Document:

Exhibit 4.2

 

Form of Representative’s Warrant Agreement

 

THE REGISTERED HOLDER OF
THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS
HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE
THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN
(I) AEGIS CAPITAL CORP. OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR
PARTNER OF AEGIS CAPITAL CORP. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

 

THIS PURCHASE WARRANT IS
NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE OF THE OFFERING]. VOID AFTER
5:00 P.M., EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of [_____] Shares of Common
Stock

of

NEPHROGENEX, INC.

 

1.          Purchase
Warrant. THIS CERTIFIES THAT, in consideration of the payment of $100.00 and for other good and value consideration, Aegis
Capital Corp. or its assigns (“Holder”), as registered owner of this Purchase Warrant, to NephroGenex, Inc.,
a Delaware corporation (the “Company”), Holder is entitled, at any time or from time to time from [________________]
[DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE OF THE OFFERING] (the “Commencement Date”), and at or
before 5:00      p.m., Eastern time, [____________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE
DATE OF THE OFFERING] (the ”Expiration Date”), but not thereafter, to subscribe for, purchase
and receive, in whole or in part, up to [____] shares of common stock of the Company, par value $0.001 per share (the “Shares”),
subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which banking institutions are authorized
by law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with
the terms herein. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate
this Purchase Warrant. This Purchase Warrant is initially exercisable at $[___] per Share [125% of the price of the Shares sold
in the Offering]; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof,
the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon
such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise
price or the adjusted exercise price, depending on the context. The term “Effective Date” shall mean the date
on which the Registration Statement on Form S-1 (File No. 333-193023) of the Company was declared effective by the Securities and
Exchange Commission.

 

    	 

    	 

    

 

2.            Exercise.

 

2.1           Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time,
on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

 

2.2           Cashless
Exercise.  If at any time after the Commencement Date there is no effective registration statement registering, or no
current prospectus available for, the resale of the Shares by the Holder, then in lieu of exercising this Purchase Warrant by payment
of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares
equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to
the Company, together with the exercise form attached hereto, in which event the Company shall issue to Holder Shares in
accordance with the following formula:

 

	X	=	Y(A-B)	 
	A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.

 

For purposes of this Section
2.2, the fair market value of a Share is defined as follows:

 

		(i)	if the Company’s common stock is traded on a securities exchange, the value shall be deemed
to be the closing price on such exchange prior to the exercise form being submitted in connection with the exercise of the Purchase
Warrant; or

 

		(ii)	if the Company’s common stock is actively traded over-the-counter,
the value shall be deemed to be the closing bid prior to the exercise form being submitted in connection with the exercise of the
Purchase Warrant; if there is no active public market, the value shall be the fair market value thereof, as determined in good
faith by the Company’s Board of Directors.

 

2.3           Legend.
Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless such securities
have been registered under the Securities Act of 1933, as amended (the “Securities Act”):

 

“The securities represented
by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration
under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

    	 

    	 

    

 

3.            Transfer.

 

3.1           General
Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder
will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days
following the Effective Date to anyone other than: (i) Aegis Capital Corp. (“Aegis”) or an underwriter or a
selected dealer participating in the Offering, or (ii) a bona fide officer or partner of Aegis or of any such underwriter or selected
dealer, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause this Purchase Warrant or the securities issuable
hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On
and after 180 days after the Effective Date, transfers to others may be made subject to compliance with or exemptions from applicable
securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached
hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection
therewith. The Company shall within five (5) business days transfer this Purchase Warrant on the books of the Company and shall
execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing
the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated
by any such assignment.

 

3.2         Restrictions
Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and until:
(i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption
from registration under the Securities Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Reed Smith LLP shall be deemed satisfactory
evidence of the availability of an exemption), or (ii) a registration statement or a post-effective amendment to the Registration
Statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities
and Exchange Commission (the “Commission”) and compliance with applicable state securities law has been established.

 

4.            Registration
Rights.

 

4.1         Demand
Registration.

 

4.1.1           Grant
of Right. The Company, upon written demand (a “Demand Notice”) of the Holders of at least 51% of the Purchase
Warrants and/or the underlying Shares (“Majority Holders”), agrees to register, on one occasion, all or any portion
of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”). On such occasion,
the Company will file a registration statement with the Commission covering the Registrable Securities within sixty (60) days after
receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective promptly thereafter,
subject to compliance with review by the Commission; provided, however, that the Company shall not be required to
comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder is entitled to piggyback
registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate in the offering covered
by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of securities
of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after such
offering is consummated. The demand for registration may be made at any time during a period of four (4) years beginning on the
Commencement Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holders to
all other registered

 

    	 

    	 

    

 

Holders of the Purchase Warrants and/or the
Registrable Securities within ten (10) days after the date of the receipt of any such Demand Notice.

 

4.1.2           Terms. The
Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts
to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such
States as are reasonably requested by the Holders; provided, however, that in no event shall the Company be required
to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register
or license to do business in such State or submit to general service of process in such State, or (ii) the principal shareholders
of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration
statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12)
consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first
given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell
the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if
the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission. Notwithstanding
the provisions of this Section 4.1.2, the Holder shall be entitled to a demand registration under this Section 4.1.2 on only one
(1) occasion and such demand registration right shall terminate on the fifth anniversary of the Effective Date in accordance with
FINRA Rule 5110(f)(2)(H)(iv).

 

4.2         “Piggy-Back”
Registration.

 

4.2.1           Grant
of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right,
for a period of no more than seven (7) years from the date of effectiveness of the registration statement in accordance with FINRA
Rule 5110(f)(2)(H)(v), to include the Registrable Securities as part of any other registration of securities filed by the Company
(other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form
S-8 or any equivalent form); provided, however, that if, solely in connection with any primary underwritten public
offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation
on the number of shares of Common Stock which may be included in the Registration Statement because, in such underwriter(s)’
judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall
be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to
which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities
shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities
sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable Securities
unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities
in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

 

4.2.2           Terms. The
Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the

 

    	 

    	 

    

 

Company shall furnish the then Holders of outstanding
Registrable Securities with not less than thirty (30) days written notice prior to the proposed date of filing of such registration
statement. Such notice to the Holders shall continue to be given for each registration statement filed by the Company until such
time as all of the Registrable Securities have been sold by the Holder. The holders of the Registrable Securities shall exercise
the “piggy-back” rights provided for herein by giving written notice within ten (10) days of the receipt of the Company’s
notice of its intention to file a registration statement. Except as otherwise provided in this Purchase Warrant, there shall be
no limit on the number of times the Holder may request registration under this Section 4.2.2; provided, however,
that such registration rights shall terminate on the sixth anniversary of the Commencement Date.

 

4.3         General
Terms.

 

4.3.1           Indemnification.
The Company shall indemnify the Holders of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of
the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise,
arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which
the Company has agreed to indemnify the Underwriters contained in Section 5.1 of the Underwriting Agreement between the Underwriters
and the Company, dated as of [___________], 2014. The Holders of the Registrable Securities to be sold pursuant to such registration
statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act
or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for
specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section
5.2 of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company.

 

4.3.2           Exercise of
Purchase Warrants. Nothing contained in this Purchase Warrant shall be construed as requiring the Holders to exercise their
Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

 

4.3.3           Documents Delivered
to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each underwriter
of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of counsel to the
Company, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering,
an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold comfort”
letter dated the effective date of such registration statement (and, if such registration includes an underwritten public offering,
a letter dated the date of the closing under the underwriting agreement) signed by the independent registered public accounting
firm which has issued a report on the Company’s financial statements included in such registration statement, in each case
covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and,
in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements, as are
customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten
public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering requesting
the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence

 

    	 

    	 

    

 

between the Commission and the Company, its
counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to the registration
statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws
or rules of FINRA. Such investigation shall include access to books, records and properties and opportunities to discuss the business
of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times as any such
Holder shall reasonably request.

 

4.3.4           Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be reasonably
satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder
and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other
terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to
any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that
any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be
made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or
agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods
of distribution.

 

4.3.5           Documents to
be Delivered by Holders. Each of the Holders participating in any of the foregoing offerings shall furnish to the Company a
completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

4.3.6           Damages.
Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Holders shall, in addition to any other legal or other relief available to
the Holders, be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened
breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the
necessity of posting bond or other security.

 

5.            New
Purchase Warrants to be Issued.

 

5.1         Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in
whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation,
together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax
if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase
Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number
of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

5.2         Lost Certificate.
Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant
and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Warrant
of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction
shall constitute a substitute contractual obligation on the part of the Company.

 

    	 

    	 

    

 

6.            Adjustments.

 

6.1         Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall
be subject to adjustment from time to time as hereinafter set forth:

 

6.1.1           Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding
Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective
day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares,
and the Exercise Price shall be proportionately decreased.

 

6.1.2           Aggregation of
Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is decreased
by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the
number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and the Exercise
Price shall be proportionately increased.

 

6.1.3           Replacement of
Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than a change
covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share reconstruction
or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation or share reconstruction
or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification or reorganization
of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the property of the Company
as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant
shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise
hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares
of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, share reconstruction
or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares
of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also
results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1,
6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations,
share reconstructions or amalgamations, or consolidations, sales or other transfers.

 

6.1.4           Changes in Form
of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1, and
Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in the
Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Warrants
reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement
Date or the computation thereof.

 

6.2         Substitute Purchase
Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company with or into,
another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in any reclassification
or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction

 

    	 

    	 

    

 

or amalgamation shall execute and deliver to
the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding
shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase
Warrant, the kind and amount of shares of stock and other securities and property receivable upon such consolidation or share reconstruction
or amalgamation, by a holder of the number of Shares for which such Purchase Warrant might have been exercised immediately prior
to such consolidation, share reconstruction or amalgamation, sale or transfer. Such supplemental Purchase Warrant shall provide
for adjustments which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section
shall similarly apply to successive consolidations or share reconstructions or amalgamations.

 

6.3         Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the
exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being
the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may
be, to the nearest whole number of Shares or other securities, properties or rights.

 

7.          
 Reservation and Listing. The Company shall at all times reserve and keep available out of its authorized Shares,
solely for the purpose of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities,
properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of
the Purchase Warrants and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other
securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to
preemptive rights of any shareholder. The Company further covenants and agrees that upon exercise of the Purchase Warrants
and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise shall be duly and
validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long as the
Purchase Warrants shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares
issuable upon exercise of the Purchase Warrants to be listed (subject to official notice of issuance) on all
national securities exchanges (or, if applicable, on the OTC Bulletin Board or any successor trading market) on which the
Shares issued to the public in the Offering may then be listed and/or quoted.

 

8.   
        Certain Notice Requirements.

 

8.1         Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to
receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder
of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event
at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination
of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of
the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder
a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that such notice is
given to the shareholders.

 

8.2         Events Requiring
Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events:
(i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or
distribution payable

 

    	 

    	 

    

 

otherwise than in cash, or a cash dividend
or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution
on the books of the Company, (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock
of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right
or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with
a consolidation or share reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business
shall be proposed.

 

8.3         Notice of Change
in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section
6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe
the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s
Chief Financial Officer.

 

8.4         Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company,
to following address or to such other address as the Company may designate by notice to the Holders:

 

If to the Holder:

 

Aegis Capital Corp.

810 Seventh Avenue, 11th Floor

New York, New York 10019

Attn: Mr. David Bocchi, Managing Director of Investment Banking

Fax No.: (212) 813-1047

 

with a copy (which shall not constitute notice) to:

Reed Smith LLP

599 Lexington Avenue

New York, NY 10022

Attn: Yvan-Claude Pierre, Esq.

Fax No.:  212-521-5450

 

If to the Company:

NephroGenex, Inc.

P.O. Box 1028

Berwyn, PA 19312

Attention: Pierre Legault

Fax No: 610-647-5742

 

with a copy (which shall not constitute notice) to:

 

Mintz, Levin, Cohn, Ferris,

Glovsky and Popeo, P.C.

666 Third Avenue

New York, NY 10017

Attention: Joel I. Papernik, Esq.

Fax No: (212) 983-3115

 

    	 

    	 

    

  

9.            Miscellaneous.

 

9.1         Amendments.
The Company and Aegis may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with
any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company
and Aegis may deem necessary or desirable and that the Company and Aegis deem shall not adversely affect the interest of the Holders.
All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement
of the modification or amendment is sought.

 

9.2         Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

9.3.        Entire Agreement.
This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this
Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes
all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

9.4         Binding Effect.
This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted
assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any
legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein
contained.

 

9.5         Governing Law;
Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any
objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served
upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall
be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing
party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees
and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on
its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby
irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

 

9.6         Waiver, etc.
The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed
or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision
hereof or the

 

    	 

    	 

    

 

right of the Company or any Holder to thereafter
enforce each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of
the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties
against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment
shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

9.7         Execution in
Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same
agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered
to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission.

 

9.8         Exchange Agreement.
As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any time prior to
the complete exercise of this Purchase Warrant by Holder, if the Company and Aegis enter into an agreement (“Exchange
Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

[Signature Page Follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the Company has caused this
Purchase Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2014.

 

	NEPHROGENEX, INC.	 
	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

[Form to be used to exercise Purchase Warrant]

 

Date: __________, 20___

 

The undersigned
hereby elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.001 per share (the “Shares”),
of NephroGenex, Inc., a Delaware corporation (the “Company”), and hereby makes payment of $____ (at the rate
of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase Warrant
is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number
of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The undersigned
hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares,
as determined in accordance with the following formula:

 

	 	X	=	Y(A-B)	 
	A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share which is equal to $_____; and
	 	B	=	The Exercise Price which is equal to $______ per share

 

The undersigned
agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with
respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please issue
the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a
new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.

 

	Signature 	 	 

 

	Signature Guaranteed 	 	 

 

    	 

    	 

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

	Name:	 	 
	 	(Print in Block Letters)	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

NOTICE: The signature to
this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

    	 

    	 

    

 

[Form to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

(To be executed by the registered Holder to
effect a transfer of the within Purchase Warrant):

 

FOR VALUE RECEIVED, __________________ does
hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.001 per share, of NephroGenex,
Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does hereby authorize the
Company to transfer such right on the books of the Company.

 

Dated: __________, 20__

 

	Signature	 	 

 

	Signature Guaranteed	 	 

 

NOTICE: The signature to this form must correspond with the name
as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national
securities exchange.3rdamendment (1)

EXECUTION VERSION

THIRD AMENDMENT TO 
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into effective as of the 29th day of January, 2014, among SOUTHCROSS ENERGY PARTNERS, L.P., a Delaware limited partnership (the “Borrower”), WELLS FARGO BANK, N.A., a national banking association, as the Administrative Agent (the “Administrative Agent”), and each of the Lenders (as defined below) that has executed this Amendment (the “Consenting Lenders”).
W I T N E S S E T H:
WHEREAS, the Borrower, the Administrative Agent and the financial institutions party thereto as lenders (the “Lenders”) are parties to that certain Second Amended and Restated Credit Agreement dated as of November 7, 2012 (as amended prior to the Third Amendment Effective Date (as defined in Section 2 of this Amendment), the “Credit Agreement”) (unless otherwise defined herein, all terms used herein which are defined in the Credit Agreement shall have the meanings given such terms in the Credit Agreement, as amended hereby); 
WHEREAS, pursuant to the Credit Agreement, the Lenders have made Loans to the Borrower and provided certain other credit accommodations to the Borrower; 
WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders amend certain terms and provisions of the Credit Agreement as provided in this Amendment in order to permit the Borrower and its Subsidiaries to make certain Investments and Growth Capital Expenditures; and
WHEREAS, subject to the terms and conditions set forth herein, the Consenting Lenders have agreed to the Borrower’s request.
NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the Borrower, the Administrative Agent and the Consenting Lenders hereby agree as follows:
Section 1Amendments.  In reliance on the representations, warranties, covenants and agreements contained in this Amendment, and subject to the satisfaction of each condition precedent set forth in Section 2 hereof, the Credit Agreement shall be amended effective as of the Third Amendment Effective Date in the manner provided in this Section 1.
1.1    Deleted Definition.  Section 1.02 of the Credit Agreement shall be amended by deleting in its entirety the defined term “Equity Funded Capital Expenditure Amount” contained therein.
2010706v.8 WEL554/23006
1.2    Additional Definitions.  Section 1.02 of the Credit Agreement shall be amended to add thereto in alphabetical order the following defined terms:
“Additional Webb Equity Proceeds” has the meaning set forth in Section 9.23(c)(ii).
“CapEx Collateral Amount” means an amount equal to the sum of (a) the Growth CapEx Collateral Amount plus (b) the Webb CapEx Collateral Amount.
“Growth CapEx Collateral Amount” has the meaning set forth in Section 9.23(b).  
“Initial Webb Equity Proceeds” has the meaning set forth in Section 9.23(c)(i)(B).  
“Non-Equity-Funded Growth Capital Expenditures” means Growth Capital Expenditures other than Webb Project Growth Capital Expenditures.
“Oscar Acquisition” means the acquisition by the Borrower, any Guarantor or any Subsidiary that becomes a Guarantor contemporaneously with the consummation of such acquisition and in accordance with the provisions of Section 8.14(a) of the Oscar Assets or the Oscar Equity as further described in the Third Amendment Request, whether acquired by the Borrower or such Guarantor or Subsidiary (a) directly from the owners of Oscar Assets or the Oscar Equity, as applicable, or (b) from the General Partner and/or Southcross Holdings, as applicable, after the initial acquisition thereof by such Person or Persons.
“Oscar Assets” means certain specified natural gas pipeline assets that are intended to be acquired by the Borrower, directly or indirectly, as such assets are further described in the “Project Oscar – Overview” portion of the Third Amendment Request and otherwise as mutually agreed between the Borrower and the Administrative Agent.
“Oscar Equity” means 100% of the Equity Interests in the owner of the Oscar Assets as of the initial date such Equity Interests are acquired by the Borrower, any Guarantor, any Subsidiary that becomes a Guarantor contemporaneously with the consummation of such acquisition and in accordance with the provisions of Section 8.14(a), or the General Partner and/or Southcross Holdings, as applicable.  
“Oscar Equity Proceeds” has the meaning set forth in Section 9.05(n)(iv).  
“Oscar Purchase Price” has the meaning set forth in Section 9.05(n)(iii).  
“Third Amendment Request” means that certain “Senior Secured Credit Facility Amendment Request – December 2013” delivered and presented to the Administrative Agent and the Lenders by the Borrower prior to the Third Amendment Effective Date.
“Third Amendment Effective Date” means January 29, 2014.
“Webb CapEx Collateral Amount” has the meaning set forth in Section 9.23(c)(ii).  
“Webb Equity Proceeds” has the meaning set forth in Section 9.23(c)(ii).  
“Webb Project” means that certain pipeline construction project extending the Loan Parties’ existing pipeline systems located in McMullen, County, Texas  by approximately 90 miles into Webb County, Texas, Dimmit County, Texas, and LaSalle County, Texas (as further described in the Third Amendment Request), which construction project is targeted to be completed on or prior to November 1, 2014.  
“Webb Project Growth Capital Expenditures” means Growth Capital Expenditures made or committed to be made from and after the Third Amendment Effective Date that are either funded with Webb Equity Proceeds or for which cash collateral has been deposited in the GP Cash Collateral Account or any other cash collateral account in accordance with the requirements of Section 9.23(c)(ii).  
1.3    Amendment to Definition of Qualified Equity Securities.  The definition of the term “Qualified Equity Securities” set forth in Section 1.02 of the Credit Agreement shall be amended by amending and restating the first parenthetical contained therein as follows:
(other than Disqualified Capital Stock and Equity Interests the net cash proceeds of which constitute Oscar Equity Proceeds or Webb Equity Proceeds) 
1.4    Amendment to Definition of Subsequent Equity Amount.  The definition of “Subsequent Equity Amount” by amending and restating clause (a)(ii) thereof in its entirety as follows:
(ii)    the CapEx Collateral Amount; and
1.5    Amendment to Mandatory Prepayment Provision.  Clause (iv) of subsection 3.04(b) of the Credit Agreement shall be amended and restated as follows:
(iv)    (A) On each Required Equity Contribution Date contemporaneously with the consummation of the relevant Required Equity Contribution, 100% of the Required Equity Proceeds with respect to such Required Equity Contribution shall be applied by the Borrower as a mandatory prepayment, (B) on any date that the Borrower receives Oscar Equity Proceeds, 100% of such Oscar Equity Proceeds shall be applied by the Borrower as a mandatory prepayment, and (C) on any date that the Borrower receives Webb Equity Proceeds, 100% of such Webb Equity Proceeds shall be applied by the Borrower as a mandatory prepayment, in each case in accordance with the requirements of Section 3.04(b)(v).  
1.6    Amendment to Consolidated Total Leverage Ratio Covenant.  Section 9.01 shall be amended by amending and restating the provisos set forth at the end of clause (a)(i) thereof in their entirety as follows:
provided, that if on or prior to March 31, 2014 the Borrower has both (1) received net cash proceeds from the issuance of Equity Interests satisfying the conditions set forth in Sections 9.05(n)(iv) and 9.23(c)(i)(B), and (2) initiated construction of the Webb Project in accordance with the terms and conditions of this Agreement, then the “Maximum Adjusted Consolidated Total Leverage Ratio” set forth in the grid contained in clause (a)(i)(B) above for the Rolling Period ending on March 31, 2014 shall be deemed decreased to 5.75 to 1.00; provided, further, that upon the Borrower closing a Material Acquisition or the Oscar Acquisition after the Borrower’s exercise of the Target Leverage Option, the Borrower may elect (by delivering written notice of such election to the Administrative Agent on the closing date of such Material Acquisition or the Oscar Acquisition, as applicable) for the Rolling Period ending on the last day of the fiscal quarter in which such acquisition occurs and for the immediately following two Rolling Periods to increase the maximum Consolidated Total Leverage Ratio that is permitted to 5.00 to 1.00; provided, further, that the Borrower is not permitted to make more than one such election in any period of four consecutive fiscal quarters.
1.7    Amendments to Investments, Loans, and Advances Covenant.  Section 9.05 of the Credit Agreement shall be amended by (a) deleting the word “and” at the end of clause “(m)” thereof, (b) re-lettering clause “(n)” thereof as clause “(o)”, and (c) inserting the following new clause “(n)”:
(n)    the Oscar Acquisition; provided that each of the following conditions is satisfied:
(i)    each of the conditions set forth in clauses (a), (c)(ii) and (f) of the definition of the term “Permitted Acquisition” shall have been satisfied with respect to the Oscar Acquisition;
(ii)    any purchase or other acquisition agreement (including, without limitation, any such agreement entered into between the owners of the Oscar Assets or the Oscar Equity, as sellers, and the Borrower, any Guarantor, any Subsidiary that becomes a Guarantor contemporaneously with the consummation of such acquisition and in accordance with the provisions of Section 8.14(a), or the General Partner and/or Southcross Holdings, as purchasers) and all other material agreements relating to the Oscar Acquisition and/or the Oscar Assets shall be in form and substance reasonably satisfactory to the Administrative Agent, and fully executed and assembled copies of each such agreement shall have been delivered to the Administrative Agent;
(iii)    the aggregate consideration paid by the Borrower, any Guarantor, any Subsidiary that becomes a Guarantor contemporaneously with the consummation of such acquisition and in accordance with the provisions of Section 8.14(a), the General Partner and/or Southcross Holdings for the Oscar Acquisition does not exceed an amount equal to the sum of (A) $40,000,000 plus (B) the aggregate amount of all reasonable and documented out-of-pocket fees and expenses that are incurred by the General Partner, Southcross Holdings and/or the Loan Parties in connection with the acquisition by such Persons of the Oscar Assets or the Oscar Equity, as applicable (provided that such fees and expenses shall not exceed $3,000,000 in the aggregate) (the “Oscar Purchase Price”); 
(iv)    the Borrower shall have expressly designated, in one or more written notices delivered to the Administrative Agent concurrently with any issuance of Equity Interests in the Borrower consummated after the Third Amendment Effective Date, net cash proceeds (other than Webb Equity Proceeds and Subsequent Equity Proceeds) received by the Borrower from such issuances in a minimum aggregate amount equal to the greater of (A) $40,000,000 and (B) the Oscar Purchase Price, for the sole purpose of funding the Oscar Acquisition (any proceeds so designated, “Oscar Equity Proceeds”), which Oscar Equity Proceeds (1) shall not be designated by the Borrower for any other purpose, including, without limitation, for funding Webb Project Growth Capital Expenditures in accordance with Section 9.23(c)(i)(B) or (c)(ii), and (2) shall not satisfy, in whole or in part, Borrower’s obligation to consummate the Subsequent Equity Contribution pursuant to Section 8.20(b);
(v)    concurrently with any issuance of Equity Interests in the Borrower the net cash proceeds of which are designated as Oscar Equity Proceeds in accordance with clause (n)(iv) of this Section, the Borrower shall have furnished the Administrative Agent with (A) written notice informing the Administrative Agent that such issuance has been completed and confirming the amount of net cash proceeds thereof that have been designated as Oscar Equity Proceeds, (B) a certificate of a Financial Officer of the Borrower, in form and substance satisfactory to the Administrative Agent, certifying as to the aggregate amount of net cash proceeds received by or on behalf of the Borrower in connection with such issuance, (C) fully executed and assembled copies of the material agreements and documents governing such issuance, and (D) such other information, documents or agreements relating to such issuance as the Administrative Agent may reasonably request;
(vi)    100% of any Oscar Equity Proceeds shall have been applied as prepayments in accordance with Section 3.04(b)(iv)(B); 
(vii)    the Oscar Acquisition shall have been consummated on or prior to March 31, 2014; and
(viii)    the Borrower shall deliver such title and other information with respect to the Oscar Assets as required under and prior to the deadlines set forth in Section 8.13.
1.8    Amendments to Capital Expenditures Covenant.  Section 9.23 of the Credit Agreement shall be amended and restated in its entirety as follows:
Section 9.23    Limitation on Capital Expenditures.  The Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly make or commit to make any Capital Expenditure prior to the date on which the Borrower exercises the Target Leverage Option except:
(a)    Maintenance Capital Expenditures; 
(b)    Non-Equity-Funded Growth Capital Expenditures; provided, that, after giving effect to any such Non-Equity-Funded Growth Capital Expenditure the aggregate amount of Non-Equity-Funded Growth Capital Expenditures made or committed to be made (measured as of the date that each such Non-Equity-Funded Growth Capital Expenditure is made or committed to be made) during (i) the period commencing on April 1, 2013 and ending on December 31, 2013 does not exceed $26,000,000, and (ii) the period commencing on January 1, 2014 and ending on June 30, 2015 does not exceed an amount equal to the sum of (A) $24,000,000 plus (B) the difference of (1) $1,000,000 minus (2) the amount of Non-Equity-Funded Growth Capital Expenditures actually made in excess of $25,000,000 during the period commencing on April 1, 2013 and ending on December 31, 2013; provided, however, that the Borrower may make or commit to make (or permit any Subsidiary to make or commit to make) incremental Non-Equity-Funded Growth Capital Expenditures in excess of such amounts in either such period up to a maximum aggregate additional amount of $3,000,000 for each such period calculated separately solely to the extent that the Borrower causes the General Partner and/or Southcross Holdings to deposit funds in an aggregate dollar amount equal to the excess of (x) the aggregate amount of Non-Equity-Funded Capital Expenditures for such period over (y) the amount of Non-Equity-Funded Capital Expenditures permitted pursuant to clause (i) or (ii) above, as applicable (the aggregate dollar amount of all funds so deposited being referred to herein as the “Growth CapEx Collateral Amount”), into the GP Cash Collateral Account prior to the time that such excess Non-Equity-Funded Growth Capital Expenditures are made or committed to be made and, in any case, on or prior to the final Subsequent Equity Contribution Date (which Growth CapEx Collateral Amount shall be above and in addition to the amount on deposit in the GP Cash Collateral Account on such date and shall not be netted or credited against any other amounts required or permitted to be deposited or maintained in the GP Cash Collateral Account pursuant to Section 9.01(e)(ii), Section 9.23(c)(ii) or any other terms or conditions of this Agreement or any other Loan Document); and
(c)    Webb Project Growth Capital Expenditures, so long as each of the following conditions is satisfied:
(i)    prior to the Borrower initiating construction of the Webb Project:
(A)    Borrower shall have entered one or more enforceable minimum revenue contracts with a producer or producers approved by the Administrative Agent (such approval not to be unreasonably withheld) providing for aggregate minimum throughput volumes in the first 12 months of operation of the Webb Project of at least 40,000 MMBtu/d; and
(B)    the Borrower shall have expressly designated, in one or more written notices delivered to the Administrative Agent concurrently with any issuance of Equity Interests in the Borrower consummated after the Third Amendment Effective Date, net cash proceeds (other than Oscar Equity Proceeds and Subsequent Equity Proceeds) received by the Borrower from such issuances in a minimum aggregate amount of $60,000,000, for the sole purpose of funding Webb Project Growth Capital Expenditures (the initial $60,000,000 of any proceeds designated for such purpose, “Initial Webb Equity Proceeds”), which Initial Webb Equity Proceeds (A) shall not be designated by the Borrower for any other purpose, including, without limitation, for funding the Oscar Acquisition in accordance with Section 9.05(n)(iv), and (B) shall not satisfy, in whole or in part, Borrower’s obligation to consummate the Subsequent Equity Contribution pursuant to Section 8.20(b); and
(C)    100% of such Initial Webb Equity Proceeds shall have been applied as prepayments in accordance with Section 3.04(b)(iv)(C);
(ii)    the aggregate amount of Webb Project Growth Capital Expenditures made during the term of this Agreement (measured as of the date that each such Webb Project Growth Capital Expenditure is made) shall not exceed the aggregate dollar amount of prepayments made pursuant to Section 3.04(b)(iv)(C) on or prior to the date that such Webb Project Growth Capital Expenditure is made; provided that the Borrower may expressly designate, in one or more written notices delivered concurrently with any issuance of Equity Interests in the Borrower consummated after the Third Amendment Effective Date, net cash proceeds (other than Oscar Equity Proceeds and Subsequent Equity Proceeds) received by the Borrower from such issuances for the sole purpose of funding Webb Project Growth Capital Expenditures (any such proceeds in excess of $60,000,000 designated for such purpose, “Additional Webb Equity Proceeds” and collectively with Initial Webb Equity Proceeds, “Webb Equity Proceeds”), which Additional Webb Equity Proceeds (A) shall not be designated by the Borrower for any other purpose, including, without limitation, for funding the Oscar Acquisition in accordance with Section 9.05(n)(iv), and (B) shall not satisfy, in whole or in part, Borrower’s obligation to consummate the Subsequent Equity Contribution pursuant to Section 8.20(b); provided, further, that, subject to Section 9.23(c)(i)(B), the Borrower may make or commit to make (or permit any Subsidiary to make or commit to make) incremental Webb Project Growth Capital Expenditures in an aggregate dollar amount equal to the excess of (x) the aggregate amount of Webb Project Growth Capital Expenditures made or committed to be made on or after the Third Amendment Effective Date over (y) the aggregate amount of Webb Equity Proceeds applied as prepayments pursuant to Section 3.04(b)(iv)(C) on or after the Third Amendment Effective Date (such excess amount, the “Webb CapEx Collateral Amount”) to the extent that the Borrower causes the General Partner and/or Southcross Holdings to deposit funds in an aggregate amount (including amounts previously deposited pursuant to this proviso) not less than the Webb Capex Collateral Amount into (1) the GP Cash Collateral Account prior to the final Subsequent Equity Contribution Date or (2) the GP Cash Collateral Account or any other cash collateral account after the final Subsequent Equity Contribution Date and on or prior to November 30, 2014 if the GP Cash Collateral Account or such other account, as applicable, is subject to a first priority perfected security interest and control arrangements reasonably satisfactory to the Administrative Agent, and including terms providing for the release of such security and such funds within a reasonable time after such date as the Consolidated Total Leverage Ratio for the most recently ended Rolling Period is less than or equal to 4.50 to 1.00, and in any case prior to the time that such incremental Webb Project Growth Capital Expenditures are made or committed to be made (which Webb CapEx Collateral Amount shall be above and in addition to the amount otherwise on deposit in the GP Cash Collateral Account at such time and shall not be netted or credited against any other amounts required or permitted to be deposited or maintained in the GP Cash Collateral Account pursuant to Section 9.01(e)(ii), Section 9.23(b) or any other terms or conditions of this Agreement or any other Loan Document);
(iii)    concurrently with any issuance of Equity Interests in the Borrower the net cash proceeds of which are designated as Webb Equity Proceeds in accordance with clauses (c)(i)(B) or (c)(ii) of this Section, the Borrower shall have furnished the Administrative Agent with (A) written notice informing the Administrative Agent that such issuance has been completed and confirming the amount of net cash proceeds thereof that have been designated as Webb Equity Proceeds, (B) a certificate of a Financial Officer of the Borrower, in form and substance satisfactory to the Administrative Agent, certifying as to the aggregate amount of net cash proceeds received by or on behalf of the Borrower in connection with such issuance, (C) fully executed and assembled copies of the material agreements and documents governing such issuance, and (D) such other information, documents or agreements relating to such issuance as the Administrative Agent may reasonably request;
(iv)    no Default or Event of Default exists at the time of or would result from making any such Webb Project Growth Capital Expenditure; and
(v)    before and immediately after giving effect to any such Webb Project Growth Capital Expenditure, the Borrower shall be in pro forma compliance with the covenants set forth in Section 9.01 (calculated in a manner reasonably satisfactory to the Administrative Agent).
SECTION 2    Conditions Precedent.  This Amendment will be effective as of the date that each of the following conditions precedent has been satisfied (such date, the “Third Amendment Effective Date”):
2.1    Closing Deliveries.  Administrative Agent shall have received each of the following documents, instruments, and agreements, each of which shall be in form and substance and executed in such counterparts (if applicable) as shall be acceptable to Administrative Agent and each of which shall, unless otherwise indicated, be dated as of the Third Amendment Effective Date:
(a)    counterparts hereof duly executed by the Borrower and Consenting Lenders that are sufficient to constitute the Required Lenders and consent and agreement counterparts hereof duly executed by the other Loan Parties; 
(b)    a schedule of Capital Expenditure projects for the fiscal year ending December 31, 2013, which schedule shall compare amounts initially budgeted for such projects as of the First Amendment Effective Date against actual Capital Expenditures made or committed to be made, including any Capital Expenditures initially budgeted for the fiscal year ending December 31, 2014 that are intended to be accelerated into the fiscal year ended December 31, 2013; 
(c)    a budget of Capital Expenditure projects for the fiscal year ending December 31, 2014, and 
(d)    such other documents, instruments and certificates as the Administrative Agent or its counsel may reasonably request relating to the foregoing, the organization, existence and good standing of the General Partner and each of the Loan Parties, the authorization of this Amendment and the transactions contemplated hereby, and any other legal matters relating to the General Partner, the Loan Parties and this Amendment.
2.2    Fees and Expenses.  The Borrower shall have paid to the Administrative Agent all fees due and owing to the Administrative Agent or the Consenting Lenders in connection with this Amendment including, without limitation, all reasonable fees and expenses incurred by the Administrative Agent (including, without limitation, fees and expenses of counsel to the Administrative Agent) in the preparation, execution, review and negotiation of this Amendment and any other related documents for which the Borrower shall have been invoiced by the Administrative Agent on or before the Third Amendment Effective Date.  
2.3    Absence of Defaults.  No Default or Event of Default shall have occurred which is continuing.
2.4    Representations and Warranties.  Each representation and warranty contained in Section 3 hereof shall be true and correct in all material respects.
2.5    Other Documents.  The Administrative Agent shall have been provided with such documents, instruments, and agreements, and the Borrower and the other Loan Parties shall have taken such actions, in each case as the Administrative Agent may reasonably require in connection with this Amendment and the transactions contemplated hereby.
SECTION 3    Representations and Warranties.  In order to induce the Administrative Agent and the Lenders to enter into this Amendment, Borrower hereby represents and warrants to the Administrative Agent and each Lender that:
3.1    Accuracy of Representations and Warranties.  Each representation and warranty of each Loan Party contained in the Loan Documents is true and correct in all material respects as of the date hereof (except that (i) to the extent that any such representation and warranty is expressly limited to an earlier date, in which case, on the date hereof, such representation and warranty shall continue to be true and correct in all material respects as of such specified earlier date and (ii) to the extent that any such representations and warranties are qualified by materiality, such representations and warranties shall continue to be true and correct in all respects).
3.2    Due Authorization, No Conflicts.  The execution, delivery and performance by the Borrower of this Amendment are within the Borrower’s limited partnership powers, have been duly authorized by necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official (other than filings with the SEC required under applicable law) and do not violate or constitute a default under any provision of applicable law or any material agreement binding upon the Borrower or any of its Subsidiaries, or result in the creation or imposition of any Lien upon any of the assets of the Borrower or any of its Subsidiaries.
3.3    Validity and Binding Effect.  This Amendment constitutes the valid and binding obligations of the Borrower enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor’s rights generally, and subject to general principles of equity, regardless of whether considered in a proceeding in equity or law.
3.4    Absence of Defaults.  No Default or Event of Default has occurred which is continuing.
3.5    No Defense.  The Borrower has no defenses to (a) payment, counterclaims or rights of set-off with respect to the Secured Obligations on the date hereof or (b) the validity, enforceability or binding effect against the Borrower of the Credit Agreement or any of the other Loan Documents or any Liens intended to be created thereby.
3.6    Review and Construction of Documents.  The Borrower (%3) has had the opportunity to consult with legal counsel of its own choice and has been afforded an opportunity to review this Amendment with its legal counsel, (%3) has reviewed this Amendment and fully understands the effects thereof and all terms and provisions contained in this Amendment, and (%3) has executed this Amendment of its own free will and volition.  Furthermore, the Borrower acknowledges that (%4) this Amendment shall be construed as if jointly drafted by the Borrower and the Lenders, and (%4) the recitals contained in this Amendment shall be construed to be part of the operative terms and provisions of this Amendment.
SECTION 4    Miscellaneous.
4.1    Reaffirmation of Loan Documents; Extension of Liens.  Any and all of the terms and provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in full force and effect.  The Borrower hereby extends the Liens securing the Secured Obligations until the Secured Obligations have been paid in full, and agrees that the amendments and modifications herein contained shall in no manner affect or impair the Secured Obligations or the Liens securing payment and performance thereof.
4.2    Parties in Interest.  All of the terms and provisions of this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.
4.3    Counterparts.  This Amendment may be executed in counterparts, and all parties need not execute the same counterpart; however, no party shall be bound by this Amendment until this Amendment has been executed by the Borrower and the Required Lenders, and the consent and agreement counterparts have been executed by the other Loan Parties, at which time this Amendment shall be binding on, enforceable against and inure to the benefit of the Borrower and all Lenders.  Facsimiles or other electronic copies (e.g., .pdf) shall be effective as originals.
4.4    COMPLETE AGREEMENT.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
4.5    Headings.  The headings, captions and arrangements used in this Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Amendment, nor affect the meaning thereof.
4.6    No Implied Waivers.  No failure or delay on the part of the Administrative Agent or the Lenders in exercising, and no course of dealing with respect to, any right, power or privilege under this Amendment, the Credit Agreement or any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under this Amendment, the Credit Agreement or any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
4.7    Arms-Length/Good Faith.  This Amendment has been negotiated at arms-length and in good faith by the parties hereto.
4.8    Interpretation.  Wherever the context hereof shall so require, the singular shall include the plural, the masculine gender shall include the feminine gender and the neuter and vice versa.  The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
4.9    Severability.  In case any one or more of the provisions contained in this Amendment shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Amendment shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.
4.10    Loan Documents.  The Loan Parties acknowledge and agree that this Amendment is a Loan Document.  
4.11    Further Assurances.  The Borrower agrees to execute, acknowledge, deliver, file and record such further certificates, instruments and documents, and to do all other acts and things, as may be requested by the Lenders as necessary or advisable to carry out the intents and purposes of this Amendment.
4.12    Governing Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF TEXAS.
[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers on the date and year first above written.

		
	THE BORROWER:
	SOUTHCROSS ENERGY PARTNERS, L.P.

		
	By:
	Southcross Energy Partners GP, LLC, 
its general partner

By: /s/ David W. Biegler
David W. Biegler 
Chairman and Chief Executive Officer

The undersigned (i) consent and agree to this Amendment, and (ii) agree that the Loan Documents to which it is a party (including, without limitation, the Second Amended and Restated Guaranty and Collateral Agreement dated as of November 7, 2012, as applicable) shall remain in full force and effect and shall continue to be the legal, valid and binding obligation of the undersigned, enforceable against it in accordance with its terms.
CONSENTED, ACKNOWLEDGED AND AGREED TO BY:

SOUTHCROSS ENERGY OPERATING, LLC
SOUTHCROSS ENERGY LP LLC
SOUTHCROSS ENERGY GP LLC
SOUTHCROSS DELTA PIPELINE LLC
SOUTHCROSS PROCESSING LLC 
SOUTHCROSS ALABAMA PIPELINE LLC

By:    /s/ David W. Biegler
David W. Biegler
Chairman and Chief Executive Officer

SOUTHCROSS CCNG GATHERING LTD.
SOUTHCROSS CCNG TRANSMISSION LTD.
SOUTHCROSS GULF COAST TRANSMISSION 
LTD.
SOUTHCROSS MISSISSIPPI PIPELINE, L.P.
SOUTHCROSS MISSISSIPPI GATHERING, L.P.
SOUTHCROSS ALABAMA GATHERING 
SYSTEM, L.P.
SOUTHCROSS MIDSTREAM SERVICES, L.P.
SOUTHCROSS MARKETING COMPANY LTD.
SOUTHCROSS NGL PIPELINE LTD.
SOUTHCROSS GATHERING LTD.
SOUTHCROSS MISSISSIPPI INDUSTRIAL 
GAS SALES, L.P.
    
By:    Southcross Energy GP LLC,
as general partner

By:    /s/ David W. Biegler
David W. Biegler
Chairman and Chief Executive Officer

THE ADMINISTRATIVE AGENT 
		
	AND A LENDER:
	WELLS FARGO BANK, N.A., as the Administrative Agent and a Lender 

By: /s/ Andrew Ostrov
Andrew Ostrov
Director

		
	LENDER:
	CITIBANK, N.A., as a Lender

By:    /s/ Thomas Benavides
Name:      Thomas Benavides
Title:  Senior Vice President

		
	LENDER:
	SUNTRUST BANK, as a Lender 

By:  
Name:     
Title:  

		
	LENDER:
	BARCLAYS BANK PLC, as a Lender 

By:  
Name:     
Title:  

		
	LENDER:
	JPMORGAN CHASE BANK, N.A.,  
as a Lender 

By:  
Name:     
Title:  

		
	LENDER:
	COMPASS BANK,  
as a Lender 

By:    /s/ Umar Hassan
Name:      Umar Hassan
Title:  Vice President

		
	LENDER:
	AMEGY BANK NATIONAL ASSOCIATION, as a Lender 

By:    /s/ Jill McSorley
Name:      Jill MCSorley
Title:  Senior Vice President

		
	LENDER:
	ROYAL BANK OF CANADA, as a Lender 

By:    /s/ Jay T. Sartain
Name:      Jay T. Sartain
Title:  Authorized Signatory

		
	LENDER:
	COMERICA BANK, as a Lender 

By:  
Name:     
Title:  

		
	LENDER:
	MIDFIRST BANK, as a Lender 

By:  
Name:     
Title:  

		
	LENDER:
	RAYMOND JAMES BANK, N.A., as a Lender 

By:    /s/ Mark Moody
Name:      Mark Moody
Title:  Executive Vice President

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