Exhibit 10.2


 


FORM OF


WARRANT TO PURCHASE

SHARES OF COMMON STOCK

OF

DGSE COMPANIES, INC.


 


THIS WARRANT AND THE SHARES
(AS HEREINAFTER DEFINED) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.


 


THIS WARRANT (this “Warrant”)
CERTIFIES THAT, upon the terms and subject to the conditions set forth herein, Elemetal, LLC, a limited liability company organized
and existing under the laws of the State of Delaware (the “Holder”), for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, has been granted the right to purchase from DGSE Companies, Inc., a Nevada
corporation (the “Company”), during the Term (as hereinafter defined), 1,000,000 shares (the “Shares”)
of the Company’s common stock, par value $0.01 per share (“Common Stock”), at an exercise price of U.S.
$0.65 per Share (the “Exercise Price”) (subject to adjustment hereunder). Until the earlier of the Expiration
Date (as hereinafter defined) and such time as this Warrant is exercised in full, the Exercise Price and the number of Shares (or
consideration) issuable upon exercise of this Warrant are subject to adjustment as hereinafter provided. Capitalized terms used
and not otherwise defined herein shall have the meanings set forth in that certain Stock Purchase Agreement, dated June 20, 2016
(the “Stock Purchase Agreement”), among the Company, the Holder and NTR Metals, LLC, a limited liability company
organized and existing under the laws of the State of Texas.


 


1.          Term.
Upon the terms and subject to the conditions set forth herein, this Warrant shall be exercisable, in whole or in part, at any
time, or from time to time, during the period (such period, the “Term”)
commencing at 5:00 p.m., Eastern time, on ______________, 2016 (the “Effective
Date”) and ending at 5:00 p.m., Eastern time, on _____________,
2018 (the “Expiration Date”).
Any portion of this Warrant remaining unexercised at the Expiration Date shall thereafter be void.


 


2.            Exercise.


 


(a)          Manner
of Exercise. The purchase rights represented by this Warrant are exercisable by the Holder in whole or in part, at any
time, or from time to time, during the Term: (i) by the surrender of this Warrant and the Notice of Exercise (in the form attached
hereto as Exhibit A), duly completed and executed on behalf of the Holder, at the principal executive office of the Company
located at 15850 Dallas Parkway, Suite 140, Dallas, Texas 75248, or such other office as the Company shall notify the Holder of
in writing (the “Principal Office”);
and (ii) upon payment, by wire transfer of immediately available funds to an account designated by the Company of the aggregate
Exercise Price for the Shares to be purchased, or other payment method agreeable to the Company (except that any payment must be
made in accordance with applicable securities laws).


 




     


     


    

 


(b)          Time
of Exercise. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date
of its surrender for exercise as provided above (the “Exercise
Date”), and the Holder (or other individual or entity
(“Person”)
entitled to receive the Shares issuable upon such exercise in accordance with the terms hereof) shall be treated for all purposes
as the holder of record of such Shares as of the close of business on such date.


 


(c)          Delivery
of Certificate and Balance Warrant. As promptly as practicable on or after the Exercise Date and in any event within three
(3) days thereafter, the Company, at its expense, will issue and deliver to the Holder (or other Person entitled to receive the
Shares issuable upon exercise of this Warrant in accordance with the terms hereof) a certificate or certificates for the Shares
issuable upon such exercise or, if such Shares are not certificated, other appropriate written evidence of the issuance of the
Shares. In the event that this Warrant is exercised in part, the Company at its expense shall execute and deliver to the Holder
(or its successor or permitted assignee) a new warrant of like tenor exercisable for the number of Shares for which this Warrant
may then be exercised after giving effect to all previous exercises and adjustments.


 


(d)          Rescission
Rights. If the Company fails to issue or cause to have issued the Shares issuable upon such exercise of the Warrant within
three (3) days of the Exercise Date, then the Holder will have the right to rescind such exercise.


 


(e)          Charges,
Taxes and Expenses. Issuance of the Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Shares, all of which taxes and expenses shall be paid by the Company,
and such Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder in the Notice
of Exercise. The Company shall pay all fees required for same-day processing of any Notice of Exercise and all fees to the Depository
Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery
of the Shares.         


 


(f)          No
Fractional Shares. This Warrant my only be exercised for whole Shares, and in no event shall any fractional Share be issued
upon any exercise of this Warrant.


 


(g)          Limitation
on Exercise. Notwithstanding anything to the contrary contained in this Warrant, in no event shall the Holder be entitled
to exercise this Warrant, or to receive Shares issuable upon exercise of this Warrant, for an amount of Shares which, as of the
date of such exercise, is in excess of the number of shares of Common Stock that the Company has sold and issued, and the Holder
has purchased, under the Stock Purchase Agreement, pursuant to which, among other things, this Warrant was issued.


 




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3.            Adjustments.


 


(a)          Reclassification.
If the Company, at any time while this Warrant, or any portion hereof, is outstanding and unexpired, by reclassification of securities
or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different
number of securities of any other class or classes, then this Warrant shall thereafter represent the right to acquire such number
and kind of securities as would have been issuable as a result of such change with respect to the securities that were subject
to the purchase rights under this Warrant immediately prior to such reclassification or other change, and the Exercise Price shall
be proportionately adjusted, as appropriate.


 


(b)          Subdivision
or Combination of Shares. If the Company, at any time while this Warrant, or any portion hereof, is outstanding and unexpired,
shall split or subdivide the securities for which this Warrant is exercisable into a greater number of securities of the same class,
then the amount of securities for which this Warrant is exercisable shall be proportionately increased and the Exercise Price shall
be proportionately decreased. If the Company, at any time while this Warrant, or any portion hereof, is outstanding and unexpired,
shall reverse split or combine the securities for which this Warrant is exercisable into a lesser number of securities of the same
class, then the amount of securities for which this Warrant is exercisable shall be proportionately decreased and the Exercise
Price shall be proportionately increased.


 


(c)          Adjustments
for Non-Cash Dividends. If, at any time while this Warrant, or any portion thereof, is outstanding and unexpired, the holders
of the securities as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record
date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefor, other
or additional securities or property (other than cash) of the Company by way of dividend or distribution (collectively, a “Dividend”),
then, in each case, this Warrant shall represent the right to acquire, in addition to the number of Shares receivable upon exercise
of this Warrant, and without payment of any additional consideration therefor, the amount of such other or additional securities
or property (other than cash) of the Company that the Holder (or its successor or permitted assignee) would hold on the date of
exercise of this Warrant had it been the holder of record of the security receivable upon exercise of this Warrant on the record
date fixed with respect to the Dividend and had thereafter, during the period from the date thereof through and including the date
of such exercise, retained such securities and all other additional securities which it would have received during such period
as a result of its ownership thereof, giving effect to all adjustments called for during such period by the provisions of this
Warrant.


 




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4.            Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more
related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly
or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of
this Warrant, the Holder shall have the right to receive, for each Share that would have been issuable upon such exercise immediately
prior to the occurrence of such Fundamental Transaction, at the option of the Holder, the number of shares of Common Stock of
the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction. For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. Upon the occurrence of any such Fundamental Transaction in
which the Company is the survivor (such surviving entity, the “Successor
Entity”), the Successor Entity shall succeed to, and
be substituted for, the Company (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant
and the other documents entered into in connection with the Transactions referring to the “Company”
shall refer instead to the Successor Entity), and the Successor Entity may exercise every right and power of the Company
and shall assume all of the obligations of the Company under this Warrant and the other documents entered into in connection with
the Transactions with the same effect as if such Successor Entity had been named as the Company herein.


 


5.            Certain
Other Matters.


 


(a)          All
calculations under Section 3 and Section 4 shall be made to the nearest cent or whole Share, as the case may be.
For purposes of Section 3 and Section 4, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.


 




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(b)          No
adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least U.S.
$0.01 per Share; provided, however, that any adjustments which by reason of this Section 5(b) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment.


 


(c)          If,
as a result of an adjustment made pursuant to Section 3 or Section 4, the Holder (or its successor or permitted assignee)
shall become entitled to receive shares of more than one class or series of capital stock of the Company, then the Board (whose
determination shall be final and conclusive) shall determine, in good faith, the allocation of the adjusted Exercise Price between
or among the shares of such multiple classes or series of capital stock of the Company.


 


(d)          If
any event shall occur as to which the other provisions of Section 3 or Section 4 are not strictly applicable but
as to which the failure to make any adjustment would not fairly preserve the purchase rights represented by this Warrant in accordance
with the essential intent and principles of the adjustments set forth in Section 3 and Section 4, then, in each such
case, the Board (whose determination shall be final and conclusive) shall determine, in good faith, the adjustment, if any, on
a basis consistent with the essential intent and principles established herein, necessary to fairly preserve the purchase rights
represented by this Warrant.


 


6.            Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to Section 3 or Section
4, the Company shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to
the Holder (or its successor or permitted assignee) a certificate setting forth, in reasonable detail, the event requiring
such adjustment or readjustment, the amount of such adjustment or readjustment, the method by which such adjustment or
readjustment was calculated, the adjusted or readjusted Exercise Price and adjusted or readjusted number of Shares or amount
of other securities or property that would be received upon the exercise of this Warrant.


 


7.            Legend.
Each stock certificate representing Shares issued upon exercise of this Warrant shall have conspicuously endorsed thereon the
following legend:


 


THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.


 


8.            Shares
to be Fully Paid. When issued and delivered in accordance with this Warrant to the Holder (or its successor or permitted
assignee) upon payment to the Company of the applicable Exercise Price, the Shares issued by the Company pursuant to this Warrant
will be fully paid and non-assessable with no personal liability attaching to ownership thereof and will be free and clear of
all liens, charges and encumbrances of any nature whatsoever except for restrictions on transfer under the Stock Purchase Agreement
and under applicable federal and state securities laws.


 




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9.            Company
to Reserve Shares. At all times while this Warrant, or any portion hereof, is outstanding and unexpired, the Company shall
reserve and keep available, free from preemptive rights, out of its authorized but unissued capital stock, for the purpose of
effecting the exercise of this Warrant, the full number of Shares then deliverable upon the exercise of this Warrant. The issuance
of this Warrant shall constitute full authority to those officers of the Company who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for Shares upon exercise of this Warrant.


 


10.          Exchange
of Warrant. If this Warrant shall be mutilated, lost, stolen or destroyed, then the Company shall execute and deliver
to the Holder (or its successor or permitted assignee) a new warrant of like tenor and denomination and deliver the same (i) in
exchange and substitution for and upon surrender and cancellation of any mutilated Warrant or (ii) in lieu of any Warrant lost,
stolen or destroyed, upon receipt of evidence reasonably satisfactory to the Company of the loss, theft or destruction of such
Warrant (including, without limitation, a reasonably detailed affidavit with respect to the circumstances of any loss, theft or
destruction) and upon receipt of indemnity reasonably satisfactory to the Company.


 


11.          No
Rights as Stockholder. Except as otherwise provided herein, this Warrant, to the extent not exercised, will not entitle
the Holder to any of the rights, including, without limitation, voting rights, information rights and rights to receive dividends
or distributions, of a stockholder of the Company.


 


12.          Amendment.
This Warrant may not be modified or amended, except with the prior written consent of the Holder (or its successor or permitted
assignee) and the Company. Any instrument given by or on behalf of the Holder (or its successor or permitted assignee) in connection
with any consent to any modification or amendment of this Warrant will be conclusive and binding on any and all subsequent holders
of this Warrant.


 


13.          Transfer.
Neither this Warrant nor the Shares have been registered under the Securities Act of 1933, as amended, or any state securities
laws, and such securities may not be offered for sale, sold, assigned, pledged, or otherwise disposed of, unless they are registered
under the Securities Act of 1933, as amended, and such state laws or the transaction is exempt from the registration requirements
thereof. Subject to the foregoing, upon surrender of this Warrant as a result of a transfer hereof, the Company, at the expense
of the Company, will issue and deliver to, or to the order of, the transferee a new Warrant in the name of such transferee, exercisable
for the number of Shares for which this Warrant may then be exercised after giving effect to all previous exercises and adjustments.
Subject to the foregoing, nothing herein shall be construed to limit the number of transfers of the Warrant (including transfers
of fractional interests herein).


 


14.          Successors
and Assigns. This Warrant shall be binding upon the Company and its successors and assigns and shall inure to the benefit
of the Holder and its successors and permitted assigns.


 




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15.          Titles
and Subtitles. The titles and subtitles used in this Warrant are for convenience only and are not to be considered in
construing or interpreting any term or provision of this Warrant.


 


16.          Governing
Law. This Warrant shall be governed by and construed in accordance with the laws of the State of Texas for all purposes
and in all respects, without regard to the conflict of law provisions of such state.


 


[ SIGNATURE PAGE FOLLOWS ]


 




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IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its duly authorized officer as of the Effective Date set forth above.


 


	 	DGSE Companies, Inc.,
	 	a Delaware corporation
	 	 
	 	By:	 
	 	Name: Matthew Peakes
	 	Title: Chief Executive Officer and President


 


Warrant
Signature Page


 




     


     


    

 


EXHIBIT A


 


NOTICE OF EXERCISE


 


Dated: ________, 20__


 


The undersigned hereby
elects to purchase ____ shares (the “Shares”) of common stock of DGSE Companies, Inc. (the “Company”)
pursuant to the terms of the warrant issued to the undersigned, effective as of ______________, 2016, a copy of which is attached
hereto (the “Warrant”), and tenders herewith payment to the Company of U.S. $0.65 per Share, for an aggregate
purchase price of U.S. $__________, representing payment in full for the Shares in accordance with the terms of the Warrant. Such
aggregate purchase price is being paid by wire transfer of immediately available funds to an account designated by the Company,
or other payment method agreeable to the Company. Until the earlier of the Expiration Date (as defined in the Warrant) and such
time as the Warrant is exercised in full, the Exercise Price (as defined in the Warrant) and the number of Shares (or consideration)
issuable upon exercise of the Warrant are subject to adjustment as provided in the Warrant.


 


Please issue certificate(s)
representing the Shares, and a new warrant for the unexercised portion of the Warrant [strike if not applicable], in the name of
the undersigned, and deliver such certificate(s) and new warrant [strike if not applicable] to the undersigned at the following
address:


 


Elemetal, LLC


15850 Dallas Parkway


Dallas, Texas 75248


Attn: President/CEO


 


	 	Elemetal, LLC
	 	 
	 	By:	 





	 	Name:	 
	 	Title: