Document:

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (“Agreement”) is made as of the 14th day of September 2012 by and between Lone
Star Gold, Inc., a Nevada corporation (the “Company”) and Fairhills Capital Offshore Ltd., a Cayman Islands
exempted company (the “Purchaser”).

 

Recitals

 

WHEREAS, the
Purchaser wishes to purchase from the Company, and the Company wishes to sell to the Purchaser, upon the terms and subject to the
conditions stated in this Agreement, the Shares (as defined below); and

 

WHEREAS, to
induce the Purchaser to consummate the transactions contemplated by the Agreement, the Company has agreed to provide certain registration
rights under the Securities Act (as defined below in the Agreement) and applicable state securities laws.

 

WHEREAS, the
Company filed a Registration Statement on Form S-1 with the Securities and Exchange Commission on July 13, 2012 which was withdrawn
on September 10, 2012 in response to SEC comments, which the Company intends to re-file (the “Registration Statement”).
Since such date, the Company has filed all periodic reports with the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934, as amended, including its Quarterly Report on Form 10-Q for the period ended June 30, 2012, and all such
reports were filed timely.

 

NOW, THEREFORE,
in consideration of the mutual promises contained herein and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties to this Agreement agree as follows:

 

Section 1.          Definitions.
For the purposes of this Agreement, the following terms shall have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is
controlled by, or is under common Control with, such Person.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction
of business.

 

“Closing”
has the meaning set forth in Section 3 hereof.

 

“Closing Date”
has the meaning set forth in Section 3 hereof.

 

“Commission”
means the Securities and Exchange Commission.

 

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“Common Stock”
means the common stock of the Company, par value $0.001 per share, and
any other class of securities into which such securities may hereafter be reclassified or changed.

 

“Company”
has the meaning set forth in the preamble.

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Effectiveness
Deadline” means (i) with respect to the Registration Statement, the earlier of the (A) 120th calendar day after the Filing
Deadline and (B) the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever
is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject to further review; provided,
that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Effectiveness
Deadline shall be extended to the next Business Day on which the SEC is open for business.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated
thereunder.

 

“Filing Deadline”
means with respect to the filing of the next amendment to the Registration Statement (or of a revised Registration Statement which
will replace the withdrawn Registration Statement) which will reflect the addition of these Shares(the “Amended Registration
Statement”) which shall take place no later than the 30th calendar day after the Closing Date, provided, however,
that if the Filing Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Filing Deadline shall
be extended to the next business day on which the SEC is open for business.

 

“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial
or otherwise), business, or prospects of the Company and its subsidiaries taken as a whole, (ii) the legality or enforceability
of any of the Transaction Documents or (iii) the ability of the Company to perform its obligations under the Transaction Documents.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“Purchaser”
and “Purchasers” have the meanings set forth in the preamble.

 

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“Registrable
Securities” means all of the Shares, provided, that the Purchaser has completed and delivered to the Company a Notice
of Registration Statement and Selling Securityholder Questionnaire attached hereto as Exhibit B and provided to the Company
any other information regarding the Purchaser and the distribution of the Registrable Securities as the Company may, from time
to time, reasonably require for inclusion in a Registration Statement pursuant to applicable law; and provided, further, that with
respect to a particular Purchaser, such Purchaser’s Shares shall cease to be Registrable Securities upon the earliest to
occur of the following: (A) a sale pursuant to a registration statement or Rule 144 under the Securities Act (in which case, only
such security sold by the Purchaser shall cease to be a Registrable Security); or (B) becoming eligible for resale by the Purchaser
under Rule 144 without the requirement for the Company to be in compliance with the current public information required thereunder
and without volume or manner-of-sale restrictions, pursuant to a written opinion letter to such effect, addressed, delivered and
acceptable to the Company’s transfer agent.

 

“Registration
Statement” means a registration statement or registration statements of the Company filed under the Securities Act covering
Registrable Securities, amendments and supplements to such Registration Statements, including post-effective amendments, all exhibits
and all material incorporated by reference or deemed to be incorporated by reference in such Registration Statements.

 

“Regulation
D” has the meaning set forth in Section 5(e) hereof.

 

“Regulation
S” has the meaning set forth in Section 5(e) hereof.

 

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

 

“SEC Reports”
means all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act
and the Exchange Act for the 12 months preceding the date hereof (or such shorter period as the Company was required by law or
regulation to file such material).

 

“Securities”
means the Shares and the Additional Shares (if any).

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated
thereunder.

 

“Transaction
Documents” means this Agreement, and all exhibits and schedules
thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated by this Agreement
or in accordance with the terms and conditions of any Transaction Document.

 

“U.S. Person”
has the meaning set forth in Section 5(e) hereof.

 

Section 2.          Purchase
and Sale of the Shares. Subject to the terms and conditions of this Agreement, on the applicable Closing Date (as defined below),
the Company shall issue and sell to Purchaser, and Purchaser shall purchase from the Company, 653,595 shares of Common Stock, $0.001
par value per share, of the Company at a per share purchase price of $0.10 (the “Shares”).

 

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Section 3.          Closing.
Upon the terms and subject to the conditions of this Agreement, the transactions contemplated by this Agreement shall take place
at a closing (each a “Closing”) to be held at the offices of Anslow & Jaclin LLP located at 195 Route 9
South, Manalapan, NJ 07726, at a time and date to be specified by the Parties, which shall be no later than the second (2nd) Business
Day following the satisfaction or, if permitted pursuant hereto, waiver of the conditions set forth in Section 7, or at
such other location, date and time as Purchasers and the Company shall mutually agree. The closing shall occur substantially concurrent
with the execution and delivery of this Agreement by the parties hereto, at which time 653,595 of the Shares shall be purchased
by the Purchaser (the “Closing Date”).

 

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

 

(a)          Organization,
Good Standing and Qualification. The Company has been duly organized and validly exists as a corporation in good standing under
the laws of the State of Nevada. The Company is duly qualified to do business and is in good standing as a foreign corporation
in each jurisdiction in which its ownership or lease of property or the conduct of its business require such qualification and
has all corporate power and authority necessary to own or hold its properties and to conduct the business in which it is engaged,
except where the failure to so qualify or have such power or authority would not have, singly or in the aggregate, or could not
reasonably be expected to have a Material Adverse Effect.

 

(b)          Authorization.
The Company has full corporate power and authority to enter into the Transaction Documents and has taken all requisite action on
the part of the Company, its officers, directors and stockholders necessary for (i) the authorization, execution and delivery of
the Transaction Documents, (ii) the authorization of the performance of all obligations of the Company hereunder or thereunder,
and (iii) the authorization, issuance (or reservation for issuance) and delivery of the Securities The Transaction Documents constitute
the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally and to general equitable principles.

 

(c)          Capitalization.
All of the issued and outstanding shares of the Company’s capital stock have been duly authorized and validly issued. No
Person is entitled to pre-emptive or similar statutory or contractual rights with respect to any securities of the Company. Other
than as described on Schedule 4(c), there are no outstanding warrants, options, convertible securities or other rights, agreements
or arrangements of any character under which the Company is or may be obligated to issue any equity securities of any kind and
except as contemplated by this Agreement. Other than as described on the Schedule 4(c), there are no voting agreements, buy-sell
agreements, option or right of first purchase agreements or other agreements of any kind among the Company and any of the security
holders of the Company relating to the securities of the Company held by them.

 

(d)          Valid
Issuance. The Securities have been duly and validly authorized and, when issued pursuant to the Transaction Documents, the
Securities will be validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions
(other than those created by the Purchasers), except for restrictions on transfer set forth in the Transaction Documents or imposed
by applicable securities laws.

 

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(e)          Consents.
The execution, delivery and performance by the Company of the Transaction Documents and the offer and issuance of the Securities
require no consent of, action by or in respect of, or filing with, any governmental body, agency, or official other than filings
that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable state and federal
securities laws which the Company undertakes to file within the applicable time periods.

 

(f)          No Conflict,
Breach, Violation or Default. The execution, delivery and performance of the Transaction Documents by the Company and the issuance
and sale of the Securities will not result in the creation or imposition of any lien, charge or encumbrance upon any of the assets
of the Company pursuant to the terms or provisions of, or result in a breach or violation of any of the terms or provisions of,
or conflict with or constitute a default under, or give any party a right to terminate any of its obligations under, or result
in the acceleration of any obligation under, (i) the certificate or articles of incorporation or by-laws of the Company, (ii) any
indenture, mortgage, deed of trust, voting trust agreement, loan agreement, bond, debenture, note agreement or other evidence of
indebtedness, lease, contract or other agreement or instrument to which the Company is a party or by which the Company or any of
its properties is bound or affected, or (iii) violate or conflict with any judgment, ruling, decree, order, statute, rule or regulation
of any court or other governmental agency or body applicable to the business or properties of the Company, except as to (ii) and
(iii) above for such breaches, violations or defaults which, individually or in the aggregate, would not reasonably be expected
to have a Material Adverse Effect.

 

Section 5.          
Representations and Warranties of the Purchasers. Each of the Purchasers hereby severally, and not jointly, represents and
warrants to the Company that:

 

(a)          Organization
and Existence. If such Purchaser is an entity, such Purchaser is a validly existing corporation, limited partnership or limited
liability company and has all requisite corporate, partnership or limited liability company power and authority to invest in the
Securities pursuant to this Agreement.

 

(b)          Authorization.
If such Purchaser is an entity, the execution, delivery and performance by such Purchaser of the Transaction Documents to which
such Purchaser is a party have been duly authorized and each will constitute the valid and legally binding obligation of such Purchaser,
enforceable against such Purchaser in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally.
If such Purchaser is a person, such Purchaser has reached the age of 21 and has full power and authority to execute and deliver
the Transaction Documents to which such Purchaser is a party and each will constitute the valid and legally binding obligation
of such Purchaser, enforceable against such Purchaser in accordance with their respective terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’
rights generally.

 

(c)          Purchase
Entirely for Own Account. The Securities to be received by such Purchaser hereunder will be acquired for such Purchaser’s
own account, not as nominee or agent, and such Purchaser is not a broker-dealer registered with the Commission under the Exchange
Act or an entity engaged in a business that would require it to be so registered. Nothing
contained herein shall be deemed a representation or warranty by such Purchaser to hold the Securities for any period of time.

 

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(d)          Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of such Purchaser.

 

(e)          Status
of Purchaser. Such Purchaser is (i) an “accredited investor” as defined in Rule 501 of Regulation D promulgated
by the Commission pursuant to the Securities Act (“Regulation D”) and meets the requirements of at least one
of the suitability standards for an accredited investor as set forth in Rule 501 of Regulation D or (ii) is not a “U.S person”
(a “U.S. Person”) as described in Rule 902 of Regulation S promulgated by the Commission pursuant to the Securities
Act (“Regulation S”). Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial, tax and other matters so as to be capable of evaluating the merits and
risks of, and to make an informed investment decision with respect to, the prospective investment in the Securities, which represents
a speculative investment, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic
risk of an investment in the Securities for an indefinite period and is able to afford a complete loss of such investment.

 

(f)          Acknowledgement
of Risk. Such Purchaser agrees, acknowledges and understands that its investment in the Securities involves a significant degree
of risk, including, without limitation that: (a) the Company is a development stage business with limited operating history and
may require substantial funds; (b) an investment in the Company is highly speculative and only Persons who can afford the loss
of their entire investment should consider investing in the Company and the Securities; (c) such Purchaser may not be able to liquidate
its investment; (d) transferability of the Securities is extremely limited; and (e) in the event of a disposition of the Securities,
such Purchaser can sustain the loss of its entire investment. Such Purchaser has considered carefully and understands the risks
associated with an investment in the Securities.

 

(g)          Restricted
Securities. Such Purchaser understands and agrees that the Securities have not been registered under the Securities Act or
any applicable state securities laws, by reason of their issuance in a transaction that does not require registration under the
Securities Act (based in part on the accuracy of the representations and warranties of such Purchaser contained herein), and that
such Securities must be held indefinitely unless a subsequent disposition is registered under the Securities Act or any applicable
state securities laws or is exempt from such registration. Such Purchaser acknowledges that such Purchaser is familiar with Rule
144 and that such person has been advised that Rule 144 permits resales only under certain circumstances. Such Purchaser understands
that to the extent that Rule 144 is not available, such Purchaser will be unable to sell any Securities without either registration
under the Securities Act or the existence of another exemption from such registration requirement.

 

(h)          Reliance
on Representations. Such Purchaser agrees, acknowledges and understands that the Company and its counsel are entitled to rely
on the representations, warranties and covenants made by such Purchaser herein. Such Purchaser further represents and warrants
that (i) this Agreement does not contain any untrue statement or a material fact or omit any material fact concerning such Purchaser
and (ii) that the Investor Questionnaire accompanying this Agreement in the form attached hereto as Exhibit A does not contain
any untrue statement or a material fact or omit any material fact concerning such Purchaser; provided, however, that clause (ii)
shall not apply to any Purchaser that is not a U.S. Person.

 

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(i)          Additional
Representations and Warranties of non-U.S. Persons. If a Purchaser indicates that such Purchaser is a not a U.S. Person on
the signature page to this Agreement, then such Purchaser further makes the following representations and warranties to the Company:

 

(i)          Such
Purchaser understands that no action has been or will be taken in any jurisdiction by the Company that would permit a public offering
of the Securities in any country or jurisdiction where action for that purpose is required.

 

(ii)          Such
Purchaser (i) as of the execution date of this Agreement is not located within the United States, and (ii) is not purchasing the
Securities for the account or benefit of any U.S. Person except in accordance with one or more available exemptions from the registration
requirements of the Securities Act or in a transaction not subject thereto.

 

(iii)          Such
Purchaser will not resell the Securities except in accordance with the provisions of Regulation S, pursuant to a registration under
the Securities Act, or pursuant to an available exemption from registration.

 

(iv)          Such
Purchaser will not engage in hedging transactions with regard to the Company’s securities prior to the expiration of the
distribution compliance period specified in Category 2 or 3 (paragraph (b)(2) or (b)(3)) in Rule 903 of Regulation S, as applicable,
unless in compliance with the Securities Act; and as applicable, shall include statements to the effect that the Securities have
not been registered under the Securities Act and may not be offered or sold in the United States or to U.S. Persons (other than
distributors) unless the Securities are registered under the Securities Act, or an exemption from the registration requirements
of the Securities Act is available.

 

(v)          No form
of “directed selling efforts” (as defined in Rule 902 of Regulation S), general solicitation or general advertising
in violation of the Securities Act has been or will be used nor will any offers by means of any directed selling efforts in the
United States be made by such Purchaser or any of its representatives in connection with the offer and sale of the Securities.

 

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Section 6.          (a)          Registration
Rights. The Company shall use commercially reasonable efforts to prepare and, as soon as practicable, but in no event later
than the Filing Deadline, file with the SEC the Amended Registration Statement on such applicable form covering the resale of all
of the Registrable Securities.  The Company shall use its best efforts to have such Registration Statement declared effective
by the SEC as soon as practicable, but in no event later than the applicable Effectiveness Deadline for such Registration
Statement. If a Registration Statement covering the Registrable Securities is not filed with the SEC on or prior to the Filing
Deadline and this is due to the Company’s not making a good faith effort to make such filing, the Company will make pro rata
payments to the Purchaser, as liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount invested
by such Purchaser for each 30-day period or pro rata for any portion thereof following the Filing Deadline for which no Registration
Statement is filed with respect to the Registrable Securities; provided, however, such damages shall cease to accrue on the 180th
day following the Closing Date. Such payments shall constitute the Purchasers’ exclusive monetary remedy for such events,
but shall not affect the right of the Purchaser to seek injunctive relief. Such payments shall be made to the Purchaser in cash
no later than two (2) Business Days after the first day of each 30-day period (in other words, the Company will pay to the Purchaser,
in advance, the full amount of damages due and owing for such 30-day period).

 

(b)          Effectiveness.          The
Company shall use commercially reasonable efforts to have the Registration Statement declared effective as soon as practicable.
The Company shall notify the Purchaser by facsimile or e-mail as promptly as practicable, and in any event, within twenty-four
(24) hours, after any Registration Statement is declared effective (the date of such first Registration Statement being declared
effective, the “Effective Date”) and shall simultaneously provide the Purchaser with copies of any related Prospectus
to be used in connection with the sale or other disposition of the securities covered thereby. If (A) a Registration Statement
covering the Registrable Securities is not declared effective by the SEC prior to Effectiveness Deadline due to the Company not
exhibiting reasonable efforts to meet such Effectiveness Deadline, or (B) after a Registration
Statement has been declared effective by the SEC, sales cannot be made pursuant to such Registration Statement for any reason (including
without limitation by reason of a stop order, or the Company’s failure to update the Registration Statement), or the inability
of the Purchaser to sell the Registrable Securities covered thereby due to market conditions, then the Company will make
pro rata payments to the Purchaser, as liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount
invested by the Purchaser for each 30- day period or pro rata for any portion thereof following the date by which such Registration
Statement should have been effective (the “Blackout Period”); provided, however, such damages shall cease to accrue
pursuant to clause (A) above on the 180th day following the Closing Date. Such payments shall constitute the Purchasers’
exclusive monetary remedy for such events, but shall not affect the right of the Purchaser to seek injunctive relief. The amounts
payable as liquidated damages pursuant to this paragraph shall be paid monthly within two (2) Business Days after the first day
of each 30-day period (in other words, the Company will pay to the Purchaser, in advance, the full amount of damages due and owing
for each such 30-day Blackout Period) until the termination of the Blackout Period. Such payments shall be made to the Purchaser
in cash.

 

Section 7.          Closing
Conditions.

 

(a)          The obligation
of the Company to consummate the transactions to be performed by it in connection with the Closing is subject to the following
conditions being met:

 

(i)          the accuracy
in all material respects on the Closing Date of the representations and warranties of each Purchaser contained herein (unless as
of a specific date therein);

 

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

 

(iii)          the
delivery by each Purchaser of this Agreement, duly executed by each such Purchaser;

 

(iv)          the
delivery by each Purchaser, other than Purchasers that are not U.S. Persons, of a completed Investor Questionnaire in the form
attached hereto as Exhibit A, duly executed by each such Purchaser; and

 

(b)          The respective
obligations of the Purchasers to consummate the transactions to be performed by each of them in connection with the Closing are
subject to the following conditions being met:

 

(i)          the accuracy
in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein);

 

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

 

(iii)          the
delivery by the Company of this Agreement duly executed by the Company.

 

Section 8.          Price
Protection For Shares. At the earlier of (a) the Effective Date; or (b) such time as the Shares can be sold pursuant to Rule
144 (the “Triggering Date”), the Shares shall be valued based on a 24.5% percent discount to the price
of the common stock on the Triggering Date (the “Shares Value”). In the event the Shares Value is less
than $50,000, the Company shall issue additional shares of registered Common Stock, $0.001 par value per share of the Company,
to the Purchaser (the “Additional Shares”) such that the total value of the Shares and the Additional
Shares issued to the Purchaser by the Company, based on the Shares Value, shall total $50,000. The Purchaser shall be deemed to
have recertified the representations set forth in Section 5 upon the issuance of such Additional Shares.

 

Section 9.          Miscellaneous.

 

(a)          Restrictive
Legend. The Securities shall bear the following or similar legend:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE 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.”

 

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(b)          Survival
and Indemnification.

 

(i)          Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions
contemplated by this Agreement.

 

(ii)          Indemnification
by the Company. Except as otherwise provided in Section 6 above (for which exclusive remedies have been established), the Company
agrees to indemnify and hold harmless the Purchaser and its respective successors and assigns, harmless, from and against any and
all losses, claims, damages, liabilities and expenses (including without limitation reasonable attorney fees and disbursements
and other expenses incurred in connection with investigating, preparing or defending any action, claim or proceeding, pending or
threatened and the costs of enforcement thereof to) which the Purchaser may become subject as a result of any breach of representation,
warranty, covenant or agreement made by or to be performed on the part of the Company under this Agreement and will reimburse the
Purchaser for all such amounts as they are incurred by the Purchaser.

 

(iii)          Indemnification
by the Purchaser. The Purchaser, agrees to indemnify and hold harmless the Company and its Affiliates and their respective
directors, officers, employees and agents, and their respective successors and assigns, from and against any and all losses, claims,
damages, liabilities and expenses (including without limitation reasonable attorney fees and disbursements and other expenses incurred
in connection with investigating, preparing or defending any action, claim or proceeding, pending or threatened and the costs of
enforcement thereof to) which such Person may become subject as a result of any breach of representation, warranty, covenant or
agreement made by or to be performed on the part of such Purchaser under the Transaction Documents and will reimburse any such
Person for all such amounts as they are incurred by such Person.

 

(c)          Successors
and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company or the Purchasers,
as applicable, provided, however, that a Purchaser may assign its rights and delegate its duties hereunder in whole or in
part to an Affiliate or to a third party acquiring some or all of its Securities in a transaction complying with applicable securities
laws without the prior written consent of the Company or the other Purchasers. The provisions of this Agreement shall inure to
the benefit of and be binding upon the respective permitted successors and assigns of the parties.

 

(d)          Counterparts.
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 e-mail delivery of a “.pdf” format data file, 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 “.pdf”
signature page were an original thereof.

 

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(e)          Construction;
Headings. This Agreement shall be deemed to be jointly drafted by the Company and the Purchasers and shall not be construed
against any person as the drafter hereof. The headings of this Agreement are for convenience of reference and shall not form part
of, or affect the interpretation of, this Agreement.

 

(f)          Notices.
Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed
effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed given upon such
delivery, (ii) if given by telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete
transmittal, (iii) if given by mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the
recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an internationally
recognized overnight air courier, then such notice shall be deemed given one Business Day after delivery to such carrier. All notices
shall be addressed to the party to be notified at the address as follows, or at such other address as such party may designate
by ten days’ advance written notice to the other party:

 

If to the Company:

 

Lone Star Gold,
Inc.

6565 Americas
Parkway NE, Suite 200

Albuquerque, NM
87110

Attention: Daniel
M. Ferris

 

With a copy to:

 

Hallett & Perrin, P.C.

1445 Ross Ave, Suite 2400

Dallas, Texas 75202

Attention: Lance M. Hardenburg

 

If to the Purchaser:

 

Fairhills Capital Offshore Ltd.

245 Main Street,
Suite 302 

White Plains, NY 10601

 

With a copy to:

 

Anslow & Jaclin, LLP

195 Route 9 South, Suite 204

Manalapan, New Jersey 07726

Attention: Gregg E. Jaclin, Esq.

 

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(g)          Expenses.
The parties hereto shall pay their own costs and expenses in connection herewith. In the event that legal proceedings are commenced
by any party to this Agreement against another party to this Agreement in connection with this Agreement or the other Transaction
Documents, the party or parties which do not prevail in such proceedings shall severally, but not jointly, pay their pro rata share
of the reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by the prevailing party
in such proceedings.

 

(h)          Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the holders of a majority of the then-outstanding aggregate Shares (the “Required Purchasers”).

 

(i)          Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted
as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable
in any respect.

 

(j)          Entire
Agreement. This Agreement, including the Exhibits hereto, and the other Transaction Documents constitute the entire agreement
among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
both oral and written, between the parties with respect to the subject matter hereof and thereof.

 

(k)          Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements
herein contained.

 

(l)          Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York for the purpose of any suit, action, proceeding or
judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process in connection
with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified
for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such
court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES
HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL
HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

[Signatures follow on next page]

 

    	12

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed on the date first written above.

 

	 	COMPANY:
	 	 
	 	LONE STAR GOLD, INC.
	 	 
	 	By:	/s/ Daniel M. Ferris
	 	Name:	Daniel M. Ferris
	 	Title:	President

 

	 	PURCHASER:
	 	 
	 	Fairhills Capital Offshore Ltd.
	 	 
	 	By:	Edward Bronson
	 	Name:	Edward Bronson
	 	Title:	Senior Managing Member
	 	 
	 	Address for Notice:
	 	 
	 	245 Main Street, Suite 302
	 	White Plains, NY 10601

 

    	 

    	 

    

 

Schedule 4(c)

 

Anti-Dilution Rights

 

		(a)	On January 11, 2011, the Company entered into an Option Agreement with Homero Bustillos Gonzales
that granted him anti-dilution rights, which entitles him the opportunity to maintain his percentage stock ownership in the Company
until the date on which the Company has complied fully with its obligations under the Option Agreement or January 11, 2014, whichever
comes first.

 

Warrants

 

		(b)	On June 30, 2011, the Company entered into an agreement to issue 100,000 Units to North American
Gold Corp. in a private placement, for $1.00 per Unit, with each Unit consisting of one share of Common Stock and one Warrant to
purchase a share of Common Stock at $1.20 at any time until June 30, 2014, for cash proceeds of $100,000. The fair market value
of the Warrants on the date of issuance was $15,467, which was calculated using the Black-Scholes option pricing model.  Variables
used in the valuation include (1) discount rate of 1.9%, (2) expected life of 3 years, (3) expected volatility of 386% and (4)
zero expected dividends.

 

		(c)	On August 29, 2011, the Company entered into an agreement to issue 100,000 Units to North American
in a private placement, with each Unit consisting of one share of the Company’s $0.001 par value common stock and one warrant
to purchase a share of the Company’s $0.001 par value common stock at $1.20 at any time until August 29, 2014, for cash proceeds
of $100,000. The relative fair market value of the warrants on the date of issuance was $44,000, which was calculated using the
Black-Scholes option pricing model.  Variables used in the valuation include (1) discount rate of 0.49%, (2) expected
life of 3 years, (3) expected volatility of 536% and (4) zero expected dividends.

 

Common Stock Rights

 

		(d)	On January 26, 2012, the Company entered into a joint venture agreement with Miguel Jaramillo Tapia,
which contains a commitment to issue 600,000 shares of common stock to Jaramillo. 300,000 shares of common stock have been issued
as of the date hereof and the remaining 300,000 shares shall be issued within 12 months of signing the JV Agreement which is December
26, 2012.

 

		(e)	Under the terms of the employment agreement between the Company and Mr. Ferris dated July 12, 2011,
Mr. Ferris will be entitled to receive 3,000,000 shares of common stock, which will vest in three equal increments over the first
3 years of the term. Mr. Ferris received 1,000,000 shares of common stock on July 11, 2012, and will receive 1,000,000 shares of
common stock on July 12, 2013 and 2014. If Mr. Ferris’ employment is terminated for “cause”, or if he voluntarily
resigns, then he would not be entitled to receive any shares of Common Stock that have not vested as of the date of resignation
or termination. If Mr. Ferris’ employment is terminated for any other reason, he would receive the full 3,000,000 shares
of Common Stock.

 

    	 

    	 

    

 

 

EXHIBIT A

 

INVESTOR QUESTIONNAIRE

 

See attached.

 

    	 

    	 

    

 

EXHIBIT B

 

NOTICE OF REGISTRATION
STATEMENT AND

 

SELLING SECURITY HOLDER
QUESTIONNAIRE

 

Reference is hereby
made to Section 6 of this Securitites Purchase Agreement between Lone Star Gold, Inc. (the “Company”) and Fairhills
Capital Offshore Ltd. Pursuant to Section 6 of the Agreement, the Company proposes to file with the United States Securities and
Exchange Commission (the “SEC”) a registration statement (the “Registration Statement”) for
the registration and resale under Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”),
of the Registrable Securities (as defined in the Securities Purchase Agreement). All capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Agreement.

 

Pursuant to Section
6 of the Agreement, each beneficial owner of Registrable Securities is entitled to have the Registrable Securities beneficially
owned by it included in the Registration Statement. In order to have Registrable Securities included in the Registration Statement,
this Notice of Registration Statement and Selling Securityholder Questionnaire (“Notice and Questionnaire”)
must be completed, executed and delivered to the Company’s counsel at the address set forth herein for receipt ON OR BEFORE
[DEADLINE FOR RESPONSE]. Beneficial owners of Registrable Securities who do not complete, execute and return this Notice
and Questionnaire by such date (i) will not be named as selling securityholders in the Registration Statement and (ii) may not
use the prospectus forming a part thereof for resales of Registrable Securities.

 

Certain legal consequences
arise from being named as a selling securityholder in the Registration Statement and related prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling securityholder in the Registration Statement and related prospectus.

 

PLEASE FAX A COPY
(OR EMAIL A .PDF COPY) OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

[________________]

Attention: _______________

Telephone _______________

Fax _________________

Email: _______________

 

    	 

    	 

    

 

ELECTION

 

The undersigned holder
(the “Selling Securityholder”) of Registrable Securities hereby elects to include in the Registration Statement
the Registrable Securities beneficially owned by it and listed below in Item 3. The Selling Securityholder, by signing and returning
this Notice and Questionnaire, agrees to be bound with respect to such Registrable Securities by the terms and conditions of this
Notice and Questionnaire as if the undersigned Selling Securityholder were an original party thereto.

 

The Selling Securityholder
hereby provides the following information to the Company and represents and warrants that such information is accurate and complete:

 

1.           Name.

 

(a)          Full legal name
of Selling Securityholder:

	
          

 

(b)          Full legal name
of registered holder (if not the same as (a) above) of the Registrable Securities:

	
        

         

 

(c)          Full legal name
of DTC participant (if applicable and if not the same as (b) above) through which Registrable Securities are held:

	
        

         

 

    	 

    	 

    

 

2.           Address for
Notices to Selling Securityholder:

 

	
        

         

	
        

         

	
        

         

	Telephone:	
        

         

	Fax:	
          

	Contact Person:	
        

         

 

3.           Beneficial
Ownership of the Registrable Securities beneficially owned by the Selling Securityholder.

 

Except
as set forth below in this Item (3), the Selling Securityholder does not beneficially own any Securities.

 

		(a)	Number or principal amount of Registrable Securities beneficially owned:
	 	 	 

	Shares	 	Series A
 Warrant Shares	 	Series B
 Warrant Shares
	
        
	 	
        

         
	 	
        

         

 

 

(b)          If different
than the number or principal amount of Registrable Securities set forth in Item 3(a), number or principal of amount of Registrable
Securities which the Selling Securityholder wishes to be included in the Registration Statement:

 

	Shares	 	
        Series A

        Warrant Shares
	 	Series B
 Warrant Shares
	
         

        
	 	
         

        
	 	
         

        

 

    	 

    	 

    

 

4.          Beneficial
Ownership of other Securities of the Company beneficially owned by the Selling Securityholder.

 

Except as set forth below
in this Item 4, the Selling Securityholder is not the beneficial or registered owner of any securities of the Company other than
the Registrable Securities.

 

(a)          Type and Amount
of other securities beneficially owned by the Selling Securityholder (do not list the Registrable Securities you listed in Item
3:

	
         

        

	
          

 

5.          Relationships
with the Company:

 

Except as set forth below,
neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the
equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company
(or its predecessors or affiliates) during the past three years.

 

State any exceptions
here:

	
         

        

	
        

         

 

6.          Broker-Dealer
Status:

 

(a)          Are you a broker-dealer?

 

Yes           ̈          No           ̈

 

(b)          If “yes”
to Item 6(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?

 

Yes           ̈          No           ̈

 

Note: If “no”
to Item 6(b), the SEC may require the Company to identify you as an underwriter in the Registration Statement.

 

    	 

    	 

    

 

(c)          Are you an affiliate
of a broker-dealer?

 

Yes           ̈          No           ̈

 

(d) If “yes”
to Item (6)(c), identify the registered broker-dealer(s) and describe the nature of the affiliation(s):

	
         

        

	
         

        

 

(e)          If you are an
affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course of business,
and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or
indirectly, with any person to distribute the Registrable Securities?

 

Yes           ̈          No           ̈

 

Note: If “no”
to Item 6(e), the SEC may require the Company to identify you as an underwriter in the Registration Statement.

 

7.          Voting or
Investment Control over the Registrable Securities:

 

(a)          If the Selling
Securityholder is not a natural person (e.g., if the holder is an entity such as a trust, corporation, partnership, limited liability
company, etc.), please identify the natural person or persons who have voting or investment control over the Registrable Securities
listed in Item 3 above and the relationship to the Selling Securityholder (use additional sheets if necessary):

	
        

         

	
        

         

 

(b)          Please indicate
whether any of the Registrable Securities to be sold are subject to a voting trust, and if so, please provide a copy of the voting
trust agreement along with this Notice and Questionnaire:

	
          

	
        

         

 

    	 

    	 

    

 

The undersigned hereby
further:

 

(i)          confirms to
the Company the accuracy of the information concerning the undersigned contained in this Notice and Questionnaire furnished by
the Selling Securityholder to the Company for purposes of the Registration Statement and the prospectus (preliminary or final)
contained therein or in any amendment or supplement thereto or any documents incorporated by reference therein;

 

(ii)          agrees with
the Company to immediately notify the Company and promptly (but in any event within two (2) Business Days thereafter) to confirm
the same in writing if there should be any change affecting the accuracy of the above-mentioned information, or if the information
regarding the Selling Securityholder’s holdings set forth in any version of the Registration Statement or any portion thereof
delivered to the undersigned (including by electronic mail) or reviewed by the undersigned, should be inaccurate; and

 

(iii)          agrees with
the Company that for purposes of the Subscription Agreement and Registration Statement, the statements contained herein constitute
written information furnished by the Selling Securityholder to the Company for use in the Registration Statement, or any amendment
or supplement thereto.

 

By signing below, the
Selling Securityholder acknowledges that it understands its obligation to comply, and agrees that it will comply, with the provisions
of the Exchange Act and the rules and regulations thereunder, particularly Regulation M.

 

By signing below, the
Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items 1 through 7 and the
inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto.
The Selling Securityholder understands that such information will be relied upon by the Company in connection with the preparation
or amendment of the Registration Statement and the related prospectus and any amendments or supplements thereto.

 

Once this Notice and
Questionnaire is executed by the Selling Securityholder and received by the Company’s counsel, the terms of this Notice and
Questionnaire, and the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and
shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Company and the Selling
Securityholder (with respect to the Registrable Securities beneficially owned by such Selling Securityholder and listed in Item
3 above.

 

[Signatures Follow
on Next Page]

 

    	 

    	 

    

 

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person
or by its duly authorized agent.

	Date:	 	 	 
	 	 	 	Selling Securityholder
	 	 	 	(Print/type full legal name of beneficial owner of Registrable Securities)
	 	 	 	 
	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:	 
	 	 	 	 	Title:Exhibit 10.1

 

SIXTH AMENDMENT
TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

 

THIS SIXTH AMENDMENT
TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter called this “Amendment”) is dated as of
October 11, 2012, by and among BREITBURN OPERATING L.P., a Delaware limited partnership (the “Company”),
BREITBURN ENERGY PARTNERS L.P., as Parent Guarantor (“Parent”), BreitBurn GP, LLC (the “Parent
GP”), BreitBurn Operating GP, LLC (the “General Partner”), the Subsidiaries of the Parent
and/or the Company, as guarantors (the “Subsidiary Guarantors”, and together with the Parent,
the Parent GP, and the General Partner, the “Guarantors”), the Lenders (defined below), and WELLS FARGO
BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity
“Administrative Agent”). Capitalized terms used in this Amendment, and not otherwise defined in this
Amendment, have the meanings assigned thereto in the Credit Agreement defined below.

 

WITNESSETH:

 

WHEREAS, the Company,
the Guarantors, Administrative Agent, Issuing Lender and the lenders from time to time party thereto (the “Lenders”)
are parties to that certain Second Amended and Restated Credit Agreement dated as of May 7, 2010, as amended by that certain First
Amendment to Second Amended and Restated Credit Agreement and Consent and First Amendment to Security Agreement dated as of September
17, 2010, that certain Second Amendment to Second Amended and Restated Credit Agreement dated as of May 9, 2011, that certain Third
Amendment to Second Amended and Restated Credit Agreement dated as of August 3, 2011, that certain Fourth Amendment to Second Amended
and Restated Credit Agreement dated as of October 5, 2011 and that certain Fifth Amendment to Second Amended and Restated Credit
Agreement dated as of May 25, 2012 (as further amended, modified or restated from time to time, the “Credit Agreement”),
whereby upon the terms and conditions therein stated the Lenders have agreed to make certain loans to the Company upon the terms
and conditions set forth therein; and

 

WHEREAS, the Company
has requested that the Lenders amend the Credit Agreement as set forth below; and

 

WHEREAS, subject to
the terms hereof, the undersigned Lenders are willing to agree to the amendments to the Credit Agreement as set forth herein.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants and agreements herein contained, the parties to this Amendment hereby agree as follows:

 

SECTION 1.          Amendments
to Credit Agreement. Effective as of the Amendment Effective Date, the Credit Agreement is hereby amended as follows:

 

(a)          The
following definition is hereby added to Section 1.01 of the Credit Agreement in proper alphabetical order:

 

““Elected
Commitment Amount” means the aggregate Commitments of all Lenders, as set forth on Schedule 2.01,
as such Commitments may be increased or reallocated from time to time pursuant to the terms hereof.”

                       
 

    	 	 	Sixth Amendment

    	 

    

                       
 

(b)          The
definition of “Available Borrowing Base” in Section 1.01 of the Credit Agreement is hereby amended
by inserting the phrase “(i) the lesser of (x) the Elected Commitment Amount and (y)” immediately following “time
in question,” and inserting “(ii)” immediately following “minus”.

                       
 

(c)          The
definition of “Commitment” in Section 1.01 of the Credit Agreement is hereby amended by inserting
the phrase “the Elected Commitment Amount, as such commitment may be increased from time to time in accordance with the
provisions hereof or (c)” immediately following “(a) the then-effective Borrowing Base, (b) ”.

                       
 

(d)          The
definition of “Pro Rata Share” in Section 1.01 of the Credit Agreement is hereby amended by inserting
the phrase “Section 2.04(b) and” immediately following the phrase “subject to adjustment as provided
in”.

                       
 

(e)          Subsection
2.01(a) of the Credit Agreement is hereby amended by replacing the reference therein to “Borrowing Base” with
“the lesser of the Borrowing Base and the Elected Commitment Amount”.

                       
 

(f)          Section
2.04 of the Credit Agreement is hereby amended by moving Subsection 2.04(b) thereof to a new subsection
at Subsection 2.04(c) and inserting the following as Subsection 2.04(b):

 

“(b)        Request
for Increase.

 

(i)          Provided
no Default has occurred and is continuing, upon notice to the Administrative Agent (which shall promptly notify the Lenders), the
Company may from time to time deliver a request for an increase in the Elected Commitment Amount; provided that (a) any
such request for an increase shall be in a minimum amount of $5,000,000, (b) the Company may make a maximum of two (2) such requests
between Scheduled Borrowing Base Determinations and (c) after giving effect to such request the Elected Commitment Amount does
not exceed the lesser of (A) the Aggregate Maximum Credit Amount, as such amount may be reduced pursuant to Section 2.04(a)
and (B) the Borrowing Base then in effect. The request from the Company shall include the amount of the requested increase, the
effective date for the increase and certify that, before and after giving effect to such increase, the representations and warranties
contained in Article 6 and the other Loan Documents are true and correct as of the date of such request.

 

(ii)         The
Administrative Agent shall notify each of the Lenders of the Company’s request and determine whether each such Lender agrees
to increase its Commitment (which agreement may be given or withheld at such Lender’s sole and absolute discretion) and,
if so, whether by an amount equal to, greater than, or less than its Pro Rata Share of such requested increase. Any Lender not
responding within such time period shall be deemed to have declined to increase its Commitment.

 

(iii)        The
Administrative Agent shall notify the Company and each Lender of the Lenders’ responses to each request made under this Section
2.04(b). To achieve the full amount of a requested increase and subject to the approval of the Swing Line Lender and each
Issuing Lender (which approvals shall not be unreasonably withheld), the Administrative Agent, in consultation and with the consent
of the Company, may also invite additional Persons who qualify as Eligible Assignees to become Lenders pursuant to an Assignment
and Assumption (and in accordance with Section 11.06(b)(iv) hereof), together with the reallocation provisions of
Section 2.04(b)(iv). It shall not be a condition to obtaining an increase in the Elected Commitment Amount that the
full amount of such increase requested by the Company be approved by the Lenders or any additional Eligible Assignees. If less
than the full amount of the increase requested by the Company is approved by the Lenders and Eligible Assignees, if any, the Company
may, at its option, accept the amount of the increase so approved, or the Company may withdraw its request for such increase, in
which case the Company shall be deemed not to have made a request for such increase.

 

    	 	-2-	Sixth Amendment

    	 

    

 

(iv)        If
the Elected Commitment Amount is increased in accordance with this Section 2.04(b), the Administrative Agent and
the Company shall determine the effective date (the “Increase Effective Date”) and the allocation of
the final Pro Rata Shares, after giving effect to such increase. The Administrative Agent shall promptly notify the Company and
the Lenders of (i) the final amount and allocation of the Pro Rata Shares after giving effect to such increase and the Increase
Effective Date and (ii) the amount of Loans of each Interest Rate Type and the applicable Interest Period thereof. On the Increase
Effective Date, all outstanding Loans and Commitments shall be reallocated among the Lenders (including any newly added Lenders)
in accordance with the Lenders’ respectively revised Pro Rata Shares, after giving effect to such increase in the Elected
Commitment Amount and the Lenders shall make purchases and adjustments among themselves with respect to the Loans and Commitments
then outstanding and amounts of principal, interest, fees and other amounts paid or payable with respect thereto as shall be necessary,
in the opinion of the Administrative Agent, in order to effect such reallocation of the Pro Rata Shares and the Elected Commitment
Amount. In connection with such reallocation among the Lenders, on the Increase Effective Date, the Loan Parties shall promptly
reimburse the Lenders for losses and expenses incurred in respect of LIBOR Loans in accordance with Section 3.04.
Upon the Increase Effective Date, after giving effect to the allocation of such increase, Schedule 2.01 shall be
deemed amended and restated to reflect the Elected Commitment Amount and Pro Rata Shares then in effect.”

                       
 

(g)          Subsection
2.05(a) of the Credit Agreement is hereby amended by inserting the phrase “, the Elected Commitment Amount”
immediately following “in relation to the Aggregate Maximum Credit Amount” in the last sentence thereof.

                       
 

(h)          Subsection
2.05(c) of the Credit Agreement is hereby amended by replacing the reference therein to “total Commitments”
with “Elected Commitment Amount”.

                       
 

(i)          Subsection
2.06(c)(ii) of the Credit Agreement is hereby amended by replacing the reference therein to “Section
2.04(b)” with “Section 2.04(c)”.

                       
 

(j)          Subsection
2.07(a) of the Credit Agreement is hereby amended by inserting the phrase “total Commitments exceed” instead
of the phrase “Commitment exceeds” immediately following “the actual daily amount by which the”.

                       
 

(k)          Subsection
2.13(a) of the Credit Agreement is hereby amended by replacing the reference to “Section 2.04(b)(iii)”
therein with “Section 2.04(c)(iii)”.

                       
 

(l)          Section
3.04 of the Credit Agreement is hereby amended by deleting the word “or” immediately preceding “(e)”
and inserting the phrase “the reallocation of any LIBOR Loan pursuant to Section 2.04(b); or (f)” immediately
following “last day of the relevant interest period; (e)”.

                       
 

(m)          Schedule
2.01 to the Credit Agreement is hereby replaced with Schedule 2.01 attached hereto.

 

    	 	-3-	Sixth Amendment

    	 

    

 

SECTION 2.          Guarantor
Confirmation.

 

(a)          The
Guarantors hereby consent and agree to this Amendment and each of the transactions contemplated hereby.

 

(b)          The
Company and each of the Guarantors ratifies and confirms the debts, duties, obligations, liabilities, rights, titles, pledges,
grants of security interests, liens, powers, and privileges existing by virtue of the Loan Documents to which it is a party.

 

(c)          The
Company and each of the Guarantors agrees that the guarantees, pledges, grants of security interests and other obligations, and
the terms of each of the Security Agreements and Guaranties to which it is a party, are not impaired, released, diminished or reduced
in any manner whatsoever and shall continue to be in full force and effect and shall continue to secure all Obligations.

 

(d)          The
Company and each of the Guarantors acknowledges and agrees that all terms, provisions, and conditions of the Loan Documents to
which it is a party (as amended by this Amendment) shall continue in full force and effect and shall remain enforceable and binding
in accordance with their respective terms.

 

SECTION 3.          Borrowing
Base Determination. Upon the effectiveness of this Amendment, in accordance with Section 2.05 of the Credit
Agreement, the Administrative Agent and the Lenders agree that the Borrowing Base on the Amendment Effective Date shall be $1,000,000,000.

 

SECTION 4.          Conditions
of Effectiveness. This Agreement and the amendments hereunder shall become effective as of the date first set forth above
(the “Amendment Effective Date”), provided that the following conditions shall have been satisfied:

 

(a)          Amendment.
The Administrative Agent shall have received a counterpart of this Amendment which shall have been executed by the Administrative
Agent, each of the Lenders, the Company, and the Guarantors (which may be by telecopy or PDF transmission).

 

(b)          No
Default; Representations and Warranties; No Material Adverse Effect. As of the Amendment Effective Date:

 

(i) the representations
and warranties of the Company and the Guarantors in Article VI of the Credit Agreement and in the other Loan Documents as
amended hereby shall be true and correct in all material respects (except to the extent such representations and warranties expressly
refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that the representations
and warranties contained in Sections (a) and (b) of Section 6.14 of the Credit Agreement shall be deemed to
refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01
of the Credit Agreement);

 

(ii) no Default
or Event of Default shall exist; and

 

(iii) since
December 31, 2011, there shall have been no event, development or circumstance that has had or could reasonably be expected to
have a Material Adverse Effect.

 

(c)          Payment
of Fees. Evidence of payment by the Company of all accrued and unpaid fees, costs and expenses owed pursuant to this Amendment
to the extent then due and payable on the Amendment Effective Date.

 

    	 	-4-	Sixth Amendment

    	 

    

 

(d)          Additional
Documents. Such other documents, in form and substance satisfactory to Administrative Agent, as the Administrative Agent may
reasonably request.

 

SECTION 5.          Representations
and Warranties. Each of the Company and the Parent represents and warrants to Administrative Agent and the Lenders, with
full knowledge that such Persons are relying on the following representations and warranties in executing this Amendment, as follows:

 

(a)          It
has the organizational power and authority to execute, deliver and perform this Amendment, and all organizational action on the
part of it requisite for the due execution, delivery and performance of this Amendment has been duly and effectively taken.

 

(b)          The
Credit Agreement, as amended by this Amendment, the Loan Documents and each and every other document executed and delivered to
the Administrative Agent and the Lenders in connection with this Amendment to which it is a party constitute the legal, valid and
binding obligations of it, to the extent it is a party thereto, enforceable against such Person in accordance with their respective
terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to enforceability.

 

(c)          This
Amendment does not and will not violate any provisions of any of the Organization Documents of the Company.

 

(d)          No approval,
consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or
required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Amendment.

 

(e)          After
giving effect to this Amendment, no Default or Event of Default will exist, and all of the representations and warranties contained
in the Credit Agreement and all instruments and documents executed pursuant thereto are true and correct in all material respects
on and as of this date (except to the extent such representations and warranties expressly refer to an earlier date, in which case
they shall be true and correct as of such earlier date).

 

SECTION 6.          Reference
to and Effect on the Credit Agreement.

 

(a)          Upon
the effectiveness hereof, on and after the date hereof, each reference in the Credit Agreement to “this Agreement,”
“hereunder,” “hereof,” “herein,” or words of like import, shall mean and
be a reference to the Credit Agreement as amended hereby.

 

(b)          Except
as specifically amended by this Amendment, the Credit Agreement shall remain in full force and effect and is hereby ratified and
confirmed.

 

SECTION 7.          Costs
and Expenses. The Company agrees to pay all reasonable legal fees and expenses incurred by Administrative Agent in connection
with the preparation, execution and delivery of this Amendment.

 

SECTION 8.          Extent
of Amendments. Except as otherwise expressly provided herein, the Credit Agreement and the other Loan Documents are not
amended, modified or affected by this Amendment. Each of the Company and the Parent hereby ratifies and confirms that (i) except
as expressly amended hereby, all of the terms, conditions, covenants, representations, warranties and all other provisions of the
Credit Agreement remain in full force and effect, (ii) each of the other Loan Documents are and remain in full force and effect
in accordance with their respective terms, and (iii) the Collateral and the Liens on the Collateral securing the Obligations are
unimpaired by this Amendment and remain in full force and effect.

 

    	 	-5-	Sixth Amendment

    	 

    

 

SECTION 9.          Loan
Documents. The Loan Documents, as such may be amended in accordance herewith, are and remain legal, valid and binding obligations
of the parties thereto, enforceable in accordance with their respective terms. This Amendment is a Loan Document.

 

SECTION 10.         Claims.
As additional consideration to the execution, delivery, and performance of this Amendment by the parties hereto and to induce Administrative
Agent and Lenders to enter into this Amendment, each of the Company and the Parent represents and warrants that, as of the date
hereof, it does not know of any defenses, counterclaims or rights of setoff to the payment of any Indebtedness of the Company or
the Parent to Administrative Agent, Issuing Lender or any Lender.

 

SECTION 11.         Execution
and Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile or pdf shall be
equally as effective as delivery of a manually executed counterpart.

 

SECTION 12.         Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York and applicable
federal laws of the United States of America.

 

SECTION 13.         Headings.
Section headings in this Amendment are included herein for convenience and reference only and shall not constitute a part of this
Amendment for any other purpose.

 

SECTION 14.         NO
ORAL AGREEMENTS. The rights and obligations of each of the parties to the loan
documents shall be determined solely from written agreements, documents, and instruments, and any prior oral agreements between
such parties are superseded by and merged into such writings. This Amendment and the other written Loan Documents executed by the
Company, the Guarantors, Administrative Agent, Issuing Lender and/or Lenders represent the final agreement between such parties,
and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements by such parties. There are no
unwritten oral agreements between such parties.

 

SECTION 15.         No
Waiver. Each of the Company and the Parent hereby agrees that no Event of Default and no Default has been waived or remedied
by the execution of this Amendment by the Administrative Agent or any Lender. Nothing contained in this Amendment nor any past
indulgence by the Administrative Agent, Issuing Lender or any Lender, nor any other action or inaction on behalf of the Administrative
Agent, Issuing Lender or any Lender, (i) shall constitute or be deemed to constitute a waiver of any Defaults or Events of Default
which may exist under the Credit Agreement or the other Loan Documents, or (ii) shall constitute or be deemed to constitute an
election of remedies by the Administrative Agent, Issuing Lender or any Lender, or a waiver of any of the rights or remedies of
the Administrative Agent, Issuing Lender or any Lender provided in the Credit Agreement, the other Loan Documents, or otherwise
afforded at law or in equity.

 

[Signature Pages Follow]

 

    	 	-6-	Sixth Amendment

    	 

    

 

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

 

	 	THE COMPANY:
	 	 
	 	BREITBURN OPERATING L.P., 
	 	a Delaware limited partnership
	 	 
	 	By: BREITBURN OPERATING GP, LLC, its general partner
	 	 	 
	 	By:	/s/ Randall H. Breitenbach
	 	 	Randall H. Breitenbach
	 	 	President
	 	 	 
	 	PARENT:
	 	 
	 	BREITBURN ENERGY PARTNERS L.P.,
	 	a Delaware limited partnership
	 	 
	 	By: BREITBURN GP, LLC, its general partner
	 	 	 
	 	By:	/s/ Randall H. Breitenbach
	 	 	Randall H. Breitenbach
	 	 	President
	 	 	 
	 	PARENT GP:
	 	 
	 	BREITBURN GP, LLC,
	 	a Delaware limited partnership
	 	 	 
	 	By:	/s/ Randall H. Breitenbach
	 	 	Randall H. Breitenbach
	 	 	President
	 	 
	 	GENERAL PARTNER:
	 	 
	 	BREITBURN OPERATING GP, LLC,
	 	a Delaware limited partnership
	 	 	 
	 	By:	/s/ Randall H. Bretenbach
	 	 	Randall H. Breitenbach
	 	 	President

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	SUBSIDIARY GUARANTORS:
	 	 
	 	BREITBURN FINANCE CORPORATION,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Randall H. Breitenbach
	 	 	Randall H. Breitenbach
	 	 	Co-Chief Executive Officer
	 	 	 
	 	BREITBURN MANAGEMENT COMPANY, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Randall H. Breitenbach
	 	 	Randall H. Breitenbach
	 	 	President
	 	 	 
	 	ALAMITOS COMPANY, 
	 	a California corporation
	 	 	 
	 	By:	/s/ Randall H. Breitenbach
	 	 	Randall H. Breitenbach
	 	 	Co-President
	 	 	 
	 	BREITBURN FLORIDA LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	BreitBurn Operating L.P.,
	 	 	its sole member
	 	 	 
	 	 	By:	BreitBurn Operating GP, LLC,
	 	 	 	its general partner
	 	 	 
	 	 	By:	/s/ Randall H. Breitenbach
	 	 	 	Randall H. Breitenbach
	 	 	 	President
	 	 	 
	 	BREITBURN FULTON LLC, 
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Bruce D. McFarland
	 	 	Bruce D. McFarland
	 	 	Secretary

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	BEAVER CREEK PIPELINE, L.L.C.,
	 	a Michigan limited liability company
	 	 
	 	GTG PIPELINE LLC,
	 	a Virginia limited liability company
	 	 
	 	MERCURY MICHIGAN COMPANY, LLC,
	 	a Michigan limited liability company
	 	 
	 	TERRA ENERGY COMPANY LLC,
	 	a Michigan limited liability company, and
	 	 
	 	TERRA PIPELINE COMPANY LLC,
	 	a Michigan limited liability company
	 	 	 
	 	Each by:	/s/ Randall H. Breitenbach
	 	 	Randall H. Breitenbach
	 	 	Co-Chief Executive Officer

 

	 	PHOENIX PRODUCTION COMPANY,
	 	a Wyoming corporation, and
	 	 
	 	PREVENTIVE MAINTENANCE SERVICES LLC,
	 	a Colorado limited liability company
	 	 	 
	 	By:	/s/ Bruce D. McFarland
	 	 	Bruce D. McFarland
	 	 	Treasurer

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION as Administrative Agent, Issuing Lender and a Lender
	 	 	 
	 	By:	/s/ Matt Turner
	 	 	Matt Turner
	 	 	Vice President

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	Bank of Montreal,
	 	As a Lender
	 	 	 
	 	By:	/s/ Gumaro Tijerina
	 	Name:	Gumaro Tijerina
	 	Title:	Director

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	The Bank of Nova Scotia,
	 	As a Lender
	 	 	 
	 	By:	/s/ Terry Donovan
	 	Name:	Terry Donovan
	 	Title:	Managing Director

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	UNION BANK, N.A.,
	 	As a Lender
	 	 	 
	 	By:	/s/ Lara Sorokolit
	 	Name:	Lara Sorokolit
	 	Title:	Vice President

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	Citibank, N.A.,
	 	As a Lender
	 	 	 
	 	By:	/s/ Phil Ballard
	 	Name:	Phil Ballard
	 	Title:	Vice President

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	Royal Bank of Canada,
	 	As a Lender
	 	 	 
	 	By:	/s/ Kristan Spivey
	 	Name:	Kristan Spivey
	 	Title:	Authorized Signatory

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	As a Lender
	 	 	 
	 	By:	/s/ Mark E. Thompson
	 	Name:	Mark E. Thompson
	 	Title:	Senior Vice President

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	The Royal Bank of Scotland, pic,
	 	As a Lender
	 	 	 
	 	By:	/s/ Sanjay Remond
	 	Name:	Sanjay Remond
	 	Title:	Authorized Signatory

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	BANK OF SCOTLAND PLC,
	 	As a Lender
	 	 	 
	 	By:	/s/ Stephen Giacolone
	 	Name:	Stephen Giacolone
	 	Title:	Assistant Vice President

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	BARCLAYS BANK PLC,
	 	As a Lender
	 	 	 
	 	By:	/s/ Michael J. Mozer
	 	Name:	Michael J. Mozer
	 	Title:	Vice President

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	CREDIT SUISSE AG, Cayman Islands Branch,
	 	As a Lender
	 	 	 
	 	By:	/s/ Doreen Barr
	 	Name:	Doreen Barr
	 	Title:	Director
	 	 	 
	 	By:	/s/ Michael Spaight
	 	Name:	Michael Spaight
	 	Title:	Associate

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	TORONTO DOMINION (TEXAS) LLC,
	 	As a Lender
	 	 	 
	 	By:	/s/ Bebi Yasin
	 	Name:	Bebi Yasin
	 	Title:	Authorized Signatory

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	JPMorgan Chase Bank, N.A.,
	 	As a Lender
	 	 	 
	 	By:	/s/ Mark E. Olson
	 	Name:	Mark E. Olson
	 	Title:	Authorized Officer

 

    	Signature Page to Sixth Amendment

    	 

    

 

	 	Sumitomo Mitsui Banking Corporation,
	 	As a Lender
	 	 	 
	 	By:	/s/ Shuji Yabe
	 	Name:	Shuji Yabe
	 	Title:	Managing Director

 

    	Signature Page to Sixth Amendment

    	 

    

 

SCHEDULE 2.01

 

COMMITMENTS AND PRO RATA SHARES

 

	Lender	 	Lender’s Share of 
Borrowing Base	 	 	Lender’s Share of 
Elected Commitment 
Amount	 	 	Lender’s Share of 
Aggregate 
Maximum Loan 
Amount	 	 	Pro Rata Share	 
	Wells Fargo Bank, National Association	 	$	187,603,930.46	 	 	$	168,843,537.41	 	 	$	281,405,895.69	 	 	 	18.76039304611	%
	BMO Capital Markets Financing, Inc.	 	$	78,578,935.82	 	 	$	70,721,042.24	 	 	$	117,868,403.73	 	 	 	7.85789358188	%
	The Bank of Nova Scotia, Houston Branch	 	$	78,578,935.82	 	 	$	70,721,042.24	 	 	$	117,868,403.73	 	 	 	7.85789358188	%
	Union Bank, N.A.	 	$	78,578,935.82	 	 	$	70,721,042.24	 	 	$	117,868,403.73	 	 	 	7.85789358188	%
	Citibank, N.A.	 	$	66,205,452.19	 	 	$	59,584,906.97	 	 	$	99,308,178.28	 	 	 	6.62054521865	%
	Royal Bank of Canada	 	$	66,205,452.19	 	 	$	59,584,906.97	 	 	$	99,308,178.28	 	 	 	6.62054521865	%
	U.S. Bank National Association	 	$	66,205,452.19	 	 	$	59,584,906.97	 	 	$	99,308,178.28	 	 	 	6.62054521865	%
	Bank of Scotland plc	 	$	58,049,886.62	 	 	$	52,244,897.96	 	 	$	87,074,829.93	 	 	 	5.80498866213	%
	The Royal Bank of Scotland plc	 	$	66,205,452.19	 	 	$	59,584,906.97	 	 	$	99,308,178.28	 	 	 	6.62054521865	%
	Barclays Bank PLC	 	$	66,205,452.19	 	 	$	59,584,906.97	 	 	$	99,308,178.28	 	 	 	6.62054521865	%
	Credit Suisse, Cayman Islands Branch	 	$	55,171,210.16	 	 	$	49,654,089.14	 	 	$	82,756,815.23	 	 	 	5.51712101554	%
	Toronto Dominion (Texas) LLC	 	$	44,136,968.12	 	 	$	39,723,271.31	 	 	$	66,205,452.19	 	 	 	4.41369681244	%
	JPMorgan Chase Bank, N.A.	 	$	44,136,968.12	 	 	$	39,723,271.31	 	 	$	66,205,452.19	 	 	 	4.41369681244	%
	Sumitomo Mitsui Banking Corporation	 	$	44,136,968.12	 	 	$	39,723,271.31	 	 	$	66,205,452.19	 	 	 	4.41369681244	%
	TOTAL	 	$	1,000,000,000.00	 	 	$	900,000,000.00	 	 	$	1,500,000,000.00	 	 	 	100.00000000000	%

 

    	Schedule 2.01 to Sixth Amendment

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