Document:

EX-10.2

 Exhibit 10.2 

EXCHANGE AGREEMENT 
 BY
AND AMONG 
 ENERGEN RESOURCES CORPORATION 

RATTLER MIDSTREAM OPERATING LLC 

RATTLER MIDSTREAM GP LLC 

AND 
 RATTLER MIDSTREAM
LP 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	
			
	 Section 1.1
	  	 Definitions
	  	 	1	
			
	 Section 1.2
	  	 Gender
	  	 	4	
		
	 ARTICLE II EXCHANGE
	  	 	4	
			
	 Section 2.1
	  	 Redemption and Purchase Rights
	  	 	4	
			
	 Section 2.2
	  	 Expiration
	  	 	7	
			
	 Section 2.3
	  	 Adjustment
	  	 	7	
		
	 ARTICLE III MISCELLANEOUS PROVISIONS
	  	 	7	
			
	 Section 3.1
	  	 Notices
	  	 	7	
			
	 Section 3.2
	  	 Time is of the Essence
	  	 	8	
			
	 Section 3.3
	  	 Assignment
	  	 	8	
			
	 Section 3.4
	  	 Parties in Interest
	  	 	9	
			
	 Section 3.5
	  	 Captions
	  	 	9	
			
	 Section 3.6
	  	 Severability
	  	 	9	
			
	 Section 3.7
	  	 Applicable Law; Forum; Venue and Jurisdiction; Waiver of Trial by Jury
	  	 	9	
			
	 Section 3.8
	  	 Entire Agreement
	  	 	10	
			
	 Section 3.9
	  	 Amendment
	  	 	10	
			
	 Section 3.10
	  	 Successors and Assigns
	  	 	10	
			
	 Section 3.11
	  	 Counterparts
	  	 	10	
			
	 Section 3.12
	  	 Tax Matters
	  	 	10	

  
 i 

 EXCHANGE AGREEMENT 

This Exchange Agreement (this “Agreement”), dated as of May 28, 2019, by and among Rattler Midstream LP, a
Delaware limited partnership (the “Partnership”), Rattler Midstream GP LLC, a Delaware limited liability company (the “General Partner”), Rattler Midstream Operating LLC, a Delaware limited liability
company (the “Operating Company”), and Energen Resources Corporation, an Alabama corporation (“Energen”). The above-named entities are sometimes referred to in this Agreement as a
“Party” and collectively as the “Parties.” 
 RECITALS 

WHEREAS, the Parties hereto desire to provide for the possible future exchange by Energen of OpCo Units (as defined herein) and Class B
Units (as defined herein) for Common Units (as defined herein) or cash, on the terms and subject to the conditions set forth herein; and 

WHEREAS, the Parties intend that an Exchange (as defined herein) consummated hereunder be treated for federal income tax purposes, to the
extent permitted by law, as a taxable exchange of OpCo Units and Class B Units by Energen. 
 NOW, THEREFORE, in consideration of the
mutual covenants and undertakings contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

ARTICLE I 

DEFINITIONS 

Section 1.1    Definitions. Capitalized terms used herein but not defined shall have the meanings
ascribed to them in the Partnership Agreement (as defined below). As used in this Agreement, the following terms shall have the following meanings: 

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

“Assignee” means a Person to whom a Membership Interest has been transferred in accordance with the OpCo
Limited Liability Company Agreement but who has not become a Member. 
 “Applicable Percentage” has
the meaning set forth in Section 2.1(b). 
 “Business Day” means Monday
through Friday of each Week, except that a legal holiday recognized as such by the government of the United States of America or the State of Texas shall not be regarded as a Business Day. 

“Cash Amount” means an amount of cash equal to (i) the number of Tendered Units multiplied by
(ii) the Current Market Price as of the date of determination. 
 “Cash Purchase Price” has the
meaning set forth in Section 2.1(b). 
 “Class B
Units” has the meaning set forth in the Partnership Agreement. 

  
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 “Closing Price” means, as of the date of determination, the last
sale price on such day, regular way, or in case no such sale takes place on such day, the average of the closing bid and asked prices on such day, regular way, in either case as reported in the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the principal National Securities Exchange on which the Common Units are listed or admitted to trading. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended and in effect from time to time. Any reference
herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of any successor law. 

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

“Common Unit Amount” means a number of Common Units equal to the number of Tendered Units. 

“Common Units” has the meaning set forth in the Partnership Agreement. 

“Conflicts Committee” has the meaning set forth in the Partnership Agreement. 

“Current Market Price” means, as of the date of determination, the average of the daily Closing Prices
per Common Unit for the 20 consecutive Trading Days immediately prior to such date. 

“Cut-Off Date” means the fifth (5th) Business Day after the Partnership’s receipt of a Notice of Redemption. 

“Delaware LLC Act” means the Delaware Limited Liability Company Act, 6 Del. C. Section 18-101, et seq., as amended, supplemented or restated from time to time, and any successor to such statute. 

“Delaware LP Act” means the Delaware Revised Uniform Limited Partnership Act, 6 Del C. Section 17-101, et seq., as amended, supplemented or restated from time to time, and any successor to such statute. 

“Energen” has the meaning set forth in the preamble to this Agreement and, where applicable, includes a
transferee of Class B Units and OpCo Units as permitted under the Partnership Agreement. 
 “Exchange” means
(i) a Redemption by the Partnership of one or more OpCo Units for Common Units and the Redemption Amount and (ii) the purchase of Tendered Units by the Partnership from Energen for the Cash Purchase Price and the Redemption Amount. 

“Exchange Right” means the rights of Energen and the Partnership pursuant to Sections
2.1(a) and (b), respectively, of this Agreement. 
 “Exercise Notice” has the
meaning set forth in Section 2.1(c). 
 “Financing Party” means any and all
Persons, or the agents or trustees representing them, providing senior or subordinated debt or tax equity financing or refinancing (including letters of credit, bank guaranties or other credit support). 

  
 2 

 “General Partner” has the meaning set forth in the
preamble to this Agreement. 
 “Governmental Entity” means any (a) multinational, federal,
national, provincial, territorial, state, regional, municipal, local or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, administrative agency, board, bureau, agency or other statutory
body, domestic or foreign, (b) subdivision, agent, commission, board or authority of any of the foregoing, or (c) quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under, or for the account of,
any of the foregoing (including the New York Stock Exchange and NASDAQ Stock Market), in each case, that has jurisdiction or authority with respect to the applicable Party. 

“Holder” means either (a) a Member or (b) an Assignee that owns an OpCo Unit. 

“Laws” means any and all applicable (a) laws, constitutions, treaties, statutes, codes, ordinances,
principles of common law and equity, rules, regulations and municipal bylaws whether domestic, foreign or international, (b) judicial, arbitral, administrative, ministerial, departmental and regulatory judgments, orders, writs, injunctions,
decisions and awards of any Governmental Entity, and (c) policies, practices and guidelines of any Governmental Entity which, although not actually having the force of law, are considered by such Governmental Entity as requiring compliance as
if having the force of law, and the term “applicable,” with respect to such Laws and in the context that refers to one or more Persons, means such Laws that apply to such Person or Persons or its or their
business, undertaking, property or securities at the relevant time and that emanate from a Governmental Entity having jurisdiction over the Person or Persons or its or their business, undertaking, property or securities. 

“Member” has the meaning set forth in the OpCo Limited Liability Company Agreement. 

“Membership Interest” has the meaning set forth in the OpCo Limited Liability Company Agreement. 

“National Securities Exchange” means an exchange registered with the Commission under Section 6(a) of the
Securities Exchange Act (or any successor to such Section) and any other securities exchange (whether or not registered with the Commission under Section 6(a) of the Securities Exchange Act (or successor to such Section)) that the General
Partner shall designate as a National Securities Exchange for purposes of this Agreement. 
 “Notice of
Redemption” has the meaning set forth in Section 2.1(a)(i). 
 “OpCo Limited
Liability Company Agreement” means the Second Amended and Restated Limited Liability Company Agreement of the Operating Company, dated February 18, 2019, as may be amended from time to time. 

“OpCo Units” has the meaning set forth in the Partnership Agreement. 

“Operating Company” has the meaning set forth in the preamble to this Agreement. 

“Partnership” has the meaning set forth in the preamble to this Agreement. 

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of Rattler
Midstream LP, dated May 28, 2019, as may be amended from time to time. 

  
 3 

 “Party” or “Parties”
has the meaning set forth in the preamble to this Agreement. 
 “Person” means an individual or a
corporation, firm, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 

“Redemption” has the meaning set forth in Section 2.1(a). 

“Redemption Amount” means an amount equal to the product of the number of Tendered Units multiplied by the
Class B Capital Contribution Per Unit Amount (as defined in the Partnership Agreement). 
 “Securities Act”
means the Securities Act of 1933, as amended, supplemented or restated from time to time, and any successor to such statute. 

“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended, supplemented or restated from
time to time, and any successor to such statute. 
 “Specified Redemption Date” means the fifteenth (15th) Business Day after the receipt by the Operating Company of a Notice of Redemption (or an election to receive the Common Unit Amount and the Redemption Amount in respect of Tendered Units) or as
otherwise agreed to in writing by the parties hereto. 
 “Tendered Units” has the meaning set forth in
Section 2.1(a). 
 “Trading Day” means a day on which the principal National
Securities Exchange on which the Common Units are listed or admitted to trading is open for the transaction of business. 

“Treasury Regulations” means the United States Treasury regulations promulgated under the Code. 

“Unit” has the meaning set forth in Section 2.1(a). 

Section 1.2    Gender. For the purposes of this Agreement, the words “it,” “he,”
“his” or “himself’ shall be interpreted to include the masculine, feminine and corporate, other entity or trust form. 

ARTICLE II 

EXCHANGE 

Section 2.1    Redemption and Purchase Rights. 

(a)    Subject to Section 4.4(b) of the OpCo Limited Liability Company Agreement, Energen shall have the right, at any
time and from time to time (subject to the terms and conditions set forth herein), to require the Partnership to redeem (each, a “Redemption”) all or a portion of the Class B Units held by Energen, which must be
accompanied by an equal number of OpCo Units held by Energen (one OpCo Unit and one Class B Unit are referred to herein as one “Unit”, and Units that have in fact been tendered for redemption being hereafter referred to
as “Tendered Units”), in exchange for the Common Unit Amount and the Redemption Amount. The Partnership shall deliver to Energen the Redemption Amount on the same date that it delivers the Common Unit Amount. 

  
 4 

 (i)    If Energen desires to exercise its right to
require a Redemption, it shall deliver a written notice to the Partnership and the Operating Company specifying the number of Units Energen desires to tender for redemption (the “Notice of Redemption”). The Partnership
shall not be obligated to effect a Redemption until the Specified Redemption Date (it being understood that the Partnership will not be required to consummate such Redemption with respect to any Tendered Units that are purchased by the Partnership
pursuant to Section 2.1(b)). 
 (ii)    The Common Unit Amount shall be
delivered by the Partnership on or before the Specified Redemption Date as duly authorized, validly issued, fully paid and non-assessable Common Units (except as such nonassessability may be affected by
Sections 17-303, 17-607 or 18-704 of the Delaware LP Act), free of any pledge, lien, encumbrance or restriction, other than the restrictions provided in the Partnership
Agreement, the Securities Act and relevant state securities or “blue sky” laws. Notwithstanding any delay in such delivery, Energen shall be deemed the owner of such Common Units for all purposes, including, without
limitation, rights to vote and consent, receive distributions, and exercise rights, as of the Specified Redemption Date. Common Units issued upon a Redemption pursuant to this Section 2.1(a) may contain such legends regarding
restrictions under the Securities Act and applicable state securities laws as the Partnership in good faith determines to be necessary or advisable in order to ensure compliance with such laws. 

(b)    In lieu of any Redemption described in Section 2.1(a), the Partnership may, in its sole
and absolute discretion (but subject to the approval of the Conflicts Committee), offer to purchase some or all of the Tendered Units (such amount, expressed as a percentage of the total number of Tendered Units rounded up to the nearest Unit, being
referred to as the “Applicable Percentage”) from Energen by delivering a written notice of such election on or before the close of business on the Cut-Off Date. If Energen accepts such
offer in writing, on the Specified Redemption Date Energen shall sell such number of the Tendered Units to the Partnership in exchange for a cash sum (the “Cash Purchase Price”) equal to (x) the Redemption Amount plus
(y) the product of the Cash Amount and the Applicable Percentage. If the Partnership offers, subject to the approval of the Conflicts Committee, to purchase some or all of the Tendered Units and Energen accepts such offer: 

(i)    the Cash Purchase Price shall be delivered, in Energen’s sole and absolute discretion, by wire
transfer or as a certified or bank check payable to Energen, in each case in immediately available funds and on or before the Specified Redemption Date; and 

(ii)    the remaining Tendered Units shall be subject to Redemption pursuant to
Section 2.1(a). 
 (c)    In the event the Partnership elects to exercise its offer rights
pursuant to Section 2.1(b), the Partnership shall provide a written notice to that effect (an “Exercise Notice”) to the Operating Company and Energen on or before the close of business on the Cut-Off Date. The failure of the Partnership to provide an Exercise Notice by the close of business on the Cut-Off Date shall be deemed to be an election by the Partnership
not to make an offer to purchase any of the Tendered Units. Energen shall have five (5) Business Days after receipt of the Exercise Notice to give written notice of acceptance. 

  
 5 

 (d)    Without limiting the remedies of Energen, if the Partnership
offers to purchase some or all of the Tendered Units under Section 2.1(b) for the Cash Purchase Price and Energen accepts, and the Cash Purchase Price is not paid on or before the Specified Redemption Date, interest
shall accrue with respect to the Cash Purchase Price from the day after the Specified Redemption Date to and including the date on which the Cash Purchase Price is paid at a rate equal to the Applicable Federal Short-Term Rate as published monthly
by the United States Internal Revenue Service. 
 (e)    Notwithstanding anything herein to the contrary, with respect
to any Redemption pursuant to Section 2.1(a), or any purchase of Units by the Partnership pursuant to Section 2.1(b) hereof: 

(i)    Without the consent of the Partnership, Energen may not effect a Redemption for (A) less than
one thousand (1,000) Units or (B) if Energen holds less than one thousand (1,000) Units, all of the Units held by Energen. 

(ii)    If (A) Energen surrenders Tendered Units during the period after the Record Date with respect
to a distribution payable to Holders of OpCo Units, and before the record date established by the Partnership for a distribution to its unitholders of some or all of its portion of such Operating Company distribution, and (B) the Partnership
elects to purchase any of such Tendered Units pursuant to Section 2.1(b), then Energen shall pay to the Partnership on the Specified Redemption Date an amount in cash equal to the Operating Company distribution paid or
payable in respect of such Tendered Units. 
 (iii)    Notwithstanding anything to the contrary herein,
the consummation of a Redemption pursuant to Section 2.1(a) hereof or a purchase of Tendered Units by the Partnership pursuant to Section 2.1(b) hereof, as the case may be, shall not
be permitted to the extent the Partnership determines that such Redemption or purchase (A) would be prohibited by applicable law or regulation (including, without limitation, the Securities Act, the Delaware LLC Act or the Delaware LP Act) or
(B) would not be permitted under the Partnership Agreement, the OpCo Limited Liability Company Agreement or any other agreements to which the Partnership or the Operating Company may be party or any written policies of the Partnership related
to unlawful or improper trading (including, without limitation, the policies of the Partnership relating to insider trading). 

(f)    The Partnership, the Operating Company and Energen shall bear their own expenses in connection with the
consummation of any Exchange, whether or not any such Exchange is ultimately consummated, except that the Operating Company shall bear any transfer taxes, stamp taxes or duties, or other similar taxes in connection with, or arising by reason of, any
Exchange; provided, however, that if any Common Units are to be delivered in a name other than that of Energen, then Energen and/or the person in whose name such shares are to be delivered shall pay to the Operating Company the amount
of any transfer taxes, stamp taxes or duties, or other similar taxes in connection with, or arising by reason of, such Exchange or shall establish to the reasonable satisfaction of the Partnership that such tax has been paid or is not payable. 

  
 6 

 Section 2.2    Expiration. In the event that the
Operating Company is dissolved pursuant to the OpCo Limited Liability Company Agreement, any Exchange Right pursuant to Section 2.1 of this Agreement shall terminate upon final distribution of the assets of the Operating Company pursuant
to the terms and conditions of the OpCo Limited Liability Company Agreement. 

Section 2.3    Adjustment. If there is any reclassification, reorganization, recapitalization or other
similar transaction in which the OpCo Units, Common Units or Class B Units, as applicable, are converted or changed into another security, securities or other property, then upon any subsequent Exchange, Energen shall be entitled to receive the
amount of such security, securities or other property that Energen would have received if such Exchange had occurred immediately prior to the effective date of such reclassification, reorganization, recapitalization or other similar transaction,
taking into account any adjustment as a result of any subdivision (by any split, distribution or dividend, reclassification, reorganization, recapitalization or otherwise) or combination (by reverse split, reclassification, recapitalization or
otherwise) of such security, securities or other property that occurs after the effective time of such reclassification, reorganization, recapitalization or other similar transaction. For the avoidance of doubt, if there is any reclassification,
reorganization, recapitalization or other similar transaction in which the OpCo Units, Common Units or Class B Units, as applicable, are converted or changed into another security, securities or other property, this Section 2.3
shall continue to be applicable, mutatis mutandis, with respect to such security or other property. This Agreement shall apply to, mutatis mutandis, and all references to “OpCo Units,” “Common Units” or “Class B
Units” shall be deemed to include, any security, securities or other property of the Operating Company or the Partnership, as applicable, which may be issued in respect of, in exchange for or in substitution of the OpCo Units, Common Units or
Class B Units, as applicable, by reason of any distribution or dividend, split, reverse split, combination, reclassification, reorganization, recapitalization, merger, exchange (other than an Exchange) or other transaction. 

ARTICLE III 

MISCELLANEOUS PROVISIONS 

Section 3.1    Notices. Any notice, statement, demand, claim, offer or other written instrument
required or permitted to be given pursuant to this Agreement shall be in writing signed by the Party giving such notice and shall be sent by email, hand messenger delivery, overnight courier service, or certified mail (receipt requested) to each
other Party at the address set forth below; provided that to be effective any such notice sent originally by email must be followed within two (2) Business Days by a copy of such notice sent by overnight courier service: 

If to the Partnership: 
 Rattler
Midstream LP 
 500 West Texas, Suite 1200 

Midland, Texas 79701 
 Email:
MZmigrosky@diamondbackenergy.com 
 Attention: P. Matt Zmigrosky, General Counsel 

  
 7 

 If to Energen: 

Energen Resources Corporation 

500 West Texas, Suite 1200 

Midland, Texas 79701 
 Email:
MZmigrosky@diamondbackenergy.com 
 Attention: P. Matt Zmigrosky, General Counsel 

If to the General Partner: 

Rattler Midstream GP LLC 
 500
West Texas, Suite 1200 
 Midland, Texas 79701 

Email: MZmigrosky@diamondbackenergy.com 

Attention: P. Matt Zmigrosky, General Counsel 

If to the Operating Company: 

Rattler Midstream Operating LLC 

500 West Texas, Suite 1200 

Midland, Texas 79701 
 Email:
MZmigrosky@diamondbackenergy.com 
 Attention: P. Matt Zmigrosky, General Counsel 

Each Party shall have the right to change the place to which notices shall be sent or delivered or to specify one additional address to which
copies of notices may be sent, in either case by similar notice sent or delivered in like manner to the other Party. Without limiting any other means by which a Party may be able to prove that a notice has been received by another Party, all notices
and communications shall be deemed to have been duly given: (i) at the time delivered by hand, if personally delivered; (ii) five (5) Business Days after being deposited in the mail, postage prepaid, if mailed by first class certified
mail, receipt requested; (iii) when received, if sent by email, if received prior to 5 p.m., recipient’s time, on a Business Day, or on the next Business Day, if received later than 5 p.m., recipient’s time; and (iv) on the next
Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. In any case hereunder in which a Party is required or permitted to respond to a notice from another Party within a specified period,
such period shall run from the date on which the notice was deemed duly given as above provided, and the response shall be considered to be timely given if given as above provided by the last day of the period provided for such response. 

Section 3.2    Time is of the Essence. Time is of the essence of this Agreement; provided,
however, notwithstanding anything to the contrary in this Agreement, if the time period for the performance of any covenant or obligation, satisfaction of any condition or delivery of any notice or item required under this Agreement shall
expire on a day other than a Business Day, such time period shall be extended automatically to the next Business Day. 

Section 3.3    Assignment. No Party will convey, assign or otherwise transfer either this Agreement or
any of the rights, interests or obligations hereunder without the prior written consent of the other Parties hereto (in each of such Party’s sole and absolute discretion). Any such prohibited conveyance, assignment or transfer without the prior
written consent of the other Parties will be void ab initio. Notwithstanding the foregoing, nothing contained in this Agreement shall preclude (i) any pledge, hypothecation or other transfer or assignment of a Party’s rights, title
and interest under this Agreement, including any amounts payable to such 

  
 8 

 
Party under this Agreement, to a bona fide Financing Party as security for debt financing to such Party or one of its Affiliates, or (ii) the assignment of such rights, title and
interest under this Agreement upon exercise of remedies by a Financing Party following a default by such Party or one of its Affiliates under the financing agreements entered into with the Financing Parties. 

Section 3.4    Parties in Interest. This Agreement is binding upon and is for the benefit of the
Parties hereto and their respective successors and permitted assigns. This Agreement is not made for the benefit of any Person not a party hereto, and no Person other than the Parties hereto and their respective successors and permitted assigns will
acquire or have any benefit, right, remedy or claim under or by virtue of this Agreement. 

Section 3.5    Captions. All Section titles or captions contained in this Agreement or in the
table of contents of this Agreement are for convenience only and shall not be deemed to be a part of this Agreement or affect the meaning or interpretation of this Agreement. 

Section 3.6    Severability. Whenever possible each provision and term of this Agreement will be
interpreted in a manner to be effective and valid. If any term or provision of this Agreement or the application of any such term or provision to any Person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of
competent jurisdiction, the remaining provisions hereof, or the application of such term or provision to Persons or circumstances other than those as to which it has been held invalid, illegal or unenforceable, will remain in full force and effect
and will in no way be affected, impaired or invalidated thereby. If any term or provision of this Agreement is held to be prohibited or invalid, then such term or provision will be ineffective only to the extent of such prohibition or invalidity
without invalidating or affecting in any manner whatsoever the remainder of such term or provision or the other terms and provisions of this Agreement. Upon determination that any other term or provision of this Agreement is invalid, void, illegal
or unenforceable, a court of competent jurisdiction will modify such term or provision so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are
fulfilled to the fullest extent possible under the Law. 
 Section 3.7    Applicable Law; Forum; Venue and
Jurisdiction; Waiver of Trial by Jury. 
 (a)    This Agreement shall be construed in accordance with and governed
by the laws of the State of Texas, without regard to the principles of conflicts of law. 
 (b)    Each of the Parties:

 (i)    irrevocably agrees that any claims, suits, actions or proceedings arising out of or relating in
any way to this Agreement (including any claims, suits or actions to interpret, apply or enforce the provisions of this Agreement or the duties, obligations or liabilities among the Parties, or the rights or powers of, or restrictions on, the
Parties) shall be exclusively brought in the District Court of Texas (or, if such court does not have subject matter jurisdiction thereof, any other court located in the State of Texas with subject matter jurisdiction), in each case regardless of
whether such claims, suits, actions or proceedings sound in contract, tort, fraud or otherwise, are based on common law, statutory, equitable, legal or other grounds, or are derivative or direct claims; 

  
 9 

 (ii)    irrevocably submits to the exclusive
jurisdiction of the District Court of Texas (or, if such court does not have subject matter jurisdiction thereof, any other court located in the State of Texas with subject matter jurisdiction) in connection with any such claim, suit, action or
proceeding; 
 (iii)    agrees not to, and waives any right to, assert in any such claim, suit, action or
proceeding that (A) it is not personally subject to the jurisdiction of the District Court of Texas or of any other court to which proceedings in the Court of Chancery of the State of Texas may be appealed, (B) such claim, suit, action or
proceeding is brought in an inconvenient forum, or (C) the venue of such claim, suit, action or proceeding is improper; 

(iv)    expressly waives any requirement for the posting of a bond by a party bringing such claim, suit,
action or proceeding; 
 (v)    consents to process being served in any such claim, suit, action or
proceeding by mailing, certified mail, return receipt requested, a copy thereof to such party at the address in effect for notices hereunder, and agrees that such services shall constitute good and sufficient service of process and notice thereof;
provided, nothing in this clause (v) shall affect or limit any right to serve process in any other manner permitted by law; and 

(vi)    IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY SUCH CLAIM, SUIT, ACTION OR PROCEEDING. 

Section 3.8    Entire Agreement. This Agreement constitutes the entire agreement between the Parties
with respect to the subject matter hereof and this Agreement supersedes all prior negotiations, agreements or understandings of the Parties of any nature, whether oral or written, relating thereto. 

Section 3.9    Amendment. This Agreement may be modified, amended or supplemented only by written
agreement executed by the Parties. 
 Section 3.10    Successors and Assigns. Except as contemplated
by Section 3.3, neither this Agreement nor any of the rights or obligations hereunder shall be assigned by any of the parties hereto without the prior written consent of the other parties. Subject to the preceding sentence,
this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. 

Section 3.11    Counterparts. This Agreement may be executed in counterparts (which may be delivered by
electronic transmission). Each counterpart when so executed and delivered shall be deemed an original, and both such counterparts taken together shall constitute one and the same instrument. 

Section 3.12    Tax Matters. 

(a)    If the Partnership or the Operating Company shall be required to withhold any amounts by reason of any federal,
state, local or foreign tax rules or regulations in respect of any Exchange, the Partnership or the Operating Company, as the case may be, shall be entitled to take such action as it deems appropriate in order to ensure compliance with such
withholding requirements, including, without limitation, at its option withholding from, 

  
 10 

 
and paying over to the appropriate taxing authority, any consideration otherwise payable to Energen under this Agreement, and any such withheld amounts shall be treated for all purposes of this
Agreement as having been paid to the person in respect of which such deduction and withholding was made. Notwithstanding anything to the contrary herein, each of the Partnership and the Operating Company may, at its own discretion, require as a
condition to the effectiveness of an Exchange that an exchanging holder of Tendered Units deliver to the Partnership or the Operating Company, as the case may be, a certification of non-foreign status in
accordance with Treasury Regulation Section 1.1445-2(b). 
 (b)    This
Agreement shall be treated as part of the OpCo Limited Liability Company Agreement as described in Section 761(c) of the Code and Sections 1.704-1(b)(2)(ii)(h) and
1.761-1(c) of the Treasury Regulations. 
 [Signature Page Follows.] 

  
 11 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and
delivered, all as of the date first set forth above. 
  

			
	Rattler Midstream GP LLC
		
	By:	 	 /s/ Teresa L. Dick

	Name:	 	Teresa L. Dick
	Title:	 	Executive Vice President, Chief Financial Officer and Assistant Secretary
	
	Rattler Midstream LP
		
	By:	 	Rattler Midstream GP LLC,
		 	its general partner
		
	By:	 	 /s/ Teresa L. Dick

	Name:	 	Teresa L. Dick
	Title:	 	Executive Vice President, Chief Financial Officer and Assistant Secretary
	
	Rattler Midstream Operating LLC
		
	By:	 	 /s/ Teresa L. Dick

	Name:	 	Teresa L. Dick
	Title:	 	Executive Vice President, Chief Financial Officer and Assistant Secretary
	
	Energen Resources Corporation
		
	By:	 	 /s/ Teresa L. Dick

	Name:	 	Teresa L. Dick
	Title:	 	Executive Vice President, Chief Accounting Officer and Assistant Secretary

  
 [Signature Page to
Exchange Agreement]EXHIBIT 10.1

 

NEITHER
THE ISSUANCE NOR SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal
    Amount: $262,500.00	Issue
    Date: May 21, 2019 

Purchase
Price: $250,000.00

Original
Issue Discount: $12,500.00

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, TWO RIVERS WATER & FARMING COMPANY, a Colorado corporation (hereinafter called the “Borrower”)
(Trading Symbol: TURV), hereby promises to pay to the order of MORNINGVIEW FINANCIAL, LLC, a Wyoming limited liability
company, or registered assigns (the “Holder”) the principal sum of $262,500.00 (the “Principal Amount”),
together with interest at the rate of ten percent (10%) per annum, at maturity or upon acceleration or otherwise, as set forth
herein (the “Note”). The consideration to the Borrower for this Note is $250,000.00 (the “Consideration”).
At the closing, the outstanding principal amount under this Note shall be $262,500.00, consisting of the Consideration plus the
OID (as defined herein). The maturity date shall be twelve (12) months from the Issue Date (the “Maturity Date”),
and is the date upon which the principal sum, as well as any accrued and unpaid interest and other fees shall be due and payable.
This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest
on this Note, which is not paid by the Maturity Date, shall bear interest at the rate of the lesser of (i) eighteen percent (18%)
per annum and (ii) the maximum amount permitted by applicable law from the due date thereof until the same is paid (“Default
Interest”). Interest shall commence accruing on the date that the Purchase Price is fully paid and shall be computed on
the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into
the Borrower’s common stock (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful
money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower
by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business
day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the
due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used
in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial
banks in the city of New York, New York are authorized or required by law or executive order to remain closed.

 

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This
Note carries an original issue discount of $12,500.00 (the “OID”), to cover the Holder’s accounting fees, due
diligence fees, monitoring, and/or other transactional costs incurred in connection with the purchase and sale of the Note, which
is included in the principal balance of this Note. Thus, the purchase price of this Note shall be $250,000.00, computed as follows:
the Principal Amount minus the OID.

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The
following additional terms shall also apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1
Conversion Right. The Holder shall have the right at any time on or after the Issue Date to convert all or any part of
the outstanding and unpaid principal amount and accrued and unpaid interest of this Note into fully paid and non-assessable shares
of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower
into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”)
determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled
to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number
of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be
deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion
of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to
which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of
more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided,
further, however, that the limitations on conversion may be waived (up to a maximum of 9.99%) by the Holder upon,
at the election of the Holder, not less than 61 days’ prior notice to the Borrower, and the provisions of the conversion
limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in
such notice of waiver). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined
by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in
the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the
Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile
or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower or Borrower’s transfer
agent before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The term “Conversion
Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted
in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if any, on such principal amount at the
interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if
any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any
amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

 

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1.2
Conversion Price.

 

(a)
Calculation of Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject,
in each case, to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s
securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary
distributions and similar events)(also subject to adjustment as further described herein). The “Variable Conversion Price”
shall mean 60% multiplied by the Market Price (as defined herein) (representing a discount rate of 40%). “Market Price”
means the lowest one (1) Trading Price (as defined below) for the Common Stock during the fifteen (15) Trading Day period ending
on the last complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any date,
the lowest volume weighted average price on the Over-the- Counter Pink Marketplace, OTCQB, or applicable trading market (the “Trading
Market”) as reported by a reliable reporting service (“Reporting Service”) designated by the Holder (i.e. www.Nasdaq.com)
or, if the Trading Market is not the principal trading market for such security, on the principal securities exchange or trading
market where such security is listed or traded or, if the lowest intraday trading price of such security is not available in any
of the foregoing manners, the lowest intraday price of any market makers for such security that are quoted on the OTC Markets.
If the Trading Prices cannot be calculated for such security on such date in the manner provided above, the Trading Prices shall
be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted
for which the calculation of the Trading Prices are required in order to determine the Conversion Price of such Notes. “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the Trading Market, or on the principal
securities exchange or other securities market on which the Common Stock is then being traded. If at any time while this Note
is outstanding, an Event of Default (as defined herein) occurs, then an additional discount of 15% shall be factored into the
Variable Conversion Price until this Note is no longer outstanding (resulting in a discount rate of 55% assuming no other adjustments
are triggered hereunder). If at any time while this Note is outstanding, the Borrower’s Common Stock are not deliverable
via DWAC, an additional 10% discount shall be factored into the Variable Conversion Price until this Note is no longer outstanding
(resulting in a discount rate of 50% assuming no other adjustments are triggered hereunder).

 

Each
time, while this Note is outstanding, the Borrower enters into a Section 3(a)(10) transaction, in which any 3rd party
has the right to convert monies owed to that 3rd party (or receive shares pursuant to a settlement or otherwise) at
a discount to market greater than the Variable Conversion Price in effect at that time (prior to all other applicable adjustments
in the Note), then the Variable Conversion Price shall be automatically adjusted to such greater discount percentage (prior to
all applicable adjustments in this Note) until this Note is no longer outstanding. Each time, while this Note is outstanding,
the Borrower enters into a Section 3(a)(10) transaction, in which any 3rd party has a look back period greater than
the look back period in effect under the Note at that time, then the Holder’s look back period shall automatically be adjusted
to such greater number of days until this Note is no longer outstanding. The Borrower shall give written notice to the Holder,
with the adjusted Variable Conversion Price and/or adjusted look back period (each adjustment that is applicable due to the triggering
event), within one (1) business day of an event that requires any adjustment described in the two immediately preceding sentences.

 

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If
at any time the Conversion Price as determined hereunder for any conversion would be less than the par value of the Common Stock,
then at the sole discretion of the Holder, the Conversion Price hereunder may equal such par value for such conversion and the
Conversion Amount for such conversion may be increased to include Additional Principal, where “Additional Principal”
means such additional amount to be added to the Conversion Amount to the extent necessary to cause the number of conversion shares
issuable upon such conversion to equal the same number of conversion shares as would have been issued had the Conversion Price
not been adjusted by the Holder to the par value price.

 

1.3
Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note. The Borrower is required at all times to have authorized and reserved five
(5) times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the
Notes in effect from time to time)(the “Reserved Amount”). The Reserved Amount shall be increased from time to time
in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be
duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change
to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at
the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be
a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding
Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to
its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions of this Note.

 

If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of
the Note.

 

1.4
Method of Conversion.

 

(a)
Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part, at any time
on or after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section
1.4(b), surrendering this Note at the principal office of the Borrower.

 

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(b)
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless
the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the
principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the
Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute
or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest
error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this
Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and
deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable
transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and
any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following
conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be
less than the amount stated on the face hereof.

 

(c)
Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other
than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such
shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount
of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

 

(d)
Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission
or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided
in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within two (2) business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with
the terms hereof.

 

(e)
Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall
be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the
amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults
on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith
terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such
conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue
and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by
the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against
any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower
to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by
the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation
of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall
be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time,
on such date.

 

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(f)
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained
in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with
DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

(g)
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon
conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3
above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each
day beyond the Deadline that the Borrower fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the
fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower
by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note,
in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall
be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a
valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right
are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained
in this Section 1.4(g) are justified.

 

1.5
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer
agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act
(or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in
Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who
is an Accredited Investor. Except as otherwise provided (and subject to the removal provisions set forth below), until such time
as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold
pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately
sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective
registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits
removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

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“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration under the Act, which opinion shall be accepted by the Borrower so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Borrower does
not accept the opinion of counsel provided by the Holder (provided that there is a reasonable basis for such opinion) with respect
to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it
will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

1.6
[Intentionally Omitted].

 

1.7
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than
the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved
Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a
Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for
such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because
of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received
certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect
to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a
holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect
to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the
Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted.
In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive
Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent
Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance
with Section 1.3) for the Borrower’s failure to convert this Note.

 

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ARTICLE
II. [Intentionally Omitted].

 

ARTICLE
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1
Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this
Note, whether at maturity, upon acceleration or otherwise, and such breach continues for a period of five (5) days, or fails to
pay a Floor Prepayment Amount (as defined in this Note) within the applicable period specified in Section 4.15 of this Note.

 

3.2
Conversion and the Shares. The Borrower fails to reserve a sufficient amount of shares of common stock as required under
the terms of this Note (including Section 1.3 of this Note), fails to issue shares of Common Stock to the Holder (or announces
or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of
the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically
or in certificated form) shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as
and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its
transfer agent in transferring (or issuing) (electronically or in certificated form) shares of Common Stock to be issued to the
Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs
its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or
to withdraw any stop transfer instructions in respect thereof) on any shares of Common Stock issued to the Holder upon conversion
of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat
that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or
any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for two (2) business
days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its
obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered
or frustrated due to a balance owed by the Borrower to its transfer agent.

 

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3.3
Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this
Note and any collateral documents and such breach continues for a period of ten (10) days after written notice thereof to the
Borrower from the Holder.

 

3.4
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith, shall be false or misleading in any material
respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights
of the Holder with respect to this Note.

 

3.5
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more than $150,000, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

 

3.8
Delisting of Common Stock. The Borrower shall fail to maintain the listing or quotation of the Common Stock on the Trading
Market or an equivalent replacement exchange, the Nasdaq Global Market, the Nasdaq Capital Market, the New York Stock Exchange,
or the NYSE MKT.

 

3.9
Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange
Act (including but not limited to becoming delinquent in its filings), and/or the Borrower shall cease to be subject to the reporting
requirements of the Exchange Act.

 

3.10
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.11
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to
pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as
a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

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3.12
Financial Statement Restatement. The Borrower fails to replace its auditor within ten (10) calendar days after the previous
auditor resigned or was fired by the Borrower its auditor, or any restatement of any financial statements filed by the Borrower
with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding,
if the result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse
effect on the rights of the Holder with respect to this Note.

 

3.13
Replacement of Transfer Agent. In the event that the Borrower replaces its transfer agent, and the Borrower fails to provide
prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions (including but not limited
to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent
to Borrower and the Borrower.

 

3.14
[Intentionally Omitted].

 

3.15
Inside Information. Any disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public
information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s
filing of a Form 8-K pursuant to Regulation FD on that same date.

 

3.16
No bid. At any time while this Note is outstanding, the lowest Trading Prices on the Trading Market or other applicable
principal trading market for the Common Stock is equal to or less than $0.0001.

 

3.17
Failure to Repay Upon Qualified Offering. The Borrower fails to repay the Note, in its entirety, pursuant to the terms
of the Note, with funds received from its next completed offering (with the understanding that all related issuances of an offering
shall be aggregated for purposes of the calculation hereunder) of $500,000.00 or more (consummated on or after the Issue Date).
For the avoidance of doubt, if the Borrower consummates a transaction covered by this Section 3.17 during the period beginning
seven (7) months after the Issue Date and ending prior to the Maturity Date, then this Section 3.17 shall only be triggered if
the Holder agreed to repayment of the Note after notice of the consummation of the transaction was provided by the Borrower to
the Holder (which such notice shall be provided within three (3) calendar days of the consummation of such transaction) and the
Borrower failed to immediately repay the Note.

 

3.18
Unavailability of Rule 144. If, at any time on or after the date which is six (6) months after the Issue Date, the Holder
is unable to (i) obtain a standard “144 legal opinion letter” from an attorney reasonably acceptable to the Holder,
the Holder’s brokerage firm (and respective clearing firm), and the Borrower’s transfer agent in order to facilitate
the Holder’s conversion of any portion of the Note into free trading shares of the Borrower’s Common Stock pursuant
to Rule 144, and (ii) thereupon deposit such shares into the Holder’s brokerage account.

 

    	10

    	 

    

 

Upon
the occurrence of any Event of Default specified in Sections 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13,
3.14, 3.15, 3.16, 3.17, and/or 3.18, exercisable through the delivery of written notice to the Borrower by such Holders (the “Default
Notice”), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to 150% (EXCEPT THAT 150% SHALL BE REPLACED WITH 200% WITH RESPECT TO A DEFAULT
UNDER SECTION 3.2 AND/OR 3.18) multiplied by the then outstanding entire balance of the Note (including principal and accrued
and unpaid interest) plus Default Interest, if any, plus any amounts owed to the Holder pursuant to Sections 1.4(g)
hereof (collectively, in the aggregate of all of the above, the “Default Amount”), and all other amounts payable hereunder
shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived,
together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled
to exercise all other rights and remedies available at law or in equity.

 

The
Holder shall have the right at any time to require the Borrower to issue the number of shares of Common Stock of the Borrower
equal to the Default Amount divided by the Conversion Price then in effect, subject to issuance in tranches due to the beneficial
ownership limitations contained in this Note.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, facsimile, or electronic mail addressed as set forth below or to such other address
as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to
be given hereunder shall be deemed effective (a) upon hand delivery, upon electronic mail delivery, or delivery by facsimile,
with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered
on a business day during normal business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on
the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or
upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

    	11

    	 

    

 

If
to the Borrower, to:

 

TWO
RIVERS WATER & FARMING COMPANY

3025
S Parker Rd., Suite 140

Aurora,
CO 80014

e-mail:
info@2riverswater.com

 

If
to the Holder:

 

MORNINGVIEW
FINANCIAL, LLC

401
Park Ave. South, 10th Floor New York, NY 10016

e-mail:
max@morningviewfn.com

 

4.3
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Neither the Borrower nor the Holder shall assign this Note or any rights or obligations
hereunder without the prior written consent of the other. Notwithstanding anything in this Note to the contrary, this Note may
be pledged as collateral in connection with a bona fide margin account or other lending arrangement. The Holder and any assignee,
by acceptance of this Note, acknowledge and agree that following conversion of a portion of this Note, the unpaid and unconverted
principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

 

4.5
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state and/or federal courts of New York, NY. The parties to this Note hereby irrevocably
waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack
of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing
party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any
provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably
waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this
Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any other manner permitted by law.

 

    	12

    	 

    

 

4.7
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding
principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest
on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on
this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty
and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the
sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant
to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate
to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares
of Common Stock.

 

4.8
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

4.9
Prepayment. Notwithstanding anything to the contrary contained in this Note, the Borrower may prepay this Note, during
the initial 60 calendar day period after the Issue Date, by making a payment to the Holder of an amount in cash equal to 115%
multiplied by the total amount outstanding under the Note. Notwithstanding anything to the contrary contained in this Note, the
Borrower may prepay this Note, beginning on the 61st calendar day after the Issue Date, and ending on the 90th calendar day after
the Issue Date, by making a payment to the Holder of an amount in cash equal to 120% multiplied by the total amount outstanding
under the Note. Notwithstanding anything to the contrary contained in this Note, the Borrower may prepay this Note, beginning
on the 91st calendar day after the Issue Date, and ending on the 120th calendar day after the Issue Date, by making a payment
to the Holder of an amount in cash equal to 125% multiplied by the total amount outstanding under the Note. Notwithstanding anything
to the contrary contained in this Note, the Borrower may prepay this Note, beginning on the 121st calendar day after the Issue
Date, and ending on the 180th calendar day after the Issue Date, by making a payment to the Holder of an amount in cash equal
to 135% multiplied by the total amount outstanding under the Note. The Borrower may not prepay this Note after the 180th day after
the issuance of this Note.

 

    	13

    	 

    

 

4.10
Usury. To the extent it may lawfully do so, the Borrower hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now
or at any time hereafter in force, in connection with any action or proceeding that may be brought by the Holder in order to enforce
any right or remedy under this Note. Notwithstanding any provision to the contrary contained in this Note, it is expressly agreed
and provided that the total liability of the Borrower under this Note for payments which under the applicable law are in the nature
of interest shall not exceed the maximum lawful rate authorized under the law applicable to this Note (the “Maximum Rate”),
and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated
with any other sums which under the law applicable to this Note in the nature of interest that the Borrower may be obligated to
pay under this Note exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by the law applicable
to this Note is increased or decreased by statute or any official governmental action subsequent to the Issue Date, the new maximum
contract rate of interest allowed by law will be the Maximum Rate applicable to this Note from the effective date thereof forward,
unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum
Rate is paid by the Borrower to the Holder with respect to indebtedness evidenced by this the Note, such excess shall be applied
by the Holder to the unpaid principal balance of any such indebtedness or be refunded to the Borrower, the manner of handling
such excess to be at the Holder’s election.

 

4.11
Section 3(a)(10) Transactions. If at any time while this Note is outstanding, the Borrower enters into a transaction structured
in accordance with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act (a “3(a)(10)
Transaction”), then a liquidated damages charge of 25% of the outstanding principal balance of this Note at that time, will
be assessed and will become immediately due and payable to the Holder, either in the form of cash payment or as an addition to
the balance of the Note, as determined by mutual agreement of the Borrower and Holder.

 

4.12
[Intentionally Omitted].

 

4.13
Right of First Refusal. If at any time while this Note is outstanding, the Borrower has a bona fide offer of capital or
financing from any 3rd party, that the Borrower intends to act upon, then the Borrower must first offer such opportunity
to the Holder to provide such capital or financing to the Borrower on the same terms as each respective 3rd party’s
terms. Should the Holder be unwilling or unable to provide such capital or financing to the Borrower within 10 trading days from
Holder’s receipt of written notice of the offer (the “Offer Notice”) from the Borrower, then the Borrower may
obtain such capital or financing from that respective 3rd party upon the exact same terms and conditions offered by
the Borrower to the Holder, which transaction must be completed within 30 days after the date of the Offer Notice. If the Borrower
does not receive the capital or financing from the respective 3rd party within 30 days after the date of the respective
Offer Notice, then the Borrower must again offer the capital or financing opportunity to the Holder as described above, and the
process detailed above shall be repeated. The Offer Notice must be sent via electronic mail to max@morningviewfn.com. In addition,
the Holder shall have the right, at any time until the Note is satisfied in its entirety, and upon written notice to the Borrower,
to purchase an additional convertible promissory note from the Borrower, with the exact same terms and conditions as provided
in this Note (with the understanding that the Borrower shall execute the form of this Note and all related transaction documents
with updated dates within three (3) business days after the Holder exercises such right).

 

    	14

    	 

    

 

4.14
Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries
of any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security
that was not similarly provided to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more
favorable term and such term, at Holder’s option, shall become a part of the transaction documents with the Holder. The
types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited
to, terms addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, original issue discounts,
stock sale price, private placement price per share, and warrant coverage.

 

4.15
Conversion Floor Price. Except as provided herein, the Conversion Price shall be subject to a floor of $0.20 per share
(the “Floor Price”) during the period beginning on the Issue Date and ending on November 15, 2019. If the Conversion
Price is less than $0.20 on any date identified in the column labeled “Floor Test Date” in the chart immediately following
this paragraph (each a “Floor Test Date”), then the Holder at its option may require the Borrower to pay $56,875.00
in cash (each a “Floor Prepayment Amount”) to the Holder within two (2) business days after the applicable Floor Test
Date for the redemption of $43,750.00 under the Note, and the Floor Price will remain in effect until the subsequent Floor Test
Date (except with respect to the last Floor Test Date, in which case the Floor Price will remain in effect until the last calendar
day immediately preceding the Maturity Date). This Section 4.15 shall be extinguished and of no further force or effect if an
Event of Default occurs under the Note. For the avoidance of doubt, if the Conversion Price is equal to or greater than $0.20
on any Floor Test Date, then the Borrower shall not have to pay the Floor Prepayment Amount with respect to that specific Floor
Test Date or any previous Floor Prepayment Amount not previously required to be paid.

 

	Floor Test Date	 	Floor Prepayment Amount if Applicable	 	Note Reduction Amount if Applicable
	November 15, 2019	 	$	56,875.00	 	 	$	43,750.00	 
	December 6, 2019	 	$	56,875.00	 	 	$	43,750.00	 
	December 27, 2019	 	$	56,875.00	 	 	$	43,750.00	 
	January 17, 2020	 	$	56,875.00	 	 	$	43,750.00	 
	February 7, 2020	 	$	56,875.00	 	 	$	43,750.00	 
	February 28, 2020	 	$	56,875.00	 	 	$	43,750.00	 
	March 20, 2020	 	$	56,875.00	 	 	$	43,750.00	 
	April 10, 2020	 	$	56,875.00	 	 	$	43,750.00	 
	May 1, 2020	 	$	56,875.00	 	 	$	43,750.00	 

 

[signature
page to follow]

 

    	15

    	 

    

 

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this May 21, 2019.

 

TWO
RIVERS WATER & FARMING COMPANY

 

	By:	 	 
	Name:	Wayne
    Harding	 
	Title:	Chief
    Executive Officer	 

 

    	16

    	 

    

 

EXHIBIT
A — NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $ principal amount of the Note (defined below) into that number of shares of Common Stock
to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of TWO RIVERS WATER &
FARMING COMPANY, a Colorado corporation (the “Borrower”) according to the conditions of the convertible note of the
Borrower dated as of May 21, 2019 (the “Note”), as of the date written below. No fee will be charged to the Holder
for any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ]
    	The
    Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the
    undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

 

Name
of DTC Prime Broker: Account Number:

 

	 	[  ]
    	The
    undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock
    set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately
    below or, if additional space is necessary, on an attachment hereto:

 

___________________________

___________________________

 

	Date
    of Conversion:	______________
	Applicable
    Conversion Price: 	$_____________
	Number
    of Shares of Common Stock to be Issued	 
	Pursuant
    to Conversion of the Notes:	______________
	Amount
    of Principal Balance Due remaining	 
	Under
    the Note after this conversion: 	______________

 

MORNINGVIEW
FINANCIAL, LLC

 

By:
____________________________

Name:__________________________

Title:___________________________

Date:___________________________

 

    	17

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