Options.

       

      
        	
                6.

              	
                Stock
      Option Awards.

              

      

       

      The Board may grant Options pursuant to
the Plan.  Such Options shall be evidenced by agreements in such form
as the Committee shall from time to time approve.  Options shall
comply with and be subject to the following terms and
conditions:

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (a)

              	
                Identification of
      Options.

              

      

       

      All Options granted under the Plan
shall be clearly identified in the agreement evidencing such Options as either
Incentive Stock Options or as Non-Qualified Stock Options or a combination of
both.

       

      
        	
                 
      

              	
                (b)

              	
                Exercise
      Price.

              

      

       

      The exercise price of any Option
granted under the Plan shall be such price as the Board shall determine; provided, however, that such
price shall be not less than 100% of the Fair Market Value of a share of Company
Stock on the date on which such Option is granted; and, provided, further, that
such price may not be less than the minimum price required by law.

       

      
        	
                 
      

              	
                (c)

              	
                Term and Exercise of
      Options.

              

      

       

      (i)           Each
Option shall be exercisable on such date or dates, during such period, and for
such number of shares of Company Stock as shall be determined by the Board on
the day on which such Option is granted and set forth in the Option agreement
with respect to such Option; provided, however, that no
Option shall be exercisable after the expiration of ten years from the date such
Option was granted; and, provided, further, that each
Option shall be subject to earlier termination, expiration or cancellation as
provided in the Plan.

       

      (ii)          Each
Option shall be exercisable in whole or in part.  The partial exercise
of an Option shall not cause the expiration, termination or cancellation of the
remaining portion thereof.  Upon the partial exercise of an Option,
the agreement evidencing such Option, marked with such notations as the
Committee may deem appropriate to evidence such partial exercise, shall be
returned to the Participant exercising such Option together with the delivery of
the certificates described in Section 6(e) hereof.

       

      (iii)         An
Option shall be exercised by delivering a written notice to the Company’s
principal office to the attention of its Secretary.  Such notice shall
specify the number of shares of Company Stock with respect to which the Option
is being exercised, shall be signed by the Participant, and shall be accompanied
by the agreement (or agreements) evidencing the Option and payment in full of
the applicable exercise price for shares of Company Stock purchased in any
combination of the forms specified below:

       

      (A)           in
cash, by certified check, bank cashier’s check or wire transfer;

       

      (B)           subject
to the approval of the Committee, in shares of Company Stock owned by the
Participant and valued at their Fair Market Value on the date of such
exercise;

       

      (C)           subject
to the approval of the Committee, pursuant to a “cashless exercise” pursuant to
procedures adopted by the Committee whereby the Participant, by a properly
written notice, directs (a) an immediate market sale or margin loan respecting
all or a part of the shares of Company Stock to which the Participant is
entitled upon exercise pursuant to an extension of credit by the Company to the
Participant of the exercise price, (b) the delivery of the shares of the Company
Stock from the Company directly to the brokerage firm, and (c) the delivery of
the exercise price from the sale or margin loan proceeds from the brokerage firm
directly to the Company; or

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (D)           such
other methods as the Committee may approve, from time to time.

       

      Any
payments in shares of Company Stock shall be effected by the delivery of such
shares to the Secretary of the Company, duly endorsed in blank or accompanied by
stock powers duly executed in blank, together with any other documents and
evidences as the Secretary of the Company shall require from time to
time

       

      
        	
                 
      

              	
                (d)

              	
                Nonassignability.

              

      

       

      During the lifetime of a Participant,
each Option granted to him or her shall be exercisable only by him or
her.  No Option shall be assignable or transferable otherwise than by
will or by the laws of descent and distribution.

       

      
        	
                 
      

              	
                (e)

              	
                Issuance of
      Certificates.

              

      

       

      Certificates for shares of Company
Stock purchased upon the exercise of an Option shall be issued in the name of
the Participant or his or her beneficiary, as the case may be, and delivered to
the Participant or his or her beneficiary, as the case may be, as soon as
practicable following the date on which the Option is exercised.

       

      
        	
                 
      

              	
                (f)

              	
                Limitations on Grant
      of Incentive Stock Options.

              

      

       

      (i)           The
aggregate Fair Market Value of shares of Company Stock with respect to which
Incentive Stock Options granted hereunder are exercisable for the first time by
a Participant during any calendar year under the Plan and any other stock option
plan of the Company (or any “subsidiary corporation” of the Company within the
meaning of Section 424 of the Code) shall not exceed $100,000.  Such
Fair Market Value shall be determined as of the date on which each such
Incentive Stock Option is granted.  In the event that the aggregate
Fair Market Value of shares of Company Stock with respect to such Incentive
Stock Options exceeds $100,000, then Incentive Stock Options granted hereunder
to such Participant shall, to the extent and in the order in which they were
granted, automatically be deemed to be Non-Qualified Stock Options, but all
other terms and provisions of such Incentive Stock Options shall remain
unchanged.

       

      (ii)          No
Incentive Stock Option may be granted to an individual if, at the time of the
proposed grant, such individual owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or any of its
"subsidiary corporations" (within the meaning of Section 424 of the Code),
unless (I) the exercise price of such Incentive Stock Option is at least 110% of
the Fair Market Value of a share of Company Stock at the time such Incentive
Stock Option is granted and (II) such Incentive Stock Option is not exercisable
after the expiration of five years from the date such Incentive Stock Option is
granted.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (iii)         No
Incentive Stock Option may be granted to an individual if, at the time of the
proposed grant, such individual is not an employee of the Company.

      

      
        	
                 
      

              	
                (g)

              	
                Effect of Termination
      of Employment.

              

      

       

      (i)           In
the event the employment or engagement of a Participant with the Company shall
terminate (as determined by the Committee in its sole discretion) for any reason
other than Retirement, Disability, death or for Cause, (A) Options granted to
such Participant, to the extent that they were exercisable at the time of such
termination, shall remain exercisable until 90 days after the date of such
termination, on which date they shall expire, and (B) Options granted to such
Participant, to the extent that they were not exercisable at the time of such
termination, shall expire at the close of business on the date of such
termination; provided,
however, that no Option shall be exercisable after the expiration of its
term.

       

      (ii)          In
the event that the employment or engagement of a Participant with the Company
shall terminate on account of the Retirement, Disability or death of the
Participant, (A) Options granted to such Participant, to the extent that they
were exercisable at the time of such termination, shall remain exercisable until
the expiration of their term and (B) Options granted to such Participant, to the
extent that they were not exercisable at the time of such termination, shall
expire at the close of business on the date of such termination.  The
effect of exercising any Incentive Stock Option on a day that is more than 90
days after the date of such termination (or, in the case of a termination of
employment on account of Disability, on a day that is more than one year after
the date of such termination) will be to cause such Incentive Stock Option to be
treated as a Non-Qualified Stock Option.

       

      (iii)         In
the event of the termination of a Participant’s employment for Cause, all
outstanding Options (vested or unvested) granted to such Participant shall
automatically expire at the commencement of business as of the date of such
termination.

       

      
        	
                7.

              	
                SARs.

              

      

       

      The Board may grant SARs pursuant to
the Plan, which SARs shall be evidenced by agreements in such form as the
Committee shall from time to time approve.  SARs shall comply with and
be subject to the following terms and conditions:

       

      
        	
                 
      

              	
                (a)

              	
                Exercise
      Price.

              

      

       

      The exercise price of any SAR granted
under the Plan shall be such price as the Board shall determine; provided, however, that such
price shall be not less than 100% of the Fair Market Value of a share of Company
Stock on the date on which such SAR is granted; and, provided, further, that
such price may not be less than the minimum price required by law.

       

      
        	
                 
      

              	
                (b)

              	
                Benefit Upon
      Exercise.

              

      

       

      (i)           The
exercise of a SAR with respect to any number of shares of Company Stock shall
entitle a Participant to a cash payment, for each such share, equal to the
excess of (A) the Fair Market Value of a share of Company Stock on the exercise
date over (B) the exercise price of the SAR (subject to applicable withholding
payment requirements).

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (ii)          All
payments under this Section 7(b) shall be made as soon as practicable, but in no
event later than five business days, after the date of the
exercise.

       

      
        	
                 
      

              	
                (c)

              	
                Term and Exercise of
      SARs.

              

      

       

      (i)           Each
SAR shall be exercisable on such date or dates, during such period, and for such
number of shares of Company Stock as shall be determined by the Board and set
forth in the SAR agreement with respect to such SAR; provided, however, that no
SAR shall be exercisable after the expiration of ten years from the date such
SAR was granted; and provided,
further, that each SAR shall be subject to earlier termination,
expiration or cancellation as provided in the Plan.

       

      (ii)          Each
SAR may be exercised in whole or in part.  The partial exercise of a
SAR shall not cause the expiration, termination or cancellation of the remaining
portion thereof.   Upon the partial exercise of a SAR, the
agreement evidencing such SAR, marked with such notations as the Committee may
deem appropriate to evidence such partial exercise, shall be returned to the
Participant exercising such SAR together with the payment described in Section
7(b) or 7(b)(ii) hereof.

       

      (iii)         A
SAR shall be exercised by delivering written notice to the Company’s principal
office, to the attention of its Secretary.  Such notice shall be
accompanied by the applicable agreement (or agreements) evidencing the SAR,
shall specify the number of shares of Company Stock with respect to which the
SAR is being exercised, and shall be signed by the Participant.  The
date upon which such written notice is received by the Company shall be the
exercise date for the SAR.

       

      (iv)         During
the lifetime of a Participant, each SAR granted to him or her shall be
exercisable only by him or her.  No SAR shall be assignable or
transferable otherwise than by will or by the laws of descent and
distribution.

       

      
        	
                 
      

              	
                (d)

              	
                Termination of
      Employment.

              

      

       

      (i)           In
the event that the employment of a Participant with the Company shall terminate
(as determined by the Committee in its sole discretion) for any reason other
than Retirement, Disability, death or for Cause, (A) SARs granted to such
Participant, to the extent that they were exercisable at the time of such
termination, shall remain exercisable until the 30th day after such termination,
on which date they shall expire and (B) SARs granted to such Participant, to the
extent that they were not exercisable at the time of such termination, shall
expire at the close of business on the date of such termination; provided, however, that no
SAR shall be exercisable after the expiration of its term.

       

      (ii)          In
the event that the employment of a Participant with the Company shall terminate
on account of the Retirement, Disability or death of the Participant, (A) SARs
granted to such Participant, to the extent that they were exercisable at the
time of such termination, shall remain exercisable until the expiration of their
term and (B) SARs granted to such Participant, to the extent that they were not
exercisable at the time of such termination, shall expire at the close of
business on the date of such termination.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      (iii)         In
the event of the termination of the Participant’s employment for Cause, all
outstanding SARs granted to such Participant shall automatically expire at the
commencement of business as of the date of such termination.

       

      
        	
                 
      

              	
                (e)

              	
                Tandem
      SARs.

              

      

       

      SARs may be granted in tandem with
Options (or on a stand-alone basis).  To the extent SARs are granted
in tandem with Options and SARs are exercised, the related Options shall be
cancelled.  Similarly, if and to the extent the Options are exercised,
the related SARs shall be cancelled.

       

      
        	
                8.

              	
                Restricted
      Stock.

              

      

       

      The Board may grant shares of
Restricted Stock pursuant to the Plan.  Each grant of shares of
Restricted Stock shall be evidenced by an agreement in such form as the
Committee shall from time to time approve.  Each grant of shares of
Restricted Stock shall comply with and be subject to the following terms and
conditions:

       

      
        	
                 
      

              	
                (a)

              	
                Issue Date and Vesting
      Date.

              

      

       

      At the time of the grant of shares of
Restricted Stock, the Board shall establish an Issue Date or Issue Dates and a
Vesting Date or Vesting Dates with respect to such shares.  The Board
may divide such shares into classes and assign a different Issue Date and/or
Vesting Date for each class.  Except as provided in Sections 8(c) and
8(f) hereof, upon the occurrence of the Issue Date with respect to a share of
Restricted Stock, a share of Restricted Stock shall be issued in accordance with
the provisions of Section 8(d) hereof.  Provided that all conditions
to the vesting of a share of Restricted Stock imposed pursuant to Section 8(b)
hereof are satisfied, and except as provided in Sections 8(c) and 8(f) hereof,
upon the occurrence of the Vesting Date with respect to a share of Restricted
Stock, such share shall vest and the restrictions of Section 8(c) hereof shall
cease to apply to such share.

       

      
        	
                 
      

              	
                (b)

              	
                Conditions to
      Vesting.

              

      

       

      At the time of the grant of shares of
Restricted Stock, the Board may impose such restrictions or conditions, not
inconsistent with the provisions hereof, to the vesting of such shares as it, in
its absolute discretion, deems appropriate.  By way of example and not
by way of limitation, the Board may require, as a condition to the vesting of
any shares of Restricted Stock, that the Participant or the Company achieve such
performance criteria as the Board may specify at the time of the grant of such
shares.

       

      
        	
                 
      

              	
                (c)

              	
                Restrictions on
      Transfer Prior to Vesting.

              

      

       

      Prior to the vesting of a share of
Restricted Stock, no transfer of a Participant’s rights to such share, whether
voluntary or involuntary, by operation of law or otherwise, shall vest the
transferee with any interest, or right in, or with respect to, such share, but
immediately upon any attempt to transfer such rights, such share, and all the
rights related thereto, shall be forfeited by the Participant and the transfer
shall be of no force or effect.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (d)

              	
                Issuance of
      Certificates.

              

      

       

      (i)           Except
as provided in Sections 8(c) or 8(f) hereof, reasonably promptly after the Issue
Date with respect to shares of Restricted Stock, the Company shall cause to be
issued a stock certificate, registered in the name of the Participant to whom
such shares were granted, evidencing such shares; provided, however, that the
Company shall not cause to be issued such stock certificate unless it has
received a stock power duly endorsed in blank with respect to such
shares.  Each such stock certificate shall bear the following
legend:

       

      THE
TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY
ARE SUBJECT TO THE RESTRICTIONS, TERMS, AND CONDITIONS (INCLUDING FORFEITURE
PROVISIONS AND RESTRICTIONS AGAINST TRANSFER) CONTAINED IN THE FREEDOM RESOURCES
ENTERPRISES, INC. 2010 EQUITY INCENTIVE PLAN AND INCENTIVE AWARD AGREEMENT
ENTERED INTO BETWEEN THE REGISTERED OWNER OF SUCH SHARES AND FREEDOM RESOURCES
ENTERPRISES, INC.  A COPY OF THE PLAN AND AGREEMENT IS ON FILE IN THE
OFFICE OF THE SECRETARY OF FREEDOM RESOURCES ENTERPRISES, INC., 4265 SAN FELIPE
STREET, SUITE 1100, HOUSTON, TX 77027.

       

      Such
legend shall not be removed from the certificate evidencing such shares until
such shares vest pursuant to the terms hereof.

       

      (ii)          Each
certificate issued pursuant to Section 8(d)(i) hereof, together with the stock
powers relating to the shares of Restricted Stock evidenced by such certificate,
shall be deposited by the Company with a custodian designed by the
Company.  The Company shall cause such custodian to issue to the
Participant a receipt evidencing the certificates held by it which are
registered in the name of the Participant.

       

      
        	
                 
      

              	
                (e)

              	
                Consequences Upon
      Vesting.

              

      

       

      Upon the vesting of a share of
Restricted Stock pursuant to the terms hereof, the restrictions of Section 8(c)
hereof shall cease to apply to such share.  Reasonably promptly after
a share of Restricted Stock vests pursuant to the terms hereof, the Company
shall cause to be issued and delivered to the Participant to whom such share was
granted, a certificate evidencing such share, free of the legend set forth in
Section 8(d)(i) hereof, together with any other property of the Participant held
by the custodian pursuant to Section 8(d)(ii) hereof.

       

      
        	
                 
      

              	
                (f)

              	
                Effect of Termination
      of Employment.

              

      

       

      (i)           In
the event that the employment of a Participant with the Company shall terminate
for any reason other than Cause prior to the vesting of shares of Restricted
Stock granted to such Participant, such Restricted Stock shall be forfeited on
the date of such termination; provided, however, that the
Committee may, in its sole and absolute discretion, vest the Participant in all
or any portion of shares of Restricted Stock which would otherwise be forfeited
pursuant to the provisions of this Section.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (ii)          In
the event of the termination of a Participant’s employment for Cause, all shares
of Restricted Stock granted to such Participant which have not vested as of the
date of such termination shall immediately be forfeited.

       

      
        	
                9.

              	
                Stock
      Bonuses.

              

      

       

      The Board may grant Stock Bonuses in
such amounts as it shall determine from time to time.  A Stock Bonus
shall be paid at such time and subject to such conditions as the Board shall
determine at the time of the grant of such Stock Bonus.  Certificates
for shares of Company Stock granted as a Stock Bonus shall be issued in the name
of the Participant to whom such grant was made and delivered to such Participant
as soon as practicable after the date on which such Stock Bonus is required to
be paid.

       

      
        	
                10.

              	
                Adjustment
      Upon Changes in Company Stock.

              

      

       

      Provided that the Committee shall not
take any action pursuant to this Section 10 which would cause any Incentive
Award to become subject to taxation under Section 409A of the Code:

       

      
        	
                 
      

              	
                (a)

              	
                Shares Available for
      Grants.

              

      

       

      In the event of any change in the
number of shares of Company Stock outstanding by reason of any stock dividend or
split, reverse stock split, recapitalization, merger, consolidation, combination
or exchange of shares or similar corporate change, the maximum number of shares
of Company Stock with respect to which the Board may grant Options, SARs, shares
of Restricted Stock, and Stock Bonuses under Section 3 hereof shall be
appropriately adjusted by the Committee.  In the event of any change
in the number of shares of Company Stock outstanding by reason of any other
event or transaction, the Committee may, but need not, make such adjustments in
the number of shares of Company Stock with respect to which Options, SARs,
shares of Restricted Stock, and Stock Bonuses may be granted under Section 3
hereof as the Committee may deem appropriate.

       

      
        	
                 
      

              	
                (b)

              	
                Outstanding Restricted
      Stock.

              

      

       

      Unless the Committee in its absolute
discretion otherwise determines, any securities or other property (including
dividends paid in cash) received by a Participant with respect to a share of
Restricted Stock, the Issue Date with respect to which occurs prior to such
event, but which has not vested as of the date of such event, as a result of any
dividend, stock split, reverse stock split, recapitalization, merger,
consolidation, combination, exchange of shares or similar corporate exchange
will not vest until such share of Restricted Stock vests and shall be promptly
deposited with the custodian designated pursuant to Section 8(d)(ii)
hereof.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      The Committee may, in its absolute
discretion, adjust any grant of shares of Restricted Stock, the Issue Date with
respect to which has not occurred as of the date of the occurrence of any of the
following events, to reflect any dividend, stock split, reverse stock split,
recapitalization, merger, consolidation, combination, exchange of shares or
similar corporate change as the Committee may deem appropriate to prevent the
enlargement or dilution of rights of Participants under the
grant.

      
        	
                 
      

              	
                (c)

              	
                Outstanding Options
      and SARs – Increase or Decrease in Issued Shares Without
      Consideration.

              

      

      

      Subject to any required action by the
shareholders of the Company, in the event of any increase or decrease in the
number of issued shares of Company Stock resulting from a subdivision or
consolidation of shares of Company Stock or the payment of a stock dividend on
the shares of Company Stock, or any other increase or decrease in the number of
such shares effected without receipt of consideration by the Company, the
Committee may, but need not, proportionally adjust the number of shares of
Company Stock subject to each outstanding Option and SAR, and the exercise price
per share of Company Stock of each such Option and SAR.

       

      
        	
                 
      

              	
                (d)

              	
                Outstanding Options
      and SARs - Certain Mergers.

              

      

       

      Subject to any required action by the
shareholders of the Company, in the event that the Company shall be the
surviving corporation in any merger or consolidation (except a merger or
consolidation as a result of which the holders of shares of Company Stock
receive securities of another corporation), each Option and SAR outstanding on
the date of such merger or consolidation shall pertain to and apply to the
securities which a holder of the number of shares of Company Stock subject to
such Option or SAR would have received in such merger or
consolidation.

       

      
        	
                 
      

              	
                (e)

              	
                Outstanding Options,
      SARs - Certain Other
Transactions.

              

      

       

      In the event of a dissolution or
liquidation of the Company; a sale of substantially all of the Company’s assets;
a merger or consolidation involving the Company in which the Company is not the
surviving corporation; or a merger or consolidation involving the Company in
which the Company is the surviving corporation but the holders of shares of
Company Stock receive securities of another corporation and/or other property,
including cash, the Committee shall, in its absolute discretion, have the power
to:

       

      (i)           cancel,
effective immediately prior to the occurrence of such event, each Option and SAR
outstanding immediately prior to such event (whether or not then exercisable),
and, in full consideration of such cancellation, pay to the Participant to whom
such Option or SAR was granted an amount in cash, for each share of Company
Stock subject to such Option or SAR, respectively, equal to the excess of (A)
the value, as determined by the Committee in its absolute discretion, of the
property (including cash) received by the holder of a share of Company Stock as
a result of such event over (B) the exercise price of such Option or SAR
(subject to applicable withholding payment requirements); or

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      (ii)          provide
for the exchange of each Option and SAR outstanding immediately prior to such
event (whether or not then exercisable) for an option on or stock appreciation
right with respect to, as appropriate, some or all of the property for which
such Option or SAR is exchanged and, incident thereto, make an equitable
adjustment as determined by the Committee in its absolute discretion in the
exercise price of the option or stock appreciation right, or, if appropriate,
provide for a cash payment to the Participant to whom such Option or SAR was
granted in partial consideration for the exchange of the Option or
SAR.

       

      
        	
                 
      

              	
                (f)

              	
                Outstanding Options
      and SARs - Other Changes.

              

      

       

      In the event of any change in the
capitalization of the Company or a corporate change other than those
specifically referred to in Sections 10(c), 10(d) or 10(e) hereof, the Committee
may, in its absolute discretion, make such adjustments in the number of shares
subject to Options or SARs outstanding on the date on which such change occurs
and in the per share exercise price of each such Option and SAR as the Committee
may consider appropriate to prevent dilution or enlargement or
rights.

       

      
        	
                 
      

              	
                (g)

              	
                No Other
      Rights.

              

      

       

      Except as expressly provided in the
Plan, no Participant shall have any rights by reason of any subdivision or
consolidation of Company Stock, the payment of any dividend, any increase or
decrease in the number of shares of Company Stock or any dissolution,
liquidation, merger or consolidation of the Company or any other
corporation.  Except as expressly provided in the Plan, no issuance by
the Company of Company Stock, or securities convertible into shares of Company
Stock, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number of shares of Company Stock subject to an Incentive Award
or the exercise price of any Option or SAR.

       

      
        	
                11.

              	
                Rights
      as a Stockholder.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                No Rights as a
      Stockholder.

              

      

       

      No Person shall have any rights as a
stockholder with respect to any shares of Company Stock covered by or relating
to any Incentive Award granted pursuant to the Plan until the date the Person
becomes the owner of record with respect to such shares.   Except
as otherwise expressly provided in Section 10 hereof, no adjustment to any
Incentive Award shall be made for dividends or other rights for which the record
date occurs prior to the date such stock certificate is issued.

       

      
        	
                 
      

              	
                (b)

              	
                Accrual of
      Dividends.

              

      

       

      Whenever Restricted Shares are paid to
a Participant or beneficiary under the Plan, such Participant or beneficiary
shall also be entitled to receive, with respect to each Restricted Share paid,
an amount equal to any cash dividends, and number of shares of Company Stock
equal to any stock dividends, declared and paid with respect to a share of
Company Stock between the date the relevant Restricted Share award was granted
and the date the Restricted Shares are being distributed.  At the
discretion of the Committee, interest may be paid on the amount of cash
dividends withheld, including cash dividends on stock dividends, at a rate and
subject to such terms as determined by the Committee.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      
        	
                12.

              	
                No
      Special Employment Rights; No Rights to Incentive
  Award.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                No Special Employment
      Rights.

              

      

       

      Nothing contained in the Plan or any
Incentive Award shall confer upon any Participant any right with respect to the
continuation of his or her employment by or service with the Company or any
subsidiary of the Company or interfere in any way with the right of the Company,
subject to the terms of any separate employment or consulting agreement to the
contrary, at any time to terminate such employment or service or to increase or
decrease the compensation of the Participant from the rate in existence at the
time of the grant of an Incentive Award.

       

      
        	
                 
      

              	
                (b)

              	
                No Rights to Incentive
      Awards.

              

      

       

      No Person shall have any claim or right
to receive an Incentive Award hereunder.  The Board’s granting of an
Incentive Award to a Participant at any time shall neither require the Board to
grant an Incentive Award to such Participant or any other Participant or other
Person at any time nor preclude the Board from making subsequent grants to such
Participant or any other Participant or other Person.

       

      
        	
                13.

              	
                Securities
      Matters.

              

      

       

      (a)           The
Company shall be under no obligation to effect the registration pursuant to the
Securities Act of any interests in the Plan or any shares of Company Stock to be
issued hereunder or to effect similar compliance under any state
laws.  Notwithstanding anything herein to the contrary, the Company
shall not be obligated to cause to be issued or delivered any certificates
evidencing shares of Company Stock pursuant to the Plan unless and until the
Company is advised by its counsel that the issuance and delivery of such
certificates is in compliance with all applicable laws, regulations of
governmental authority, and the requirements of NASDAQ and any other securities
exchange on which shares of Company Stock are traded.  The Committee
may require, as a condition of the issuance and delivery of certificates
evidencing shares of Company Stock pursuant to the terms hereof, that the
recipient of such shares make such covenants, agreements and representations,
and that such certificates bear such legends, as the Committee, in its sole
discretion, deems necessary or desirable.

       

      (b)           The
exercise of any Option granted hereunder shall be effective only at such time as
counsel to the Company shall have determined that the issuance and delivery of
shares of Company Stock pursuant to such exercise is in compliance with all
applicable laws, regulations of governmental authority, and the requirements of
NASDAQ and any other securities exchange on which shares of Company Stock are
traded.  The Committee may, in its sole discretion, defer the
effectiveness of any exercise of an Option granted hereunder in order to allow
the issuance of shares of Company Stock pursuant thereto to be made pursuant to
registration or an exemption from registration or other methods for compliance
available under federal or state securities laws.  The Committee shall
inform the Participant in writing of its decision to defer the effectiveness of
the exercise of an Option granted hereunder.  During the period that
the effectiveness of the exercise of an Option has been deferred, the
Participant may, by written notice, withdraw such exercise and obtain a refund
of any amount paid with respect thereto.

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      (c)           All
Company Stock issued pursuant to the terms of the Plan shall constitute
“restricted securities,” as that term is defined in Rule 144 promulgated
pursuant to the Securities Act, and may not be transferred except in compliance
with the registration requirements of the Securities Act or an exemption
therefrom.

       

      (d)           Certificates
for shares of Company Stock, when issued, may have substantially the following
legend, or statements of other applicable restrictions, endorsed thereon, and
may not be immediately transferable:

       

      THE
SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS.  THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED,
TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE
SATISFACTORY TO THE ISSUER (WHICH, IN THE DISCRETION OF THE ISSUER, MAY INCLUDE
AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER) THAT SUCH OFFER SALE, PLEDGE,
TRANSFER OR OTHER DISPOSITION WILL NOT VIOLATE APPLICABLE FEDERAL OR STATE
LAWS.

       

      This
legend shall not be required for shares of Company Stock issued pursuant to an
effective registration statement under the Securities Act and in accordance with
applicable state securities laws.

       

      
        	
                14.

              	
                Withholding
      Taxes.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Cash
      Remittance.

              

      

       

      Whenever shares of Company Stock are to
be issued upon the exercise of an Option, the occurrence of the Issue Date or
Vesting Date with respect to a share of Restricted Stock or the payment of a
Stock Bonus, the Company shall have the right to require the Participant to
remit to the Company in cash an amount sufficient to satisfy federal, state, and
local withholding tax requirements, if any, attributable to such exercise,
occurrence or payment prior to the delivery of any certificate or certificates
for such shares.  In addition, upon the exercise of an SAR, the
Company shall have the right to withhold from any cash payment required to be
made pursuant thereto an amount sufficient to satisfy the federal, state and
local withholding tax requirements, if any, attributable to such exercise or
grant.

       

      
        	
                 
      

              	
                (b)

              	
                Stock
      Remittance.

              

      

       

      Subject to Section 14(c) hereof, at the
election of the Participant, subject to the approval of the Committee, when
shares of Company Stock are to be issued upon the exercise of an Option, the
occurrence of the Issue Date or the Vesting Date with respect to a share of
Restricted Stock, or the grant of a Stock Bonus, in lieu of the remittance
required by Section 14(a) hereof, the Participant may tender to the Company a
number of shares of Company Stock determined by such Participant, the Fair
Market Value of which at the tender date the Committee determines to be
sufficient to satisfy the minimum federal, state and local withholding tax
requirements, if any, attributable to such exercise, occurrence or grant and not
greater than the Participant’s estimated total federal, state and local tax
obligations associated with such exercise, occurrence or grant.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (c)

              	
                Stock
      Withholding.

              

      

       

      The Company shall have the right, when
shares of Company Stock are to be issued upon the exercise of an Option, the
occurrence of the Issue Date or the Vesting Date with respect to a share of
Restricted Stock or the grant of a Stock Bonus, in lieu of requiring the
remittance required by Section 14(a) hereof, to withhold a number of such
shares, the Fair Market Value of which at the exercise date the Committee
determines to be sufficient to satisfy the federal, state and local withholding
tax requirements, if any, attributable to such exercise, occurrence or grant and
is not greater than the Participant’s estimated total, federal, state and local
tax obligations associated with such exercise, occurrence or grant.

       

      
        	
                15.

              	
                Amendment
      or Termination of the Plan.

              

      

       

      The Board may at any time, or from time
to time, suspend or terminate the Plan in whole or in part, or amend it in such
respects as the Board may deem appropriate.  No amendment, suspension
or termination of the Plan shall, without the Participant’s consent, alter or
impair any of the rights or obligations under any Option theretofore granted to
a Participant under the Plan.  The Board may amend the Plan, subject
to the limitations cited above, in such manner as it deems necessary to permit
the granting of Incentive Awards meeting the requirements of future amendments
or issued regulations, if any, to the Code or to the Exchange
Act.  Notwithstanding the foregoing, the Board shall not take any
action which would cause any Incentive Award to become subject to taxation under
Section 409A of the Code.

       

      
        	
                16.

              	
                No
      Obligation to Exercise.

              

      

       

      The grant to a Participant of an Option
or a SAR shall impose no obligation upon such Participant to exercise such
Option or SAR.

       

      
        	
                17.

              	
                Transfers
      Upon Death.

              

      

       

      Upon the death of a Participant,
outstanding Incentive Awards granted to such Participant may be exercised only
by the executors or administrators of the Participant’s estate or by any Person
or Persons who shall have acquired such right to exercise by will or by the laws
of descent and distribution.  No transfer by will or the laws of
descent and distribution of any Incentive Award, or the right to exercise any
Incentive Award, shall be effective to bind the Company unless the Committee
shall have been furnished with (a) written notice thereof and with a copy of the
will and/or such evidence as the Committee may deem necessary to establish the
validity of the transfer and (b) an agreement by the transferee to comply with
all the terms and conditions of the Incentive Award that are or would have been
applicable to the Participant and to be bound by the acknowledgments made by the
Participant in connection with the grant of the Incentive
Award.  Except as provided in this Section 17, no Incentive Award
shall be transferable, and shall be exercisable only by a Participant during the
Participant’s lifetime.

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      
        	
                18.

              	
                Repurchase
      Rights.

              

      

       

      (a)           In
the event a Participant’s service with the Company terminates for any reason,
the Company shall have an irrevocable right (the “Repurchase Right”) for the
five (5) year period immediately following such termination (or in the case of
shares issued upon exercise of the Option after such date of termination, within
five (5) years immediately following the date of the exercise), or such longer
period as may be agreed to by the Company and the Participant, to repurchase, at
its option, from Participant or Participant’s personal representative, as the
case may be, (i) those shares underlying Incentive Awards issued hereunder (the
“Repurchase Underlying Shares”) and (ii) those shares that Participant received
in connection with or pursuant to the exercise of an Incentive Award (the
“Repurchase Shares”).

       

      (b)           The
Company may repurchase all or any of the Repurchase Shares at a price
(“Repurchase Price”) equal to:

       

      (i)           if
Participant’s employment is terminated for Cause, the lesser of (A) the exercise
price, if any, or (B) the Fair Market Value of such Repurchase Shares on the
date of the repurchase;

       

      (ii)          if
Participant’s employment is terminated on account of Participant’s death or
disability, the Fair Market Value of such Repurchase Shares on the date of the
repurchase; or

       

      (iii)         if
Participant’s employment is terminated for any reason other than for Cause or on
account of Participant’s death or disability, the Fair Market Value of such
Repurchase Shares on the date of the repurchase.

       

      (c)           The
Company may repurchase all or any of the Repurchase Underlying Shares at a
Repurchase Price equal to:

       

      (i)           if
Participant’s employment is terminated on account of Participant’s death or
disability, the Fair Market Value of such Repurchase Underlying Shares on the
date of the repurchase reduced by the aggregate exercise price payable for such
Repurchase Underlying Shares; or

       

      (ii)          if
Participant’s employment is terminated for any reason other than for Cause or on
account of Participant’s death or disability, the Fair Market Value of such
Repurchase Underlying Shares on the date of the repurchase reduced by the
aggregate exercise price payable for such Repurchase Underlying
Shares.

       

      (d)           The
Repurchase Right shall be exercised by written notice signed by an officer of
the Company and delivered or mailed to the Participant.  Such notice
shall identify the number of Repurchase Shares or Repurchase Underlying Shares
to be repurchased and shall notify Participant of the time, place and date for
closing of such repurchase, which shall be scheduled by the Company within ten
(10) days of the end of the term of the Repurchase Right set forth
above.  The Company shall be entitled to pay for any shares
repurchased pursuant to its Repurchase Right at the Company’s option in cash or
with a note from the Company to the Participant, or by a combination of
both.  Upon delivery of such notice and payment of the Repurchase
Price in any of the ways described above, the Company shall become the legal and
beneficial owner of the shares being repurchased and all rights and interest
therein or related thereto, and the Company shall have the right to transfer to
its own name the shares being repurchased by the Company, without further action
by the Participant.

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      (e)           In
the event of a conflict between the terms of this Section 18 and any agreement
between the Company and the Participant related in any way to the repurchase or
purchase of any shares of the Company Stock owned by Participant, including,
without limitation, a shareholder agreement, the terms of such other agreement
shall prevail and control over the terms of this Section 18.

       

      (f) 
          The Company’s
Repurchase Rights under this Section 18 shall terminate on the date the Company
becomes subject to the reporting requirements of the Exchange Act.

       

      
        	
                19.

              	
                Expenses
      and Receipts.

              

      

       

      The expenses of the Plan shall be paid
by the Company.  Any proceeds received by the Company in connection
with any Incentive Award will be used for general purposes.

       

      
        	
                20.

              	
                Failure
      to Comply.

              

      

       

      In addition to the remedies of the
Company elsewhere provided for herein, a failure by a Participant (or
beneficiary) to comply with any of the terms and conditions of the Plan or the
agreement executed by such Participant (or beneficiary) evidencing an Incentive
Award, unless such failure is remedied by such Participant (or beneficiary)
within ten days after having been notified of such failure by the Committee,
shall be grounds for the cancellation and forfeiture of such Incentive Award, in
whole or in part, as the Committee, in its absolute discretion may
determine.

       

      
        	
                21.

              	
                Adoption
      and Effective Date of Plan.

              

      

       

      The Plan was adopted by the Board of
Directors of the Company effective May 12, 2010.  The Plan was also
ratified and approved by the shareholders of the Company on May 12,
2010.

       

      
        	
                22.

              	
                Term
      of the Plan.

              

      

       

      The right to grant Incentive Awards
under the Plan will terminate upon the expiration of ten years from the date the
Plan was initially adopted.

       

      
        	
                23.

              	
                Applicable
      Law.

              

      

       

      Except to the extent preempted by an
applicable federal law, the Plan will be construed and administered in
accordance with the laws of the State of New York, without reference to the
principles of conflicts of law.

      
        
           

        

        
          20

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