Document:

Exhibit 10.2

 

Execution Copy

 

THE
NUMBER OF PREFERRED SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT
TO SECTION 1(a) OF THIS WARRANT.

 

MagneGas Corporation

 

Warrant to Purchase

Series E Convertible Preferred Stock

 

Preferred Warrant No.: E-[ ]

 

Date of Issuance: September [ ], 2017 (“Issuance
Date”)

 

MagneGas Corporation,
a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [_____________], the registered
holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to
purchase from the Company, at the Exercise Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Series
E Convertible Preferred Stock (including any Warrants to Purchase Series E Convertible Preferred Stock issued in exchange, transfer
or replacement hereof, the “Warrant”), at any time or times on or after the Issuance Date, but not after 11:59
p.m., New York time, on the Expiration Date (as defined below), [________] (subject to adjustment as provided herein) fully paid
and non-assessable shares of Series E Convertible Preferred Stock (the “Warrant Preferred Shares”). Except as
otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 16. This Warrant
is one of the Warrants (as defined in the Securities Purchase Agreement (as defined below)) to Purchase Series E Convertible Preferred
Stock (the “SPA Preferred Warrants”) issued pursuant to Section 1 of that certain Securities Purchase Agreement,
dated as of September 15, 2017 (the “Subscription Date”), by and among the Company and the investors (the “Buyers”)
referred to therein, as amended from time to time (the “Securities Purchase Agreement”)

 

1.                 
EXERCISE OF WARRANT.

 

(a)              
Mechanics of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on
any day on or after the Issuance Date (an “Exercise Date”), in whole or in part, by delivery (whether via facsimile
or otherwise) of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”),
of the Holder’s election to exercise this Warrant. Within one (1) Trading Day following an exercise of this Warrant as aforesaid,
the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise
multiplied by the number of Warrant Preferred Shares as to which this Warrant was so exercised (the “Aggregate Exercise
Price”) in cash or via wire transfer of immediately available funds. The Holder shall not be required to deliver the
original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to
less than all of the Warrant Preferred Shares shall have the same effect as cancellation of the original of this Warrant and issuance
of a new Warrant evidencing the right to purchase the remaining number of Warrant Preferred Shares. Execution and delivery of an
Exercise Notice for all of the then-remaining Warrant Preferred Shares shall have the same effect as cancellation of the original
of this Warrant after delivery of the Warrant Preferred Shares in accordance with the terms hereof. On or before the second (2nd)
Trading Day following the date on which the Company has received such Exercise Notice (or such earlier date as required pursuant
to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant Preferred Shares initiated
on the applicable Exercise Date), the Company shall issue and deliver (via reputable overnight courier) to the address as specified
in the Exercise Notice, a certificate, registered in the name of the Holder or its designee, for the number of Warrant Preferred
Shares to which the Holder shall be entitled pursuant to such exercise. Upon delivery of an Exercise Notice and the release, at
the direction of the Holder, of a wire of the Aggregate Exercise Price to the Company (the “Exercise Conditions”),
the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Preferred Shares with
respect to which this Warrant has been exercised (including, without limitation, the right to convert such Warrant Preferred Shares),
irrespective of the date of delivery of the certificates evidencing such Warrant Preferred Shares (as the case may be). If a certificate
with respect to this Warrant is delivered to the Company in connection with any exercise pursuant to this Section 1(a) and
the number of Warrant Preferred Shares represented by this Warrant submitted for exercise is greater than the number of Warrant
Preferred Shares being acquired upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable
and in no event later than two (2) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or
its designee) a new Warrant (in accordance with Section 6(d)) representing the right to purchase the number of Warrant Preferred
Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Preferred Shares with respect
to which this Warrant is exercised. No fractional Warrant Preferred Shares are to be issued upon the exercise of this Warrant,
but rather the number of Warrant Preferred Shares to be issued shall be rounded up to the nearest whole number. The Company shall
pay any and all transfer, stamp, issuance and similar taxes, costs and expenses that may be payable with respect to the issuance
and delivery of Warrant Preferred Shares upon exercise of this Warrant. Notwithstanding the foregoing, the Company’s failure
to deliver Warrant Preferred Shares to the Holder on or prior to the later of (i) two (2) Trading Days after receipt of the applicable
Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the
settlement of a trade of such Warrant Preferred Shares initiated on the applicable Exercise Date) and (ii) one (1) Trading Day
after the Company’s receipt of the Aggregate Exercise Price (such later date, the “Share Delivery Deadline”)
shall not be deemed to be a breach of this Warrant. For the avoidance of doubt, the Holder may convert the Warrant Preferred Shares
into shares of Common Stock in accordance with the terms of the Certificate of Designations at any time, at the option of the Holder,
following its satisfaction of the applicable Exercise Conditions (whether or not a certificate with respect to such Warrant Preferred
Shares has been delivered to the Holder on or prior to such time of conversion).

 

     

     

    

 

(b)              
Exercise Price. For purposes of this Warrant, “Exercise Price” means $1.36 subject to adjustment
as provided herein.

 

(c)              
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of
the number of Warrant Preferred Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder
the number of Warrant Preferred Shares that are not disputed and resolve such dispute in accordance with Section 12.

 

(d)              
Forced Exercise.

 

(i)                
General. Commencing on the tenth (10) Trading Day after the initial Issuance Date (the “Eligibility Date”),
so long as (I) no Equity Conditions Failure then exists (unless waived in writing by the Holder), (II) no more than 100,000 Preferred
Shares are then outstanding and (III) no Forced Exercise (as defined below) has occurred in the seven (7) Trading Day period immediately
prior to the applicable date of determination, the Company shall have the right to require the Holder to exercise this Warrant
into up to such aggregate number of fully paid, validly issued and non-assessable Warrant Preferred Shares equal to the lesser
of (x) 500,000 and (y) 30% of the aggregate dollar trading volume of the Common Stock (as reported by Bloomberg) during the three
consecutive Trading Day period immediately prior to the applicable Forced Exercise Notice Date (as defined below)(such lesser number
of Warrant Preferred Shares, the “Maximum Forced Exercise Share Amount”), as designated in the applicable Forced
Exercise Notice (as defined below) to be issued and delivered in accordance with Section 1(a) hereof (each, a “Forced
Exercise”). The Company may exercise its right to require a Forced Exercise under this Section 1(d) by delivering a written
notice thereof, at one, or more times, by facsimile or electronic mail to all, but not less than all, of the holders of SPA Preferred
Warrants (each, a “Forced Exercise Notice”, and the date thereof, each a “Forced Exercise Notice Date”).
For purposes of Section 1(a) hereof, “Forced Exercise Notice” shall be deemed to replace “Exercise Notice”
for all purposes thereunder as if the Holder delivered an Exercise Notice to the Company on the Forced Exercise Notice Date, mutatis
mutandis. Each Forced Exercise Notice shall be irrevocable. Each Forced Exercise Notice shall state (i) the Trading Day
selected for the Forced Exercise in accordance with this Section 1(d), which Trading Day shall be the third (3rd) Trading
Day following the applicable Forced Exercise Eligibility Date (each, a “Forced Exercise Date”), (ii) the aggregate
portion of this Warrant and the SPA Preferred Warrants subject to forced exercise from the Holder and all of the holders of the
SPA Preferred Warrants pursuant to this Section 1(d) (and analogous provisions under the SPA Preferred Warrants), (iii) the
Maximum Forced Exercise Share Amount applicable to the Holder (including calculations and any other documents reasonably requested
by the Holder with respect thereto) and (iv) that there has been no Equity Conditions Failure (or specifying any such Equity Conditions
Failure that then exists, with an acknowledgement that unless such Equity Conditions are waived, in whole or in part, such Forced
Exercise Notice will be invalid). Notwithstanding anything herein to the contrary, if an Equity Conditions Failure occurs at any
time after a Forced Exercise Notice Date and prior to the related Forced Exercise Date, (A) the Company shall provide the Holder
a subsequent notice to that effect and (B) unless the Holder waives the applicable Equity Conditions Failure, the Forced Exercise
shall be cancelled and the applicable Forced Exercise Notice shall be null and void. For the avoidance of doubt, if any Triggering
Event has occurred and continuing, unless such Triggering Event (as defined in the Certificate of Designations) has been waived,
in whole or in part, in writing by the Holder, Company shall have no right to effect a Forced Exercise; provided, that such Triggering
Event shall have no effect upon the Holder’s right to exercise this Warrant in its discretion.

 

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(ii)             
Pro Rata Exercise Requirement. If the Company elects to cause a Forced Exercise of this Warrant pursuant to this
Section 1(d), then it must simultaneously take the same action in the same proportion with respect to all of the SPA Preferred
Warrants.

 

(e)              
Reservation of Shares. So long as this Warrant remains outstanding, the Company shall at all times keep reserved
for issuance under this Warrant a number of Preferred Shares at least equal to 100% of the maximum number of Preferred Shares as
shall be necessary to satisfy the Company’s obligation to issue Preferred Shares under the SPA Preferred Warrants then outstanding
(without regard to any limitations on exercise) (the “Required Reserve Amount”); provided that at no time shall
the number of Preferred Shares reserved pursuant to this Section 1(e) be reduced other than proportionally in connection with any
exercise or redemption of SPA Preferred Warrants or such other event covered by Section 2(a) below. The Required Reserve Amount
(including, without limitation, each increase in the number of shares so reserved) shall be allocated pro rata among the holders
of the SPA Preferred Warrants based on number of Preferred Shares issuable upon exercise of SPA Preferred Warrants held by each
holder on the Closing Date (without regard to any limitations on exercise) or increase in the number of reserved shares, as the
case may be (the “Authorized Share Allocation”). In the event that a holder shall sell or otherwise transfer
any of such holder’s SPA Preferred Warrants, each transferee shall be allocated a pro rata portion of such holder’s
Authorized Share Allocation. Any Preferred Shares reserved and allocated to any Person which ceases to hold any SPA Preferred Warrants
shall be allocated to the remaining holders of SPA Preferred Warrants, pro rata based on the number of Warrant Preferred Shares
issuable upon exercise of the SPA Preferred Warrants then held by such holders (without regard to any limitations on exercise).
If, notwithstanding the foregoing, and not in limitation thereof, at any time while any of the SPA Preferred Warrants remain outstanding,
the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to
reserve the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take
all action necessary to increase the Company’s authorized Preferred Shares to an amount sufficient to allow the Company to
reserve the Required Reserve Amount for all the SPA Preferred Warrants then outstanding. Without limiting the generality of the
foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later
than forty-five (45) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders
for the approval of an increase in the number of authorized Preferred Shares. In connection with such meeting, the Company shall
provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such
increase in authorized Preferred Shares and to cause its board of directors to recommend to the stockholders that they approve
such proposal.

 

2.                 
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT PREFERRED SHARES. The Exercise Price and number of Warrant
Preferred Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a)              
Stock Dividends and Splits. If the Company, at any time on or after the Subscription Date, (i) pays a stock dividend
on one or more classes of its then outstanding Warrant Preferred Shares or otherwise makes a distribution on any class of capital
stock that is payable in Warrant Preferred Shares, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its then outstanding Warrant Preferred Shares into a larger number of shares or (iii) combines (by combination,
reverse stock split or otherwise) one or more classes of its then outstanding Warrant Preferred Shares into a smaller number of
shares then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of
Warrant Preferred Shares outstanding immediately before such event and of which the denominator shall be the number of Warrant
Preferred Shares outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution,
and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date
of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an
Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect
such event.

 

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(b)              
Number of Warrant Preferred Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 2,
the number of Warrant Preferred Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately,
so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Preferred Shares
shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations
on exercise contained herein).

 

(c)              
Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant, with the prior written
consent of the Required Holders (as defined in the Securities Purchase Agreement), reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the board of directors of the Company.

 

3.                 
FUNDAMENTAL TRANSACTIONS.

 

(a)              
Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless (i) 
the Successor Entity assumes in writing all of the obligations of the Company under this Warrant and the other Transaction Documents
(as defined in the Securities Purchase Agreement) in accordance with the provisions of this Section 3(a) pursuant to written
agreements in form and substance satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, including
agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding
number of shares of capital stock equivalent to the shares of Series E Convertible Preferred Stock acquirable and receivable upon
exercise of this Warrant prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder
to such shares of capital stock (but taking into account the relative value of the shares of Series E Convertible Preferred Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the number of shares
of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior
to the consummation of such Fundamental Transaction) and (ii) the Successor Entity (including its Parent Entity) is a publicly
traded corporation whose common stock is quoted on or listed for trading on an Eligible Market. Upon the consummation of each Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been
named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder
confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental
Transaction, in lieu of the shares of Series E Convertible Preferred Stock (or other securities, cash, assets or other property)
issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded common
stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive
upon the happening of the applicable Fundamental Transaction had this Warrant been completely exercised (and the underlying Warrant
Preferred Shares completely converted) immediately prior to the applicable Fundamental Transaction (without regard to any limitations
on the conversion of the Warrant Preferred Shares), as adjusted in accordance with the provisions of this Warrant. Notwithstanding
the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 3(a)
to permit the Fundamental Transaction without the assumption of this Warrant. In addition to and not in substitution for any other
rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock
are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate
Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive
upon an exercise of this Warrant and conversion of the underlying Warrant Preferred Shares at any time after the consummation of
the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities,
cash, assets or other property) issuable upon the exercise of the Warrant and conversion of the underlying Warrant Preferred Shares
prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including
warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the
applicable Fundamental Transaction had this Warrant been exercised and converted into Warrant Preferred Shares immediately prior
to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant
to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

 

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(b)              
Application. The provisions of this Section 3 shall apply similarly and equally to successive Fundamental Transactions
and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without
regard to any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit
of the Maximum Percentage, applied however with respect to shares of capital stock registered under the 1934 Act and thereafter
receivable upon exercise of this Warrant (or any such other warrant)).

 

4.                 
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate
of Incorporation (as defined in the Securities Purchase Agreement), Bylaws (as defined in the Securities Purchase Agreement) or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect
the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of
any Warrant Preferred Shares receivable upon the exercise of this Warrant above the Exercise Price then in effect, and (b) shall
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
non-assessable Warrant Preferred Shares upon the exercise of this Warrant.

 

5.                 
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely
in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share
capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely
in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to
the issuance to the Holder of the Warrant Preferred Shares which it is then entitled to receive upon the due exercise of this Warrant.
In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities
(upon exercise of this Warrant or otherwise) or as a stockholder of the Company, except for Forced Exercise, described under Section
1(d) herein, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 5,
the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company
generally, contemporaneously with the giving thereof to the stockholders.

 

6.                 
REISSUANCE OF WARRANTS.

 

(a)              
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 6(d)),
registered as the Holder may request, representing the right to purchase the number of Warrant Preferred Shares being transferred
by the Holder and, if less than the total number of Warrant Preferred Shares then underlying this Warrant is being transferred,
a new Warrant (in accordance with Section 6(d)) to the Holder representing the right to purchase the number of Warrant Preferred
Shares not being transferred.

 

(b)              
Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated
below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this
Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 6(d)) representing
the right to purchase the Warrant Preferred Shares then underlying this Warrant.

 

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(c)              
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Warrant or Warrants (in accordance with Section 6(d)) representing in the aggregate
the right to purchase the number of Warrant Preferred Shares then underlying this Warrant, and each such new Warrant will represent
the right to purchase such portion of such Warrant Preferred Shares as is designated by the Holder at the time of such surrender;
provided, however, no warrants for fractional Warrant Preferred Shares shall be given.

 

(d)              
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant,
the right to purchase the Warrant Preferred Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant
to Section 6(a) or Section 6(c), the Warrant Preferred Shares designated by the Holder which, when added to the number of
Warrant Preferred Shares underlying the other new Warrants issued in connection with such issuance, does not exceed the number
of Warrant Preferred Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such
new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

7.                 
NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice
shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with
prompt written notice of all actions taken pursuant to this Warrant (other than the issuance of Warrant Preferred Shares upon exercise
in accordance with the terms hereof), including in reasonable detail a description of such action and the reason therefor. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment
of the Exercise Price and the number of Warrant Preferred Shares, setting forth in reasonable detail, and certifying, the calculation
of such adjustment(s), (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record
for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that
such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder, (iii)
at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction and (iv) within one (1) Business Day of
the occurrence of a Triggering Event (as defined in the Certificate of Designations), setting forth in reasonable detail any material
events with respect to such Triggering Event and any efforts by the Company to cure such Triggering Event. To the extent that any
notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its Subsidiaries,
the Company shall simultaneously file such notice with the SEC (as defined in the Securities Purchase Agreement) pursuant to a
Current Report on Form 8-K. If the Company or any of its Subsidiaries provides material non-public information to the Holder that
is not simultaneously filed in a Current Report on Form 8-K and the Holder has not agreed to receive such material non-public information,
the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality to the Company, any of its Subsidiaries
or any of their respective officers, directors, employees, affiliates or agents with respect to, or a duty to any of the foregoing
not to trade on the basis of, such material non-public information. It is expressly understood and agreed that the time of execution
specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

 

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8.                 
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended or
waived and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it,
only if the Company has obtained the written consent of the Required Holders (as defined in the Securities Purchase Agreement).

 

9.                 
SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid
or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable
shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability
of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

10.             
GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. The Company hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to the Company at the address set forth in Section 9(f) of the Securities Purchase
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. The Company
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough
of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or
other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

 

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11.             
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and
shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference
and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other
Transaction Documents shall have the meanings ascribed to such terms on the Closing Date (as defined in the Securities Purchase
Agreement) in such other Transaction Documents unless otherwise consented to in writing by the Holder.

 

12.             
DISPUTE RESOLUTION.

 

(a)              
Submission to Dispute Resolution.

 

(i)                
In the case of a dispute relating to the Exercise Price, Closing Sale Price or fair market value or the arithmetic calculation
of the number of Warrant Preferred Shares (as the case may be) (including, without limitation, a dispute relating to the determination
of any of the foregoing), the Company or the Holder (as the case may be) shall submit the dispute to the other party via facsimile
or electronic mail (A) if by the Company, within two (2) Business Days after the occurrence of the circumstances giving rise to
such dispute or (B) if by the Holder, at any time after the Holder learned of the circumstances giving rise to such dispute. If
the Holder and the Company are unable to promptly resolve such dispute relating to such Exercise Price, such Closing Sale Price
or such fair market value or such arithmetic calculation of the number of Warrant Preferred Shares (as the case may be), at any
time after the second (2nd) Business Day following such initial notice by the Company or the Holder (as the case may
be) of such dispute to the Company or the Holder (as the case may be), then the Holder may, at its sole option, select an independent,
reputable investment bank to resolve such dispute.

 

(ii)             
The Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered
in accordance with the first sentence of this Section 12 and (B) written documentation supporting its position with respect to
such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following
the date on which the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents
referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute
Documentation”) (it being understood and agreed that if either the Holder or the Company fails to so deliver all of the
Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute
Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation or other
support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on
the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless
otherwise agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither the Company
nor the Holder shall be entitled to deliver or submit any written documentation or other support to such investment bank in connection
with such dispute (other than the Required Dispute Documentation).

 

    8 

     

    

 

(iii)           
The Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company
and the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. Such
investment bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error.

 

(iv)            
Any reasonable costs and/or fees, including all reasonable attorneys’ fees of all parties and/or the reasonable fees
of the investment bank, shall be paid at the resolution of the dispute by the losing party.

 

(b)              
Miscellaneous. The Company expressly acknowledges and agrees that (i) this Section 13 constitutes an agreement to
arbitrate between the Company and the Holder (and constitutes an arbitration agreement) under the rules then in effect under §
7501, et seq. of the New York Civil Practice Law and Rules (“CPLR”) and that the Holder or the Company is authorized
to apply for an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 12,
(ii) the terms of this Warrant and each other applicable Transaction Document shall serve as the basis for the selected investment
bank’s resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized)
to make all findings, determinations and the like that such investment bank determines are required to be made by such investment
bank in connection with its resolution of such dispute, in its sole discretion, shall have the right to submit any dispute described
in this Section 12 to any state or federal court sitting in The City of New York, Borough of Manhattan in lieu of utilizing the
procedures set forth in this Section 12 and (iii) nothing in this Section 12 shall limit the Holder from obtaining any injunctive
relief or other equitable remedies (including, without limitation, with respect to any matters described in this Section 12).

 

13.             
REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this
Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents,
at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit
the right of the Holder to pursue actual and consequential damages for any failure by the Company to comply with the terms of this
Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly
provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation
thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any
other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to
all other available remedies, to specific performance and/or temporary, preliminary and permanent injunctive or other equitable
relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting
a bond or other security. The Company shall provide all information and documentation to the Holder that is requested by the Holder
to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including, without
limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon
the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect
thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

    9 

     

    

 

14.             
PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Warrant
is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or
the holder otherwise takes action to collect amounts due under this Warrant or to enforce the provisions of this Warrant or (b)
there occurs any bankruptcy, reorganization, receivership of the company or other proceedings affecting company creditors’
rights and involving a claim under this Warrant, then the Company shall pay the costs incurred by the Holder for such collection,
enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without
limitation, attorneys’ fees and disbursements. 

 

15.             
TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company,
except as may otherwise be required by Section 2(g) of the Securities Purchase Agreement.

 

16.             
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)              
“1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

(b)              
“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

(c)              
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls,
is controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control”
of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the
election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

 

(d)              
 “Attribution Parties” means, collectively, the following Persons and entities: (i) any investment vehicle,
including, any funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly
managed or advised by the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect
Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together
with the Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock
would or could be aggregated with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934
Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum
Percentage.

 

    10 

     

    

 

(e)              
“Bloomberg” means Bloomberg, L.P.

 

(f)               
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to remain closed.

 

(g)              
“Certificate of Designations” means that certain Certificate of Designation for the Series E Convertible
Preferred Stock of the Company, dated as of September [ ], 2017, as amended from time to time.

 

(h)              
 “Common Stock” means (i) the Company’s shares of common stock, $0.001 par value per share,
and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.

 

(i)                
 “Eligible Market” means The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market,
the Nasdaq Global Market, or the Principal Market.

 

(j)                
“Equity Conditions” means, with respect to an given date of determination: (i) on such applicable date
of determination one or more Registration Statements shall be effective and the prospectus contained therein shall be available
on such applicable date of determination (with, for the avoidance of doubt, any Warrant Preferred Shares previously issued pursuant
to such prospectus deemed unavailable) for the issuance to the Holder of all Warrant Preferred Shares issuable upon exercise of
this Warrant in connection with the event requiring such determination (each, the “Forced Exercise Registration Statement”);
(ii) on each day during the period beginning thirty (30) calendar days prior to the applicable date of determination and ending
on and including the applicable date of determination (the “Equity Conditions Measuring Period”), the Common
Stock (including all shares of Common Stock issuable upon conversion of the Preferred Shares then outstanding and the Warrant Preferred
Shares to be issued in the event requiring this determination) is listed or designated for quotation (as applicable) on an Eligible
Market and shall not have been suspended from trading on an Eligible Market (other than suspensions of not more than two (2) days
and occurring prior to the applicable date of determination due to business announcements by the Company) nor shall delisting or
suspension by an Eligible Market have been threatened (with a reasonable prospect of delisting occurring after giving effect to
all applicable notice, appeal, compliance and hearing periods) or reasonably likely to occur or pending as evidenced by (A) a writing
by such Eligible Market or (B) the Company falling below the minimum listing maintenance requirements of the Eligible Market on
which the Common Stock is then listed or designated for quotation (as applicable) other than as disclosed in the SEC Documents
(as defined in the Securities Purchase Agreement) prior to the Issuance Date; (iii) during the Equity Conditions Measuring Period,
the Company shall have delivered all Warrant Preferred Shares issuable upon exercise of this Warrant on a timely basis as set forth
in Section 1 hereof and all other shares of capital stock required to be delivered by the Company on a timely basis as set forth
in the other Transaction Documents; (iv) any Warrant Preferred Shares to be issued in connection with the event requiring determination
may be issued in full without violating the rules or regulations of the Eligible Market on which the Common Stock is then listed
or designated for quotation (as applicable); (v) on each day during the Equity Conditions Measuring Period, no public announcement
of a pending, proposed or intended Fundamental Transaction shall have occurred which has not been abandoned, terminated or consummated;
(vi) the Company shall have no knowledge of any fact that would reasonably be expected to cause the applicable Forced Exercise
Registration Statement to not be effective or the prospectus contained therein to not be available for the issuance of all Warrant
Preferred Shares issuable upon exercise of this Warrant in connection with the event requiring such determination and no Current
Information Failure exists or is continuing; (vii) the Holder shall not be in possession of any material, non-public information
provided to any of them by the Company, any of its Subsidiaries or any of their respective affiliates, employees, officers, representatives,
agents or the like; (viii) on each day during the Equity Conditions Measuring Period, the Company otherwise shall have been in
compliance with each, and shall not have breached any representation or warranty in any material respect (other than representations
or warranties subject to material adverse effect or materiality, which may not be breached in any respect) or any covenant or other
term or condition of any Transaction Document, including, without limitation, the Company shall not have failed to timely make
any payment pursuant to any Transaction Document; (ix) there shall not have occurred any Volume Failure or Price Failure as of
such applicable date of determination; (x) on the applicable date of determination (A) no Authorized Share Failure shall exist
or be continuing and (x) all of the Preferred Shares issued pursuant to the Securities Purchase Agreement and issuable upon exercise
of the SPA Preferred Warrants and (y) all shares of Common Stock issuable upon conversion of such Warrant Preferred Shares and
Warrant Preferred Shares are available under the certificate of incorporation of the Company and reserved by the Company to be
issued pursuant to the terms of the Certificate of Designations and (B) all Warrant Preferred Shares to be issued in connection
with the event requiring this determination may be issued in full without resulting in an Authorized Share Failure; (xi) on each
day during the Equity Conditions Measuring Period, there shall not have occurred and there shall not exist a Triggering Event or
an event that with the passage of time or giving of notice would constitute a Triggering Event; (xii) the issuance of the shares
of Common Stock issuable upon conversion of such Warrant Preferred Shares and the Preferred Shares then outstanding (assuming,
for such purpose, that all the Preferred Shares then outstanding and such Warrant Preferred Shares are converted at the Alternate
Conversion Price (as defined in the Certificate of Designations) then in effect and without regard to any limitations on conversion
set forth in the Certificate of Designations) will not result in an Authorized Share Failure (as defined in the Certificate of
Designations); (xiii) the shares of Common Stock issuable upon conversion of all of the Preferred Shares issued pursuant to the
Securities Purchase Agreement and issuable upon exercise of the SPA Preferred Warrants are duly authorized and listed and eligible
for trading without restriction on an Eligible Market; and (xiv) the Company shall have obtained the Stockholder Approval (as defined
in the Securities Purchase Agreement), which shall remain in full force and effect as of such date of determination.

 

    11 

     

    

 

(k)              
“Equity Conditions Failure” means that on each day during the period commencing twenty (20) Trading Days
prior to the applicable Forced Exercise Notice Date through and including the applicable Forced Exercise Date, the Equity Conditions
have not been satisfied (or waived in writing by the Holder).

 

(l)                
 “Expiration Date” means the date that is the third anniversary of the Issuance Date (or such later date
as extended by written consent of the Company and the Holder) or, if such date falls on a day other than a Trading Day or on which
trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday.

 

(m)            
 “Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through
subsidiaries, Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not
the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of
all or substantially all of the properties or assets of the Company or any of its “significant subsidiaries” (as defined
in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make,
or allow the Company to be subject to or have its Voting Stock be subject to or party to one or more Subject Entities making, a
purchase, tender or exchange offer that is accepted by the holders of at least either (w) 35% of the outstanding shares of Series
A Preferred Stock of the Company, (x) 50% of the outstanding shares of Voting Stock, (y) 50% of the outstanding shares of Voting
Stock calculated as if any shares of Voting Stock held by all Subject Entities making or party to, or Affiliated with any Subject
Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares of Voting
Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such purchase,
tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50%
of the outstanding shares of Voting Stock, or (iv) consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject
Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (w) at least 35% of the outstanding
shares of Voting Stock of the Company, (x) at least 50% of the outstanding shares of Voting Stock, (y) at least 50% of the outstanding
shares of Voting Stock calculated as if any shares of Voting Stock held by all the Subject Entities making or party to, or Affiliated
with any Subject Entity making or party to, such stock purchase agreement or other business combination were not outstanding; or
(z) such number of shares of Voting Stock such that the Subject Entities become collectively the beneficial owners (as defined
in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Voting Stock, or (v) reorganize, recapitalize or
reclassify its Voting Stock, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or
otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate
to be or become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether
through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Voting
Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization,
recapitalization or reclassification or otherwise in any manner whatsoever, of either (w) at least 35% of the outstanding shares
of Voting Stock of the Company, (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Voting
Stock, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock not held by all
such Subject Entities as of the date of the Preferred Shares calculated as if any shares of Voting Stock held by all such Subject
Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding
shares of Voting Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory
short form merger or other transaction requiring other shareholders of the Company to surrender their shares of Voting Stock without
approval of the shareholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner
to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition
or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.

 

    12 

     

    

 

(n)              
 “Group” means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined
in Rule 13d-5 thereunder.

 

(o)              
 “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person
and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

(p)              
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(q)              
“Preferred Shares” means the Series E Convertible Preferred Stock.

 

(r)               
“Price Failure” means, with respect to a particular date of determination, the VWAP of the Common Stock
on any Trading Day during any Trading Day during the twenty (20) Trading Day period ending on the Trading Day immediately preceding
such date of determination fails to exceed $0.65 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations
or other similar transactions occurring after the Subscription Date). All such determinations to be appropriately adjusted for
any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during any such measuring
period.

 

(s)               
“Principal Market” means the Nasdaq Capital Market.

 

(t)                
 “SEC” means the United States Securities and Exchange Commission or the successor thereto.

 

(u)              
“Series E Convertible Preferred Stock” means (i) the Company's Series E Convertible Preferred Stock,
$0.001 par value per share, issued and issuable pursuant to the Series E Certificate of Designations and (ii) any capital stock
into which such Series E Convertible Preferred Stock shall have been changed or any share capital resulting from a reclassification
of such Series E Convertible Preferred Stock.

 

    13 

     

    

 

(v)              
 “Subject Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person,
Persons or Group.

 

(w)            
“Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting
from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such
Fundamental Transaction shall have been entered into.

 

(x)              
“Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations relating
to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise
designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price or trading volume
determinations relating to the Common Stock, any day on which The New York Stock Exchange (or any successor thereto) is open for
trading of securities.

 

(y)              
“Voting Stock” of a Person means the Common Stock and each series or other class of capital stock of
such Person pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least
a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock
of any series or other class or classes shall have or might have voting power by reason of the happening of any contingency).

 

(z)              
 “Volume Failure” means, with respect to a particular date of determination, the aggregate daily dollar
trading volume (as reported on Bloomberg) of the Common Stock on the Principal Market on at least five (5) Trading Days during
the twenty (20) Trading Day period ending on the Trading Day immediately preceding such date of determination (such period, the
“Volume Failure Measuring Period”), is less than $200,000.

 

(a)              
 “VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security
on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal
securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New
York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “HP” function (set to weighted
average) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter
market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending
at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security
by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market
makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If
the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date
shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to
agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 12.
All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization
or other similar transaction during such period.

 

[signature page follows]

 

    14 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Series E Convertible Preferred Stock to be duly executed as of the Issuance Date
set out above.

 

	 	MagneGas Corporation
	 	 	 
	 	By:	 
	 	 	Name: Ermanno Santilli

Title: Chief Executive Officer

 

     

     

    

 

EXHIBIT A

 

EXERCISE
NOTICE

 

TO BE EXECUTED
BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE SERIES E CONVERTIBLE PREFERRED STOCK

 

MAGNEGAS
CORPORATION

 

The undersigned holder
hereby elects to exercise the Warrant to Purchase Series E Convertible Preferred Stock, No. E-[ ] (the “Warrant”)
of MagneGas Corporation, a Delaware corporation (the “Company”) as specified below. Capitalized terms used herein
and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.       Payment
of Exercise Price. The Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

2.       Delivery
of Warrant Preferred Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________ shares
of Series E Convertible Preferred Stock in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its
benefit, as a certificate to the following name and to the following address:

 

	Issue to:	 
	 	 
	 	 

 

Date: _____________ __,           

 

	 	 
	Name of Registered Holder	 

 

	By: 	 	 
	 	Name:	 
	 	Title:	 
	 	 	 

	 	Tax ID:	 	 

 

	 	Facsimile:	 	 

 

	 	E-mail Address:EX-10.1

 Exhibit 10.1 

COMPROMISE SETTLEMENT AGREEMENT 

This Compromise Settlement Agreement (this “Agreement”) is executed on one hand by Compass Bank (“Trustee”), in its
capacity as Trustee of the San Juan Basin Royalty Trust (the “Trust”) and on the other hand by Burlington Resources Oil & Gas Company LP (“Burlington Resources”) and its general partner, BROG GP LLC (“BROG”)
(Burlington Resources and BROG are jointly referred to herein as “Burlington”), effective as of January 1, 2017 (the “Effective Date”). The Trust and Burlington are sometimes referred to collectively as the
“Parties” and individually as a “Party.” 
  

	I.	Burlington Releasees. 

 The releasees who
shall benefit from the promises, covenants, representations, and warranties made by the Trust are as follows: 
  

	 	A.	Burlington; 

  

	 	B.	all agents, employees, members, managers, shareholders, directors, officers, fiduciaries, attorneys, auditors or other representatives of Burlington; and 

 

	 	C.	all current or former subsidiaries, parents, or affiliated entities of Burlington and all successors or assigns of Burlington, whether or not they have conducted, been requested to conduct, or had any activity or
dealings associated with the Trust, including, without limitation, ConocoPhillips Company. 

 As used in this Agreement, “Burlington
Releasees” shall be construed as broadly as possible to include all of the foregoing individuals or entities named or described in this Section. 
  

	II.	Trust Releasees. 

 The releasees who shall
benefit from the promises, covenants, representations, and warranties made by Burlington are as follows: 
  

	 	A.	The Trust; 

  

	 	B.	The Trustee; 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 1 

	 	C.	all agents, employees, members, managers, shareholders, unit holders, directors, officers, fiduciaries, attorneys, auditors or other representatives of the Trust and the Trustee; and 

 

	 	D.	all subsidiary, parent or affiliated entities of the Trust or the Trustee and all successors or assigns of the Trust or the Trustee, whether or not they have conducted, been requested to conduct, or had any activity or
dealings associated with Burlington. 

 As used in this Agreement, “Trust Releasees” shall be construed as broadly as possible to
include all of the foregoing individuals or entities named or described in this Section. 
  

	III.	Recitals. 

 A. The Trustee is the successor
trustee of the Trust under the Net Overriding Royalty Conveyance dated effective November 1, 1980, from Southland Royalty Company to the original trustee, The Fort Worth National Bank (the “Conveyance”). 

B. On or about September 4, 1996, Bank One, Texas, N.A., which was then acting as the trustee of the Trust, entered into a Settlement
Agreement with Burlington Resources Oil & Gas Company, successor to Southland Royalty Company, for purposes of resolving pending litigation and disputes related to the Conveyance (the “1996 Settlement Agreement”). The 1996
Settlement Agreement settled the then-pending disputes related to the Conveyance. 
 C. Burlington was a successor to Southland Royalty
Company’s rights under the Conveyance; as such, it was responsible for the calculation and payment of the net overriding royalty interest (the “Royalty”) conveyed to the Trust under the Conveyance when the 1996 Settlement Agreement
was entered and continuously thereafter through December 31, 2016. 
 D. In or around October 2004, the Trust and Burlington agreed to
arbitrate several disputes related to the calculation and payment of Royalty. Following an evidentiary hearing, the arbitrator entered an Arbitration Award on or about October 11, 2005 (the “2005 Arbitration Award”). 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 2 

 E. Following the entry of the 2005 Arbitration Award, in accordance with its rights under the
Conveyance and the 1996 Settlement Agreement, the Trust engaged auditors who performed yearly audits and submitted audit exceptions related to Burlington’s calculation and payment of Royalty. Disputes arose between the Trust and Burlington
regarding certain of the audit exceptions and the manner in which Burlington calculated and paid the Royalty. 
 F. As a result of the
aforementioned disputes, the Trustee filed suit on July 31, 2014, against Burlington in the 1st Judicial District Court, Santa Fe County, New Mexico, styled Compass Bank, in its Capacity
as Trustee of the San Juan Basin Royalty Trust v. Burlington Resources Oil & Gas Company LP and BROG GP LLC, No. D-101-CV-2014-01765 (the “Lawsuit”). 

G. The claims in the Lawsuit included disputed and/or unresolved audit exceptions filed by the Trust for the audit years January 1, 2007
through December 31, 2012. 
 H. As the Lawsuit progressed, and settlement negotiations ensued, the Trust also asserted audit
exceptions each year from January 1, 2013 through December 31, 2016, some of which Burlington also disputed (collectively, the Trust’s audit exceptions from January 1, 2007 through December 31, 2016 are referred to as the
“Audit Exceptions”). 
 I. In 2017, Burlington notified the Trust that the Office of Natural Resource Revenue (“ONRR”)
had threatened or asserted claims against Burlington alleging that Burlington had underpaid royalties on gas production from certain federal leases based on the ONRR’s interpretation of regulatory rules. The ONRR audited several company-owned
and third-party systems and plants in New Mexico and ordered Burlington and/or ConocoPhillips 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 3 

 
Company to pay additional royalties for production going back to 2002, specifically including ONRR Order Nos. 07-00011.001 (Global Compression),
08-00836.003 (Manzanaras/Milagro), 08-00836.004 (Kutz/Lybrook), 08-00836.005 (San Juan Gas Plant), 08836.006 (Ignacio), 378
(Order to Report #378 (Data Mining – Federal Properties)), and 414 (Order to Report #414 (Data Mining – Indian Properties)) (the “ONRR Disputes”). Burlington disputes the ONRR’s claims,1 but contends that the Trust would be responsible under the Conveyance to contribute or reimburse Burlington for the Trust’s proportionate share of any payment of additional royalties allegedly
due on production from January 2002 through December 2016 in connection with the ONRR Disputes, including any payment made in accordance with any potential future judgment, settlement or other disposition of the ONRR Disputes. 

J. Burlington at all times contested, disputed and denied the Trust’s allegations and claims in the Lawsuit and the Audit Exceptions.

 K. The Trust similarly contested, disputed and denied that Burlington would be entitled to recoup from the Trust a portion of any
additional royalties paid on production from January 2002 through December 2016 as the result of any potential future judgment, settlement or disposition of the ONRR Disputes. 

L. Effective as of January 1, 2017, Burlington sold and conveyed its San Juan Basin assets, including but not limited to all of its
interests covered by the Conveyance, to Hilcorp San Juan, L.P. (“Hilcorp”). The asset sale to Hilcorp closed on or about July 31, 2017. Under the terms of the asset sale, Burlington retained liability, if any, for the ONRR Disputes
arising from or involving royalty payments prior to January 1, 2017. Hilcorp acquired liability, if any, for the ONRR Disputes arising or involving royalty payments on or after January 1, 2017. 

 

	1 	For example, in addition to regulatory contests, ConocoPhillips Company has filed Case No. 16-cv-486 MCA/SCY, styled ConocoPhillips
Company v. Sarah Roffey Jewell, Secretary of the Interior, et al., in a New Mexico federal court challenging the ONRR’s San Juan Global Compression Order. 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 4 

 M. The Conveyance allows Burlington to accrue money for oil and gas property taxes, capital
expenses and lease operating expenses. The Trust, through its auditors, requested that Burlington issue a gross credit in the amount of $1,000,000 based on a reversal of the amounts accrued for capital expenses. That request has been granted and the
credit was issued to the Trust. A similar request related to accruals for lease operating expenses was denied, and the Trust has agreed to release and withdraw that request. With respect to oil and gas property tax accruals (which totaled at least
$154,786.47 as of the July 2017 “Quarterly Pre Trust Royalty Information” report provided by Burlington), Burlington has transferred the credit to Hilcorp. 

N. As a result of thorough discussions and negotiations, and in order to avoid the uncertainty, time, and expense of continued litigation, the
Parties determined it is in their best interests to resolve the Lawsuit and all other claims and disputes between them through December 31, 2016, including but not limited to any and all claims and disputes related to or arising out of the
Conveyance, the 1996 Settlement Agreement, the 2005 Arbitration Award, the Lawsuit, the Audit Exceptions and the ONRR Disputes, on the terms and conditions set forth in this Agreement. Furthermore, taking into consideration Burlington’s asset
sale to Hilcorp, the Parties determined that it was in their respective best interests to completely sever their relationship and resolve all issues between them prior to January 1, 2017, which is the intent of this Agreement. 

O. The San Juan Basin Amended and Restated Royalty Trust Indenture effective as of December 12, 2007 (the “Amended and Restated
Indenture”), expressly authorizes the Trustee, among other things, to take such action as in its judgment is necessary or advisable best 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 5 

 
to achieve the purposes of the Trust, including the authority to settle disputes with respect to the terms of the Conveyance, and to prosecute and settle any claims of or against the Trust and to
waive or release rights of any kind upon any evidence by it deemed sufficient. After consulting with counsel and thoroughly evaluating and assessing the evidence, costs and risks associated with the Audit Disputes, the Lawsuit and the ONRR Disputes,
the Trustee has determined it is in the best interests of the Trust to compromise and settle those disputes by entering into this Agreement pursuant to the authority granted it under the Amended and Restated Indenture. 

 

	IV.	Settlement Provisions. 

 NOW, THEREFORE, in consideration of the
foregoing recitals and the mutual promises, representations, undertakings and releases set forth in this Agreement, which the Parties acknowledge constitute good and valuable consideration, the Parties agree as follows: 

 

	 	A.	Additional Consideration. 

  

	 	1.	Settlement Payment. No later than ten (10) business days after the dismissal of the Lawsuit as set forth below, Burlington shall pay or cause to be paid to the Trust the sum of SEVEN MILLION FIVE
HUNDRED THOUSAND AND NO/100 DOLLARS ($7,500,000.000) (the “Settlement Payment”). The Settlement Payment shall be delivered to the Trust by wire transfer according to the following instructions: 

Compass Bank 
 15 South 20th
Street 
 Birmingham, AL 35233 

Phone (713) 831-5878 
 ABA
#062001186 
 Account #070-3040-1 

FFC: A/C #1604 n/o San Juan Basin Royalty Trust 

Attn: Wealth Management Group—Josh Peterson 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 6 

	 	2.	Dismissal of the Lawsuit. No later than three (3) business days following its receipt of a fully-executed copy of this Agreement, the Trustee will file an agreed motion to dismiss the Lawsuit with
prejudice along with a proposed agreed order of dismissal with prejudice in substantially the same forms as those attached hereto as Exhibits A and B. 

 

	 	3.	 Release of Burlington Releasees. The Trust and the Trustee completely release and forever discharge
each and all of the Burlington Releasees from any and all past or present claims, rights, damages, costs, benefits, expenses, interest, attorney fees, and compensation of any nature whatsoever, whether known or unknown, whether asserted or
unasserted, whether based upon tort, contract, statute, common law, or any other theory or basis of recovery, and whether for compensatory, statutory, or exemplary damages or for equitable relief, which existed or may have existed prior to
January 1, 2017, or which the Trust or the Trustee held, may have held or may in the future hold arising out of or related to any acts, events or omissions occurring prior to January 1, 2017, including but not limited to any such claims,
damages or causes of action in any way related to or arising out of the Conveyance, the 1996 Settlement Agreement, the 2005 Arbitration Award, the Lawsuit, the Audit Exceptions, the calculation and payment of Royalty on production prior to
January 1, 2017, and the ONRR Disputes, SAVE AND EXCEPT for the obligations created or preserved by this Agreement. This is intended to be and shall be construed as a general release providing the Burlington

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 7 

	 	
Releasees the greatest protection allowable under the law as to the released claims and, as such, is intended to apply to all claims accruing before or after January 1, 2017 relating to
production prior to January 1, 2017 or Royalty on such production, regardless of whether they are known or unknown as of the Effective Date. Notwithstanding the foregoing, it is expressly understood and agreed that the Trust and Trustee are not
waiving or releasing, and expressly retain the right to assert, any audit exception related to production on or after January 1, 2017, and Royalty associated with such production, including any such exception based upon the same arguments or
positions previously asserted in the Audit Exceptions. All such arguments and positions are fully preserved and retained for any future audit exceptions that may be asserted for audit years beginning January 1, 2017. By way of example, but not
by limitation, the Trust and Trustee are retaining all arguments and reserve the right to assert future audit exceptions relating to recurring issues at issue in the Lawsuit such as charges for salt water disposal, planners and schedulers,
production optimizers, 24/7 control room operators, and HSE personnel and training. Furthermore, notwithstanding Section I. above and Section IV.J. below, there shall be no prior period adjustments (credits or debits) to Royalty or other
payments due to or from the Trust related to production, expenses, costs, assessments or claims made by others that relate to production prior to January 1, 2017, or anything that occurred, whether known or not, prior to January 1, 2017.

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 8 

	 	4.	 Release of Trust Releasees. Burlington, for itself and its subsidiary, parent, or affiliated
entities (including but not limited to ConocoPhillips) completely releases and forever discharges each and all of the Trust Releasees from any and all past or present claims, rights, damages, costs, benefits, expenses, interest, attorney fees, and
compensation of any nature whatsoever, whether known or unknown, whether asserted or unasserted, whether based upon tort, contract, statute, common law, or any other theory or basis of recovery, and whether for compensatory, statutory, or exemplary
damages or for equitable relief, which existed or may have existed prior to January 1, 2017, or which Burlington held, may have held or may in the future hold arising out of or related to any acts, events or omissions occurring prior to
January 1, 2017, including but not limited to any such claims, damages or causes of action in any way related to or arising out of the Conveyance, the 1996 Settlement Agreement, the 2005 Arbitration Award, the Lawsuit, the Audit Exceptions, the
calculation and payment of Royalty on production prior to January 1, 2017, and the ONRR Disputes, SAVE AND EXCEPT for the obligations created or preserved by this Agreement. This is intended to be and shall be construed as a general release
providing the Trust Releasees the greatest protection allowable under the law as to the released claims and, as such, is intended to apply to all claims accruing before or after January 1, 2017 relating to production prior to January 1,
2017 or Royalty on such production, regardless of whether they are known or unknown as of the 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 9 

	 	
Effective Date. It is expressly understood and agreed that (a) this release is intended to and does hereby release the Trust from any future liability to contribute to the payment of any
settlement, judgment, order or other resolution of the ONRR Disputes for time periods prior to January 1, 2017, and (b) Burlington and its successors or assigns (expressly excluding Hilcorp), if any, are assuming any and all liability to
pay the Trust’s proportionate share of any eventual resolution by settlement, judgment or otherwise of the ONRR Disputes related to royalty payments or production prior to January 1, 2017. 

 

	 	5.	Limited Indemnity for the ONRR Disputes. Burlington agrees to INDEMNIFY AND DEFEND the Trust Releasees from and against any and all claims, demands, obligations or causes of action made by Hilcorp, any
successor or assign of Burlington or Hilcorp, or anyone claiming by, through or under Burlington or ConocoPhillips Company, related to the pre-January 1, 2017, ONRR Disputes released herein, together with any costs, expenses or attorney fees
incurred as a result. 

  

	 	6.	Representations and Warranties by Burlington. Burlington represents and warrants that it has retained all rights and obligations to the ONNR Disputes related to production that occurred prior to
January 1, 2017, such that Burlington’s successors and assigns cannot seek reimbursement or offset from the Trust for payments related to the ONNR Disputes. Burlington further represents and warrants that all monies it has accrued for oil
and gas property taxes at any time prior to the Effective Date of this Agreement have been transferred to Hilcorp.  

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 10 

	 	7.	No Modification of Prior Agreements. Nothing in this Agreement is intended to or does in any way alter, modify or amend the Conveyance, 1996 Settlement Agreement or the precedential effect, if any, of the
2005 Arbitration Award. 

 B. Warranty on Capacity. Each Party represents and warrants that the individual
signing this Agreement on its behalf has the full legal capacity and authority to make the promises, covenants, representations, and warranties contained herein. The Parties further represent and warrant that they have not sold, assigned,
transferred, conveyed, or otherwise disposed of any of the claims, demands, obligations, or causes of action released in this Agreement. 

C. Severability. Should a court of competent jurisdiction hold that any provision of this Agreement is unenforceable, the
remaining provisions shall remain enforceable. The Parties shall renegotiate in good faith the failed provision so as to effectuate the purpose of and to conform to the law regarding such provision. 

D. Controlling Law. This Agreement shall be construed, interpreted, and enforced in accordance with New Mexico law without
reference to choice-of-law rules. 
 E. Integration. This Agreement is fully integrated, represents the entire understanding of
the Parties, and supersedes all prior oral, written and/or electronic discussions, negotiations, and agreements concerning the subject matter of this Agreement. There are no other agreements, representations, promises, or negotiations that have not
been expressly embodied herein with respect to the subject matter hereof. The recitals of this Agreement are material and contractual. 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 11 

 F. Amendment. This Agreement may be amended or modified only by a writing executed
by each Party to be charged with the amendment. 
 G. No Admissions. This Agreement is entered into for the purpose of buying
peace and settling disputed claims. By entering into this Agreement, no Party acknowledges liability. All such liability is expressly denied. 

H. Legal Advice. Each Party acknowledges and represents that it received independent legal advice and has not relied upon any
representation of any other Party or any other Party’s agents, employees, representatives, or counsel on any subject contained in this Agreement or otherwise, other than as expressly set forth in this Agreement. 

I. Captions. The section titles appearing in this Agreement are for convenience only and shall not by themselves determine the
construction of this Agreement. 
 J. No Third Party Beneficiaries. This Agreement only affects matters/disputes between the
Parties, and is in no way intended by the Parties to benefit or otherwise affect any third person or entity. 
 K.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Any signature to this Agreement delivered by facsimile
or e-mail shall be deemed original for all purposes. 
 L. Drafting. This Agreement was drafted by the Parties and their
counsel and shall not be construed against any Party or group of Parties as the drafter. 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 12 

 M. Terms in Context. Terms stated in the masculine, feminine, or neuter gender
shall include the others, and singular and plural terms shall include the other, as the context requires in order to effectuate the full purposes of this Agreement. 

N. Notice. Any notice to a Party sent under this Agreement shall be deemed delivered to that Party if sent to that Party’s
address as identified below (unless that Party or any assignee of that Party provides written notice of another address) by e-mail and one or both of the following means: certified mail, return receipt requested; or courier-receipted hand delivery.

 If to the Trust: 
 Compass Bank,
Trustee for the San Juan Basin Royalty Trust 
 2200 Post Oak Blvd., Floor 18 

Houston, Texas 77056 
 ATTN: Josh
Peterson, Senior Trust Officer 
 Email: josh.peterson@bbva.com 

and 
 Timothy D. Howell 

Email: thowell@mph-law.com 

Moses, Palmer & Howell, L.L.P. 

309 W. 7th Street, Suite 815 

Fort Worth, Texas 76102 
 If to
Burlington: 
 Burlington Resources Oil & Gas Company LP 

935 N. Eldridge Pkwy 
 Houston, TX
77079 
 ATTN: General Counsel’s Office 

Email: Reagan.kott@conocophillips.com 

and 
 Michael Campbell 

Campbell Trial Law LLC 
 150 E.
Barcelona 
 Santa Fe, New Mexico 87505 

Email: mcampbell@campbelltriallaw.com 

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 13 

 EACH PARTY REPRESENTS THAT IT HAS CAREFULLY READ THIS AGREEMENT; THAT THIS AGREEMENT HAS BEEN
FULLY EXPLAINED TO IT BY COUNSEL OF ITS CHOICE; THAT IT FULLY UNDERSTANDS THE FINAL AND BINDING EFFECT OF THIS AGREEMENT; THAT THE ONLY PROMISES MADE TO IT TO SIGN THIS AGREEMENT ARE THOSE STATED ABOVE; AND THAT IT IS SIGNING THIS AGREEMENT
VOLUNTARILY AND WITHOUT ANY DURESS OR INFLUENCE BY AN OPPOSING PARTY OR AN OPPOSING PARTY’S ATTORNEY. 
 EXECUTED on the date(s)
written below to be effective as of the Effective Date. 
  

			
	 COMPASS BANK, in its capacity as Trustee

for the San Juan Basin Royalty Trust

		
	By:	 	/s/ Joshua R. Peterson
	Name:	 	Joshua R. Peterson
	Title:	 	Vice President
	Date:	 	September 13, 2017
	
	BURLINGTON RESOURCES OIL & GAS COMPANY LP by BROG, GP LLC, its general partner
		
	By:	 	/s/ J.E. Carlton
	Name:	 	J.E. Carlton
	Title:	 	Vice President
	Date:	 	September 11, 2017

  
  

COMPROMISE SETTLEMENT AGREEMENT – PAGE 14 

 EXHIBIT A 

STATE OF NEW MEXICO 
 COUNTY OF SANTA FE 

1ST JUDICIAL DISTRICT COURT 

COMPASS BANK, in its capacity as 
 Trustee of the San
Juan Basin Royalty Trust, 
 Plaintiff, 

No. D-101-CV-2014-01765 

v. 
 BURLINGTON RESOURCES 

OIL & GAS COMPANY LP and 
 BROG GP LLC,

 Defendants. 

AGREED MOTION TO DISMISS WITH PREJUDICE 

Plaintiff Compass Bank, in its capacity as Trustee of the San Juan Basin Royalty Trust (“Plaintiff”) and defendants Burlington
Resources Oil & Gas Company LP and BROG GP LLC (“Defendants”) hereby move to dismiss this lawsuit with prejudice, and in support show the Court as follows: 

Plaintiff and Defendants represent that all matters of fact and things in controversy between them in this lawsuit have been fully and finally
resolved. Plaintiff further represents to the Court that it no longer wishes to prosecute its claims against Defendants. Accordingly, the parties request the Court to enter an order of dismissal with prejudice in this matter, with taxable costs to
be paid by the party incurring the same. 
 WHEREFORE, PREMISES CONSIDERED, Plaintiff and Defendants request the Court to enter an order
dismissing this cause, and any claims that could have been asserted herein, with prejudice. 

  
  

AGREED MOTION TO DISMISS WITH PREJUDICE—PAGE 1 

 
	
	Respectfully submitted,
	
	/s/ Timothy D. Howell
	Shayne D. Moses, admitted pro hac vice
	Texas State Bar No. 14578980
	Timothy D. Howell, admitted pro hac vice
	Texas State Bar No. 24002315
	MOSES, PALMER & HOWELL, L.L.P.
	309 W. 7th Street, Suite 815
	Fort Worth, Texas 76102
	(817) 255-9100
	smoses@mph-law.com
	thowell@mph-law.com
	
	and
	
	John B. Pound
	JOHN B. POUND LLC
	505 Don Gaspar
	Santa Fe, NM 87505
	(505) 983-8060
	jbpsfnm@gmail.com
	
	Attorneys for Plaintiff
	
	and
	
	CAMPBELL TRIAL LAW LLC
	
	/s/ Michael Campbell
	Michael Campbell
	110 N. Guadalupe, Suite 6
	Santa Fe, NM 87505
	mcampbell@campbelltriallaw.com
	(505) 819-1698
	
	and
	
	Kristina Martinez
	COBERLY & MARTINEZ, LLLP
	1322 Paseo de Peralta
	Santa Fe, NM 87501
	kristina@coberlymartinez.com
	(505) 989-1029
	
	Attorneys for Defendants

  
  

AGREED MOTION TO DISMISS WITH PREJUDICE—PAGE 2 

 CERTIFICATE OF SERVICE 

This is to certify that on the              day of August, 2017, a
true and correct copy of the foregoing document has been sent by email to the following counsel of record for Defendants: 
 Michael Campbell 

CAMPBELL TRIAL LAW, LLC 
 110 N. Guadalupe, Suite 6 

Santa Fe, New Mexico 87505 
 mcampbell@campbelltriallaw.com

 Kristina Martinez 
 COBERLY & MARTINEZ LLP 

1322 Paseo de Peralta 
 Santa Fe, New Mexico 87501 

kristina@coberlymartinez.com 
  

	
	
	/s/ Timothy D. Howell
	Timothy D. Howell

  
  

AGREED MOTION TO DISMISS WITH PREJUDICE—PAGE 3 

 EXHIBIT B 

STATE OF NEW MEXICO 
 COUNTY OF SANTA FE 

1ST JUDICIAL DISTRICT COURT 

COMPASS BANK, in its capacity as 
 Trustee of the San
Juan Basin Royalty Trust, 
 Plaintiff, 

No. D-101-CV-2014-01765 

v. 
 BURLINGTON RESOURCES 

OIL & GAS COMPANY LP and 
 BROG GP LLC,

 Defendants. 

AGREED ORDER OF DISMISSAL WITH PREJUDICE 

On this day came on to be heard the Agreed Motion to Dismiss With Prejudice of plaintiff Compass Bank, in its capacity as Trustee of the San
Juan Basin Royalty Trust (“Plaintiff”) and defendants Burlington Resources Oil & Gas Company LP and BROG GP LLC (“Defendants”). Plaintiff and Defendants announced that their differences have been resolved and requested
that this cause of action be dismissed with prejudice to the re-filing of same. The Court finds that all matters in dispute herein between Plaintiff and Defendants have been fully and finally resolved, and thus finds that the motion to dismiss
should be granted in all respects. 
 IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that this cause be and the same is hereby DISMISSED WITH
PREJUDICE. 
 IT IS FURTHER ORDERED that all taxable costs are to be paid by the party incurring same. 

SIGNED this              day of
                                         
                   , 2017. 
  

	
	
	   

	Honorable Sarah Singleton
	Presiding Judge (Pro Tem)

  
  

AGREED ORDER OF DISMISSAL WITH PREJUDICE—PAGE 1 

	
	AGREED AS TO FORM:
	
	/s/ Timothy D. Howell
	Shayne D. Moses, admitted pro hac vice
	Texas State Bar No. 14578980
	Timothy D. Howell, admitted pro hac vice
	Texas State Bar No. 24002315
	Moses, Palmer & Howell, L.L.P.
	309 W. 7th Street, Suite 815
	Fort Worth, Texas 76102
	(817) 255-9100
	smoses@mph-law.com
	thowell@mph-law.com
	
	and
	
	John B. Pound
	John B. Pound LLC
	505 Don Gaspar
	Santa Fe, NM 87505
	(505) 983-8060
	jbpsfnm@gmail.com
	
	Attorneys for Plaintiff
	
	and
	
	Campbell Trial Law LLC
	
	/s/ Michael Campbell
	Michael Campbell
	110 N. Guadalupe, Suite 6
	Santa Fe, NM 87505
	mcampbell@campbelltriallaw.com
	(505) 819-1698
	
	and
	
	Kristina Martinez
	COBERLY & MARTINEZ, LLLP
	1322 Paseo de Peralta
	Santa Fe, NM 87501
	kristina@coberlymartinez.com
	(505) 989-1029
	
	Attorneys for Defendants

  
  

AGREED ORDER OF DISMISSAL WITH PREJUDICE—PAGE 2 

 PARTIES ENTITLED TO NOTICE 

JOHN B. POUND 
 505 Don Gaspar 

Santa Fe, New Mexico 87505 
 (505) 983-8060 

Fax: (505) 986-1028 
 jbpsfnm@gmail.com 

and 
 Shayne D. Moses, Esq. 

Timothy D. Howell, Esq. 
 MOSES, PALMER & HOWELL, L.L.P.

 309 W. 7th Street, Suite 815 

Fort Worth, TX 76102 
 (817) 255-9100 

Fax: (817) 255-9199 
 smoses@mph-law.com 

thowell@mph-law.com 
 ATTORNEYS FOR PLAINTIFF, 

COMPASS BANK, IN ITS CAPACITY AS TRUSTEE 
 OF THE SAN
JUAN BASIN ROYALTY TRUST 
 Michael Campbell 
 CAMPBELL
TRIAL LAW, LLC 
 110 N. Guadalupe, Suite 6 
 Santa Fe, New
Mexico 87505 
 mcampbell@campbelltriallaw.com 
 and

 Kristina Martinez 
 COBERLY & MARTINEZ, LLLP 

1322 Paseo de Peralta 
 Santa Fe, NM 87501 

kristina@coberlymartinez.com 
 ATTORNEYS FOR
DEFENDANTS, 
 BURLINGTON RESOURCES OIL & GAS and 

BROG GP LLC 

  
  

AGREED ORDER OF DISMISSAL WITH PREJUDICE—PAGE 3

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