Document:

GULFSLOPE ENERGY, INC. - 8-K

 

Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of June 21, 2019, by and among GULFSLOPE ENERGY, INC.,
a Delaware corporation (the “Company”), and YA II PN, Ltd., a Cayman Islands exempt limited partnership
(the “Investor”).

 

WHEREAS:

 

A.       In
connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to the Investor up to $3,000,000 of secured convertible debentures (the “Convertible Debentures”),
which shall be convertible into shares of the Company’s common stock, par value $0.001 (the “Common Stock”)
(as converted, the “Conversion Shares”) and warrants (the “Warrants”) to purchase up to 50.0
million shares of Common Stock (as exercised, the “Warrant Shares”). Capitalized terms not defined herein shall
have the meaning ascribed to them in the Securities Purchase Agreement.

 

B.       To
induce the Investors to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “Securities Act”), and applicable state securities laws and other rights as provided for herein.

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1.       DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

(a)       “Effectiveness Deadline” means, with respect to a Registration Statement filed hereunder, the 120th calendar
day following the date hereof, provided, however, in the event the Company is notified by the U.S. Securities and Exchange Commission
(“SEC”) that one of the Registration Statements, as defined below, will not be reviewed or is no longer subject
to further review and comments, the Effectiveness Deadline as to such Registration Statement shall be the fifth calendar day following
the date on which the Company is so notified if such date precedes the date required above.

 

(b)       “Filing Deadline” means, with respect to a Registration Statement required hereunder, the 30th calendar
day following the date hereof.

 

    

    

    

 

(c)       “Person” means a corporation, a limited liability company, an association, a partnership, an organization,
a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

(d)       “Prospectus” means the prospectus included in a Registration Statement (including, without limitation,
a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement
in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

(e)       “Registrable Securities” means all of (i) the Conversion Shares issuable upon conversion of the Convertible
Debentures, (ii) the Warrant Shares issuable upon exercise of the Warrants, (iii) any additional shares issuable in connection
with any anti-dilution provisions of the Convertible Debentures or the Warrants (without giving effect to any limitations on exercise
set forth in the Convertible Debentures or the Warrants, as applicable) and (iv) any shares of Common Stock issued or issuable
with respect to the Conversion Shares or the Warrant Shares as a result of any stock split, dividend or other distribution, recapitalization
or similar event or otherwise (in each case without giving effect to any limitations on exercise set forth in the Convertible Debentures
or the Warrants, as applicable).

 

(f)        “Registration Statement” means the registration statements required to be filed hereunder (including
any additional registration statements contemplated by Section 2(c)), including (in each case) the Prospectus, amendments and supplements
to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

(g)       “Required Registration Amount” means (i) with respect to the initial Registration Statement at least
156,000,000 shares of Common Stock issued or to be issued upon conversion of the Convertible Debentures and 50,000,000 shares of
Common Stock issued or to be issued upon exercise of the Warrants, and (ii) with respect to subsequent Registration Statements
at least such number of shares of Common Stock as shall equal up to 300% of the maximum number of shares of Common Stock issuable
upon conversion of all Convertible Debentures then outstanding (assuming for purposes hereof that (x) such Convertible Debentures
are convertible at the Conversion Price (as defined therein) in effect as of the date of determination, and (y) any such conversion
shall not take into account any limitations on the conversion of the Convertible Debentures set forth in the Statement of Designations),
in each case subject to any cutback set forth in Section 2(d).

 

(h)        “Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose
and effect as such Rule.

 

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2.       REGISTRATION.

 

(a)        The Company’s registration obligations set forth in this Section 2 including its obligations to file Registration
Statements, obtain effectiveness of Registration Statements, and maintain the continuous effectiveness of Registration Statement
that have been declared effective shall begin on the date hereof and continue until all the Registrable Securities have been sold
or may permanently be sold without any restrictions pursuant to Rule 144, as determined by the counsel to the Company pursuant
to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected Holders
(the “Registration Period”).

 

(b)        Subject to the terms and conditions of this Agreement, the Company shall, on or prior to the Filing Deadline, prepare and
file with the SEC a Registration Statement on Form S-3 (or, if the Company is not then eligible, on Form S-1) covering the resale
by the Investor of Registrable Securities. Each Registration Statement prepared pursuant hereto shall register for resale at least
the number of shares of Common Stock equal to the Required Registration Amount as of date the Registration Statement is initially
filed with the SEC. Each Registration Statement shall contain the “Selling Stockholders” and “Plan
of Distribution” sections in substantially the form attached hereto as Exhibit A and contain all the required
disclosures set forth on Exhibit B. The Company shall use its best efforts to have each Registration Statement declared
effective by the SEC as soon as practicable, but in no event later than the Effectiveness Deadline. By 9:30 am on the business
day following the date of effectiveness, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the
final Prospectus to be used in connection with sales pursuant to such Registration Statement. Prior to the filing of the Registration
Statement with the SEC, the Company shall furnish a draft of the Registration Statement to the Investor for their review and comment.
The Investor shall furnish comments on the Registration Statement to the Company within twenty-four (24) hours of the receipt thereof
from the Company.

 

(c)        During the Registration Period, the Company shall (i) promptly prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to a Registration Statement and the Prospectus used in connection with a Registration
Statement, which Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep
such Registration Statement effective at all times during the Registration Period, (ii) prepare and file with the SEC additional
Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (iii) cause
the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement),
and as so supplemented or amended to be filed pursuant to Rule 424; (iv) respond as promptly as reasonably possible to any comments
received from the SEC with respect to a Registration Statement or any amendment thereto and as promptly as reasonably possible
provide the Investors true and complete copies of all correspondence from and to the SEC relating to a Registration Statement (provided
that the Company may excise any information contained therein which would constitute material non-public information as to any
Investor which has not executed a confidentiality agreement with the Company); and (v) comply with the provisions of the Securities
Act with respect to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such
time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by
the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration
Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 2(c)) by reason of the
Company’s filing a report on Form 10-K, Form 10-Q, or Form 8-K or any analogous report under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), the Company shall incorporate such report by reference into the Registration
Statement, if applicable, or shall file such amendments or supplements with the SEC on the same day on which the Exchange Act report
is filed which created the requirement for the Company to amend or supplement the Registration Statement.

 

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(d)        Reduction of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein,
in the event that the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration
Statement in order to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall be
obligated to include in such Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw
a Registration Statement and refile a new Registration Statement in order to rely on Rule 415) only such limited portion of the
Registrable Securities as the SEC shall permit. Any Registrable Securities that are excluded in accordance with the foregoing terms
are hereinafter referred to as “Cut Back Securities.” To the extent Cut Back Securities exist, as soon as may
be permitted by the SEC, the Company shall be required to file a Registration Statement covering the resale of the Cut Back Securities
(subject also to the terms of this Section) and shall use best efforts to cause such Registration Statement to be declared effective
as promptly as practicable thereafter.

 

3.       RELATED OBLIGATIONS.

 

(a)        The Company shall, not less than three (3) Trading Days prior to the filing of each Registration Statement and not less
than one (1) Trading Day prior to the filing of any related amendments and supplements to all Registration Statements (except for
annual reports on Form 10-K), furnish to each Investor copies of all such documents proposed to be filed, which documents (other
than those incorporated or deemed to be incorporated by reference) will be subject to the reasonable and prompt review of such
Investors, The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto
to which the Investors shall reasonably object in good faith; provided that, the Company is notified of such objection in
writing no later than two (2) Trading Days after the Investors have been so furnished copies of a Registration Statement.

 

(b)       The Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without
charge, (i) at least one (1) copy of such Registration Statement as declared effective by the SEC and any amendment(s) thereto,
including financial statements and schedules, all documents incorporated therein by reference, all exhibits and each preliminary
prospectus, (ii) ten (10) copies of the final prospectus included in such Registration Statement and all amendments and supplements
thereto (or such other number of copies as such Investor may reasonably request) and (iii) such other documents, which are not
publicly available through EDGAR, as such Investor may reasonably request from time to time in order to facilitate the disposition
of the Registrable Securities owned by such Investor.

 

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(c)        The Company shall use its best efforts to (i) register and qualify the Registrable Securities covered by a Registration
Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as any Investor
reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration
Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times
during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (w) make any change to its articles of incorporation or by-laws, (x) qualify to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3(c), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify each Investor who
holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration
or qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction
in the United States or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(d)       As promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in
writing of the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading (provided that in no event
shall such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and deliver ten (10) copies of such supplement or amendment to each Investor.
The Company shall also promptly notify each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification
of such effectiveness shall be delivered to each Investor by facsimile on the same day of such effectiveness), (ii) of any request
by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of
the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

(e)       The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of
a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
within the United States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension
at the earliest possible moment and to notify each Investor who holds Registrable Securities being sold of the issuance of such
order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

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(f)         If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could
reasonably be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall furnish
to such Investor, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates
as an Investor may reasonably request (i) a letter, dated such date, from the Company’s independent certified public accountants
in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement,
in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Investors. Upon the request
of the documents discussed above pursuant to this Section 3(f), the Investor shall provide documents to the Company typically provided
by an underwriter of its securities in form, scope and substance as is customarily given in an underwritten public offering, including
an opinion of counsel representing the Investor for purposes of such Registration Statement, addressed to the Company.

 

(g)        If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could
reasonably be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall make available
for inspection by (i) any Investor and (ii) one (1) firm of accountants or other agents retained by the Investors (collectively,
the “Inspectors”) all pertinent financial and other records, and pertinent corporate documents and properties
of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector, and
cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree, and each Investor hereby agrees, to hold in strict confidence and shall not
make any disclosure (except to an Investor) or use any Record or other information which the Company determines in good faith to
be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary
to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the Securities Act,
(b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body
of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by
disclosure in violation of this or any other agreement of which the Inspector and the Investor has knowledge. Each Investor agrees
that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction
or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.

 

(h)        The
Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the
disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement,
(iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or
governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other
than by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall, upon learning
that disclosure of such information concerning an Investor is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at the
Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such
information.

 

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(i)         The Company shall either cause all the Registrable Securities covered by a Registration Statement (i) to be listed on each
securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing
of such Registrable Securities is then permitted under the rules of such exchange or (ii) to be included for quotation on
the Nasdaq Capital Markets for such Registrable Securities. The Company shall pay all fees and expenses in connection with satisfying
its obligation under this Section 3(i).

 

(j)         The Company shall cooperate with each Investor who holds Registrable Securities being offered and, to the extent applicable,
to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts,
as the case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(k)        The Company shall use its best efforts to cause the Registrable Securities covered by the applicable Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

(l)         The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

(m)       Within two (2) business days after a Registration Statement which covers Registrable Securities is declared effective by
the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investor whose Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit C.

 

(n)        The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of
Registrable Securities pursuant to a Registration Statement.

 

4.       OBLIGATIONS OF THE INVESTORS.

 

(a)        The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described
in Section 3(d) such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement
covering such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(d) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the
contrary, the Company shall cause its transfer agent to deliver unlegended certificates for shares of Common Stock to a transferee
of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities
with respect to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the
Company of the happening of any event of the kind described in Section 3(d) and for which the Investor has not yet settled.

 

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(b)       The
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.       EXPENSES OF REGISTRATION.

 

All expenses incurred
in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration,
listing and qualifications fees, printers, legal and accounting fees, except legal fees of Investor’s counsel associated
with the review of the Registration Statement and any comment letters issued by the SEC relating to such Registration Statement,
shall be paid by the Company.

 

6.       INDEMNIFICATION.

 

With respect to Registrable
Securities which are included in a Registration Statement under this Agreement:

 

(a)        To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor,
the directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within
the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, joint or several (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading;
(ii) any untrue statement or alleged untrue statement of a material fact contained in any final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act,
any other law, including, without limitation, any state securities law, or any rule or regulation there under relating to the offer
or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii)
being, collectively, “Violations”). The Company shall reimburse the Investors and each such controlling person
promptly as such expenses are incurred and are due and payable, for any legal fees or disbursements or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (x) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company
by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment
thereof or supplement thereto; (y) shall not be available to the extent such Claim is based on a failure of the Investor to deliver
or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company
pursuant to Section 3(c); and (z) shall not apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person.

 

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(b)        In connection with a Registration Statement, the Investor agrees to severally and not jointly indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of
its officers, employees, representatives, or agents and each Person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act (each an “Indemnified Party”), against any Claim or Indemnified Damages to
which any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or is based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs
in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection
with such Registration Statement; and, subject to Section 6(d), such Investor will reimburse any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which consent
shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under this Section 6(b) for only
that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale of Registrable
Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party. Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(b) with respect to any prospectus shall not inure to the benefit of any Indemnified Party
if the untrue statement or omission of material fact contained in the prospectus was corrected and such new prospectus was delivered
to each Investor prior to such Investor’s use of the prospectus to which the Claim relates.

 

(c)        Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement
of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses of not more than one (1) counsel for such Indemnified Person or Indemnified Party to be
paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel
in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense
or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party
or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release
from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

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(d)        The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)        The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7.        CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received
by such seller from the sale of such Registrable Securities.

 

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8.       REPORTS UNDER THE EXCHANGE ACT.

 

With a view to making
available to the Investors the benefits of Rule 144 promulgated under the Securities Act or any similar rule or regulation of the
SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (“Rule
144”), and as a material inducement to the Investor’s purchase of the Convertible Debentures, the Company represents,
warrants, and covenants to the following:

 

(a)        The Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required
reports under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period
that the issuer was required to file such reports), other than Form 8-K reports

 

(b)        During the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section
13 or 15(d) of the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the
Securities Purchase Agreement) and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder.

 

(c)        The Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i)
a written statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information
as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.       AMENDMENT OF REGISTRATION RIGHTS.

 

Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and Investors who then hold at least two-thirds (2/3) of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 9 shall be binding upon each Investor and the
Company. No such amendment shall be effective to the extent that it applies to fewer than all of the holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision
of any of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

10.     MISCELLANEOUS.

 

(a)        A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such
Registrable Securities or owns the right to receive the Registrable Securities. If the Company receives conflicting instructions,
notices or elections from two (2) or more Persons with respect to the same Registrable Securities, the Company shall act upon the
basis of instructions, notice or election received from the registered owner of such Registrable Securities.

 

    - 11 - 

     

    

 

(b)        No Piggyback on Registrations. The Company shall not file any other registration statements on Form S-3 until the
initial Registration Statement required hereunder is declared effective by the SEC, provided that this Section 10(b) shall not
prohibit the Company from filing amendments to registration statements already filed.

 

(c)        Piggy-Back Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable
Securities and the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for
its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option
or other employee benefit plans, then the Company shall send to each Investor a written notice of such determination and, if within
fifteen (15) days after the date of such notice, any such Investor shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such Investor requests to be registered; provided,
however, that, the Company shall not be required to register any Registrable Securities pursuant to this Section 10(c) that
are eligible for resale pursuant to Rule 144 promulgated under the Securities Act or that are the subject of a then effective Registration
Statement.

 

Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have
been delivered pursuant to the notice provisions of the Securities Purchase Agreement or to such other address and/or facsimile
number and/or to the attention of such other person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by a
courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(d)        Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, shall not operate as a waiver thereof.

 

    - 12 - 

     

    

 

(e)        The laws of the State of New York shall govern all issues concerning the relative rights of the Company and the Investors
as its stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this Agreement
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 jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the
Supreme Court of the State of New York, sitting in New York County, New York and federal courts for the Southern District of New
York sitting New York, New York, 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. Each party 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 such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)         This Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties
hereto.

 

(g)        The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning
hereof.

 

(h)        This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto as
an attachment to an email or by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

 

(i)         Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(j)         The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent
and no rules of strict construction will be applied against any party.

 

(k)        This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns,
and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    - 13 - 

     

    

 

IN WITNESS WHEREOF,
the Investor and the Company have caused their signature page to this Registration Rights Agreement to be duly executed as of the
date first above written.

 

	 	COMPANY:
	 	GULFSLOPE ENERGY, INC.
	 	 	 
	 	By: 	
	 	Name:  	John N. Seitz
	 	Title: 	Chief Executive Office

 

	 	INVESTOR:
	 	YA II PN, Ltd.
	 	 	 
	 	By:	 Yorkville Advisors Global, LP
	 	Its:	 Investment Manager

 

	 	By:	 Yorkville Advisors Global II, LLC	 
	 	Its:	
        

        

         General Partner

        
	 

 

	 	By:	  
	 	Name:	 Matt Beckman
	 	Title:	 Manager

 

[Signature
Page to Registration Rights Agreement]

 

    - 14 - 

     

    

 

EXHIBIT A

 

SELLING STOCKHOLDERS

 

AND PLAN OF DISTRIBUTION

 

    

    

    

 

EXHIBIT B

 

OTHER DISCLOSURES 

 

[See attachment provided]

    16

    

    

 

EXHIBIT C

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Attention: 

 

		Re:	GULFSLOPE ENERGY, INC.

 

Ladies and Gentlemen:

 

We are counsel to GULFSLOPE
ENERGY, INC., a Delaware corporation (the “Company”), and have represented the Company in connection with that
certain Securities Purchase Agreement (the “Securities Purchase Agreement”) entered into by and among the Company
and the Investors named therein (collectively, the “Investors”) pursuant to which the Company issued to the
Investors up to $3,000,000 of secured convertible debentures (the “Convertible Debentures”), which are convertible
into its Common Stock, par value $0.001 per share (the “Common Stock”). Pursuant to the Purchase Agreement,
the Company also has entered into a Registration Rights Agreement with the Investors (the “Registration Rights Agreement”)
pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration
Rights Agreement) under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the
Company’s obligations under the Registration Rights Agreement, on ____________ ____, the Company filed a Registration Statement
on Form ________ (File No. 333-_____________) (the “Registration Statement”) with the Securities and Exchange
Commission (the “SEC”) relating to the Registrable Securities which names each of the Investors as a selling
stockholder there under.

 

In connection with
the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE
OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the
SEC and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration Statement.

 

	 	Very truly yours,	 
	 	 	 
	 	[Law Firm]	 
	 	 	 
	 	By:		 

  

 

cc:           [LIST NAMES
OF Investors]

 

    17GULFSLOPE ENERGY, INC. - 8-K

 

Exhibit 10.4

 

WARRANT

 

THE SECURITIES REPRESENTED BY THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF
COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES
LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

GULFSLOPE ENERGY, INC.

 

Warrant To Purchase Common Stock

 

	Warrant No.: GPSE-1	Number of Shares:	50,000,000
	 	Warrant Exercise Price:	$0.04
	 	Expiration Date:	June 21, 2024

 

Date of Issuance: June 21, 2019

 

GULFSLOPE ENERGY, INC., a Delaware
corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, YA II PN, LTD. (the “Holder”), the registered holder hereof or its
permitted assigns, is entitled, subject to the terms set forth below, to purchase from the Company upon surrender of this Warrant,
at any time or times on or after the date hereof, but not after 11:59 P.M. Eastern Time on the Expiration Date (as defined
herein) up to 50,000,000 fully paid and nonassessable shares of Common Stock (as defined herein) of the Company (the “Warrant
Shares”) at the exercise price per share provided in Section 1(b) below or as subsequently adjusted; provided, however,
that in no event shall the holder be entitled to exercise this Warrant for a number of Warrant Shares in excess of that number
of Warrant Shares which, upon giving effect to such exercise, would cause the aggregate number of shares of Common Stock beneficially
owned by the holder and its affiliates to exceed 4.99% of the outstanding shares of the Common Stock following such exercise, (however,
such restriction may be waived by Holder (but only as to itself and not to any other holder) upon not less than 65 days prior notice
to the Company). For purposes of the foregoing proviso, the aggregate number of shares of Common Stock beneficially owned by the
holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect
to which the determination of such proviso is being made, but shall exclude shares of Common Stock which would be issuable upon
(i) exercise of the remaining, unexercised Warrants beneficially owned by the holder and its affiliates and (ii) exercise
or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by the holder
and its affiliates (including, without limitation, any convertible notes or preferred stock) subject to a limitation on conversion
or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph,
beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. For
purposes of this Warrant, in determining the number of outstanding shares of Common Stock a holder may rely on the number of outstanding
shares of Common Stock as reflected in (1) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, (2) a more
recent public announcement by the Company or (3) any other notice by the Company or its transfer agent setting forth the number
of shares of Common Stock outstanding. Upon the written request of any holder, the Company shall promptly, but in no event later
than 1 Business Day following the receipt of such notice, confirm in writing to any such holder the number of shares of Common
Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to
the exercise of Warrants (as defined below) by such holder and its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported.

 

     

     

    

 

Section 1. 

 

(a) This Warrant is
issued pursuant to the Securities Purchase Agreement (“Securities Purchase Agreement”) of even date hereof
between the Company and the Holder or issued in exchange or substitution thereafter or replacement thereof. Each Capitalized
term used, and not otherwise defined herein, shall have the meaning ascribed thereto in the Securities Purchase
Agreement.

 

(b) Definitions.
The following words and terms as used in this Warrant shall have the following meanings:

 

(i)          “Approved Stock Plan” means a stock option plan that has been approved by the Board of Directors of the
Company, pursuant to which the Company’s securities may be issued only to any employee, officer, director or third party
service providers in the normal course of business, for services provided to the Company.

 

(ii)        
 “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.

 

(iii)       
“Closing Bid Price” means the closing bid price of Common Stock as quoted on the Principal Market (as
reported by Bloomberg, LP (“Bloomberg”) through its “Volume at Price” function).

 

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

 

(v)         “Common Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock actually
outstanding at such time.

 

(vi)       
“Event of Default” means an event of default under the Securities Purchase Agreement or the Convertible
Debenture issued in connection therewith.

 

    2

     

    

 

(vii)      
“Excluded Securities” means, (a) shares issued or deemed to have been issued by the Company pursuant
to an Approved Stock Plan, (b) shares of Common Stock issued or deemed to be issued by the Company upon the conversion, exchange
or exercise of any right, option, obligation or security outstanding on the date prior to date of the Securities Purchase Agreement
as disclosed in Schedule 3(e) therein, provided that the terms of such right, option, obligation or security are not amended or
otherwise modified on or after the date of the Securities Purchase Agreement, and provided that the conversion price, exchange
price, exercise price or other purchase price is not reduced, adjusted or otherwise modified and the number of shares of Common
Stock issued or issuable is not increased (whether by operation of, or in accordance with, the relevant governing documents or
otherwise) on or after the date of the Securities Purchase Agreement, and (c) the shares of Common Stock issued or deemed
to be issued by the Company upon conversion of the Convertible Debenture or exercise of the Warrants and (d) Shares issued to employees,
officers, directors, or service providers consistent with past practices in the normal course of business.

 

(viii)     
“Expiration Date” means the date set forth on the first page of this Warrant.

 

(ix)       
“Issuance Date” means the date hereof.

 

(x)        
“Options” means any rights, warrants or options to subscribe for or purchase Common Stock or convertible
securities.

 

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

 

(xii)      
“Primary Market” means the OTCQB–MKT.

 

(xiii)     
“Securities Act” means the Securities Act of 1933, as amended.

 

(xiv)     
“Warrant” means this Warrant and all Warrants issued in exchange, transfer or replacement thereof.

 

(xv)      
“Warrant Exercise Price” shall be $0.04 or as subsequently adjusted as provided in Section 8 hereof.

 

(c) Other
Definitional Provisions.

 

(i)         
Except as otherwise specified herein, all references herein (A) to the Company shall be deemed to include the Company’s
successors and (B) to any applicable law defined or referred to herein shall be deemed references to such applicable law as
the same may have been or may be amended or supplemented from time to time.

 

(ii)        
When used in this Warrant, the words “herein”, “hereof”, and “hereunder”
and words of similar import, shall refer to this Warrant as a whole and not to any provision of this Warrant, and the words “Section”,
“Schedule”, and “Exhibit” shall refer to Sections of, and Schedules and Exhibits to, this
Warrant unless otherwise specified.

 

    3

     

    

 

(iii)       
Whenever the context so requires, the neuter gender includes the masculine or feminine, and the singular number includes
the plural, and vice versa.

 

Section 2.          Exercise
of Warrant.

 

(a) Subject to the
terms and conditions hereof, this Warrant may be exercised by the holder hereof then registered on the books of the Company,
pro rata as hereinafter provided, at any time on any Business Day on or after the opening of business on such Business Day,
(i) commencing with the first day after the date hereof, and prior to 11:59 P.M. Eastern Time on the Expiration Date, by
delivery of a written notice, in the form of the subscription notice attached as Exhibit A hereto (the
“Exercise Notice”), of such holder’s election to exercise this Warrant, which notice shall specify
the number of Warrant Shares to be purchased, payment to the Company of an amount equal to the Warrant Exercise Price(s)
applicable to the Warrant Shares being purchased, multiplied by the number of Warrant Shares (at the applicable Warrant
Exercise Price) as to which this Warrant is being exercised (plus any applicable issue or transfer taxes) (the
“Aggregate Exercise Price”) in cash or wire transfer of immediately available funds and the surrender of
this Warrant (or an indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction)
to a common carrier for overnight delivery to the Company as soon as practicable following such date (“Cash
Basis”) or (ii) commencing with the 6-month anniversary of the issuance of this Warrant, and prior to
11:59 P.M. Eastern Time on the Expiration Date, if at the time of exercise, the Warrant Shares are not subject to an
effective registration statement or if an Event of Default has occurred, by delivering an Exercise Notice and in lieu of
making payment of the Aggregate Exercise Price in cash or wire transfer, elect instead to receive upon such exercise the
“Net Number” of shares of Common Stock determined according to the following formula (the “Cashless
Exercise”):

 

	 	Net Number =	(A x B) – (A x C)	 
	 	 	B	 

 

For purposes of the foregoing
formula:

 

A = the total number of Warrant Shares with respect
to which this Warrant is then being exercised.

 

B = the Closing Bid Price of the Common Stock on the
date of exercise of the Warrant.

 

C = the Warrant Exercise Price then in effect for the
applicable Warrant Shares at the time of such exercise.

 

    4

     

    

 

In the event of any
exercise of the rights represented by this Warrant in compliance with this Section 2, the Company shall on or before the 3rd
Business Day following the date of receipt of the Exercise Notice, the Aggregate Exercise Price and this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or destruction) and the receipt of the representations
of the holder specified in Section 6 hereof, if requested by the Company (the “Exercise Delivery Documents”),
and if the Common Stock is DTC eligible, credit such aggregate number of shares of Common Stock to which the holder shall be entitled
to the holder’s or its designee’s balance account with The Depository Trust Company; provided, however, if the holder
who submitted the Exercise Notice requested physical delivery of any or all of the Warrant Shares, or, if the Common Stock is not
DTC eligible then the Company shall, on or before the 3rd Business Day following receipt of the Exercise Delivery Documents,
issue and surrender to a common carrier for overnight delivery to the address specified in the Exercise Notice, a certificate,
registered in the name of the holder, for the number of shares of Common Stock to which the holder shall be entitled pursuant to
such request. Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to in clause (i) or (ii) above the
holder of this Warrant shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with
respect to which this Warrant has been exercised. In the case of a dispute as to the determination of the Warrant Exercise Price,
the Closing Bid Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the holder the number
of Warrant Shares that is not disputed and shall submit the disputed determinations or arithmetic calculations to the holder via
facsimile within 1 Business Day of receipt of the holder’s Exercise Notice.

 

(b) 
If the holder and the Company are unable to agree upon the determination of the Warrant Exercise Price or arithmetic calculation
of the Warrant Shares within 1 day of such disputed determination or arithmetic calculation being submitted to the holder, then
the Company shall immediately submit via electronic mail (i) the disputed determination of the Warrant Exercise Price or the Closing
Bid Price to an independent, reputable investment banking firm or (ii) the disputed arithmetic calculation of the Warrant Shares
to its independent, outside accountant. The Company shall cause the investment banking firm or the accountant, as the case may
be, to perform the determinations or calculations and notify the Company and the holder of the results no later than 48 hours from
the time it receives the disputed determinations or calculations. Such investment banking firm’s or accountant’s determination
or calculation, as the case may be, shall be deemed conclusive absent manifest error.

 

(c)  
Unless the rights represented by this Warrant shall have expired or shall have been fully exercised, the Company shall,
as soon as practicable and in no event later than 5 Business Days after any exercise and at its own expense, issue a new Warrant
identical in all respects to this Warrant exercised except it shall represent rights to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant exercised, less the number of Warrant Shares with respect to which such Warrant
is exercised.

 

(d) 
No fractional Warrant Shares are to be issued upon any pro rata exercise of this Warrant, but rather the number of Warrant
Shares issued upon such exercise of this Warrant shall be rounded up or down to the nearest whole number.

 

(e)  
If the Company or its Transfer Agent shall fail for any reason or for no reason to issue to the holder within 5 days of
receipt of the Exercise Delivery Documents, a certificate for the number of Warrant Shares to which the holder is entitled or to
credit the holder’s balance account with The Depository Trust Company for such number of Warrant Shares to which the holder
is entitled upon the holder’s exercise of this Warrant, the Company shall, in addition to any other remedies under this Warrant
or otherwise available to such holder, pay as additional damages in cash to such holder on each day the issuance of such certificate
for Warrant Shares is not timely effected an amount equal to 0.025% of the product of (A) the sum of the number of Warrant Shares
not issued to the holder on a timely basis and to which the holder is entitled, and (B) the Closing Bid Price of the Common Stock
for the trading day immediately preceding the last possible date which the Company could have issued such Common Stock to the holder
without violating this Section 2.

 

    5

     

    

 

(f)  
If within 5 days after the Company’s receipt of the Exercise Delivery Documents, the Company fails to deliver a new
Warrant to the holder for the number of Warrant Shares to which such holder is entitled pursuant to Section 2 hereof, then, in
addition to any other available remedies under this Warrant, or otherwise available to such holder, the Company shall pay as additional
damages in cash to such holder on each day after such 5th day that such delivery of such new Warrant is not timely effected
in an amount equal to 0.25% of the product of (A) the number of Warrant Shares represented by the portion of this Warrant
which is not being exercised and (B) the Closing Bid Price of the Common Stock for the trading day immediately preceding the
last possible date which the Company could have issued such Warrant to the holder without violating this Section 2.

 

Section 3.          Covenants
as to Common Stock. The Company hereby covenants and agrees as follows:

 

(a)  
This Warrant is, and any Warrants issued in substitution for or replacement of this Warrant will upon issuance be, duly
authorized and validly issued.

 

(b) 
All Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance,
be validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof.

 

(c)  
During the period within which the rights represented by this Warrant may be exercised, the Company will at all times have
authorized and reserved at least 100% of the number of shares of Common Stock needed to provide for the exercise of the rights
then represented by this Warrant and the par value of said shares will at all times be less than or equal to the applicable Warrant
Exercise Price. If at any time the Company does not have a sufficient number of shares of Common Stock authorized and available,
then the Company shall call and hold a special meeting of its stockholders within 60 days of that time for the sole purpose of
increasing the number of authorized shares of Common Stock.

 

(d) 
If at any time after the date hereof the Company shall file a registration statement, the Company shall include the Warrant
Shares issuable to the holder, pursuant to the terms of this Warrant and shall maintain, so long as any other shares of Common
Stock shall be so listed, such listing of all Warrant Shares from time to time issuable upon the exercise of this Warrant; and
the Company shall so list on each national securities exchange or automated quotation system, as the case may be, and shall maintain
such listing of, any other shares of capital stock of the Company issuable upon the exercise of this Warrant if and so long as
any shares of the same class shall be listed on such national securities exchange or automated quotation system.

 

    6

     

    

 

(e)  
The Company will not, by amendment of its Articles of Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed by it hereunder, but will at all times in good faith assist in the carrying out
of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant against dilution or other impairment, consistent
with the tenor and purpose of this Warrant. The Company will not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant above the Warrant Exercise Price then in effect, and (ii) will take all such actions as
may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant.

 

(f)  
This Warrant will be binding upon any entity succeeding to the Company by merger, consolidation or acquisition of all or
substantially all of the Company’s assets.

 

Section 4.          Taxes.
The Company shall pay any and all taxes, except any applicable withholding, which may be payable with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant.

 

Section 5.         Warrant
Holder Not Deemed a Stockholder. Except as otherwise specifically provided herein, no holder, as such, of this Warrant shall
be entitled to vote or receive dividends or be deemed the holder of shares of capital stock of the Company for any purpose, nor
shall anything contained in this Warrant be construed to confer upon the holder hereof, as such, 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 this Warrant of the Warrant Shares which he or she 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 such holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the
Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 5, the
Company will provide the holder of this Warrant 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.

 

Section 6.         Representations
of Holder. The holder of this Warrant, by the acceptance hereof, represents that it is acquiring this Warrant and the Warrant
Shares for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or
distribution of this Warrant or the Warrant Shares, except pursuant to sales registered or exempted under the Securities Act; provided,
however, that by making the representations herein, the holder does not agree to hold this Warrant or any of the Warrant Shares
for any minimum or other specific term and reserves the right to dispose of this Warrant and the Warrant Shares at any time in
accordance with or pursuant to a registration statement or an exemption under the Securities Act. The holder of this Warrant further
represents, by acceptance hereof, that, as of this date, such holder is an “accredited investor” as such term is defined
in Rule 501(a)(1) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act (an “Accredited
Investor”). Upon exercise of this Warrant the holder shall, if requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the Warrant Shares so purchased are being acquired solely for the holder’s own account
and not as a nominee for any other party, for investment, and not with a view toward distribution or resale and that such holder
is an Accredited Investor. If such holder cannot make such representations because they would be factually incorrect, it shall
be a condition to such holder’s exercise of this Warrant that the Company receive such other representations as the Company
considers reasonably necessary to assure the Company that the issuance of its securities upon exercise of this Warrant shall not
violate any United States or state securities laws.

 

    7

     

    

 

Section 7.          Ownership
and Transfer.

 

(a) The
Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may
designate by notice to the holder hereof), a register for this Warrant, in which the Company shall record the name and
address of the person in whose name this Warrant has been issued, as well as the name and address of each transferee. The
Company may treat the person in whose name any Warrant is registered on the register as the owner and holder thereof for all
purposes, notwithstanding any notice to the contrary, but in all events recognizing any transfers made in accordance with the
terms of this Warrant.

 

Section 8.          Adjustment
of Warrant Exercise Price. The Warrant Exercise Price of this Warrant shall be adjusted from time to time as follows:

 

(a) Anti-Dilution.
In order to prevent dilution of the purchase rights granted under this Warrant, the Warrant Exercise Price and the number of
Warrant Shares issuable upon exercise of this Warrant shall be subject to adjustment from time to time as provided in this
Section 8 (in each case, after taking into consideration any prior adjustments pursuant to this Section 8).

 

(i)         
Adjustment to Warrant Exercise Price Upon Issuance of Common Stock. Except in the case of an event described in Section
8(c), if the Company shall, at any time or from time to time after the Original Issue Date, issue or sell, or in accordance with
Section 8(e) is deemed to have issued or sold, any shares of Common Stock without consideration or for consideration per share
less than the Warrant Exercise Price in effect immediately prior to such issuance or sale (or deemed issuance or sale), then immediately
upon such issuance or sale (or deemed issuance or sale), the Warrant Exercise Price in effect immediately prior to such issuance
or sale (or deemed issuance or sale) shall be reduced (and in no event increased) to a Warrant Exercise Price equal to the quotient
obtained by dividing:

 

(a)           
the sum of (I) the product obtained by multiplying the Common Stock Deemed Outstanding immediately prior to such issuance
or sale (or deemed issuance or sale) by the Warrant Exercise Price then in effect plus (II) the aggregate consideration, if any,
received by the Company upon such issuance or sale (or deemed issuance or sale); by

 

(b)          
the sum of (I) the Common Stock Deemed Outstanding immediately prior to such issuance or sale (or deemed issuance or sale)
plus (II) the aggregate number of shares of Common Stock issued or sold (or deemed issued or sold) by the Company in such issuance
or sale (or deemed issuance or sale).

 

    8

     

    

 

(b) 
Treatment of Expired or Terminated Options or Convertible Securities. Upon the expiration or termination of any unexercised
Option (or portion thereof) or any unconverted or unexchanged convertible security (or portion thereof) for which any adjustment
(either upon its original issuance or upon a revision of its terms) was made pursuant to this Section 8 (including without limitation
upon the redemption or purchase for consideration of all or any portion of such Option or convertible security by the Company),
the Warrant Exercise Price then in effect hereunder shall forthwith be changed pursuant to the provisions of this Section 8 to
the Warrant Exercise Price which would have been in effect at the time of such expiration or termination had such unexercised Option
(or portion thereof) or unconverted or unexchanged convertible security (or portion thereof), to the extent outstanding immediately
prior to such expiration or termination, never been issued.

 

(c)  
Effect on Warrant Exercise Price of Certain Events. For purposes of determining the adjusted Warrant Exercise Price
under Section 8(a) above, the following shall be applicable:

 

(i)         
Issuance of Options. If after the date hereof, the Company in any manner grants any Options and the lowest price
per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange of
any convertible securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of
such Option for such price per share. For purposes of clarity, this Section shall not apply to any warrants issued by the Company
to the Holder or any Option or conversion or exchange of any convertible securities outstanding prior to the date hereof. For purposes
of this Section 8(b)(i), the lowest price per share for which one share of Common Stock is issuable upon exercise of such Options
or upon conversion or exchange of such convertible securities shall be equal to the sum of the lowest amounts of consideration
(if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of the Option,
upon exercise of the Option or upon conversion or exchange of any convertible security issuable upon exercise of such Option. No
further adjustment of the Warrant Exercise Price shall be made upon the actual issuance of such Common Stock or of such convertible
securities upon the exercise of such Options or upon the actual issuance of such Common Stock upon conversion or exchange of such
convertible securities.

 

(ii)        
Issuance of Convertible Securities. If the Company in any manner issues or sells any convertible securities and the
lowest price per share for which one share of Common Stock is issuable upon the conversion or exchange thereof is less than the
Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company
at the time of the issuance or sale of such convertible securities for such price per share. For the purposes of this Section 8(b)(ii),
the lowest price per share for which one share of Common Stock is issuable upon such conversion or exchange shall be equal to the
sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock
upon the issuance or sale of the convertible security and upon conversion or exchange of such convertible security. No further
adjustment of the Warrant Exercise Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange
of such convertible securities, and if any such issue or sale of such convertible securities is made upon exercise of any Options
for which adjustment of the Warrant Exercise Price had been or are to be made pursuant to other provisions of this Section 8(b),
no further adjustment of the Warrant Exercise Price shall be made by reason of such issue or sale.

 

    9

     

    

 

(iii)       
Change in Option Price or Rate of Conversion. If the purchase price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion or exchange of any convertible securities, or the rate at which any convertible securities
are convertible into or exchangeable for Common Stock changes at any time, the Warrant Exercise Price in effect at the time of
such change shall be adjusted to the Warrant Exercise Price which would have been in effect at such time had such Options or convertible
securities provided for such changed purchase price, additional consideration or changed conversion rate, as the case may be, at
the time initially granted, issued or sold and the number of Warrant Shares issuable upon exercise of this Warrant shall be correspondingly
readjusted. For purposes of this Section 8(b)(iii), if the terms of any Option or convertible security that was outstanding as
of the Issuance Date of this Warrant are changed in the manner described in the immediately preceding sentence, then such Option
or convertible security and the Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such change. No adjustment pursuant to this Section 8(b) shall be made if such adjustment would
result in an increase of the Warrant Exercise Price then in effect.

 

(iv)       
Calculation of Consideration Received. If any Common Stock, Options or convertible securities are issued or sold
or deemed to have been issued or sold for cash, the consideration received therefore will be deemed to be the net amount received
by the Company therefore. If any Common Stock, Options or convertible securities are issued or sold for a consideration other than
cash, the amount of such consideration received by the Company will be the fair value of such consideration, except where such
consideration consists of marketable securities, in which case the amount of consideration received by the Company will be the
market price of such securities on the date of receipt of such securities. If any Common Stock, Options or convertible securities
are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity,
the amount of consideration therefore will be deemed to be the fair value of such portion of the net assets and business of the
non-surviving entity as is attributable to such Common Stock, Options or convertible securities, as the case may be. The fair value
of any consideration other than cash or securities will be determined jointly by the Company and the holders of Warrants representing
at least two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants then outstanding. If such parties are unable
to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”),
the fair value of such consideration will be determined within five (5) Business Days after the tenth (10th) day
following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the holders of Warrants
representing at least two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants then outstanding. The determination
of such appraiser shall be final and binding upon all parties and the fees and expenses of such appraiser shall be borne jointly
by the Company and the holders of Warrants.

 

    10

     

    

 

(v)       
Integrated Transactions. In case any Option is issued in connection with the issue or sale of other securities of
the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by
the parties thereto, the Options will be deemed to have been issued for a consideration of $.01.

 

(vi)       
Treasury Shares. The number of shares of Common Stock outstanding at any given time does not include shares owned
or held by or for the account of the Company, and the disposition of any shares so owned or held will be considered an issue or
sale of Common Stock.

 

(vii)      
Record Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (1) to
receive a dividend or other distribution payable in Common Stock, Options or in convertible securities or (2) to subscribe
for or purchase Common Stock, Options or convertible securities, then such record date will be deemed to be the date of the issue
or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of
such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

 

(d) Adjustment
of Warrant Exercise Price upon Subdivision or Combination of Common Stock. If the Company at any time after the date of
issuance of this Warrant subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes
of its outstanding shares of Common Stock into a greater number of shares, any Warrant Exercise Price in effect immediately
prior to such subdivision will be proportionately reduced and the number of shares of Common Stock obtainable upon exercise
of this Warrant will be proportionately increased. If the Company at any time after the date of issuance of this Warrant
combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock
into a smaller number of shares, any Warrant Exercise Price in effect immediately prior to such combination will be
proportionately increased and the number of Warrant Shares issuable upon exercise of this Warrant will be proportionately
decreased. Any adjustment under this Section 8(c) shall become effective at the close of business on the date the
subdivision or combination becomes effective.

 

(e) Distribution
of Assets. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire
its assets) to holders of Common Stock, by way of return of capital or otherwise (including, without limitation, any
distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance
of this Warrant, then, in each such case:

 

(i)         
any Warrant Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination
of holders of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Warrant Exercise Price by a fraction of which (A) the numerator shall be
the Closing Sale Price of the Common Stock on the trading day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (B) the denominator
shall be the Closing Sale Price of the Common Stock on the trading day immediately preceding such record date; and

 

    11

     

    

 

(ii)        
either (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall be increased to a number of shares
equal to the number of shares of Common Stock obtainable immediately prior to the close of business on the record date fixed for
the determination of holders of Common Stock entitled to receive the Distribution multiplied by the reciprocal of the fraction
set forth in the immediately preceding clause (i), or (B) in the event that the Distribution is of common stock of a company whose
common stock is traded on a national securities exchange or a national automated quotation system, then the holder of this Warrant
shall receive an additional warrant to purchase Common Stock, the terms of which shall be identical to those of this Warrant, except
that such warrant shall be exercisable into the amount of the assets that would have been payable to the holder of this Warrant
pursuant to the Distribution had the holder exercised this Warrant immediately prior to such record date and with an exercise price
equal to the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the
terms of the immediately preceding clause (i).

 

(f) Certain
Events. If any event occurs of the type contemplated by the provisions of this Section 8 but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or
other rights with equity features), then the Company’s Board of Directors will make an appropriate adjustment in the
Warrant Exercise Price and the number of shares of Common Stock obtainable upon exercise of this Warrant so as to protect the
rights of the holders of the Warrants; provided, except as set forth in section 8(c),that no such adjustment pursuant to this
Section 8(e) will increase the Warrant Exercise Price or decrease the number of shares of Common Stock obtainable as
otherwise determined pursuant to this Section 8.

 

(g) Voluntary
Adjustments By Company. The Company may at any time during the term of this Warrant 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.

 

(h) Notices.

 

(i)        
Immediately upon any adjustment of the Warrant Exercise Price, the Company will give written notice thereof to the holder
of this Warrant, setting forth in reasonable detail, and certifying, the calculation of such adjustment.

 

(ii)        
The Company will give written notice to the holder of this Warrant at least ten (10) days prior to the date on which the
Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with
respect to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to
any Organic Change (as defined below), dissolution or liquidation, provided that such information shall be made known to the public
prior to or in conjunction with such notice being provided to such holder.

 

    12

     

    

 

(iii)       
The Company will also give written notice to the holder of this Warrant at least 10 days prior to the date on which any
Organic Change, dissolution or liquidation will take place, provided that such information shall be made known to the public prior
to or in conjunction with such notice being provided to such holder.

 

Section 9.          Purchase
Rights; Reorganization, Reclassification, Consolidation, Merger or Sale.

 

(a) In addition to
any adjustments pursuant to Section 8 above, if at any time the Company grants, issues or sells any Options, convertible
securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of
Common Stock (the “Purchase Rights”), then the holder of this Warrant will be entitled to acquire, upon
the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such holder could have acquired if such
holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights.

 

(b) Any
recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the
Company’s assets to another Person or other transaction in each case which is effected in such a way that holders of
Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with
respect to or in exchange for Common Stock is referred to herein as an “Organic Change.” Prior to the
consummation of any (i) sale of all or substantially all of the Company’s assets to an acquiring Person or (ii) other
Organic Change following which the Company is not a surviving entity, the Company will secure from the Person purchasing such
assets or the successor resulting from such Organic Change (in each case, the “Acquiring Entity”) a
written agreement (in form and substance satisfactory to the holders of Warrants representing at least two-thirds
(iii) of the Warrant Shares issuable upon exercise of the Warrants then outstanding) to deliver to each holder of
Warrants in exchange for such Warrants, a security of the Acquiring Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant and satisfactory to the holders of the Warrants (including an adjusted warrant
exercise price equal to the value for the Common Stock reflected by the terms of such consolidation, merger or sale, and
exercisable for a corresponding number of shares of Common Stock acquirable and receivable upon exercise of the
Warrants without regard to any limitations on exercise, if the value so reflected is less than any Applicable Warrant
Exercise Price immediately prior to such consolidation, merger or sale). Prior to the consummation of any other Organic
Change, the Company shall make appropriate provision (in form and substance satisfactory to the holders of Warrants
representing a majority of the Warrant Shares issuable upon exercise of the Warrants then outstanding) to insure that each of
the holders of the Warrants will thereafter have the right to acquire and receive in lieu of or in addition to (as the case
may be) the Warrant Shares immediately theretofore issuable and receivable upon the exercise of such holder’s
Warrants (without regard to any limitations on exercise), such shares of stock, securities or assets that would have
been issued or payable in such Organic Change with respect to or in exchange for the number of Warrant Shares which would
have been issuable and receivable upon the exercise of such holder’s Warrant as of the date of such Organic Change
(without taking into account any limitations or restrictions on the exercisability of this Warrant).

 

    13

     

    

 

Section 10.       Lost,
Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
on receipt of an indemnification undertaking (or, in the case of a mutilated Warrant, the Warrant), issue a new Warrant of like
denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

Section 11.       Notice.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii) 1 Business Day after
deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive
the same, or (iii) receipt, when sent by electronic mail (provided that the electronic mail transmission is not returned in error
or the sender is not otherwise notified of any error in transmission. The addresses and e-mail addresses for such communications
shall be:

 

	If to Holder:	
        YAII PN, Ltd.

        c/o Yorkville Advisors Global, LP

	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	Attention:         Mark A. Angelo
	 	Telephone:       (201) 536-5114
	 	Email: mangelo@yorkvilleadvisors.com
	 	 
	With Copy to:	Troy J. Rillo, Esq.
	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	Telephone:        (201) 536-5109
	 	Email: legal@yorkvilleadvisors.com
	 	 
	If to the Company, to:	Gulfslope Energy Inc.
	 	1331 Lamar St., Suite 1665
	 	Houston, Texas 77010
	 	Telephone: (281) 918-4103

Attention: John Malanga

E-Mail: john.malanga@gulfslope.com
	 	 
	
        With a copy to:

         
	
        Mayer Brown LLP

        700 Louisiana St., Suite 3400

        Houston, TX 77002

	 	
        Attention:        William T. Heller IV

        Telephone:       (713) 238-2684

        Email: wheller@mayerbrown.com

 

    14

     

    

 

or at such other address and/or electronic
email address and/or to the attention of such other person as the recipient party has specified by written notice given to each
other party 3 Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient
of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s computer
containing the time, date, recipient’s electronic mail address and the text of such electronic mail or (iii) provided by
a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by electronic mail
or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

Section 12.       Date.
The date of this Warrant is set forth on page 1 hereof. This Warrant, in all events, shall be wholly void and of no effect
after the close of business on the Expiration Date, except that notwithstanding any other provisions hereof, the provisions of
Section 8(b) shall continue in full force and effect after such date as to any Warrant Shares or other securities issued upon
the exercise of this Warrant.

 

Section 13.       Amendment
and Waiver. Except as otherwise provided herein, the provisions of the Warrant may be amended 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 holders of Warrants representing at least 2/3rds of the Warrant Shares issuable upon exercise of the Warrants
then outstanding; provided that, except for Section 8(d), no such action may increase the Warrant Exercise Price or decrease the
number of shares or class of stock obtainable upon exercise of any Warrant without the written consent of the holder of such Warrant.

 

Section 14.       Descriptive
Headings; Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. The corporate laws of the State of New Jersey shall govern all issues concerning
the relative rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by the internal laws of the State of New Jersey, without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of New Jersey or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New Jersey. Each party hereby irrevocably submits
to the exclusive jurisdiction of the Superior Court of the state courts sitting in Union County New Jersey and the Federal District
Court for the District of New Jersey sitting in Newark, New Jersey, for the adjudication of any dispute hereunder or in connection
herewith or therewith, 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. Each party 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 such party at the address for such notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law.

 

    15

     

    

 

Section 15.       Remedies,
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, in any other agreement between the Company and the Holder, 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 damages for any failure by the Company to comply with the terms of this Warrant. 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 an injunction restraining any breach, without the necessity
of showing economic loss and without any bond or other security being required.

 

Section 16.      Waiver
of Jury Trial. AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY WAIVE
ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
ASSOCIATED WITH THIS TRANSACTION.

 

REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK

 

    16

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be signed as of the date first set forth above.

 

	 	GULFSLOPE ENERGY INC.
	 	 
	 	By:	
	 	Name:  John N. Seitz
	 	Title:    Chief Executive
Officer

 

[Signature Page to Warrant]

 

    17

     

    

 

EXHIBIT A TO WARRANT

 

EXERCISE NOTICE

 

TO BE EXECUTED

BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

 

GULFSLOPE ENERGY, INC.

 

The undersigned holder
hereby exercises the right to purchase ______________ of the shares of Common Stock (“Warrant Shares”) of Gulfslope
Energy, Inc. (the “Company”), evidenced by the attached Warrant (the “Warrant”). Capitalized
terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

Specify Method of exercise
by check mark:

 

1. ___ Cash Exercise

 

(a) Payment
of Warrant Exercise Price. The holder shall pay the Aggregate Exercise Price of $______________ to the Company in accordance
with the terms of the Warrant.

 

(b) Delivery
of Warrant Shares. The Company shall deliver to the holder _________ Warrant Shares in accordance with the terms of
the Warrant.

 

 2. ___ Cashless
Exercise

 

(a) Payment
of Warrant Exercise Price. In lieu of making payment of the Aggregate Exercise Price, the holder elects to receive upon such
exercise the Net Number of shares of Common Stock determined in accordance with the terms of the Warrant.

 

(b) Delivery
of Warrant Shares. The Company shall deliver to the holder _________ Warrant Shares in accordance with the terms of
the Warrant.

 

Date: _______________ __, ______

 

Name of Registered Holder

 

	By:	 	 

	Name:	 	 

	Title:	 	 

 

     

     

    

 

EXHIBIT B TO WARRANT

 

FORM OF WARRANT POWER

 

FOR VALUE RECEIVED,
the undersigned does hereby assign and transfer to ________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of Gulfslope Energy, Inc. represented by warrant certificate no. _____, standing
in the name of the undersigned on the books of said corporation. The undersigned does hereby irrevocably constitute and appoint
______________, attorney to transfer the warrants of said corporation, with full power of substitution in the premises.

 

	Dated:	 	 	 

 

	 	By:	 

	 	Name:	 

	 	Title:	 

 

    B-1

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