Document:

Unassociated Document

     

    EXECUTION
COPY

    

    GUARANTY

     

    GUARANTY,
dated as of July 16, 2010 made by each of the undersigned (each a "Guarantor", and collectively,
the "Guarantors"), in
favor of the "Buyers" (as defined below) party to the Securities Purchase
Agreement referenced below.

     

    WITNESSETH :

     

    WHEREAS,
SouthPeak Interactive Corporation, a Delaware corporation (the "Company"), and each party
listed as a "Buyer" on the Schedule of Buyers attached to the Securities
Purchase Agreement (each a "Buyer", and collectively, the
"Buyers") are parties to
that certain Securities Purchase Agreement, dated as of July 16, 2010 (the
"Securities Purchase
Agreement") pursuant to which, among other things, the Buyers purchased
from the Company certain senior secured convertible notes (the "Notes");

     

    WHEREAS,
the Buyers have requested, and the Guarantors have agreed, that the Guarantors
shall execute and deliver to the Buyers, a guaranty guaranteeing all of the
obligations of the Company under the Securities Purchase Agreement, the Notes
and the other "Transaction Documents" (as defined in the Securities Purchase
Agreement, the "Transaction
Documents");

     

    WHEREAS,
pursuant to a Pledge and Security Agreement, dated as of the date hereof (the
"Security Agreement"),
the Company and the Guarantors have granted to CNH Diversified Opportunities
Master Account, L.P., as collateral agent for the Buyers (in such capacity, the
"Collateral Agent"), a
security interest in and lien on their assets to secure their respective
obligations under this Guaranty, the Securities Purchase Agreement, the Notes
and the other Transaction Documents; and

     

    WHEREAS,
each Guarantor has determined that the execution, delivery and performance of
this Guaranty directly benefits, and is in the best interest of, such
Guarantor;

     

    NOW,
THEREFORE, in consideration of the premises and the agreements herein and for
other consideration, the sufficiency of which is hereby acknowledged, each
Guarantor hereby agrees with each Buyer as follows:

     

    SECTION
1.     Definitions.  Reference
is hereby made to the Securities Purchase Agreement and the Notes for a
statement of the terms thereof.  All terms used in this Guaranty,
which are defined in the Securities Purchase Agreement or the Notes and not
otherwise defined herein, shall have the same meanings herein as set forth
therein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
2.     Guaranty.  The
Guarantors, jointly and severally, hereby unconditionally and irrevocably,
guaranty (a) the punctual payment, as and when due and payable, by stated
maturity or otherwise, of all obligations and any other amounts now or hereafter
owing by the Company in respect of it in respect of the Securities Purchase
Agreement, the Notes and the other Transaction Documents, including, without
limitation, all interest that accrues after the commencement of any proceeding
commenced by or against any the Company or any Guarantor under any provision of
the Bankruptcy Code (Chapter 11 of Title 11 of the United States Code) or
under any other bankruptcy or insolvency law, assignments for the benefit of
creditors, formal or informal moratoria, compositions, or extensions generally
with creditors, or proceedings seeking reorganization, arrangement, or other
similar relief (an "Insolvency
Proceeding"), whether or not the payment of such interest is
unenforceable or is not allowable due to the existence of such Insolvency
Proceeding, and all fees, commissions, expense reimbursements, indemnifications
and all other amounts due or to become due under any of the Transaction
Documents, and any and all expenses (including reasonable counsel fees and
expenses) reasonably incurred by the Buyers or the Collateral Agent in enforcing
any rights under this Guaranty (such obligations, to the extent not paid by the
Company, being the "Guaranteed
Obligations") and (b) the punctual and faithful performance, keeping,
observance and fulfillment by the Company of all of the agreements, conditions,
covenants and obligations of the Company contained in the Securities Purchase
Agreement, the Notes and the other Transaction Documents.  Without
limiting the generality of the foregoing, each Guarantor's liability hereunder
shall extend to all amounts that constitute part of the Guaranteed Obligations
and would be owed by the Company to the Buyers under the Securities Purchase
Agreement and the Notes but for the fact that they are unenforceable or not
allowable due to the existence of an Insolvency Proceeding involving any
Guarantor or the Company (each, a "Transaction
Party").

     

    SECTION
3.     Guaranty Absolute;
Continuing Guaranty; Assignments.

     

    (a)           The
Guarantors, jointly and severally, guaranty that the Guaranteed Obligations will
be paid strictly in accordance with the terms of the Transaction Documents,
regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of the Buyers with
respect thereto.  The obligations of each Guarantor under this
Guaranty are independent of the Guaranteed Obligations, and a separate action or
actions may be brought and prosecuted against any Guarantor to enforce such
obligations, irrespective of whether any action is brought against any
Transaction Party or whether any Transaction Party is joined in any such action
or actions.  The liability of any Guarantor under this Guaranty shall
be irrevocable, absolute and unconditional irrespective of, and each Guarantor
hereby irrevocably waives, to the extent permitted by law, any defenses it may
now or hereafter have in any way relating to, any or all of the
following:

     

    (i)       any
lack of validity or enforceability of any Transaction Document or any agreement
or instrument relating thereto;

     

    (ii)      any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Guaranteed Obligations, or any other amendment or waiver of or any
consent to departure from any Transaction Document, including, without
limitation, any increase in the Guaranteed Obligations resulting from the
extension of additional credit to any Transaction Party or
otherwise;

     

    (iii)     any
taking, exchange, release or non-perfection of any collateral with respect to
the Guaranteed Obligations, or any taking, release or amendment or waiver of or
consent to departure from any other guaranty, for all or any of the Guaranteed
Obligations; or

     

    (iv)     any
change, restructuring or termination of the corporate, limited liability company
or partnership structure or existence of any Transaction Party.

     

    
      
         

      

      
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    This
Guaranty shall continue to be effective or be reinstated, as the case may be, if
at any time any payment of any of the Guaranteed Obligations is rescinded or
must otherwise be returned by any Buyer or any other Person upon the insolvency,
bankruptcy or reorganization of any Transaction Party or otherwise, all as
though such payment had not been made.

     

    (b)           This
Guaranty is a continuing guaranty and shall (i) remain in full force and effect
until the complete conversion of all of the Company's obligations under the
Notes to equity securities of the Company and/or indefeasible payment in full in
cash of all obligations under the Notes (together with any matured
indemnification obligations as of the date of such conversion and/or payment,
but excluding any inchoate or unmatured contingent indemnification obligations)
and payment of all other amounts payable under this Guaranty (excluding any
inchoate or unmatured contingent indemnification obligations) and (ii) be
binding upon each Guarantor and its respective successors and
assigns.  This Guaranty shall inure to the benefit of and be
enforceable by the Buyers and their respective successors, and permitted
pledgees, transferees and assigns.  Without limiting the generality of
the foregoing sentence, any Buyer may pledge, assign or otherwise transfer all
or any portion of its rights and obligations under and subject to the terms of
any Transaction Document to any other Person, and such other Person shall
thereupon become vested with all the benefits in respect thereof granted to such
Buyer herein or otherwise, in each case as provided in the Securities Purchase
Agreement or such Transaction Document.  Notwithstanding the foregoing
and for the avoidance of doubt, this Guaranty will expire and each Guarantor
will be released from its obligation hereunder upon the complete conversion of
all of the Company's obligations under the Notes to equity securities of the
Company and/or indefeasible payment in full in cash of all obligations under the
Notes (together with any matured indemnification obligations as of the date of
such conversion and/or payment, but excluding any inchoate or unmatured
contingent indemnification obligations) and payment of all other amounts payable
under this Guaranty (excluding any inchoate or unmatured contingent
indemnification obligations).

     

    SECTION
4.     Waivers.  To
the extent permitted by applicable law, each Guarantor hereby waives promptness,
diligence, notice of acceptance and any other notice with respect to any of the
Guaranteed Obligations and this Guaranty and any requirement that the Buyers or
the Collateral Agent exhaust any right or take any action against any
Transaction Party or any other Person or any Collateral (as defined in the
Security Agreement).  Each Guarantor acknowledges that it will receive
direct and indirect benefits from the financing arrangements contemplated herein
and that the waiver set forth in this Section 4 is
knowingly made in contemplation of such benefits.  The Guarantors
hereby waive any right to revoke this Guaranty, and acknowledge that this
Guaranty is continuing in nature and applies to all Guaranteed Obligations,
whether existing now or in the future.

     

    
      
         

      

      
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    SECTION
5.     Subrogation.  No
Guarantor may exercise any rights that it may now or hereafter acquire against
any Transaction Party or any other guarantor that arise from the existence,
payment, performance or enforcement of any Guarantor's obligations under this
Guaranty, including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of the Buyers or the Collateral Agent against
any Transaction Party or any other guarantor or any Collateral (as defined in
the Security Agreement), whether or not such claim, remedy or right arises in
equity or under contract, statute or common law, including, without limitation,
the right to take or receive from any Transaction Party or any other guarantor,
directly or indirectly, in cash or other property or by set-off or in any other
manner, payment or security solely on account of such claim, remedy or right,
unless and until the complete conversion of all of the Company's obligations
under the Notes to equity securities of the Company and/or indefeasible payment
in full in cash of all obligations under the Notes (together with any matured
indemnification obligations as of the date of such conversion and/or payment,
but excluding any inchoate or unmatured contingent indemnification obligations)
and payment of all other amounts payable under this Guaranty (excluding any
inchoate or unmatured contingent indemnification obligations).  If any
amount shall be paid to a Guarantor in violation of the immediately preceding
sentence at any time prior to the later of the payment in full in cash of the
Guaranteed Obligations and all other amounts payable under this Guaranty, such
amount shall be held in trust for the benefit of the Buyers and shall forthwith
be paid ratably to the Buyers to be credited and applied to the Guaranteed
Obligations and all other amounts payable under this Guaranty, whether matured
or unmatured, in accordance with the terms of the Transaction Document, or to be
held as collateral for any Guaranteed Obligations or other amounts payable under
this Guaranty thereafter arising.  If (a) any Guarantor shall
make payment to the Buyers of all or any part of the Guaranteed Obligations, and
(b) the Buyers receive the complete conversion of all of the Company's
obligations under the Notes to equity securities of the Company and/or
indefeasible payment in full in cash of all obligations under the Notes
(together with any matured indemnification obligations as of the date of such
conversion and/or payment, but excluding any inchoate or unmatured contingent
indemnification obligations) and payment of all other amounts payable under this
Guaranty (excluding any inchoate or unmatured contingent indemnification
obligations), the Buyers will, at such Guarantor's request and expense, execute
and deliver to such Guarantor appropriate documents, without recourse and
without representation or warranty, necessary to evidence the transfer by
subrogation to such Guarantor of an interest in the Guaranteed Obligations
resulting from such payment by such Guarantor.

     

    SECTION
6.     Representations, Warranties
and Covenants.

     

    (a)           Each
Guarantor hereby represents and warrants as of the date first written above as
follows:

     

    (i)       Each
Guarantor (A) is a corporation, limited liability company or limited partnership
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization as set forth on the signature pages hereto, (B)
has all requisite corporate, limited liability company or limited partnership
power and authority to conduct its business as now conducted and as presently
contemplated and to execute and deliver this Guaranty and each other Transaction
Document to which the Guarantor is a party, and to consummate the transactions
contemplated hereby and thereby and (C) is duly qualified to do business and is
in good standing in each jurisdiction in which the character of the properties
owned or leased by it or in which the transaction of its business makes such
qualification necessary except where the failure to be so qualified would not
result in a Material Adverse Effect.

     

    
      
         

      

      
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    (ii)      The
execution, delivery and performance by each Guarantor of this Guaranty and each
other Transaction Document to which such Guarantor is a party (A) have been duly
authorized by all necessary corporate, limited liability company or limited
partnership action, (B) do not and will not contravene its charter or by-laws,
its limited liability company or operating agreement or its certificate of
partnership or partnership agreement, as applicable, or any applicable law or
any contractual restriction binding on the Guarantor or its properties do not
and will not result in or require the creation of any lien (other than pursuant
to any Transaction Document) upon or with respect to any of its properties, and
(C) do not and will not result in any default, noncompliance, suspension,
revocation, impairment, forfeiture or nonrenewal of any material permit,
license, authorization or approval applicable to it or its operations or any of
its properties.

     

    (iii)     No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority is required in connection with the due execution,
delivery and performance by the Guarantor of this Guaranty or any of the other
Transaction Documents to which the Guarantor is a party (other than expressly
provided for in any of the Transaction Documents).

     

    (iv)     Each
of this Guaranty and the other Transaction Documents to which the Guarantor is
or will be a party, when delivered, will be, a legal, valid and binding
obligation of the Guarantor, enforceable against the Guarantor in accordance
with its terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, suretyship or other similar
laws and equitable principles (regardless of whether enforcement is sought in
equity or at law).

     

    (v)      There
is no pending or, to the best knowledge of the Guarantor, threatened action,
suit or proceeding against the Guarantor or to which any of the properties of
the Guarantor is subject, before any court or other governmental authority or
any arbitrator that (A) if adversely determined, could reasonably be
expected to have a Material Adverse Effect or (B) relates to this Guaranty
or any of the other Transaction Documents to which the Guarantor is a party or
any transaction contemplated hereby or thereby.

     

    (vi)     The
Guarantor (A) has read and understands the terms and conditions of the
Securities Purchase Agreement and the other Transaction Documents, and
(B) now has and will continue to have independent means of obtaining
information concerning the affairs, financial condition and business of the
Company and the other Transaction Parties, and has no need of, or right to
obtain from the Collateral Agent or any Buyer, any credit or other information
concerning the affairs, financial condition or business of the Company or the
other Transaction Parties that may come under the control of the Collateral
Agent or any Buyer.

     

    (b)           The
Guarantor covenants and agrees that until the complete conversion of all of the
Company's obligations under the Notes to equity securities of the Company and/or
indefeasible payment in full in cash of all obligations under the Notes
(together with any matured indemnification obligations as of the date of such
conversion and/or payment, but excluding any inchoate or unmatured contingent
indemnification obligations) and payment of all other amounts payable under this
Guaranty (excluding any inchoate or unmatured contingent indemnification
obligations), it will comply with each of the covenants (except to the extent
applicable only to a public company) which are set forth in subsections (b),
(c), (d), (g), (h), (i), (j), (k), (n) and (r) of Section 4 of the
Securities Purchase Agreement as if the Guarantor were a party
thereto.

     

    
      
         

      

      
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    SECTION
7.     Right of
Set-off.  Upon the occurrence and during the continuance
of any Event of Default, the Collateral Agent and any Buyer may, and is hereby
authorized to, at any time and from time to time, without notice to the
Guarantors (any such notice being expressly waived by each Guarantor) and to the
fullest extent permitted by law, set-off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by any Buyer to or for the credit or the account
of any Guarantor against any and all obligations of the Guarantors now or
hereafter existing under this Guaranty or any other Transaction Document,
irrespective of whether or not Collateral Agent or any Buyer shall have made any
demand under this Guaranty or any other Transaction Document and although such
obligations may be contingent or unmatured.  Collateral Agent and each
Buyer agrees to notify the relevant Guarantor promptly after any such set-off
and application made by such Buyer, provided that the failure to give such
notice shall not affect the validity of such set-off and
application.  The rights of the Collateral Agent or any Buyer under
this Section 7 are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Collateral Agent or such Buyer may have under this
Guaranty or any other Transaction Document in law or otherwise.

     

    SECTION
8.     Notices,
Etc.  All notices and other communications provided for
hereunder shall be in writing and shall be mailed (by overnight mail or by
certified mail, postage prepaid and return receipt requested), telecopied or
delivered, if to any Guarantor, to the address for such Guarantor set forth on
the signature page hereto, or if to any Buyer, to it at its respective address
set forth in the Securities Purchase Agreement; or as to any Person at such
other address as shall be designated by such Person in a written notice to such
other Person complying as to delivery with the terms of this Section 8.  All
such notices and other communications shall be effective (i) if mailed (by
certified mail, postage prepaid and return receipt requested), when received or
three Business Days after deposited in the mails, whichever occurs first; (ii)
if telecopied, when transmitted and confirmation is received, provided same is
on a Business Day and, if not, on the next Business Day; or (iii) if delivered
by hand, upon delivery, provided same is on a Business Day and, if not, on the
next Business Day.

     

    SECTION
9.     CONSENT TO JURISDICTION;
SERVICE OF PROCESS AND VENUE.  ANY LEGAL ACTION OR PROCEEDING
WITH RESPECT TO THIS GUARANTY OR ANY OTHER TRANSACTION DOCUMENT MAY BE BROUGHT
IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR OF THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH GUARANTOR HEREBY IRREVOCABLY
ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS.  NOTHING HEREIN SHALL AFFECT THE
RIGHT OF THE BUYERS TO SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST EACH GUARANTOR IN
ANY OTHER JURISDICTION.  ANY GUARANTOR HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY
SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  TO THE
EXTENT THAT ANY GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR
NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR
OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH GUARANTOR HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
GUARANTY AND THE OTHER TRANSACTION DOCUMENTS.

     

    
      
         

      

      
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    SECTION
10.     WAIVER OF JURY TRIAL,
ETC.  EACH GUARANTOR HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS
GUARANTY OR THE OTHER TRANSACTION DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER,
CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE
FUTURE MAY BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR ARISING FROM ANY
FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS GUARANTY OR THE OTHER
TRANSACTION DOCUMENTS, AND AGREES THAT ANY SUCH ACTION, PROCEEDING OR
COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
JURY.  EACH GUARANTOR CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY BUYER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY BUYER
WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO
ENFORCE THE FOREGOING WAIVERS.  EACH GUARANTOR HEREBY ACKNOWLEDGES
THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BUYERS ENTERING INTO THE
OTHER TRANSACTION DOCUMENTS.

     

    SECTION
11.     Taxes.

     

    (a)           All
payments made by any Guarantor hereunder or under any other Transaction Document
shall be made in accordance with the terms of the respective Transaction
Document and shall be made without set-off, counterclaim, deduction or other
defense.  All such payments shall be made free and clear of and
without deduction for any present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding taxes
imposed on the net income of any Buyer by the jurisdiction in which such Buyer
is organized or where it has its principal lending office (all such nonexcluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities,
collectively or individually, "Taxes").  If any
Guarantor shall be required to deduct or to withhold any Taxes from or in
respect of any amount payable hereunder or under any other Transaction
Document:

     

    (i)         the
amount so payable shall be increased to the extent necessary so that after
making all required deductions and withholdings (including Taxes on amounts
payable to any Buyer pursuant to this sentence) each Buyer receives an amount
equal to the sum it would have received had no such deduction or withholding
been made,

     

    (ii)        such
Guarantor shall make such deduction or withholding,

     

    
      
         

      

      
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    (iii)       such
Guarantor shall pay the full amount deducted or withheld to the relevant
taxation authority in accordance with applicable law, and

     

    (iv)       as
promptly as possible thereafter, such Guarantor shall send the Buyers an
official receipt (or, if an official receipt is not available, such other
documentation as shall be satisfactory to the Buyers, as the case may be)
showing payment.  In addition, each Guarantor agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar levies that arise from any payment made hereunder or from the
execution, delivery, registration or enforcement of, or otherwise with respect
to, this Agreement or any other Transaction Document (collectively, "Other Taxes").

     

    (b)           Each
Guarantor hereby indemnifies and agrees to hold the Collateral Agent and each
Buyer (each an "Indemnified Party") harmless
from and against Taxes or Other Taxes (including, without limitation, any Taxes
or Other Taxes imposed by any jurisdiction on amounts payable under this Section 11) paid
by any Indemnified Party  as a result of any payment made hereunder or from
the execution, delivery, registration or enforcement of, or otherwise with
respect to, this Agreement or any other Transaction Document, and any liability
(including penalties, interest and expenses for nonpayment, late payment or
otherwise) arising therefrom or with respect thereto, whether or not such Taxes
or Other Taxes were correctly or legally asserted.  This indemnification
shall be paid within 30 days from the date on which such Buyer makes written
demand therefor, which demand shall identify the nature and amount of such Taxes
or Other Taxes.

     

    (c)           If
any Guarantor fails to perform any of its obligations under this Section 11, such
Guarantor shall indemnify the Collateral Agent and each Buyer for any taxes,
interest or penalties that may become payable as a result of any such
failure.  The obligations of the Guarantors under this Section 11 shall
survive the termination of this Guaranty and the payment of the Obligations and
all other amounts payable hereunder.

     

    SECTION
12.     Miscellaneous.

     

    (a)           Each
Guarantor will make each payment hereunder in lawful money of the United States
of America and in immediately available funds to each Buyer, at such address
specified by such Buyer from time to time by notice to the
Guarantors.

     

    (b)           No
amendment or waiver of any provision of this Guaranty and no consent to any
departure by any Guarantor therefrom shall in any event be effective unless the
same shall be in writing and signed by each Guarantor and each Buyer, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

     

    (c)           No
failure on the part of the Collateral Agent or any Buyer to exercise, and no
delay in exercising, any right hereunder or under any other Transaction Document
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right hereunder or under any Transaction Document preclude any other or
further exercise thereof or the exercise of any other right.  The
rights and remedies of the Collateral Agent and the Buyers provided herein and
in the other Transaction Documents are cumulative and are in addition to, and
not exclusive of, any rights or remedies provided by law.  The rights
of the Collateral Agent and the Buyers under any Transaction Document against
any party thereto are not conditional or contingent on any attempt by the
Collateral Agent or any Buyer to exercise any of their respective rights under
any other Transaction Document against such party or against any other
Person.

     

    
      
         

      

      
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    (d)           Any
provision of this Guaranty that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or affecting the validity or enforceability of such provision in any
other jurisdiction.

     

    (e)           This
Guaranty shall (i) be binding on each Guarantor and its respective successors
and assigns, and (ii) inure, together with all rights and remedies of the
Collateral Agent and the Buyers hereunder, to the benefit of the Collateral
Agent and the Buyers and their respective successors, transferees and
assigns.  Without limiting the generality of clause (ii) of the
immediately preceding sentence, the Collateral Agent and any Buyer may assign or
otherwise transfer its rights and obligations under the Securities Purchase
Agreement or any other Transaction Document to any other Person in accordance
with the terms thereof, and such other Person shall thereupon become vested with
all of the benefits in respect thereof granted to the Collateral Agent or such
Buyer, as the case may be, herein or otherwise.  None of the rights or
obligations of any Guarantor hereunder may be assigned or otherwise transferred
without the prior written consent of each Buyer.

     

    (f)           This
Guaranty reflects the entire understanding of the transaction contemplated
hereby and shall not be contradicted or qualified by any other agreement, oral
or written, entered into before the date hereof.

     

    (g)           Section
headings herein are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

     

    (h)           THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED THEREIN
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

     

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    IN
WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed by its
respective duly authorized officer, as of the date first above
written.

     

    
      
        
          	
                  SOUTHPEAK INTERACTIVE,
      L.L.C, a 

                
	Virginia
      limited liability company 
	 
      
	
                  By:

                	 
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

    

    
      
        
          
            
              	
                      Address
      for Notices:

                    
	
                       

                    
	
                       

                    
	
                       

                    
	
                      Facsimile:

                    	
                           

                    

            

          

        

      

    

    

    
      
        
          	
                  SOUTHPEAK INTERACTIVE,
      LIMITED, a 

                
	United
      Kingdom corporation
	 
      
	
                  By:

                	
                    

                
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

    

    
      
        
          
            
              
                	
                        Address
      for Notices:

                      
	
                         

                      
	
                         

                      
	
                         

                      
	
                        Facsimile:

                      	
                                

                      

              

            

          

        

      

    

     

    SouthPeak Guaranty

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          IN WITNESS WHEREOF, each Grantor has
caused this Guaranty to be executed by its respective duly authorized officer,
as of the date first above written.

          

          
            
              
                	
                        SOUTHPEAK
      INTERACTIVE, L.L.C.,

                      
	
                        a
      Virginia limited liability company

                      
	 
      
	 
          	
                        By:  

                      	
                        SOUTHPEAK
      INTERACTIVE CORPORATION,

                      
	 
      	 
      	
                        its
      sole Member

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                        /s/Reba McDermott

                      
	 
      	 
      	 
      	
                        Name:

                      	
                        Reba
      McDermott

                      
	 
      	 
      	 
      	
                        Title:

                      	
                        Chief
      Financial Officer

                      
	 
      	 
      	 
      	 
      	 
      
	
                        VID
      SUB, LLC,

                      
	
                        a
      Delaware limited liability company

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        SOUTHPEAK
      INTERACTIVE CORPORATION,

                      
	 
      	 
      	
                        its
      sole Member

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                         

                      	
                        By:

                      	
                        /s/Reba McDermott

                      
	 
      	 
      	 
      	
                        Name:  

                      	
                        Reba
      McDermott

                      
	 
      	 
      	 
      	
                        Title:

                      	
                        Chief
      Financial Officer

                      
	 
      	 
      	 
      	 
      	 
      
	
                        IRP
  GmbH,

                      
	
                        a
      Swiss company

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        SOUTHPEAK
      INTERACTIVE CORPORATION,

                      
	 
      	 
      	
                        its
      sole shareholder

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                         

                      	
                        By:

                      	
                        /s/Reba McDermott

                      
	 
      	 
      	 
      	
                        Name:

                      	
                        Reba
      McDermott

                      
	 
      	 
      	 
      	
                        Title:

                      	
                        Chief
      Financial Officer

                      

              

            

          

             

          SouthPeak
Guaranty

        

             

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  GONE OFF DEEP,
      LLC,

                
	
                  a
      Delaware limited liability company

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  VID
      SUB,LLC, its sole Member

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  SOUTHPEAK
      INTERACTIVE

                
	 
      	 
      	 
      	
                  CORPORATION,
      its sole Member

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                   

                	
                  By:

                	
                  /s/Reba McDermott

                
	 
      	 
      	 
      	
                  Name:  

                	
                  Reba
      McDermott

                
	 
      	 
      	 
      	
                  Title:

                	
                  Chief
      Financial Officer

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  SOUTHPEAK INTERACTIVE
      LIMITED,

                
	
                  a
      UK company

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  By:  

                	
                  SOUTHPEAK
      INTERACTIVE, L.L.C., its sole

                
	 
      	
                  stockholder

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  SOUTHPEAK
      INTERACTIVE

                
	 
      	 
      	
                  CORPORATION,
      its sole Member

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                   

                	
                  By:

                	
                  /s/Reba McDermott

                
	 
      	 
      	 
      	
                  Name:

                	
                  Reba
      McDermott

                
	 
      	 
      	 
      	
                  Title:

                	
                  Chief
      Financial Officer

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  GAMECOCK MEDIA EUROPE
      LIMITED,

                
	
                  a
      UK company

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  By:  

                	
                  GONE
      OFF DEEP, LLC, its sole stockholder

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:  

                	
                  VID
      SUB, LLC, its sole Member

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                  By:  

                	
                  SOUTHPEAK
      INTERACTIVE

                
	 
      	 
      	 
      	 
      	
                  CORPORATION,
      its sole Member

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                   

                	
                  By:

                	
                  /s/Reba McDermott

                
	 
      	 
      	 
      	 
      	 
      	
                  Name:  

                	
                  Reba
      McDermott

                
	 
      	 
      	 
      	 
      	 
      	
                  Title:

                	
                  Chief
      Financial Officer

                

        

      

      

      SouthPeak
GuarantyTHE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A
REGISTRATION STATEMENT IN EFFECT WITH RESPECT THERETO UNDER THE ACT AND
APPLICABLE LAWS OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT
AND APPLICABLE LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED.

    

    
      
        	
                Certificate
      No.  2010-05

              	
                Warrant
      to Purchase up to 500,000  Shares of

              
	
                Dated:
      February 11, 2010

              	
                Common
      Stock (subject to adjustment)

              

      

    

    

    WARRANT
TO PURCHASE COMMON STOCK

    of

    GLEN
ROSE PETROLEUM CORPORATION

    

    This
certifies that, for value received, DK True Energy Development Ltd., a Cyprus
corporation, or its registered assigns (the “Holder”) is entitled,
subject to the terms set forth below, to purchase from Glen Rose Petroleum
Corporation, a Delaware corporation (the “Company”), up to five
hundred thousand (500,000) shares of its common stock, par value $0.001 per
share (the “Common
Stock” and in aggregate “Common Shares”), as constituted on the date
hereof (the “Warrant
Issue Date”), upon surrender hereof, at the principal office of the
Company referred to below, with the Notice of Exercise form annexed hereto duly
executed, and simultaneous payment therefor in lawful money of the United States
or otherwise as hereinafter provided, at the Exercise Price set forth in Section
2 below. The number and character of such shares of Common Stock and the
Exercise Price are subject to adjustment as provided herein. The term “Warrant” as used
herein shall include this Warrant and any warrants delivered in substitution or
exchange therefor as provided herein. This Warrant is being issued pursuant to
the Warrant Grant and Compensation Agreement dated February 11, 2010, by and
between the Company and DK True Exploration Ltd.

    

    1.           Term of Warrant. Subject to
the terms and conditions set forth herein, this Warrant shall be exercisable, in
whole or in part, during the term commencing on the Warrant Issue Date and
ending at 5:00 p.m., Eastern Standard Time, on February 11, 2013 (the “Term”), and shall be
void thereafter.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      1 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    2.           Exercise Price. The exercise
price at which this Warrant may be exercised shall be $0.75 per share of Common
Stock (the “Exercise
Price”), as such Exercise Price may be adjusted from time to time
pursuant to Section 12 hereof.

    

    3.           Number of
Warrants.  The warrants shall be exercisable for any amount as
follows:

     

    a.           up
to and including 500,000 Common Shares of the Company.  The Warrant
Issue Date shall be the date upon which any such warrant is issued.

    

    4.           Vesting and Exercise of
Warrant.

    

    (a)        
     Exercise of
Warrant.

    

    (i)           Method of Exercise. The
purchase rights represented by this Warrant are exercisable by the Holder in
whole or in part, at any time, or from time to time, during the Term, by the
surrender of this Warrant and the Notice of Exercise annexed hereto duly
completed and executed on behalf of the Holder, at the principal office of the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the Holder at the address of the Holder appearing on the
books of the Company), upon payment in cash by wire transfer or by check
acceptable to the Company of the purchase price of the shares to be
purchased.

    

    (ii)          Net Issue Exercise.
Notwithstanding any provisions herein to the contrary, if the fair market
value of one share of Common Stock is greater than the Exercise Price (at the
date of calculation as set forth below), in lieu of exercising this Warrant for
cash, the Holder may elect to receive shares equal to the value (as determined
below) of this Warrant (or the portion thereof being canceled) by surrender of
this Warrant at the principal office of the Company together with the properly
endorsed Notice of Exercise and notice of such election, in which event the
Company shall issue to the Holder a number of shares of Common Stock computed
using the following formula:

    

    
      
        
          	
                  X
      = 

                	
                    Y (A-B) 

                	 
      
	
                        
       A

                	 
      
	 
      	 
      	 
      	 
      
	
                  Where

                	
                  X

                	
                  =

                	
                  The
      number of shares of Common Stock to be issued to the
  Holder

                
	 
      	 
      	 
      	 
      
	 
      	
                  Y

                	
                  =

                	
                  the
      number of shares of Common Stock purchasable under this Warrant or, if
      only a portion of this Warrant is being exercised, the portion of this
      Warrant being canceled (at the date of such
  calculation)

                

        

      

    

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      2 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        	 
      	 
      	 
      	 
      
	 
      	
                A

              	
                =

              	
                the
      fair market value of one share of the Common Stock (at the date of such
      calculation)

              
	 
      	 
      	 
      	 
      
	 
      	
                B

              	
                =

              	
                Exercise
      Price (as adjusted to the date of such
  calculation).

              

      

    

    

    For
purposes of the above calculation, fair market value of one share of Common
Stock shall be determined by the Company’s Board of Directors in good faith;
provided, however, that where there exists a public market for the Common Stock
at the time of such exercise, the fair market value of one share of Common Stock
shall be the average of the closing bid and asked prices of the Common Stock
quoted in the Over-The-Counter Market Summary or the last reported sale price of
the Common Stock or the closing price quoted on the Nasdaq Capital Market or on
any exchange on which the Common Stock is listed, whichever is applicable, as
reported by Bloomberg L.P. or its successor or equivalent financial reporting
firm for the five (5) trading days prior to the date of the Company’s receipt of
this Warrant and delivery of the properly endorsed Notice of Exercise and notice
of Holder’s election to exercise without cash.

    

    (b)         Issuance of Shares. This
Warrant shall be deemed to have been exercised immediately prior to the close of
business on the date of its surrender for exercise as provided above, and the
person entitled to receive the Warrant Shares issuable upon such exercise shall
be treated for all purposes as the holder of record of such shares as of the
close of business on such date. As promptly as practicable on or after such date
and in any event within ten (10) days thereafter, the Company at its expense
shall issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of Warrant Shares issuable upon such
exercise. In the event that this Warrant is exercised in part, the Company at
its expense will execute and deliver a new Warrant of like tenor exercisable for
the remaining number of Warrant Shares for which this Warrant may then be
exercised.

    

    5.           No Fractional Shares or Scrip.
No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. In lieu of any fractional share to
which the Holder would otherwise be entitled (after aggregating all shares that
are being issued upon such exercise), the Company shall make a cash payment
equal to the Exercise Price multiplied by such fraction.

    

    6.           Replacement of Warrant. On
receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or
destruction, on delivery of an indemnity agreement or bond reasonably
satisfactory in form and substance to the Company or, in the case of mutilation,
on surrender and cancellation of this Warrant, the Company at its expense shall
execute and deliver, in lieu of this Warrant, a new warrant of like tenor and
amount.

    

    7.           Rights of Stockholders.
Subject to Sections 10 and 12 of this Warrant, the Holder shall not be
entitled to vote or receive dividends or be deemed the holder of the Warrant
Shares or any other securities of the Company that may at any time be issuable
on the exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the Holder, as such, any of the rights of a stockholder
of the Company or any right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof or to give or withhold
consent to any corporate action (whether upon any recapitalization, issuance of
stock, reclassification of stock, change of par value, or change of stock to no
par value, consolidation, merger, conveyance, or otherwise) or to receive notice
of meetings, or to receive dividends or subscription rights or otherwise until
this Warrant shall have been exercised as provided herein.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      3 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    8.           Transfer of
Warrant.

    

    (a)      
    Warrant Register. The Company
will maintain a register (the “Warrant Register”)
containing the names and addresses of the Holder or Holders. Any Holder of this
Warrant or any portion thereof may change its address as shown on the Warrant
Register by written notice to the Company requesting such change. Any notice or
written communication required or permitted to be given to the Holder may be
delivered or given by mail to such Holder as shown on the Warrant Register and
at the address shown on the Warrant Register. Until this Warrant is transferred
on the Warrant Register of the Company, the Company may treat the Holder as
shown on the Warrant Register as the absolute owner of this Warrant for all
purposes, notwithstanding any notice to the contrary.

    

    (b)    
      Warrant Agent. The Company
may, by written notice to the Holder, appoint an agent for the purpose of
maintaining the Warrant Register referred to in Section 7(a) above, issuing the
Warrant Shares or other securities then issuable upon the exercise of this
Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the
foregoing (the “Warrant Agent”).
Thereafter, any such registration, issuance, exchange or replacement, as the
case may be, shall be made at the office of the Warrant Agent.

    

    (c)     
     Transferability and Negotiability of
Warrant. This Warrant may not be transferred or assigned in whole or in
part without compliance with all applicable federal and state securities laws by
the transferor and the transferee (including the delivery of investment
representation letters and legal opinions reasonably satisfactory to the
Company, if such are requested by the Company). Subject to the provisions of
this Warrant with respect to compliance with the Securities Act of 1933, as
amended (the “Act”), title to this
Warrant may be transferred by endorsement (by the Holder executing the
Assignment Form annexed hereto) and delivery in the same manner as a negotiable
instrument transferable by endorsement and delivery.

    

    (d)   
       Exchange of Warrant Upon a Transfer.
Upon surrender of this Warrant for exchange, properly endorsed on the
Assignment Form and subject to the provisions of this Warrant with respect to
compliance with the Act and with the limitations on assignments and transfers
contained in this Section 8, the Company at its expense shall issue to or on the
order of the Holder a new warrant or warrants of like tenor, in the name of the
Holder or as the Holder (on payment by the Holder of any applicable transfer
taxes) may direct, for the number of shares issuable upon exercise
hereof.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      4 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (e)          Compliance with Securities
Laws.

    

    (i)           The
Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and
the Warrant Shares to be issued upon exercise hereof are being acquired for
investment purposes, and that the Holder will not offer, sell or otherwise
dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof
except under circumstances that will not result in a violation of the Act or any
applicable state securities laws.

    

    (ii)          This
Warrant and all Warrant Shares issued upon exercise hereof or conversion thereof
shall be stamped or imprinted with a legend in substantially the following form
(in addition to any legend required by state securities laws):

    

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT THERETO UNDER SUCH ACT AND APPLICABLE LAWS OR
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS
OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.

    

    9.         
  Reservation of
Stock. The Company covenants that during the Term, the Company will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
this Warrant and, from time to time, will take all steps necessary to amend its
Certificate or Articles of Incorporation (the “Certificate”) to
provide sufficient reserves of Warrant Shares issuable upon exercise of this
Warrant. The Company further covenants that all Warrant Shares that may be
issued upon the exercise of rights represented by this Warrant and payment of
the Exercise Price, all as set forth herein will be duly and validly authorized
and issued, fully paid and nonassessable and free from all taxes, liens and
charges in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously therewith). The Company agrees that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of this
Warrant.

    

    10.   
      Notices.

    

    (a)       
  Whenever the Exercise Price or the shares purchasable hereunder
shall be adjusted pursuant to Section 12 hereof, the Company shall issue a
certificate signed by its Chief Financial Officer setting forth, in reasonable
detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated, and the Exercise Price and the
shares purchasable hereunder after giving effect to such adjustment, and shall
cause a copy of such certificate to be mailed (by first-class mail, postage
prepaid) to the Holder of this Warrant.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      5 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)         In
case:

    

    (i)           the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time receivable upon the exercise of this Warrant) for the
purpose of entitling them to receive any dividend or other distribution, or any
right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, or

    

    (ii)          of
any capital reorganization of the Company, any reclassification of the capital
stock of the Company, any consolidation or merger of the Company with or into
another corporation or entity, or any conveyance of all or substantially all of
the assets of the Company to another corporation or entity, or

    

    (iii)         of
any voluntary or involuntary dissolution, liquidation or winding-up of the
Company, then, and in each such case, the Company will mail or cause to be
mailed to the Holder or Holders a notice specifying, as the case may be, (A) the
date on which a record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such dividend,
distribution or right, or (B) the date on which such reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or
winding-up is to take place, and the time, if any is to be fixed, as of which
the holders of record of Common Stock (or such stock or securities at the time
receivable upon the exercise of this Warrant) shall be entitled to exchange
their shares of Common Stock (or such other stock or securities) for securities
or other property deliverable upon such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such
notice shall be mailed at least 20 days prior to the record date specified in
(A) above or 30 days prior to the date specified in (B) above.

    

    11.         Amendments and
Waivers.

    

    (a)         Except
as provided in Section 11(b) below, this Warrant, or any provision hereof, may
be amended, waived, discharged or terminated only by a statement in writing
signed by the party against which enforcement of the change, waiver, discharge
or termination is sought.

    

    (b)         Any
term or condition of this Warrant may be amended with the written consent of the
Company and the Holder. Any amendment effected in accordance with this Section
11(b) shall be binding upon the Holder and each future holder of this Warrant
and the Company.

    

    (c)         No
waivers of, or exceptions to, any term, condition or provision of this Warrant,
in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.

    

    12.         Adjustments. The Exercise
Price and the shares purchasable hereunder are subject to adjustment from time
to time as follows:

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      6 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (a)         Merger, Sale of Assets, etc.
If at any time while this Warrant is outstanding and unexpired there shall be
(i) a reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or (iii) a sale or transfer of the
Company’s properties and assets as, or substantially as, an entirety to any
other corporation or other entity, then, as a part of such reorganization,
merger, consolidation, sale or transfer, lawful provision shall be made so that
the holder of this Warrant shall thereafter be entitled to receive upon exercise
of this Warrant, during the period specified herein and upon payment of the
Exercise Price then in effect, the number of shares of stock or other securities
or property of the successor corporation or other entity resulting from such
reorganization, merger, consolidation, merger, sale or transfer that a holder of
the shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization, consolidation, merger, sale or transfer if this
Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 12. The foregoing provision of this Section 12(a) shall
similarly apply to successive reorganizations, consolidations, mergers, sales
and transfers and to the stock or securities of any other corporation or other
entity that are at the time receivable upon the exercise of this Warrant. In all
events, appropriate adjustment (as determined in good faith by the Company’s
Board of Directors) shall be made in the application of the provisions of this
Warrant with respect to the rights and interests of the Holder after the
transaction, to the end that the provisions of this Warrant shall be applicable
after that event, as near as reasonably may be, in relation to any shares or
other property deliverable after that event upon exercise of this
Warrant.

    

    (b)         Reclassification, etc. If the
Company, at any time while this Warrant remains outstanding and unexpired, by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 12.

    

    (c)         Split, Subdivision or Combination of
Shares. If the Company at any time while this Warrant remains outstanding
and unexpired shall split, subdivide or combine the securities as to which
purchase rights under this Warrant exist, into a different number of securities
of the same class, the Exercise Price for such securities shall be
proportionately decreased in the case of a split or subdivision or
proportionately increased in the case of a combination and the number of such
securities shall be proportionately increased in the case of a split or
subdivision or proportionately decreased in the case of a
combination.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      7 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

      (d)         Adjustments for Dividends in Stock
or other Securities or Property. If while this Warrant remains
outstanding and unexpired, the holders of the securities as to which purchase
rights under this Warrant exist (including without limitation securities into
which such securities may be converted) at the time shall have received, or, on
or after the record date fixed for the determination of eligible stockholders,
shall have become entitled to receive, without payment therefor, other or
additional stock or other securities or property (other than cash) of
the Company by way of dividend, then and in each case, this Warrant shall
represent the right to acquire, in addition to the number of shares of the
security receivable upon exercise of this Warrant, and without payment of any
additional consideration therefor, the amount of such other or additional stock
or other securities or property (other than cash) of the Company that such
holder would hold on the date of such exercise had it been the holder of record
of the security receivable upon exercise of this Warrant (or upon such
conversion) on the date hereof and had thereafter, during the period from the
date hereof to and including the date of such exercise, retained such shares
and/or all other additional stock available by it as aforesaid during such
period, giving effect to all adjustments called for during such period by the
provisions of this Section 12.

    

     

    (e)         Calculations. All
calculations under this Section 12 shall be made to the nearest four decimal
points.

    

    (f)          No Impairment. The Company
will not, by amendment of its charter or through reorganization, consolidation,
merger, dissolution, sale of assets or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the holder of this Warrant against
impairment.

    

    13.         Saturdays, Sundays and
Holidays. If the last or appointed day for the taking of any action or
the expiration of any right granted herein shall be a Saturday, Sunday or legal
holiday, then (notwithstanding anything herein to the contrary) such action may
be taken or such right may be exercised on the next succeeding day that is not a
Saturday, Sunday or legal holiday.

    

    14.         Governing Law. This Warrant
shall be governed by and construed in accordance with the laws of the State of
Delaware applicable to agreements made and to be performed entirely within such
State, without regard to the conflicts of law principles of such
State.

    

    15.         Binding Effect. The terms of
this Warrant shall be binding upon and inure to the benefit of the Company and
the Holder and their respective successors and assigns.

    

    IN WITNESS WHEREOF, Glen Rose
Petroleum Corporation has caused this Warrant to be executed by its officers
thereunto duly authorized.

    

    
      
        	
                Glen
      Rose Petroleum Corporation

              
	 
      
	
                By:  

              	
                   

              
	
                Name:  Andrew
      Taylor-Kimmins

              
	
                Title:
          President

              

      

    

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      8 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        	
                Holder:
      DK True Energy Development Ltd.

              
	 
      
	
                By:  

              	
                   

              
	
                Name:  Dr.
      David Kahn

              
	
                Title:
         Director

              

      

    

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      9 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    NOTICE
OF EXERCISE

    

    (1)         The
undersigned hereby (A) elects to purchase _______ shares of Common Stock of
GLEN ROSE PETROLEUM
CORPORATION, pursuant to the provisions of Section 4(c)(i) of the
attached Warrant, and tenders herewith payment of the purchase price for such
shares in full, or (B) elects to exercise this Warrant for the purchase
of_______ shares of Common Stock, pursuant to the provisions of Section 4(c)(ii)
(cashless exercise) of the attached Warrant.

    

    (2)         In
exercising this Warrant, the undersigned hereby confirms and acknowledges that
the shares of Common Stock to be issued upon exercise hereof are being acquired
for investment purposes, and that the undersigned will not offer, sell or
otherwise dispose of any such shares of Common Stock except under circumstances
that will not result in a violation of the Securities Act of 1933, as amended,
or any applicable state securities laws.

    

    (3)         Please
issue a certificate or certificates representing said shares of Common Stock in
the name of the undersigned or in such other name as is specified
below:

    

    
      
        
          	 
      	 
      	 
      	 
      	
                    

                
	 
      	 
      	 
      	 
      	
                  (Name)

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                  (Name)

                

        

      

    

    

    (4)         Please
issue a new Warrant for the unexercised portion of the attached Warrant in the
name of the undersigned or in such other name as is specified
below:

    

    
      
        	 
      	 
      	 
      	 
      	
                  

              
	 
      	 
      	 
      	 
      	
                (Name)

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  

              	 
      	 
      
	
                (Date)

              	 
      	
                (Signature)

              	 
      	 
      

      

    

    

    17

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      10 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

      
        

      

    

     

    ASSIGNMENT

    

    FOR VALUE RECEIVED, the
undersigned registered owner of this Warrant hereby sells, assigns and transfers
unto the Assignee named below all of the rights of the undersigned under the
within Warrant, with respect to the number of shares of Common Stock set forth
below:

     

    
      
        
          	
                  Name
      of Assignee

                	 	
                  Address

                	 	
                  No.
      of Shares

                
	 
      	 	 
      	 	 
      

        

      

    

    

    and does
hereby irrevocably constitute and appoint ____________________________ Attorney
to make such transfer on the books of GLEN ROSE PETROLEUM
CORPORATION, maintained for the purpose, with full power of substitution
in the premises.

    

    The
undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon
exercise hereof are being acquired for investment purposes, and that the
Assignee will not offer, sell or otherwise dispose of this Warrant or any shares
of stock to be issued upon exercise hereof except under circumstances which will
not result in a violation of the Securities Act of 1933, as amended, or any
applicable state securities laws.

    

    Dated:
_________________________

     

    
      
        	 
      	 
      	
                  

              
	 
      	 
      	
                Signature
      of Holder

              

      

    

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      11 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A
REGISTRATION STATEMENT IN EFFECT WITH RESPECT THERETO UNDER THE ACT AND
APPLICABLE LAWS OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT
AND APPLICABLE LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED.

     

    
      
        	
                Certificate
      No.  2010-07

              	
                Warrant
      to Purchase up to 729,167 Shares of

              
	
                Dated:
      February 8, 2010

              	
                Common
      Stock (subject to adjustment)

              

      

    

    

    WARRANT
TO PURCHASE COMMON STOCK

    of

    GLEN
ROSE PETROLEUM CORPORATION

    

    This
certifies that, for value received, DK True Energy Developments Ltd., a Cyprus
corporation, or its registered assigns (the “Holder”) is entitled,
subject to the terms set forth below, to purchase from Glen Rose Petroleum
Corporation, a Delaware corporation (the “Company”), up to
seven hundred and twenty nine thousand one hundred and sixty seven (729,167)
shares of its common stock, par value $0.001 per share (the “Common Stock” and in
aggregate “Common Shares”), as constituted on the date hereof (the “Warrant Issue Date”),
upon surrender hereof, at the principal office of the Company referred to below,
with the Notice of Exercise form annexed hereto duly executed, and simultaneous
payment therefor in lawful money of the United States or otherwise as
hereinafter provided, at the Exercise Price set forth in Section 2 below. The
number and character of such shares of Common Stock and the Exercise Price are
subject to adjustment as provided herein. The term “Warrant” as used
herein shall include this Warrant and any warrants delivered in substitution or
exchange therefor as provided herein. This Warrant is being issued pursuant to
the Stock and Warrant Purchase and Exchange Agreement dated February 8, 2010, by
and between the Company and DK True Energy Developments Ltd.

    

    1. Term of Warrant. Subject to
the terms and conditions set forth herein, this Warrant shall be exercisable, in
whole or in part, during the term commencing on the Warrant Issue Date and
ending at 5:00 p.m., Eastern Standard Time, on November 28, 2012 (the “Term”), and shall be
void thereafter.

    

    2. Exercise Price. The exercise
price at which this Warrant may be exercised shall be $1.05 per share of Common
Stock (the “Exercise
Price”), as such Exercise Price may be adjusted from time to time
pursuant to Section 12 hereof.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      12 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    3.       
   Number of
Warrants.  The warrants shall be exercisable for any amount as
follows:

    

    a.           up
to and including 729,167 Common Shares of the Company.  The Warrant
Issue Date shall be the date upon which any such warrant is issued.

    

    4.           Vesting and Exercise of
Warrant.

    

    (a)         Exercisability – Majority
Ownership. Notwithstanding anything herein to the contrary, should the
number of shares of Common Stock issuable upon the execution of this Warrant,
plus the number of shares of Common Stock issuable upon the any other warrant or
option relating to the Common Stock, plus any Common Stock held by Holder, any
“affiliate” of Holder as defined by defined by SEC Rule 501(b), or any party
acting as a “group” as defined by SEC Rule 13(d)(3) with Holder combined with
any shares held meet or exceed fifty percent (50%) of the Company’s total Common
Shares, this Warrant will only become exercisable (“Vest”) when the Company has
obtained shareholder approval of this Warrant in accordance with applicable
federal securities laws and the rules and regulations of any national securities
exchange or inter-dealer quotation system upon which the Company’s Common Stock
is then traded.

    

    (b)         Exercisability - Dilution.
Notwithstanding anything herein to the contrary, should the number of shares of
Common Stock issuable upon the execution of this Warrant, plus the number of
shares of Common Stock issuable upon the any other warrant or option relating to
the Common Stock held by Holder, any “affiliate” of Holder as defined by defined
by SEC Rule 501(b), or any party acting as a “group” as defined by SEC Rule
13(d)(3) with Holder combined with any shares held meet or exceed twenty percent
(20%) of the Company’s total Common Shares, this Warrant will only become
exercisable (“Vest”) when the Company has obtained shareholder approval of this
Warrant in accordance with applicable federal securities laws and the rules and
regulations of any national securities exchange or inter-dealer quotation system
upon which the Company’s Common Stock is then traded.

    

    (c)         Exercise of
Warrant.

    

    (i)           Method of Exercise. Subject
to sections 4(a) and 4(b) above, the purchase rights represented by this Warrant
are exercisable by the Holder in whole or in part, at any time, or from time to
time, during the Term, by the surrender of this Warrant and the Notice of
Exercise annexed hereto duly completed and executed on behalf of the Holder, at
the principal office of the Company (or such other office or agency of the
Company as it may designate by notice in writing to the Holder at the address of
the Holder appearing on the books of the Company), upon payment in cash by wire
transfer or by check acceptable to the Company of the purchase price of the
shares to be purchased.

    

    (ii)          Net Issue Exercise.
Notwithstanding any provisions herein to the contrary, if the fair market
value of one share of Common Stock is greater than the Exercise Price (at the
date of calculation as set forth below), in lieu of exercising this Warrant for
cash, the Holder may elect to receive shares equal to the value (as determined
below) of this Warrant (or the portion thereof being canceled) by surrender of
this Warrant at the principal office of the Company together with the properly
endorsed Notice of Exercise and notice of such election, in which event the
Company shall issue to the Holder a number of shares of Common Stock computed
using the following formula:

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      13 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  X
      = 

                	
                    Y (A-B) 

                	 
      
	
                        
       A

                	 
      
	 
      	 
      	 
      	 
      
	
                  Where

                	
                  X

                	
                  =

                	
                  The
      number of shares of Common Stock to be issued to the
  Holder

                
	 
      	 
      	 
      	 
      
	 
      	
                  Y

                	
                  =

                	
                  the
      number of shares of Common Stock purchasable under this Warrant or, if
      only a portion of this Warrant is being exercised, the portion of this
      Warrant being canceled (at the date of such
calculation)

                
	 
      	 
      	 
      	 
      
	 
      	
                  A

                	
                  =

                	
                  the
      fair market value of one share of the Common Stock (at the date of such
      calculation)

                
	 
      	 
      	 
      	 
      
	 
      	
                  B

                	
                  =

                	
                  Exercise
      Price (as adjusted to the date of such
  calculation).

                

        

      

    

    

    For
purposes of the above calculation, fair market value of one share of Common
Stock shall be determined by the Company’s Board of Directors in good faith;
provided, however, that where there exists a public market for the Common Stock
at the time of such exercise, the fair market value of one share of Common Stock
shall be the average of the closing bid and asked prices of the Common Stock
quoted in the Over-The-Counter Market Summary or the last reported sale price of
the Common Stock or the closing price quoted on the Nasdaq Capital Market or on
any exchange on which the Common Stock is listed, whichever is applicable, as
reported by Bloomberg L.P. or its successor or equivalent financial reporting
firm for the five (5) trading days prior to the date of the Company’s receipt of
this Warrant and delivery of the properly endorsed Notice of Exercise and notice
of Holder’s election to exercise without cash.

    

    (d)         Issuance of Shares. This
Warrant shall be deemed to have been exercised immediately prior to the close of
business on the date of its surrender for exercise as provided above, and the
person entitled to receive the Warrant Shares issuable upon such exercise shall
be treated for all purposes as the holder of record of such shares as of the
close of business on such date. As promptly as practicable on or after such date
and in any event within ten (10) days thereafter, the Company at its expense
shall issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of Warrant Shares issuable upon such
exercise. In the event that this Warrant is exercised in part, the Company at
its expense will execute and deliver a new Warrant of like tenor exercisable for
the remaining number of Warrant Shares for which this Warrant may then be
exercised.

    

    5.           No Fractional Shares or Scrip.
No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. In lieu of any fractional share to
which the Holder would otherwise be entitled (after aggregating all shares that
are being issued upon such exercise), the Company shall make a cash payment
equal to the Exercise Price multiplied by such fraction.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      14 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    6.           Replacement of Warrant. On
receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or
destruction, on delivery of an indemnity agreement or bond reasonably
satisfactory in form and substance to the Company or, in the case of mutilation,
on surrender and cancellation of this Warrant, the Company at its expense shall
execute and deliver, in lieu of this Warrant, a new warrant of like tenor and
amount.

    

    7.           Rights of Stockholders.
Subject to Sections 10 and 12 of this Warrant, the Holder shall not be
entitled to vote or receive dividends or be deemed the holder of the Warrant
Shares or any other securities of the Company that may at any time be issuable
on the exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the Holder, as such, any of the rights of a stockholder
of the Company or any right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof or to give or withhold
consent to any corporate action (whether upon any recapitalization, issuance of
stock, reclassification of stock, change of par value, or change of stock to no
par value, consolidation, merger, conveyance, or otherwise) or to receive notice
of meetings, or to receive dividends or subscription rights or otherwise until
this Warrant shall have been exercised as provided herein.

    

    8.           Transfer of
Warrant.

    

    (a)         Warrant Register. The Company
will maintain a register (the “Warrant Register”)
containing the names and addresses of the Holder or Holders. Any Holder of this
Warrant or any portion thereof may change its address as shown on the Warrant
Register by written notice to the Company requesting such change. Any notice or
written communication required or permitted to be given to the Holder may be
delivered or given by mail to such Holder as shown on the Warrant Register and
at the address shown on the Warrant Register. Until this Warrant is transferred
on the Warrant Register of the Company, the Company may treat the Holder as
shown on the Warrant Register as the absolute owner of this Warrant for all
purposes, notwithstanding any notice to the contrary.

    

    (b)         Warrant Agent. The Company
may, by written notice to the Holder, appoint an agent for the purpose of
maintaining the Warrant Register referred to in Section 7(a) above, issuing the
Warrant Shares or other securities then issuable upon the exercise of this
Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the
foregoing (the “Warrant Agent”).
Thereafter, any such registration, issuance, exchange or replacement, as the
case may be, shall be made at the office of the Warrant Agent.

    

    (c)         Transferability and Negotiability of
Warrant. This Warrant may not be transferred or assigned in whole or in
part without compliance with all applicable federal and state securities laws by
the transferor and the transferee (including the delivery of investment
representation letters and legal opinions reasonably satisfactory to the
Company, if such are requested by the Company). Subject to the provisions of
this Warrant with respect to compliance with the Securities Act of 1933, as
amended (the “Act”), title to this
Warrant may be transferred by endorsement (by the Holder executing the
Assignment Form annexed hereto) and delivery in the same manner as a negotiable
instrument transferable by endorsement and delivery.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      15 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (d)         Exchange of Warrant Upon a Transfer.
Upon surrender of this Warrant for exchange, properly endorsed on the
Assignment Form and subject to the provisions of this Warrant with respect to
compliance with the Act and with the limitations on assignments and transfers
contained in this Section 8, the Company at its expense shall issue to or on the
order of the Holder a new warrant or warrants of like tenor, in the name of the
Holder or as the Holder (on payment by the Holder of any applicable transfer
taxes) may direct, for the number of shares issuable upon exercise
hereof.

    

    (e)         Compliance with Securities
Laws.

    

    (i)           The
Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and
the Warrant Shares to be issued upon exercise hereof are being acquired for
investment purposes, and that the Holder will not offer, sell or otherwise
dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof
except under circumstances that will not result in a violation of the Act or any
applicable state securities laws.

    

    (ii)          This
Warrant and all Warrant Shares issued upon exercise hereof or conversion thereof
shall be stamped or imprinted with a legend in substantially the following form
(in addition to any legend required by state securities laws):

    

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT THERETO UNDER SUCH ACT AND APPLICABLE LAWS OR
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS
OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.

    

    9.           Reservation of Stock. The
Company covenants that during the Term, the Company will reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of the Warrant Shares upon the exercise of this Warrant and,
from time to time, will take all steps necessary to amend its Certificate or
Articles of Incorporation (the “Certificate”) to
provide sufficient reserves of Warrant Shares issuable upon exercise of this
Warrant. The Company further covenants that all Warrant Shares that may be
issued upon the exercise of rights represented by this Warrant and payment of
the Exercise Price, all as set forth herein will be duly and validly authorized
and issued, fully paid and nonassessable and free from all taxes, liens and
charges in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously therewith). The Company agrees that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Shares upon the exercise of this
Warrant.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      16 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    10.         Notices.

    

    (a)         Whenever
the Exercise Price or the shares purchasable hereunder shall be adjusted
pursuant to Section 12 hereof, the Company shall issue a certificate signed by
its Chief Financial Officer setting forth, in reasonable detail, the event
requiring the adjustment, the amount of the adjustment, the method by which such
adjustment was calculated, and the Exercise Price and the shares purchasable
hereunder after giving effect to such adjustment, and shall cause a copy of such
certificate to be mailed (by first-class mail, postage prepaid) to the Holder of
this Warrant.

    

    (b)         In
case:

    

    (i)           the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time receivable upon the exercise of this Warrant) for the
purpose of entitling them to receive any dividend or other distribution, or any
right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, or

    

    (ii)          of
any capital reorganization of the Company, any reclassification of the capital
stock of the Company, any consolidation or merger of the Company with or into
another corporation or entity, or any conveyance of all or substantially all of
the assets of the Company to another corporation or entity, or

    

    (iii)         of
any voluntary or involuntary dissolution, liquidation or winding-up of the
Company, then, and in each such case, the Company will mail or cause to be
mailed to the Holder or Holders a notice specifying, as the case may be, (A) the
date on which a record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such dividend,
distribution or right, or (B) the date on which such reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or
winding-up is to take place, and the time, if any is to be fixed, as of which
the holders of record of Common Stock (or such stock or securities at the time
receivable upon the exercise of this Warrant) shall be entitled to exchange
their shares of Common Stock (or such other stock or securities) for securities
or other property deliverable upon such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such
notice shall be mailed at least 20 days prior to the record date specified in
(A) above or 30 days prior to the date specified in (B) above.

    

    11.         Amendments and
Waivers.

    

    (a)         Except
as provided in Section 11(b) below, this Warrant, or any provision hereof, may
be amended, waived, discharged or terminated only by a statement in writing
signed by the party against which enforcement of the change, waiver, discharge
or termination is sought.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      17 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)         Any
term or condition of this Warrant may be amended with the written consent of the
Company and the Holder. Any amendment effected in accordance with this Section
11(b) shall be binding upon the Holder and each future holder of this Warrant
and the Company.

    

    (c)         No
waivers of, or exceptions to, any term, condition or provision of this Warrant,
in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.

    

    12.         Adjustments. The Exercise
Price and the shares purchasable hereunder are subject to adjustment from time
to time as follows:

    

    (a)         Merger, Sale of Assets, etc.
If at any time while this Warrant is outstanding and unexpired there shall be
(i) a reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or (iii) a sale or transfer of the
Company’s properties and assets as, or substantially as, an entirety to any
other corporation or other entity, then, as a part of such reorganization,
merger, consolidation, sale or transfer, lawful provision shall be made so that
the holder of this Warrant shall thereafter be entitled to receive upon exercise
of this Warrant, during the period specified herein and upon payment of the
Exercise Price then in effect, the number of shares of stock or other securities
or property of the successor corporation or other entity resulting from such
reorganization, merger, consolidation, merger, sale or transfer that a holder of
the shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization, consolidation, merger, sale or transfer if this
Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 12. The foregoing provision of this Section 12(a) shall
similarly apply to successive reorganizations, consolidations, mergers, sales
and transfers and to the stock or securities of any other corporation or other
entity that are at the time receivable upon the exercise of this Warrant. In all
events, appropriate adjustment (as determined in good faith by the Company’s
Board of Directors) shall be made in the application of the provisions of this
Warrant with respect to the rights and interests of the Holder after the
transaction, to the end that the provisions of this Warrant shall be applicable
after that event, as near as reasonably may be, in relation to any shares or
other property deliverable after that event upon exercise of this
Warrant.

    

    (b)         Reclassification, etc. If the
Company, at any time while this Warrant remains outstanding and unexpired, by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 12.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      18 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (c)         Split, Subdivision or Combination of
Shares. If the Company at any time while this Warrant remains outstanding
and unexpired shall split, subdivide or combine the securities as to which
purchase rights under this Warrant exist, into a different number of securities
of the same class, the Exercise Price for such securities shall be
proportionately decreased in the case of a split or subdivision or
proportionately increased in the case of a combination and the number of such
securities shall be proportionately increased in the case of a split or
subdivision or proportionately decreased in the case of a
combination.

    

    (d)         Adjustments for Dividends in Stock
or other Securities or Property. If while this Warrant remains
outstanding and unexpired, the holders of the securities as to which purchase
rights under this Warrant exist (including without limitation securities into
which such securities may be converted) at the time shall have received, or, on
or after the record date fixed for the determination of eligible stockholders,
shall have become entitled to receive, without payment therefor, other or
additional stock or other securities or property (other than cash) of the
Company by way of dividend, then and in each case, this Warrant shall represent
the right to acquire, in addition to the number of shares of the security
receivable upon exercise of this Warrant, and without payment of any additional
consideration therefor, the amount of such other or additional stock or other
securities or property (other than cash) of the Company that such holder would
hold on the date of such exercise had it been the holder of record of the
security receivable upon exercise of this Warrant (or upon such conversion) on
the date hereof and had thereafter, during the period from the date hereof to
and including the date of such exercise, retained such shares and/or all other
additional stock available by it as aforesaid during such period, giving effect
to all adjustments called for during such period by the provisions of this
Section 12.

    

    (e)         Calculations. All
calculations under this Section 12 shall be made to the nearest four decimal
points.

    

    (f)         
No Impairment. The
Company will not, by amendment of its charter or through reorganization,
consolidation, merger, dissolution, sale of assets or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holder of this Warrant against
impairment.

    

    13.         Saturdays, Sundays and
Holidays. If the last or appointed day for the taking of any action or
the expiration of any right granted herein shall be a Saturday, Sunday or legal
holiday, then (notwithstanding anything herein to the contrary) such action may
be taken or such right may be exercised on the next succeeding day that is not a
Saturday, Sunday or legal holiday.

    

    14.         Governing Law. This Warrant
shall be governed by and construed in accordance with the laws of the State of
Delaware applicable to agreements made and to be performed entirely within such
State, without regard to the conflicts of law principles of such
State.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      19 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    15.         Binding Effect. The terms of
this Warrant shall be binding upon and inure to the benefit of the Company and
the Holder and their respective successors and assigns.

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      20 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, Glen Rose
Petroleum Corporation has caused this Warrant to be executed by its officers
thereunto duly authorized.

    

    
      
        
          
            	
                    Glen
      Rose Petroleum Corporation

                  
	 
      
	
                    By:  

                  	 
      
	
                    Name:  Andrew
      Taylor-Kimmins

                  
	
                    Title:
         President

                  
	 
      
	
                    Holder:
      DK True Energy Developments Ltd.

                  
	 
      
	
                    By:  

                  	 
      
	
                    Name:  Dr.
      David Kahn

                  
	
                    Title:
        
Director

                  

          

        

      

    

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      21 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    NOTICE
OF EXERCISE

    

    (1)         The
undersigned hereby (A) elects to purchase _______ shares of Common Stock of
GLEN ROSE PETROLEUM
CORPORATION, pursuant to the provisions of Section 4(c)(i) of the
attached Warrant, and tenders herewith payment of the purchase price for such
shares in full, or (B) elects to exercise this Warrant for the purchase
of_______ shares of Common Stock, pursuant to the provisions of Section 4(c)(ii)
(cashless exercise) of the attached Warrant.

    

    (2)         In
exercising this Warrant, the undersigned hereby confirms and acknowledges that
the shares of Common Stock to be issued upon exercise hereof are being acquired
for investment purposes, and that the undersigned will not offer, sell or
otherwise dispose of any such shares of Common Stock except under circumstances
that will not result in a violation of the Securities Act of 1933, as amended,
or any applicable state securities laws.

    

    (3)         Please
issue a certificate or certificates representing said shares of Common Stock in
the name of the undersigned or in such other name as is specified
below:

    

     

    
      
        
          	 
      	 	 
      	 
      	
                    

                
	 
      	 	 
      	 
      	
                  (Name)

                
	 
      	 	 
      	 
      	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	 
      	 
      	
                  (Name)

                

        

      

    

    

    (4)         Please
issue a new Warrant for the unexercised portion of the attached Warrant in the
name of the undersigned or in such other name as is specified
below:

    

    
      
        
          	 
      	 
      	 
      	 
      	
                    

                
	 
      	 
      	 
      	 
      	
                  (Name)

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    

                	 
      	 
      
	
                  (Date)

                	 
      	
                  (Signature)

                	 
      	 
      

        

      

    

    

    17

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      22 or 23

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

      
        

      

    

     

    ASSIGNMENT

    

    FOR VALUE RECEIVED, the
undersigned registered owner of this Warrant hereby sells, assigns and transfers
unto the Assignee named below all of the rights of the undersigned under the
within Warrant, with respect to the number of shares of Common Stock set forth
below:

     

    
      
        	
                Name of Assignee

              	 
      	
                Address

              	 
      	
                No. of Shares

              
	 
      	
                  

              	 
      	
                  

              	 
      

      

    

    

    and does
hereby irrevocably constitute and appoint ____________________________ Attorney
to make such transfer on the books of GLEN ROSE PETROLEUM
CORPORATION, maintained for the purpose, with full power of substitution
in the premises.

    

    The
undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon
exercise hereof are being acquired for investment purposes, and that the
Assignee will not offer, sell or otherwise dispose of this Warrant or any shares
of stock to be issued upon exercise hereof except under circumstances which will
not result in a violation of the Securities Act of 1933, as amended, or any
applicable state securities laws.

    

    Dated:
_________________________

     

    
      
        	 
      	 
      	
                  

              
	 
      	 
      	
                Signature
      of Holder

              

      

    

    

    
      	
              Warrant
      for DK True Energy Developments Ltd.

            	 
      
	
              To
      Purchase Shares Issued by

            	 
      
	
              Glen
      Rose Petroleum Corporation

            	
              Page
      23 or 23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]