Document:

T-REX OIL, INC.

 

 STOCK OPTION PLAN

2014

 

(Formerly the Terex
Energy Corporation Stock Option Plan)

 

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SECTION 1: GENERAL PURPOSE
OF PLAN

The
name of this plan is the 2014 T-REX OIL, INC. STOCK OPTION AND AWARD PLAN (the
"Plan"). The purpose of the Plan is to enable T-REX OIL, INC., a
Colorado corporation (the "Company"), and any Parent or any
Subsidiary to obtain and retain the services of the types of Employees,
Consultants and Directors who will contribute to the Company's long range
success and to provide incentives which are linked directly to increases in
share value which will inure to the benefit of all stockholders of the Company.

SECTION 2: DEFINITIONS

 

For purposes of the Plan, the following terms shall be defined as set
forth below: 

 

    "Administrator" shall have the meaning as set forth in Section 3,
hereof. 

 

    "Board" means the Board of Directors of the Company.

 

    "Cause" means (i) failure by an Eligible
Person to substantially perform his or her duties and obligations to the Company (other than any such failure resulting from his or her incapacity
due to physical or mental illness); (ii) engaging in misconduct or a fiduciary
breach which is or potentially is materially injurious to the Company
or its stockholders; (iii) commission of a felony; (iv) the commission of a crime against
the Company which is or potentially is materially injurious to the Company;
or (v) as otherwise provided in the Stock Option Agreement
or Stock Purchase
Agreement. For purposes of this Plan,
the existence of Cause shall
be determined by the Administrator in its sole discretion.

    "Change in Control" shall mean:

        The consummation of a merger
or consolidation of the Company
with or into another entity or any other corporate reorganization, if more than 50% of the combined voting
power (which voting
power shall be calculated by assuming the conversion of all equity
securities convertible (immediately or at some future
time) into shares entitled
to vote, but not assuming
the exercise of any warrant or right to subscribe to or purchase
those shares) of the continuing or Surviving Entity's securities outstanding immediately after
such merger, consolidation or other reorganization is owned, directly
or indirectly, by persons who were not stockholders of the Company
immediately prior to such merger,
consolidation or other reorganization; provided, however,
that in making the determination of ownership
by the stockholders of the Company,
immediately after
the reorganization, equity
securities which persons
own immediately before
the reorganization as stockholders of another party to the transaction shall be disregarded; or

        The sale, transfer or other disposition of all or substantially all of the Company's
assets.

        A transaction shall not constitute
a Change in Control
if its sole purpose is to change the state of the Company's incorporation or to create
a holding company that will be owned in substantially the same proportions by the persons who held the Company's
securities immediately before
such transaction.

    "Code" means the Internal Revenue
Code of 1986, as amended
from time to time.

    "Committee" means a committee
of the Board designated by the Board to administer
the Plan.

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    "Company" means T-REX OIL, INC., a corporation organized under the laws of the State of Colorado (or any successor corporation).

    "Consultant" means a consultant or advisor who is a natural
person or a legal entity and who provides
bona fide services
to the Company, a Parent
or a Subsidiary; provided such services are not
in connection with the
offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote
or maintain a market for the Company's
securities.

 

    "Date of Grant" means the date on which the Administrator adopts a resolution expressly granting a Right to a Participant or, if a different date
is set forth in such resolution as
the Date of Grant, then such date as is set forth in such resolution.

 

    "Director" means a member of the Board.

 

    "Disability" means that the Optionee
is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment; provided,
however, for purposes
of determining the term of an ISO pursuant to Section 6.6 hereof, the term Disability shall have the meaning ascribed to it under Code Section
22(e)(3). The determination of whether an individual has a Disability
shall be determined under procedures established by the Plan Administrator.

 

    "Eligible Person" means an Employee, Consultant or Director of the Company,
any Parent or any Subsidiary.

 

    "Employee" shall mean any individual who is a common-law employee (including
officers) of the Company, a Parent or a Subsidiary.

 

    "Exercise Price" shall have the meaning set forth in Section
6.3 hereof. "Exchange Act" means the Securities Exchange Act of 1934, as amended.

 

    "Fair Market Value" shall mean the fair market value of a Share, determined as follows:

 

    (i)                 
if the Stock is listed on any established stock exchange or a national
market system, including without
limitation, the NASDAQ National
Market, the Fair Market Value of a share of Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted
on such system or exchange (or the exchange
with the greatest volume of trading in the Stock) on the last market trading day prior to the day of determination, as reported in the Wall Street Journal or such other source as the Administrator deems reliable;

    (ii)               
if the Stock is quoted on the NASDAQ
System (but not on the NASDAQ National
Market) or any similar
system whereby the stock is regularly quoted by a recognized
securities dealer but closing sale
prices are not reported, the Fair Market Value of a share of Stock shall be the mean between the bid and asked
prices for the Stock on the last market trading
day prior to the day of determination, as reported in the Wall Street Journal or such other source as the Administrator deems reliable;
or

    (iii)              
the absence of an established market
for the Stock,
the Fair Market
Value shall be determined in good faith by the Administrator and such determination shall be conclusive and binding
on all persons.

 

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    "First Refusal
Right" shall have the meaning
set forth in Section 8.7 hereof.

 

    "ISO" means a Stock Option intended
to qualify as an "incentive stock option" as that term is defined
in Section 422(b) of the Code.

 

    "Non-Employee Director" means a member of the Board who is not an Employee
of the Company, a Parent or Subsidiary, who satisfies the requirements of such term as defined in Rule 16b-3(b)(3)(i) promulgated by the Securities and Exchange Commission.

 

    "Non-Qualified Stock Option" means a Stock Option not described
in Section 422(b) of the Code.

 

    "Offeree" means
a Participant who is granted a Purchase Right
pursuant to the Plan. "Optionee" means a Participant who is granted
a Stock Option pursuant
to the Plan.

 

    "Outside Director" means 
a member of  the Board  who  is not an 
Employee  of the Company, a Parent or Subsidiary, who satisfies the requirements of such term as defined
in Treasury Regulations (26 Code of Federal
Regulation Section
1.162-27(e)(3)).

 

    "Parent" means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company, if each of the corporations other than the Company
owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption
of the Plan shall be considered a Parent commencing as of such date.

 

    "Participant" means any Eligible Person
selected by the Administrator, pursuant to the Administrator's authority in Section
3, to receive grants of Rights.

 

    "Plan" means this 2014 T-REX OIL, INC. STOCK OPTION
AND AWARD PLAN, as the same may be amended or supplemented from time to time. 

 

   
"Purchase Price" shall have the meaning set forth in Section 7.3.

 

    "Purchase Right" means the right to
purchase Stock granted pursuant to Section 7.

 

    "Rights" means Stock Options and
Purchase Rights.

 

    "Repurchase Right" shall have the meaning
set forth in Section 8.8 of the Plan. "Service" shall mean service
as an Employee, Director or Consultant.

 

    "Stock" means Common Stock of the Company.

 

    "Stock Option" or "Option" means an option to purchase
shares of Stock
granted pursuant to Section 6.

 

    "Stock Option Agreement" shall have the
meaning set forth in Section 6.1.

 

    "Stock Purchase Agreement" shall have
the meaning set forth in Section 7.1.

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    "Subsidiary" means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status
of a Subsidiary on a date after the adoption
of the Plan shall be considered a Subsidiary commencing as of such date.

 

    "Surviving Entity" means the Company
if immediately following any merger, consolidation or similar transaction, the holders of outstanding voting securities of the Company immediately prior to the merger or consolidation own equity securities possessing more than 50% of the voting
power of the corporation existing following
the merger, consolidation or similar
transaction. In all other cases,
the other entity to
the transaction and not the
Company shall be the Surviving Entity. In making
the determination of ownership by the stockholders of an entity immediately after the merger,
consolidation or similar transaction, equity securities which the stockholders owned immediately before the merger, consolidation or similar transaction as stockholders of another party to the transaction shall be disregarded. Further, outstanding voting securities of an entity shall be calculated by assuming the conversion of all equity securities convertible (immediately or at some future time) into shares entitled
to vote.

 

    "Ten Percent Stockholder" means a person
who on the Date of Grant owns, either directly
or through attribution as provided
in Section 424 of the Code, Stock constituting more than 10% of the total combined
voting power of all classes
of stock of his or her employer corporation or of any Parent or Subsidiary.

SECTION 3: ADMINISTRATION

3.1     
Administrator. The Plan shall be administered by either (i) the Board, or (ii) a Committee
appointed by the Board (the group that administers the Plan is referred to as the "Administrator").

 

3.2    Powers in General. The Administrator shall have the power and authority
to grant to Eligible
Persons, pursuant to the terms of the Plan, (i) Stock Options, (ii) Purchase Rights or (iii) any combination of the foregoing.

 

3.3     
Specific Powers. In particular, the Administrator shall have the authority: (i)
to construe and interpret the Plan and apply its provisions; (ii) to promulgate,
amend and rescind rules and regulations relating to the administration of the
Plan; (iii) to authorize any person to execute, on behalf of the Company, any
instrument required to carry out the purposes of the Plan; to determine when
Rights are to be granted under the Plan; (v) from time to time to select,
subject to the limitations set forth in this Plan, those Eligible Persons to
whom Rights shall be granted; (vi) to determine the number of shares of Stock to
be made subject to each Right; (vii) to determine whether each Stock Option is
to be an ISO or a Non-Qualified Stock Option; (viii) to prescribe the terms and
conditions of each Stock Option and Purchase Right, including, without
limitation, the Purchase Price and medium of payment, vesting provisions and
repurchase provisions, and to specify the provisions of the Stock Option
Agreement or Stock Purchase Agreement relating to such grant or sale; (ix) to
amend any outstanding Rights for the purpose of modifying the time or manner of
vesting, the Purchase Price or Exercise Price, as the case may be, subject to
applicable legal restrictions and to the consent of the other party to such
agreement; (x) to determine the duration and purpose of leaves of absences which
may be granted to a Participant without constituting termination of their
employment for purposes of the Plan; (xi) to make decisions with respect to
outstanding Stock Options that may become necessary 

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upon a change in
corporate control or an event that triggers anti-dilution adjustments; and (xii)
to make any and all other determinations which it determines to be necessary or
advisable for administration of the Plan.

 

3.4    Decisions Final. All decisions
made by the Administrator pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants.

 

3.5     The Committee. The Board may, in its sole and absolute discretion, from time to time,
and at any period of time during
which the Company's Stock is registered pursuant to Section
12 of the Exchange Act, delegate any or all of its duties and authority
with respect to the Plan to the Committee whose members are to be appointed
by and to serve at the pleasure
of the Board. From time to time, the Board may increase
or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee.
The Committee shall act pursuant to a vote of the majority
of its members or, in the case of a committee
comprised of only two members, the unanimous
consent of its members,
whether present or not, or by the unanimous
written consent of the majority
of its members and minutes shall be kept of all of its meetings
and copies thereof
shall be provided to the Board. Subject
to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable. During any period of time during
which the Company's Stock is registered pursuant to Section 12 of the Exchange  Act,  all members
of the Committee shall be Non-Employee Directors and Outside
Directors.

 

3.6    Indemnification. In addition
to such other rights of indemnification as they may have as Directors or members
of the Committee, and to the extent
allowed by applicable law, the Administrator and each of the Administrator's consultants shall be indemnified by the Company against
the reasonable expenses, including attorney's fees, actually incurred
in connection with any action, suit or proceeding or in connection with any appeal
therein, to which the Administrator or any of its consultants may be party by reason of any action taken or failure
to act under or in connection with the Plan or any option granted
under the Plan, and against all amounts
paid by the Administrator or any of its consultants in settlement thereof (provided that the settlement has been approved by the Company,
which approval shall not be unreasonably withheld)
or paid by the Administrator or any of its consultants in satisfaction of a judgment in any such action,
suit or proceeding, except in relation
to matters as to which it shall be adjudged in such action,
suit or proceeding that such Administrator or any of its consultants did not act in good faith and in a manner which such person reasonably believed to be in the best interests of the Company, or was grossly
negligent, and in the case of a criminal proceeding, had no reason
to believe that the conduct
complained of was unlawful;
provided, however,
that within 60 days after institution of any such action, suit or proceeding, such Administrator or any of its consultants shall, in writing,
offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

SECTION 4: STOCK SUBJECT
TO THE PLAN

4.1     Stock Subject to the Plan.
Subject to adjustment as provided
in Section 9, Five Million
(2,000,000) shares of Common Stock shall available
for issuance under the Plan. Stock reserved
hereunder may consist, in whole or in part, of authorized and unissued shares
or treasury shares.

 

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4.2    Basic Limitation. The number of
shares that are subject to Rights
under the Plan shall not exceed
the number of shares
that then remain
available for issuance
under the Plan. The Company,
during the term of the Plan, shall at all times reserve and keep available a sufficient
number of shares to satisfy the requirements of the Plan.

4.3     Additional Shares. In the event that any outstanding Option
or other right for any reason expires
or is canceled or otherwise
terminated, the shares allocable to the unexercised portion of such Option or other right shall again be available for the purposes
of the Plan. In the event
that shares issued under the Plan are reacquired by the Company pursuant
to the terms of any forfeiture provision, right of repurchase or right of first refusal,
such shares shall again be available for the purposes
of the Plan.

SECTION 5: ELIGIBILITY

Eligible Persons who are selected
by the Administrator shall
be eligible to be granted
Rights hereunder subject
to limitations set forth in this Plan; provided, however, that only Employees shall be eligible
to be granted ISOs hereunder.

SECTION 6: TERMS AND CONDITIONS OF OPTIONS.

6.1    Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced
by a Stock Option Agreement between
the Optionee and the Company. Such Option shall be subject
to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which
are not inconsistent with the Plan and which
the Administrator deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various
Stock Option Agreements entered into under the Plan need not be identical.

6.2    Number of Shares. Each Stock Option Agreement shall specify the number of shares of Stock that are subject to the Option and shall provide for the adjustment of such number
in accordance with Section 9, hereof. The Stock Option Agreement
shall also specify whether the Option is an ISO or a Non-Qualified Stock
Option.

6.3    Exercise Price.

6.3.1     
In General. Each Stock Option
Agreement shall state the price at which shares
subject to the Stock Option may be purchased
(the "Exercise Price"), which shall, with respect to Incentive Stock Options, be not less than 100% of the Fair Market Value of the Stock
on the Date of Grant.
In the case of Non-Qualified Stock Options, the Exercise Price shall be determined in the sole discretion of the Administrator.

6.3.2      
Payment. The Exercise Price  shall be payable  in a form 
described in Section 8 hereof.

6.4    Withholding Taxes. As a condition to the exercise of an Option, the Optionee
shall make such arrangements as the Board may require
for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise or
with the disposition of shares acquired
by exercising an Option.

6.5    Exercisability. Each Stock Option Agreement
shall specify the date when all or any installment of the Option becomes exercisable. In the case of an Optionee who is not an officer
of the Company, a Director
or a Consultant, an Option
shall become exercisable at a rate of no more

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than 25% per year over
a four-year period commencing on January 1 following the Date of Grant and 25% each year thereafter on January 1. Subject
to the preceding sentence, the exercise provisions of any Stock Option Agreement shall be determined by the Administrator, in its sole discretion.

 

6.6    Term. The Stock Option Agreement shall specify the term of the Option. No Option shall be exercised after the expiration of ten years after the date the Option is granted. Unless
otherwise provided in the Stock Option Agreement, no Option may be exercised (i) three months after the date the Optionee's Service with the Company,
its Parent or its
Subsidiaries terminates if such termination is for any reason other than death, Disability or Cause, (ii) one year after the date the Optionee's Service with the Company,
its Parent or its subsidiaries terminates if such termination is a result
of death or Disability, and (iii) if the Optionee's Service
with the Company, its Parent, or its Subsidiaries terminates for Cause,
all outstanding Options granted
to such Optionee shall expire as of the commencement of business on the date of such termination. The Administrator may, in its sole discretion, waive the accelerated expiration provided for in (i) or (ii). Outstanding Options that are not exercisable at the time of termination of employment for any reason
shall expire at the close of business on the date of such termination.

 

6.7     Leaves of Absence. For purposes of Section 6.6 above, to the extent required
by applicable law, Service shall be deemed to continue while the Optionee is on a bona
fide leave of absence. To the extent
applicable law does not require such a leave to be deemed
to continue while the Optionee is on a bona fide leave of absence, such leave shall be deemed to continue
if, and only if, expressly provided in writing by the Administrator or a duly authorized officer of the Company, Parent, or Subsidiary for whom Optionee
provides his or her services.

 

6.8     Modification, Extension and Assumption of Options. Within the limitations of the Plan, the Administrator may modify,
extend or assume outstanding Options (whether granted
by the Company or another issuer) or may accept the cancellation of outstanding Options (whether granted
by the Company or another issuer)
in return for the grant of new Options for the same or a different number of shares and at the same or a different
Exercise Price. Without limiting
the foregoing, the Administrator may amend a previously granted
Option to fully accelerate the exercise schedule
of such Option
and provide that upon
the exercise of such Option,
the Optionee shall receive
shares of Restricted Stock that are subject
to repurchase by the Company at the Exercise Price paid for the Option in accordance with Section 8.8.1
with such Company's right to repurchase at such price lapsing at the same
rate as the exercise provisions
set forth in Optionee's Stock
Option Agreement. The foregoing
notwithstanding, no modification of an Option shall, without
the consent of the Optionee,
impair the Optionee's rights or increase
the Optionee's obligations under such Option.
However, a termination of the Option
in which the Optionee
receives a cash payment equal to the difference
between the Fair Market Value and the Exercise Price for all shares subject
to exercise under any outstanding Option
shall not be deemed to impair any rights of the Optionee or increase
the Optionee's obligations under such Option.

SECTION 7: TERMS AND CONDITIONS OF AWARDS OR SALES

7.1    Stock Purchase
Agreement. Each award or sale of shares under the Plan (other than upon exercise
of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and the Company. Such award or sale shall be subject
to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board deems appropriate for inclusion in a Stock
Purchase Agreement. The provisions of the various
Stock Purchase Agreements entered
into under the Plan need not be identical.

 

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7.2    Duration
of Offers. Unless otherwise provided
in the Stock Purchase Agreement,
any right to acquire shares
under the Plan (other than an Option)
shall automatically expire if not exercised
by the Purchaser within 15 days after the grant of such right was communicated to the Purchaser
by the Company.

7.3    Purchase Price.

7.3.1     In General. Each Stock Purchase Agreement
shall state the price at which
the Stock subject to such Stock Purchase
Agreement may be purchased (the "Purchase Price"), which, with respect
to Stock Purchase Rights,
shall be determined in the sole discretion of the Administrator.

7.3.2     Payment of Purchase
Price. The Purchase
Price shall be payable
in a form described in Section 8.

 

7.4     Withholding Taxes.
As a condition to the purchase of shares, the Purchaser shall make such arrangements as the Board may require for the satisfaction of any federal,
state, local or foreign withholding tax obligations that may arise in connection with such purchase.

SECTION 8: PAYMENT; RESTRICTIONS

8.1    General Rule. The entire Purchase Price or Exercise
Price of shares issued under the Plan shall be payable in full by, as applicable, cash or certified
check for an amount equal to the aggregate Purchase Price or Exercise Price for the number of shares being purchased,
or in the discretion of the Administrator, upon such terms
as the Administrator shall
approve, (i) in the case of an Option and provided
the Company's stock is publicly
traded, by a copy of instructions to a broker directing such broker to sell the Stock for which such Option is exercised, and to remit to the Company the aggregate Exercise
Price of such Options (a "cashless exercise"), (ii) in the case of an Option or a sale of Stock, by paying all or a portion of the Exercise Price or Purchase
Price for the number of shares being purchased
by tendering Stock owned by the Optionee, duly endorsed
for transfer to the Company, with a Fair Market Value on the date of delivery
equal to the aggregate
Purchase Price of the Stock with respect to which such Option or portion thereof is thereby
exercised or Stock
acquired (a "stock-for-stock exercise") or (iii) by a stock-for-stock exercise by means of attestation whereby the Optionee
identifies for delivery specific shares of Stock already owned by Optionee and receives a number of shares of Stock
equal to the difference between
the Option shares
thereby exercised
and the identified attestation shares
of Stock (an "attestation exercise").

 

8.2    Withholding Payment. The Purchase Price or
Exercise Price shall include payment of the amount
of all federal, state, local or other income, excise or employment taxes
subject to withholding (if any) by the Company
or any parent
or subsidiary corporation as a result of the exercise of a Stock Option. The Optionee may pay all or a portion of the tax withholding by cash or check payable to the Company,
or, at the discretion of the Administrator, upon such terms as the Administrator shall
approve, by (i) cashless exercise
or attestation exercise; (ii) stock-for- stock exercise; (iii) in the case of an Option,
by paying all or a portion
of the tax withholding for the number of shares being purchased by withholding shares from any transfer or payment
to the Optionee ("Stock withholding"); or (iv) a combination of one or more of the foregoing payment methods.
Any shares issued
pursuant to the exercise of an Option and transferred by the Optionee to the Company for the purpose of satisfying any withholding obligation shall not again be available for purposes of the Plan. The Fair Market Value of the number of shares subject to

 

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Stock withholding shall not exceed an amount
equal to the applicable minimum required
tax withholding rates.

 

8.3     Services Rendered.
At the discretion of the Administrator, shares
may be awarded under the Plan in consideration of services rendered to the Company,
a Parent or a Subsidiary prior to the award.

 

8.4     Promissory Note. To the extent that a Stock Option Agreement or Stock Purchase
Agreement so provides, in the discretion of the Administrator, upon such terms as the Administrator shall approve, all or a portion of the Exercise
Price or Purchase
Price (as the case may be) of shares issued
under the Plan may be paid with a full-recourse promissory note. However,
in the event there is a
stated par value of the shares
and applicable law requires, the par
value of the shares, if newly issued, shall be paid in cash or cash equivalents. The shares shall be pledged
as security for payment
of the principal amount of the promissory note and interest thereon,
and held in the possession of the Company until
said amounts are repaid
in full. The interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required
to avoid the imputation of additional interest under the Code. Subject to the foregoing, the Administrator (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other provisions of such note. Unless the Administrator determines otherwise,
shares of Stock having a Fair Market Value at least equal to the principal amount of the loan shall be pledged by the holder to the Company as security for payment of the unpaid balance of the loan and such pledge shall be evidenced by a pledge agreement, the terms of which
shall be determined by the Administrator, in its discretion;
provided, however, that each loan shall comply with all applicable laws,
regulations and rules of the
Board of Governors of the
Federal Reserve System
and any other governmental agency having
jurisdiction.

 

8.5     Exercise/Pledge. To the extent that a Stock Option
Agreement or Stock Purchase Agreement so allows and if Stock is publicly
traded, in the discretion of the Administrator, upon such terms as the Administrator shall approve, payment may be made all or in part by the delivery
(on a form prescribed by the Administrator) of an irrevocable direction to pledge
shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.

 

8.6     Written Notice.
The purchaser shall deliver a written notice to the Administrator requesting that the Company direct the transfer agent to issue to the purchaser (or to his designee) a certificate for the number of shares of Common Stock being exercised or purchased or, in the case of a cashless exercise or share withholding exercise, for any shares that were not sold in the cashless exercise
or withheld.

 

8.7     First Refusal
Right. Each Stock
Option Agreement and Stock
Purchase Agreement
may provide that the Company shall
have the right
of first refusal
(the "First Refusal
Right"), exercisable in connection with any proposed sale, hypothecation or other disposition of the Stock purchased by the Optionee or Offeree pursuant to a Stock Option Agreement or Stock Purchase
Agreement; and in the event the holder
of such Stock desires
to accept a bona fide third-party offer for any or all of such Stock, the Stock shall first be offered to the Company upon the same terms and conditions as are set forth in the bona fide offer.

 

8.8      
Repurchase Rights. Following a termination of the Participant's Service, the Company may repurchase the Participant's Rights
as provided in this Section
8.8 (the "Repurchase Right").

 

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8.8.1     Repurchase Price. Following a termination of the Participant's Service the Repurchase Right shall be exercisable at a price equal to (i) the Fair Market Value of vested Stock or, in the case of exercisable options,
the Fair Market Value of the Stock underlying such unexercised options less the Exercise Price, or (ii) the Purchase Price or Exercise
Price, as the case may be, of unvested Stock; provided, however, the right to repurchase unvested stock as described
in Section 8.8.1(ii)
shall lapse at a rate of at least 33.33% per year over three years from the date the Right is granted.

8.8.2     Exercise of Repurchase Right. A Repurchase Right may be exercised
only within 90 days after the termination of the Participant's Service (or in the case of Stock issued upon exercise of an Option or after
the date of termination or the purchase
of Stock under a Stock Purchase
Agreement after the date of termination, within
90 days after the date of the exercise
or Stock purchase,
whichever is applicable) for cash or for
cancellation of indebtedness incurred in purchasing the shares.

 

8.9    Termination of Repurchase and First Refusal Rights. Each Stock Option Agreement
and Stock Purchase Agreement shall provide that the Repurchase Rights and
First Refusal Rights shall have no effect
with respect to, or shall
lapse and cease
to have effect
when the issuer's
securities become publicly traded
or a determination is made by counsel
for the Company that such Repurchase Rights and First Refusal Rights
are not permitted
under applicable federal
or state securities laws.

 

8.10     No Transferability. Except as provided herein, a Participant may not assign, sell or transfer
Rights, in whole or in part, other than
by testament or by operation of the laws of descent and distribution.

 

8.10.1    
Permitted Transfer
of Non-Qualified Option.
The Administrator, in its sole discretion may permit the transfer of a Non-Qualified Option (but not an ISO or Stock Purchase Right) as
follows: (i) by gift to a member
of the Participant's immediate family,
or (ii) by transfer
by instrument to a trust providing
that the Option is to be passed
to beneficiaries upon death of
the Settlor (either or both (i) or (ii) referred to as a "Permitted Transferee"). For purposes
of this Section
8.10.1, "immediate family" shall mean the Optionee's spouse
(including a former spouse
subject to terms of a domestic relations
order); child, stepchild,
grandchild, child-in-law; parent, stepparent, grandparent, parent-
in-law; sibling and sibling-in-law, and shall include adoptive
relationships.

            8.10.2      Conditions of Permitted
Transfer. A transfer permitted under this Section 8.10 hereof
may be made only upon written notice
to and approval thereof by Administrator. A Permitted Transferee may not further assign, sell or transfer the transferred Option,
in whole or in part, other than by testament or by operation
of the laws of descent
and distribution. A Permitted
Transferee shall agree in writing
to be bound by the provisions of this Plan, which a copy
of said agreement shall be provided to the Administrator for approval prior to the transfer.

SECTION 9: ADJUSTMENTS; MARKET STAND-OFF

9.1    Effect of Certain Changes.

9.1.1      
Stock Dividends, Splits,
Etc. If there is any change in the number of outstanding shares of Stock by reason of a stock split, reverse stock split, stock dividend,
recapitalization, combination or reclassification, then (i) the number of shares
of Stock

 

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available for Rights, (ii) the number of shares
of Stock covered
by outstanding Rights,
and (iii) the Exercise Price or Purchase
Price of any Stock Option or Purchase Right, in effect prior to such change, shall be proportionately adjusted
by the Administrator to reflect any increase or decrease in the number of issued shares
of Stock; provided,
however, that any fractional shares
resulting from the adjustment shall be eliminated.

 

9.1.2      
Liquidation, Dissolution, Merger or Consolidation. In the event of a dissolution or liquidation of the Company,
or  any corporate
separation  or division, including, but not limited to, a split-up,
a split-off or a spin-off, or a sale of substantially all of the assets of the Company; a merger or consolidation in which the Company is not the Surviving
Entity; or a reverse
merger in which the Company
is the Surviving
Entity, but the shares of Company
stock outstanding immediately preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise, then, the Company,
to the extent permitted
by applicable law, but otherwise
in its sole discretion may provide for: (i) the continuation of outstanding Rights by the Company (if the Company is the Surviving Entity); (ii) the assumption of the Plan and such outstanding Rights by the Surviving Entity or its parent; (iii) the substitution
by the Surviving Entity or its parent
of Rights with substantially the same terms for such outstanding Rights; or (iv) the cancellation of such outstanding Rights without payment of any consideration, provided that if such Rights would be canceled in accordance with the foregoing,
the Participant shall have the right, exercisable during the later of the ten- day period ending on the fifth day prior to such merger or consolidation or ten days after the Administrator provides the Rights holder
a notice of cancellation, to exercise such Rights in whole or in part without regard
to any installment exercise provisions in the Rights
agreement.

 

9.1.3     Par Value Changes. In the event of a change in the Stock of the Company as presently constituted which is limited to a change of all of its authorized shares with par value, into the same number
of shares without par value, or a change
in the par value, the shares resulting from any such change shall be "Stock" within the meaning
of the Plan.

 

9.2    Decision of Administrator Final. To the extent that the foregoing adjustments relate to stock or securities of the Company,
such adjustments shall be made by the Administrator, whose determination in that respect shall be final, binding
and conclusive; provided, however,
that each ISO granted pursuant
to the Plan shall not be adjusted
in a manner that causes such Stock Option
to fail to continue
to qualify as an ISO without the prior consent of the Optionee
thereof.

 

9.3     No Other
Rights. Except as hereinbefore expressly
provided in this Section
9, no Participant shall have any rights by reason of any subdivision or consolidation of shares of Company
stock or the payment of any dividend or any other increase or decrease in the number of shares of Company stock of any class or by reason of any of the events described
in Section 9.1, above,
or any other issue by the Company of shares of stock of any class,
or securities convertible into shares of stock of any class;
and, except as provided
in this Section
9, none of the foregoing
events shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Stock subject
to Rights. The grant of a Right pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structures
or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or part of its business or assets.

 

-12-

9.4     Market Stand-Off. Each Stock Option Agreement and Stock Purchase
Agreement shall provide that, in connection with any underwritten public offering
by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, including the Company's
initial public offering, the Participant shall agree not to sell, make any short sale of, loan, hypothecate, pledge, grant any option for the repurchase of, or otherwise
dispose or transfer
for value or otherwise agree to engage in any of the foregoing transactions with respect to any Stock without the prior written
consent of the Company
or its underwriters, for such period of time from and after the effective date of such registration statement
as may be requested
by the Company
or such underwriters (the "Market Stand-Off").

 

SECTION 10: AMENDMENT AND TERMINATION

 

The Board may amend, suspend or terminate the Plan at any time and for any reason. At the time of such amendment, the Board shall determine, upon advice from counsel, whether such amendment
will be contingent on stockholder approval.

 

SECTION 11: GENERAL PROVISIONS

 

11.1    General Restrictions.

11.1.1       
No View to Distribute. The Administrator may require each person acquiring shares of Stock pursuant to the Plan to represent to and agree with the Company
in writing that such person is acquiring the shares without
a view towards distribution thereof. The certificates for such shares
may include any legend that the Administrator deems appropriate to reflect any restrictions on transfer.

 

11.1.2     
Legends. All certificates for
shares of Stock delivered under the Plan shall be subject to such stop transfer orders
and other restrictions as the Administrator may deem advisable under the rules, regulations and other requirements of the Securities
and Exchange Commission, any stock exchange
upon which the Stock is then listed and any applicable federal or state securities laws, and the Administrator may cause a legend or legends
to be put on any such certificates to make appropriate reference to such restrictions.

 

11.1.3     
No Rights as Stockholder. Except as specifically provided in this Plan, a Participant or a transferee of a Right shall have no rights as a stockholder with respect to any shares covered by the Rights until the date of the issuance of a Stock certificate to him or her for such shares, and no adjustment shall be made for dividends (ordinary or extraordinary, whether
in cash, securities or other property)
or distributions of other rights for which the record date is prior
to the date such Stock
certificate is issued,
except as provided in Section
9.1, hereof.

 

11.2     Other Compensation
Arrangements. Nothing contained
in this Plan shall prevent
the Board from adopting other or additional compensation arrangements, subject to stockholder approval
if such approval is required;
and such arrangements may be either generally applicable or applicable only in specific
cases.

 

11.3     
Disqualifying Dispositions. Any Participant who shall make a "disposition" (as defined in Section
424 of the Code) of all or any portion of an ISO within two years from the date of grant of such ISO or within one year after the issuance of the shares of Stock acquired upon

 

-13-

exercise of such ISO shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized
upon the sale of such shares of Stock.

 

11.4     Regulatory Matters. Each Stock Option Agreement
and Stock Purchase
Agreement shall provide that no shares shall be purchased or sold thereunder unless and until (i) any then applicable requirements of state or federal
laws and regulatory agencies shall have been fully complied
with to the satisfaction of the Company
and its counsel
and (ii) if required to do so by the Company, the Optionee or Offeree shall have executed
and delivered to the Company a letter of investment
intent in such form and
containing such provisions as the
Board or Committee
may require.

 

11.5     
Recapitalizations. Each Stock Option Agreement and Stock Purchase
Agreement shall contain
provisions required
to reflect the provisions of Section
9.

 

11.6     Delivery. Upon exercise of a Right
granted under this Plan, the Company
shall issue Stock or pay any amounts
due within a reasonable period
of time thereafter. Subject
to any statutory obligations the Company
may otherwise have, for purposes
of this Plan, thirty days shall be considered a reasonable period
of time.

 

11.7     Other Provisions. The Stock Option
Agreements and Stock Purchase
Agreements authorized under the Plan may contain
such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the exercise of the Rights,
as the Administrator may deem advisable.

 

SECTION 12: INFORMATION TO PARTICIPANTS

 

To the extent necessary to comply
with Colorado law, the Company each year shall furnish to Participants its balance sheet and income statement
unless such Participants are limited to key Employees
whose duties with the Company assure them access to equivalent information.

 

SECTION 13: STOCKHOLDERS AGREEMENT

 

As a condition to the transfer
of Stock pursuant
to a Right granted
under this Plan, the Administrator, in its sole and absolute
discretion, may require the Participant to execute and become a party to any agreement by and among the Company
and any of its stockholders which exists on or after the Date of Grant (the "Stockholders Agreement"). If the Participant becomes a party to a Stockholders Agreement, in addition to the terms of this Plan and the Stock Option Agreement or Stock Purchase
Agreement (whichever is applicable) pursuant
to which the Stock is transferred, the terms and conditions of the Stockholders Agreement shall govern Participant's rights
in and to the Stock; and if there is any conflict between the provisions of the Stockholders Agreement and this Plan or any conflict between the provisions
of the Stockholders Agreement
and the Stock Option Agreement or Stock Purchase Agreement (whichever is applicable) pursuant
to which the Stock is transferred, the provisions of the Stockholders Agreement shall be controlling. Notwithstanding anything to the contrary in this Section
13, if the Stockholders Agreement contains any provisions which would violate the Colorado Corporations Code if applied to the Participant, the terms of this Plan and the Stock Option
Agreement or Stock
Purchase Agreement
(whichever is applicable) pursuant to which the Stock is transferred shall govern the Participant's rights
with respect to such provisions.

 

-14-

SECTION 14: EFFECTIVE DATE OF PLAN

 

The effective date of this Plan is October
1, 2014. The adoption
of the Plan is subject
to approval by the Company's stockholders, which approval
must be obtained within
12 months from the date the Plan is adopted
by the Board. In the event that the stockholders fail to approve the Plan within 12 months after its adoption by the Board, any grants of Options or sales or awards of shares that have already occurred shall be rescinded, and no additional grants, sales or awards shall be made thereafter under the Plan.

 

SECTION 15: TERM OF PLAN

 

The Plan shall terminate
automatically on December 31, 2024. No Right shall be granted
pursuant to the Plan after such date, but Rights theretofore granted may extend beyond that date. The Plan may be terminated on any earlier date pursuant to Section 10 hereof.

 

SECTION 16: EXECUTION

 

To record the adoption of the Plan by the Board, the Company has caused its authorized
officer to execute
the same as of October 1, 2014.

 

T-REX OIL, INC.

 

By:  /s/ Donald Walford

Donald
Walford, President and CEO

 

-15-

STOCK OPTION
AGREEMENT

2014 T-REX OIL, INC. STOCK OPTION
AND AWARD PLAN

Notice Of Stock Option Grant

 

You have been granted
the following option
to purchase Common Stock of T-REX
OIL, INC. (the "Company"):

 

Name of Optionee:

 

Total Number of Shares Granted: 

 

Type of Option:

 

Exercise Price Per Share: Date of Grant:

 

Vesting Commencement Date: Vesting Schedule:

 

Expiration Date:

 

By your signature and the signature of
the Company's authorized representative below, you and the Company agree that
this option is granted under and governed by the terms and conditions of the
2014 T-REX OIL, INC. STOCK OPTION AND AWARD PLAN and the STOCK OPTION AGREEMENT,
both of which are attached hereto and are incorporated herein by reference.
Optionee hereby represents that both the option and any shares acquired upon
exercise of the option have been or will be acquired for investment for his own
account and not with a view to or for sale in connection with any distribution
or resale of the security.

Optionee:                                                              T-REX
OIL, INC.

By:                                                                      By:

------------------------------------------------------------------------------------------------------------

Name:                                                                                        Donald Walford,

President and CEO

ANNEX I

 

THE OPTION
GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES
ISSUABLE UPON THE EXERCISE THEREOF
HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT
AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION
OF COUNSEL, SATISFACTORY TO THE COMPANY
AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

2014 T-REX OIL, INC. STOCK OPTION AND AWARD PLAN: STOCK OPTION AGREEMENT

 

SECTION 1: GRANT OF OPTION

 

1.1     Option. On the terms and conditions
set forth in the notice of stock option grant to which this agreement (the "Agreement") is attached
(the "Notice of Stock Option Grant") and this agreement, the Company
grants to the individual named in the Notice of Stock Option Grant (the "Optionee") the option to purchase at the exercise
price specified in the Notice of Stock Option Grant (the "Exercise Price") the number of Shares set forth in the Notice of Stock Option Grant. This option is intended
to be either an ISO or a Non-Qualified Stock Option, as provided in the Notice
of Stock Option Grant.

 

1.2    Stock Plan and Defined Terms. This option is granted pursuant to and subject to the terms of the 2014 T-REX OIL, INC. STOCK OPTION AND AWARD PLAN, as in effect on the date specified in the Notice of Stock Option Grant (which date shall be the later of (i) the date on which the Board resolved
to grant this option,
or (ii) the first day of the Optionee's Service) and as amended from time to time (the "Plan"), a copy of which is attached hereto and which the Optionee
acknowledges having received.
Capitalized terms not otherwise defined in this Agreement
have the definitions ascribed
to them in the Plan.

 

SECTION 2: RIGHT TO EXERCISE

 

2.1     Exercisability. Subject
to Sections 2.2 and 2.3 below
and the other
conditions set forth in this Agreement, all or part of this option may be exercised
prior to its expiration at the time or times set forth in the Notice of Stock Option Grant. Shares purchased by exercising this option may be subject to the Right
of Repurchase under Section 7. In addition, all of the remaining
unexercised options shall become vested
and fully exercisable if (i) a Change in Control occurs before the Optionee's Service terminates, and (ii) the option is not assumed or an equivalent option is not substituted by the successor
entity that employs the Optionee immediately after the Change
in Control or by its parent or subsidiary.

 

2.2    Limitation. If this option is designated as an ISO in the Notice of Stock Option Grant, then to the extent (and only to the extent) the Optionee's right to exercise
this option causes this
option (in whole or in part) to not be treated
as an ISO by reason
of the $100,000 annual limitation under Section
422(d) of the Code,
such options shall
be treated as Non-Qualified Stock Options, but shall be exercisable by their terms. The determination of options
to be treated as Non-Qualified Stock Options shall be made by taking options into account in the order in which they are granted.
If the terms of this option cause the $100,000 annual limitation under Section

 

-1-

422(d) of the Code to be exceeded,
a pro rata portion
of each exercise shall be treated as the exercise
of a Non-Qualified Stock Option.

 

2.3     Stockholder Approval. Any other
provision of this Agreement notwithstanding, no portion of this option shall be exercisable at any time prior
to the approval of the Plan by the Company's
stockholders.

 

SECTION 3: NO TRANSFER
OR ASSIGNMENT OF OPTION

 

Except as provided
herein, an Optionee
may not assign, sell or transfer
the option, in whole or in part, other than by testament
or by operation of the laws of descent and distribution. The Administrator, in its sole discretion may permit the transfer
of a Non-Qualified Option (but not an ISO) as follows: (i) by gift to a member of the Participant's immediate family, or (ii) by transfer by instrument to a trust providing
that the Option is to be passed to beneficiaries upon death of the Settlor (either
or both (i) or (ii) referred to as a "Permitted Transferee"). For purposes
of this Section 3, "immediate family" shall mean the Optionee's spouse (including a former spouse subject to terms of a domestic relations
order); child, stepchild,
grandchild, child-in-law; parent, stepparent, grandparent, parent-in-law; sibling and sibling-in-law, and shall include adoptive relationships. A transfer permitted under this Section 3 hereof may be made only upon written notice to and approval thereof
by Administrator. A Permitted Transferee may not further
assign, sell or transfer the transferred option, in whole or in part, other than by testament or by operation of the laws of descent and distribution. A Permitted
Transferee shall agree in writing
to be bound by the provisions of this Plan, which agreement
shall be submitted to and approved by the Administrator before the transfer.

 

SECTION 4: EXERCISE PROCEDURES

 

4.1    Notice of Exercise. The Optionee or the Optionee's
representative may exercise this option by delivering a written notice
in the form of Exhibit A attached hereto
("Notice of Exercise") to the Company in the manner specified pursuant
to Section 14.4 hereof.
Such Notice of Exercise shall specify the election to exercise this option, the number of Shares for which it is being exercised
and the form of payment,
which must comply
with Section 5. The Notice
of Exercise shall be signed
by the person who is entitled to exercise this option. In the event that this option
is to be exercised by the Optionee's representative, the notice
shall be accompanied by proof (satisfactory to the Company) of the representative's right to exercise
this option.

 

4.2    Issuance of Shares. After receiving
a proper Notice of Exercise, the Company shall cause
to be issued a certificate or certificates for the Shares
as to which this option
has been exercised, registered in the name of the person exercising this option (or in the names of such person and his or her spouse as community property or as joint tenants
with right of survivorship). The Company shall cause such certificate or certificates to be deposited
in escrow or delivered to or upon the order
of the person exercising this option.

 

4.3     Withholding Taxes. In the event that the Company
determines that it is required
to withhold any tax as a result
of the exercise of this option,
the Optionee, as a condition to the exercise of this option,
shall make arrangements satisfactory to the Company
to enable it to satisfy
all withholding requirements. The Optionee shall also make arrangements satisfactory to the Company
to enable it to satisfy
any withholding requirements that may arise in connection with the vesting or disposition of Shares purchased by exercising
this option, and shall provide to the Company his/her/its social security number or employment identification number.

 

-2-

SECTION 5: PAYMENT FOR STOCK

5.1     General Rule. The entire
Exercise Price of Shares issued
under the Plan shall
be payable in full by cash or cashier's
check for an amount equal to the aggregate Exercise
Price for the number
of shares being purchased. Alternatively, in the sole discretion of the Plan Administrator and upon such terms as the Plan Administrator shall approve, the Exercise Price may be paid by:

5.1.1     
Cashless Exercise. Provided
the Company's Common
Stock is publicly
traded, a copy of instructions to a broker
directing such broker
to sell the Shares for which this option is exercised, and to remit to the Company
the aggregate Exercise
Price of such option ("Cashless Exercise");

 

5.1.2     Stock-For-Stock Exercise. Paying all or a portion of the Exercise Price for the number of Shares being purchased by tendering Shares owned by the Optionee,
duly endorsed for transfer to the Company,
with a Fair Market Value on the date of delivery equal to the Exercise Price multiplied by the number of Shares with respect to which this option is being exercised
(the "Purchase Price") or the aggregate
Purchase Price of the shares with respect to which this option or portion
hereof is exercised ("Stock-for-Stock Exercise"); or

 

5.1.3     Attestation Exercise.
By a stock for stock exercise by means of attestation whereby
the Optionee identifies
for delivery specific Shares already owned by Optionee
and receives a number
of Shares equal
to the difference between
the Option Shares
thereby exercised
and the identified attestation Shares ("Attestation Exercise").

5.2    Withholding Payment. The Exercise Price shall include payment of the amount of all federal,
state, local or other income, excise or employment taxes subject to withholding (if any) by the Company or any parent
or subsidiary corporation as a result
of the exercise of a Stock Option.
The Optionee may pay
all or a portion of the tax withholding by cash or check payable to the Company, or, at the discretion of the Administrator, upon such terms as the Administrator shall
approve, by (i) Cashless Exercise or Attestation Exercise; (ii) Stock-for-Stock Exercise; (iii) in the case of an Option,
by paying all or a portion
of the tax withholding for the number of shares being purchased by withholding shares from any transfer or payment
to the Optionee ("Stock withholding"); or (iv) a combination of one or more of the foregoing
payment methods. Any shares issued pursuant to the exercise
of an Option and transferred by the Optionee
to the Company for the purpose of satisfying any withholding obligation shall not
again be available for purposes of the Plan. The fair market value of the number of shares subject to Stock withholding shall not exceed an amount equal to the applicable minimum required
tax withholding rates.

5.3    Promissory Note. The Plan Administrator, in its sole discretion, upon such terms as the Plan Administrator shall approve, may permit all or a portion of the Exercise Price of Shares issued under the Plan to be paid with a full-recourse promissory note. However, in the event there is a stated par value of the shares
and applicable law requires, the par value of the shares, if newly
issued, shall be paid in cash or cash equivalents. The Shares shall be pledged
as security for payment of the principal amount of the promissory note and interest
thereon, and shall be held in the possession of the Company until the promissory note is repaid in full. Subject to the foregoing, the Plan Administrator (at its sole discretion) shall specify the term, interest rate,
amortization requirements (if any) and other provisions of such note.

-3-

5.4    Exercise/Pledge. In the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve, payment may be made all or in part by the delivery
(on a form prescribed by the Plan Administrator) of an irrevocable direction
to pledge Shares to a securities broker or lender approved by the Company,
as security for a loan, and to deliver all or part of the loan proceeds
to the Company in payment of all or part of the Exercise
Price and any withholding taxes.

SECTION 6: TERM AND EXPIRATION

6.1    Basic Term. This option shall expire and shall not be exercisable after the expiration of the earliest
of (i) the Expiration Date specified in the Notice of Stock Option Grant, (ii) three months after the date the Optionee's Service with the Company
and its Subsidiaries terminates if such termination is for any reason other than death, Disability or Cause, (iii) one year after the date the Optionee's Service with the Company and its Subsidiaries terminates if such termination is a result
of death or Disability, and (iv) if the Optionee's Service with the Company
and its Subsidiaries terminates for Cause, all outstanding Options granted to such Optionee shall expire as of the commencement of business on the date of such termination. Outstanding Options that are not exercisable at the time of termination of employment for any reason shall expire at the close of business
on the date of such termination. The Plan Administrator shall have the sole discretion to determine
when this option is to expire. For any purpose under this Agreement, Service
shall be deemed to continue while
the Optionee is on a bona fide leave of absence, if such leave to the extent required by applicable law. To the extent applicable
law does not require such a
leave to be deemed
to continue while the Optionee
is on a bona fide leave of absence, such leave shall be deemed to continue if, and only if, expressly provided
in writing by the Administrator or a duly authorized officer
of the Company, Parent
or Subsidiary for whom Optionee
provides his or her services.

 

6.2    Exercise After Death. All or part of this option may be exercised at any time before its expiration
under Section 6.1 above by the executors or administrators of the Optionee's estate
or by any person who has acquired
this option directly
from the Optionee by beneficiary designation, bequest or inheritance,
but only to the extent that this option had become
exercisable before the Optionee's death. When the Optionee dies, this option shall expire immediately with respect to the number of Shares for which this option is not yet exercisable and with respect
to any Share that is subject to the Right of Repurchase (as such term is defined
in below) (the "Restricted Stock").

 

6.3    Notice Concerning ISO Treatment. If this option is designated as an ISO in the Notice of Stock Option Grant, it ceases to qualify for favorable tax treatment as an ISO to the extent it is
exercised (i) more than three months after
the date the Optionee ceases
to be an Employee
for any reason other than death or permanent and total disability (as defined
in Section 22(e)(3)
of the Code), (ii) more than 12 months after the date the Optionee
ceases to be an Employee
by reason of such permanent and total disability, or (iii) after the Optionee has been on a leave of absence for more than 90 days, unless the Optionee's
reemployment rights are guaranteed
by statute or by contract.

 

-4-

SECTION 7: RIGHT OF REPURCHASE

7.1     Option Repurchase Right. Following a termination of the Optionee's Service, the Company shall have the option to repurchase the Optionee's vested and exercisable options at a price equal to
the Fair Market Value of the
Stock underlying such options, less the Exercise
Price (the "Option Repurchase Right").

 

7.2     Stock Repurchase Right. Unless they have become vested in accordance with the Notice of Stock Option Grant and Section
7.4 below, the stock acquired
under this Agreement initially shall be Restricted Stock and shall
be subject to a right (but not an obligation) of repurchase by the Company,
which shall be exercisable at a price
equal to the Exercise Price paid for the Restricted Stock (the "Stock Repurchase Right"). Vested stock acquired under this Agreement
shall be subject
to a right (but not an obligation) of repurchase by the Company,
which shall be exercisable at a price equal to the Fair Market Value
of the vested Stock.

 

7.3      
Condition Precedent to Exercise. The Option Repurchase Right and Stock Repurchase Rights (collectively, the "Right of Repurchase") shall be exercisable over Restricted Stock only during
the 90-day period
next following the later of:

 

7.3.1     
The date when the Optionee's Service terminates for any reason,
with or without Cause,
including (without
limitation) death
or disability; or

7.3.2     The date when this option was exercised
by the Optionee, the executors
or administrators of the Optionee's estate, or any person who has acquired
this option directly from the Optionee
by bequest, inheritance or beneficiary designation.

7.4    Lapse of Right of Repurchase. The Right of Repurchase shall lapse with respect to the Shares
subject to this option in accordance with the
vesting schedule set forth in the Notice
of Stock Option Grant. In addition, the Right of Repurchase shall lapse and all of the remaining Restricted Stock shall become vested if (i) a Change in Control
occurs before the Optionee's Service
terminates, and (ii) the Right of Repurchase
is not assigned to the entity that employs the Optionee immediately after the Change
in Control or to its parent or subsidiary. The Right of Repurchase shall lapse with respect to (i) Shares
that are registered under a then currently
effective registration statement
under applicable federal securities laws and the issuer is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act or becomes an investment
company registered or required to be registered under the Investment Company Act of 1940, or (ii) Shares
for which a determination is made by counsel for the Company that such Exercise
Price restrictions are not required in the circumstances under applicable federal or state securities laws.

7.5     
Exercise of Right of Repurchase. The Company shall exercise the Right of Repurchase by written notice delivered to the Optionee
prior to the expiration of the 90-day period specified in Section 7.3 above. The notice shall set forth the date on which the repurchase is to be effected,
which must occur within 31 days of the notice. The certificate(s) representing the Restricted Stock to be repurchased shall, prior to the close of business on the date specified for the repurchase, be delivered to the Company
properly endorsed for transfer. The Company shall, concurrently with the receipt
of such certificate(s), pay to the Optionee
the Purchase Price determined according to this Section 7. Payment shall be made in cash or cash equivalents or by canceling indebtedness to the Company
incurred by the Optionee in the purchase
of the Restricted Stock. The Right of Repurchase shall terminate
with respect to any Restricted Stock for which it has not been timely
exercised pursuant to this Section 7.5.

-5-

7.6     
Rights of Repurchase
Adjustments. If there is any change in the number of outstanding shares
of Stock by reason of a stock split, reverse stock split, stock dividend, an extraordinary dividend payable in a form other than stock, recapitalization, combination or reclassification, or a similar transaction affecting the Company's
outstanding securities without
receipt of consideration, then (i) any new, substituted or additional securities or other property
(including money paid other than as an ordinary
cash dividend) distributed with respect to any Restricted Stock (or into which such Restricted Stock thereby become convertible) shall immediately be subject to the Right of Repurchase; and (ii) appropriate adjustments to reflect the distribution of such securities or property shall be made to the number
and/or class of the Restricted Stock and to the price per share to be paid upon the exercise of the Right of Repurchase; provided, however, that the aggregate
Purchase Price payable
for the Restricted Stock shall remain the same.

 

7.7    Termination of Rights as Stockholder. If the Company makes available, at the time and place
and in the amount and form provided in this Agreement, the consideration for the Restricted Stock to be repurchased in accordance with this Section
7, then after such time the person
from whom such Restricted Stock is to be repurchased shall no longer have any rights as a holder of such Restricted
Stock (other than the right to receive payment of such consideration in accordance with this Agreement). Such Restricted Stock shall be deemed to have been repurchased in accordance with the applicable
provisions hereof, whether or not the certificate(s) therefore
have been delivered
as required by this Agreement.

 

7.8     Escrow. Upon issuance, the certificates for Restricted Stock shall be deposited
in escrow with the Company to be held in accordance with the provisions of this Agreement. Any new, substituted or additional securities or other property
described in Section
7.6 above shall
immediately be delivered to the Company to be held in escrow,
but only to the extent the Shares are at the time Restricted Stock. All regular
cash dividends on Restricted Stock (or
 other securities at the time held in escrow) shall be paid directly to the Optionee
and shall not be held in escrow.
Restricted Stock, together
with any other assets or securities
held in escrow hereunder, shall be (i) surrendered to the Company for repurchase and cancellation upon the Company's exercise
of its Right of Repurchase
or Right of First Refusal or (ii) released to the Optionee upon the Optionee's request
to the extent the Shares
are no longer Restricted Stock (but not more frequently than once every six months). In any event, all Shares which have vested (and any other vested assets and securities attributable thereto) shall be released within 60 days after the earlier
of (i) the Optionee's cessation of Service or (ii) the lapse of the Right of First Refusal.

SECTION 8: RIGHT OF FIRST REFUSAL

8.1    Right of First Refusal.
In the event that the Company's stock
is not readily tradable on an
established securities market and the Optionee proposes to sell, pledge or otherwise
transfer to a third party any Shares acquired under this Agreement, or any interest
in such Shares, to any person, entity
or organization (the "Transferee") the Company
shall have the Right of First Refusal
with respect to all (and not less than all) of such Shares (the "Right of First Refusal"). If the Optionee
desires to transfer
Shares acquired under this Agreement,
the Optionee shall give a written transfer
notice ("Transfer Notice") to the Company describing fully the
proposed transfer, including the number of Shares proposed to be transferred, the proposed transfer price, the name and address of the proposed Transferee
and proof satisfactory to the Company that the proposed
sale or transfer will not violate any applicable federal or state securities laws. The Transfer
Notice shall be signed both by the Optionee
and by the proposed Transferee and must constitute a binding commitment of both parties
to the transfer of the Shares. The Company
shall have the right to purchase all, and not less than all, of the Shares on the terms of the proposal described
in

 

-6-

the Transfer
Notice by delivery
of a notice of exercise
of the Right of First Refusal within 30 days after the date when the Transfer
Notice was received
by the Company. The Company's rights under this Section
8.1 shall be freely assignable, in whole or in part.

 

8.2    Additional Shares or Substituted Securities. In the event of the declaration of a stock dividend,
the declaration of an extraordinary dividend payable in a form other than stock, a spin- off, a stock split, an adjustment in conversion ratio,
a recapitalization or a similar
transaction affecting the Company's
outstanding securities without receipt of consideration, any new, substituted or additional securities or other property (including money paid other than as an ordinary
cash dividend) which are by reason of such transaction distributed with respect
to any Shares subject
to this Section 8 or into which such Shares
thereby become convertible shall immediately be subject to this Section
8. Appropriate adjustments to reflect the distribution of such securities
or property shall be made to the number and/or class of the Shares subject to this Section
8.

 

8.3     
Termination of Right of First Refusal.
Any other provision
of this Section 8 notwithstanding, in the event that
the Stock is readily tradable on an established securities market when the Optionee desires to transfer
Shares, the Company
shall have no Right of First Refusal,
and the Optionee
shall have no obligation to comply with the procedures prescribed by this Section 8.

 

8.4     Permitted
Transfers. This Section
8 shall not apply to a transfer (i) by gift to a member
of the Participant's immediate family
or (ii) by transfer by instrument to a trust providing that the Option is to be passed to beneficiaries upon death of the Settlor. For purposes of this Section
8.4, "immediate family" shall mean the Optionee's spouse (including a former spouse subject to terms of a domestic
relations order); child, stepchild, grandchild, child-in-law; parent,
stepparent, grandparent, parent-in-law; sibling
and sibling-in-law, and shall include adoptive
relationships.

 

8.5    Termination of Rights as Stockholder. If the Company makes available, at the time and place
and in the amount and form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section
8, then after such time the person from whom such Shares are to be purchased shall no longer have any rights as a holder of such Shares
(other than the right to receive
payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to  have
been purchased in accordance with the applicable provisions hereof, whether
or not the certificate(s) therefore
have been delivered
as required by this Agreement.

SECTION 9: OBLIGATION TO SELL.

Notwithstanding anything
herein to the contrary, if at any time following Optionee's acquisition of Shares hereunder, stockholders of the Company
owning 51% or more of the shares
of the Company (on a fully diluted basis) (the "Control Sellers") enter into an agreement (including any agreement in principal) to transfer
all of their shares to any person or group of persons who are not affiliated with the Control
Sellers, such Control
Sellers may require
each stockholder who is not a Control
Seller (a "Non-Control Seller") to sell all of their shares to such person
or group of persons at a price and on terms and conditions the same as those
on which such Control Sellers have agreed to sell their shares, other than terms and conditions relating
to the performance or non-performance of services. For the purposes of the preceding
sentence, an affiliate
of a Control Seller is a person who controls,
which is controlled by, or which is under common
control with, the Control Seller.

 

-7-

SECTION 10: STOCKHOLDERS AGREEMENT

As a condition to the transfer
of Stock pursuant
to this Stock Option
Agreement, the Administrator, in its sole and absolute
discretion, may require the Participant to execute and become a party to any agreement by and among the Company
and any of its stockholders which exists on or after the Date of Grant (the "Stockholders Agreement"). If the Participant becomes a party to a Stockholders Agreement, in addition to the terms of the Plan and this Stock Option Agreement, the terms and conditions of Stockholders Agreement
shall govern Participant's rights in and to the Stock; and if there is any conflict between
the provisions of the Stockholders Agreement and the Plan or any conflict between the provisions of the Stockholders Agreement and this Stock Option Agreement, the provisions of the Stockholders Agreement shall be controlling. Notwithstanding anything to the contrary
in this Section
10, if the Stockholders Agreement contains any provisions which would violate Colorado corporate
law if applied to the Participant, the terms of the Plan and this Stock Option Agreement
shall govern the Participant's rights
with respect to such provisions.

SECTION 11: LEGALITY OF INITIAL ISSUANCE

No Shares shall be issued upon the exercise of this option unless and until the Company
has determined that:

11.1     It and the Optionee have taken any actions required to register
the Shares, provided
the Stock is publicly
traded, under the Securities Act of 1933, as amended (the "Securities Act"), or to perfect an exemption
from the registration requirements thereof;

11.2     Any applicable listing requirement of any stock exchange on which Stock is listed has been satisfied; and

11.3    Any other applicable provision of state or federal
law has been satisfied. 

 

SECTION 12: NO REGISTRATION RIGHTS

 

The Company may, but shall not be obligated to, register or qualify the sale of Shares under the Securities Act or any other applicable law. The Company shall not be obligated
to take any affirmative action in order to cause the sale of Shares under this Agreement to comply with any law.

 

SECTION 13: RESTRICTIONS ON TRANSFER

13.1     Securities Law Restrictions. Regardless of whether the offering and sale of Shares under the Plan have been registered under the Securities
Act or have been registered or qualified under the securities laws of any state, the Company,
at its discretion, may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement
of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary
or desirable in order to achieve compliance with the Securities Act, the securities laws of any state or any other law.

13.2     Market Stand-Off. In the event of an underwritten public offering
by the Company
of its equity securities
pursuant to an effective registration statement filed under the Act, including the Company's
initial public offering
(a "Public Offering"), the Optionee shall
not transfer for value any shares
of Stock without
the prior written
consent of the Company
or its

-8-

underwriters, for such period
of time from and after the effective date of such registration statement as may be requested
by the Company or such underwriters (the "Market Stand-Off"). The Market Stand-off
shall be in effect for such period of time following the date of the final prospectus for the offering
as may be requested by the Company
or such underwriters. In the event of the declaration of a stock dividend, a spin-off,
a stock split, an adjustment in conversion ratio,
a recapitalization or a similar transaction affecting
the Company's outstanding securities without receipt of consideration, any
new, substituted or additional securities which are by reason of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares
thereby become convertible, shall immediately be subject
to the Market Stand- Off. In order to enforce the Market Stand-Off, the Company
may impose stop-transfer instructions with respect
to the Shares acquired
under this Agreement until
the end of the applicable stand-off period.

 

13.3     Investment
Intent at Grant. The Optionee represents and agrees that the Shares to be acquired
upon exercising this option will be acquired for investment, and not with a view to the sale or distribution thereof.

 

13.4     Investment Intent at Exercise.
In the event that the sale of Shares under the Plan is not registered under the Securities
Act but an exemption
is available which requires an investment representation or other representation, the Optionee shall represent and agree at the time of exercise
that the Shares being acquired upon exercising this option are being acquired for investment, and not with a view to the sale or distribution thereof,
and shall make such other representations as are deemed necessary or appropriate by the Company
and its counsel.

 

13.5     Legends. All certificates evidencing
Shares purchased under this Agreement in an unregistered transaction shall bear the following
legend (and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law):

 

"THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION
OF COUNSEL, SATISFACTORY TO THE COMPANY
AND ITS COUNSEL,
THAT SUCH REGISTRATION IS NOT REQUIRED."

 

13.6     Removal
of Legends. If, in the opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares sold under this Agreement no longer is required,
the holder of such certificate shall be entitled
to exchange such certificate for a certificate representing the same number of Shares but without such legend.

 

13.7     Administration. Any determination by the Company
and its counsel in connection with any of the matters
set forth in this Section
13 shall be conclusive and binding
on the Optionee and all other persons.

SECTION 14: MISCELLANEOUS PROVISIONS

14.1    Rights as a Stockholder. Neither
the Optionee nor the Optionee's representative shall have any rights
as a stockholder with respect
to any Shares subject to this option until the Optionee
or the Optionee's representative becomes
entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to Section
4 and Section 5 hereof.

 

-9-

14.2     Adjustments. If there is any change in
the number of outstanding shares of Stock by reason of a 
stock split, reverse  stock split, stock dividend, recapitalization, combination or reclassification, then (i) the number of shares subject to this option and (ii) the Exercise
Price of this option, in effect
prior to such change, shall be proportionately adjusted to reflect
any increase or decrease in the
number of issued shares
of Stock; provided, however, that any fractional shares resulting from the adjustment shall be eliminated.

 

14.3     
No Retention Rights. Nothing in this option or in the Plan shall confer upon the Optionee
any right to continue in Service for any period of specific duration
or interfere with or otherwise
restrict in any way the rights of the Company
(or any Parent or Subsidiary employing or retaining the Optionee) or of the Optionee, which
rights are hereby
expressly reserved by each, to terminate
his or her Service at any time and for any reason, with or without
Cause.

 

14.4     Notice. Any notice required by the terms of this
Agreement shall be given in writing and shall be deemed
effective upon personal delivery or upon deposit
with the United States Postal
Service, by registered or certified mail with postage
and fees prepaid,
e-mail, Federal Express,
UPS, or other common international carrier who can provide proof of delivery. Notice shall be addressed the Optionee at the address
set forth in the records of the Company.
Notice shall be addressed to the Company at:

 

T-REX OIL,
INC.

520 Zang, Suite #250

Broomfield, CO 80021

 

14.5     Entire Agreement. The Notice of Stock Option Grant, this Agreement
and the Plan constitute the entire contract
between the parties
hereto with regard to the subject matter hereof.
They supersede any other agreements, representations or understandings (whether oral or written and whether
express or implied)
that relate to the subject matter hereof.

 

14.6      
Choice of Law. THIS AGREEMENT
SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF COLORADO
WITHOUT REGARD TO ITS CHOICE OF LAWS PROVISIONS, AS COLORADO LAWS ARE APPLIED
TO CONTRACTS ENTERED
INTO AND PERFORMED
IN SUCH STATE.

 

14.7     Attorneys' Fees. In the event that any action,
suit or proceeding is instituted upon any breach
of this Agreement, the prevailing party shall be paid by the other party thereto an amount equal to all of
the prevailing party's costs and expenses, including
attorneys' fees incurred
in each and every such action, suit or proceeding (including any and all appeals or petitions therefrom). As used in this Agreement, "attorneys' fees" shall mean the full and
actual cost of any legal services
actually performed in connection with the matter involved calculated
on the basis of the usual fee charged by the attorney
performing such services
and shall not be limited to "reasonable attorneys' fees" as defined in any statute
or rule of court.

 

-10-

EXHIBIT A TO

2014 T-REX OIL, INC. STOCK OPTION AND AWARD PLAN: STOCK OPTION AGREEMENT

ANNEX I

NOTICE OF EXERCISE

(To be signed only upon exercise of the Option)

T-Rex Oil, Inc.

520 Zang, Suite #250

Broomfield, CO 80021

 

The undersigned, the holder of the enclosed Stock Option Agreement, hereby irrevocably elects to
 exercise  the  purchase  rights  represented
 by  the  Option  and  to
 purchase
 thereunder                    * shares
of Common Stock
of T-Rex Oil, Inc. (the "Company"), and herewith
encloses payment of $__________ and/or                  shares of the Company's
common stock in full payment of the purchase
price of such shares being purchased.

Dated:

------------------------------

NOTICE: YOUR STOCK MAY BE SUBJECT
TO RESTRICTIONS AND FORFEITABLE
UNDER THE NOTICE OF STOCK OPTION GRANT AND STOCK OPTION AGREEMENT

(Signature must conform in all respects
to name of holder
as specified on the face of the Option)

--------------------------------------------------------------

--------------------------------------------------------------

(Please Print Name)

-------------------------------------------------

(Tax Identification Number)

--------------------------------------------------------------

--------------------------------------------------------------

(Address)

* Insert here the number of shares called for on the face of the Option, or, in the case of a partial exercise, the number of shares being exercised, in either case without making any adjustment for additional Common
Stock of the Company, other securities or property that, pursuant to the adjustment provisions of the Option, may be deliverable upon exercise.

FORM OF RESOLUTIONS FOR OPTION GRANTS

RESOLUTIONS ADOPTED
BY UNANIMOUS WRITTEN
CONSENT OF THE BOARD OF DIRECTORS OF

T-REX
OIL, INC.

As of                   , 2014

The undersigned directors, constituting the entire board of directors (the "Board") of T-REX
OIL, INC., a Colorado corporation (the "Company"), hereby
take the following actions,
adopt the following
resolutions, and transact the following business, by written consent
without a meeting,
as of the date above written, pursuant
to the applicable corporate
laws of the State of Colorado and the Company's Bylaws.

 

WHEREAS, the Company
previously adopted
the 2014 T-REX OIL, INC. STOCK OPTION AND AWARD PLAN (the "Plan"), and has delegated
the responsibility to administer the Plan to the Board;

 

WHEREAS, Two Million (2,000,000) shares of Common Stock of the Company were originally
reserved for issuance
under the Plan;

 

WHEREAS, as of the date hereof, Two Million (2,000,000) shares remain available for issuance under the Plan; and

 

WHEREAS, the Board has determined that it is in the best interests of this Company and its stockholders to provide,
under the Plan, equity incentives to those employees, directors and/or consultants of the Company identified below.

 

NOW, THEREFORE, BE IT RESOLVED,
that the persons
listed on the Exhibit
A, which is attached hereto and incorporated herein by reference, which exhibit was reviewed by the Board and shall be included with this Consent, are hereby granted, as of the date hereof, an option (the "Option") to purchase the number of shares with the vesting schedule
and exercise price as set forth in Exhibit
A;

 

RESOLVED FURTHER,
that each of the Options shall be either a Non-Qualified Stock Option or an ISO (as such terms are defined
in the Plan) as specified in Exhibit A;

 

RESOLVED FURTHER,
that the Options shall be evidenced by stock option agreements and be subject
to the restrictions (including transfer
and/or repurchase rights),
if any, set forth in such stock
option agreements;

 

RESOLVED FURTHER,
that the Options
shall be granted pursuant to the exemptions provided under Section
701 of the Securities Act Rules and Colorado Securities Laws;

 

RESOLVED
FURTHER, that there is hereby reserved and set aside under the Plan the number
of shares adequate
to cover the shares underlying
the Options expected
to be granted in the next 12 months herein; and

 

RESOLVED FURTHER,
that the officers
of this Company,
and each of them, be, and they hereby
are, authorized, directed and empowered
for and on behalf of the
Company to do or cause

to be done all such acts and things and to sign, deliver
and/or file all such documents and notices as any of such officers may deem necessary or advisable in order to carry out and perform
the foregoing resolutions and the intention thereof.

 

The Secretary
of the Corporation is directed
to file the original executed
copy of this Consent with the minutes of proceedings of the Board.

 

IN WITNESS WHEREOF, each of the undersigned has executed this consent as of the date first written above.

DIRECTORS:

_______________________________________               
_________________________________________

Donald Walford                                                       

EXHIBIT A TO

FORM OF RESOLUTIONS FOR OPTION GRANTS

Stock Option
Grant Information

 

	
  Name

  	
  No. Shares

  	
  ISO or NQSO

  	
  Exercise Price*

  	
  Vesting Schedule

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  
	

  	

  	

  	

  	

  

 

* In the case of an ISO, the per share exercise
price must be at least 100% of the Fair Market
Value (as such term is defined in the Plan) of the underlying share as of the date of grant. In the case of a NQSO, the per share exercise
price must be at least 85% of the Fair Market Value of the underlying share as of the date of grant.

STOCK PURCHASE AGREEMENT

STOCK PURCHASE CERTIFICATE

 

THIS IS TO CERTIFY
that T-REX OIL, INC., a Colorado corporation (the "Company"), has offered you (the "Purchaser") the right to purchase Common Stock (the "Stock" or "Shares") of the Company under its 2014 T-REX OIL, INC. STOCK OPTION
AND AWARD PLAN (the "Plan"), as follows:

	
  Name
  of Purchaser:

  	

  
	
  Address of Purchaser:

  	

  
	

  	

  
	
  Number of Shares:

  	

  
	
  Purchase Price:

  	
  $

  
	
  Offer
  Grant Date:

  	

  
	
  Offer
  Expiration Date:

  	
  15 days
  after the Offer
  Grant Date

  
	
  Vesting Commencement Date:

  	

  
	
  Vesting Schedule:

  	

  
	

  	

  

  

 

By your signature and the signature of the Company's representative below, you and the Company agree to be bound by all of the terms and conditions of the Stock Purchase Agreement,
which is attached hereto as Annex I and the Plan (both incorporated herein by this reference
as if set forth in full in this document). By executing this Agreement, Purchaser hereby irrevocably elects to exercise the purchase rights granted pursuant to the Stock Purchase Agreement and to purchase                  shares of Stock of T-REX
OIL, INC., and herewith
encloses payment
of $ ____________  in payment of the purchase
price of the shares being
purchased. 

 

PURCHASER:                                                 T-REX
OIL, INC.   

                                                                                                           

By:                                                                  
By:____________________

Print Name:______________________           
Donald Walford

                                                                            Its: President and CEO

ANNEX I

to

STOCK PURCHASE
AGREEMENT

THE STOCK GRANTED PURSUANT
TO THIS AGREEMENT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION UNDER SUCH ACT OR AN OPINION
OF COUNSEL, SATISFACTORY TO THE COMPANY
AND ITS COUNSEL,
THAT SUCH REGISTRATION IS NOT REQUIRED.

2014 T-REX OIL, INC. STOCK OPTION AND AWARD PLAN: STOCK PURCHASE AGREEMENT

This Stock Purchase Agreement (this "Agreement") is made and entered into on the execution date of the Stock Purchase
Certificate to which it is attached (the "Certificate"), by and between T-REX OIL, INC., a Colorado corporation (the "Company"), and the Director,
Employee or Consultant ("Purchaser") named in the Certificate.

Pursuant to the 2014 T-REX
OIL, INC. STOCK OPTION
AND AWARD PLAN (the

"Plan"), the Administrator of the Plan has authorized the grant to Purchaser of the right to purchase shares of the Company's
Common Stock, upon the terms and subject to the conditions set forth in this Agreement
and in the Plan. Capitalized terms not otherwise
defied herein shall have the meanings ascribed
to them in the Plan.

SECTION 1: THE OFFER.

1.1 Offer of the Stock. The Company
hereby offers to sell to purchaser the number of shares
of stock set forth in the certificate at the price and subject to the restrictions set forth in this Agreement (the shares of stock which you purchase under this agreement are referred to as the "Stock" or "Shares").

 

1.2 Purchase Price. The Purchase Price for the Stock is set forth
in the Certificate.

 

1.3 Payment For The Stock.
Purchaser may pay for the stock by delivering to the company the purchase price in the form of either (i) cash or cashier's check or (ii) your promissory note, in the form of the Promissory
Note attached to this agreement
as Exhibit A. If Purchaser pays for the stock by delivery of the Promissory Note, Purchaser must also deliver to the company at the same time one executed
copy of both the Security
Agreement attached as Exhibit B and the Stock Assignment attached as Exhibit
C.

 

1.4    Expiration of Offer. This offer expires
at 5:00 o'clock p.m. on the date set forth in the
certificate.

 

-2-

SECTION 2: ACCEPTANCE OF THE OFFER.

 

There is no obligation to exercise the rights granted
to you under this Agreement, in whole or in part. Purchaser may purchase fewer shares than the number offered to Purchaser
in this Agreement. If Purchaser decides to accept the offer and purchase
any shares offered,
Purchaser must do the following:

 

2.1     Complete
Documents. Complete,
sign and date one copy of the Certificate, and, if Purchaser is paying by delivery of a promissory note, one copy each of the attached
Promissory Note, Security Agreement and Stock Assignment;

 

2.2    Spousal Consent. If Purchaser
is married, Purchaser
must have his or her spouse sign and date one copy of the attached
Spousal Consent;
and

 

2.3    Deliver to Company.
Deliver to the Company on or before the time the offer expires, the signed copy of this Agreement, the Spousal Consent,
and payment for the Stock, in cash, by cashier's
check or by the Promissory Note. If Purchaser is paying for the stock by the Promissory Note, Purchaser
must also  deliver to the 
Company the executed  original Promissory Note, Security Agreement and Stock Assignment.

 

Purchaser should
retain a copy of
all of the signed documents for his or her files, and if Purchaser does so, Purchaser should mark the retained copy of the Promissory Note "COPY." THE SIGNED PROMISSORY NOTE IS A NEGOTIABLE INSTRUMENT AND IS ENFORCEABLE AGAINST PURCHASER BY ANY HOLDER OF THE PROMISSORY NOTE, AND ANY ADDITIONAL SIGNED COPIES WHICH ARE NOT MARKED "COPY" MAY ALSO BE NEGOTIABLE INSTRUMENTS WHICH ARE ENFORCEABLE AGAINST PURCHASER BY THEIR HOLDER.

SECTION 3: RESTRICTIONS ON THE STOCK.

3.1    Restrictions on Transfer of Shares. Purchaser shall not sell, make any short sale of, loan, hypothecate,
pledge, grant any option for the
repurchase of, or otherwise dispose or transfer for value (each a "Transfer") or otherwise agree to engage in any of the foregoing transactions with respect to any shares of Stock. The Company
shall not be required to register any such Transfer
and the Company may instruct its transfer agent not to register any such
Transfer, unless and until all of the following events
shall have occurred:

 

3.1.1     The
Company has declined to exercise
the right of first refusal
provided for in Section 5 hereof;

 

3.1.2     
The Shares are Transferred pursuant
to and in conformity with: (i) (x) an effective
registration statement
filed with the Securities and Exchange Commission
(the "Commission") pursuant to the Securities
Act of 1933, as amended (the "Act") or (y) an exemption from registration under the Act; and (ii) the securities laws of any state of the United States;
and

 

3.1.3     Purchaser has, prior to the Transfer
of such Shares, and if requested
by the Company, provided
all relevant information to the Company's
counsel so that upon the Company's
request, the Company's counsel is able to deliver,
and actually prepares
and delivers to the Company a written opinion that the proposed Transfer
is: (i) (x) pursuant to a registration statement which has been filed with the Commission and is then effective

 

-3-

or (y) exempt from registration under the Act as then in effect, and the Rules
and Regulations of the Commission thereunder; and (ii) is either qualified or registered
under any applicable state
securities laws, or exempt from such qualification or registration. The Company
shall bear all reasonable costs of preparing such opinion.

 

3.2     Additional Restrictions on Transfer of Non-Vested Shares. Purchaser agrees, for himself
or herself and for his or her heirs, successors and assigns, that Purchaser
shall have no right or power under any circumstance to Transfer any interest
in shares of the Stock which are "Non-Vested Shares," as determined by the schedule set forth in the Certificate, except to the Company. As used in this Agreement, "Vested Shares" means all shares
of the Stock which Purchaser
has the right to Transfer
at a specified point in time and "Non-Vested Shares" means all shares of the Stock which
Purchaser does not have the right to Transfer at a specified point in time. The Certificate sets forth the vesting schedule.

3.3    Company's
Repurchase Right.

3.3.1     
Scope of Repurchase Right. Unless they have become vested,
the Shares acquired under
this Agreement initially shall
be "Restricted Stock" and shall be subject to a right (but not an obligation) of repurchase by the Company (the "Repurchase Right"). The Purchaser shall not transfer, assign, encumber or otherwise dispose of any Restricted Stock, except as provided in the following
sentence. The Purchaser
may transfer Restricted Stock:

3.3.1.1     
By testament or intestate
succession or by transfer by instrument to a trust providing that the Restricted Stock is to be passed
to one or more beneficiaries upon death of the Settlor;
or

3.3.1.2     
To the Purchaser's "immediate family," as that term is defined
in the Plan (together, "Transferee").

Provided, however, in either case the Transferee must agree in writing
on a form prescribed by the Company to be bound by all provisions of this Agreement. If the Purchaser transfers any Restricted Stock,
then this Section
3 will apply to the Transferee to the same extent
as to the Purchaser.

 

3.3.2     Exercise
Period. The Repurchase Right shall be exercisable only during the 90-day period following
the later of the date when the Purchaser's service as an Employee, outside Director
or Consultant ("Service") terminates for any reason, with or without cause, including
(without limitation) death or disability.

 

3.3.3     Non Applicability and Lapse of Repurchase
Right. The Repurchase Right shall lapse with respect
to the Shares in accordance
with the vesting schedule set forth in the Certificate. In addition, the Repurchase Right shall lapse and all of such Stock shall become
vested if (i) a Change in Control occurs
before the Purchaser's Service terminates and (ii)
the options are not assumed by, or
Repurchase Right is not assigned
to, the entity that employs the Participant immediately after the Change in Control or to its parent or subsidiary.

 

The Repurchase Right
shall not exist with respect
to shares of Stock that have been registered under a then currently effective registration statement under applicable federal
securities laws and the issuer is subject to the reporting requirements of Section

 

-4-

13 or 15(d) of the Exchange Act or becomes an investment company registered or required to be registered under the Investment Company Act of 1940, or (ii) a determination is made by counsel for the Company that such Exercise
Price restrictions are not required in the circumstances under applicable federal or state securities laws.

 

3.3.4     
Repurchase Price. Following a termination of the Participant's Service, which does not result from the Company's
termination of Service for Cause, the Repurchase Right shall be exercisable at a price equal to (i) the Fair Market Value of vested Stock and (ii) the Purchase Price of unvested
Stock. Following the termination of the Participant's Service for Cause, the Repurchase Right shall be exercisable as to both vested and unvested Shares
at a price equal to the Purchase
Price as set forth in the Certificate.

 

3.3.5     Rights of Repurchase Adjustments. If there is any change in the number of outstanding shares of Stock by reason of a stock split, reverse stock split, stock dividend,
an extraordinary dividend
payable in a form other than stock, recapitalization, combination or reclassification, or a similar transaction affecting the Company's outstanding securities without
receipt of consideration, then (i) any new, substituted or additional securities or other property
(including money paid other than as an ordinary cash dividend) distributed with respect to any Restricted Stock (or into which such Restricted Stock thereby
become convertible) shall immediately be subject to the Right of Repurchase; and (ii) appropriate adjustments to reflect the distribution of such securities or property shall be made to the number and/or class of the Restricted Stock and to the price per share
to be paid upon the exercise
of the Right of Repurchase; provided, however, that the aggregate
Purchase Price payable for the Restricted Stock shall remain the same.

 

3.3.6      
Escrow. Upon issuance,
the certificates for Restricted Stock shall be deposited in escrow with the Company to be held in accordance with the provisions
of this Agreement. Any new, substituted or additional securities
or other property
described in Section 3.3.5 above shall immediately be delivered to the Company to be held in escrow,
but only to the extent
the Shares are at the time Restricted Stock. All regular
cash dividends on Restricted Stock
(or other securities at the time held in escrow) shall
be paid directly
to the Purchaser and shall not be held in escrow. Restricted Stock, together with any other assets or securities held in escrow
hereunder, shall be (i) surrendered to the Company
for repurchase and cancellation upon the Company's exercise
of its Right of Repurchase or Right of First Refusal or (ii) released to the Purchaser upon the Purchaser's request
to the extent the Shares are no longer Restricted Stock (but not more frequently than once every six months). In any event, all Shares which have vested (and any other vested assets and securities attributable thereto) shall be released within 60 days after the earlier of (i) the Purchaser's cessation
of Service or (ii) the lapse of the Right of First Refusal.

3.4    Retention of Non-Vested Shares.
Purchaser shall immediately deliver to the Company
each certificate representing Non-Vested Shares issued to Purchaser
hereunder, or deemed to be issued
to Purchaser hereunder, together with the collateral instruments of transfer
executed in blank,
to be held by the Company until such time as all shares represented by that certificate are Vested Shares and any indebtedness with respect to those shares has been paid in full; provided,
however, that if the Company
holds a certificate representing Vested Shares and Non-Vested
Shares, and any indebtedness with respect to the Vested
Shares has been paid in full, upon Purchaser's request the Company will cause a certificate representing the Vested Shares
to be

-5-

delivered to Purchaser, but the Company will retain any certificate representing the Non-Vested Shares.

 

3.5     Non-Complying Transfers. Every attempted
Transfer of any shares of the Stock in violation of this Section 3 shall be null and void ab initio,
and of no force or effect.

 

SECTION 4: LEGENDS ON STOCK CERTIFICATES.

 

Purchaser agrees that the Company
may place on each certificate representing Shares the following
legend:

 

"THE SECURITIES EVIDENCED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
OF EXCEPT IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN
THE ISSUER AND THE REGISTERED HOLDER OF THIS CERTIFICATE, WHICH AGREEMENT PROVIDES,
AMONG OTHER THINGS, THAT THE ISSUER HAS A RIGHT TO REPURCHASE THE SECURITIES EVIDENCED
BY THIS CERTIFICATE. A COPY OF THAT AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE
OF THE ISSUER."

 

SECTION 5: RIGHT OF FIRST REFUSAL.

 

5.1     Right of First Refusal.
In the event that the Stock is not readily
tradable on an established securities market and the Purchaser
proposes to sell, pledge or otherwise transfer
to a third party any Shares acquired
under this Agreement, or any interest
in such Shares,
to any person, entity
or organization (the "Transferee") the Company
shall have the Right of First Refusal
with respect to all (and not less than all) of such Shares (the "Right of First Refusal"). If the Purchaser
desires to transfer
Shares acquired under this Agreement, the Purchaser shall give a written
transfer notice ("Transfer Notice") to the Company
describing fully the proposed transfer, including
the number of Shares proposed to be transferred, the proposed transfer price, the name and address of the proposed Transferee
and proof satisfactory to the Company that the proposed
sale or transfer will not violate any applicable federal or state securities laws. The Transfer
Notice shall be signed both by the Purchaser
and by the proposed Transferee and must constitute a binding commitment of both parties
to the transfer of the Shares.
The Company shall have the right to purchase
all, and not less than all, of the Shares on the terms of the proposal described
in the Transfer Notice by delivery of a notice of exercise
of the Right of First Refusal within 30 days after the date when the Transfer
Notice was received
by the Company. The Company's rights under this Section
5 shall be freely assignable, in whole or in part.

 

5.2    Additional Shares or Substituted Securities. In the event of the declaration of a stock dividend,
the declaration of an extraordinary dividend payable in a form other than stock, a spin- off, a stock split, an adjustment in conversion ratio,
a recapitalization or a similar
transaction affecting the Company's
outstanding securities without receipt of consideration, any new, substituted or additional securities or other property (including money paid other than as an ordinary
cash dividend) which are by reason of such transaction distributed with respect
to any Shares subject
to this Section 5 or into which such Shares
thereby become convertible shall immediately be subject to this Section
5. Appropriate adjustments to reflect the distribution of such securities
or property shall be made to the number and/or class of the Shares subject to this Section
5.

 

5.3     
Termination of Right of First Refusal.
Any other provision
of this Section 5 notwithstanding, in the event that the
Stock is readily tradable on an established securities
market

 

-6-

when the Purchaser desires to transfer
Shares, the Company shall have no Right of First Refusal,
and the Purchaser shall have no obligation to comply with the procedures prescribed by this Section
5.

 

5.4     Permitted
Transfers. This Section
5 shall not apply to a transfer (i) by gift to a member
of the Participant's immediate family
or (ii) by transfer by instrument to a trust providing that the Shares
is to be passed to beneficiaries upon death of the Settlor.
For purposes of this
Section 5.4, "immediate family" shall mean the Purchaser's spouse (including a former
spouse subject to terms of a domestic
relations order); child, stepchild, grandchild, child-in-law; parent,
stepparent, grandparent, parent-in-law; sibling
and sibling-in-law, and shall include adoptive
relationships.

 

5.5    Termination of Rights as Stockholder. If the Company makes available, at the time and place
and in the amount and form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section
5, then after such time the person from whom such Shares are to be purchased shall no longer have any rights as a holder of such Shares
(other than the right to receive
payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to  have
been purchased in accordance with the applicable provisions hereof,
whether or not the certificate(s) therefor
have been delivered
as required by this Agreement.

 

SECTION 6: OBLIGATION TO SELL.

 

Notwithstanding anything herein to the contrary, if at any time following Purchaser's acquisition of Shares
hereunder, stockholders of the Company
owning 51% or more of the shares
of the Company (on a fully diluted basis) (the "Control Sellers") enter into an agreement
(including any agreement in principal) to transfer all of their shares to any person or group of persons who are not affiliated with the Control
Sellers, such Control Sellers may require
each stockholder who is not a Control Seller (a "Non-Control Seller") to sell all of their shares to such person or group of persons
at a price and on terms and conditions
the same as those on which such Control Sellers have agreed to sell their shares, other than terms and conditions relating
to the performance or non-performance of services. For the
purposes of the preceding sentence, an affiliate of a Control Seller is a person who controls,
which is controlled by, or which is under common control with, the Control
Seller.

 

SECTION 7: STOCKHOLDERS AGREEMENT.

 

As a condition to the transfer of Stock pursuant
to this Stock Purchase
Agreement, the Administrator, in its sole and absolute
discretion, may require the Participant to execute and become a party to any agreement by and among the Company
and any of its stockholders which exists on or after the Date of Grant (the "Stockholders Agreement"). If the Participant becomes a party to a Stockholders Agreement, in addition to the terms of the Plan and this Stock Purchase
Agreement, the terms and conditions of Stockholders Agreement
shall govern Participant's rights in and to the Stock; and if there is any conflict between
the provisions of the Stockholders Agreement and the Plan or any conflict between the provisions of the Stockholders Agreement and this Stock Purchase Agreement, the provisions of the Stockholders Agreement shall be controlling. Notwithstanding anything to the contrary
in this Section 7, if the Stockholders Agreement contains any provisions which would violate Colorado law if applied
to the Participant, the terms of the Plan and this Stock Purchase
Agreement shall govern
the Participant's rights
with respect to such provisions.

 

-7-

SECTION 8: WAIVER OF RIGHTS TO PURCHASE STOCK.

By signing
this Agreement, Purchaser acknowledges and agrees that neither the Company
nor any other person or entity is under any obligation to sell or transfer to Purchaser any option or equity security
of the Company, other than the shares of Stock subject to this Agreement
and any other right or option to purchase
Stock which was previously granted in writing
to Purchaser by the Board (or a committee thereof).
By signing this Agreement, except as provided
in the immediately preceding
sentence, Purchaser specifically waives all rights he or she may have had prior
to the date of this Agreement
to receive any option or equity security of the Company.

SECTION 9: INVESTMENT INTENT.

Purchaser represents
and agrees that if he or she purchases
the Stock in whole or in part and if at the time of such purchase
the Stock has not been registered under the Act, that he or she will acquire the Stock upon such purchase
for the purpose of investment and not with a view to the distribution of such Stock and upon each purchase, he or she will furnish
to the Company a written statement to such effect.

SECTION 10: GENERAL PROVISIONS.

10.1     
Further Assurances. Purchaser
shall promptly take all actions and execute all documents
requested by the Company
which the Company deems to be reasonably necessary to effectuate the terms and intent of this Agreement. Any sale or transfer of the Stock to Purchaser
by the Company shall be
made free of any and all claims, encumbrances, liens and restrictions of every kind, other than those imposed
by this Agreement.

10.2      
Notices. All notices,
requests, demands
and other communications under this Agreement shall be in writing and shall be given to the parties hereto
as follows:

If to the Company, to: 

TEREX OIL, INC.

520 Zang, Suite 250

Broomfield, CO 80021

10.2.1     If to Purchaser, to the address
set forth in the records
of the Company.

10.2.2       
Any such notice request, demand or other communication shall be effective
(i) if given by mail, 72 hours after such communication is deposited in the mail by first-class certified mail, return
receipt requested, postage
pre-paid, addressed as aforesaid, or (ii) if given by any other means, when delivered at the address
specified in this Section
10.2.

10.3     Transfer of Rights under
this Agreement. The Company may at any time transfer and assign its rights and delegate its obligations under this Agreement to any other
person, Company, firm or entity, including its officers, Directors and stockholders, with or without
consideration.

10.4     
Purchase Rights Non Transferable. Purchaser
may not sell, transfer, assign or otherwise dispose
of any rights hereunder except by 
testament or the laws of descent
and

-8-

distribution and the rights hereunder may be exercised during the lifetime of Purchaser only by the Purchaser or by his or her guardian or legal representative.

 

10.5     Market Stand-Off. In the event of an underwritten public offering
by the Company
of its equity securities
pursuant to an effective registration statement filed under the Act, including the Company's
initial public offering
(a "Public Offering"), Purchaser shall not transfer for value any shares of Stock without
the prior written consent
of the Company or its underwriters, for such period
of time from and after the effective date of such registration statement as may be requested
by the Company or such underwriters (the "Market Stand-Off"). The Market Stand-Off
shall be in effect for such period of time following
the date of the final prospectus for the offering
as may be requested by the Company
or such underwriters. In the event of the declaration of a stock dividend, a spin-off,
a stock split, an adjustment in conversion ratio,
a recapitalization or a similar transaction affecting
the Company's outstanding securities without receipt of consideration, any
new, substituted or additional securities which are by reason of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares
thereby become convertible, shall immediately be subject
to the Market Stand- Off. In order to enforce the Market Stand-Off, the Company
may impose stop-transfer instructions with respect
to the Shares acquired
under this Agreement until
the end of the applicable stand-off period.

 

10.6     Adjustment. If there is any change in the number of outstanding shares of Stock by reason of a stock split, reverse stock split, stock dividend, an extraordinary dividend payable in a form other than stock, recapitalization, combination or reclassification, or a similar
transaction affecting the Company's outstanding securities without receipt of consideration, then (i)
any new, substituted or additional securities or other property
(including money paid other than as an ordinary cash dividend) distributed with respect to any Restricted Stock (or into which such Restricted Stock thereby
become convertible) shall immediately be subject to the Repurchase Right; and (ii) appropriate adjustments to reflect the distribution of such securities or property
shall be made to the number and/or class of the Restricted
Stock and to the price per share to be paid upon the exercise
of the Repurchase Right; provided,
however, that the aggregate purchase price payable for the Restricted Stock shall remain the same.

 

10.7     Successors and Assigns. Except to the extent this Agreement is specifically limited by the terms and
provisions of this Agreement, this Agreement
shall be binding upon and inure to the benefit of the parties
hereto and their respective successor, assigns, heirs and personal representatives.

 

10.8      
Governing Law. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF COLORADO, WITHOUT
REGARD TO ITS CHOICE OF LAW PROVISIONS, AS COLORADO LAWS ARE APPLIED
TO CONTRACTS ENTERED
INTO AND PERFORMED
IN SUCH STATE.

 

10.9     
Severability. Should any paragraph or any part of a paragraph
within this Stock Purchase
Agreement be rendered
void, invalid or unenforceable by any court of law for any reason,
such invalidity or unenforceability shall not void or render invalid or unenforceable any other paragraph
or part of a paragraph in this Stock Purchase Agreement.

 

10.10     
Attorneys' Fees. In the event that any action, suit or proceeding is instituted upon any breach of this Agreement, the prevailing party shall be paid by the other party thereto an amount equal to all of
the prevailing party's costs and expenses, including
attorneys' fees incurred
in each and every such action, suit or proceeding (including any and all appeals or petitions

 

-9-

therefrom). As used in this Agreement, "attorneys' fees" shall mean the full and
actual cost of any legal services actually performed in connection with the matter involved calculated
on the basis of the usual fee charged by the attorney
performing such services
and shall not be limited to "reasonable attorneys' fees" as defined in any statute
or rule of court.

 

10.11     
The Plan. This Agreement is made pursuant to the Plan, and it is intended,
and shall be interpreted in a manner, to comply herewith. Any provision of this Agreement
inconsistent with the Plan shall be superseded and governed by the Plan.

 

10.12      
Miscellaneous. Title and captions contained in this Agreement
are inserted for convenience and reference only and do not constitute a part of this Agreement
for any purpose.

 

-10-

SPOUSAL CONSENT

 

The undersigned
spouse of                                                 does hereby consent
to the execution of the foregoing
Agreement by                                                                , and the performance by him (or her) of his (or her) obligations thereunder.

 

Dated:__________________________

 

_______________________________

Signature

 

-11-

EXHIBIT A

to ANNEX I

of

STOCK PURCHASE AGREEMENT PROMISSORY NOTE

  $                                                                             Date:
                                                           

FOR VALUE RECEIVED, the undersigned promises to pay to T-REX OIL, INC., a Colorado corporation, 520
Zang, Suite #250, Broomfield, Colorado 80021 (the "Company"), the principal sum of $                   with interest from the date hereof on the unpaid principal
balance at the rate of        % per
annum, compounded annually. Accrued but unpaid interest under
this Note shall be due and payable
annually on the date immediately preceding the anniversary of this Note, at the rate of % per annum, and the unpaid principal
balance  and  any  remaining  accrued  but  unpaid  interest
 shall  be  due  and  payable  on                             
..

 

All sums paid hereunder shall
be paid in lawful money of the United
States of America at the principal executive offices of the Company or at such other place as the holder of this Note shall have designated
to the undersigned in writing. The principal
amount of this Note may be paid in whole or in part (in either
case with any interest
accrued through the date of payment)
at any time or from time to time, prior to maturity, without
penalty or charge for prepayment. All sums paid hereunder shall be applied
first to any unpaid
interest and then to the principal amount then outstanding.

 

If service
of the undersigned with the Company
is terminated for any reason, with or without
cause, the holder
of this Note shall be entitled
at its option to demand payment of the full principal amount of this Note then unpaid,
together with all interest accrued
thereon to the date of payment,
by delivery to the undersigned of written demand. Not later than 30 days after delivery of such demand the undersigned shall pay the principal amount together with all accrued
interest.

 

The undersigned shall pay to the holder of this Note reasonable attorneys' fees and all costs and other expenses
(including, without limitation, fees, costs and expenses of litigation) incurred by the holder
in enforcing this Note. This Note is secured
by a Security
Agreement of even date herewith
between the Company and the undersigned. The holder of this Note is entitled
to the benefits of the Security Agreement and may enforce the agreements of the undersigned contained therein and exercise the remedies provided
for thereby or otherwise
available with respect
to this Note.

Borrower:

Print name and Address:

EXHIBIT B

to ANNEX I

of

STOCK PURCHASE AGREEMENT SECURITY AGREEMENT

THIS SECURITY AGREEMENT (the "Security Agreement") is made and entered into as of the         day of                           ,
______, between
T-REX OIL,INC. a Colorado corporation ("Lender") and                                                 ("Debtor").

WHEREAS, Debtor has concurrently herewith
purchased from Lender    shares of Lender's Stock    (the  
 "Stock")    pursuant    to    that    certain  
 Stock    Purchase    Agreement,  
 dated                                ,
between Lender and Debtor (the "Purchase Agreement") and has made payment therefor
by delivery of Debtor's
promissory note of even date herewith (the "Note"); and

WHEREAS, Debtor and Lender desire to have Debtor grant to Lender a security interest in the collateral described below as security
for Debtor's performance of the
terms and conditions of the Purchase
Agreement, the Note and this Security
Agreement.

NOW, THEREFORE, on the basis of the above facts and in consideration of the mutual covenants and agreements set forth below, Lender
and Debtor agree as follows:

SECTION 1: GRANT OF SECURITY INTEREST.

As security
for Debtor's full and faithful performance of each and all of its obligations and liabilities under the Note, and any and all modifications, extensions or renewals
thereof, the Purchase
Agreement and this Security
Agreement, Debtor hereby grants and assigns
to Lender a continuing security
interest in and to the Stock, and all stock dividends, cash dividends, liquidating dividends, new securities
and all other property,
moneys and rights to which Debtor may become entitled
on account thereof
(the "Collateral").

SECTION 2: PERFECTION OF SECURITY INTEREST.

To perfect Lender's
security interest in and lien on the Collateral, Debtor shall, upon  the execution of this Agreement, immediately deliver to Lender, together with collateral instruments of transfer executed
in blank, all certificates representing the Stock to be held by Lender until released pursuant
to Section 6 hereof.

SECTION 3: DEFAULT.

At the sole and exclusive option of Lender, upon an Event of Default (as defined in Section 3.2 below)
Lender may exercise any or all of the rights and remedies
of a secured party under the Colorado
Uniform Commercial
Code, as amended from time to time. All rights and remedies of Lender shall
be cumulative and may be exercised
successively or concurrently and without impairment of Lender's
interest in the Collateral.

As used herein, an Event of Default ("Event of Default") shall mean any of the following:

The failure
of Debtor to perform any of its obligations under the Purchase
Agreement, the Note or this Security
Agreement; or

The occurrence of one or more of the following: (i) Debtor becoming the subject of any case or action or order for relief under the Bankruptcy Reform Act of 1978; (ii) the filing by Debtor of a petition or answer to take advantage
of any bankruptcy, reorganization, insolvency, readjustment of debts, dissolution or liquidation law or statute, or the filing of any answer admitting the material allegations of a petition
filed against Debtor in any
proceeding under any such law or the taking of any action by Debtor for the purpose of effecting
the foregoing; the appointment of a trustee,
receiver or custodian of Debtor or any of Debtor's
material assets
or properties; (iii)
Debtor making an assignment for the benefit of creditors; or (iv) the occurrence of any other act by Debtor or Debtor's creditors which Lender
reasonably determines may jeopardize Debtor's ability
to pay the Note or perform Debtor's obligations under the Purchase
Agreement or this Security Agreement.

SECTION 4: WARRANTIES AND REPRESENTATIONS OF DEBTOR.

Debtor hereby
represents and warrants
that the Collateral is free and clear of any security
interest, lien, restriction or encumbrance and that he has the full right and power to transfer the Collateral to Lender free and clear thereof and to enter
into and carry out the Purchase
Agreement, the Note and this Security
Agreement.

SECTION 5: POWER OF ATTORNEY.

Debtor hereby appoints
Lender's Secretary
as his true and lawful attorney-in-fact to transfer the Collateral or cause it to be transferred on Lender's
books whenever Lender determines in its sole and
absolute discretion that such transfer is necessary or advisable to protect its rights or
interests under this Security
Agreement.

SECTION 6: RELEASE OF THE COLLATERAL.

Within five days following
receipt by Lender of the unpaid principal
amount of the Note from Debtor,
Lender shall release
from its security
interest hereunder and deliver or cause to be delivered to Debtor the Stock.

SECTION 7: WAIVERS.

No waiver
by Lender of any
breach or default by Debtor under the Purchase Agreement, the Note or this Security Agreement
shall be deemed a waiver of any breach or default thereafter
occurring, and the taking of any action by Lender
shall not be deemed an election of that action
in exclusion of any other action. The rights,
privileges, remedies and options
granted to Lender under this Security Agreement or under any applicable law shall be deemed cumulative and may be exercised successively or concurrently.

SECTION 8: GENERAL PROVISIONS.

8.1    Notices. All notices, requests,
demands or other communications under this Security
Agreement shall be in writing and shall be given to parties hereto as follows:
If to the Company,
to:

T-REX OIL, INC.

520 Zang, Suite #250

Broomfield, CO 80021

If to Debtor, to the address
set forth in the records of the Company,
or such other address as may be furnished by either
such party in writing
to the other party hereto.

Any such notice,
request, demand or other communication shall be effective
(i) if given by mail, 72 hours after
such communication is deposited in the mail by first-class certified mail, return
receipt requested, postage
prepaid, addressed as aforesaid, or (ii) if given by any other means,
when delivered at the address
specified in this Paragraph 8.

8.2    Successors and Assigns. This Security Agreement
shall be binding
upon and inure to the benefit of the parties
hereto and their respective successors, assigns, heirs and personal
representatives.

8.3     Severability. Should any paragraph
or any part of a paragraph
within this Security Agreement be rendered void, invalid or unenforceable by any court of law for any reason, such invalidity or unenforceability shall not void or render invalid
or unenforceable any other paragraph
or part of a paragraph in this Security Agreement.

8.4      
Governing Law. THIS AGREEMENT
SHALL BE GOVERNED
BY, AND CONSTRUED
IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF COLORADO
WITHOUT REGARD TO ITS CHOICE OF LAW PROVISIONS, AS COLORADO LAWS ARE APPLIED
TO CONTRACTS ENTERED
INTO AND PERFORMED
IN SUCH STATE.

8.5    Attorneys' Fees. In the event that any action, suit
or proceeding is instituted upon any breach
of this Security Agreement, the prevailing party shall be paid
by the other party thereto
an amount equal to all of the prevailing party's costs and expenses,
including attorneys' fees incurred in each and every such action, suit or proceeding (including any and all appeals or petitions therefrom). As used in this Agreement,
"Attorneys' Fees" shall mean the full and actual cost of any legal services
actually performed
in connection with the matter involved
calculated on the basis of the usual
fee charged by the
attorney performing such services and shall not be limited
to "reasonable attorneys' fees" as defined in any statute
or rule of court.

8.6    Entire Agreement. The making, execution
and delivery of this Security
Agreement by the parties hereto have been induced by no representations, statements, warranties or agreements other than those herein expressed. This Security Agreement, the Purchase Agreement and the Note embody the entire understanding of the parties and there are no further or other agreements or understandings, written
or oral, in effect between the parties relating
to the subject matter hereof,
unless expressly referred
to by reference herein.

8.7    Miscellaneous. Titles and captions
contained in this Security Agreement
are inserted for convenience of reference only and do not constitute part of this Security Agreement
for any other purpose.

IN  WITNESS  WHEREOF,  the  parties
 hereto  have  executed  and  delivered
 this  Security Agreement as of the date first above
written.

 

DEBTOR:                                                    
LENDER: T-REX
OIL, INC.   

                                                                   
By:____________________

(Sign)                                                           
Donald Walford

                                                                    
Its: President and CEO

 

(Please print name and address)

 

_____________________________

_____________________________

 

EXHIBIT C

to ANNEX I

of

STOCK PURCHASE
AGREEMENT

STOCK ASSIGNMENT SEPARATE
FROM CERTIFICATE

For Value Received,                                                               ("Holder") hereby
sells, assigns and transfers
unto                                                                                            (_         ) shares (the "Shares") of the Stock of T-Rex Oil, Inc., a Colorado corporation (the "Company"), held of record by Holder
and represented by Certificate No.    , and hereby irrevocably constitutes and appoints as
Holder's attorney to transfer the Shares
on the books of the Company,
with full power of substitution in the premises.

The signature to this assignment must correspond with the name written upon the face of the Certificate in every particular without
any alteration or addition or any other change.

Dated

------------------------------

-------------------------------------------------------------------------------

(Signature of Holder)

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

(Please print name and address)

SIGNATURE GUARANTEED BY:

(Holder's signature must be guaranteed by a bank, a trust company or a brokerage firm):

----------------------------------------------------

----------------------------------------------------

LETTER REGARDING

FEDERAL AND COLORADO TAX CONSEQUENCES

T-Rex
Oil, Inc.

520
Zang,  Suite #250

Broomfield, CO 80021

[Purchaser]

Dear :

------------------------------

This letter is to notify you of certain federal and Colorado income tax consequences to you as a result of your purchase
of shares (the "Shares") of Common Stock of T-Rex Oil, Inc. (the "Company") pursuant
to the Stock Purchase
Agreement dated                                        , 2014 between you and the Company.

The conclusion of this letter is that, if the purchase price for the Shares equals their fair market value on the
date you sign the Stock Purchase Agreement, you should send copies of the attached form (the "Section 83 Form") relating to Section
83 ("Section 83") of the Internal
Revenue Code of 1986 (the "Internal Revenue Code"), to the Internal
Revenue Service and the Company,
not later than 30 days after the date of the Stock Purchase
Agreement. If the purchase
price for the Shares is less than their fair market value on the date you sign the Stock Purchase Agreement, you should consider carefully whether or not you should file the Section 83 Form within 30 days after you sign the Stock Purchase
Agreement.

Federal Income Tax Consequences

Certain federal income tax consequences to you in connection with your purchase of the Shares are determined in accordance with Section 83.

Section 83(a). Under Section 83(a), a person to whom property is transferred in connection with the performance of services ("Section 83 property") must recognize
ordinary income in the year the property
is transferred in an amount equal to the fair market value of the Section 83 property at the time it is transferred less the amount, if any, paid for the Section 83 property,
unless the Section
83 property is not transferable and is subject to a substantial risk of forfeiture (collectively, a "Restriction on Transfer"). If there is a Restriction on Transfer, then the person acquiring Section 83 property
will not recognize income until the Restriction on Transfer lapses
(unless a Section 83(b) election is made - see below), at which time the person must recognize as ordinary
income the fair market value of the Section 83 property at that time less the amount, if any, paid for the Section
83 property.

Your purchase
of the Shares probably constitutes a transfer of Section 83 property. Further, the Stock Purchase Agreement provides
that, if you cease to be employed
by the Company for any reason,
the Company must repurchase from you and you must sell to the Company
all Non- Vested Shares (as defined in the Stock Purchase Agreement) for an amount which may be less than their fair market value. Under Regulations promulgated under Section 83, these provisions probably constitute a Restriction on Transfer
over your Non-Vested Shares. Thus, under Section 83(a),
you would not be required
to recognize any income as a result
of your purchase
of the Shares until they vest; when they vest, you would be
required under Section 83(a)
to recognize as ordinary income the excess, if any, of the
fair market
value of the Shares (as of the day
they vest) over the price you paid for those Shares under the Stock Purchase Agreement. If the price of the Company's
Common Stock is greater when the Shares vest than when you purchased them, you could have a substantial tax liability in connection with your purchase
of the Shares when they vest.

 

Section 83(b) Election.
Section 83(b) provides an alternative method
for taxing Section
83 property. Under Section 83(b),
a person may elect to recognize ordinary income in the year Section
83 property is transferred to him or her, rather then waiting
until it vests. Thus, if you make a Section 83(b) election, you will be required to recognize
as ordinary income in the year you purchase the Shares the difference, if any, between the fair
market value of the Shares on the date you sign the Stock Purchase
Agreement and the purchase price you pay for the Shares. For example, if you make the Section 83(b)
election and you paid a purchase price
for the Shares equal
to their fair market value, you will not pay any taxes in the year of the purchase
in connection with your purchase
of the Shares. On the other hand, if you make the Section 83(b) election and the purchase
price of the Shares is less than their fair market value on the date you sign the Stock Purchase Agreement, you will be required to pay taxes on the difference between those amounts in the year of the purchase. In either case, however, if you make the Section 83(b) election, you will not be required to recognize any income
when the Shares
vest.

 

To make the Section 83(b) election, you must file the Section 83 Form with both the Company and the Internal Revenue Service office where you file federal income tax returns. You must file the Section 83(b) Form
within 30 days after you sign the Stock Purchase
Agreement. In addition,
you must attach a copy of the Section 83(b) Form to your income tax return that covers the year in which you filed the Form.

 

Sale of Section 83 Property. If a person sells Section 83 property after the
Restriction on Transfer
lapses (or after making
a Section 83(b) election), he or she will recognize
taxable gain or loss equal to the difference between the amount realized upon the sale of the Section 83 property and the person's "adjusted basis" for the Section 83 property. The person's adjusted
basis for the Section 83 property
will be (i) the amount paid for the Section 83 property plus (ii) any amount which the person has included in gross income pursuant to the Section 83(b)
election. Thus, upon sale, you will recognize
taxable gain or loss equal to the difference between the sale price of the Shares and your adjusted basis for the Shares.

 

In general,
the gain or loss you recognize will be capital
gain or loss if the following "Capital Gain Requirements" are met: (i) the Section 83 property is a capital asset and (ii) the Section 83 property
is held for more than 12 months from either the date the Restrictions on Transfer lapse or, if a Section 83(b) election
is made, the date the Section 83 property
is acquired. Thus, as the Shares
are probably a capital
asset in your hands, you will recognize capital
gain or loss upon their sale if you hold them
for more than 12 months from
either the date they
vest or, if you make the Section 83(b) election,
from the date you sign the Stock Purchase Agreement.

Forfeiture of Section 83 Property. If a person's interest in Section 83 property
is forfeited, the person will recognize gain or loss equal to the difference between the amount realized upon forfeiture and the amount paid for the Section 83 property. In your case, if
your employment with the Company is terminated before all of the Shares have vested, the Company
is obligated to repurchase from you, and you are obligated
to sell to the Company, any Non-Vested Shares
at the price you paid for them. As there would be no difference between the amount
realized upon forfeiture and the amount paid for the Shares,
you would not be required
to recognize any gain or loss at that time. However,
upon forfeiture, you would not be able to recoup any taxes you pay pursuant to a Section
83(b) election.

 

Colorado Income Tax Consequences.

 

The Colorado
income tax consequences to you in connection with your purchase of the Shares
are identical to the federal
income tax consequences. To make the Section 83(b) election
in Colorado, you must file the Section 83(b) Form with the Internal
Revenue Service, as described above;
there are no extra filing requirements for making the Section
83(b) election in Colorado.

 

If you have any questions concerning the tax consequences described
in this letter, please feel free to call me.

Sincerely,

T-Rex Oil,
Inc.

By:                                                                                              

Donald Walford

Its: President and CEO

ELECTION TO INCLUDE
IN GROSS INCOME
IN YEAR OF TRANSFER
PURSUANT TO SECTION
83(b) OF THE INTERNAL
REVENUE CODE

 

The undersigned hereby makes
an election pursuant to the provisions of Section 83(b) of the Internal
Revenue Code of 1986, as amended, and the regulations of the
Commissioner of Internal Revenue promulgated thereunder, with respect to the Section 83 property described
below, and supplies
the following information in connection with that election:

The name,
address, taxable year and taxpayer identification number of the undersigned are: 

Name:

Address:

Taxable Year

 

Taxpayer I.D. No.

 

The description of the Section 83 property
with respect to which the undersigned is making the election is as follows:

 

                             (          ) shares
(the "Subject Shares") of the Common
Stock of T-Rex Oil, Inc., a Colorado corporation (the "Company").

The date upon which the Subject Shares
were transferred to, and acquired by, the undersigned was_____________.

The  Subject  Shares  are  subject
 to  restrictions
 under  a                     vesting  period.  If  the undersigned's employment terminates, the Company is obligated to purchase and the
undersigned is obligated to sell to the Company all Subject Shares that are not vested
for a purchase
price, which in certain
circumstances may be less than the fair market value
of the Subject Shares.

 

The fair market value of the Subject Shares at the time of the transfer to, and acquisition by, the undersigned (determined without regard to any restrictions other than restrictions which by their terms will never lapse) was $        
 per
share.

 

The amount paid by the undersigned for the Subject
Shares was $       per share.
The undersigned has furnished a copy of this election
to the Company.

[Signature Page Follows]

Dated:

---------------------------

------------------------------------------------------

(Signature)

Make 4 copies

(1) IRS (to be filed at the IRS where you ordinarily file your returns) within
30 days of the purchase

(1) IRS (to be filed with your income tax return)

(1) T-Rex Oil, Inc.

(1) Copy for purchaser

FORM OF RESOLUTIONS FOR PURCHASE RIGHTS
GRANTS

RESOLUTIONS ADOPTED
BY UNANIMOUS WRITTEN
CONSENT OF THE BOARD OF DIRECTORS OF

T-REX
OIL, INC.

As of                                   , 2014

The undersigned directors, constituting the entire board of directors (the "Board") of T-REX
OIL, INC., a Colorado
corporation (the "Company"), hereby
take the following actions,
adopt the following
resolutions, and transact the following business, by written consent
without a meeting,
as of the date above written, pursuant
to the applicable corporate
laws of the State of Colorado and the Company's Bylaws.

 

WHEREAS, The Company Previously Adopted the 2014 T-REX
OIL, INC. STOCK OPTION
AND AWARD PLAN (The "Plan"), and has delegated the responsibility to administer the Plan to the Board;

WHEREAS, Two Million (2,000,000) 
shares  of  Common  Stock  of the  Company  were originally reserved
for issuance under the Plan;

 

WHEREAS, as of the date hereof,             issuance under the Plan;
and Million (   ,000,000) shares
remain available for

WHEREAS, the Board has determined that it is in the best interests of this company and its stockholders to provide, under the plan,
equity incentives to those employees
of the company identified below.

 

NOW, THEREFORE, BE IT RESOLVED,
that the persons
listed on the Exhibit A, which exhibit
was reviewed by the Board and shall be included
with this Consent, are hereby granted,
as of the date hereof, the current right to purchase (the "Purchase Right") the number of shares at the per share purchase price as set forth in Exhibit A at any time on or prior to the date which is 15 days from the date this grant
is first communicated to each recipient;

 

RESOLVED FURTHER,
that this Company be, and it hereby is, authorized to accept a promissory note from each purchaser as consideration for the stock so purchased, in such form (including security
for the obligation thereunder) heretofore approved by the Board;

 

RESOLVED FURTHER,
that the officers
of this Company,
and each of them, be, and they hereby are, authorized, directed
and empowered for and on behalf of this Company to prepare or cause to be
prepared a stock purchase agreement, promissory note and/or
security agreement (the "Purchase Agreements") to represent
the rights granted at this meeting substantially in the form, and containing the terms and provisions, heretofore approved by the Board, and containing such other terms and provisions as such officers
shall, upon advice of counsel, determine to be necessary or appropriate, their execution of such Purchase
Agreements to conclusively evidence
such determination;

RESOLVED FURTHER,
that the Purchase Rights shall be evidenced
by stock purchase agreements and be subject to the restrictions (including transfer
and/or repurchase rights),
if any, set forth in such stock purchase
agreements;

 

RESOLVED FURTHER,
that the Purchase
Rights shall be granted pursuant
to the exemptions provided
under Section 701 of the Securities Act Rules and Colorado Corporate
Securities Laws;

 

RESOLVED
FURTHER, that there is hereby reserved and set aside under the Plan the number
of shares adequate
to cover the shares underlying the Purchase Rights
granted herein;

 

RESOLVED FURTHER,
that upon receipt
of executed Purchase
Agreements from the person or persons granted rights hereunder, the officers of this Company, and each of them, be, and they hereby
are, authorized, directed
and empowered for and on behalf of this Company to issue the stock so purchased, and to do or cause to be done all such further
acts and things and to sign,
deliver and/or file all such documents and notices
as any of such officers may deem necessary or advisable
in order to carry out and perform the foregoing resolutions and the intention
thereof; and

 

RESOLVED FURTHER,
that the officers
of this Company,
and each of them, be, and they hereby
are, authorized, directed and empowered for and on behalf
of the Company to do or cause to be done all such acts and things and to sign, deliver and/or file all such documents and notices as any of such officers may deem necessary or advisable in order to carry out and perform
the foregoing resolutions and the intention thereof.

 

The Secretary
of the Corporation is directed
to file the original executed
copy of this Consent with the minutes of proceedings of the Board.

 

IN WITNESS WHEREOF, each of the undersigned has executed this consent as of the date first written above.

DIRECTORS:

____________________________________       
________________________________________

EXHIBIT A

Purchase Rights Grant Information

 

	
  Name

  	
  No. Shares

  	
  Purchase Price*

  
	

  	

  	

  
	

  	

  	

  
	

  	

  	

  
	

  	

  	

  
	

  	

  	

  
	

  	

  	

  
	

  	

  	

  
	

  	

  	

  
	

  	

  	

  

 

* The per share purchase price must be at least 85% of the Fair Market Value (as such term is defined
in the Plan) of the underlying share as of the date of grant.AGREEMENT AND PLAN OF MERGER

AGREEMENT AND PLAN OF MERGER

This Agreement and Plan of
Merger ("Agreement") is made and entered into as of December 22, 2014 (the
"Effective Date"), by and among T-Rex Oil, Inc., a Colorado corporation,
with its principal office at 7609 Ralston Road, Arvada, CO  80002  ("TRXO"),
Terex Energy Corp., a Colorado corporation ("TEREX"), and Terex
Acquisition Corp., a newly-formed wholly-owned subsidiary of TRXO, domiciled in
Colorado ("Acquisition Sub"). Each of TRXO, TEREX and Acquisition Sub is
referred to herein individually as a "Party," or collectively as the "Parties."

RECITALS

A.        TRXO and TEREX intend
to effect a merger, pursuant to which Acquisition Sub will merge with and into TEREX
and TEREX will survive, as a result of which the entire issued share capital of
TEREX (the "TEREX Shares") will be deemed for all purposes to
represent shares of common stock, par value $0.001 per share, of TRXO upon the
terms and subject to the conditions set forth in this Agreement. 

B.         The Parties intend that the Merger contemplated by this
Agreement will qualify as a tax-free reorganization within the meaning of
Section 368(a) of the Internal Revenue Code of 1986, as amended, and the rules
and regulations promulgated thereunder (the "Tax Code").

C.        The Parties intend
that the effective date hereof shall be December 31, 2014 regardless of the
execution date or the closing after conditions are met.

NOW, THEREFORE, in
consideration of the foregoing and the representations, warranties and mutual
covenants herein made, the parties hereby agree to the foregoing and as
follows:

Section 1.               
Definitions. Capitalized terms not
otherwise defined herein have the meanings set forth in the attached Schedule
1.

Section
2.               
The Merger.

    (a)               
Effecting the Merger. Upon the terms and subject to the
conditions contained in this Agreement, at the Effective Time (as hereinafter
defined), (i) Acquisition Sub shall be merged with and into TEREX (the "Merger");
(ii) the separate corporate existence of Acquisition Sub shall thereupon cease
and TEREX will continue as the surviving corporation in the Merger and
wholly-owned subsidiary of TRXO (sometimes referred to herein as the "Surviving
Subsidiary"), (iii) all the properties, rights and privileges, and power of TEREX,
shall vest in the Surviving Subsidiary, and all debts, liabilities and duties
of TEREX shall become the debts, liabilities and duties of the Surviving
Subsidiary, and (iv) each share of common stock of Acquisition Sub issued and
outstanding immediately prior to the Effective Time will be converted into and
exchange for one validly issued, fully paid and non-assessable share of the
Surviving Subsidiary's common stock. 

    (b)              
Effect on Capital Stock.

        (i)                 
Conversion of TEREX Shares. At the Effective Time, each TEREX Share
issued and outstanding on the Closing Date (as defined in Section 3, below)
shall, by virtue of the Merger and without any action on the part of TEREX, TRXO,
Acquisition Sub, or the holders of the TEREX Shares as of the Closing  

-1-

Date (the
"Original Holders"), be converted into and will become one share of
validly issued, fully paid and non-assessable common stock of TRXO (the "Share
Ratio") such that the Original Holders will be issued a total of 7,385,700
shares of TRXO (the "TRXO Common Stock") following the conversion. All
shares of TRXO Common Stock issued upon the surrender for exchange of TEREX Shares
in accordance with the terms hereof shall (i) contain a restricted securities
legend in compliance with the Securities Act and (ii) be deemed to have been
issued in full satisfaction of all rights pertaining to such TEREX Shares. There
shall be no further registration of transfers on the stock transfer books of TEREX
of the TEREX Shares that were outstanding immediately prior to the Effective
Time.  

        (ii)               
Fractional Shares. No fractional shares will be issued in connection
with the conversion of TEREX Shares into TRXO Common Stock, and any right to
receive a fractional share will be rounded-up to the nearest whole share. 

        (iii)              
Cancellation of TEREX Shares. At the Effective Time, the TEREX Shares
will be deemed canceled and retired and will cease to exist, and each holder of
a certificate for TEREX Shares will cease to have any rights with respect
thereto; provided, however, that, following the Closing Date,
upon surrender of an original stock certificate representing TEREX Shares, TRXO
will deliver a stock certificate for shares of TRXO Common Stock to which such
person is entitled pursuant to the Share Ratio, bearing any necessary or
appropriate restrictive legend. The effect of the Merger shall be as provided
in the applicable provisions of Colorado Law.

        (iv)             
Lost, Stolen or Destroyed Certificates. If any certificate
evidencing TEREX Shares shall have been lost, stolen or destroyed, upon the
making of an affidavit of that fact by the person claiming the certificate to
be lost, stolen or destroyed and, if required by TRXO, the posting of an
indemnity bond, in such reasonable amount as TRXO or the transfer agent may direct,
as collateral security against any claim that may be made with respect to the
certificate, TRXO will issue in exchange for the lost, stolen or destroyed
certificate the applicable number of shares of TRXO Common Stock.

        (v)               
At the Effective Time, each share of common stock of Acquisition Sub ("Acquisition
Sub Stock") issued and outstanding immediately prior to the Effective Time
shall be converted into and exchanged for one validly issued, fully paid,
nonassessable share of common stock of the Surviving Subsidiary. Each stock
certificate evidencing ownership of any shares of Acquisition Sub Stock shall,
at the Effective Time, evidence ownership of such shares of capital stock of
the Surviving Subsidiary. 

    (c)               
Reorganization. The Parties intend to adopt this Agreement and
the Merger as a plan of reorganization under Section 368(a) of the Tax Code. The
shares of TRXO Common Stock issued in the Merger will be issued solely in
exchange for TEREX Shares, and no other transaction other than the Merger
represents, provides for or is intended to be an adjustment to the
consideration paid for the TEREX Shares. No consideration that could constitute
"other property" within the meaning of Section 356(b) of the Tax Code is being
transferred by TRXO for TEREX Shares in the Merger. The parties shall not take
a position on any tax return inconsistent with this Section 2(c). 

    (d)              
Further Actions. If at any time after the Effective Time, TRXO or
TEREX reasonably determines that any deeds, assignments, or instruments, or
conformations of transfer are necessary or desirable to carry out the purposes
of this Agreement, the officers and directors of TRXO and TEREX are fully 

-2-

authorized in the name of
their respective corporations or otherwise to take, and will take, all such
lawful and necessary or desirable actions.

    (e)               
Options and Warrants:  There are Warrants, subject to vesting, to
purchase 800,000 shares of TEREX common stock, to executives of TEREX,
exercisable at $1.00
per share for 3 years, and there are 1,150,000 Options, subject to vesting, to
purchase TEREX common stock exercisable at $0.10 per share for 3 years. TRXO shall issue exchange
Warrants and Options upon like terms to
replace the TEREX Warrants and Options.

    (f)     Piggy-Back
Registration Rights. 

        (i)                 
In the event TRXO proposes to file a registration statement with the SEC
pursuant to the Securities Act covering the public offering of any of its stock
(other than a registration relating solely to the issuance of securities by TRXO
pursuant to a stock option, stock purchase or similar benefit plan or an SEC
Rule 145 transaction), TRXO shall promptly give each Original Holder written
notice of such registration.  TRXO shall use all reasonable efforts to cause to
be registered all of the shares of TRXO Common Stock that each such Original
Holder has requested to be included in such registration.  Notwithstanding any
other provision of this Agreement and regardless of the registration of any shares
of TRXO Common Stock, the shares of TRXO Common Stock will continue to be
subject the lock up provisions specified in Section 2(f).

        (ii)               
TRXO shall have the right to terminate or withdraw any registration
initiated by it under this Section 2(f) before the effective date of such
registration, whether or not any Original Holder has elected to include shares
of TRXO Common Stock in such registration.  

        (iii)              
All expenses (other than underwriting discounts and commissions and
stock transfer taxes and fees) incurred in connection with any registration
pursuant to Sections 2(f) including, without limitation, registration, filing
and qualification fees, printers' and accounting fees, fees and disbursements
of counsel for TRXO shall be borne by TRXO.

        (iv)             
If a registration of which TRXO gives notice under this Section 2(f) is
for an underwritten offering, then TRXO shall so advise the Original Holders. 
In such event, the right of any Original Holder to include such Original
Holder's shares of TRXO Common Stock in such registration shall be conditioned
upon such Original Holder's participation in such underwriting and the
inclusion of such Original Holder's shares of TRXO Common Stock in the
underwriting to the extent provided herein.  All Original Holders proposing to
distribute their shares of TRXO Common Stock through such underwriting shall
enter into an underwriting agreement in customary form with the managing
underwriters selected for such underwriting.  Notwithstanding any other
provision of this Agreement, if the managing underwriters advise TRXO that
marketing factors require a limitation of the number of shares of TRXO Common
Stock to be underwritten or exclusion of the shares of TRXO Common Stock, then
the managing underwriters may exclude the shares of TRXO Common Stock from the
registration and the underwriting.  If any Original Holder disapproves of the
terms of any such underwriting, such Original Holder may elect to withdraw
therefrom by written notice to TRXO and the managing underwriters.  Any shares
of TRXO Common Stock excluded or withdrawn from such underwriting shall be
excluded and withdrawn from the registration.

-3-

    (g)               
The covenants contained in Section 2g(i) above shall survive the closing
and shall be enforceable whether or not contained in a separate agreement.

Section 3.               
Closing. 

    (a)               
Closing Date. On the terms and subject to the conditions
of this Agreement, the closing of the Merger (the "Closing") shall be
effective as soon as all of the conditions hereof are met and any document
deliveries take place at the offices of TRXO, on December 22, 2014, at 10:00
a.m. MST, or such other time, date or place as TRXO and TEREX shall otherwise
agree (the "Closing Date").

    (b)              
Documents to be Delivered by TRXO. On or before the Closing, TRXO
will deliver or cause to be delivered to TEREX:

        (i)                 
all consents or approvals required to be obtained by TRXO for the
purposes of completing the Merger;

        (ii)               
a certified copy of a resolution of the directors of TRXO dated as of
the Closing Date appointing two specified new Directors to the board of
directors of TRXO;

        (iii)              
certified copies of such resolutions of the directors of TRXO as are
required to be passed to authorize the execution, delivery and implementation
of this Agreement;

Section 4.               
Directors and Officers of TRXO.  Effective
as of the Closing, (a) the current directors of TRXO shall remain and (b) the
current officers of TRXO shall remain in their current officer positions with TRXO.

Section 5.               
TEREX's Representations and Warranties.  TEREX represents and warrants to TRXO that the statements contained in
this Section are true and correct as of the Effective Date and will be true and
correct as of the Closing Date, as set forth herein and in the disclosure
schedule delivered by TEREX to TRXO (the "TEREX Schedule"), arranged in sections corresponding to the
paragraphs in this Section; the disclosure in any section or paragraph will
qualify other paragraphs in this Section to the extent that it is reasonably
apparent from a reading of the disclosure that it also qualifies or applies to
such other paragraphs.

    (a)               
Organization.  TEREX is a corporation validly existing and in
good standing under the laws of the State of Colorado and has all requisite
power and authority and possesses all necessary governmental approvals
necessary to own, lease and operate its properties, to carry on its business as
now being conducted, to execute and deliver this Agreement and the agreements
contemplated herein, and to consummate the transactions contemplated hereby and
thereby. TEREX is duly qualified to do business and is in good standing in all
jurisdictions in which its ownership of property or the character of its
business requires such qualification, except where the failure to be so
qualified would not reasonably be expected to have an Adverse Effect. Certified
copies of the Certificate of Incorporation of TEREX, as amended to date,
each as currently in effect, have been made available to TRXO, are complete and
correct, and no amendments have been made thereto or have been authorized since
the date thereof. TEREX is not in violation of any of the provisions of its Certificate
of Incorporation or Bylaws. 

-4-

    (b)              
Capitalization.

        (i)                 
TEREX's authorized capital ownership interests consists solely of 100,000,000
TEREX Common Shares, as of date hereof. 

        (ii)               
There are 7,385,700 TEREX Shares outstanding and no other authorized or
issued TEREX Shares or other measure of capital ownership of TEREX. Except as
shown on the Warrants and Options Schedule 5.b.1, there are no agreements,
arrangements or understandings to which TEREX is a party (written or oral) to
issue any other TEREX Shares or other measures of capital ownership of TEREX.
All of the outstanding TEREX Shares were duly and validly issued and fully
paid, are non-assessable and free of preemptive rights, and were issued in
compliance with all applicable state and federal securities laws. 

        (iii)              
Except as provided in the TEREX Schedule, there are no outstanding (A)
options, warrants, or other rights to purchase from TEREX any TEREX Shares or
other measures of capital ownership of TEREX; (B) debt securities or
instruments convertible into or exchangeable for TEREX Shares or other measures
of capital ownership of TEREX; or (C) commitments of any kind for the issuance
of additional TEREX Shares or options, warrants or other securities of TEREX.

        (iv)             
There are no options or other rights to acquire such Shares or other
measures of capital ownership and there are no preemptive rights or agreements,
arrangements or understandings to issue preemptive rights with respect to the
issuance or sale of any TEREX Shares or other measures of capital ownership of TEREX
created by statute, the Certificate of Incorporation or Bylaws, or any
agreement or other arrangement to which TEREX is a party or to which it is
bound and there are no agreements, arrangements or understandings to which TEREX
is a party (written or oral) pursuant to which TEREX has the right to elect to
satisfy any liability by issuing any TEREX Shares or other measures of capital
ownership of TEREX. 

        (v)               
Other than the Bylaws, TEREX is not a party or subject to any agreement
or understanding, and, to TEREX's knowledge, there is no agreement, arrangement
or understanding between or among any persons which affects, restricts or
relates to voting, giving of written consents, distributions, allocation of
profits and losses, or transferability of Shares or other measures of capital
ownership of TEREX, including any voting trust agreement or proxy.

    (c)               
No Subsidiaries. TEREX does not own any capital stock or other
equity interest in any corporation, partnership, joint venture, or other
entity.

   (d)              
Authorization. TEREX has all requisite power and authority to
execute and deliver this Agreement, to perform its obligations hereunder, and
to consummate the transactions contemplated hereby. The execution and delivery
of this Agreement by TEREX and the consummation by TEREX of the transactions
contemplated hereby have been duly and validly authorized by all necessary
corporate and/or stockholder action by TEREX and no other corporate proceedings
on the part of TEREX and no other stockholder vote or consent is necessary to
authorize this Agreement or to consummate the transactions contemplated hereby.
This Agreement has been duly and validly executed and delivered by TEREX. This
Agreement and all other agreements and obligations entered into and undertaken
in connection with the transactions contemplated hereby to which TEREX is a
party constitute the valid and legally binding obligations of TEREX,
enforceable against  

-5-

TEREX in accordance with their respective terms, except as may
be limited by principles of equity or applicable bankruptcy, reorganization,
insolvency, moratorium, fraudulent conveyance or other similar laws relating to
or affecting the rights and remedies of creditors generally. The execution,
delivery and performance by TEREX of this Agreement and the agreements provided
for herein, and the consummation by TEREX of the transactions contemplated
hereby and thereby, will not, with or without the giving of notice or the
passage of time or both, violate the provisions of the Certificate of Incorporation
or Bylaws of TEREX, or (i) violate any judgment, decree, order or award of any
court, governmental body or arbitrator; (ii) conflict with or result in the
breach or termination of any term or provision of, or constitute a default
under, or cause any acceleration under, or cause the creation of any lien,
charge or encumbrance upon the properties or assets of TEREX pursuant to, any
indenture, mortgage, deed of trust or other instrument or agreement to which TEREX
is a party or by which TEREX or any of its properties is or may be bound; or
(iii) to TEREX's knowledge, violate the provisions of any law, rule or
regulation applicable to TEREX, except where such violation would not
reasonably be expected to have an Adverse Effect.

    (e)               
No Conflict. The execution and delivery
of this Agreement by TEREX does not require any consent or approval under,
result in any breach of, result in any loss of any benefit under, or constitute
a change of control or default (or an event which with notice or lapse of time
or both would become a default) under; give to others any right of termination,
vesting, amendment, acceleration or cancellation of; or result in the creation
of any lien or encumbrance on any property or asset of TEREX pursuant to; any
material agreement of TEREX or other instrument or obligation of TEREX.

    (f)                
Litigation. There is no action, suit, legal or administrative
proceeding or investigation pending or, to TEREX's knowledge, threatened
against or involving TEREX (either as a plaintiff or defendant) before any
court or governmental agency, authority, body or arbitrator. There is not in
existence on the date hereof any order, judgment or decree of any court,
tribunal or agency to TEREX's knowledge enjoining or requiring TEREX to take
any action of any kind with respect to its business, assets or properties.

    (g)   
       Insurance. The TEREX Schedule contains a listing of all
current TEREX insurance policies. To TEREX's knowledge, all current insurance
policies are in full force and effect, are in amounts of a nature that are
adequate and customary for TEREX's business, and to TEREX's knowledge are
sufficient for compliance with all legal requirements and agreements to which
it is a party or by which it is bound. All premiums due on current policies or
renewals have been paid, and there is no material default under any of the
policies.

    (h)               
Personal Property. TEREX has good and marketable title to all
of its tangible personal property free and clear of all liens, leases,
encumbrances, claims under bailment and storage agreements, equities,
conditional sales contracts, security interests, charges, and restrictions,
except for liens, if any, for personal property taxes not due. Such property is
used by TEREX in the ordinary course of its business and is sufficient for
continued conduct of TEREX's business after the Closing Date in substantially
the same manner as conducted prior to the Closing Date. Such property is in good
operating condition and repair, normal wear and tear excepted, and normal
maintenance has been performed.

-6-

    (i)                 
Intangible Property. TEREX owns, or possesses, adequate licenses
or other valid rights to use all existing United States and foreign patents,
trade names, service marks, copyrights, trade secrets, and applications
therefor listed in the TEREX Schedule, which are material to its business as
currently conducted (the "TEREX Intellectual Property Rights"), except
where the failure to have such TEREX Intellectual Property Rights would not
reasonably be expected to have an Adverse Effect.  TEREX has the right and
authority to use, and to continue to use such TEREX Intellectual Property
Rights after the Closing Date, such property in connection with the conduct of
its business in the manner presently conducted, and to its knowledge such use
or continuing use does not and will not materially infringe upon or violate any
rights of any other person, subject to the outcome of the TEREX Litigation.  

    (j)                
Real Property. Except as specified on the TEREX Schedule, TEREX
is not a party to any material lease agreements and does not have any interests
in any parcel of real property, improved or otherwise.

    (k)              
Tax Matters. Within the times and in the manner prescribed by
law, TEREX has filed, or will have filed, all federal, state and local tax
returns and all tax returns for other governing bodies having jurisdiction to
levy taxes upon it that are required to be filed. TEREX has paid all taxes,
interest, penalties, assessments and deficiencies that have become due,
including without limitation income, franchise, real estate, and sales and
withholding taxes. No examinations of the federal, state or local tax returns
of TEREX are currently in progress or threatened and no deficiencies have been
asserted or to TEREX's knowledge assessed against TEREX as a result of any
audit by the Internal Revenue Service or any state or local taxing authority
and no such deficiency has been proposed or threatened.

    (l)                 
Books and Records. The general ledger and books of account of
TEREX, all minute books of TEREX, all federal, state and local income,
franchise, property and other tax returns filed by TEREX, all of which have
been made available to TRXO, are in all material respects complete and correct
and have been maintained in accordance with good business practice and in
accordance with all applicable procedures required by laws and regulations,
except as would reasonably be expected to have an Adverse Effect.

    (m)             
Contracts and Commitments. The TEREX Schedule lists all material
contracts and agreements to which TEREX is a party, whether written or oral,
other than those between TEREX and TRXO. Each such contract is a valid and
binding agreement of TEREX, enforceable against TEREX in accordance with its
terms, is in full force and effect and represents the material terms of the
agreement between the respective parties. TEREX has materially complied with
all obligations required pursuant to such contracts to have been performed by TEREX
on its part and neither TEREX nor, to TEREX's knowledge, any other party to
such contract is in breach of or default in any material respect under any such
contract.

    (n)               
Compliance with Laws. TEREX has all requisite licenses,
permits and certificates, including environmental, health and safety permits,
from federal, state and local authorities necessary to conduct its business as
currently conducted and own and operate its assets, except where the failure to
have such permits would not reasonably be expected to have an Adverse Effect. To TEREX's
knowledge, TEREX is not in violation of any federal, state or local law,
regulation or 

-7-

ordinance (including, without
limitation, laws, regulations or ordinances relating to building, zoning,
environmental, disposal of hazardous waste, land use or similar matters)
relating to its business or its properties.

    (o)              
Employee Benefit Plans. Except as specified on the TEREX
Schedule, TEREX has no (A) employee benefit plans as defined in ERISA Section
3(3), (B) bonus, stock option, stock purchase, incentive, deferred
compensation, supplemental retirement, severance or other similar employee
benefit plans, or (C) material unexpired severance agreements with any current
or former employee of TRXO.

    (p)              
Indebtedness to and from Affiliates. TEREX is not indebted,
directly or to TEREX's knowledge indirectly, to any officer, director or 10%
stockholder of TEREX in any amount other than for salaries for services
rendered or reimbursable business expenses, and no such person is indebted to TEREX
except for advances made to employees of TEREX in the ordinary course of
business to meet reimbursable business expenses.

    (q)              
Regulatory Approvals. All consents, approvals, authorizations
or other requirements prescribed by any law, rule or regulation that must be
obtained or satisfied by TEREX and that are necessary for the execution and
delivery by TEREX of this Agreement or any documents to be executed and
delivered by TEREX in connection therewith have been, or prior to the Closing
Date will be, obtained and satisfied.

    (r)                
No Brokers. No broker or finder has acted for TEREX in connection
with this Agreement or the transactions contemplated hereby, and no broker or
finder is entitled to any brokerage or finder's fee or other commissions in
respect of such transactions based upon agreements, arrangements, or
understandings made by or on behalf of TEREX.

    (s)               
Disclosure. The information concerning TEREX set forth in this
Agreement, the exhibits and schedules hereto, and any document, statement or
certificate furnished or to be furnished in connection herewith does not and
will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated herein or therein or necessary to make the
statements and facts contained herein or therein, in light of the circumstances
in which they are made, not false or misleading.

    (t)                
Tax Treatment. Neither TEREX nor, to the knowledge of TEREX, any
of its Affiliates has taken or agreed to take action that would prevent the
Merger from constituting a reorganization qualifying under the provisions of
Section 368 of the Tax Code.

    (u)               
Absence of Liabilities. Except as set forth on TEREX's audited
balance sheet, TEREX does not have any liability or obligation, secured or
unsecured, whether accrued, absolute, contingent, unasserted or otherwise, that
exceeds an aggregate of $1,000.

Section 6.               
TRXO's, Acquisition Sub's Representations and Warranties.  Each of TRXO, and Acquisition Sub represents and
warrants to TEREX and the surviving
corporation that the statements contained in this Section are true and correct
as of the Effective Date and will be true and correct as of the Closing Date,
as set forth herein and in the disclosure schedule delivered by TRXO, Acquisition
Sub to TEREX (the "TRXO Schedule"), arranged in sections corresponding to the
paragraphs in this Section to the extent that it is reasonably apparent from a
reading of the disclosure that it also qualifies or applies to such other
paragraphs.

-8-

(a)               
Organization.

        (ii)         
TRXO is a corporation validly existing and in good standing under the
laws of the State of Colorado and has all requisite power and authority and
possesses all necessary governmental approvals necessary to own, lease and
operate its properties, to carry on its business as now being conducted, to
execute and deliver this Agreement and the agreements contemplated herein, and
to consummate the transactions contemplated hereby and thereby. TRXO is duly
qualified to do business and is in good standing in all jurisdictions in which
its ownership of property or the character of its business requires such
qualification, except where the failure to be so qualified would not reasonably
be expected to have an Adverse Effect. Certified copies of its Articles of
Incorporation and Bylaws, as amended to date, have been made available to TEREX,
are complete and correct, and no amendments have been made thereto or have been
authorized since the date thereof. TRXO is not in violation of any of the
provisions of its Articles of Incorporation or Bylaws.

        (iii)        
Acquisition Sub is a corporation validly existing and in good standing
under the laws of the State of Colorado and has all requisite power and
authority and possesses all necessary governmental approvals necessary to own,
lease and operate its properties, to carry on its business as now being
conducted, to execute and deliver this Agreement and the agreements
contemplated herein, and to consummate the transactions contemplated hereby and
thereby. Certified copies of its Certificate of Incorporation and Bylaws have
been made available to TEREX, are complete and correct, and no amendments have
been made thereto or have been authorized since the date thereof. Acquisition
Sub is not in violation of any of the provisions of its Certificate of
Incorporation or Bylaws.

    (b)              
Capitalization.

        (i)                 
TRXO's authorized capital stock
consists of 275,000,000 shares of common
stock, par value $0.001 per share, and 50,000,000 shares of preferred
stock, par value $0.001 per share.

        (ii)               
There are 714,041
shares of common stock issued and outstanding of TRXO, and no preferred
stock is issued and outstanding, and no shares of
common stock of TRXO are held in the treasury of TRXO. All of the issued and outstanding shares of common stock of
TRXO were duly and validly issued and fully
paid, are non-assessable and free of preemptive rights, and were issued in compliance
with all applicable state and federal securities laws.

        (iii)              
Except as provided in the TRXO Schedule 6.b.iii, there are no
outstanding (A) options, warrants, or other rights to purchase from TRXO any capital stock of TRXO
or Acquisition Sub; (B) debt securities or instruments convertible into
or exchangeable for shares of such stock; or (C) commitments of any kind for
the issuance of additional shares of capital stock or options, warrants or
other securities of TRXO or Acquisition Sub.

        (iv)             
TRXO owns all of the outstanding
capital stock of Acquisition Sub, free and clear of all liens or other
encumbrances.

-9-

    (c)               
No Subsidiaries. Except for Acquisition Sub and as provided in
the TRXO Schedule, TRXO does not own any
capital stock or other equity interest in any corporation, partnership, joint
venture or other entity.

    (d)              
Authorization. Each of TRXO and Acquisition
Sub has all requisite power and authority to execute and deliver this
Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery of this Agreement
by TRXO and Acquisition Sub and the
consummation by TRXO and Acquisition Sub of
the transactions contemplated hereby have been duly and validly authorized by
all necessary corporate action by TRXO or Acquisition
Sub, respectively, and no other corporate proceedings on the part of TRXO or Acquisition Sub, respectively, and no
stockholder vote or consent is necessary to authorize this Agreement or to
consummate the transactions contemplated hereby. This Agreement has been duly
and validly executed and delivered by TRXO and Acquisition
Sub. This Agreement and all other agreements and obligations entered into and
undertaken in connection with the transactions contemplated hereby to which TRXO or Acquisition Sub is a party constitute the
valid and legally binding obligations of TRXO and Acquisition
Sub, respectively, enforceable against TRXO and Acquisition
Sub, respectively, in accordance with their terms, except as may be limited by
principles of equity or applicable bankruptcy, reorganization, insolvency,
moratorium, fraudulent conveyance or other similar laws relating to or
affecting the rights and remedies of creditors generally. The execution,
delivery and performance by TRXO and Acquisition
Sub of this Agreement and the agreements provided for herein, and the
consummation by TRXO and Acquisition Sub of
the transactions contemplated hereby and thereby, will not, with or without the
giving of notice or the passage of time or both, violate the provisions of the
Articles of Incorporation or Bylaws of TRXO,
the Certificate of Incorporation or Bylaws of Acquisition Sub, or (i) violate
any judgment, decree, order or award of any court, governmental body or
arbitrator; (ii) conflict with or result in the breach or termination of any
term or provision of, or constitute a default under, or cause any acceleration
under, or cause the creation of any lien, charge or encumbrance upon the
properties or assets of TRXO or Acquisition
Sub pursuant to, any indenture, mortgage, deed of trust or other instrument or
agreement to which TRXO or Acquisition Sub is
a party or by which TRXO Acquisition Sub or any of their respective properties
is or will be bound; or (iii) to TRXO's or Acquisition Sub's knowledge, violate
the provisions of any law, rule or regulation applicable to TRXO or Acquisition
Sub, except where such violation would not reasonably be expected to have an
Adverse Effect.

    (e)               
No Conflict. The execution and delivery of this Agreement by TRXO
or Acquisition Sub does not require any consent or approval under, result in
any breach of, any loss of any benefit under or constitute a change of control
or default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any right of termination, vesting,
amendment, acceleration or cancellation of, or result in the creation of any
lien or encumbrance on any property or asset of TRXO or Acquisition Sub pursuant
to any material agreement of TRXO or Acquisition Sub or other instrument or
obligation of TRXO or Acquisition Sub .

    (f)                
Absence of Liabilities. Except as set forth on TRXO's balance
sheet dated Sept 30, 2014, as set forth in TRXO's Quarterly Report on Form 10-Q
for the period ended Sept 30, 2014, as filed with the SEC, TRXO does not have
any liability or obligation, secured or unsecured, whether accrued, absolute, 

-10-

contingent, unasserted or
otherwise, that exceeds an aggregate of $1,000. Acquisition Sub has no
liabilities or obligations.

    (g)               
Litigation. Except as specified in the TRXO Schedule, there is no
action, suit, legal or administrative proceeding or investigation pending or,
to TRXO's knowledge, threatened against or involving TRXO or Acquisition Sub (either
as a plaintiff or defendant) before any court or governmental agency, authority,
body or arbitrator. There is not in existence on the date hereof any order,
judgment or decree of any court, tribunal or agency to TRXO's knowledge
enjoining or requiring TRXO or Acquisition Sub to take any action of any kind
with respect to its business, assets or properties.

    (h)               
Tax Matters. Except as specified in the TRXO Schedule, TRXO has
filed all federal, state and local tax returns and all tax returns for other
governing bodies having jurisdiction to levy taxes upon it which are required
to be filed. TRXO has paid all taxes, interest, penalties, assessments, and
deficiencies which have become due, including without limitation income,
franchise, real estate, and sales and withholding taxes. No examinations of the
federal, state or local tax returns of TRXO are currently in progress nor
threatened and no deficiencies have been asserted or to its knowledge assessed
against TRXO as a result of any audit by the Internal Revenue Service or any
state or local taxing authority and no such deficiency has been proposed or
threatened.

    (i)                 
Books and Records. The general ledger and books of account of TRXO,
all minute books of TRXO, all federal, state and local income, franchise,
property and other tax returns filed by TRXO, all reports and filings with the
SEC by TRXO, all of which have been made available to TEREX, are in all
material respects complete and correct and have been maintained in accordance
with good business practice and in accordance with all applicable procedures
required by laws and regulations.

    (j)                
Contracts and Commitments. There are no material contracts to
which TRXO is a party other than those specified in its filings with the SEC. Neither
Acquisition Sub n is a party to any contract.

    (k)              
Compliance with Laws. TRXO has all requisite licenses, permits
and certificates, including environmental, health and safety permits, from
federal, state and local authorities necessary to conduct its business as
currently conducted and own and operate its assets, except where the failure to
have such permits would not reasonably be expected to have an Adverse Effect. TRXO
is not in violation of any federal, state or local law, regulation or ordinance
(including, without limitation, laws, regulations or ordinances relating to
building, zoning, environmental, disposal of hazardous waste, land use or
similar matters) relating to its business or its properties.

    (l)                 
Employee Benefit Plans. Except as disclosed in its filings with
the SEC, TRXO has no (A) employee benefit plans as defined in ERISA Section
3(3), (B) bonus, stock option, stock purchase, incentive, deferred
compensation, supplemental retirement, severance or other similar employee
benefit plans, or (C) material unexpired severance agreements with any current
or former employee of TRXO. With respect to such plans, individually and in the
aggregate, no event has occurred and, to TRXO's knowledge, there exists no
condition or set of circumstances in connection with which TRXO could be
subject to any liability that is reasonably likely to have an Adverse Effect
under ERISA, the Tax Code or any other applicable law.

-11-

    (m)             
Indebtedness to and from Affiliates. As of the Closing Date, TRXO
is not indebted, directly or to its knowledge indirectly, to any officer,
director or 10% stockholder of TRXO in any amount, and no such person is
indebted to TRXO except for advances made to employees of TRXO in the ordinary
course of business to meet reimbursable business expenses.

    (n)               
Regulatory Approvals. All consents, approvals, authorizations or
other requirements prescribed by any law, rule or regulation that must be
obtained or satisfied by TRXO or Acquisition Sub and that are necessary for the
execution and delivery by TRXO or Acquisition Sub of this Agreement or any
documents to be executed and delivered by TRXO or Acquisition Sub in connection
therewith have been obtained and satisfied.

    (o)              
No Brokers. No broker or finder has acted for TRXO or Acquisition
Sub in connection with this Agreement or the transactions contemplated hereby,
and no broker or finder is entitled to any brokerage or finder's fee or other
commissions in respect of such transactions based upon agreements, arrangements
or understandings made by or on behalf of TRXO or Acquisition Sub.

    (p)              
Disclosure. The information concerning each of TRXO or Acquisition
Sub set forth in its reports and filings with the SEC, this Agreement, the
exhibits and schedules hereto, and any document, statement or certificate
furnished or to be furnished in connection herewith (as applicable) does not
and will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated herein or therein or necessary to make the
statements and facts contained herein or therein, in light of the circumstances
in which they are made, not false or misleading.

    (q)              
SEC Filings.

        (i)                 
 Except as disclosed on the TRXO Schedule, TRXO has filed all forms,
reports and documents required to be filed with the SEC since it first became a
public reporting company. At the time filed or, with respect to registration
statements filed with the SEC under the Securities Act, as of the effective
date thereof, all such filings (A) complied in all material respects with the
applicable requirements of the Securities Act and the Exchange Act, as the case
shall be, and (B) did not at the time they were filed (or if amended or
superseded by a filing prior to the date of this Agreement, then on the date of
such filing) contain any untrue statement of a material fact or omit to state a
material fact required to be stated in such filings or necessary in order to
make the statements in such filings, in the light of the circumstances under
which they were made, not misleading.

        (ii)               
Each of the financial statements (including, in each case, any related
notes) contained in TRXO's SEC filings complied as to form in all material
respects with the applicable rules and regulations with respect thereto, was
prepared in accordance with GAAP applied on a consistent basis throughout the
periods involved (except as may be indicated in the notes to such financial
statements or, in the case of unaudited statements, as permitted by Form 10-Q
of the SEC) and fairly presented the financial position of TRXO as of the dates
and the results of its operations and cash flows for the periods indicated,
except that the unaudited interim financial statements were or are subject to
normal and recurring year-end adjustments which were not or are not expected to
be material in amount.

 -12-

   (r)                
Tax Treatment. Neither TRXO nor, to the Knowledge of TRXO, any of
its Affiliates has taken or agreed to take action that would prevent the Merger
from constituting a reorganization qualifying under the provisions of Section
368 of the Tax Code. 

    (s)               
Certificates. The certificates representing the shares of TRXO to
be delivered pursuant to this Agreement are subject to certain trading restrictions
imposed by the Securities Act and applicable state securities or "blue sky"
laws.

    (t)                
Investment Company. TRXO is not, and is not an Affiliate of, and
immediately following the Closing will not have become, an "investment company"
within the meaning of the Investment Company Act of 1940, as amended.

Section 7.               
Covenants of TRXO. 

    (a)               
Conduct of Business of TRXO. Except as contemplated by this
Agreement, during the period from the date hereof to the Effective Time, TRXO
will conduct its operations in the ordinary course of business consistent with
past practice and, to the extent consistent therewith, with no less diligence
and effort than would be applied in the absence of this Agreement, seek to
preserve intact its current business organization. Except as otherwise expressly
provided in this Agreement or in the TRXO Disclosure Schedule, prior to the
Effective Time, TRXO shall not, without the prior written consent of TEREX:

          (i)                 
amend its Articles of Incorporation or Bylaws (or other similar
governing instrument);

        (ii)               
authorize for issuance, issue, sell, deliver or agree or commit to
issue, sell or deliver (whether through the issuance or granting of options,
warrants, commitments, subscriptions, rights to purchase or otherwise) any
stock of any class or any other securities (except bank loans) or equity
equivalents (including, without limitation, any stock options or stock
appreciation rights;

        (iii)              
split, combine or reclassify any shares of its capital stock, declare,
set aside or pay any dividend or other distribution (whether in cash, stock or
property or any combination thereof) in respect of its capital stock, make any
other actual, constructive or deemed distribution in respect of its capital
stock or otherwise make any payments to stockholders in their capacity as such,
or redeem or otherwise acquire any of its securities;

        (iv)             
adopt a plan of complete or partial liquidation, dissolution, merger,
consolidation, restructuring, recapitalization or other reorganization of TRXO
(other than the Merger);

        (v)               
(i) incur or assume any long-term or short-term debt or issue any debt
securities; (ii) assume, guarantee, endorse or otherwise become liable or
responsible (whether directly, contingently or otherwise) for the obligations
of any other person; (iii) make any loans, advances or capital contributions
to, or investments in, any other person; (iv) pledge or otherwise encumber
shares of capital stock of TRXO; or (v) mortgage or pledge any of its material
assets, or create or suffer to exist any material lien thereupon (other than
tax Liens for taxes not yet due);

-13-

        (vi)             
except as contemplated in this Agreement and Asset Purchase Agreement,
acquire, sell, lease or dispose of any assets in any single transaction or
series of related transactions (other than in the ordinary course of business);

        (vii)            
except as may be required as a result of a change in law or in generally
accepted accounting principles, change any of the accounting principles or
practices used by it;

        (viii)          
(i) acquire (by merger, consolidation, or acquisition of stock or
assets) any corporation, partnership or other business organization or division
thereof or any equity interest therein; (ii) enter into any contract or
agreement other than in the ordinary course of business consistent with past
practice; (iii) authorize any new capital expenditure or expenditures
which, individually is in excess of $1,000 or, in the aggregate, are in excess
of $5,000;

        (ix)             
make any tax election or settle or compromise any income tax liability
material to TRXO;

        (x)               
settle or compromise any pending or threatened suit, action or claim
which (i) relates to the transactions contemplated hereby or (ii) the
settlement or compromise of which could have an Adverse Effect on TRXO; or

        (xi)             
take, or agree in writing or otherwise to take, any of the actions
described in Sections 7(a)(i) through (xi) or any action which would
make any of the representations or warranties of contained in this Agreement
untrue or incorrect.

Section 8.               
Covenants of TEREX. 

    (a)               
Conduct of Business of TEREX. Except as contemplated by this
Agreement, including as described in the TEREX Disclosure Schedule, during the
period from the date hereof to the Effective Time, TEREX will conduct its
operations in the ordinary course of business consistent with past practice
and, to the extent consistent therewith, with no less diligence and effort than
would be applied in the absence of this Agreement, seek to preserve intact its
current business organization, and keep available the service of its current
officers and employees. Without limiting the generality of the foregoing,
except as otherwise expressly provided in this Agreement or as described in the
TEREX Disclosure Schedule, prior to the Effective Time, TEREX shall not,
without the prior written consent of TRXO:

        (i)                 
adopt a plan of complete or partial liquidation, dissolution, merger
consolidation, restructuring, recapitalization or other reorganization of TEREX
(other than the Merger); 

        (ii)               
(i) incur or assume any long-term or short-term debt or issue any debt
securities; (ii) assume, guarantee, endorse or otherwise become liable or
responsible (whether directly, contingently or otherwise) for the obligations
of any other person; (iii) make any loans, advances or capital contributions
to, or investments in, any other person; (iv) pledge or otherwise encumber
shares of capital stock of TEREX; or (v) mortgage or pledge any of its material
assets, or create or suffer to exist any material lien thereupon (other than
tax Liens for taxes not yet due); or 

-14-

        (iii)              
take, or agree in writing or otherwise to take, any action which would
make any of the representations or warranties of the TEREX contained in this
Agreement untrue or incorrect.

Section 9.               
Other Covenants and Agreements
of the Parties.

    (a)               
Acquisition Sub Meeting of Stockholders. Acquisition Sub shall
take all action necessary, in accordance with the General Corporation Law of
the State of Colorado, and its Certificate of Incorporation and Bylaws, to duly
call, give notice of, convene and hold a meeting of its stockholders as
promptly as practicable, to consider and vote upon the adoption and approval of
this Agreement and the transactions contemplated hereby. 

    (b)              
TEREX Meeting of Shareholders. TEREX shall take all action
necessary, in accordance with the General Corporation Law of the State of Colorado,
and its Certificate of Incorporation and Bylaws, to obtain written consent of
at least 80% of its shareholders, in lieu of a shareholder meeting to approve the
adoption and approval of this Agreement and the transactions contemplated
hereby. 

    (c)               
TRXO Common Stock. At the Effective Time, TRXO shall not have
issued and outstanding more than 714,041 shares
of TRXO Common Stock.

    (d)              
TEREX ownership of TRXO: As of the effective date of the Merger, the
371,003 shares of common stock of TRXO, owned by TEREX, shall be surrendered
and deemed retired to treasury of TRXO.

    (e)               
Access to Information.

Between the
date hereof and the Effective Time, TRXO will give TEREX and its authorized
representatives reasonable access to its facilities and to all books and
records of itself, will permit TEREX to make such inspections as TEREX may reasonably
require and will cause its officers to furnish TEREX with such financial and
operating data and other information with respect to the business and
properties of itself as TEREX may from time to time reasonably request.  Each
of the Parties hereto will hold and will cause its consultants and advisers to
hold in confidence all documents and information furnished to it in connection
with the transactions contemplated by this Agreement. 

    (f)                
Additional Agreements, Reasonable Efforts. Subject to the terms
and conditions herein provided, each of the Parties hereto agrees to use all
reasonable efforts to take, or cause to be taken, all action, and to do, or
cause to be done, all things reasonably necessary, proper or advisable under
applicable laws and regulations to consummate and make effective the
transactions contemplated by this Agreement, including, without limitation, (i)
cooperating in the preparation of a Form 8-K to be filed with the SEC in
connection with this Agreement, (ii) obtaining consents of all third parties and
governmental entities necessary, proper or advisable for the consummation of
the transactions contemplated by this Agreement; and (iii) the execution of any
additional instruments necessary to consummate the transactions contemplated
hereby. 

    (g)               
Press Releases. TEREX and TRXO will consult with each other before
issuing, and will provide each other the opportunity to review and comment upon,
any press release or other public statements with respect to the transactions
contemplated by this Agreement and shall not issue any such press release or 

-15-

make any such public
statement prior to such consultation, except as may be required by applicable
law or court process. The Parties agree that the initial press release or
releases to be issued with respect to the transactions contemplated by this
Agreement shall be mutually agreed upon prior to the issuance thereof.

    (h)               
Other Filings. At all times from and after the date hereto until
the Effective Time, TRXO covenants and agrees to make all filings it is
required to make pursuant to the Exchange Act on a timely basis.

Section 10.           
TEREX's Conditions to the Merger.  The
obligation of TEREX to effect the
Merger shall be subject to the fulfillment at or prior to the Closing Date of
the following conditions, unless waived by TEREX:

    (a)               
Each of the representations and warranties of TRXO and Acquisition Sub
contained in this Agreement shall be true and correct as of the date of this
Agreement, except to the extent that any changes, circumstances, or events
making such representations and warranties not true or correct would not,
individually or in the aggregate, constitute an Adverse Effect and at the
Closing each of TRXO and Acquisition Sub shall have delivered to TEREX a
certificate to that effect;

    (b)              
Any governmental or third party approvals required to effect the Merger
shall have been obtained;

    (c)               
Each of TRXO and Acquisition Sub shall have performed or complied in all
material respects with all agreements and covenants required by this Agreement
to be performed or complied with by it on or prior to the Effective Time and at
the Closing TRXO shall have delivered to TEREX a certificate to that effect;

    (d)              
From the date of this Agreement through the Effective Time, there shall
not have occurred any change, circumstance or event concerning TRXO or
Acquisition Sub that has had or could be reasonably likely to have an Adverse
Effect;

    (e)               
TRXO shall have delivered to TEREX a complete and accurate TRXO Schedule
and such schedule shall have been approved by TEREX;

    (f)                
The Asset Purchase Agreement shall have been entered into by TRXO and the
third party;

    (g)   
The nominee of TEREX shall have been appointed as a member of the board
of directors and as officers of TRXO;

    (h)   
TEREX shall have received a resolution from TRXO's Board of Directors, a
resolution from its Preferred stockholders (if applicable) and resolutions from
its holder of TRXO Common Stock (if applicable) approving the Merger and
authorizing the issuances of the shares of TRXO Common Stock hereto; and

    (i)     
The stockholders of Acquisition Sub and the stockholders of TEREX shall have
approved the principal terms of this Agreement, the Merger and the transactions
contemplated herein in accordance with applicable law and their Certificate of
Incorporation and Bylaws.

-16-

Section 11.           
TRXO's, Acquisition Sub's Conditions to the Merger.  The obligations of TRXO and Acquisition Sub to
effect the Merger shall be subject to the fulfillment at or prior to the
Closing Date of the following conditions, unless waived by TRXO:

    (a)               
Each of the representations and warranties of TEREX contained in this
Agreement shall be true and correct as of the date of this Agreement, except to
the extent that any changes, circumstances or events making such
representations and warranties not true or correct would not, individually or
in the aggregate, constitute an Adverse Effect and at the Closing TEREX shall
have delivered to TRXO a certificate to that effect;

    (b)              
TEREX shall have performed or complied in all material respects with all
agreements and covenants required by this Agreement to be performed or complied
with by it on or prior to the Effective Time and at the Closing TEREX shall
have delivered to TRXO a certificate to that effect;

    (c)               
From the date of this Agreement through the Effective Time, there shall
not have occurred any change, circumstance, or event concerning TEREX that has
had or could be reasonably likely to have an Adverse Effect;

    (d)              
TEREX shall have delivered to TRXO a complete and accurate TEREX
Schedule and such schedule shall have been approved by TRXO; 

    (e)               
TEREX shall have delivered to TRXO audited balance sheets of TEREX as of
September 30, 2014, and the related statements of operations, changes in
shareholders' equity and cash flows for the period from inception to September
30, 2014;

Section 12.           
Indemnification of Directors and Officers. 
All rights to indemnification by TEREX and TRXO existing in favor of each
individual who is an officer or director of TEREX or TRXO of the date of this
Agreement (each such individual, an "Indemnified Person") for his acts and omissions as a director or
officer of TEREX or TRXO occurring prior to the Effective Time, as provided in TEREX's
Certificate of Incorporation or Bylaws (as in effect as of the date of this
Agreement) or TRXO's Articles of Incorporation or Bylaws (as in effect as of
the date of this Agreement) shall survive the Merger and shall continue in full
force and effect (to the fullest extent such rights to indemnification are
available under and are consistent with applicable law) for a period of six
years from the Closing Date.

Section 13.           
Confidentiality.   Each Party shall
ensure that any nonpublic information provided to it by any other Party in
confidence shall be treated as strictly confidential and that all such
confidential information that each Party or any of its respective officers,
directors, employees, attorneys, agents, investment bankers, or accountants may
now possess or may hereinafter create or obtain relating to the financial
condition, results of operations, businesses, properties, assets, liabilities,
or future prospects of the other such parties, any affiliate thereof, or any customer
or supplier thereof shall not be published, disclosed, or made accessible by
any of them to any other person at any time or used by any of them, in each
case without the prior written consent of the other Party; provided, however,
that the restrictions of this Section shall not apply (a) as may otherwise be
required by law, (b) as may be necessary or appropriate in connection with the
enforcement of this Agreement, or (c) to the extent such information was in the
public domain when received or thereafter enters the public domain other than
because of 

-17-

disclosures by
the receiving Party. Each such Party shall, and shall cause all of such other
persons who received confidential information, from time to time to deliver to
the disclosing party all tangible evidence of such confidential information to
which the restrictions of this Section apply upon written request.

Section 14.           
Termination

    (a)               
This Agreement may be terminated and abandoned at any time prior to the
Effective Time of the Merger:

        (i)                 
by mutual written consent of TRXO and TEREX;

        (ii)               
by either TRXO or TEREX if any governmental entity shall have issued an
order, decree or ruling or taken any other action permanently enjoining,
restraining or otherwise prohibiting the Merger and such order, decree, ruling
or other action shall have become final and nonappealable;

        (iii)              
by either TRXO or TEREX, so long as such Party is not in breach
hereunder, if the Merger shall not have been consummated on or before  January
31, 2015 (other than as a result of the failure of the party seeking to
terminate this Agreement to perform its obligations under this Agreement
required to be performed at, or prior to, the Effective Time of the Merger, in
which event such party may not terminate this Agreement pursuant to this
provision for a period of ten days following such party's cure of such
failure); provided, however, that if either TRXO or TEREX
requests an extension of the Closing after this date and the other Party
consents in writing, then neither Party may terminate this Agreement under this
provision until the expiration of such extension period; 

        (iv)             
by TRXO, if there has been a material breach of this Agreement on the
part of TEREX of its obligations hereunder or if any of its representations or
warranties contained herein shall be materially inaccurate and such breach or
inaccuracy is not curable or, if curable, is not cured within ten (10) days
after written notice of such breach is given by TRXO to TEREX; or

        (v)               
by TEREX, if there has been a material breach of this Agreement on the
part of TRXO of its obligations hereunder or if any of its representations or
warranties contained herein shall be materially inaccurate and such breach or
inaccuracy is not curable or, if curable, is not cured within ten (10) days
after written notice of such breach is given by TEREX to TRXO.

    (b)              
In the event of termination of this Agreement by either TEREX or TRXO
provided in this Section 14, this Agreement shall forthwith become
void and have no effect, without any liability or obligation on the part of TRXO
or TEREX, other than the provisions of the last sentence of Section 13
and this Section 14. Nothing contained in this Section 14
shall relieve any Party for any breach of the representations, warranties,
covenants or agreements set forth in this Agreement.

-18-

Section 15.           
Miscellaneous.

    (a)               
Survival. The representations and warranties of the Parties will
terminate at the Effective Time and only those covenants that by their terms
survive the Effective Time shall survive the Effective Time. This Section __
shall survive the Effective Time.

    (b)           
Press Releases and Public Announcements. No Party will issue any
press release or make any public announcement relating to the subject matter of
this Agreement without the prior written approval of the other Parties; provided,
however, that any Party may make any public disclosure it believes in
good faith is required by applicable law or any listing requirement or trading
agreement.

    (c)               
No Third-Party Beneficiaries. This Agreement will not confer any
rights or remedies upon any person other than the Parties and their respective
successors and permitted assigns.

    (d)              
Notices. All notices required or permitted under this Agreement
will be in writing and will be given by certified or regular mail or by any
other reasonable means (including personal delivery, facsimile, or reputable
express courier) to the Party to receive notice at the following addresses or
at such other address as any Party may, by notice, direct:

To TRXO &                T-Rex
Oil, Inc.

Acquisition Sub:            TEREX Acquisition
Corp.

                                    7609
Ralston Road

                                    Arvada,
CO  80002 

            

With a copy to:             Michael A. Littman

(which will not              Attorney at Law

constitute notice)           7609 Ralston Road

Arvada, CO  80002

Fax number: (303) 431-1567

 

To TEREX:                  Terex
Energy Corp., a Colorado corporation

                                    7609
Ralston Road

                                    Arvada,
CO  80002

 

With a copy to:             Michael A. Littman

(which will not              Attorney at Law

constitute notice)           7609 Ralston Road

                                    Arvada, CO 80002

                                    Fax number: (303) 431-1567

All notices
given by certified mail will be deemed as given on the delivery date shown on
the return mail receipt, and all notices given in any other manner will be
deemed as given when received.

    (e)               
Waiver. The rights and remedies of the Parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay by any Party
in exercising any right, power, or privilege under this Agreement or the
documents referred to in this Agreement will operate as a waiver of such right,
power, or 

-19-

privilege, and no single or
partial exercise of any right, power, or privilege will preclude any other or
further exercise of such right, power, or privilege or the exercise of any other
right, power, or privilege. To the maximum extent permitted by applicable law,
(a) no claim or right arising from this Agreement or the documents referred to
in this Agreement can be discharged by one Party, in whole or in part, by a
waiver or renunciation of the claim or right unless in writing signed by the
waiving Party, (b) no waiver that may be given by a Party will be applicable
except in the specific instance for which it is given, and (c) no notice to or
demand on one Party will be deemed to be a waiver of any obligation of such
Party or of the right of the Party giving such notice or demand to take further
action without notice or demand as provided in this Agreement or the documents
referred to in this Agreement.

    (f)                
Further Assurances. The Parties agree (a) to furnish upon request
to each other such further information, (b) to execute and deliver to each
other such other documents, and (c) to do such other acts and things, all as the
other Parties may reasonably request for the purpose of carrying out the intent
of this Agreement and of the documents referred to in this Agreement.

    (g)               
Successors and Assigns. This Agreement will be binding upon and
inure to the benefit of the Parties and their respective successors and
permitted assigns. No Party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written approval
of the other Parties, which may be granted or withheld at the sole discretion
of such other Parties. Any unauthorized assignment is void.

    (h)               
Severability. Any provision of this Agreement that is invalid,
illegal or unenforceable in any jurisdiction will, as to that jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability,
without affecting in any way the remaining provisions hereof in such
jurisdiction or rendering that or any other provision of this Agreement
invalid, illegal or unenforceable in any other jurisdiction.

    (i)                 
Expenses. Each Party will pay all fees and expenses (including,
without limitation, legal and accounting fees and expenses) incurred by such
Party in connection with the transactions contemplated by this Agreement.  

    (j)                
Governing Law. This Agreement will be governed by and construed
in accordance with the laws of the State of Colorado, without giving effect to
principles of conflicts of laws.

    (k)              
Counterparts; Signatures. This Agreement may be executed in one
or more counterparts, each of which will be deemed to be an original, but all
of which will be one and the same document. Facsimiles and electronic copies in
portable document format ("PDF") containing original signatures shall be
deemed for all purposes to be originally signed copies of the documents that
are the subject of such facsimiles or PDF versions.

    (l)                 
Entire Agreement. This Agreement, the schedules and exhibits
hereto, and the agreements and instruments to be delivered by the Parties on
Closing represent the entire understanding and agreement between the Parties
and supersede all prior oral and written and all contemporaneous oral
negotiations, commitments and understandings. 

-20-

    (m)             
Amendment. This Agreement may be amended by the Parties hereto by
action taken by or on behalf of their respective Boards of Directors at any
time prior to the Effective Time. This Agreement may not be amended by the
Parties hereto except by execution of an instrument in writing signed on behalf
of each of TRXO, TEREX, and Acquisition Sub.

[Signature page to follow]

 

-21-

IN WITNESS
WHEREOF, the parties hereto have executed this Agreement and Plan of Merger as
of the date first above written.

T-REX OIL,
INC.

By:       /s/
Don Walford                                                            

Don
Walford

Its:        Chief
Executive Officer

TEREX
ACQUISITION CORP.

By:                                                                               

                                                            Its:        President

TEREX ENERGY
CORPORATION

By:       /s/
Don Walford                                                            

                                                            Name:
Don Walford

                                                            Its:        Chief
Executive Officer

-22-

Schedule
1

Definitions

"Adverse Effect" means,
with respect to each Party, any effect or change that would have a material
adverse effect on the results of operations, financial condition, assets,
properties or business of the party, taken as a whole, or on the ability of the
Party to consummate timely the transactions contemplated hereby.

"Affiliate" has the
meaning set forth in Exchange Act Rule 12b-2.

"ERISA" means the
Employee Retirement Income Security Act of 1974, as amended, and the
regulations promulgated thereunder.

"Effective Time" means
the time of acceptance for recording of Articles of Merger effectuating the
Merger by the Secretary of State of the State of Colorado in accordance with
the General Corporation Law of the State of Colorado (but not earlier than the
Closing Date) or at such later time that the parties hereto shall have agreed
upon and designated in such filing in accordance with applicable law as the
effective time of the Merger.

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

"GAAP" means United
States generally accepted accounting principles as in effect from time to time,
consistently applied.

"Knowledge" means the
actual knowledge of the executive officers of a Party, without independent
investigation.

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

"SEC" means the
Securities and Exchange Commission.

Schedule 5(b)1

TEREX ENERGY
CORPORATION

WARRANTS AND
OPTIONS SCHEDULE

WARRANTS

 

	
  HOLDER

  	
  NUMBER OF SHARES

  	
  EXERCISE PRICE

  	
  TERM

  
	
   

  	
   

  	
   

  	
   

  
	
  Heim

  	
  200,000

  	
  $1.00

  	
  3 years

  
	
  Heim

  	
  200,000

  	
  $1.00

  	
  3 years

  
	
  Hot Springs Resources

  	
  240,000

  	
  $1.00

  	
  3 years

  
	
  Merschat Minerals

  	
  100,000

  	
  $1.00

  	
  3 years

  
	
  Merschat

  	
  30,000

  	
  $1.00

  	
  3 years

  
	
  Merschat

  	
  30,000

  	
  $1.00

  	
  3 years

  
	

  	
  800,000

  	

  	

  

 

OPTIONS

 

	
  HOLDER

  	
  NUMBER OF SHARES

  	
  EXERCISE PRICE

  	
  TERM

  
	
   

  	
   

  	
   

  	
   

  
	
  Blue Ridge

  	
  150,000

  	
  $0.10

  	
  3 years

  
	
  Gottlob

  	
  100,000

  	
  $0.10

  	
  3 years

  
	
  Gregarek

  	
  150,000

  	
  $0.10

  	
  3 years

  
	
  Nichols

  	
  500,000

  	
  $0.10

  	
  3 years

  
	
  Nichols

  	
  250,000

  	
  $0.10

  	
  3 years

  
	

  	
  1,150,000

  	

  	

  

 

Schedule 6(b)iii

T-REX OIL, INC.

WARRANTS AND OPTIONS
SCHEDULE

WARRANTS

 

	
  HOLDER

  	
  NUMBER OF SHARES

  	
  EXERCISE PRICE

  	
  TERM

  
	
   

  	
   

  	
   

  	
   

  
	
  Jeffrey B. Bennett

  	
  14,285

  	
  $3.50

  	
  3 years

  
	
  Mathijs van Houweninge

  	
  14,285

  	
  $3.50

  	
  3 years

  
	
  A.L. (Sid) Overton

  	
  14,285

  	
  $3.50

  	
  3 years

  
	

  	
  42,855

  	

  	

  

 

OPTIONS

 

None.

 

TEREX SCHEDULE

 

  
  	
       
	
       
	
       

	
      Subsidiaries:
	
       
	
      T-Rex Oil LLC #1

	
       
	
       
	
       

	
      Conflict:
	
       
	
      None

	
       
	
       
	
       

	
      Litigation:
	
       
	
      None

	
       
	
       
	
       

	
      Insurance:
	
       
	
       

	
       
	
       
	
       

	
      Intangible Property:
	
       
	
      None

	
       
	
       
	
       

	
      Real Property:
	
       
	
      Oil and gas properties in Utah, Nebraska and
      Wyoming as described below.

	
       
	
       
	
       

	
      Contracts & Commitments:
	
       
	
      See Below.

	
       
	
       
	
       

	
      Employee Benefit Plans:
	
       
	
      None, other than the 2014 Stock Option Plan

	
       
	
       
	
       

  

 

Real Property - Oil and Gas Properties:

 

Our portfolio of oil and gas properties is as
follows:

 

  	
       
	
       
	
      
      Gross Acres

	
      WYOMING
	
       
	
       

	
      Cole Creek
	
       
	
      
      7,000

	
      Burke Ranch
	
       
	
      
      4,500

	
       
	
       
	
      
       

	
      NEBRASKA
	
       
	
      
       

	
      Oil Well -
      Water Injection Project
	
       
	
      
      240

	
       
	
       
	
      
       

	
      UTAH
	
       
	
      
       

	
      Mondo Project
	
       
	
      
      3,955

 

Commitments and Contingencies:

 

Operating Lease

The Company leases an
office space in Colorado at the rate of $4,572 per month and the lease expires
in August 2017.  

 

Consulting Agreement

 

The Company entered into
a three year agreement effective September 1, 2014 with a consultant to perform
services at the base rate of $150,000 per year under certain terms and
conditions including with an auto allowance of $600 per month. 

 

 

TRXO SCHEDULE

 

  
  	
       
	
       
	
       

	
      Subsidiaries:
	
       
	
      None

	
       
	
       
	
       

	
      Conflict:
	
       
	
      None

	
       
	
       
	
       

	
      Litigation:
	
       
	
      None

	
       
	
       
	
       

	
      Insurance:
	
       
	
       

	
       
	
       
	
       

	
      Intangible Property:
	
       
	
      None

	
       
	
       
	
       

	
      Real Property:
	
       
	
      None.

	
       
	
       
	
       

	
      Contracts & Commitments:
	
       
	
      None.

	
       
	
       
	
       

	
      Employee Benefit Plans:
	
       
	
      None, other than those option plans listed on
      Schedule 6(b)(iii)

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