Document:

exhibit102.htm

Exhibit 10.2

 

SOUTH AMERICAN GOLD CORP.

CONSULTING AGREEMENT

This CONSULTING AGREEMENT (the “Agreement”) is entered into as of June 24, 2011 (the “Effective Time”), by and between SOUTH AMERICAN GOLD CORP., a Nevada corporation, (the “Company”) and BROOKVILLE ENTERPRISES, INC. (the “Consultant”).  In consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

1.           Position. The Company retains Consultant to serve as its President and Chief Executive Officer.

2.           Duties. Consultant agrees to discharge the duties, functions and responsibilities commensurate with his position and such other duties and responsibilities as may be prescribed from time to time by the Board of Directors of the Company (the “Board”). Consultant shall devote such business time, attention and energies reasonably necessary to the diligent and faithful performance of the services to the Company and its affiliates.

3.            Term. This Agreement shall commence as of the Effective Time and, unless terminated as set forth in Section 7, continue for a period of one-year; provided, however, that on each anniversary of the Effective Time the term of the Agreement shall automatically be extended for an additional one-year period (restoring the initial one-year term), unless either party notifies the other party in writing at least 30 days prior to such anniversary.  The term of this Agreement as in effect from time to time shall be referred to as the “Term.”

4.           Compensation. During the Term, the Company shall pay Consultant, or at Consultant’s option his personal service company, at salary of seven thousand five hundred dollars ($7,500.00) for every month of service payable at the time and in the manner dictated by the Company’s standard payroll policies. The monthly rate of compensation may be periodically reviewed and increased (but not decreased without Consultant’s express written consent) at the discretion of the Board or Compensation Committee of the Board (the “Committee”) to reflect, among other matters, cost of living increases and performance results (such Base Monthly Rate, including any increases pursuant to this Section 4, the “Monthly Rate”).

5.            Other Compensation and Fringe Benefits. Consultant shall be entitled to the standard Company benefits enjoyed by the Company’s other top executives as a group during the Term.

6.           Expense Reimbursement. In addition to the compensation and benefits provided herein, the Company shall, upon receipt of appropriate documentation, reimburse Consultant each month for his reasonable travel, business and professional memberships, lodging, entertainment, promotion and other ordinary and necessary business expenses to the extent such reimbursement is permitted under the Company’s expense reimbursement policy.

7.           Termination of Consultant. The Company or Consultant may terminate Consultant’s service with the Company at any time and for any reason in accordance with Subsection 7(a) below. The Term shall be deemed to have ended on the last day of Consultant’s service with the Company. The Term shall terminate automatically upon Consultant’s death.

 

 

  

  

  

 

 

	
  

	
(a)

	
Notice of Termination.  Any purported termination of Consultant (other than by reason of death) shall be communicated by written Notice of Termination (as defined herein) from one party to the other in accordance with the notice provisions contained in Section 21. For purposes of this Agreement, a “Notice of Termination” shall mean a notice that indicates the Date of Termination (as that term is defined in Subsection 7(b)) and, with respect to a termination due to Cause (as that term is defined in Subsection 7(d)), Disability (as that term is defined in Subsection 7(e)) or Good Reason (as that term is defined in Subsection 7(f)), sets forth in reasonable detail the facts and circumstances that are alleged to provide a basis for such termination. A Notice of Termination from the Company shall specify whether the termination is with or without Cause, unless both parties mutually agree on the termination, or due to Consultant’s Disability. A Notice of Termination from Consultant shall specify whether the termination is with or without Good Reason or due to Disability.

	
  

	
(b)

	
Date of Termination.  For purposes of this Agreement, the “Date of Termination” shall mean the date specified in the Notice of Termination (but in no event shall such date be earlier than the thirtieth (30th) day following the date the Notice of Termination is given) or the date of Consultant’s death. Notwithstanding the foregoing, in no event shall the Date of Termination occur until Consultant experiences a “separation from service” within the meaning of Code Section 409A, and notwithstanding anything contained herein to the contrary, the date on which such separation from service takes place shall be the “Date of Termination.”

	
  

	
(c)

	
No Waiver. The failure to set forth any fact or circumstance in a Notice of Termination, which fact or circumstance was not known to the party giving the Notice of Termination when the notice was given, shall not constitute a waiver of the right to assert such fact or circumstance in an attempt to enforce any right under or provision of this Agreement.

	
  

	
(d)

	
Cause. For purposes of this Agreement, a termination for “Cause” means a termination by the Company based upon Consultant’s: (i) persistent failure to perform duties consistent with a commercially reasonable standard of care (other than due to a physical or mental impairment or due to an action or inaction directed by the Company that would otherwise constitute Good Reason); (ii) willful neglect of duties (other than due to a physical or mental impairment or due to an action or inaction directed by the Company that would otherwise constitute Good Reason); (iii) conviction of, or pleading  nolo contendere to, criminal or other illegal activities involving dishonesty; (iv) material breach of this Agreement; or (v) failure to materially cooperate with or impeding an investigation authorized by the Board. Termination of cause requires unanimous recommendation by the Compensation committee, together with such recommendation indicating written communication the Committee or Board has provided Consultant at least 30 days prior to the termination letter advising the deficiencies in performance described herein.

 

 

 

  

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(e)

	
Disability. For purposes of this Agreement, a termination based upon “Disability” means a termination by the Company based upon Consultant’s entitlement to long-term disability benefits under the Company’s long-term disability plan or policy, as the case may be, as in effect on the Date of Termination.

	
  

	
(f)

	
Good Reason. For purposes of this Agreement, a termination for “Good Reason” means a termination by Consultant during the Term based upon the occurrence (without Consultant’s express written consent) of any of the following:

	
  

	
(i)

	
a material diminution in Consultant’s position or title, or the assignment of duties to Consultant that are materially inconsistent with Consultant’s position or title in effect as of immediately following the Effective Time;

	
  

	
(ii)

	
a material diminution in Consultant’s Base Monthly Rate or bonus opportunity;

	
  

	
(iii)

	
within six (6) months immediately preceding or within one (1) year immediately following a Change in Control: (A) a material adverse change in Consultant’s status, authority or responsibility (e.g. The Company has determined that a change in the department or functional group over which Consultant has managerial authority would constitute such a material adverse change); (B) a requirement that Consultant report to a corporate officer or Consultant instead of reporting directly to the Board; (C) a material diminution in the budget over which Consultant has managing authority; or (D) a material change in the geographic location of Consultant’s principal place of service with the Company; or

	
  

	
(iv)

	
a material breach by the Company of any of its obligations under this Agreement.

Notwithstanding the foregoing, Consultant being placed on a paid leave for any period of time pending a determination of whether there is a basis to terminate Consultant for Cause shall not constitute Good Reason.  Consultant’s continued service with the Company shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder; provided, however, that no such event described above shall constitute Good Reason unless:

	
  

	
(1)

	
Consultant gives Notice of Termination to the Company specifying the condition or event relied upon for such termination either: (x) within sixty (60) days of the initial existence of such event; or (y) in the case of an event predating a Change in Control, within sixty (60) days of the Change in Control; and

	
  

	
(2)

	
the Company fails to cure the condition or event constituting Good Reason within thirty (30) days following receipt of Consultant’s Notice of Termination (the “Cure Period”). In the event that the Company fails to remedy the condition constituting Good Reason during the applicable Cure Period, Consultant’s “separation from service” (within the meaning of Code Section 409A) must occur, if at all, within ninety (90) days following such Cure Period in order for such termination as a result of such condition to constitute a termination for Good Reason.

 

 

 

  

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8.           Obligations of the Company Upon Termination.

	
  

	
(a)

	
Termination by the Company for a Reason Other than Cause, Death or Disability and Termination by Consultant for Good Reason. Subject to Sections 8(e) and 14, if Consultant is terminated by: (1) the Company for any reason other than Cause, Death or Disability; or (2) Consultant for Good Reason:

	
  

	
(i)

	
The Company shall pay Consultant the following (collectively, the “Accrued Obligations”): (A) within five (5) business days after the Date of Termination, any earned but unpaid compensation for time worked; and (B) within a reasonable time following submission of all applicable documentation, any expense reimbursement payments owed to Consultant for expenses incurred prior to the Date of Termination; and

	
  

	
(ii)

	
The Company shall pay Consultant, within fifteen (15) business days after the Date of Termination, a lump-sum payment equal to the total compensation earned by Consultant in the three months immediately prior to the Date of Termination (disregarding any reduction in Base Monthly Rate to which Consultant did not expressly consent in writing).

	
  

	
(b)

	
Termination by the Company for Cause and by Consultant without Good Reason. If Consultant is terminated by the Company for Cause or by  Consultant without Good Reason, the Company’s only obligation under this Agreement shall be payment of any Accrued Obligations if the Consultant has been with the Company less than twelve months, otherwise payments will be the same as (a) unless there by unanimous vote the Compensation committee elects under these circumstances to pay the three months compensation described above.

	
  

	
(c)

	
Termination due to Death or Disability. Subject to Sections 8(e), if Consultant is terminated due to death or Disability, the Company shall pay Consultant (or to Consultant’s estate or personal representative in the case of death) any Accrued Obligations.

	
  

	
(d)

	
Definition of Change in Control. For purposes of this Agreement, the term “Change in Control” shall mean that the conditions set forth in any one of the following subsections shall have been satisfied:

	
  

	
(i)

	
the acquisition, directly or indirectly, by any “person” (within the meaning of Section 3(a)(9) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and used in Sections 13(d) and 14(d) thereof) of “beneficial ownership” (within the meaning of Rule 13d-3 of the Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power of all outstanding securities of the Company;

	
  

	
(ii)

	
a merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders of the outstanding voting securities of the Company immediately prior to such merger or consolidation hold, in the aggregate, securities possessing more than 50% of the total combined voting power of all outstanding voting securities of the surviving entity immediately after such merger or consolidation;

 

 

  

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(iii)

	
a reverse merger in which the Company is the surviving entity but in which securities possessing more than 50% of the total combined voting power of all outstanding voting securities of the Company are transferred to or acquired by a person or persons different from the persons holding those securities immediately prior to such merger;

	
  

	
(iv)

	
during any period of one year during the Term or any extensions thereof, individuals, who, at the beginning of such period, constitute the Board, cease for any reason to constitute at least a majority thereof, unless the election of each director who was not a director at the beginning of such period has been approved in advance by directors representing at least two-thirds of the directors then in office who were directors at the beginning of the period;

	
  

	
(v)

	
the sale, transfer or other disposition (in one transaction or a series of related transactions) of assets of the Company that have a total fair market value equal to or more than one-third of the total fair market value of all of the assets of the Company immediately prior to such sale, transfer or other disposition, other than a sale, transfer or other disposition to an entity (x) which immediately following such sale, transfer or other disposition owns, directly or indirectly, at least 50% of the Company’s outstanding voting securities or  (y) 50% or more of whose outstanding voting securities is immediately following such sale, transfer or other disposition owned, directly or indirectly, by the Company. For purposes of the foregoing clause, the sale of stock of a subsidiary of the Company (or the assets of such subsidiary) shall be treated as a sale of assets of the Company; or

	
  

	
(vi)

	
the approval by the stockholders of a plan or proposal for the liquidation or dissolution of the Company.

	
  

	
(e)

	
Six-Month Delay. To the extent Consultant is a “specified Employee,” as defined in Section 409A(a)(2)(B)(i) of the Code and the regulations and other guidance promulgated thereunder and any elections made by the Company in accordance therewith, notwithstanding the timing of payment provided in any other Section of this Agreement, no payment, distribution or benefit under this Agreement that constitutes a distribution of deferred compensation (within the meaning of Treasury Regulation Section 1.409A-l(b)) upon Consultant’s “separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)), after taking into account all available exemptions, that would otherwise be payable during the six-month period after separation from service, will be made during such six-month period, and any such payment, distribution or benefit will instead be paid on the first business day after such six-month period (the “Delayed Payment Date”); provided, however, that if Consultant dies following the Date of Termination but prior to the Delayed Payment Date, such amounts shall be paid to the personal representative of Consultant’s estate within thirty (30) days following the Consultant’s death.

 

 

 

  

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9.           Parachute Payment Limit. If any payments or benefits paid or provided or to be paid or provided to Consultant or for his benefit pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, his service with the Company or its subsidiaries or the termination thereof (a “Payment” and, collectively, the “Payments”) would be subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code, then, the Payments shall be reduced to one dollar less than what would constitute a “parachute payment” under Section 280G of the Code (the “Scaled Back Amount”).

10.           Non-Delegation of Consultant’s Rights. The obligations, rights and benefits of

Consultant hereunder are personal and may not be delegated, assigned or transferred in any manner whatsoever, nor are such obligations, rights or benefits subject to involuntary alienation, assignment or transfer.

11.           Confidential Information. Consultant acknowledges that he will occupy a position of trust and confidence and will have access to and learn substantial information about the Company and its affiliates and their operations that is confidential or not generally known in the industry including, without limitation, information that relates to purchasing, sales, customers, marketing, and the financial positions and financing arrangements of the Company and its affiliates. Consultant agrees that all such information is proprietary or confidential, or constitutes trade secrets and is the sole property of the Company and/or its affiliates, as the case may be.

Consultant will keep confidential, and will not reproduce, copy or disclose to any other person or firm, any such information or any documents or information relating to the Company’s or its affiliates’ methods, processes, customers, accounts, analyses, systems, charts, programs, procedures, correspondence or records, or any other documents used or owned by the Company or any of its affiliates, nor will Consultant advise, discuss with or in any way assist any other person, firm or entity in obtaining or learning about any of the items described in this Section 11. Accordingly, Consultant agrees that during the Term and at all times thereafter he will not disclose, or permit or encourage anyone else to disclose, any such information, nor will he utilize any such information, either alone or with others, outside the scope of his duties and responsibilities with the Company and its affiliates.

12.           Return of the Company Documents. Upon termination of the Term, Consultant shall return immediately to the Company all records and documents of or pertaining to the Company or its affiliates and shall not make or retain any copy or extract of any such record or document, or any other property of the Company or its affiliates.

13.           Actions. The parties agree and acknowledge that the rights conveyed by this Agreement are of a unique and special nature and that the Company will not have an adequate remedy at law in the event of a failure by Consultant to abide by its terms and conditions, nor will money damages adequately compensate for such injury. Therefore, it is agreed between and hereby acknowledged by the parties that, in the event of a breach by Consultant of any of the obligations of this Agreement, the Company shall have the right, among other rights, to damages sustained thereby and to obtain an injunction or decree of specific performance from any court of competent jurisdiction to restrain or compel Consultant to perform as agreed herein. Consultant hereby acknowledges that obligations under Sections and Subsections 11 and 12 shall survive the Term of the Agreement and be binding by their terms at all times subsequent to the termination of Consultant for the periods specified therein. Nothing herein shall in any way limit or exclude any other right granted by law or equity to the Company.

 

 

  

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14.           Release. Notwithstanding any provision herein to the contrary, the Company may require that, prior to payment of any amount or provision of any benefit under Section 8, Consultant shall have executed a complete release of the Company and its affiliates and related parties in such form as is reasonably required by Company, and any waiting periods contained in such release shall have expired; provided that the release shall not apply to Consultant’s rights under the Company’s benefit plans and programs, which rights shall be determined in accordance with the terms of such plans and programs. With respect to any release required to receive payments owed pursuant to Section 8, the Company must provide Consultant with the form of release no later than seven (7) days after the Date of Termination and the release must be signed by Consultant and returned to Company, unchanged, effective and irrevocable, no later than sixty (60) days after the Date of Termination.

15.           No Mitigation. The Company agrees that, if Consultant is terminated during the Term, Consultant is not required to seek other service or Consulting or to attempt in any way to reduce any amounts payable to Consultant by the Company hereunder.

16.           Entire Agreement and Amendment. This Agreement embodies the entire agreement and understanding of the parties hereto in respect of the subject matter of this Agreement, and supersedes and replaces all prior agreements, understandings and commitments with respect to such subject matter. This Agreement may be amended only by a written document signed by both parties to this Agreement.

17.           Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Colorado, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

18.           Successors. This Agreement may not be assigned by Consultant. In addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the stock, business and/or assets of the Company, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption by a successor shall be a material breach of this Agreement. Consultant agrees and consents to any such assumption by a successor or parent of the Company, as well as any assignment of this Agreement by the Company for that purpose. As used in this Agreement, “Company” shall mean the Company as herein before defined as well as any such successor or parent that expressly assumes this Agreement or otherwise becomes bound by all of its terms and provisions by operation of law.

19.           Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

20.           Severability. If any section, subsection or provision hereof is found for any reason whatsoever to be invalid or inoperative, that section, subsection or provision shall be deemed severable and shall not affect the force and validity of any other provision of this Agreement. If any covenant herein is determined by a court to be overly broad thereby making the covenant unenforceable, the parties agree and it is their desire that such court shall substitute a reasonable judicially enforceable limitation in place of the offensive part of the covenant and that as so modified the covenant shall be as fully enforceable as if set forth herein by the parties themselves in the modified form. The covenants of Consultant in this Agreement shall each be construed as an agreement independent of any other provision in this Agreement, and the existence of any claim or cause of action of Consultant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants in this Agreement.

 

 

 

  

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21.           Notices. Any notice, request, or instruction to be given hereunder shall be in writing and shall be deemed given when personally delivered or three (3) days after being sent by United States Certified Mail, postage prepaid, with Return Receipt Requested, to the parties at their respective addresses set forth below:

To Company:

South American Gold Corp.

3645 E. Main Street, Suite 119

Richmond, IN 47374

Attention: Chief Executive Officer

To Consultant:

Brookville Enterprises, Inc.

At the most recent address on file at the Company.

22.           Waiver of Breach. The waiver by any party of any provisions of this Agreement shall not operate or be construed as a waiver of any prior or subsequent breach by the other party.

23.           Tax Withholding. The Company or an affiliate may deduct from all compensation and benefits payable under this Agreement any taxes or withholdings the Company is required to deduct pursuant to state, federal or other laws.

24.           Code Section 409A. To the extent applicable, it is intended that this Agreement and any payment made hereunder shall comply with the requirements of Section 409A of the Code or an exemption or exclusion therefrom, and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service (“Code Section 409A”) and shall in all respects be administered in accordance with Code Section 409A. .Any provision that would cause the Agreement or any payment hereof to fail to satisfy Code Section 409A shall have no force or effect until amended to comply with Code Section 409A in the least restrictive manner necessary and without any diminution in the value of the payments to Consultant, which amendment may be retroactive to the extent permitted by Code Section 409A.

IN WITNESS WHEREOF the parties have executed this Agreement to be effective as of immediately following the Effective Time.

SOUTH AMERICAN GOLD CORP.

 

By: /s/    Camilio Velasquez                                            

Camilio Velasquez

Its:          Chief Financial Officer

BROOKVILLE ENTERPRISES, INC.

 

By: /s/     Raymond DeMotte                                            

Raymond DeMotte

 

 

  

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Exhibit 10.1

GLOBAL SETTLEMENT AND FULL RELEASE AND WAIVER

The Parties to this Global Settlement and Full Release and Waiver (“The Settlement”) hereby agree as follows:

I.

Parties to The Settlement

The following entities, businesses and individuals are the exclusive parties to The Settlement, and shall be identified collectively as “The Parties” otherwise specifically identified individually or in selected sub-groups as set forth herein:

	
  

	
·

	
“Plaintiff” [and Cross-Defendant]: Freestone Resources, In. (“Freestone”), a publicly held and traded corporation;

	
  

	
·

	
“Defendants”:

	
  

	
o

	
Lawrence Shultz (“Shultz”), an individual residing in Los Angeles County, California;

	
  

	
o

	
Environmental Services and Support, Inc. (“ESSI”), a California Corporation;

	
  

	
o

	
David Feuerborn (“Feuerborn”), an individual residing in Ventura County, California;

	
  

	
o

	
Thomas Jennings (“Jennings”), an individual residing in Orange County, California;

	
  

	
·

	
“Third Party Defendants”:

	
  

	
o

	
Clayton Carter (“C. Carter”), an individual residing in Dallas, County Texas;

	
  

	
o

	
James R. Carter (“J. Carter”), an individual residing in Dallas, County Texas;

	
  

	
o

	
Donald Edwards (“Edwards”), an individual residing in Dallas, County Texas;

	
  

	
o

	
James Carroll (“Carroll”), an individual residing in Passaic, County New Jersey;

II.

Counsel and Non-Parties to The Settlement

The following individuals and law firms are not signatories to The Settlement but by their execution of The Settlement, all Parties hereby acknowledge, understand and agree to a full, complete and final release of both the attorneys and their respective law firms for any and all claims (actual or potential) which any Party could bring against either attorney or their respective law firm.

	
  

	
·

	
S. George Alfonso, Esq. (“Alfonso”);

	
  

	
·

	
The Law Offices of S. George Alfonso (“The Alfonso Firm”);

	
  

	
·

	
Neil C. Evans, Esq. (“Evans”);

	
  

	
·

	
The Law Offices of Neil C. Evans (“The Evans Firm”);

Global Settlement Release and Waiver

Page 1 of 14

  

III.

Recitals

WHEREAS, Freestone is a fully reporting public company which files all required reports and notices on the SEC’s EDGAR securities reporting system; and

WHEREAS, the common stock of Freestone is a registered security that is traded on the Over-the-Counter Bulletin Board stock exchange under the trading symbol of FSNR.OB; and

WHEREAS, on or about September 24, 2009, Freestone entered into a Stock Purchase Agreement with Shultz and ESSI (the “Stock Purchase Agreement”); and

WHEREAS, the Stock Purchase Agreement was executed by (i) Clayton Carter, Freestone’s President, and (ii) Shultz, on his own behalf, and (iii) Feuerborn and Jennings, on behalf of ESSI; and

WHEREAS, under the terms of the Stock Purchase Agreement, Freestone agreed to, and did, pay Shultz and ESSI the sum of $150,000.00 and 31,603,734 shares of the common stock of Freestone (restricted pursuant to SEC Rule 144) in exchange for the transfer to Freestone by Shultz and ESSI of all of the stock (10,000,000 shares of common stock) of Earth Oil Services, Inc. ( “EOS”), a Nevada corporation; and

WHEREAS, the parties desire to compromise and settle all of the matters in controversy between them.

NOW, THEREFORE, in consideration of the foregoing premises, the parties intend, by execution of The Settlement, to completely and finally resolve all matters in controversy between them, and agree as follows:

IV.

Purpose and Goal of The Settlement

The Parties understand acknowledge and agree that the purpose and goal of The Settlement is to permanently and irrevocably effectuate a final and binding global settlement and release of The Parties one to another and their respective lawyers and their law firms, regarding the lawsuit of Freestone Resources, Inv. vs. Lawrence Shultz, Environmental Services and Support, David Feuerborn and Thomas Jennings vs. Freestone Resources, Inc. Clayton Carter, James R. Carter, Donald Edwards and James Carroll, Cause No. 3:10-CV-01349-O in the U.S. District Court, Northern District of Texas, Dallas Division (“The Lawsuit”).

The Parties understand acknowledge and agree that The Settlement shall be a full and final binding global release as to any and all claims, matters, legal, equitable or ethical, for past and prior acts, as well administrative claims and/or complaints of any type or allegation(s)/matters for past and prior acts which may or could be brought by any of The Parties against any of the other Parties or the respective lawyers and their law firms, to any court, arbitrator, governing or regulatory board or any entity with authority over any of The Parties or counsel regarding all prior actions in and/or relating to The Lawsuit.

Global Settlement Release and Waiver

Page 2 of 14

  

1.

Rescission of All Agreements and Contracts Between the Parties

The Parties understand acknowledge and agree that upon the full and complete execution of The Settlement by The Parties, all agreements, contracts or promises of any kind, whether oral or written between The Parties including  but not limited to any and all technology license agreements and the Stock Purchase Agreement shall be, and hereby are, rescinded.

V.

Terms, Obligations and Duties Required by The Settlement

The Parties understand acknowledge and agree to the following terms, obligations and duties required by The Settlement as set forth herein.

A.

Obligations, Duties and Rights of Defendant ESSI

Defendant ESSI understands, acknowledges and agrees that in consideration for the following acts and terms to be performed by Freestone, Defendant ESSI hereby agrees to the following obligations, duties and assumes the rights as set forth herein.

1.

Exchange of All Freestone Stock Held or Possessed by Defendant ESSI to Freestone For

Cancellation, with the Exception of 2,500,000 Shares Which Shall be Retained by ESSI, and 

Reciprocal Transfer by Freestone of 7,785,000 shares of EOS Stock Held or Possessed by Cross 

Defendant Freestone to Defendant ESSI.

Defendant ESSI understands, acknowledges and agrees that it shall within seven (7) business days of the execution of The Settlement, return to Freestone (by formal transfer and conveyance) for cancellation all shares of Freestone Common Stock (“The ESSI Shares”) that were issued to ESSI pursuant to the terms of the Stock Purchase Agreement, with the exception of 2,500,000 shares.  Defendant ESSI shall sign and/or endorse any and all stock certificates, stock powers, and any other such conveyance instruments that Freestone requests to be executed, and cause the signature on such stock certificates, stock powers, and any other such conveyance instruments to be Gold Medallion Guaranteed.

Cross Defendant Freestone understands, acknowledges and agrees that it shall within seven (7) business days of the execution of The Settlement, return to ESSI (by formal transfer and conveyance) of 7,785,000 shares of the EOS Common Stock that it owns and maintains custody or control over (“The EOS Shares”) that were issued to Freestone pursuant to the terms of the Stock Purchase Agreement.  Cross Defendant Freestone shall sign and/or endorse any and all stock certificates, stock powers, and any other such conveyance instruments that ESSI requests to be executed, and cause the signature on such stock certificates, stock powers, and any other such conveyance instruments to be Gold Medallion Guaranteed.

Global Settlement Release and Waiver

Page 3 of 14

  

2.

Retention of 2,500,000 Shares of Freestone by ESSI Following Return to Freestone

(By Formal Transfer and Conveyance) of All Shares of the ESSI Freestone Shares

Freestone and Defendant ESSI understand, acknowledge and agree upon the timely full and complete compliance as required herein of the transfer return by ESSI of all Freestone for cancellation, Freestone shall cause its stock transfer agent to re-issue 2,500,000 shares of the ESSI Shares (“ESSI Re-issued Shares”) to ESSI within ten (10) business days of receipt of all ESSI Shares by Freestone.

a.

Restrictions on the ESSI Re-Issued Shares

Freestone and Defendant ESSI understand, acknowledge and agree that the ESSI Re-Issued Shares shall be issued to ESSI with two (2) stock certificates, both of which shall contain a restrictive legend on their face that refers to a Shareholder Agreement (the “Shareholder Agreement”) to be entered into by and among (i) Freestone and (ii) ESSI, Feuerborn, and Jennings in the form of Exhibit “A” attached hereto and incorporated herein by reference.  One of the stock certificates shall represent 1,200,000 shares of Freestone Common Stock and one of the stock certificates shall represent 1,300,000 shares of Freestone Common Stock.  The Shareholder Agreement shall contain the following terms:

i.

Restriction on 1,200,000 Shares of the ESSI Re-Issued Shares

The stock certificate representing 1,200,000 shares of the ESSI Re-issued Shares (the “1,200,000 Share Certificate”) shall be restricted as follows:

No more than 400,000 shares may be sold in any calendar month.

ii.

Restriction on 1,300,000 Shares of the ESSI Re-Issued Shares

The stock certificate representing 1,300,000 shares of the ESSI Re-issued Shares (the “1,300,000 Share Certificate”) shall be restricted as follows:

	
  

	
·

	
No stock may be sold until February 1, 2012

	
  

	
·

	
From and after February 1, 2012, no more than 200,000 shares may be sold in any calendar month

3.

ESSI Shall be Granted an Option to Purchase 500,000 Shares of Freestone Common Stock

Freestone and Defendant ESSI understand, acknowledge and agree that, subject to the full and complete execution of The Settlement and all related documents, and the full and complete performance of all requirements thereunder, ESSI shall have an option (“The ESSI Option”) for a period of fifteen (15) months from the effective date of The Settlement to purchase up to 500,000 shares of Freestone Common Stock (restricted under SEC Rule 144), directly from Freestone, at the price of $0.06 (six cents) per share.

Global Settlement Release and Waiver

Page 4 of 14

  

a.

Agreement of Freestone to Pay for Legal Opinion to Satisfy Rule 144 and

Fees Required for a Registration Statement

Freestone and Defendant ESSI understand, acknowledge and agree that in the event ESSI exercises all or a portion of The ESSI Option, Freestone will, for said initial exercise of The ESSI Option, pay the necessary legal fees required for ESSI to obtain one  required “Legal Opinion” relating to the ESSI Option and one Legal Opinion relating to the registration statement (if any), up to $2,500.00 (for each), on a one-time basis for each (“The Legal Opinion/Registration Statement Fees”) if and only if the following conditions are satisfied by ESSI.

i.

ESSI Shall Notify Freestone in Writing of its Request for Freestone to Pay for the Legal Opinion 

at Least Ten Business Days Before Exercising The ESSI Option

Freestone and Defendant ESSI understand, acknowledge and agree that Freestone shall only be required to pay The Legal Opinion Fees/Registration Statement Fees in the event that ESSI provides Freestone with written notice of its request for Freestone pay said Legal Opinion/Registration Statement Fees, at least Ten (10) business days before ESSI exercises The ESSI Option.

ii.

Freestone Maintains Absolute Right to Designate the Law Firm to Retain to

Draft the Legal Opinion/Registration Statement

Freestone and Defendant ESSI understand, acknowledge and agree that Freestone shall at all times maintain the absolute right to designate the law firm which it will retain on behalf of ESSI, to draft the Legal Opinion/Registration Statement Fees and that upon receipt of the above-described written request by ESSI, Freestone shall so designate the law firm and notify ESSI in writing of said designation no more than seven (7) business days after the ESSI written request is received by Freestone.

Freestone and Defendant ESSI understand, acknowledge and agree that at all times, ESSI is free to reject the Freestone’s selected and designated law firm to draft the Legal Opinion/Registration Statement, but that in the event of a rejection, Freestone shall be released from paying any legal fees for The Legal Opinion/Registration Statement.

iii.

ESSI Must Notify Freestone in Writing of Approval of Freestone’s Designated Law Firm

Freestone and Defendant ESSI understand, acknowledge and agree that ESSI shall be required to notify Freestone in writing, within seven (7) business days of the receipt of Freestone’s designation of the law firm to draft The Legal Opinion/Registration Statement and that failure to so notify Freestone by ESSI of ESSI’s agreement to said firm shall void Freestones obligation under The Settlement to  pay for The Legal Opinion/Registration Statement Fees.

 

 

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iv.

No Warranty or Promise by Freestone Regarding Time Table for Receipt of Required 

Authorization to Sell ESSI Option Shares

Freestone and Defendant ESSI understand, acknowledge and agree that Freestone has no control regarding the time between submission of the required Legal Opinion/Registration Statement and the Receipt of all required authorization for ESSI to sell the ESSI Option Shares but Freestone shall use its best efforts to accomplish this in a timely manner.

5.

Stock Proxies

Defendant ESSI hereby grants their irrevocable proxy to C. Carter with respect to all shares of the stock of Freestone that it shall or may own, vote, or control, including the Common Stock of Freestone to be issued to Defendant ESSI pursuant to Section V(A) of this Settlement.  Simultaneously with the execution of this Settlement, Defendant ESSI shall sign any and all stock proxy grant instruments that Freestone requests to be executed, and cause the signature on such stock proxy grant instruments to be Gold Medallion Guaranteed.  Defendant ESSI agrees that the proxy granted to C. Carter herein is valid and enforceable.  Defendant ESSI further agrees that the stock proxies granted by them to C. Carter will be binding on all future purchasers of such stock unless such stock is sold by Defendant ESSI in a broker/dealer transaction.

6.

Non-Assignment of Freestone Shares

Defendant ESSI understands, acknowledges and agrees that it shall be prohibited from assigning any of the Freestone shares which it will or may own at any time under the terms of The Settlement to any third party.

7.

The Parties Obligation to Refrain from Publishing or Disseminating

False or Disparaging Statements, Comments or Communications

About One Another

The Parties understand, acknowledge and agree that in consideration for the satisfaction of the obligations duties and rights as set forth in The Settlement that The Parties and each of their respective officers, directors, employees and agents shall collectively and individually at all times, refrain from publishing or disseminating (either directly or indirectly) any false or disparaging statements, comments or communications about one another.

8.

Defendants ESSI, Jennings and Feuerborn Warrant and Affirm All Freestone Shares Received 

by ESSI Under the Stock Purchase Agreement

Shall be Returned and Delivered to Freestone (With the Exception of 2,500,000 Shares)

By execution of The Settlement, Defendants ESSI, Jennings and Feuerborn hereby warrant and affirm that with regard to all Freestone shares received by ESSI under the Stock Purchase Agreement, that they have not assigned, delivered or caused any third party to hold any Freestone stock and have in fact returned all Freestone shares received by Defendant ESSI with the exception of the 2,500,000 shares as set forth herein.

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B.

Obligations, Duties and Warranties of Defendant Shultz

Defendant Shultz understands, acknowledges, agrees that in consideration for the following acts and terms to be performed by Freestone, Defendant Shultz hereby agrees to the following obligations and duties as set forth herein and warrants and affirms the following.

1.

Exchange of All Freestone Stock Held or Possessed by Defendant Shultz to Freestone For

Cancellation, with the Exception of 285,000 Shares Which Shall be Retained by Shultz, and 

Reciprocal Transfer by Freestone of 2,215,000 shares of EOS Stock Held or Possessed by Cross 

Defendant Freestone to Defendant Shultz.

Defendant Shultz understands, acknowledges and agrees that he shall within seven (7) business days of the execution of The Settlement, return to Freestone (by formal transfer and conveyance) for cancellation of all shares of the Freestone Common Stock he owns and maintains custody or control over (“The Shultz Shares”) that were issued to Shultz pursuant to the terms of the Stock Purchase Agreement (excluding the 285,000 shares that Shultz has previously assigned and delivered to third parties).  Defendant Shultz shall sign and/or endorse any and all stock certificates, stock powers, and any other such conveyance instruments that Freestone requests to be executed, and cause the signature on such stock certificates, stock powers, and any other such conveyance instruments to be Gold Medallion Guaranteed.

Cross Defendant Freestone understands, acknowledges and agrees that it shall within seven (7) business days of the execution of The Settlement, return to Shultz (by formal transfer and conveyance) of 2,215,000 shares of the EOS Common Stock that it owns and maintains custody or control over (“The EOS Shares”) that were issued to Freestone pursuant to the terms of the Stock Purchase Agreement.  Cross Defendant Freestone shall sign and/or endorse any and all stock certificates, stock powers, and any other such conveyance instruments that Shultz requests to be executed, and cause the signature on such stock certificates, stock powers, and any other such conveyance instruments to be Gold Medallion Guaranteed.

a.

Freestone Shares Previously Assigned and Physically Delivered to Assignees by

Defendant Shultz Exempt for Return to Freestone and Waiver of Interest

The Parties understand, acknowledge and agree that certain shares have previously been assigned and delivered by Defendant Shultz to certain identified individuals constituting a total of 285,000 shares (“The Delivered Freestone Shares”), and that none of The Delivered Freestone Shares shall be returned to Freestone.

The Parties further understand, acknowledge and agree that in consideration for the satisfaction of the obligations and duties of the Defendants, that Freestone and all the Third Party Defendants hereby specifically waive any and all rights or claims of any interest of The Delivered Freestone Shares, so long as the amount of Freestone Common Stock represented by The Delivered Freestone Shares does not exceed 285,000 shares.  Freestone also agrees to hold harmless all the recipients of the Delivered Freestone Shares so long as the amount of Freestone Common Stock represented by The Delivered Freestone Shares does not exceed 285,000 shares.

 

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b.

Defendant Shultz Warrants and Affirms No Other Assignments

and Delivery of Freestone Shares

By execution of The Settlement, Defendant Shultz hereby warrants and affirms that with regard to all Freestone shares he received under the Stock Purchase Agreement, he has not assigned, delivered or caused any third party to hold any other or additional shares of Freestone stock other than the amount explicitly set forth herein (of 285,000 shares), to the following individuals and/or entities: 1) Amin Ramji (75,000 shares); 2) Mislynne Charles (100,000 shares); 3) Daniel Gold (100,000 shares); Robert Nicholson (10,000 shares), and with said noted exception of the 285,000 shares has delivered all Freestone shares received by him under the Stock Purchase Agreement to Freestone as set forth and required in The Settlement.

2.

The Parties Obligation to Refrain from Publishing or Disseminating

False or Disparaging Statements, Comments or Communications

About One Another

The Parties understand, acknowledge and agree that in consideration for the satisfaction of the obligations duties and rights as set forth in The Settlement that The Parties and each of their respective officers, directors, employees and agents shall collectively and individually at all times, refrain from publishing or disseminating (either directly or indirectly) any false or disparaging statements, comments or communications about one another.

C.

Obligations, Duties and Warranties of Defendants Feuerborn and Jennings

Defendants Feuerborn and Jennings understand, acknowledge and agree that in consideration for the following acts and terms to be performed by Freestone, Defendants Feuerborn and Jennings hereby agree to the following obligations and duties make the following warranties as set forth herein.

1.

No Shares of Freestone Stock Personally Owned by Defendants Feuerborn or Jennings

By execution of The Settlement, Defendants Feuerborn and Jennings understand, acknowledge, affirm and warrant that neither Defendant personally owns any shares of Freestone stock.

2.

The Parties Obligation to Refrain from Publishing or Disseminating

False or Disparaging Statements, Comments or Communications

About One Another

The Parties understand, acknowledge and agree that in consideration for the satisfaction of the obligations duties and rights as set forth in The Settlement that The Parties and each of their respective officers, directors, employees and agents shall collectively and individually at all times, refrain from publishing or disseminating (either directly or indirectly) any false or disparaging statements, comments or communications about one another.

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E.

Obligations and Duties of Freestone

Freestone understands, acknowledges and agrees that in consideration for the above-efforts to be undertaken and completed by The Defendants, Freestone shall fully comply and undertake to 100% satisfaction in a timely manner the steps and payments set forth herein.

1.

Reissuing of 2,500,000 Shares of The ESSI Shares

Freestone understands, acknowledges and agrees that it shall comply with Section V(A).

2.

Transfer by Freestone of All Rights, Interests and Shares of EOS to

Defendants ESSI and Shultz

Freestone and Defendants ESSI and Shultz understand, acknowledge and agree that Freestone shall transfer all of its right, title, and interest in and to the 10,000,000 shares of the Common Stock of Earth Oil Services, Inc. (“EOS”) (with such transferred stock being collectively referred to as the “EOS Transfer Stock”), to Defendants Shultz and ESSI, within seven (7) business days of the execution of The Settlement. Freestone agrees to return EOS with no associated debt, including but not limited to any claims against EOS by Freestone regarding monies paid to SRS Engineering, Inc.

Freestone confirms that it has not issued any EOS stock to any parties in addition to the 2,215,000 share certificate previously issued to and exchanged by Shultz and the 7,785,000 share certificate previously issued to and exchanged by ESSI.  In the event that any additional shares of EOS stock have been issued to any other parties, then Freestone shall cancel such issued EOS stock for return back to the EOS stock treasury.

Defendants ESSI and Shultz further understand, acknowledge and agree that Freestone shall sign and/or endorse any and all stock certificates, stock powers, and any other such conveyance instruments that Defendants Shultz and ESSI request to be executed, and cause the signature on such stock certificates, stock powers, and any other such conveyance instruments to be Gold Medallion Guaranteed.

Freestone further understands, acknowledges and agrees that Freestone shall return or provide to Defendants ESSI and Shultz all corporate books, records, resolutions and any other business documents of EOS within ten (10) business days of the execution of The Settlement.

3.

Freestone Agreement to Refrain Increase of Authorized Shares for One Year

By execution of The Settlement, Freestone understands, acknowledges and affirms that it shall refrain from increasing the authorized shares of Freestone stock on the market for one calendar year beginning from the date of execution of The Settlement. Freestone acknowledges that it has 100,000,000 shares authorized at the time of The Settlement.

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4.

Return of Any and All ESSI and Shultz Generated Documents/Papers and the Return of All 

Demonstration Kits

Freestone understands, acknowledges and agrees that in consideration for the satisfaction of the obligations duties and rights as set forth in The Settlement it shall return all ESSI and Shultz generated documents and papers as well as all demonstration Kits to the entity or individual (ESSI or Shultz) who provided said document/paper and/or demonstration kit to Freestone.

5.

The Parties’ Obligation to Refrain from Publishing or Disseminating

False or Disparaging Statements, Comments or Communications

About One Another

The Parties understand, acknowledge and agree that in consideration for the satisfaction of the obligations duties and rights as set forth in The Settlement that The Parties and each of their respective officers, directors, employees and agents shall collectively and individually at all times, refrain from publishing or disseminating (either directly or indirectly) any false or disparaging statements, comments or communications about one another.

C.

Obligations and Duties of Third-Party Defendants

The Parties and each of their respective officers, employees and agents understand, acknowledge and agree that in consideration for the satisfaction of the obligations and duties of Freestone as defined herein that The Third-Party Defendants shall not be required to make any contribution of any value (including but not limited to capital, stock shares, loans or any other instrument or contribution of property – real or personal or property right or interest), other than the specific obligation set forth below.

1.

The Parties Obligation to Refrain from Publishing or Disseminating

False or Disparaging Statements, Comments or Communications

About One Another

The Parties understand, acknowledge and agree that in consideration for the satisfaction of the obligations duties and rights as set forth in The Settlement that The Parties and each of their respective officers, directors, employees and agents shall collectively and individually at all times, refrain from publishing or disseminating (either directly or indirectly) any false or disparaging statements, comments or communications about one another.

VI.

Additional Terms

The Parties understand acknowledge and agree to the following terms of The Settlement.

A.

Time is of the Essence for Execution of The Settlement

The Parties understand, acknowledge and agree that time is of the essence regarding their agreement to The Settlement and that as such, in order for this Settlement to become effective, all Parties must have executed The Settlement by no later than 11:59 p.m. (West Coast Time) June  26th, 2011 (“Timely Execution”).

 

 

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B.

Filing of Necessary Joint Motions by Counsel for The Parties

The Parties understand acknowledge and agree that upon the Timely Execution of The Settlement, counsel for The Parties shall in good faith, promptly work together to draft and submit a “Joint Motion” so notifying the Court of The Settlement and request the Court toll all deadlines as set forth in the Scheduling Order for a period of ten (10) to thirty (30) days.

The Parties further understand acknowledge and agree that upon the satisfaction of 1.) The transfer of all Freestone shares by The Defendants ESSI and Shultz as set forth herein and the subsequent issuance of the ESSI Re-issued Shares by Freestone to Defendant ESSI, and transfer of all EOS shares by Cross Defendant Freestone back to Defendants ESSI and Shultz, counsel for The Parties shall in good faith, promptly work together to draft and submit an “Agreed Motion to Dismiss with prejudice” The Lawsuit.

C.

Settlement is Fully Integrated

The Parties understand acknowledge and agree that The Settlement is fully integrated and that no changes, modifications, alterations, deletions or additions of any type can be valid unless said changes, modifications, alterations, deletions or additions are on a single document which is signed by all The Parties to The Settlement.

1.

Authority to Execute The Settlement

Each Parties understands, acknowledges, agrees and warrants and affirms that they presently maintain the requisite authorization to execute The Settlement and in doing so, bind and obligate The Party for whom said Party is signing The Settlement for all purposes, obligations, rights and affirmations as set forth herein.

2.

Settlement Supersedes All Previous Agreements

The Parties understand acknowledge and agree that The Settlement supersedes any and all previous agreements, promises or commitments between The Parties (if any), which are not specifically set forth in The Settlement.

3.

No Modifications Shall be Made to The Settlement

The Parties understand acknowledge and agree that in order to demonstrate the agreement to all terms, obligations and duties of The Settlement and in light of time being of the essence, Plaintiff and Third-Party Defendants have presented to The Settlement to The Defendants already executed and as such, any cross-outs/deletions or hand-written modifications of any type made by any of The Defendants or counsel for The Defendants shall be deemed as a counter-offer to The Settlement thereby rendering Plaintiff’s and the Third-Party Defendants’ agreement to The Settlement as void.

4.

Further Assurances

The Parties understand, acknowledge and agree that upon the request of any of The Parties, they will execute and deliver such further documents and undertake such further actions as may be reasonably required to effect any of the agreements contained in The Settlement.

 

 

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5.

Invalid Provisions

If any provision of The Settlement is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of The Settlement, such provision shall be fully severable; The Settlement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part of The Settlement; and the remaining provisions of The Settlement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from The Settlement.  Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as part of The Settlement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and may be legal, valid, and enforceable.

6.

Captions

The captions, headings, and arrangements in The Settlement are for convenience only and do not in any way affect, limit, or modify the terms or provisions hereof.

7.

Right of Parties in the Event of Default/Breach/Violation

The Parties understand, acknowledge, agree and affirm that any default, breach or violation of the terms of The Settlement shall be actionable by the injured Party, whose damages shall include attorneys fees, arbitration fees and related costs upon the successful prosecution of any such claim.

8.

Knowledge of Effect of The Settlement

The parties acknowledge, represent, and warrant that they have read this The Settlement and that they are fully aware of the nature and effect of the provisions set out in The Settlement, and the parties acknowledge without reservation that they fully understand and consent to all the terms of The Settlement.  The Parties further warrant that they fully understand The Settlement to be a complete and total release of all claims, known or unknown, past, present or future (as to events or matters which have occurred up to and including the date of The Settlement), that each may have against the other, but that The Settlement shall not be a release of any action or matter undertaken by any of The Parties after the date of execution of The Settlement.  The parties warrant and represent that each executes this release with proper authority, and without reliance on any representations of any kind not specifically set forth herein.

9.

Multiple Counterparts

The Parties understand, acknowledge and agree that This Settlement may be executed in any number of counterparts, and through electronic signature, each copy of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

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VII.

Initiation of Arbitration Proceedings/Selection of Administrator

The Parties acknowledge, understand and agree that all claims, controversies and disputes of any kind that may arise between The Parties shall be resolved, upon election of any Party, through confidential arbitration as set forth herein.  As used in this Section, the term “Claim” means any claim (including initial claims, counterclaims, cross-claims, third party claims of breach of contract or any tort or equitable claims), dispute or controversy between The Parties arising from any matter.  In any such arbitration, the parties shall bear their own costs and fees.

A.

Location of Arbitration

The Parties acknowledge, understand and agree that the exclusive venue and jurisdiction for any arbitration as required in The Settlement shall be Dallas, Texas.

B.

Controlling Law

The Parties acknowledge, understand and agree that the exclusive controlling law for any arbitration as required in The Settlement shall be the law (both procedural and substantive) of the state of Texas and that the procedural law shall be the “Texas Rules of Civil Procedure” (“TRCP”) and that all evidence shall be governed by the “Texas Rules of Evidence” (“TRE”).

C.

Selection of the Arbitrator

The Parties acknowledge, understand and agree that in the event of on Party filing for arbitration against one or more of the other Parties, the Parties shall endeavor to select and agree on a single arbitrator within three weeks of one Party giving written notice to the other Party(ies) of the intent to file arbitration and that the arbitrators fees shall be split equally among the parties to any arbitration.

The Parties acknowledge, understand and agree by execution of The Settlement, they expressly waive any and all objections to an arbitrator from the American Arbitration Association (“AAA”) being retained to arbitrate any claims as defined or required under The Settlement.

The Parties further acknowledge, understand and agree by execution of The Settlement, they expressly submit without any reservation whatsoever, to the jurisdiction of the AAA and any arbitrator the AAA may appoint to arbitrate any claims as defined or required under The Settlement.

 

The Parties further acknowledge, understand and agree that failure by any Party to pay their respective share of the arbitration fees (up to 50%) within thirty (30) days of the arbitrator being appointed by the AAA or retained by agreement of The Parties, shall be deemed as a default under TRCP for all purposes.

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D.

Notification Between Parties

The Parties acknowledge, understand and agree that valid notice shall be through facsimile, emails or mail, but in the event of a potential claim for arbitration, valid notice shall be required through all three methods.  The Parties acknowledge, understand and agree that all required communication and written notice as defined or required herein shall be directed to the respective counsel:

Notice to Counsel for Plaintiff and Third-Party Defendants:

The Law Offices of S. George Alfonso,

S. George Alfonso, Esq.

5340 Alpha Road Dallas, Texas 75240

Phone: (972) 458-6800/Fax: (972) 458-6800/GeoAlfo@aol.com

Notice to Counsel for Defendants:

The Law Offices of Neil C, Evans,

Neil C. Evans, Esq.

13351 D. Riverside Dr., Suite 612

Sherman Oaks, California 91423

Phone: (818) 802-8333/Fax: (805) 241-4618/evanstnt@aol.com

The Parties further understand, acknowledge and agree that it shall be the obligations of the respective Parties, not their counsel to so notify the other Parties in the event the counsel identified herein ceases to represent their respective Parties.

The Parties finally understand, acknowledge and agree that in the event they do not receive a response from the opposing counsel within ten (10) business days, they shall in good faith undertake reasonable efforts to attempt to directly contact any other Party regarding any matter which may or could result in arbitration, before filing for arbitration.

	
 

                     /s/ Clayton Carter                      06/26/2011

                                                                                                                                                                                  Freestone Resources, Inc.               Date

	
 

/s/ Clayton Carter                        06/26/2011

Clayton Carter                                    Date

	
 

/s/ Jimmy Carter                            06/26/2011

Jimmy Carter                                      Date

	
 

/s/ James Carroll                          06/26/2011

James Carroll                                      Date

	
 

/s/ Don Edwards                              06/26/2011

Donald Edwards                                  Date

	
 

/s/ Lawrence Shultz                      06/26/2011

Lawrence Shultz                                  Date

 

	
 

/s/ David Feuerborn                        06/26/2011

Environmental Services                       Date

and Support, Inc.

	
 

/s/ Thomas Jennings                      06/26/2011

Thomas Jennings                                 Date

	
 

 /s/ David Feuerborn                       06/26/2011

David Feuerborn                                 Date

 

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