Document:

AMENDED
AND rESTATED CONSENT, NOTE AMENDMENT

AND

WARRANT
FORFEITURE AGREEMENT

 

This AMENDED AND
RESTATED CONSENT, NOTE AMENDMENT AND WARRANT FORFEITURE AGREEMENT (this “Agreement”) is entered into as of
October 24, 2012 by and among CNS Response, Inc., a Delaware corporation (the “Company”) and the
undersigned holders (“Undersigned Holders”), as the holders of secured convertible promissory notes in the
aggregate principal amount set forth opposite each such holder’s name below, and of the related warrants to purchase
the number of common stock, par value $0.001 per share (the “Common Stock”), of the Company.

 

Recitals for October
2010 Notes.

 

WHEREAS, the Company
entered into a Note and Warrant Purchase Agreement dated as of October 1, 2010 (the “October 2010 Purchase Agreement”)
with certain of the Undersigned Holders (the “October 2010 Holders”);

 

WHEREAS, pursuant to
the October 2010 Purchase Agreement, the Company issued and sold to such Undersigned Holders a secured convertible promissory note
(each, an “October 2010 Note”) and a warrant to purchase Common Stock (each, an “October 2010 Warrant”);

 

WHEREAS, the Company
and the October 2010 Holders entered into an Agreement to Convert and Amend, dated as of June 3, 2011, in respect of the October
2010 Notes and October 2010 Warrants in connection with a planned listing of securities of the Company on a Canadian securities
exchange;

 

WHEREAS, the Company
and the holders of a majority in outstanding principal amount of October 2010 Notes (the “October 2010 Majority Holders”)
subsequently entered into an Amendment and Conversion Agreement, dated as of September 30, 2011, in connection with the then-pending
maturity of the October 2010 Notes and conversion requirement upon a public offering in which the Company planned to issue securities
yielding gross proceeds of at least $10 million;

 

WHEREAS, the Company
effected a reverse stock split (“Reverse Split”) of the Common Stock on April 2, 2012 at 5:00 pm Pacific Time,
as a result of which the Conversion Price of the October 2010 Notes (as defined in the October 2010 Notes) was adjusted to $3.00,
the exercise price of the October 2010 Warrants was adjusted to $3.00 per share, and the number of shares issuable upon exercise
of the October 2010 Warrants was proportionately reduced;

 

WHEREAS, the Company
and the October 2010 Holders subsequently entered into a Conversion Agreement, dated as of May 4, 2012, in connection with a proposed
public offering in which the Company planned to issue securities yielding gross proceeds of at least $5 million;

    	 

    	 

    
 

WHEREAS, the Company
and the October 2010 Holders subsequently entered into a Conversion Agreement, dated as of June 12, 2012, in connection with a
proposed public offering in which the Company planned to issue securities yielding gross proceeds of at least $3 million;

 

WHEREAS, pursuant to Section 9 of the October
2010 Notes, the Company will not, without the prior written consent of the October 2010 Majority Holders, amend, waive or modify
any provision of the Notes;

 

WHEREAS, pursuant to
Section 4.2(b) of the October 2010 Purchase Agreement, the Company will not, without the prior
written consent of the October 2010 Majority Holders, borrow, guaranty or otherwise incur indebtedness in excess of $100,000;

 

Recitals for January 2011 Notes.

 

WHEREAS, the Company
entered into a Note and Warrant Purchase Agreement dated as of January 20, 2011 (the “January 2011 Purchase Agreement”)
with certain of the Undersigned Holders (the “January 2011 Holders”);

 

WHEREAS, pursuant to
the January 2011 Purchase Agreement, the Company issued and sold to such Undersigned Holders a convertible promissory note
(each, a “January 2011 Note”) and a warrant to purchase Common Stock (each, a “January 2011 Warrant”);

 

WHEREAS, the Company
and the January 2011 Holders entered into an Agreement to Convert and Amend, dated as of June 3, 2011, in respect of the
January 2011 Notes and January 2011 Warrants in connection with a planned listing of securities of the Company on
a Canadian securities exchange;

 

WHEREAS, the Company
and the holders of a majority in outstanding principal amount of January 2011 Notes (the “January 2011 Majority
Holders”) subsequently entered into an Amendment and Conversion Agreement, dated as of September 30, 2011, in connection
with the then-pending maturity of the January 2011 Notes and conversion requirement upon a public offering in which the
Company planned to issue securities yielding gross proceeds of at least $10 million;

 

WHEREAS, in connection
with the Reverse Split, the Conversion Price of the January 2011 Notes (as defined in the January 2011 Notes), was adjusted to
$3.00, the exercise price of the January 2011 Warrants was adjusted to $3.00 per share, and the number of shares issuable upon
exercise of the January 2011 Warrants was proportionately reduced;

 

WHEREAS, the Company
and the January 2011 Holders subsequently entered into a Conversion Agreement, dated as of May
4, 2012, in connection with a proposed public offering in which the Company planned to issue securities yielding gross proceeds
of at least $5 million;

 

WHEREAS, the Company
and the January 2011 Holders subsequently entered into a Conversion Agreement, dated as of June
12, 2012, in connection with a proposed public offering in which the Company planned to issue securities yielding gross proceeds
of at least $3 million;

    	-2-

    	 

    
 

WHEREAS, pursuant to Section 9 of the January
2011 Notes, the Company will not, without the prior written consent of the January 2011 Majority
Holders, amend, waive or modify any provision of the Notes;

 

WHEREAS, pursuant to
Section 4.2(b) of the January 2011 Purchase Agreement, the Company
will not, without the prior written consent of the January 2011 Majority Holders, borrow,
guaranty or otherwise incur indebtedness in excess of $100,000;

 

Recitals for November 2011 Notes.

 

WHEREAS, the Company
entered into an Amended and Restated Note and Warrant Purchase Agreement dated as of November 11, 2011 (the “November
2011 Purchase Agreement”) with certain of the Undersigned Holders (the “November 2011 Holders”);

 

WHEREAS, pursuant to
the November 2011 Purchase Agreement, the Company issued and sold to such Undersigned Holders a secured convertible promissory
note (each, a “November 2011 Note”) and a warrant to purchase Common Stock (each, a “November 2011
Warrant”);

 

WHEREAS, in connection
with the Reverse Split, the Conversion Price of the November 2011 Notes (as defined in the November 2011 Notes), was adjusted to
$3.00, the exercise price of the November 2011 Warrants was adjusted to $3.00 per share, and the number of shares issuable upon
exercise of the November 2011 Warrants was proportionately reduced;

 

WHEREAS, the Company
and holders of a majority in outstanding principal amount of the November 2011 Notes (the “November
2011 Majority Holders”) subsequently entered into a Conversion Agreement, dated as of May 4, 2012, in connection
with a proposed public offering in which the Company planned to issue securities yielding gross proceeds of at least $5 million;

 

WHEREAS, the Company
and the November 2011 Majority Holders subsequently entered into a Conversion Agreement, dated
as of June 12, 2012, in connection with a proposed public offering in which the Company planned to issue securities yielding gross
proceeds of at least $3 million;

 

WHEREAS, pursuant to
Section 9 of the November 2011 Notes, the Company will not, (i) without the written consent of
the November 2011 Majority Holders, amend, waive or modify any provision of the November
2011 Notes other than Sections 6(a)(ii), 6(c)(iii) and the proviso in the definition of “Conversion Price” in
Section 6(b) and (ii) without the written consent of the November 2011 Holder, amend, waive or
modify Sections 6(a)(ii) and 6(c)(iii) and the proviso in the definition of “Conversion Price” in Section 6(b) in such
November 2011 Holder’s Note(s).

 

WHEREAS, pursuant to
Section 5.2 of the November 2011 Purchase Agreement, any term of the November
2011 Purchase Agreement may be amended (either retroactively or prospectively) with the written consent of the Company and
the November 2011 Majority Holders.

    	-3-

    	 

    
 

WHEREAS, pursuant to
Section 4.2(b) of the November 2011 Purchase Agreement, the Company
will not, without the prior written consent of the November 2011 Majority Holders, borrow,
guaranty or otherwise incur indebtedness in excess of $100,000;

 

Recitals for February 2012 Notes.

 

WHEREAS, on February
29, 2012 the Company issued and sold to one of the Undersigned Holders (the “February 2012 Holder”) a secured
convertible promissory note (a “February 2012 Note”) and a warrant to purchase Common Stock (a “February
2012 Warrant”);

 

WHEREAS,
in connection with the Reverse Split, the Conversion Price of the February 2012 Note (as
defined in the February 2012 Note), was adjusted to $3.00, the exercise price of the February
2012 Warrant was adjusted to $3.00 per share, and the number of shares issuable upon exercise
of the February 2012 Warrant was proportionately reduced;

 

WHEREAS, the Company
and the February 2012 Holder subsequently entered into a Conversion Agreement, dated as of May 4, 2012, in connection with
a proposed public offering in which the Company planned to issue securities yielding gross proceeds of at least $5 million;

 

WHEREAS, the Company
and the February 2012 Holder subsequently entered into a Conversion Agreement, dated as of June 12, 2012, in connection
with a proposed public offering in which the Company planned to issue securities yielding gross proceeds of at least $3 million;

 

WHEREAS, pursuant to
Section 9 of the February 2012 Note, the Company will not, (i) without the written consent of the holders of a majority
in outstanding principal amount of February 2012 Notes (the “February 2012 Majority Holders”), amend,
waive or modify any provision of the February 2012 Notes other than Sections 6(a)(ii), 6(c)(iii) and the proviso in the
definition of “Conversion Price” in Section 6(b) and (ii) without the written consent of the February 2012 Holder,
the Company will not amend, waive or modify Sections 6(a)(ii) and 6(c)(iii) and the proviso in the definition of “Conversion
Price” in Section 6(b) in such February 2012 Holder’s Note(s).

 

General Recitals.

 

WHEREAS, the October
2010 Notes, January 2011 Notes, November 2011 Notes and February 2012 Note are herein collectively referred to as the “Existing
Notes” and the October 2010 Warrants, January 2011 Warrants, November 2011 Warrants and February 2012 Warrant are herein
collectively referred to as the “Existing Warrants”;

 

WHEREAS, the Company
wishes to issue senior secured convertible promissory notes (the “New Notes”) in the aggregate principal amount
of $2 million, such amount subject to increase at the discretion of the Company’s Board of Directors, pursuant to a new Note
Purchase Agreement in substantially the form attached as Exhibit B hereto (the “Amended and Restated Purchase Agreement”)
to investors who will invest funds after the date hereof and to those investors who have invested $600,000 between August 17, 2012
and October 19, 2012, of which investors who have invested $400,000 received notes with substantially the same terms as the terms
of the New Notes but containing a mandatory conversion provision (the purchase and sale of the New Notes pursuant to the Amended
and Restated Purchase Agreement and the purchase and sale of the 2013 Notes (as defined below) is referred to herein as the “New
Financing”);

    	-4-

    	 

    
 

WHEREAS, a Consent,
Note Amendment and Warrant Forfeiture Agreement (“Original Agreement”) was entered into as of August
15, 2012 by and among the Company and certain of the Undersigned Holders, representing approximately $2.5 million of the Existing
Notes outstanding as of such date;

 

WHEREAS, the Company
has, in accordance with such executed consents, accepted subscriptions and funds for $600,000 of New Notes;

 

WHEREAS, the Company
also has deemed it in the best interest of the Corporation to be able to issue additional senior secured convertible promissory
notes (the “2013 Notes”) in the aggregate principal amount of $1 million prior to the third calendar quarter
of 2013. Such amount, price and terms of 2013 Notes will be subject to the discretion of the Company’s Board of Directors,
pursuant to a new purchase agreement in form substantially similar to that attached as Exhibit B hereto (references herein
to the “New Financing” shall include the sale and issuance of promissory notes of up to $1 million during 2013);

 

WHEREAS, $200,000 of
such aggregate principal amount represents the aggregate principal amount outstanding under two demand notes in the principal amount
of $100,000 each, issued by the Company to John Pappajohn on April 26, 2012 and May 25, 2012, which are being exchanged in the
New Financing (such notes, the “Demand Notes”);

 

WHEREAS, in connection
with the New Financing, the parties hereto desire to amend that certain Amended and Restated Security Agreement, dated as of September
30, 2011, by and between the Company and Paul Buck, as administrative agent for the Secured Parties (as defined therein) (the “Prior
Security Agreement”), by entering into a Second Amended and Restated Security Agreement, in substantially the form attached
as Exhibit A hereto (the “Amended Security Agreement”), in order to grant to the holders of the New Notes
in the New Financing a first position security interest in the Collateral (as defined in the Prior Security Agreement), which shall
be senior to the security interest currently held by the holders of the Existing Notes pursuant to the Prior Security Agreement;
and

 

WHEREAS, the Company
and the Undersigned Holders wish to (i) amend the Existing Notes, (ii) forfeit, cancel and surrender the Existing Warrants and
(iii) consent to the New Financings in accordance with the terms set forth herein;

 

NOW, THEREFORE,
the Undersigned Holders who are executing this Agreement, consisting of at least the October 2010 Majority Holders, the January 2011
Majority Holders, the November 2011 Majority Holders and the February 2012 Holder, on behalf of all of the holders of the
Existing Notes and Existing Warrants, in consideration for the mutual promises and covenants herein, agree, effective upon
the Company’s receipt of proceeds in the New Financing of at least $1,350,000 (the “Minimum
Amount”) unless otherwise indicated, as follows:

    	-5-

    	 

    
 

1.Amendments
to Existing Notes.

 

(a)Maturity
Date. The Undersigned Holders agree that the maturity date set forth in subsection (i) of the first paragraph of each Existing
Note is hereby amended to mean October 1, 2013.

 

(b)Conversion
Price. The Undersigned Holders agree that the definition of “Conversion Price” in Section 6(b) of the Existing
Notes shall be replaced in its entirety with the following (the “Conversion Price Adjustment”):

 

“‘Conversion
Price’ means, as of any Conversion Date or other date of determination, $1.00, subject to adjustment as provided herein.”

 

 

Provided, however, that, for each holder
of November 2011 Notes, the existing proviso in Section 6(b) of the November 2011 Notes, referring to the Conversion Price in the
case of mandatory conversion described in Section 6(c)(iii) of such notes, shall only be deleted if such holder consents to such
deletion by signing this Agreement.

 

 

(c)Removal
of Full Ratchet. The Undersigned Holders agree to remove Section 7(d) - Ratchet in its entirety from the Existing Notes.

 

(d)Reference
to Security Agreement. The Undersigned Holders agree that any and all references in the Existing Notes to “Security Agreement”
shall be deemed to refer to the Amended Security Agreement, dated as of August 16, 2012, by and between the Company and David B.
Jones, as administrative agent on behalf of the Secured Parties (as defined therein).

 

 

(e)
Reference to Security Interest and Subordination. The Undersigned Holders agree that any references in the Existing
Notes to “first position security interest,” “second position security interest” and “subordination,”
or similar terms, shall be adjusted to reflect the structure described in Section 4 hereof and the Amended Security Agreement.

 

2.Forfeiture
of Warrants.

 

 

(a)Forfeiture.
Subject to the terms and conditions of this Agreement, the Undersigned Holders agree to cancel all of the Existing Warrants (it
being understood that no warrants other than the Existing Warrants shall be canceled pursuant to this Section).

    	-6-

    	 

    
 

(b)Release.
Each Undersigned Holder hereby releases and forever discharges the Company and its predecessors, successors, assigns and each of
them, and each past, present, and future director, partner, subsidiary, division or entity or affiliated corporation, and each
past, present or future employee, agent, representative, attorney, accountant, officer, director, stockholder, subscriber, and
all persons acting by, through, under or in concert with them, or any of them, of and from any and all claims, actions, causes
of action, suits, debts, liens, demands, contracts, liabilities, agreements, costs, expenses, or losses of any type, whether known
or unknown, fixed or contingent, which such Undersigned Holder had, now has, or may hereafter have, arising out of or resulting
from the Existing Warrants, or the shares of capital stock of the Company issuable upon exercise of the Existing Warrants, prior
to the date hereof, including, without limitation, any such claims and other rights related to or arising from any promise, guaranty
or grant (oral or written) by the Company to be issued or otherwise acquire or receive an equity interest in the Company, including
but not limited to: (i) the Undersigned Holder’s claim to any equity interest in the Company, and (ii) any and all claims
with respect to rights of notice under the Existing Warrants or applicable law.

 

3.Waiver.
Each Undersigned Holder hereby irrevocably waives the ability to declare an event of default under the Existing Notes as a result
of the issuance by the Company of the Demand Notes and the New Notes, including the notes as previously issued to those persons
who invested $600,000 from August 17, 2012 to October 19, 2012, and waives all rights and remedies related thereto under the Existing
Notes and the related purchase agreement.

 

4.Consent
to New Financing and Issuance of Demand Notes. Notwithstanding anything to the contrary in the terms of the Existing Notes,
the October 2010 Purchase Agreement, the January 2011 Purchase Agreement, the November 2011 Purchase Agreement and/or any other
agreement referenced in the Recitals hereto, each Undersigned Holder hereby irrevocably:

 

(a)agrees
and consents to the New Financing and the issuance of the New Notes by the Company on the terms and conditions set forth in the
New Purchase Agreement and the Amended Security Agreement, including, but not limited to, the grant of a first position security
interest in the Collateral to the investors in the New Financing, which first position security interest would be senior to the
security interests held by the holders of the Existing Notes;

 

(b)agrees and consents to the issuance
of New Notes, including the notes as previously issued to those persons who invested $600,000 from August 17, 2012 to October 19,
2012;

 

(c)agrees
and consents to the subordination of the Existing Notes to the investors in the New Financing; and

  

(d)
agrees and consents to the issuance of the Demand Notes. 

    	-7-

    	 

    
 

5.Representations and Warranties
of Undersigned Holders. Each Undersigned Holder hereby represents and warrants to the Company as follows:

 

(a)Authority.
Each Undersigned Holder has, as appropriate, full power and legal capacity and all corporate right, power, legal capacity and authority
to enter into this Agreement. The execution, delivery and performance of this Agreement has been duly and validly approved and
authorized by each Undersigned Holder.

 

(b)Title
to Warrants. Each Undersigned Holder has good and valid title to, and owns all right, title and interest (legal and beneficial)
in, the Existing Warrants being cancelled pursuant to this Agreement, free and clear of all liens. No stock certificates have been
issued to the Undersigned Holders, or, to the knowledge of the Undersigned Holders, to any other person, in respect of the Existing
Warrants.

 

(c)Accredited
Investor. Each Undersigned Holder is an “accredited investor” within the meaning of SEC Rule 501 of Regulation
D promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

(i)Investment
for Own Account. The shares of Common Stock to be issued upon conversion of the Existing Note(s) in accordance herewith are
being, and will be, acquired for his, her or its own account, for investment and not with a view to, or for resale in connection
with, any distribution or public offering thereof within the meaning of the Securities Act.

 

(ii)Knowledge
and Experience. Each Undersigned Holder has such knowledge and experience in financial and business matters that (s)he is capable
of evaluating the merits and risks of an investment in the shares of Common Stock and of making an informed investment decision
with respect thereto, has the ability and capacity to protect his/her interests and can bear the economic risk of the acceptance
of the shares of Common Stock, including a total loss of his/her investment.

 

(iii)Opportunity
to Ask Questions. Each Undersigned Holder has had the opportunity to ask questions and receive answers from the Company or
any authorized person acting on its behalf concerning the Company and its business and to obtain any additional information, to
the extent possessed by the Company (or to the extent it could have been acquired by the Company without unreasonable effort or
expense) necessary to verify the accuracy of the information received by each such Undersigned Holder. In connection therewith,
each Undersigned Holder acknowledges that (s)he has had the opportunity to discuss the Company’s business, management and
financial affairs with the Company’s management or any authorized person acting on its behalf.

 

(iv)Receipt
of Information. Each Undersigned Holder has received and reviewed all the information concerning the Company, the Existing
Notes and the shares of Common Stock underlying such Existing Notes, both written and oral, that the Undersigned Holder desires.
Without limiting the generality of the foregoing, the Undersigned Holder has been furnished with or has had the opportunity to
acquire, and to review: all information, both written and oral, that the Undersigned Holder desires with respect to the Company’s
business, management, financial affairs and prospects. In determining whether to make this investment, the Undersigned Holder has
relied solely on his/her own knowledge and understanding of the Company and its business based upon the Undersigned Holder’s
own due diligence investigations and the Company’s filings with the U.S. Securities and Exchange Commission.

    	-8-

    	 

    
 

6.Miscellaneous.

 

(a)Effectiveness
of Agreement. It is understood and agreed by the parties hereto that this Agreement shall only be effective upon the receipt
by the Company of the Minimum Amount in the New Financing; provided, however, that the waiver and consent contained in the second
sentence of Section 3 and in Section 4(c) shall be effective as to an Undersigned Holder immediately upon execution of this Agreement
by such holder.

 

(b)Acknowledgment.
It is understood and agreed by the parties hereto that the Company is making available to the holders of all Existing Notes the
same opportunity to receive the Conversion Price Adjustment set forth in Section 1 hereof.

 

(c)Governing
Law. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY,
INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING
EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF CALIFORNIA OR ANY OTHER JURISDICTIONS)
THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTIONS OTHER THAN THE STATE OF CALIFORNIA.

 

(d)Amendment.
This Agreement may only be amended by written agreement of the Company and at least the October 2010 Majority Holders, the January
2011 Majority Holders, the November 2011 Majority Holders and the February 2012 Majority Holders expressly stating that such instrument
is intended to modify, amend or supplement this Agreement.

 

(e)Assignment.
An Undersigned Holder may only assign this Agreement with the written consent of the Company. The Company may freely assign this
Agreement without the consent of any other party. Any assignment of this Agreement in violation of this Section is null and void.
This Agreement shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

(f)Waiver
of Rights. No failure on the part of any party hereto to exercise, and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy by such party preclude
any other or further exercise thereof or the exercise of any other right, power or remedy. All rights, powers and remedies under
this Agreement are cumulative and are not exclusive of any other rights, powers and remedies provided by law.

    	-9-

    	 

    
 

(g)No Other
Agreements. This Agreement (including the Exhibits attached hereto) contains a final and complete integration of all prior
expressions by the parties hereto with respect to the subject matter thereof and shall constitute the entire agreement between
the parties hereto with respect to the subject matter thereof, superseding all prior oral or written understandings. There are
no unwritten agreements between the parties hereto. In the event of a conflict between the terms of this Agreement, on the one
hand, and the terms of the Existing Notes, the October 2010 Purchase Agreement, the January 2011 Purchase Agreement, the November
2011 Purchase Agreement and/or any other agreement referenced in the Recitals hereto, on the other hand, the terms of this Agreement
shall prevail and control.

 

(h)Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. This Agreement will be binding upon the Company and the Undersigned Holders and their
respective successors, assigns, heirs and personal representatives.

 

(i)Further
Assurances. The Undersigned Holders shall from time to time and at all times hereafter make, do, execute, or cause or procure
to be made, done and executed such further acts, deeds, conveyances, consents and assurances without further consideration, which
may be reasonably required to effect the transactions contemplated by this Agreement.

 

[Signature page follows]

    	-10-

    	 

    
 

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

	 	
        CNS Response, Inc.

         

         

        By:_/s/ George Carpenter               

        Name: George Carpenter

        Title: CEO

 

 

	
        Holders of Existing Notes:

         
	Series of Existing Note(s)	Aggregate Principal Amount(s)
	
         

        /s/ John Pappajohn

        ___________________________________

        John Pappajohn

         
	October 2010 Notes	$761,688
	
         

        SAIL Venture Partners, LP

         

         

        By:_/s/ Walter L. Schindler______________

        Name: __Walter L. Schindler____________

        Title: _ Managing Partner______________

         
	October 2010 Notes	$250,000
	
         

         

        __/s/ Andy Sassine_____________________

        Andy Sassine

                                                                           11/28/12

         
	October 2010 Notes	$500,000
	
         

         

        ___________________________________

        Fatos Mucha

         
	October 2010 Notes	$100,000
	
         

        JD Advisors, LLC

         

        By:_________________________________

        Name: ______________________

        Title: _____________________

         
	October 2010 Notes	$150,000

 

    	 

    	 

    
 

	
         

        Queen Street Capital Corporation

         

        By:_________________________________

        Name: ______________________

        Title: _____________________

         
	October 2010 Notes	$100,000
	
         

        BGN Acquisition Ltd., LP

         

        By:__/s/ George Kallins________________

        Name: ___George Kallins______________

        Title: ____GP_________________

         
	October 2010 Notes	$250,000
	
         

        Deerwood Holdings, LLC

         

        By:__/s/ George Kallins________________

        Name: ___George Kallins______________

        Title: ____MM_________________

         

         
	October 2010 Notes	$256,125
	
         

        Deerwood Partners, LLC

         

        By:__/s/ George Kallins________________

        Name: ___George Kallins______________

        Title: ____MM_________________

         
	October 2010 Notes	$256,125
	
         

        Pyxis (Highland) Long/Short Healthcare Fund

         

        By:__________________________________

        Name: ______________________

        Title: _____________________

         
	October 2010 Notes	$400,000

	 	 	 
	
         

         

        /s/ Meyer Proler, M.D.

        ___________________________________

        Meyer Proler M.D.

         
	January 2011 Notes	$100,000

 

    	 

    	 

    
 

	
         

         

         

        ____________________________________

        William F. Grieco

         
	January 2011 Notes	$100,000
	
         

         

        /s/ Edward L. Scanlon

        _____________________________________

        Edward L.Scanlon

         
	January 2011 Notes	$200,000
	
        Frommer Family Trust dated August 29, 2006

         

        By:__/s/ Robert Frommer________________

        Name: __Robert Frommer______________

        Title: ___Trustee_________________

         
	January 2011 Notes	$50,000
	
 

 

/s/ Buck__________________________

        Paul Buck

         
	January 2011 Notes	$50,000
	
         

         

        /s/ Andy Sassine

        _____________________________________

        Andy Sassine

                                                                             11/28/12

         
	January 2011 Notes	$200,000
	
         

        Highland Long/Short Healthcare Fund

         

        By:__________________________________

        Name: ______________________

        Title: _____________________

         
	January 2011 Notes	$400,000
	
        SAIL 2010 Co-Investment Partners, LP

         

        By:__/s/ Walter L. Schindler_____________

        Name: __Walter L. Schindler____________

        Title: __Managing Partner_____________

         
	January 2011 Notes	$437,500

 

    	 

    	 

    
 

	
        SAIL Venture Partners, LP

         

        By:__/s/ Walter L. Schindler_____________

        Name: __Walter L. Schindler____________

        Title: __Managing Partner_____________

         
	January 2011 Notes	$562,500
	
         

         

         

        _____________________________________

        Rajiv Kaul

         
	January 2011 Notes	$100,000
	
 

 

/s/ John M. Pulos____________________

        John M. Pulos

         
	January 2011 Notes	$150,000
	
         

        Cummings Bay Healthcare Fund, LP.

         

        By:__________________________________

        Name: ______________________

        Title: _____________________

         
	January 2011 Notes	$150,000
	 	 	 
	
 

 

__/s/ John Pappajohn__________________

        John Pappajohn

         
	
        November 2011 Notes

         
	
        $750,000

         

	
        Jordan Family, LLC

         

        By:__________________________________

        Name: ______________________

        Title: _____________________

         

         
	
        November 2011 Notes

         
	
        $20,000

         

	
         

         

        /s/ Larry Hopfenspirger

        ____________________________________

        Larry Hopfenspirger

         
	
        November 2011 Notes

         
	$90,000

 

    	 

    	 

    
 

	
        Zanett Opportunity Fund, Ltd

        c/o Appleby Surling Hunter

         

        By:_/s/ Zachary McAdoo_____________

        Name: _ Zachary McAdoo______

        Title: __Director_____________

         
	
        November 2011 Notes

         
	$290,000
	
         

         

         

        _/s/ Edward L. Scanlon_________________

        Edward L. Scanlon

         
	
        November 2011 Notes

         
	$100,000
	
        Fidelity Management Trust Company : FBO

        John Pagnucco Acct :177-659304

         

        By:__________________________________

        Name: ______________________

        Title: _____________________

         
	
        November 2011 Notes

         
	$50,000
	
        Scotia Capital ITF AlphaNorth Offshore Inc.

        Acct 40300733

         

        By:__________________________________

        Name: ______________________

        Title: _____________________

         
	
        November 2011 Notes

         
	$500,000
	
         

         

         

        ____________________________________

        Gene Salkind, MD

         
	
        November 2011 Notes

         
	$50,000
	
 

 

_____________________________________

        Aubrey W. Baillie

         
	
        November 2011 Notes

         
	$100,000
	
        Blumont Capital Corp.

        ITF Northern Rivers Innovation RSP Fund.

         

        By:__/s/ Hugh Cleland_________________

        Name: __Hugh Cleland________________

        Title: __EVP & Portfolio Manager______

         
	
        November 2011 Notes

         
	$50,000

 

    	 

    	 

    
 

	 	 	 
	
        Zanett Opportunity Fund, Ltd

        c/o Appleby Surling Hunter

         

        By:_/s/ Zachary McAdoo______________

        Name: _Zachary McAdoo_____________

        Title: _Director___________________

         
	
        February 2012 Note

         
	$90,000
	 	 	 

 

    	 

    	 

    
 

Exhibit
A

 

 

[AMENDED
SECURITY AGREEMENT (WITH eXHIBITS)]

    	 

    	 

    
 

Exhibit B

 

 

[AMENDED AND RESTATED PURCHASE AGREEMENT
(WITH EXHIBITS)]Exhibit 4.1

 

WARRANT TO PURCHASE COMMON STOCK

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED,
SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

 

THIS INSTRUMENT IS ISSUED PURSUANT TO AND
SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE AGREEMENT, DATED AS OF FEBRUARY 1, 2013,
AS AMENDED FROM TIME TO TIME, BETWEEN THE ISSUER OF THESE SECURITIES AND THE INVESTORS REFERRED TO THEREIN, A COPY OF WHICH IS
ON FILE WITH THE ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE
WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

 

THIS WARRANT IS ISSUED AS A UNIT WITH A
NUMBER OF SHARES OF SERIES B VOTING PREFERRED STOCK OF THE CORPORATION EQUAL TO THE SHARES PURCHASABLE HEREBY AND MAY NOT BE SOLD
OR OTHERWISE TRANSFERRED EXCEPT IN CONNECTION WITH A CORRESPONDING NUMBER OF SUCH SHARES.

 

WARRANT No. [●]

 

to purchase

 

[●]

 

Shares of Common Stock

 

EMERALD OIL, INC.

a Montana Corporation

 

Issue Date: [●], 2013

 

1.        
Definitions. Unless the context otherwise requires, when used herein the following terms shall have the meanings
indicated.

 

“Accrued
Principal Amount” has the meaning ascribed to it in the Series A Certificate.

 

“Affiliate”
has the meaning ascribed to it in the Purchase Agreement.

 

“Aggregate
Cash Investment” means $50,000,000.

 

    	 

    	 

    
 

“Board of
Directors” means the board of directors of the Corporation, including any duly authorized committee thereof.

 

“Business
Day” means a day that is a Monday, Tuesday, Wednesday, Thursday or Friday and is not a day on which banking institutions
in Billings, Montana or New York, New York generally are authorized or obligated by law, regulation or executive order to close.

 

“Change of
Control” has the meaning ascribed to it in the Series A Certificate.

 

“Common Stock”
means the Corporation’s Common Stock, $0.001 par value per share.

 

“Corporation”
means Emerald Oil, Inc., a Montana corporation.

 

“Default”
has the meaning ascribed to it in the Series A Certificate.

 

“Event of
Default” has the meaning ascribed to it in the Series A Certificate.

 

“Event of
Material Default” has the meaning ascribed to it in the Series A Certificate.

 

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

 

“Exercise
Price” means $5.77, as adjusted from time to time after the Issue Date in accordance with the terms of this Warrant.

 

“Expiration
Time” has the meaning set forth in Section 3(a)

 

“Investors”
means WDE Emerald Holdings LLC, a Delaware limited liability company, White Deer Energy FI L.P., a Cayman Islands exempted limited
partnership, and each of their respective Affiliates.

 

“Issue Date”
has the meaning set forth in the title of this Warrant.

 

“Junior Stock”
has the meaning ascribed to it in the Series A Certificate.

 

“Liquidation
Event” means the occurrence of (a) a liquidation, dissolution or winding up of the affairs of the Corporation, whether
voluntary or involuntary, (b) an Event of Material Default that shall (i) not have been cured or waived within thirty (30)
days or (ii) not have been cured or waived and shall have resulted in any payment pursuant to the Credit Facility becoming
due and payable prior to its scheduled maturity, whether by acceleration or otherwise, or (c) an Event of Default that shall not
have been cured or waived and shall have resulted in any payment pursuant to the Credit Agreement becoming due and payable prior
to its scheduled maturity, whether by acceleration or otherwise.

 

“Market Price”
means, with respect to one share of Common Stock, on any date of determination, the last sale price, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked prices, regular way, of the shares of the Common Stock
on NYSE MKT on such day. If the Common Stock is not traded on NYSE MKT on any date of determination, the Market Price on such date
of determination means the closing sale price as reported in the composite transactions for the principal U.S. national or regional
securities exchange on which the Common Stock is so listed or quoted, or, if no closing sale price is reported, the last reported
sale price on the principal U.S. national or regional securities exchange on which the Common Stock is so listed or quoted, or
if the Common Stock is not so listed or quoted on a U.S. national or regional securities exchange, the last quoted bid price for
the Common Stock in the over-the-counter market as reported by Pink Sheets LLC or similar organization, or, if that bid price is
not available, the Market Price on that date shall mean the fair market value per share as determined by the Board of Directors,
acting in good faith, in reliance on an opinion of a nationally recognized independent investment banking firm retained by the
Corporation for this purpose and certified in a resolution sent to the Warrantholder. For the purposes of determining the Market
Price on the “trading day” preceding, on or following the occurrence of an event, (a) that trading day shall be deemed
to commence immediately after the regular scheduled closing time of trading on NYSE MKT or, if trading is closed at an earlier
time, such earlier time and (b) that trading day shall end at the next regular scheduled closing time, or if trading is closed
at an earlier time, such earlier time (for the avoidance of doubt, and as an example, if the Market Price is to be determined as
of the last trading day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and the specified
event occurs at 5:00 p.m. on that day, the Market Price would be determined by reference to such 4:00 p.m. closing price).

 

    	2

    	 

    
 

“NYSE MKT”
means NYSE MKT LLC.

 

“Permitted
Shares” means shares of Common Stock issued or issuable (a) upon exercise of this Warrant, (b) pursuant to share dividends,
distributions, subdivisions, combinations or reclassifications or (c) pursuant to employee incentive equity plans (including the
Corporation’s 2011 Equity Incentive Plan), employee option plans, employee purchase plans, or other employee benefit plans
established exclusively for compensatory purposes, which plans are approved by the Board of Directors.

 

“Person”
has the meaning ascribed to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange
Act.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of February 1, 2013, by and among the Corporation, WDE Emerald
Holdings LLC, a Delaware limited liability company, White Deer Energy FI L.P., a Cayman Islands exempted limited partnership, including
all schedules and annexes thereto, as it may be amended from time to time.

 

“Regulatory
Approvals” with respect to the Warrantholder, means, to the extent applicable and required to permit the Warrantholder
to exercise this Warrant for shares of Common Stock and to own such Common Stock without the Warrantholder being in violation of
applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of, filings and registrations with,
notifications to, or expiration or termination of any applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended, and the rules and regulations thereunder.

 

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

 

    	3

    	 

    
 

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

 

“Series A”
means the Corporation’s preferred stock designated as “Series A Perpetual Preferred Stock,” $0.001 par value
per share.

 

“Series A
Certificate” means the Certificate of Designations of Series A Perpetual Preferred Stock relating to Series A, as it
may be amended from time to time.

 

“Series B”
means the Corporation’s preferred stock designated as “Series B Voting Preferred Stock,” $0.001 par value per
share.

 

“Series B
Certificate” means the Certificate of Designations of Series B Voting Preferred Stock relating to Series B, as it may
be amended from time to time.

 

“Share”
has the meaning set forth in Section 2

 

“Subsequent
Gross Proceeds” has the meaning set forth in Section 14(d)

 

“Transaction
Documents” has the meaning ascribed to it in the Purchase Agreement.

 

“Warrant”
means this Warrant, issued pursuant to the Purchase Agreement.

 

“Warrantholder”
means the holder of this Warrant or its permitted assigns.

 

“Weighted
Average Price” means, with respect to one share of Common Stock, on any date of determination, the dollar volume-weighted
average price for such security on NYSE MKT or, if the Common Stock is no longer traded on NYSE MKT, the principal U.S. national
securities exchange on which the Common Stock is then traded, for the 10 consecutive trading days immediately preceding such date,
as reported by Bloomberg through its “Volume at Price” functions.

 

2.        
Number of Shares; Exercise Price. This certifies that, for value received, the Warrantholder is entitled, upon the
terms and subject to the conditions hereinafter set forth, to acquire from the Corporation, in whole or in part, after the receipt
of all applicable Regulatory Approvals, up to an aggregate of 5,114,633 fully paid and nonassessable shares of Common Stock (each
a “Share”), at a purchase price per Share equal to the Exercise Price, provided, however, if the Warrantholder
provides a certificate in a form satisfactory to the Corporation representing that Warrantholder is not subject to any restrictions
under the HSR Act, the Warrantholder may exercise such Warrants without filing any notification and report forms under the HSR
Act.

 

3.        
Exercise of Warrant; Term.

 

(a)       
The right to purchase the Shares represented by this Warrant is exercisable, in whole or in part by the Warrantholder,
at any time or from time to time after the Effective Date and after the receipt of all applicable Regulatory Approvals, but in
no event later than 11:59 p.m., New York City time, on December 31, 2019 (the “Expiration Time”), by (i) the
surrender of (A) this Warrant and Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder
and (B) certificates representing a number of shares of Series B equal to the Shares thereby purchased, in each case at the principal
executive office of the Corporation located at 1600 Broadway, Suite 1360, Denver, Colorado 80202 (or such other office or agency
of the Corporation in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder
appearing on the books of the Corporation), and (ii) payment of the aggregate Exercise Price for the Shares thereby purchased
at the election of the Warrantholder by (A) tendering in cash, by certified or cashier’s check payable to the order of the
Corporation, or by wire transfer of immediately available funds to an account designated by the Corporation, (B) electing a cashless
exercise pursuant to Section 3(b), or (C) offsetting the aggregate Exercise Price against the Warrantholder’s aggregate
Accrued Principal Amount as set forth in Section 3(c)

 

    	4

    	 

    
 

(b)       
If, as of the day immediately preceding the time a Notice of Exercise is delivered to the Corporation, the Market Price
is greater than the Exercise Price, in lieu of exercising this Warrant for cash, the Warrantholder may elect to receive Shares
equal to the value (as determined below) of this Warrant (or the portion thereof being exercised) by surrender of this Warrant
and Notice of Exercise (which shall include notice of such election) in which event the Corporation shall issue to the Warrantholder
a number of Shares computed using the following formula:

 

X = Y
(A-B)

           A

 

Where:

X =
the number of Shares to be issued to the Warrantholder;

Y
= the number of Shares purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion
of the Warrant being exercised;

A = the Market Price set forth
above; and

B = the Exercise Price.

  

(c)       
In lieu of exercising this Warrant for cash, the Warrantholder may elect to pay the aggregate Exercise Price payable for
the Shares being purchased by delivering to the Corporation for cancellation such number of shares of Series A held by the Warrantholder
having an aggregate Accrued Principal Amount equal to such aggregate Exercise Price as of the date of such payment.

 

(d)      
If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from
the Corporation within a reasonable time, and in any event not exceeding five Business Days, a new warrant in substantially identical
form for the purchase of that number of Shares equal to the difference between the number of Shares subject to this Warrant and
the number of Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant to the contrary, the Warrantholder
hereby acknowledges and agrees that its exercise of this Warrant for Shares is subject to the condition that the Warrantholder
will have first received any applicable Regulatory Approvals.

 

    	5

    	 

    
 

(e)       
The Corporation and the Warrantholder intend for any exercise of this Warrant pursuant to Section 3(b) or Section 3(c)
to be treated, for U.S. federal and applicable state income tax purposes, as an exchange by the Warrantholder of this Warrant
and, in the case of an exercise pursuant to Section 3(c), shares of Series A for Shares in a transaction qualifying as a recapitalization
within the meaning of Section 368(a)(1)(E) of the Internal Revenue Code of 1986, as amended (and any similar or corresponding
provision of applicable state tax law), and the Corporation agrees to report consistently for all federal and state income tax
purposes.

 

4.        
Investors Minimum Return. Upon a Change of Control or Liquidation Event, the Investors shall have the right, but
not the obligation, to elect to receive from the Corporation, in exchange for all, but not less than all, shares of Series A,
shares of Series B, warrants issued pursuant to the Purchase Agreement and shares of Common Stock issued upon exercise thereof
that are then held by the Investors, an additional cash payment necessary to achieve a minimum internal rate of return of 25%
as calculated using the Microsoft Excel XIRR function. The calculation will take into account all cash inflows from and cash outflows
to the Investors, including the initial $50,000,000 cash investment by the Investors, all cash-paid dividends to the Investors,
any cash-paid Liquidation Preference (as defined in the Series A Certificate) to the Investors and all cash proceeds received
by the Investors from the exercise of warrants issued pursuant to the Purchase Agreement. No consideration or value will be given
to any shares of Series A, shares of Series B, warrants issued pursuant to the Purchase Agreement, shares of Common Stock issued
upon exercise thereof or other securities of the Corporation that are held by the Investors based on a mark-to-market value or
other valuation methodology for purposes of the foregoing calculation. The rights of the Investors set forth in this Section 4
are limited to the Investors and shall not be transferable to any other Person upon a sale, transfer or other conveyance of this
Warrant.

 

5.        
Issuance of Shares; Authorization; Listing. Subject to compliance with the transfer restrictions applicable to this
Warrant and the Shares pursuant to the provisions hereof and the Purchase Agreement, certificates for Shares issued upon exercise
of this Warrant shall be issued in such name or names as the Warrantholder may designate and shall be delivered to such named
Person or Persons within a reasonable time, not to exceed ten Business Days after the date on which this Warrant has been duly
exercised and the aggregate Exercise Price for the Shares thereby purchased has been duly delivered, in accordance with the terms
of this Warrant. The Corporation hereby represents and warrants that any Shares issued upon the exercise of this Warrant in accordance
with the provisions of Section 3 will be duly and validly authorized and issued, fully paid and nonassessable and free from all
taxes, liens and charges (other than liens or charges created by the Warrantholder, except as otherwise provided herein, income
and franchise taxes incurred in connection with the exercise of the Warrant or taxes in respect of any transfer occurring contemporaneously
therewith). The Shares so issued shall be deemed to have been issued to the Warrantholder as of the close of business on the date
on which this Warrant and payment of the aggregate Exercise Price are delivered to the Corporation in accordance with the terms
of this Warrant, notwithstanding that the stock transfer books of the Corporation may then be closed or certificates representing
such Shares may not be actually delivered on such date. The Corporation shall at all times reserve and keep available, out of
its authorized but unissued Common Stock, solely for the purpose of providing for the exercise of this Warrant, the aggregate
number of shares of Common Stock issuable upon exercise of this Warrant. The Corporation shall (a) procure, at its sole expense,
the listing of the Shares issuable upon exercise of this Warrant, subject to issuance or notice of issuance, on all principal
stock exchanges on which the Common Stock is then listed or traded and (b) maintain such listings of such Shares at all times
after issuance. The Corporation shall use reasonable best efforts to ensure that the Shares may be issued without violation of
any applicable law or regulation or of any requirement of any securities exchange on which the Shares are listed or traded. The
Corporation and the Warrantholder shall reasonably cooperate to take such other actions as are necessary to obtain (i) any Regulatory
Approvals applicable to Warrantholder’s exercise of its rights hereunder, including with respect to the issuance of the
Shares and (ii) any regulatory approvals applicable to the Corporation as a result of the issuance of the Shares.

 

    	6

    	 

    
 

6.        
No Fractional Shares or Scrip. No fractional Shares or scrip representing fractional Shares shall be issued upon
any exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the Warrantholder
shall be entitled to receive a cash payment equal to the Market Price on the last trading day preceding the date of exercise less
the Exercise Price for such fractional share; provided, however, that the Corporation may, at its option, round up to the
nearest whole share of Common Stock in lieu of any cash payment.

 

7.        
No Rights as Stockholders; Transfer Books. This Warrant does not entitle the Warrantholder to any voting rights or
other rights as a stockholder of the Corporation prior to the date of exercise hereof. The Corporation shall at no time close its
transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant.

 

8.        
Charges, Taxes and Expenses. Issuance of certificates for Shares to the Warrantholder upon the exercise of this Warrant
shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance
of such certificates, all of which taxes and expenses shall be paid by the Corporation.

 

9.        
Transfer/Assignment.

 

(a)       
Subject to compliance with clauses (b) and (c) of this Section 9, this Warrant and all rights hereunder are transferable,
in whole or in part, upon the books of the Corporation by the registered holder hereof in person or by duly authorized attorney,
and a new warrant shall be made and delivered by the Corporation, of the same tenor and date as this Warrant but registered in
the name of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of the Corporation
described in Section 3. All expenses (other than stock transfer taxes) and other charges payable in connection with the preparation,
execution and delivery of the new warrants pursuant to this Section 9 shall be paid by the Corporation.

 

(b)       
Notwithstanding the foregoing, this Warrant and any rights hereunder, and any Shares issued upon exercise of this Warrant,
shall be subject to the applicable restrictions as set forth in Section 4.3 of the Purchase Agreement.

 

(c)       
If and for so long as required by the Purchase Agreement, this Warrant Certificate shall contain a legend as set forth in
Section 4.4 of the Purchase Agreement.

 

    	7

    	 

    
 

(d)      
The Warrant is issued as a unit with a number of shares of Series B equal to the number of Shares purchasable hereby and
may not be sold or otherwise transferred except in connection with the corresponding number of such shares of Series B.

 

10.    
Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender hereof by the Warrantholder to
the Corporation, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of
Shares. The Corporation shall maintain a registry showing the name and address of the Warrantholder as the registered holder of
this Warrant. This Warrant may be surrendered for exchange or exercise, in accordance with its terms, at the office of the Corporation,
and the Corporation shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

 

11.    
Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Corporation of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon
receipt of a bond, indemnity or security reasonably satisfactory to the Corporation, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, the Corporation shall make and deliver, in lieu of such lost, stolen, destroyed or
mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of Shares as provided
for in such lost, stolen, destroyed or mutilated Warrant.

 

12.    
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding day that is a Business Day.

 

13.    
Rule 144 Information. The Corporation shall use its reasonable best efforts to timely file all reports and other
documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated by
the SEC thereunder (or, if the Corporation is not required to file such reports, it shall, upon the request of any Warrantholder,
make publicly available such information as necessary to permit sales pursuant to Rule 144 or Regulation S under the Securities
Act), and it shall use reasonable best efforts to take such further action as any Warrantholder may reasonably request, in each
case to the extent required from time to time to enable such holder to, if permitted by the terms of this Warrant and the Purchase
Agreement, sell this Warrant without registration under the Securities Act within the limitation of the exemptions provided by
(a) Rule 144 or Regulation S under the Securities Act, as such rules may be amended from time to time, or (b) any successor rule
or regulation hereafter adopted by the SEC. Upon the written request of any Warrantholder, the Corporation will deliver to such
Warrantholder a written statement that it has complied with such requirements.

 

14.    
Adjustments and Other Rights. The Exercise Price and the number of Shares issuable upon exercise of this Warrant
shall be subject to adjustment from time to time as follows:

 

(a)       
Stock Splits, Subdivisions, Reclassifications or Combinations. If the Corporation shall (i) declare and pay a dividend
or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common
Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number
of shares, then the number of Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or
distribution or the effective date of such subdivision, combination or reclassification shall be proportionately adjusted so that
the Warrantholder after such date shall be entitled to purchase the number of shares of Common Stock which such holder would have
owned or been entitled to receive in respect of the shares of Common Stock subject to this Warrant after such date had this Warrant
been exercised immediately prior to such date.

 

    	8

    	 

    
 

(b)       
Reorganization, Consolidation, Merger and Other Changes. In case of any capital reorganization or change in the
Common Stock of the Corporation (other than as a result of a subdivision, combination, or stock dividend provided for in Section
14(a)), or consolidation or merger of the Corporation with or into another entity, or the sale of all or substantially all of
its assets to another entity shall be effected in such a way that holders of Common Stock shall be entitled to receive stock,
securities or assets with respect to or in exchange for such Common Stock, then, as a condition of such reorganization,
change, consolidation, merger or sale, lawful provision shall be made, and duly executed documents evidencing the same from the
Corporation or its successor shall be delivered to the Warrantholder, so that the Warrantholder shall have the right at any time
prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant,
the kind and amount of shares of stock and other securities and property receivable in connection with such reclassification,
reorganization, change, consolidation, merger or sale by a holder of the same number of shares of Common Stock as were purchasable
by the Warrantholder immediately prior to such reclassification, reorganization, change, consolidation, merger or sale. In any
such case appropriate provisions shall be made with respect to the rights and interest of the Warrantholder so that the provisions
hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise
hereof, and appropriate adjustments shall be made to the purchase price per share payable hereunder, provided the aggregate purchase
price shall remain the same.

 

(c)       
Whenever the number of Shares into which this Warrant is exercisable shall be adjusted as provided in this Section 14,
the Corporation shall forthwith file at the principal office of the Corporation a statement showing in reasonable detail the facts
requiring such adjustment and the number of Shares into which this Warrant shall be exercisable after such adjustment, and the
Corporation shall also cause a copy of such statement to be sent to each Warrantholder at the address appearing in the Corporation’s
records. The Corporation shall also issue to the Warrantholder a number of additional shares of Series B so that, following such
issuance, the number of shares of Series B issued with respect to this Warrant shall equal the number of Shares then purchasable
hereby.

 

(d)      
Issuance of Additional Shares. If at any time after the Issue Date the Corporation issues or sells (i) any shares
of Common Stock in exchange for consideration in an amount per share less than the Exercise Price in effect immediately prior to
such issuance or sale or (ii) any other securities of the Corporation in respect of which shares of Common Stock may be acquired
(whether by exercise, conversion, exchange or otherwise) in exchange for consideration in an amount per share of Common Stock less
than the Exercise Price in effect immediately prior to such issuance or sale, in each case other than Permitted Shares, then upon
such issuance or sale, the Exercise Price shall be reduced to a price computed using the following formula:

 

    	9

    	 

    
 

 

	Exercise Price =	(W + X)	 
	 	(Y + Z)	 
	 	 	 
	Where:	W =	(i) the Exercise Price in effect immediately prior to the issuance of such shares or securities multiplied by (ii) the Aggregate Cash Investment;
	 	X =	(i) the gross transaction proceeds received by or on behalf of the Corporation with respect to the subsequent issuance or sale (the “Subsequent Gross Proceeds”) multiplied by (ii) the consideration per share at which each such share of Common Stock is issued or issuable;
	 	Y =	the Aggregate Cash Investment; and
	 	Z =	the Subsequent Gross Proceeds.

 

15.     Governing
Law. This Warrant will be governed by and construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the
non-exclusive personal jurisdiction of the State or Federal courts in the Borough of Manhattan, The City of New York,
(b) that non-exclusive jurisdiction and venue shall lie in the State or Federal courts in the State of New York, and (c) that
notice may be served upon such party at the address and in the manner set forth for such party in Section 3 hereof. To the
extent permitted by applicable law, each of the parties hereto hereby unconditionally waives trial by jury in any legal
action or proceeding relating to the Transaction Documents or the transactions contemplated hereby or thereby.

 

16.    
Binding Effect. This Warrant shall be binding upon any successors or assigns of the Corporation.

 

17.    
Amendments. This Warrant may be amended and the observance of any term of this Warrant may be waived only with the
written consent of the Corporation and the Warrantholder.

 

18.    
Notices. Any notice, request, instruction or other document to be given hereunder by any party to the other will
be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile,
upon confirmation of receipt, or (b) on the second Business Day following the date of dispatch if delivered by a recognized next
day courier service. All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may
be designated in writing by the party to receive such notice.

 

If to the Corporation, to:

 

Emerald Oil, Inc.

1600 Broadway, Suite 1360

Denver, Colorado

Attention: McAndrew Rudisill

Telephone: (303) 323-0008

Facsimile: (303) 323-0008

 

    	10

    	 

    
 

If to the Warrantholder, to:

 

c/o White Deer Energy L.P.

667 Madison Ave., 4th Floor

New York, New York 10065

Attention: Thomas J. Edelman

Telephone: (212) 371-1117

Facsimile: (212) 888-6877

 

and

 

c/o White Deer Energy L.P.

700 Louisiana, Suite 4770

Houston, Texas 77002

Attention: James E. Saxton

Telephone: (713) 581-6906

Facsimile: (713) 581-6901

 

19.    
Entire Agreement. This Warrant and the Transaction Documents contain the entire agreement between the parties with
respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto.

 

[Signature Page Follows.]

 

    	11

    	 

    

 

IN WITNESS WHEREOF, this Warrant has been
executed by the Corporation as of the date first herein above written.

 

 

 

	 	EMERALD OIL, INC.
	 	 
	 	By: 	 
	 	 	Name:McAndrew Rudisill

Title:President

 

	 	Attest:
	 	 
	 	By: 	 
	 	 	Name:

Title:

 

Signature Page
to Warrant

 

    	 

    	 

    

 

[Form of Notice of Exercise]

 

Date: _________

 

		TO:	Emerald Oil, Inc.

 

		RE:	Election to Purchase Common Stock

 

The undersigned,
pursuant to the provisions set forth in the attached Warrant, hereby agrees to subscribe for and purchase the number of shares
of the Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby
agrees to pay the aggregate Exercise Price for such shares of Common Stock:

 

	 	 ̈	in cash

 

	 	 ̈	by cashless exercise

 

	 	 ̈	by offset to the undersigned’s Accrued Principal Amount

  

A new warrant evidencing
the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued
in the name set forth below.

  

Number of Shares of Common Stock: ____________________

 

Aggregate Exercise Price: ___________________________

 

	 	Holder:	
	 	 	 
	 	By:	
	 	 	 
	 

                                    
	Name:	
	 	 	 
	 	Title:	 

 

Form of Exercise
Notice

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