Document:

EMPLOYMENT AGREEMENT

  

This employment agreement (the “Agreement”)
is effective as of August 15, 2013 between TARGETED MEDICAL PHARMA, INC, a Delaware corporation (“TMP”), and William
B. Horne, an individual resident of California (“Executive”).

  

RECITALS

 

		A.	Executive has acquired special skills and abilities appropriate
to and necessary for the role of Chief Financial Officer at TMP.

 

		B.	TMP desires the continued association and services of
Executive in order to retain his or her experience, skills, abilities, background, and knowledge, and is therefore willing to
engage his or her services on the terms and conditions set forth below.

 

		C.	Executive desires to be employed by TMP and is willing
to provide services on the terms and conditions detailed herein.

  

AGREEMENT

 

NOW, THEREFORE, in consideration of the
above recitals and of the mutual promises and conditions in this Agreement, the parties agree as follows:

 

1.          ENGAGEMENT.
TMP shall employ Executive as Chief Financial Officer as of August 19, 2013 (the “Start Date”).

 

2.          RESPONSIBILITY.
Executive shall report to the Chief Executive Officer and Board of Directors of TMP. Executive responsibilities shall include:
financial accounting and reporting; treasury operations; budgeting and planning; assisting in strategic planning and investor relations;
preparation of the company’s SEC filings and reporting; ensuring that the company is compliant with Sarbanes Oxley and Dodd-Frank
requirements and with local, state, and federal reporting requirements; create, coordinate, and evaluate the financial data of
the company to include budgeting, tax planning and conservation of assets; coordinate changes and improvements in financial information
systems; oversee the approval and processing of revenue, expenses, department budgets, ledger, account maintenance and financial
data entry; coordinate the preparation of financial statements, financial reports, special analyses, and information reports; continually
improve finance, accounting, billing, and auditing procedures and control safeguards; ensure records systems are maintained in
accordance with generally accepted auditing standards; train and guide the accounting team; serve on planning and policy-making
committees as requested; and such other duties and responsibilities as the Chief Executive Officer and Board of Directors of TMP
shall determine, assign, or delegate from time to time during the period of this Agreement.

 

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Executive shall perform his duties faithfully
and diligently and shall abide by the Bylaws, rules, regulations, instructions, personnel practices and policies of TMP and any
changes to them that may be adopted by TMP, except to the extent inconsistent with the terms of this Agreement and in the event
of inconsistency the provisions of this Agreement govern.

 

3.          OFFICE
LOCATIONS. Executive shall perform his responsible services from TMP’s offices in Los Angeles, California and, as may be
reasonably required by such services, other locations from time to time.

 

4.          COVENANTS
OF EXECUTIVE.

  

(a)          Devotion
Of Time To Business.  Executive will devote substantially all his time, attention, energy, knowledge, and skill to the business
of TMP.  Executive agrees that Executive will not engage in any other activities that conflict with Executive’s obligations
to TMP.

 

(b)          Conflicting
Employment and Noninterference with Business.  Executive agrees that during the Term of this Agreement and any renewal period
pursuant to paragraph 5 of this Agreement, Executive will not directly or indirectly provide services for, own, manage, consult,
operate any business or otherwise engage in business activity directly related to the businesses in which TMP is now involved or
becomes involved.   Following the termination of Executive’s employment with TMP, Executive shall not:  (a)
engage in unfair competition with TMP; (b) aid others in any unfair competition with TMP; (c) in any way breach the confidence
that TMP placed in Executive during his employment with TMP; (d) misappropriate any Confidential Information as defined in this
Agreement; or (e) breach any of the provisions of this paragraph 4 of this Agreement.   

 

(c)          No
Solicitation of Business or Customers.  Executive promises and agrees that during the Term of this Agreement and any renewal
period pursuant to paragraph 5 of this Agreement and for one (1) year after the termination of this Agreement, Executive will not
influence or attempt to influence customers (defined broadly as those members, persons and entities having business dealings with
TMP) of TMP to divert their business to any individual or entity then in competition with TMP. Executive further and specifically
promises and agrees that during the time period referred to in this paragraph he will not disrupt, damage, impair, or interfere
with the business of TMP by disrupting its relationships with customers, members, agents, employees, representatives, or vendors.

 

(d)          No
Solicitation of Employees.  Executive promises and agrees that during the Term of this Agreement and any renewal period pursuant
to paragraph 5 of this Agreement and for one (1) year after the termination of this Agreement, Executive will not disrupt, damage,
impair, or interfere with the business of TMP by interfering with or "raiding" TMP employees by directly or indirectly
soliciting TMP employees to work for any individual or entity then in competition with TMP.

 

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(e)          Confidential
Information.  Executive shall hold in a fiduciary capacity, for the benefit of TMP, as secret and confidential, all trade
secret and nonpublic information relating to TMP and the business of TMP which was disclosed to or acquired or known by Executive
during Executive's employment with TMP. Such TMP trade secret or confidential information includes lists of names, including customer
lists, personnel, pricing and account information, marketing plans, information concerning litigation or pending litigation, and
any communications subject to the attorney-client and attorney work-product privileges as to TMP's attorneys.  During Executive's
employment by TMP and after the termination of Executive's employment, Executive shall not, without prior written authorization
and consent of the TMP's Board of Directors, or as may otherwise be required by law or legal process, use or communicate or disclose
any such trade secret or confidential information to any third party other than TMP and those whom TMP authorizes to receive
such information.

 

(f)          Injunctive
Relief.  It is expressly agreed that TMP would suffer irreparable injury if Executive were to violate the provisions of this
paragraph 4 of the Agreement and that TMP would therefore be entitled to injunctive relief pursuant to the provisions of paragraph
20.  Executive consents and stipulates to the entry of such injunctive relief prohibiting Executive from competing with TMP
in violation of this Agreement.

 

(g)          Notification
of New Employer. Executive consents to notification by TMP to any subsequent employer of Executive about Executive’s rights
and obligations under this paragraph 4 of the Agreement.

 

(h)          CPA
Status. Executive will ensure Executive’s CPA status in the State of Washington is reinstated within 90 days of the Start
Date and that Executive’s CPA status in the State of California is active within 180 days of the Start Date. Executive will
maintain his CPA status as active in the State of California for the duration of his employment thereafter.

   

5.          
TERM. Subject to earlier termination as provided elsewhere in this Agreement, Executive shall be employed pursuant to this Agreement
for a term commencing upon the date hereof and ending one calendar year thereafter unless earlier terminated pursuant to Section
11 of this Agreement (the “Term”). TMP may renew this Agreement for one (1) additional year (meaning from effective
date through the last day of the twelfth month) each year after the expiration of the initial Term, and will advise Executive in
writing no later than May 15 of each year of its decision regarding renewal of this Agreement. If the Agreement is renewed, it
will be for the period of one additional year (August 14 through the following August 13). If the Agreement is not renewed or if,
for any reason, TMP does not notify Executive in writing of its decision regarding renewal by May 15, the Agreement will terminate
on August 13 and TMP will have no further obligation to pay Executive any compensation or any other amounts, except for any unused
accrued paid time off and reimbursable business expenses as provided in paragraphs 8 and 10, respectively, and any earned and accrued
bonus or payments due Executive, if any, at the time of termination under any plans in which Executive participated prior to termination,
or as otherwise provided by law. If TMP does not renew the Agreement it may, at its option, place Executive on inactive status,
at full pay, for the period of May 16 through August 13 of the then current year.

 

6.          COMPENSATION
OF EMPLOYEE.

 

(a)          Base
Salary. Effective upon execution of this Agreement, Executive’s Base Salary shall be $200,000 per year, payable in accordance
with the customary payroll practices of TMP but in no event less frequently than bi-weekly.

 

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(b)          Performance
Bonuses.

 

(1)          Executive
shall receive a one-time cash bonus (the “Cash Flow Bonus”) of $50,000 upon the company maintaining a cash balance
in excess of $250,000 for every day two consecutive quarters. Bonus will be paid out at a rate of $10,000 per month for five months.
If Executive’s employment is terminated for any reason prior to the payout of any or all of this bonus balance, the unpaid
balance shall be foregone.

 

(2)          Beginning
January 1, 2014, Executive shall be eligible to earn an annual cash bonus (the “EBITDA bonus”) ranging from 0% to 30%
of $250,000, pro-rata to the Company’s earnings before interest taxes depreciation and amortization including equity compensation
(herein “Adjusted EBITDA”) as reported in the Company’s financials. Adjusted EBIDTA goals shall be $5 million
in 2014, $10 million in 2015 and $15 million in 2016. As an example and for clarification, should the Company report Adjusted EBITDA
in 2014 of $4 million, Executive shall receive a bonus of $60,000 ($4 million / $5 million x 30% x $250,000).

 

7.          STOCK
OPTIONS.

 

(a)          Base
Stock Options. Upon Executive’s 90th calendar day of employment, TMP will grant Executive an option to purchase
One Hundred and Fifty Thousand (150,000) shares of TMP common stock with a seven (7) year term fully-vested upon grant pursuant
to TMP’s stock option plan. The option shall have an exercise price per share equal to fair market value per share as determined
by the average closing price for the ten market days prior to the grant date. The options shall vest twenty five percent (37,500
shares) per year for four years on each of the following dates: August 19 of 2014, 2015, 2016 and 2017. Executive shall be solely
responsible for paying his own federal and state taxes associated with the grant and any exercise of such Stock Option, provided,
that TMP will take any necessary action, to the extent reasonable, to ensure incentive stock option treatment for the Stock Option,
in whole or part, to the extent eligible under applicable laws.

 

(b)          Bonus
Stock Options. Upon the filing of TMP’s annual report for the fiscal years 2014, 2015 and 2016, TMP will grant Executive
an option to purchase between Zero (0) and Forty Thousand (40,000) shares of TMP common stock pro-rata to the Company’s Adjusted
EBITDA goals for that fiscal year. Adjusted EBIDTA goals shall be $5 million in 2014, $10 million in 2015 and $15 million in 2016.
As an example and for clarification, should the Company report adjusted EBITDA in 2014 of $4 million, Executive shall receive a
stock option bonus of 32,000 shares. The stock options shall have a seven (7) year term will be granted pursuant to TMP’s
stock option plan. The option shall have an exercise price per share equal to fair market value per share as determined by the
average closing price for the ten market days prior to the grant date. Executive shall be solely responsible for paying his own
federal and state taxes associated with the grant and any exercise of such Stock Option, provided, that TMP will take any necessary
action, to the extent reasonable, to ensure incentive stock option treatment for the Stock Option, in whole or part, to the extent
eligible under applicable laws.

 

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8.          EXPENSES.
TMP shall reimburse the Executive for all reasonable business expenses incurred during the Term of this Agreement in accordance
with applicable policies and procedures of TMP then in force, including, without limitation, cell phone and related data services,
travel (including mileage for services-related travel using Executive’s personal vehicle), lodging, and other expenses incurred
by Executive, and all other expenses contemplated by this Agreement, provided such expenses are evidenced by reasonable documental
proof and pre-approval by Executive’s supervisor.

 

9.          MEDICAL
BENEFITS. Executive shall be eligible to enroll in TMP’s standard medical benefits plan upon the 30th day of Executive’s
employment.

 

10.          PERSONAL
TIME OFF. Executive shall accrue three week’s (120 hours) personal time off per year (prorated the first year to the number
of days worked in that year). In addition, Executive will be eligible for TMP’s standard annual holidays (approximately eight
days per year). Executive shall also accrue one week (40 hours) of sick time per year. Unused personal time off shall roll-over
to the following year if unused, with a maximum balance of 200 hours. Unused holidays and sick time shall not roll over from year
to year.

 

11.          NOTICE
OF TERMINATION. Any termination of the Executive’s employment hereunder by TMP or by the Executive shall be communicated
by written notice of termination to the other party hereto in accordance with this Agreement.

 

12.          EMPLOYEE
COMPENSATION UPON TERMINATION.

 

(a)          EFFECTS
OF GENERAL TERMINATION. Upon any termination of employment of or by Executive for any reason, TMP shall pay on the Date of Termination
all accrued and owing salary, reimbursable expenses and accrued vacation through the Date of Termination, less any applicable tax
deductions and withholding amounts in accordance with applicable state and federal law. Any other amounts payable hereunder upon
any termination shall be paid in accordance with the Company’s customary payroll periods and less any applicable tax deductions
and withholding amounts in accordance with applicable state and federal law, unless otherwise explicitly stated in this Agreement.
Unless explicitly stated otherwise, in the event of any termination Executive shall remain eligible to receive a prorated bonus
for the period of service prior to the Date of Termination. Any unvested Stock Options held by Executive shall be foregone.

 

(b)          DEATH
OR DISABILITY. During any period during the Term that the Executive fails to perform his duties hereunder as a result of a Disability
(as defined below), TMP will have the option to terminate Executive's employment by giving a notice of termination to Executive.
The notice of termination shall specify the Date of Termination, which date shall not be earlier than thirty (30) days after the
notice of termination is given. For purposes of this Agreement, “Disability” shall mean a physical or mental impairment
that, as reasonably determined by the Board, renders the Executive unable to perform the essential functions of his employment
with the Company, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 90 days
in any 180-day period, unless a longer period is required by federal or state law, in which case that longer period would apply.
If terminated due to Disability, in addition to the amounts set forth in subsection 11(a), TMP shall (i) pay the Executive, or
Executive’s beneficiaries in case of death, Base Salary for a period of six (6) months after the Date of Termination, (ii)
continue to cover Executive and other under Executive’s health plan at the time of termination under applicable Benefit Plans
through the end of the Term or Renewal Term, as the case may be and (iii) maintain Executive’s, or Executive’s beneficiaries
in case of death, eligibility to receive the Annual Bonuses as otherwise provided under this Agreement.

 

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(c)          EMPLOYER’S
TERMINATION FOR CAUSE. If the Executive’s employment hereunder is terminated by TMP for Cause (as defined below), other than
the amounts set forth in subsection 11(a), Executive shall be entitled to no further compensation.

 

(d)          EMPLOYER’S
TERMINATION FOR ANY REASON OTHER THAN CAUSE, DISABILITY OR DEATH OR BY EMPLOYEE FOR ANY REASON OTHER THAN GOOD REASON. If the Executive’s
employment hereunder is terminated by TMP for any reason other than Cause, Disability or Death (as addressed elsewhere herein),
or by the Executive for any reason (other than Good Reason as addressed below) then in addition to the amounts set forth in subsection
11(a), TMP shall continue to pay the Executive Base Salary for a period of three (3) months after the Date of Termination.

 

(e)          TERMINATION
BY EXECUTIVE FOR GOOD REASON. If  the Executive’s employment is terminated by
Executive for Good Reason (as defined below), in addition to the amounts set forth in subsection 11(a), TMP shall pay the Executive
Base Salary for a period of three (3) months after the Date of Termination.

 

(f)          DETERMINATION
OF CAUSE AND RELATED DATE OF TERMINATION - EMPLOYER. TMP may terminate the Executive’s employment hereunder for “Cause,”
which means, as determined solely in the discretion of TMP’s designated agents:

 

(i)          Upon
the Executive’s conviction for the commission of a felony (or a plea of nolo contendre thereto);

 

(ii)          A
material breach by Executive of any of the representations or warranties or terms of this Agreement; and

 

(iii)          Willful
failure by the Executive to materially perform his duties pursuant to the terms and conditions this Agreement (other than any such
failure resulting from the Executive’s incapacity due to Disability). For purposes hereof, no act or failure to act by the
Executive shall be considered ‘willful’ unless done or omitted to be done by him in bad faith.

 

(iv)          A
determination by TMP that Executive’s performance is below TMP’s expectations. In this case, Executive shall be given
a 90 day notice and window to improve performance to TMP’s expectations.

 

Other than in the case of subsection 11(g)(iv), the Date of
Termination for termination of Executive by TMP for Cause shall be no earlier than two weeks after the effective date of notice
(per subsection 21(b) below), during which period Executive shall be entitled to cure any condition specified in the Notice of
Termination pursuant to subsection 11(g)(ii).

 

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(g)          GOOD
REASON - EMPLOYEE. The Executive may terminate his employment hereunder for Good Reason, provided that the Executive shall have
delivered a Notice of Termination (as described herein) within thirty (30) days after the occurrence of the event giving rise to
such termination for Good Reason. Executive’s termination of his employment for Good Reason shall mean the occurrence of
one or more of the following circumstances, without the Executive’s express written consent, which are not remedied by TMP
within thirty (30) days of the effective date of the Notice of Termination (per subsection 21(b) below):

 

(i)          an
assignment to the Executive of any duties materially inconsistent with his positions, duties, responsibilities and status with
TMP hereunder or any material limitation of the powers of the Executive, in each instance not consistent with the powers of the
Executive contemplated by Paragraph 2 hereof;

 

(ii)          any
removal of the Executive from, or any failure to re-elect the Executive to, the positions specified in the Agreement;

 

(iii)          a
reduction in the Executive’s Base Salary as in effect from time to time;

(iv)          the
failure of the Company to continue in effect any Benefit Plan that was in effect on the date hereof or provide the Executive with
materially equivalent benefits;

 

(v)          any
relocation of Executive to a primary office location that is more than 30 miles from the Los Angeles office of TMP as of the date
of this Agreement or requirement that Executive travel outside of Southern California more than ten (10) days per month;

(vi)          any
other material breach by the Company of this Agreement.

 

(h)          COMPLIANCE
WITH SECTION 409A. The parties to this Agreement intend that the Agreement complies with Section 409A of the Code, where applicable,
and this Agreement will be interpreted in a manner consistent with that intention. Notwithstanding any other provisions of this
Agreement to the contrary, and solely to the extent necessary for compliance with Section 409A of the Code, if as of the date of
Executive’s “separation from service” (within the meaning of Section 409A of the Code and the applicable regulations)
from TMP, (i) Executive is deemed to be a “specified employee” (within the meaning of Section 409A of the Code), and
(ii) TMP or any member of a controlled group including TMP is publicly traded on an established securities market or otherwise,
no payment or other distribution required to be made to Executive hereunder (including any payment of cash, any transfer of property
and any provision of taxable benefits) solely as a result of Executive’s separation from service will be made earlier than
the first day of the seventh month following the date on which the Executive separates from service with TMP, or if earlier within
thirty (30) days of the Executive’s date of death following the date of such separation. Notwithstanding the foregoing, this
provision will not apply to (a) all payments on separation from service that satisfy the short-term deferral rule of Treas. Reg.
§1.409A-1(b)(4), (b) to the portion of the payments on separation from service that satisfy the requirements for separation
pay due to an involuntary separation from service under Treas. Reg. §1.409A-1(b)(9)(iii), and (c) to any payments that are
otherwise exempt from the six month delay requirement of the Treasury Regulations under Code Section 409A. Notwithstanding anything
to the contrary herein, a termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement
providing for the payment of amounts or benefits upon or following a termination of employment unless such termination is also
a “separation from service” within the meaning of Section 409A of the Code and, for purposes of any such provision
of this Agreement, references to a “resignation,” “termination,” “termination of employment,”
or like terms will mean a separation from service. For purposes of Section 409A of the Code, each payment made under this Agreement
will be designated as a “separate payment” within the meaning of the Section 409A of the Code. Notwithstanding anything
to the contrary herein, except to the extent any expense, reimbursement or in-kind benefit provided pursuant to this Agreement
does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code: (x) the amount of
expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount
of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar year, (y) the reimbursements
for expenses for which Executive is entitled to be reimbursed will be made on or before the last day of the calendar year following
the calendar year in which the applicable expense is incurred, and (z) the right to payment or reimbursement or in-kind benefits
hereunder may not be liquidated or exchanged for any other benefit.

 

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13.          SUCCESSORS
AND ASSIGNS. This Agreement shall not be assignable by the Executive. This Agreement and all rights of the Executive hereunder
shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, devisees and legatees. Upon the Executive’s death, all amounts to which he is entitled hereunder shall
be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designees or, if there
be no such designee, to the Executive’s estate. The Agreement shall be binding upon and inure to the benefit of the successors-in-interest,
assigns and personal representatives of TMP.

 

14.          CONFIDENTIAL
INFORMATION AND TRADE SECRETS.

 

(a)          Executive
has reviewed and signed TMP’s confidentiality agreement and recognizes that Executive’s position with TMP requires
considerable responsibility and trust, and, in reliance on Executive’s loyalty, TMP may entrust Executive with highly sensitive
confidential, restricted and proprietary information involving Trade Secrets and Confidential Information.

 

(b)          For
purposes of this Agreement, a “Trade Secret” is any scientific or technical information, data, methods, design, process,
procedure, formula or improvement related to TMP or its affiliates that is not generally known to competitors of TMP. “Confidential
Information” is any oral or written knowledge, technical data, secret or proprietary information, Know-how or other information
of TMP and its affiliates (and their respective customers, investors, vendors, business partners and the like) of any kind, other
than Trade Secrets, including, but not limited to, TMP’s business plans, business prospects, training manuals, product development
plans, bidding and pricing procedures, market strategies, internal performance statistics, financial data, confidential personnel
information concerning Executives of TMP, supplier data, operational or administrative plans, policy manuals, and terms and conditions
of contracts and agreements. The term “Trade Secret” and “Confidential Information” shall not apply to
information which is (i) already in Executive’s possession (unless such information was derived prior to the date of this
Agreement solely in connection with formulating TMP’s business plans, obtained by Executive from TMP while in service to
TMP or was obtained by Executive in the course of Executive’s employment by TMP), (ii) become generally known to others in
the industry by means other than unlawful disclosure by Executive or (iii) required to be disclosed by any applicable law.

 

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(c)          Except
as required to perform Executive’s duties hereunder, Executive shall not use or disclose any Trade Secrets or Confidential
Information of TMP during employment, at any time after termination of employment and prior to such time as they cease to be Trade
Secrets or Confidential Information through no act of Executive, unless required to be disclosed by applicable law.

 

(d)          Upon
the request of TMP and, in any event, upon the termination of employment hereunder, Executive will surrender to the company all
memoranda, notes, records, plans, manuals or other documents pertaining to TMP’s business, Trade Secrets or Confidential
Information or Executive’s employment (including all copies thereof). All such information and materials, whether or not
made or developed by Executive, shall be the sole and exclusive property of TMP, and Executive hereby assigns to the company all
of Executive’s right, title and interest in and to any and all of such Trade Secrets or Confidential Information.

 

(e)          Executive
agrees and acknowledges that TMP has developed, and is developing at great expense of time and financial resources, which are kept
and protected as Confidential Information and Trade Secrets that are unique and of great value to TMP, and that, in the event this
Section 13 or any of the sub-parts of this Section 13 is breached by Executive, said breach will give rise to irreparable damage
to TMP inadequately compensable in damages. Executive therefore expressly agrees that in the event of a breach or threatened breach
of this Section 13, or any of the sub-parts of this Section 13, TMP will be entitled to seek injunctive relief in any court of
competent jurisdiction, in addition to any and all other legal or equitable rights and remedies existing in its favor, and may
also apply to any court of law or equity having competent jurisdiction for a declaratory judgment for specific performance or other
relief in order to enforce its rights or prevent any violation of this Agreement, and Executive will not claim as a defense thereto
that TMP has an adequate remedy at law.

 

15.          INTELLECTUAL
PROPERTY RIGHTS DURING THE TERM OF THIS AGREEMENT. Executive acknowledges and agrees that his performance under this agreement
is work for hire and Executive agrees to and does hereby sell, assign, transfer and set over to TMP, its successors, assigns, or
affiliates, as the case may be, all of Executive’s right, title, and interest in and to any inventions, improvements, processes,
patents or applications for patents which Executive develops or conceives individually or in conjunction with others during the
course of Executive’s retention by TMP, or, having possibly conceived same prior to his retention, may complete while performing
services for TMP or any of the TMP’s affiliates, in both cases whether during or outside business hours, whether or not on
the TMP’s premises, in connection with any matters which related to the TMP’s or the TMP’s affiliates’
business, to be held and enjoyed by TMP, its successors, assigns or affiliates, as the case may be, to the full extent of the term
for which any patent may be granted and as fully as the same would have been held by Executive, had this Agreement sale or assignment
not been made. Executive will make, execute and deliver any and all instruments and documents necessary to obtain patents for such
inventions, improvements and processes in any and all countries. Executive hereby irrevocably appoints TMP to be Executive’s
attorney in fact in the name of and on behalf of Executive to execute all such instruments and do all such things and generally
to use the Executive’s name for the purposes of assuring to TMP (or its nominee) the full benefit of its rights under the
provisions of this Section 14.

 

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16.          POLICIES
AND PROCEDURES. As an employee of TMP, Executive will be subject to the administrative, personnel, marketing and other policies
and procedures of TMP as they may be modified or supplemented from time-to-time by TMP, in its sole discretion, including, without
limitation, those policies set forth in TMP’s employee handbooks or manuals, if any. Executive agrees to abide by TMP’s
policies, provided, however, that (1) they have been provided to Executive in writing reasonably in advance of implementation and
enforcement against Executive, and (2) the terms of this Agreement shall supersede and control in the event of any conflict or
inconsistency between the terms of this Agreement and TMP’s policies, including, without limitation, those employee policies
relating to outside employment and performance reviews.

 

17.          SUPERVISION
OF EMPLOYEE. In performing services under this Agreement, Executive shall at all times in service to TMP hereunder be subject to
the supervision and control of TMP. Executive shall regularly report to such TMP personnel as directed by TMP. Executive shall
participate as requested in TMP’s employee training, regulatory compliance (including, but not limited to, HIPAA compliance)
and orientation programs. If requested, Executive shall document all hours worked for TMP in a form satisfactory to TMP.

 

18.          COMPLIANCE
WITH HEALTH CARE LAW. Executive shall fulfill its obligations under this Agreement in accordance with any and all applicable laws,
rules, guidelines and requirements of governmental, accrediting, reimbursement, payment and other agencies having jurisdiction
over the operation of TMP’s business, including without limitation, compliance with the following requirements: Executive
has complied in all material respects with, is in material compliance with and shall remain in material compliance with all applicable
laws and regulations of foreign, federal, state and local governments and all agencies thereof relating to Health Care Laws and
Practices (as defined below). Executive has not received notification of or been under investigation with respect to, any violation
of any provision of any federal, state or local law or administrative regulation, or of any rule, regulation or requirement of
any licensing body relating to Health Care Laws and Practices. For purposes of this Agreement, “Health Care Laws and Practices”
means all federal, state or local laws, rules, regulations or guidelines regarding (i) any government-sponsored health care program,
including Medicare and other federally or state funded entitlement programs, and including those laws, rules, regulations and guidelines
related to covered services, charging practices, billing, collection, marketing and advertising, (ii) kickbacks, fee-splitting
and other referral practices, including, without limitation, the federal anti-kickback statute set forth at 42 U.S.C. Section 1320a-7b
(the “anti-kickback statute”), the federal physician self referral law set forth at 42 U.S.C. Section 1395nn (the “Stark
law”), California Business and Professions Code Section 650, California Welfare and Institutions Code Section 14107.2(a),
California Business and Professions Code Sections 650.01 and 650.02, California Labor Code Sections 139.3 and 139.31 and other
related or similar laws and regulations, and (iii) the privacy, maintenance or protection of patient records, including the HIPAA.

 

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19.          INDEMNIFICATION.
TMP hereby agrees to indemnify, hold harmless and defend Executive, including advancing expenses and promptly paying covered amounts
when due, to the fullest extent permitted by law and under the charter and bylaws of TMP, against and in respect to any and all
actions, suits, proceedings, claims, demands, judgments, cost, fees (including reasonable attorneys’ fees), losses, damages
and causes of action (including, but not limited to, claims for indemnity or contribution) resulting from Executive’s good
faith performance of his duties and obligations hereunder. Executive shall indemnify and hold TMP harmless from all liability for
loss, damages, or injury to persons or property resulting from the culpable negligence or misconduct of Executive. If any claim,
action or proceeding shall hereafter be brought seeking to hold TMP liable on account of any act or omission of Executive, Executive
shall, at Executive's sole expense, pay, appear and defend TMP against any such claim or demand, and indemnify and hold TMP free
and harmless therefrom. This indemnification shall include any costs, including attorney's fees, reasonably incurred by TMP in
defending any claim made against Executive.

 

20.          NEGOTIATION,
MEDIATION AND ARBITRATION.

 

(a)          Negotiation
and Binding Arbitration. While TMP and Executive hope that employment disputes will not occur, TMP and Executive believe that
where such disputes do arise, it is in the mutual interest of TMP and Executive to handle them pursuant to negotiation and binding
arbitration which generally resolves disputes quicker than court litigation and with a minimum of disturbance to all parties involved. 
TMP AND EXECUTIVE UNDERSTAND THAT THEY ARE WAIVING TO THE MAXIMUM EXTENT PERMITTED BY LAW THE RIGHT TO A JURY TRIAL AND RIGHT TO
APPEAL FOR ALL EMPLOYMENT-RELATED DISPUTES.

 

(b)          Consultation,
Negotiation and Mediation. TMP and Executive shall use their best efforts to settle any claim, dispute, question, or disagreement
arising out of or in connection with Executive's employment, (collectively referred to as “Claim” or “Claims”)
as follows: 

 

(1)          Executive
and TMP shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just
and equitable solution satisfactory to both parties.  If they do not reach such solution within a period of forty-five 45
days from first notice by either party ("Consultation and Negotiation Period");

 

(2)          If
Executive and Company do not resolve any Claim within the Consultation and Negotiation Period, then Company or Executive may initiate
non-binding mediation by notifying the other party in writing.  Company and Executive shall mutually select a mutually agreeable
neutral third party mediator ("Mediator") within forty-five (45) days from notice of a party's initiation of mediation. 
The parties will conduct mediation in good faith within forty-five (45) days of the selection of the Mediator ("Mediation
Period").  Company and Employee shall equally share all costs of Mediation;

 

    	Page 11 of 17

    	 

    

 

(3)          If
Executive and Company do not resolve any Claim within the Mediation Period, then, upon written notice by either party to the other,
the Claim shall be decided exclusively by final and binding arbitration as set forth herein.  This paragraph shall not apply
if either party seeks injunctive relief pursuant to paragraph 6.o below,

 

(c)          Final
and Binding Arbitration. Any and all such Claims shall be decided exclusively by final and binding arbitration in Los Angeles
County, California, pursuant to the procedures required by California law, including the California Arbitration Act, California
Code of Civil Procedure §§ 1281, et seq. and governing case law including Armendariz v. Foundation Health Psychcare
Servs., Inc. (2000) 24 Cal.4th 83, and subsequently decided authorities, and laws.

 

(d)          California
Law Unsettled. TMP and Executive acknowledge that each of them has been fully and completely advised by their own attorneys,
or if unrepresented have been advised by the reading of this paragraph, and each of them understands that California law is presently
unsettled as to the extent each of them, as part of this Agreement, can lawfully waive their respective rights and obligations
by agreeing in advance to submit any Claims that may arise between them to arbitration.  Notwithstanding the unsettled state
of the law, TMP and Executive agree that to the maximum extent permissible, each of them will submit any Claims to arbitration. 
TMP and Executive further agree that in the event that any of the arbitration provisions in this paragraph 6 is held to be unenforceable,
such provision shall be deemed stricken and the remainder shall be fully enforceable. These arbitration provisions shall not apply
to a Claim if an agreement to arbitrate such Claim is prohibited by California or federal law including governing case law.

 

(e)          Demand
for Arbitration. Any Demand for Arbitration (“Demand”) must be submitted in writing to the other party at any time
within the period covered by the applicable statute of limitations on the Claim stated in the Demand or such Claim will be barred
forever (the “statute of limitations” is defined as being the same limitations period that would be applicable if a
lawsuit was filed in the Superior Court of the State of California.). The written Demand will include the following information:
(1) A factual description of the Claim in sufficient detail to advise the other party of the nature of the Claim; (2) The date
when the Claim first arose; (3) The names and telephone numbers of any persons with knowledge of the Claims; and (4) The relief
sought by requesting party.

 

(f)          Selection
of Arbitrator. The arbitration shall be conducted before a single neutral arbitrator (“Arbitrator”) selected by
both parties in accordance with California Code of Civil Procedure Section 1281.6. The Executive and the TMP will jointly select
the Arbitrator, who must be an attorney duly admitted to practice in the State of California.  If the Executive and the TMP
cannot agree on an Arbitrator then the party requesting arbitration shall contact an appropriate organization, such as the American
Arbitration Association (“AAA”) for a list of five retired or former jurists with substantial professional experience
in employment matters and provide that list to the other party. The Arbitrator will be selected by each Party alternately (starting
with the party who did not provide the list) striking one name from the list.  The last name remaining on the list will be
the Arbitrator selected to resolve the dispute. This Agreement to arbitrate will be specifically enforceable.  Judgment upon
any award rendered by an Arbitrator may be entered in any court having jurisdiction thereof.

 

    	Page 12 of 17

    	 

    

 

A copy of California Code of Civil Procedure Section 1281.6
and the Rules of the AAA are attached hereto respectively as Attachments “A” and “B”.  The foregoing
described documents, including same as may be subsequently amended or revised, are incorporated herein by this reference as though
set forth in full.

 

(g)          Covered
Claims. The Claims covered include, but are not limited to such Claims for: wages or other compensation due; breach of any
contract or covenant, express or implied; tort claims; discrimination claims, including but not limited to discrimination (including
those claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000(e), et seq. or California Fair
Employment & Housing Act, as amended, Cal. Govt. Code § 12900, et seq.) based on race, sex, sexual orientation, religion,
national origin, age, marital status, handicap, disability or medical condition, harassment or retaliation on any of the foregoing
bases, benefits (except as excluded herein) and violations of any federal, state or other governmental constitution, statute, regulation,
or ordinance or public policy.  Both the TMP and the Executive shall be precluded from bringing or raising in court or another
forum any dispute that was or could have been submitted to binding arbitration. 

 

(h)          Excluded
Claims. The following are expressly excluded from these arbitration provisions and are not covered by this Agreement: (1) claims
related to workers' compensation or unemployment insurance benefits; and (2) claims that are prohibited from being arbitrated by
California or federal law including governing case law.

 

(i)          Additional
Proceedings Arbitrated. Executive may consult with or file a complaint with any appropriate state or federal agency, such as
the U.S. Equal Employment Opportunity Commission (EEOC), California Department of Fair Employment and Housing (DFEH).  However,
if Executive's Claim or complaint is not finally resolved by the government agency or the Executive is not satisfied with the results
of the government agency process, Executive agrees that any additional proceedings will be arbitrated pursuant to the provisions
of this paragraph 6 instead of going to trial.

 

(j)          Discovery.
The parties will be permitted to conduct discovery as provided by the California Code of Civil Procedure Section 1283.05.

 

(k)          Arbitration
Fees and Expenses.

 

(1)          Notwithstanding
the provisions of California Code of Civil Procedure §1284.2, Executive’s responsibility for payment of the Arbitrator’s
fees and expenses in connection with Claims to enforce statutory rights shall be limited to an amount equal to the filing fee to
file a Superior Court action, and TMP shall pay all remaining fees and costs of the Arbitrator.

 

(2)          With
respect to all other claims not arising from a state or federal statute, the parties shall each pay their pro rata share of the
Arbitrator’s expenses and fees, pursuant to California Code of Civil Procedure §1284.2, unless otherwise required by
California Code of Civil Procedure §1284.3 or other provisions of law.

 

(3)          Each
party shall pay for their own attorneys' fees, witness fees or other expenses or costs incurred.  However, the Arbitrator
may award costs and or attorneys' fees to the prevailing party to the extent permitted by law.  Any controversy regarding
the payment of fees and expenses shall be decided by the Arbitrator.

 

    	Page 13 of 17

    	 

    

 

(l)          Evidence
and Burden of Proof. The Arbitrator shall be the judge of the relevance and materiality of the evidence offered, in conformity
with the legal rules of evidence. The parties bear the same burdens of proof as if their claims had been brought in court.

 

(m)          Arbitrator
Authority. The Arbitrator will have no authority to extend, modify or suspend any of the terms of this Agreement.  The
Arbitrator within 30 days of the conclusion of the arbitration will make his or her award in writing and shall accompany it with
an opinion discussing the evidence and setting forth the reasons for his or her award.  The Arbitrator may award any form
of remedy or relief that would otherwise be available in court, consistent with applicable laws.  The Arbitrator will have
the authority to hear and grant motions.

 

(n)          Arbitrator
Decision. The decision of the Arbitrator within the scope of the submission will be final and binding on both parties and any
right to judicial action on any matter subject to arbitration hereunder hereby is waived, except suit to enforce this arbitration
award or in the event arbitration is not available for any reason.  Any suit must be brought in Sacramento County, California.

 

(o)          Injunctive
Relief. Either party may apply to the Arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy
is otherwise resolved.  Either party also may, without waiving any remedy under this agreement, seek from any court having
jurisdiction any interim or provisional remedies pursuant to California Code of Civil Procedure Section 1281.8 that is necessary
to protect the rights or property of that party, pending the establishment of the arbitral tribunal (or pending the arbitral tribunal's
determination of the merits of the controversy).

 

(p)          Confidentiality.
Neither the Executive, the TMP, nor the Arbitrator may disclose the existence, content or results of any arbitration under this
Arbitration section without the prior written consent of all those involved in the arbitration, except that disclosure may be made
in the following circumstances: (1) If required by law; (2) To each participant’s spouse, officers, insurers and legal and
tax advisors; or (3) In connection with an application made to a court to enforce, vacate or modify an Arbitrator’s award,
and in such circumstances, all pleadings briefs, memoranda and exhibits shall be filed under seal.

 

(q)          Application.
These provisions shall apply to any Claims involving TMP as well as TMP’s members and affiliated companies, successors and
assigns, officers, directors, employees, or agents in their capacity as such.

 

(r)          Survival.
The rights and obligations of Executive and TMP set forth in this Section on Arbitration shall survive the termination of Executive's
employment and the expiration of this Agreement.

 

(s)          Consideration
and Waivers. In consideration for and as a material condition of Executive's employment and continued employment with TMP,
TMP and Executive agree that to the fullest extent permitted by law, final and binding arbitration is the exclusive means for resolving
the claims outlined in this Agreement.  However, this Agreement does not in any way alter the at-will status of TMP's employment. 
TO THE MAXIMUM EXTENT PERMITTED BY LAW BOTH THE TMP AND EXECUTIVE EXPRESSLY WAIVE ALL RIGHTS TMP AND/OR EXECUTIVE MAY HAVE TO A
CIVIL COURT ACTION AND APPEAL ON ANY CLAIM INCLUDING DISCRIMINATION AND HARASSMENT CLAIMS ARISING OUT OF OR IN ANY WAY RELATED
TO EXECUTIVE’S EMPLOYMENT WITH THE TMP.  ONLY AN ARBITRATOR, NOT A JUDGE OR JURY, WILL DECIDE ANY SUCH CLAIM, ALTHOUGH
THE ARBITRATOR HAS THE AUTHORITY TO AWARD ANY TYPE OF RELIEF THAT COULD OTHERWISE BE AWARDED BY A JUDGE OR JURY.

 

    	Page 14 of 17

    	 

    

 

21.          GENERAL
PROVISIONS.

 

(a)          GOVERNING
LAW AND JURISDICTION. Contract Governed by Law of State of California. The parties agree that it is their intention and
covenant that this Agreement and performance under this Agreement and all suits and special proceedings under this Agreement be
construed in accordance with and under and pursuant to the laws of the State of California and that in any action, special proceeding,
or other proceeding that may be brought arising out of, in connection with, or by reason of this Agreement, the laws of the State
of California shall be applicable and shall govern without regard to any conflict of laws principles. Any and all claims of any
kind arising from or related in any manner to this Agreement shall be brought in Los Angeles County, California.

 

(b)          NOTICES.
All notices and other communications provided for or permitted hereunder shall be made by hand delivery, first class mail, telex,
or telecopier, addressed as follows:

 

	Party:	Address:
	TMP	
        Targeted Medical Pharma, Inc.

        2980 Beverly Glen Circle, Suite 301

        Los Angeles, California 90077

         

         

	
        Executive:

        WILLIAM B. HORNE
	
         

        800 Bienveneda Avenue

        Pacific Palisades, CA 90272

 

 

All such notices and communications shall
be deemed to have been duly given when delivered by hand, if personally delivered; when delivered per documentation of delivery,
if delivered by Federal Express, UPS or similar delivery service; three (3) business days after deposit in any United States Post
Office in the Continental United States, postage prepaid, if mailed; when answered back, if telefaxed; when receipt is acknowledged
or confirmed, if telecopied; upon receipt of notice of delivery or reply, if emailed.

 

(c)          COMPLETE
AGREEMENT. This Agreement supersedes any and all other agreements, either oral or in writing, between TMP and Executive with respect
to the subject matter hereof and contains all of the covenants and agreements between TMP and Executive with respect to such subject
matter in any manner whatsoever, except as such other agreements are explicitly referenced and affirmed herein. Each party to this
Agreement acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any party,
or anyone herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding.
This Agreement may be changed or amended only by an amendment in writing signed by both parties or their respective successors-in-interest,
if applicable.

 

    	Page 15 of 17

    	 

    

 

(d)          AUTHORITY.
Each of the parties hereby represents and warrants to the other that:

 

(1)          He
or it has the power and authority to enter into this Agreement, including, with respect to TMP, requisite approval of the Board
of Directors, and

 

(2)          The
execution, delivery and performance of this Agreement does not and will not violate the terms of any agreement or other instruments
to which he or it is a party or by which he or it is bound.

 

(e)          NUMBER
AND GENDER. Whenever the singular number is used in this Agreement and when required by context, the same shall include the plural,
and the masculine gender shall include the feminine and neuter genders and the word “person” shall include corporation,
firm partnership or other form of association.

 

(f)          FAILURE
TO OBJECT NOT A WAIVER. The failure of either party to this Agreement to object to or to take affirmative action with respect to
any conduct of the other which is in violation of the terms of this Agreement, shall not be construed as a waiver of the violation
or breach or of future violation, breach or wrongful conduct.

 

(g)          EXECUTION
IN COUNTERPARTS. This Agreement may be executed in several counterparts and when so executed shall constitute one agreement binding
on all the parties, notwithstanding that all the parties are not signatory to the original and same counterpart.

 

(h)          
FURTHER ASSURANCE. Each party shall execute and deliver such further instruments and shall take such other action as any other
party may reasonably request in order to discharge and perform their obligations and agreements hereunder and to give effect to
the intentions expressed in this Agreement.

 

(i)          SEVERABILITY.
If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain
in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall
nevertheless remain in full force and effect in all other circumstances.

 

    	Page 16 of 17

    	 

    

 

Executed by the parties as of the
day and year first above written.

 

	TMP:	 
	Dated:  August 15, 2013	
        TARGETED MEDICAL PHARMA, INC.

         

        By: /s/ Amir Blachman

        Its: VP, Secretary, CCO

         

         

	EMPLOYEE:	 
	Dated:  August 15, 2013	
        William B. Horne

         

        By: /s/ William B. Horne

 

    	Page 17 of 17Exhibit 10.1

 

 

FORM OF

 

SUBSCRIPTION AGREEMENT

 

This Subscription Agreement
(this “Agreement”), is dated as of August 19, 2013, between Samson Oil & Gas Limited, an Australian corporation
(the “Company”) and the Purchaser identified on the signature pages hereto (together with its successors and
assigns, “Purchaser”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an effective registration statement filed pursuant to the
Securities Act (as defined below), the Company desires to issue and sell to Purchaser, and Purchaser desires to purchase from the
Company, (i) Ordinary Shares (as defined below), and (ii) Warrants (as defined below), in each case as more fully described in
this Agreement.

 

NOW, THEREFORE, 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 Purchaser agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1Definitions.
In addition to the terms defined elsewhere in this Agreement the following terms have the meanings set forth in this Section
1.1:

 

“A$”
means Australian dollars.

 

“American
Depositary Shares” or “ADSs” shall mean the American Depositary Shares equivalent to twenty (20) of
the Company’s Ordinary Shares that are listed and trade on the NYSE MKT under the trading symbol “SSN”.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person (as such terms are used in and construed under Rule 405 of the Securities Act). With respect to Purchaser,
any investment fund or managed account that is managed on a discretionary basis by the same investment manager as Purchaser will
be deemed to be an Affiliate of Purchaser.

 

“Account
Agent” shall have the meaning ascribed to such term in Section 2.1 of this Agreement.

 

“Account
Agreement” shall have the meaning ascribed to such term in Section 2.1 of this Agreement.

 

“Closing”
means the closing of the Offering on the Closing Date pursuant to Section 2.1 of this Agreement.

 

    	1

    	 

    

 

“Closing
Date” means the date of this Agreement unless another date is mutually agreed to by the parties.

 

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

 

“Depositary”
shall have the meaning ascribed to such term in Section 2.2.

 

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

 

“Lien”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction (other than,
in the case of the Securities, restrictions provided in the Transaction Documents or as otherwise agreed or imposed by Purchaser).

 

“Material
Adverse Effect” means any material adverse effect on (a) the enforceability of any Transaction Document or (b) the Company’s
ability to perform in any material respect its obligations under any Transaction Document, other than any such effect that resulted
primarily from (i) any change in the United States or foreign economies or securities or financial markets in general, (ii) any
change that generally affects the oil and gas industry, or (iii) any change arising in connection with natural disasters, hostilities,
acts of war, sabotage or terrorism or military actions.

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(l) of this Agreement.

 

“Offering”
shall have the meaning ascribed to such term in Section 2.1 of this Agreement.

 

“Ordinary
Shares” means the Ordinary Shares of the Company, which trade on the ASX under the symbol “SSN”, and any
other class of securities into which such securities may hereafter be reclassified or changed.

 

“Ordinary
Share Equivalents” means any securities of the Company or the Subsidiaries that would entitle the holder thereof, pursuant
to the terms of such securities, to acquire at any time Ordinary Shares, including, without limitation, ADSs, any debt, preferred
stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or
otherwise entitles the holder thereof to receive, Ordinary Shares.

 

“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.

 

“Press
Release” shall have the meaning ascribed to such term in Section 4.4 of this Agreement.

 

“Proceeding”
means any civil or criminal action, claim, suit, arbitration, investigation or proceeding.

 

    	2

    	 

    

 

“Prospectus”
means the base prospectus filed with the Registration Statement.

 

“Prospectus
Supplement” means the prospectus supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is
filed and delivered by the Company to Purchaser prior to the execution and delivery of this Agreement, including the documents
incorporated by reference therein.

 

“Prospectus
Supplements” means the various prospectus supplements to the Prospectus complying with Rule 424(b) of the Securities
Act that have been filed with the Commission since the filing of the Company’s most recent Form 10-Q, including but not limited
to the Prospectus Supplement, and including the documents incorporated by reference in them.

 

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

 

“Registration
Statement” means the effective registration statement on Form S-3 (Commission File No. 333-183327) filed by the Company
with the Commission pursuant to the Securities Act for the registration of the Securities, as such Registration Statement may be
amended and supplemented from time to time (including pursuant to Rule 462(b) of the Securities Act), including all documents filed
as part thereof or incorporated by reference therein, and including all information deemed to be a part thereof at the time of
effectiveness pursuant to Rule 430B of the Securities Act.

 

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

 

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

 

“Securities”
means the Ordinary Shares, Warrants and the Warrant Shares and the ADSs for which the Ordinary Shares and the Warrant Shares may
be exchanged.

 

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

 

“Subscription
Amount” means the aggregate amount to be paid in immediately available funds for the Ordinary Shares purchased hereunder
as set forth on the Purchaser Signature Pages of this Agreement next to the heading “Subscription Amount.” The Subscription
Amount is defined in Australian dollars but may be paid in United States dollars (which will be converted to Australian dollars
per Section 2.2 of this Agreement).

 

“Subsidiary”
shall have the meaning ascribed to such term in Section 3.1(a) of this Agreement.

 

    	3

    	 

    

 

“Transaction
Documents” means this Agreement, including the terms and conditions of Warrants, and any other documents or agreements
executed and delivered to Purchaser in connection with the transactions contemplated hereunder.

 

“Unit”
means one Ordinary Share and forty hundredths (.40) of a Warrant.

 

“Unit
Purchase Price” equals A$0.025.

 

“Warrant
Exercise Price” equals A$0.038, subject to the terms and conditions of the Warrants attached hereto as Exhibit B.

 

“Warrants”
means the transferable options to purchase Ordinary Shares issued to Purchaser at the Closing in accordance with Section 2.1
of this Agreement, which Warrants shall have the terms and conditions as set forth in Exhibit B attached hereto.

 

“Warrant
Shares” means the Ordinary Shares issuable upon exercise of the Warrants.

 

ARTICLE
II

PURCHASE AND SALE

 

2.1Purchase
of Securities. At the Closing, upon the terms set forth herein, the Company shall sell, and Purchaser shall purchase the number
of Units set forth on the Purchaser Signature Pages hereof at the Unit Purchase Price by payment of the Subscription Amount (this
“Offering”). Purchaser shall deliver to the Person designated as the account agent (the “Account Agent”)
by the account agreement of even date herewith (the “Account Agreement”) via wire transfer immediately available
funds equal to the Subscription Amount and the Company shall issue to Purchaser its Ordinary Shares and Warrants and the other
items set forth in Section 2.3 of this Agreement deliverable at the Closing on the Closing Date. The Ordinary Shares and
Warrants will be issued in uncertificated form and will be registered in the name of Purchaser with the Company’s share registry,
Security Transfer Registrars, 770 Canning Highway, Applecross, Western Australia 6153, telephone +618 9315 2333. The Closing shall
occur at 4:30 p.m., Denver time, at the offices of Davis Graham & Stubbs LLP, 1550 17th St, Denver CO, 80202, or
such other time and location as the parties shall mutually agree.

 

2.2Exchange
of Ordinary Shares for ADSs; Escrow. Purchaser shall indicate on Exhibit A to this Agreement whether Purchaser wishes to receive
the Ordinary Shares included in the Units or exchange those Ordinary Shares, which are traded on the ASX, for ADSs, which are
traded on the NYSE MKT. Ordinary Shares purchased in this Offering by Purchasers who have so requested ADSs shall be delivered
on the Closing Date to the depositary for the ADSs, The Bank of New York Mellon (the “Depositary”), to be exchanged
for ADSs, and Purchaser will execute all documents required by the Depositary to effect such exchange. The Depositary is expected
to deliver ADSs to Purchaser through the Depositary Trust Corporation no later than three business days after the Closing Date.
Upon receipt of ADSs by Purchaser (or delivery of the Ordinary Shares if Purchaser elects to retain the Ordinary Shares), the
Account Agent shall release Purchaser’s funds to the Company. If payment is made in U.S. dollars instead of Australian dollars,
the currency conversion of U.S. dollars to Australian dollars shall be determined by the exchange rate set by the Reserve Bank
of Australia (http://www.rba.gov.au/statistics/frequency/exchange-rates.html) at 4:00
pm EST Australian time on the Closing Date. The Company will pay the ADS exchange fees charged by the Depositary for the exchange
of Purchaser’s Ordinary Shares at the time of this Offering. No fractional shares will be issued upon exchange of Ordinary
Shares for ADSs. The Warrants are exercisable only for Ordinary Shares, but the Warrant Shares received upon exercise of the Warrants
will be Ordinary Shares that may be exchanged for ADSs any time after exercise by delivery of the Warrant Shares received upon
such exercise to the Depositary along with payment by the holder of any ADS exchange fees charged by the Depositary at that time.

 

    	4

    	 

    

 

2.3Deliveries;
Closing Conditions.

 

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

 

(i)evidence
of the issuance of a number of Ordinary Shares equal to Purchaser’s Subscription Amount, registered in the name of Purchaser
(the “Purchase Shares”);

 

(ii)evidence
of the issuance of a Warrant registered in the name of Purchaser to purchase up to forty percent (40%) of the number of Ordinary
Shares purchased by Purchaser at Closing, at the Warrant Exercise Price of A$0.038;

 

(iii)the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act);

 

(iv)if
the Purchaser has elected to receive ADSs, evidence of (A) remittance of Purchaser’s Ordinary Shares to the Depositary and
(B) instructions to the Depositary to issue ADSs to Purchaser in an amount equal to one twentieth of the number of Ordinary Shares
purchased by Purchaser; and

 

(v)an executed
Account Agreement authorizing the Account Agent to release the Subscription Amount to the Company when evidence of the issuance
of the Ordinary Shares is delivered to Purchaser or, if Purchaser has elected to receive ADSs, evidence of the issuance of the
ADSs to Purchaser.

 

(b)At Closing, Purchaser
shall deliver or cause to be delivered to the Account Agent:

 

(i)the
Subscription Amount, payable in United States dollars or Australian dollars, by wire transfer to the account specified in the Account
Agreement; and

 

(ii) an
executed Account Agreement authorizing the Account Agent to to release the Subscription Amount to the Company when evidence of
the issuance of the Ordinary Shares is delivered to Purchaser or, if Purchaser has elected to receive ADSs, evidence of the issuance
of the ADSs to Purchaser.

 

    	5

    	 

    

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

3.1Representations
and Warranties of the Company. Except as set forth in the SEC Reports, which shall qualify any representation or warranty otherwise
made herein to the extent of such disclosure, the Company hereby makes the following representations and warranties set forth below
to Purchaser as of the date hereof:

 

(a)Subsidiaries.
All of the direct and indirect subsidiaries (each, a “Subsidiary”) of the Company are set forth on the Company’s
most recently filed Annual Report on Form 10-K.

 

(b)Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing (where such concept is recognized) under the laws of the jurisdiction of its incorporation or organization
(as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as
currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective
constitution, certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company
and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be, would not have or 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 except where the revocation, limitation or curtailment
could not have or reasonably be expected to result in a Material Adverse Effect.

 

(c)Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of each of the Transaction Documents to which it is a party by the Company and the consummation by it of the transactions contemplated
hereby have been duly authorized by all necessary corporate action on the part of the Company and no further corporate consent
or action is required to be obtained by the Company, its board of directors or its shareholders in connection therewith other than
the Required Approvals. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and,
when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company
enforceable against the Company in accordance with its terms except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally; (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies; (iii) insofar as indemnification and contribution provisions may be limited by applicable law and (iv) as limited through
the exercise of supervisory or enforcement powers of applicable government authorities.

 

    	6

    	 

    

 

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

 

(e)Filings, Consents
and Approvals. The Company will make all reasonable efforts to obtain all necessary consents, waivers, authorizations and orders,
and will give all notices to, and make all filings with, federal, state, local and other governmental authorities or other Persons,
including, without limitation, the ASX and the NYSE MKT, in connection with the execution, delivery and performance by the Company
of the Transaction Documents, including but not limited to the listing application with respect to the listing of the Ordinary
Shares and ADSs required pursuant to Section 4.8 (collectively, the “Required Approvals”).

 

(f)Issuance of
the Securities. The Ordinary Shares, the ADSs and the Warrants are duly authorized and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company. The Warrant Shares and the ADSs for which the Warrant Shares may be exchanged are duly authorized
and, when issued in accordance with the terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear
of all Liens imposed by the Company. The Ordinary Shares, ADSs, Warrant Shares and the ADSs for which the Warrant Shares may be
exchanged are being issued pursuant to the Registration Statement and their issuance has been registered by the Company pursuant
to the Securities Act.

 

(g)Capitalization.
All of the equity securities that have been issued by the Company since its most recently filed Form 10-Q have been disclosed in
the SEC Reports, other than issuances pursuant to the exercise of employee stock options pursuant to the Company’s stock
option plans, or pursuant to the conversion or exercise of Ordinary Share Equivalents outstanding as of the date of the most recently
filed periodic report pursuant to the Exchange Act.

 

    	7

    	 

    

 

(h)SEC Reports;
Financial Statements. The Company has complied in all material respects with requirements to file all reports, schedules, forms,
statements and other documents required to be filed by it pursuant to the Securities Act and the Exchange Act, including, without
limitation, pursuant to Section 13(a) or 15(d) of the Exchange Act, for the two years preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplements, being collectively
referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of
filing and has filed any such SEC Reports prior to the expiration of any such extension.

 

(i)Material Changes;
Undisclosed Events, Liabilities or Developments. Except as disclosed in the SEC Reports or in Company press releases, since
the date of the latest financial statements included within 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 (A) trade payables and accrued expenses and (B) liabilities not required to be
reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission,
(iii) the Company has not altered its method of accounting, and (iv) the Company has not issued any equity securities to any officer,
director or Affiliate except pursuant to existing Company equity incentive and incentive compensation plans.

 

(j)Litigation.
Except as disclosed in the SEC Reports, there is no Proceeding pending or, to the knowledge of the Company, threatened against
or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) is reasonably expected by
the Company to result in a Material Adverse Effect. Except as disclosed in the SEC Reports, neither the Company nor any Subsidiary,
nor any director or officer thereof, is or has been the subject of any Proceeding involving a claim of violation of or liability
under federal or state securities laws.

 

(k)Labor Relations.
No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company
which would reasonably be expected to result in a Material Adverse Effect.

 

(l)Regulatory
Permits. Except as disclosed in the SEC Reports, (i) the Company and the Subsidiaries possess all certificates, authorizations
and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective
businesses as described in the SEC Reports, except where the failure to possess such permits would not have or reasonably be expected
to result in a Material Adverse Effect (“Material Permits”), and (ii) neither the Company nor any Subsidiary
has received any notice of Proceedings relating to the revocation or modification of any Material Permit that would reasonably
be expected to result in a Material Adverse Effect.

 

(m)Title to Assets.
The Company and the Subsidiaries have good and marketable title to their oil and gas properties as disclosed in the SEC Reports
except to the extent that any defect in or limitations on such title would not reasonably be expected to result in a Material Adverse
Effect.

 

    	8

    	 

    

 

(n)Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged.

 

(o)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 this Offering except as follows:

 

Carter Terry & Company,
a broker-dealer registered with the Commission and the Financial Industry Regulatory Authority, Inc. (“FINRA”), will
receive a success fee equal to six percent (6%) of the equity capital raised from investors in this Offering who were first introduced
to the Company by Carter Terry. In addition, while Patersons Securities Limited of Melbourne, Victoria, Australia (“Patersons”),
will not receive any sales commission or other compensation on the sale of Units to U.S. persons in this Offering, if Patersons
sells Ordinary Shares and Warrants to non-U.S. persons in the concurrent offering being conducted by Patersons outside the U.S.
(the “Overseas Offering”) for an aggregate purchase price greater than the amount sold to U.S. persons in this Offering
and otherwise, then Patersons’ management fee for the Overseas Offering will be increased by an amount equal to one percent
(1%) of the amount sold in this Offering.

 

(p)Investment
Company. The Company is not, and immediately after receipt of payment for the Securities will not be, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

(q)Listing and
Maintenance Requirements. The ADSs are registered pursuant to Section 12(b) of the Exchange Act and are listed for trading
on the NYSE MKT. The Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating
the registration of the ADSs pursuant to the Exchange Act or their listing on the NYSE MKT. The Company has not received any notification
or information suggesting that the Commission is contemplating termination of its registration or that the NYSE MKT is contemplating
the termination of its listing.

 

(r)Disclosure.
Except with respect to the material terms and conditions of the Transaction Documents, the Company confirms that it has not provided
Purchaser with information that constitutes or might constitute, as of the Closing Date, material, non-public information which
is not otherwise disclosed in the Prospectus Supplements. The Company understands and confirms that Purchaser will rely on the
foregoing representation in effecting transactions in the Securities.

 

(s)Acknowledgment
Regarding Purchaser. The Company acknowledges and agrees that Purchaser is acting solely in the capacity of an arm’s
length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges
that Purchaser is not acting as a financial advisor to, or fiduciary of, the Company (or in any similar capacity) with respect
to the Transaction Documents and the transactions contemplated thereby and that any advice given by Purchaser or any of its representatives
or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to Purchaser’s
purchase of the Securities.

 

    	9

    	 

    

 

(t)Shell Company
Status. The Company is not, and has never been, an issuer identified in Rule 144(i)(1) of the Securities Act.

 

3.2Representations
and Warranties of the Purchaser. Purchaser hereby represents and warrants as of the execution and delivery of this Agreement
on the date first above written in this Agreement to the Company as follows:

 

(a)Prospectus,
Prospectus Supplement and SEC Reports. Purchaser (i) has received the Company’s Prospectus and Prospectus Supplement,
(ii) confirms that Purchaser had full access to the Prospectus, the Prospectus Supplement and the information incorporated by reference
therein and (iii) confirms that Purchaser was fully able to download, print, read and review such documents as well as all of the
other SEC Reports.

 

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

 

(c)No Intent to
Take Over. Purchaser has no present actual intent to seek to effect, or to assist others in effecting, a hostile acquisition
of the Company.

 

(d)Purchaser Status.

 

(i) Purchaser is it
is an “accredited investor” as defined in Rule 501 of Regulation D promulgated by the Commission under the Securities
Act;

 

(ii) Purchaser is a
“U.S. person”, as that term is defined in Rule 902(k) of Regulation S promulgated by the Commission under the Securities
Act.

 

(iii) Purchaser represents
that, except as set forth on the signature page, (i) Purchaser has had no position, office or other material relationship within
the past three years with the Company or persons known by Purchaser to be affiliates of the Company, (ii) Purchaser is not a FINRA
member or an Associated Person (as such term is defined under FINRA Membership and Registration Rules) as of the date hereof, and
(iii) neither Purchaser nor any group of investors (as identified in a public filing made with the Commission) of which Purchaser
is a member, acquired, or obtained the right to acquire, 20% or more of the Common Stock (or securities convertible or exercisable
for ordinary shares) or the voting power of the Company on a post-transaction basis.

 

    	10

    	 

    

 

(e)Experience
of Purchaser. Purchaser, either alone or together with Purchaser’s representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities. Purchaser has had access to such information as Purchaser deemed necessary in order to conduct any due diligence
Purchaser desired to do in connection with the purchase and sale of the Securities. Purchaser is able to bear the economic risk
of an investment in the Securities and is able to afford a complete loss of such investment. Purchaser understands that nothing
in the Agreement or any other materials presented to Purchaser in connection with the purchase and sale of the Securities constitutes
legal, tax or investment advice. Purchaser acknowledges that Purchaser must rely on legal, tax and investment advisors of Purchaser’s
own choosing in connection with its purchase of the Securities.

 

(f)No Government
Review. Purchaser understands that no U.S., Australian or other government or governmental agency has passed upon or made any
recommendation or endorsement of the Securities purchased hereunder.

 

(g)Beneficial
Ownership. The parties agree that it is their mutual intent that, immediately following Purchaser’s purchase of Securities
hereunder, Purchaser, together with its Affiliates, will not beneficially own more than 4.99% of the Company’s Ordinary Shares.
For purposes hereof, beneficial ownership and all determinations and calculations (including, without limitation, with respect
to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder.

 

(h)Non-U.S. Purchasers.
If Purchaser is, at the time of the purchase of the Securities or at any time thereafter, outside the United States, Purchaser
will comply with all applicable laws and regulations in each foreign jurisdiction in which Purchaser purchases, offers, sells or
delivers Securities or has in Purchaser’s possession or distributes any offering material relating to the Securities, in
all cases at Purchaser’s own expense.

 

(i)Non-Disclosure
and No Misuse. Purchaser represents that neither Purchaser nor any person acting on behalf of, or pursuant to any understanding
with or based upon any information received from, Purchaser has, directly or indirectly, as of the date of this Subscription Agreement,
engaged in any transactions in any of the Securities or violated its obligations of confidentiality with respect to the Offering
since the time that the Investor was first contacted by any person with respect to this Offering. Purchaser further covenants that
neither Purchaser nor any person acting on behalf of, or pursuant to any understanding with or based upon any information received
from, Purchaser will engage in any such transactions or violate such confidentiality obligations prior to the public disclosure
of this Offering by the Company.

 

    	11

    	 

    

 

ARTICLE
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1Warrant Shares.
When any Warrant is exercised, the Company will use its best efforts to have an effective registration statement to cover the issuance
of the Warrant Shares if and to the extent that such a registration statement is needed to cause the Warrant Shares issued pursuant
to any such exercise, including the ADSs for which such Warrant Shares may be exchanged, to be “free trading” shares
with no restrictions on resale and no restrictive legends on certificates, if any.

 

4.2SEC Reporting.
Until (i) Purchaser does not own Securities or (ii) the Warrants have expired, whichever first occurs, the Company covenants (a)
to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be
filed by the Company pursuant to the Exchange Act and (b) not to terminate its status as an issuer required to file reports pursuant
to the Exchange Act even if the Exchange Act or the rules and regulations thereunder would no longer require or otherwise permit
such termination, other than in connection with a merger, consolidation or other acquisition in which the Company is not the surviving
entity and in which provision is made by the surviving entity for preserving substantially identical rights of Warrant holders.

 

4.3 Further
Approvals. The Company agrees that, if and to the extent that any further approvals or filings are required to complete this
Offering or issue any of the Securities, it will take all steps necessary to make such filings or obtain such approvals immediately
upon notice thereof.

 

4.4Securities
Laws Disclosure; Publicity. The Company shall (a) issue a press release disclosing the material terms of the transactions contemplated
hereby immediately following the Closing Date (the “Press Release”), and (b) file a Current Report on Form 8-K
disclosing the material terms of the transactions contemplated hereby by the first business day following the Closing Date, which
filing will include the Press Release. From and after the issuance of the Press Release and the filing of the Form 8-K, the Company
acknowledges that Purchaser shall not be in possession of any material, non-public information received from the Company, any of
its Subsidiaries or any of their respective officers, directors or employees that is not disclosed in the Press Release.

 

4.5Use of Proceeds.
The primary purposes of this Offering are to provide additional funding for the Company to drill wells on the North Stockyard project
and for working capital.

 

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4.6Indemnification
of Purchaser. Subject to the provisions of this Section 4.6, the Company will indemnify and hold Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling Persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to any action instituted against Purchaser, or any of them or their respective
Affiliates, by any shareholder of the Company who is not an Affiliate of Purchaser or any governmental or regulatory agency, with
respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a material breach
of Purchaser’s representations, warranties or covenants of the Transaction Documents or any agreements or understandings
Purchaser may have with any such shareholder or any material violations by Purchaser of state or federal securities laws or any
conduct by Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought
against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall
promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its
own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel
in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of
such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing,
(ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action
there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of
the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and
expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement
(i) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed or (ii) to the extent, but only to the extent, that a loss, claim, damage or liability is attributable to any
Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party
in this Agreement or in the other Transaction Documents.

 

4.7Reservation
and Registration of Ordinary Shares. As of the date hereof, the Company has reserved and the Company shall continue to reserve
and keep available at all times, free of preemptive rights, a sufficient number of Ordinary Shares for the purpose of enabling
the Company to issue all of the Warrant Shares and the ADSs for which the Warrant Shares may be exchanged.

 

4.8Listing of
Shares. The Company hereby agrees to use commercially reasonable efforts to maintain the listing of the Ordinary Shares and
ADSs on the ASX and NYSE MKT, respectively, and the Company shall file the applications to list all of ADSs and the ADSs for which
the Warrant Shares may be exchanged on the NYSE MKT, no later than the date of their issuance. The Company further agrees that,
if the Company applies to have the Ordinary Shares or ADSs traded on any other stock exchange, it will include in such application
all of the Warrant Shares and any related ADSs and it will take such other action as is necessary to cause all of the Warrant Shares
and any related ADSs to be listed on such other stock exchange as promptly as possible.

 

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4.9Certain Transactions
and Confidentiality After the Date Hereof. Notwithstanding anything contained in this Agreement to the contrary, the Company
expressly acknowledges and agrees that Purchaser does not make any representation, warranty or covenant hereby that it will not
engage in effecting transactions in the Securities or any other securities of the Company after the time that the transactions
contemplated by this Agreement are publicly announced by the Press Release and the Form 8-K.

 

4.10Future Sales
of Securities. Purchaser will have no right of first refusal, right of participation or other rights with respect to any future
offers or sales of Ordinary Shares, ADSs or other securities by the Company. Purchaser further acknowledges that, following the
Offering, the Company may offer or sell other securities, including but not limited to the issuance or grant of (a) Ordinary Shares
or ADSs upon the exercise of currently outstanding warrants or options, (b) options or other securities under the Company’s
current or future incentive compensation plans, (c) bonds, debentures, long term promissory notes or other debt securities and
(d) options, warrants or other equity derivative securities to lenders providing debt financing to the Company.

 

4.11Terms and
Conditions of Warrants. The terms and conditions of the Warrants are set forth in Exhibit B. For the avoidance of doubt,
the terms and conditions of the Warrants are identical to the warrants issued in the rights offering to shareholders pursuant
to the prospectus supplement dated April 3, 2013 and filed with the SEC on April 4, 2013. http://www.sec.gov/Archives/edgar/data/1404079/000114420413020093/v340480_424b5.htm

 

ARTICLE
V

MISCELLANEOUS

 

5.1Fees and
Expenses. Each party shall pay the fees and expenses of its own advisors, accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.
Except as otherwise provided in this Agreement, Purchaser is solely responsible for payment of any transfer agent fees, Depositary
fees, stamp taxes and other taxes and duties levied for the issuance, delivery or transfer of any Securities to Purchaser.

 

5.2Entire Agreement.
The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with
respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such
subject matter, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3Notices.
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 or email at the facsimile number or the email address, respectively, set forth on the signature pages attached hereto
prior to 5:30 p.m. (Colorado 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 set forth on the signature pages attached hereto on a day that
is not a business day or later than 5:30 p.m. (Colorado time) on any business day, (c) the second business day following the date
of mailing, if sent by 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 set forth on the signature pages attached
hereto.

 

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

 

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

 

5.6Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
Purchaser (other than by merger). Purchaser may assign any or all of its rights under this Agreement to any Person to whom Purchaser
assigns or transfers any Securities; provided Purchaser provides prior written notice to the Company and such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to
“Purchaser.”

 

5.7No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth
in Section 4.7 of this Agreement.

 

5.8Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of Colorado, without regard to the principles of
conflicts of law thereof, provided, however, that the validity, enforcement and interpretation of the Warrants and the Ordinary
Shares and their issue shall be governed by Australian law. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced
exclusively in the state or federal courts sitting in the City and County of Denver, Colorado. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts in Denver, Colorado, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents). In any action or proceeding to enforce any provisions of the Transaction Documents, the prevailing
party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs
and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

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5.9Execution.
This Agreement may be executed in 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 each other party. If 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 with the same force and effect as if such facsimile or “.pdf” signature page were an
original thereof.

 

5.10Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect.

 

5.11Remedies.
In addition to all rights provided herein or granted by law, including recovery of damages, Purchaser and the Company will be entitled
to specific performance pursuant to the Transaction Documents. The parties agree that monetary damages may not be adequate compensation
for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and
not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

5.12Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto.

 

    	16

    	 

    

 

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

 

	 	 	 	 	 
	SAMSON OIL & GAS LIMITED	 	 	  	Address for Notice:
	 	 	 	 	 
	 	 	 
	
         
	 	 	  	
        Samson Oil & Gas Limited

        1331 17th Street, Suite 710

        Denver, CO 80202

        Attn: Chief Executive Officer

	Terence M. Barr, CEO	 	 	  
	 	 	 
	 	 	 	 	
        With a copy to (which shall not

        constitute notice):

	 	 	 
	 	 	 	  	
        Davis Graham & Stubbs LLP

        1550 17th Street # 500

        Denver, CO 80202

        Attn: S. Lee Terry, Jr.

 

 

 

 

 

 

 

 

 

 

 

 

[Company Signature Page – Subscription Agreement]

 

    	 

    	 

    

  

IN WITNESS WHEREOF,
the undersigned has caused this Subscription Agreement to be duly executed by its respective authorized signatory as of the date
first indicated above.

 

 

	 	 	 	 	 
	Name of Purchaser:	 	
         
	 	 

 

	Signature of Authorized Signatory of Purchaser:	 	
         
	 	 

 

	Name of Authorized Signatory:	 	
         
	 	 

 

	Title of Authorized Signatory:	 	
         
	 	 

 

	Email Address of Purchaser:	 	
         
	 	 

 

	Fax Number of Purchaser:	 	
         
	 	 

 

	Address of Purchaser for Notice:

 

	
         

	
         

	
         

 

	 	 	 	 	 	 	 
	Telephone:	 	
         
	 	 	 	 
	Facsimile:	 	
         
	 	 	 	 
	Attention:	 	
         
	 	 	 	 

 

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

	
         

	
         

 

	 	 	 	 	 	 	 
	Telephone:	 	
         
	 	 	 	 
	Facsimile:	 	
         
	 	 	 	 
	Attention:	 	
         
	 	 	 	 

 

	 
	Purchaser Address for Delivery of Securities (if different from Notice):

 

	
         

	
         

	
         

 

 

[Purchaser Signature Pages – Subscription Agreement]

 

    	 

    	 

    

 

	 	 	 	 	 	 	 
	Telephone:	 	
         
	 	 	 	 
	Facsimile:	 	
         
	 	 	 	 
	Attention:	 	
         
	 	 	 	 

 

 

 

	SS/EIN Number:  ____________________	 _	 	 
	 	 	 	 
	PURCHASE:	 	 	 
	 	 	 	 
	 	 	 	 

 

	Number of Units Purchased:	 	 	 	 

 

	consisting of 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Ordinary Shares: 	 	 	(	ADSs)

 

	and	 	 	 
	 	 	 	 
	Warrants:	 	 	 
	 	 	 	 
	for the	 	 	 
	 	 	 	 

 

	Subscription Amount:	AUS$	 	(US$	)
	 	 	 	(per Section 2.2)

 

 

 

 

 

 

[Purchaser Signature Pages – Subscription Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

ELECTION OF ORDINARY SHARES OR ADSs

 

 

 

Only one of the two boxes “Ordinary
Shares” or “ADSs” should be checked, as this Election will determine whether the Company delivers the Ordinary
Shares to the Purchaser or to the Depositary with directions to exchange for ADSs. If the Purchaser wishes to receive some Securities
as Ordinary Shares and some as ADSs, then the number of Ordinary Shares and ADSs should be filled in below. 

 

 

 

	Name of Purchaser	Ordinary Shares	ADSs
	 	 	 

 

 

 

 

Note: Warrants are denominated in Ordinary
Shares only and, upon exercise, holders of Warrants will receive only Ordinary Shares. Purchaser may then elect to retain the Ordinary
Shares or to exchange them for ADSs at Purchaser’s expense.

 

    	 

    	 

    

 

EXHIBIT B

 

TERMS AND CONDITIONS OF WARRANTS

 

 

 

	1.	Each Warrant entitles the holder to subscribe for and be allotted one ordinary share in the capital of the Company. The exercise price is Australian 3.8 cents per Warrant (the “Exercise Price”).

  

	2.	The Warrants are exercisable at any time prior to 5.00 pm (Perth time) on 31 March 2017 (the “Expiry Date”), by notice in writing to the Directors accompanied by payment of the Exercise Price.

 

	3.	The Warrants are transferable and an application will be made to the ASX for Official Quotation of the Warrants.

 

	4.	Shares will be allotted and issued pursuant to the exercise of Warrants not more than 10 business days after receipt of a properly executed notice of exercise and payment of the requisite application moneys.

 

	5.	Shares issued upon exercise of the Warrants will rank pari passu in all respects with Company’s fully paid ordinary shares. The Company will apply for Official Quotation by ASX of all shares issued upon the exercise of Warrants within 3 Business Days after the date of allotment of those shares.

 

	6.	There are no participating rights or entitlements inherent in the Warrants and holders will not be entitled to participate in new issues of capital offered or made to the Shareholders during the currency of the Warrants. However, the Company will send a notice to each optionholder at least 10 business days before the record date for any proposed issue of capital. This will give optionholders the opportunity to exercises their Warrants prior to the date for determining entitlements to participate in any such issue.

 

	7.	There are no rights to a change in the exercise price, or in the number of shares over which the Warrants can be exercised, in the event of a bonus issue by the Company prior to the exercise of any Warrants.

 

	8.	In the event of any reorganisation of the issued capital of the Company on or prior to the Expiry Date, the rights of an option holder will be changed to the extent necessary to comply with the applicable ASX Listing Rules at the time of the reorganisation.
	 	 
	9.	
        The Company will, at least 20 Business
Days before the Expiry Date, send notices to the optionholders stating the name of the optionholder, the number of Warrants held,
the exercise price, and the consequences of non-payment.

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