Document:

Exhibit

Execution Version

FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

This FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of November 27, 2019, is among Lilis Energy Inc., a Nevada corporation (the “Borrower”), certain Subsidiaries of the Borrower (the “Guarantors”), BMO Harris Bank N.A. (“BMO”), as Administrative Agent for the Lenders, and the other Lenders from time to time party hereto.
Recitals
A. WHEREAS, the Borrower, the Guarantors, the Lenders party thereto and the Administrative Agent are parties to that certain Second Amended and Restated Senior Secured Revolving Credit Agreement dated as of October 10, 2018 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

B.   WHEREAS, subject to the terms and conditions set forth herein, the Lenders have agreed to make amendments to the Credit Agreement as set forth herein.

C.  NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, which include all of the Lenders party to the Credit Agreement, agree as follows:

Section 1Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this Agreement, shall have the meaning ascribed to such term in the Credit Agreement. 
Section 2    Amendments.  Subject to the occurrence of the Effective Date, the following amendments to the Credit Agreement shall be made:
2.1    Amendments to Section 1.01. 
(a)    The following definitions are hereby added to the Credit Agreement in their entirety where alphabetically appropriate, in each case, to read as follows:
“Budget” shall mean the budget delivered by the Borrower pursuant to Section 8.01(n)(ii)(B).
“Variance Period” has the meaning assigned to such term in Section 8.01(r).

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2.2     Amendment to Section 2.07(b). The first sentence of Section 2.07(b) of the Credit Agreement is hereby amended and restated to read as follows:
The Borrowing Base shall be redetermined July 1, 2019 and December 16, 2019 and thereafter, semi-annually on or about May 1st and November 1st of each year, in each case in accordance with this Section 2.07 (each such redetermination, a “Scheduled Redetermination”), and, subject to Section 2.07(d), such redetermined Borrowing Base shall become effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank(s) and the Lenders on the date of such applicable redetermination.
2.3     Amendment to Section 3.04(c)(ii)(B). Section 3.04(c)(ii)(B) of the Credit Agreement is hereby is hereby amended and restated to read as follows:
(B)     (1) with respect to any Borrowing Base Deficiency that exists (if any) upon the December 16, 2019 Scheduled Redetermination, promptly notify the Administrative Agent that it shall pay off such Borrowing Base Deficiency in not more than four equal installments and then, commencing on the 30th day after the Deficiency Date and continuing on the same day of each month for the next three (3) months thereafter (for a total of up to four (4) payment dates), prepay the Borrowings in an amount equal to one-fourth (1/4th) of such Borrowing Base Deficiency (as such Borrowing Base Deficiency may be further increased or reduced during such four (4) month period as a result of a Borrowing Base redetermination or other adjustment of the Borrowing Base pursuant to the Borrowing Base Adjustment Provisions) so that the Borrowing Base Deficiency (as such Borrowing Base Deficiency may be further increased or reduced during such four (4) month period as a result of a Borrowing Base redetermination or other adjustment of the Borrowing Base pursuant to the Borrowing Base Adjustment Provisions) is reduced to zero within 120 days of the Deficiency Date, and (2) with respect to any Borrowing Base Deficiency that exists upon any redetermination or adjustment of the Borrowing Base in accordance with Section 2.07 or Section 2.08(b) (other than the December 16, 2019 Scheduled Redetermination), promptly notify the Administrative Agent that it shall pay off such Borrowing Base Deficiency in not more than six equal installments and then, commencing on the 30th day after the Deficiency Date and continuing on the same day of each month for the next five (5) months thereafter (for a total of up to six (6) payment dates), prepay the Borrowings in an amount equal to one-sixth (1/6th) of such Borrowing Base Deficiency (as such Borrowing Base Deficiency may be further increased or reduced during such six (6) month period as a result of a Borrowing Base redetermination or other adjustment of the Borrowing Base pursuant to the Borrowing Base Adjustment Provisions) so that the Borrowing Base Deficiency (as such Borrowing Base Deficiency may be further increased or reduced during such six (6) month period as a result of a Borrowing Base redetermination or other adjustment of the Borrowing Base pursuant to the Borrowing Base Adjustment Provisions) is reduced to zero within 180 days of the Deficiency Date,
2.4     Amendment to Section 8.01. Section 8.01 of the Credit Agreement is hereby amended by inserting the following new clause (r) immediately after the presently existing clause (q): 
(r)  Variance Reports.  No later than 5:00 p.m. (New York time) on the last Business Day of each week, beginning on November 24, 2019, the Borrower shall deliver to the 

    
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Administrative Agent,  a statement of actual cash inflows and outflows, for the Borrower and the other Loan Parties on a consolidated basis, for the immediately preceding week (each such week, a “Variance Period”), together with a comparison to the Budget for the corresponding period and a detailed explanation of any variance in excess of ten percent (10%) of the projected aggregate cash expenses and disbursements for such Variance Period, as set forth in the then applicable Budget.
2.5     Amendment to Article 8. Article 8 of the Credit Agreement is hereby amended by inserting the following new Section 8.24: 
Section 8.24    Cooperation.  The Borrower will, and will cause each other Group Member to, cooperate fully with the Administrative Agent in connection with any of their ongoing financing, acquisition or divestiture efforts, including, without limitation, providing all information and documents reasonably requested by the Administrative Agent (or Lenders acting through the Administrative Agent) in connection therewith and by holding a weekly telephonic update meeting (unless otherwise agreed to by the Administrative Agent in its sole discretion), and providing each of the Administrative Agent (for the benefit of the Lenders) and their respective agents, consultants and advisors, at any time during normal business hours, upon reasonable notice, reasonable access to its employees, management, advisors, consultants and legal counsel. Anything to the contrary contained herein notwithstanding, including the immediately preceding sentence, (a) none of the Borrower or any other Group Member, nor any officer, employee or advisor thereof shall be required to provide any information which is subject to any binding confidentiality agreement which has not been entered for the express purpose of limiting disclosure to the Administrative Agent or the Lenders and (b) none of the Borrower or any other Group Member waives any right to attorney-client privilege and the attorney(s) of each of the Group Members shall not be required to provide the Administrative Agent and the Lenders and their respective agents, consultants and advisors with any information subject to attorney-client privilege or consisting of attorney work product.
Section 3     Conditions Precedent to Effective Date.  This Agreement shall become effective on the date (such date, the “Effective Date”) when each of the following conditions is satisfied (or waived) in accordance with the terms herein: 
3.1     The Administrative Agent and the Lenders, shall have received reimbursement or payment of all reasonable and documented out-of-pocket expenses required to be reimbursed or paid by the Borrower under Section 12.03 of the Credit Agreement (including, the fees, charges and disbursements of Simpson Thacher & Bartlett LLP, counsel to the Administrative Agent). 
3.2     The Administrative Agent shall have received from the Borrower, each Guarantor, and the Lenders constituting the Required Lenders, counterparts of this Agreement signed on behalf of such Persons.
3.3     As of the Effective Date, after giving effect to this Agreement, (a) the representations and warranties of each Loan Party set forth in the Credit Agreement and in each other Loan Document are true and correct in all material respects (unless already qualified by materiality in which case 

    
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such applicable representation and warranty shall be true and correct), except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) as of such earlier date and (b) no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing.
Each party hereto hereby authorizes and directs the Administrative Agent to declare the this Agreement to be effective (and the Effective Date shall occur) when it has received documents confirming or certifying, to the reasonable satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 4    Miscellaneous.
4.1    The amendments and agreements contained herein, shall not be a consent, waiver or agreement by the Administrative Agent or the Lenders of any Defaults or Events of Default, as applicable, which may exist or which may occur in the future under the Credit Agreement or any other Loan Document, or any future defaults of the same provision waived hereunder (collectively, “Violations”). Similarly, nothing contained in this Agreement shall directly or indirectly in any way whatsoever: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Credit Agreement or any other Loan Document, as the case may be, with respect to any Violations, (b) except as set forth herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument, or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument, as applicable. Nothing in this letter shall be construed to be a consent by the Administrative Agent or the Lenders to any Violations.
4.2    Confirmation.  The provisions of the Credit Agreement shall remain in full force and effect following the Effective Date.
4.3    Ratification and Affirmation; Representations and Warranties.  Each of the Guarantors and the Borrower (a) acknowledges the terms of this Agreement, (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document (including, without limitation, the Guaranteed Liabilities) and agrees that each Loan Document remains in full force and effect as expressly amended hereby, (c) certifies to the Lenders, on the Effective Date, as applicable, that, after giving effect to this Agreement and the amendments and transactions occurring on the Effective Date, (i) the representations and warranties of each Loan Party set forth in the Credit Agreement and in each other Loan Document are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty are true and correct), except to the extent such representations and warranties expressly relate to an earlier date, in which case they are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty are true and correct) as of such earlier date and (ii) no Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing, (d) acknowledges that it is a party to 

    
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certain Security Instruments securing the Secured Obligations and agrees that according to their terms the Security Instruments to which it is a party will continue in full force and effect to secure the Secured Obligations under the Loan Documents, as the same may be amended, supplemented or otherwise modified, and (e) hereby authorizes and directs any Secured Party which is a deposit bank at which accounts of any Loan Party are held to deliver to the Administrative Agent a report reflecting the balances of such accounts of the Loan Parties, as may be requested by the Administrative Agent.  
4.4    Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed a signature page of this Agreement by facsimile or email transmission shall be effective as delivery of a manually executed counterpart of this Agreement.
4.5    No Oral Agreement.  This Agreement, the Credit Agreement, the other Loan Documents and any separate letter agreement with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreement and understandings, oral or written, relating to the subject matter hereof and thereof. THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENT OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
4.6    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
4.7    Payment of Expenses.  The Borrower hereby reconfirms its obligations pursuant to Section 12.03 of the Credit Agreement. In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket expenses incurred in connection with this Agreement, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees, charges and disbursements of counsel to the Administrative Agent.
4.8    Severability.  Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof, and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
4.9    Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns in accordance with Section 12.04 of the Credit Agreement.
4.10    Loan Documents.  This Agreement is a Loan Document.

    
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4.11    GENERAL RELEASE.  
(a)    AS PART OF THE CONSIDERATION FOR THE LENDERS’ AND THE ADMINISTRATIVE AGENT’S EXECUTION OF THIS AGREEMENT, EACH LOAN PARTY, ON BEHALF OF ITSELF AND ITS SUCCESSORS, ASSIGNS, EQUITYHOLDERS, SUBSIDIARIES, AFFILIATES, OFFICERS, PARTNERS, DIRECTORS, EMPLOYEES, AGENTS AND ATTORNEYS (COLLECTIVELY, THE “RELEASING PARTIES”) HEREBY FOREVER, FULLY, UNCONDITIONALLY, AND IRREVOCABLY RELEASES, WAIVES, AND FOREVER DISCHARGES THE LENDERS, THE ADMINISTRATIVE AGENT, THE ISSUING BANKS AND EACH OF THEIR SUCCESSORS, ASSIGNS, EQUITYHOLDERS, SUBSIDIARIES, AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AND ATTORNEYS AND OTHER PROFESSIONALS (COLLECTIVELY, THE “RELEASEES”) FROM ANY AND ALL CLAIMS, LIABILITIES, OBLIGATIONS, DEBTS, DEMANDS, CAUSES OF ACTION (WHETHER AT LAW OR IN EQUITY OR OTHERWISE), DAMAGES, COSTS, ATTORNEYS’ FEES, SUITS, CONTROVERSIES, ACTS AND OMISSIONS, DEFENSES, COUNTERCLAIMS, SETOFFS, AND OTHER CLAIMS OF EVERY KIND OR NATURE WHATSOEVER, WHETHER KNOWN OR UNKNOWN, WHETHER LIQUIDATED OR UNLIQUIDATED, MATURED OR UNMATURED, FIXED OR CONTINGENT, DIRECTLY OR INDIRECTLY ARISING OUT OF, CONNECTED WITH, RESULTING FROM OR RELATED TO ANY ACT OR OMISSION UNDER ANY LOAN DOCUMENT BY ANY LENDER OR THE ADMINISTRATIVE AGENT OR ANY OTHER RELEASEE PRIOR TO THE DATE HEREOF (COLLECTIVELY, THE “CLAIMS”); PROVIDED THAT THE FOREGOING SHALL NOT RELEASE CLAIMS RESULTING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY RELEASEE AS DETERMINED BY A FINAL NON-APPEALABLE JUDGMENT OF A COURT OF COMPETENT JURISDICTION.  EACH LOAN PARTY FURTHER AGREES THAT IT SHALL NOT COMMENCE, INSTITUTE, OR PROSECUTE ANY LAWSUIT, ACTION OR OTHER PROCEEDING, WHETHER JUDICIAL, ADMINISTRATIVE OR OTHERWISE, TO COLLECT OR ENFORCE ANY CLAIM EXCEPT THAT NO LOAN PARTY SHALL HAVE ANY OBLIGATION HEREUNDER WITH RESPECT TO ANY CLAIM RESULTING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY RELEASEE AS DETERMINED BY A FINAL NON-APPEALABLE JUDGMENT OF A COURT OF COMPETENT JURISDICTION. FURTHERMORE, EACH OF THE RELEASING PARTIES HEREBY ABSOLUTELY, UNCONDITIONALLY AND IRREVOCABLY COVENANTS AND AGREES WITH AND IN FAVOR OF EACH RELEASEE THAT IT WILL NOT SUE (AT LAW, IN EQUITY, IN ANY REGULATORY PROCEEDING OR OTHERWISE) ANY RELEASEE ON THE BASIS OF ANY CLAIM RELEASED AND/OR DISCHARGED BY THE RELEASING PARTIES PURSUANT TO THIS SECTION 4.11.  IN ENTERING INTO THIS AGREEMENT, EACH OF THE RELEASING PARTIES HAS CONSULTED WITH, AND HAS BEEN REPRESENTED BY, LEGAL COUNSEL AND EXPRESSLY DISCLAIMS ANY RELIANCE ON ANY REPRESENTATIONS, ACTS OR OMISSIONS BY ANY OF THE RELEASEES AND HEREBY AGREES AND ACKNOWLEDGES THAT THE VALIDITY AND EFFECTIVENESS OF THE RELEASES SET FORTH ABOVE DO NOT DEPEND IN ANY WAY ON ANY SUCH REPRESENTATIONS, ACTS AND/OR OMISSIONS OR THE ACCURACY, COMPLETENESS OR VALIDITY THEREOF.

    
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(b)    THE PROVISIONS OF THIS SECTION 4.11 SHALL SURVIVE AND REMAIN IN FULL FORCE AND EFFECT REGARDLESS OF THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY, THE REPAYMENT OR PREPAYMENT OF ANY OF THE LOANS, OR THE TERMINATION OF THE CREDIT AGREEMENT, THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY PROVISION HEREOF OR THEREOF.
(c)    EACH RELEASING PARTY UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT THE RELEASE SET FORTH ABOVE MAY BE PLEADED AS A FULL AND COMPLETE DEFENSE AND MAY BE USED AS A BASIS FOR AN INJUNCTION AGAINST ANY ACTION, SUIT OR OTHER PROCEEDING WHICH MAY BE INSTITUTED, PROSECUTED OR ATTEMPTED IN BREACH OF THE PROVISIONS OF SUCH RELEASE. 
[Signature Pages Follow]

    
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Execution Version

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the Effective Date.
	
		
	

BORROWER:
	

LILIS ENERGY, INC.

	 
	 

	 
	 

	 
	By:   /s/ Joseph C. Daches   

	 
	Name:   Joseph C. Daches 

	 
	Title:   Chief Executive Officer, President, and 

	 
	            Chief Financial Officer

	

GUARANTORS:
	

BRUSHY RESOURCES, INC.
HURRICANE RESOURCES LLC
IMPETRO OPERATING LLC
LILIS OPERATING COMPANY, LLC
IMPETRO RESOURCES, LLC

	 
	 

	 
	 

	 
	By:   /s/ Joseph C. Daches   

	 
	Name:   Joseph C. Daches

	 
	Title:   Chief Executive Officer, President, and 

	 
	            Chief Financial Officer

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	ADMINISTRATIVE AGENT:
	BMO HARRIS BANK N.A.,  
as Administrative Agent, and a Lender

By:        /s/ Melissa Guzmann             
Name:    Melissa Guzmann 
Title:    Director

    
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	LENDERS:
	SUNTRUST BANK,  
as a Lender

By:    /s/ Benjamin L. Brown         
Name:    Benjamin L. Brown 
Title:    Director

    
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CAPITAL ONE, NATIONAL ASSOCIATION, 
as a Lender
By:        /s/ Michael P. Robinson         
Name:    Michael P. Robinson 
Title:    Vice President

    
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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender
By:        /s/ Bryan J. Matthews             
Name:    Bryan J. Matthews 
Title:    Authorized Signatory
By:        /s/ Megan Kane             
Name:    Megan Kane 
Title:    Authorized Signatory

    
007870-0083-32715760TERMINATION
AGREEMENT

 

This
Termination Agreement (this “Agreement”), dated for reference purposes as of January 29th, 2018
(the “Effective Date”), is entered into by and between Notis Global Inc., a Nevada corporation (the “Company”),
and Trava LLC, a Florida limited liability company (“Trava”). Each of the above-referenced persons or entities
is sometimes referred to as a “Party” and, collectively, as the “Parties.” Each Party agrees
that this Agreement shall be effective and binding as of the Effective Date.

 

This
Agreement is entered into based upon the following:

 

RECITALS

 

WHEREAS,
the Company and Trava are parties to that certain Management Services Agreement, dated May 30, 2017 (the “MSA”),
to which agreement EWSD I LLC, a Colorado limited liability company, and Pueblo Agriculture Supply and Equipment LLC (“PASE”),
are interested parties (collectively, the “Interested Parties”);

 

WHEREAS,
the Company and the Interested Parties (collectively, the “Company Farm Group”) are parties to a series of
10% Senior Secured Convertible Promissory Notes in favor of Trava (collectively, the “Farm Promissory Notes”),
which Farm Promissory Notes have been issued in connection with the MSA and concomitantly executed and delivered Convertible Note
Purchase Agreements (each, a “Farm NPA”);

 

WHEREAS,
the MSA was amended pursuant to the terms of certain of the more recently entered Farm NPAs;

 

WHEREAS,
each of the Company Farm Group and Trava believes that a termination of the MSA is in their respective best interests;

 

WHEREAS,
the Company and PACE (collectively, the “Company Original Group”) are parties to that certain 10% Senior Secured
Convertible Promissory Note in favor of Trava, issued as of March 10, 2016, and amended on March 16, 2017 (together, as amended,
the “Original Promissory Note”), which Original Promissory Note was issued in connection with a Convertible
Note Purchase Agreement, among the Company Farm Group and Trava (the “Original NPA”), dated March 10, 2016;
and a Security and Pledge Agreement dated March 10, 2016 (the “Security Agreement”);

 

WHEREAS,
the Parties desire to terminate the MSA on the terms and conditions set forth herein;

 

WHEREAS,
in connection with this Agreement, the Company Farm Group and Trava desire not to amend, modify, or otherwise change any of their
respective rights, duties, and obligations under each of the Farm Promissory Notes;

 

WHEREAS,
in connection with this Agreement, the Company Original Group and Trava desire not to amend, modify, or otherwise change any of
their respective rights, duties, and obligations under Original Promissory Note, the Original NPA, and the Security Agreement;

 

    	1

     

    

 

NOW,
THEREFORE, in consideration of these presents and for such other good and valuable consideration, the receipt, adequacy, and
sufficiency of which are hereby irrevocably and unconditionally acknowledged, each of the undersigned, intending to be legally
bound, agrees as follows:

 

TERMS
AND CONDITIONS

 

1.
Accuracy of Recitals

 

Each
of the undersigned severally understands, acknowledges, and agrees that the foregoing Recitals are true and correct as to such
entity and that such Recitals and the representations and warranties contained therein are part of, and incorporated into, the
Terms and Conditions section of this Agreement and that each of the undersigned is relying on such Recitals in its entering into,
executing, and delivering this Agreement.

 

2.
Termination of the MSA

 

The
Parties have agreed that, effective as of the Effective Date, the MSA shall be terminated and that no Party shall have any ongoing
rights, duties, or obligations thereunder to the other Party. Each of the Interested Parties acknowledges and agrees that neither
has any objections to the termination of the MSA and the cessation of each of the Party’s rights, duties, or obligations
thereunder.

 

3.
In Lieu Compensation and Reimbursement

 

In
connection with the termination of the MSA, as contemplated herein, and in lieu of any compensation and reimbursement that otherwise
was to have been tendered by Trava to the Company or the Interested Parties, or was to have been retained by Trava from the net
revenue to be generated by operations of the Pueblo Farm (as defined in the MSA), the undersigned agree that, on or before March
31, 2019, the Company shall tender to Trava the sum of $250,000.00 (the “In Lieu Funds”), which sum is subject
to increase as set forth in this Section 3. The genesis of the In Lieu Funds is intended to be derived from revenue to be generated
by operations of the Pueblo Farm in connection with the 2018 harvest season. The Parties specifically estimate that cultivation
on the Pueblo Farm will yield 200 kilograms of isolate in the 2018 harvest season with an estimated market price therefor of $6,500.00
per kilogram for CBD (the “Base-line Economics”). Nevertheless, the Company’s obligation to tender the
In Lieu Funds to Trava shall not be reduced even if the Pueblo Farm operations generate revenues less than an amount equivalent
to the In Lieu Funds (e.g., lower-than-expected 2018 harvest season, lower-than-estimated market price for CBD,
or otherwise). However, in the event that the Company exceeds the Base-line Economics for 200 kilograms of isolate in the 2018
harvest season from the Pueblo Farm operations, the amount of the In Lieu Funds due and payable to Trava shall be increased by
49% of such excess. The excess of the Base-line Economics shall be based upon the weighted average price per kilogram that the
Company receives from sales of CBD commencing with the first such sale through and including the last such sale of CBD from the
12 Acres from the Pueblo Farm operations for the 2018 harvest season 1.

 

 

	1	Sales
    derived from the 200 kilograms may occur in the 2019 fiscal year, but prior to March 31, 2019. 

 

    	2

     

    

 

4.
Modification to any of the Farm Promissory Notes, the Farm NPAs, the Original Promissory Note, the Original NPA, or the Security
Agreement

 

Notwithstanding
anything to the contrary set forth herein, each of the Parties severally understands, acknowledges, and agrees that, except as
may be reasonably required to effectuate the termination of the MSA, as contemplated by the provisions of this Agreement, none
of their respective rights, duties, or obligations under any of the Farm Promissory Notes, the Farm NPAs, the Original Promissory
Note, Original NPA, or the Security Agreement is modified or waived in any manner by this Agreement and that all of the terms
and conditions of each such note remains in full force and effect as of the Effective Date.

 

5.
Releases

 

Except
as to the rights, duties, obligations, representations, and warranties created by or contained in this Agreement, in the Farm
Promissory Notes, Farm NPAs, the Original Promissory Note, the Original NPA, or the Security Agreement and except as otherwise
provided expressly herein, and upon the full execution and delivery of this Agreement, the Company and the Interested Parties,
on the one hand, and Trava, on the other hand (collectively, the “Releasing Parties”), hereby release and forever
discharge each other, and each of their respective past, present, and future officers, directors, stockholders, managers, managing
agents, owners, members, employees, attorneys, insurers, principals, partners, partnerships, predecessors, successors, agents,
assigns, divisions, subsidiaries, corporate parents, corporations, limited liability companies, and partnerships, accountants,
representatives, transferees, affiliates, related entities of any kind, and all persons acting by, through, under, or in concert
with any or all of them (each, such Releasing Party’s “Respective Affiliates,”), jointly and severally,
of and from any and all rights, claims, debts, losses, demands, acts, contracts, agreements, liabilities, obligations, damages,
costs, fees (including, without limitation, all attorney, consultant and expert fees and costs), expenses, duties, breaches, actions,
lawsuits, allegations, causes of action, and/or suits of every nature, character, and description, whether known or unknown, suspected
or unsuspected, disclosed or undisclosed, legal or equitable, that the Releasing Parties or their Respective Affiliates, individually
or collectively, had or claimed to have, and/or that the Releasing Parties or their Respective Affiliates, individually or collectively,
may now, or in the future, have or claim to have, against each other, their Respective Affiliates, or any of them, that in any
way allegedly or actually arose from, or are related to, directly or indirectly, the MSA that took place on or before the Effective
Date.

 

6.
Waiver of Civil Code Section 1542

 

Because
certain of the agreements by and among some or all of the undersigned may have been entered and delivered when the Company maintained
a presence in the State of California, it is the intention of each of the undersigned that this Agreement shall be effective as
a full and final accord, satisfaction, and release of all of the claims and other matters described hereinabove (individually
and collectively, the “Released Claim(s)”). In furtherance of this intention, each of the undersigned acknowledges
and agrees that the release of Released Claims provided for in this Agreement shall extend to any and all Released Claims, whether
known or unknown, suspected or unsuspected, disclosed or undisclosed, legal or equitable, and expressly waives and relinquishes
any right that the undersigned may have under California Civil Code, Section 1542, which provides that:

 

“A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

    	3

     

    

 

Each
of the undersigned expressly waives and releases any and all rights and benefits that it has or may have under California Civil
Code, Section 1542, and any other similar law or rule in any other jurisdiction pertaining to the matters released in this
Agreement. Each of the undersigned understands, acknowledges, and agrees that it may later discover facts in addition to, or different
from, those that it now knows or believes to be true as to the Released Claims or the subject matter of this Agreement; but, it
is the intention of each of the undersigned, through and in accordance with this Agreement and with the advice of counsel of its
own choosing, fully, finally, and forever, to settle and release any and all Released Claims. In furtherance of this intention,
the releases of the Released Claims provided for under this Agreement shall be, and are to remain in effect as, full and complete
releases of any and all Released Claims notwithstanding the discovery of any additional claims or facts relating to such releases.

 

7.
Ownership of Claims

 

Each
of the Releasing Parties represents and warrants that it is the sole and lawful owner of all right, title, and interest in and
to each Released Claim that such Releasing Party has released in this Agreement and that such Releasing Party has not heretofore
assigned, transferred, or encumbered, or purported to assign, transfer, or encumber, to any person or entity, any right, title,
or interest in or to any and all such Released Claims and that no third party has an interest therein. If such representation
is false and any Released Claim is asserted against a Released Party or its Respective Affiliates, then the Party responsible
for such false representations shall fully defend, indemnify, protect, and hold the other Party and the Respective Affiliates
of such Party, harmless from and against any and all rights, claims, debts, losses, demands, acts, contracts, agreements, liabilities,
obligations, damages, costs, attorneys’ fees, consultant and expert fees, actions, lawsuits, allegations, causes of action,
and/or suits of every nature, character, and description, whether known or unknown, suspected or unsuspected, disclosed or undisclosed,
legal or equitable, allegedly or actually arising from, related to, or incurred in connection with, directly or indirectly, the
assertion of any and all such Released Claims, regardless of whether a judicial proceeding of any type or nature has been commenced.

 

8.
Covenant Not to Sue

 

Each
Releasing Party covenants and agrees not to bring any legal, administrative, legislative, or adversary action, claim, suit, or
proceeding of any kind or nature against any other Releasing Party, or any of that Party’s Respective Affiliates that, in
any way, allegedly or actually arises from, or relates to, directly or indirectly, any Released Claim, and each Releasing Party
further covenants and agrees that this Agreement is a bar to any such action, claim, suit, or proceeding.

 

9.
Attorneys’ Fees and Costs

 

In
the event any action(s), suit(s), or other proceeding(s) of any kind or nature are brought to enforce or interpret any of the
covenants, terms or provisions of this Agreement, each of the undersigned stipulates and agrees that the prevailing entity in
any and all such action(s), suit(s), or other proceeding(s) shall be entitled to recover from the non-prevailing entity all of
the attorney, consultant, and expert fees and costs incurred by the prevailing entity in each and every such action(s), suit(s),
or other proceeding(s), including any and all appeals or petitions therefrom. As used in this Agreement, all such attorney, consultant,
and expert fees and costs shall be deemed (a) to have accrued upon the commencement of any legal action or proceeding brought
under this section; (b) to mean, to the fullest extent allowed by law, the full and actual costs of the services actually performed
in connection with the matters involved, calculated on the basis of the usual fee charged by the attorneys, consultants, or experts
performing such services and shall not be limited to “reasonable fees” as defined in any statute or rule of court;
and (c) shall be recoverable and enforceable under this Agreement whether or not such a legal action or proceeding is prosecuted
to judgment. Furthermore, as used in this Agreement, “prevailing entity” shall include the entity against whom a legal
action is filed and later voluntarily dismissed, in whole or in part, regardless of the reason or motivation for such dismissal.

 

    	4

     

    

 

10.
Representations and Warranties

 

In
addition to those certain representations and warranties set forth in the Recitals, each of the undersigned represents and warrants
to each other of the undersigned and acknowledges and agrees that:

 

a.
Except as expressly set forth in this Agreement, the undersigned has not made any statement or representation to the other
Party regarding any fact, which statement or representation, to such entity’s knowledge, after due inquiry, has been relied
upon by ay other entity in entering into this Agreement. In connection with the execution of this Agreement, such entity has not
relied upon any statement, representation, or promise of any other entity not expressly contained in this Agreement, and each
entity has been, or has been provided the opportunity to be, represented by independent legal counsel;

 

b.
This Agreement is intended to be final and binding upon the undersigned and further is intended to be effective as a full
and final accord and satisfaction as to the matters resolved herein, regardless of any claims of fraud, misrepresentation, concealment
of fact, mistake of fact or law, duress or any other circumstances whatsoever. Such releasing entity has expressly relied upon
the finality of this Agreement as a material factor in inducing such entity’s execution and delivery of, and entry into,
this Agreement;

 

c.
Such entity has made such investigation of the facts pertaining to the releases contained in this Agreement as such entity
has deemed necessary;

 

d.
The terms of this Agreement are contractual and are the result of negotiation among the undersigned;

 

e.
This Agreement has been carefully read by the undersigned and the contents hereof are known and understood by the undersigned.
This Agreement is executed and delivered freely by the undersigned; and

 

f.
The undersigned does not have any knowledge or other reason to believe that the other Party is in breach of this Section 10
as of the Effective Date.

 

11.
Confidentiality Protections; Approved Statement

 

This
Agreement and its terms are confidential and shall not be disclosed to any third party except (a) to each signatories’ attorneys,
accountants, lenders, tax advisors, creditors, banking and financial advisors, financing sources, potential acquirers, and insurers
on a need-to-know basis and such persons shall be instructed to maintain the confidentiality, and existence, of this Agreement
and its terms, (b) to persons to whom disclosure is required by law, including tax authorities as may be required by applicable
tax statutes, regulations, and rulings, (c) to governmental regulatory, certifying, and/or licensing bodies, (d) in respect of
any filing permitted or required by the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or
any other federal or state securities act or rule related thereto, (e) to enforce this Agreement, and (f) as may be ordered by
a Court of competent jurisdiction or other tribunal or authority or governmental body or as required by applicable law. If any
signatory becomes aware that this Agreement or any of its terms are the subject of any subpoena, interrogatory, document demand,
deposition question, or other discovery, court, tribunal, or governmental process, such signatory shall immediately notify each
other signatory to allow it to seek protections from disclosure. If asked about this Agreement, each signatory and its authorized
representatives shall state only that the signatories have settled all relevant claims between them to their mutual satisfaction.

 

    	5

     

    

 

12.
Mutual Non-Disparagement

 

Each
of the undersigned covenants and agrees that each will not, directly or indirectly, alone or in concert with others, at any time,
make any comments about any other signatory or its respective affiliates that are, or could be interpreted to be, disparaging
or derogatory or that paint, or could be interpreted to paint, any other signatory or its respective affiliates in a negative
light. By way of specificity, but not of limitation, each of the undersigned covenants and agrees that, among other things, neither
the undersigned, nor any of such entity’s respective agents, subsidiaries, affiliates, successors, assigns, officers, key
employees, or directors, as relevant, shall, in any way, directly or indirectly, alone or in concert with others, cause, express,
or cause to be expressed, in writing or verbally, any remarks, statements, comments, or criticisms that disparage, call into disrepute,
defame, slander, or that could reasonably be construed as such. Further, each of the undersigned covenants and agrees that each
such entity shall not make any disparaging, derogatory, or negative comments about any other entity’s officers, directors,
owners, employees, consultants, agents, advisors, products, services, policies, or practices. Rather, each of the undersigned
covenants and agrees that it shall act in good faith to refrain from any conduct or communication that might reasonably be expected
to interfere with the business and/or personal interests of each other entity.

 

13.
Warranties Survive Execution of Agreement

 

Each
of the undersigned agrees that the mutual covenants, warranties, releases, remises, and acknowledgments contained herein shall
survive the execution of this Agreement and shall continue in force in perpetuity.

 

14.
Binding Effect

 

This
Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable by, each of the undersigned, their Respective
Affiliates, heirs, estates, successors, and assigns, regardless of whether such Respective Affiliates or their respective heirs,
estates, successors, or assigns are signatories to this Agreement.

 

15.
Entire Agreement; Modifications

 

This
Agreement contains the entire agreement and understanding among the undersigned and supersedes any and all prior agreements, arrangements,
or understandings of any kind or nature among them but shall not supersede or modify any rights, duties, or obligations under
the Farm Promissory Notes, the Farm NPAs, the Original Promissory Note, the Original NPA, and the Security Agreement. This Agreement
may not be amended, canceled, revoked, or otherwise modified except by a written agreement signed by both of the Parties and,
as appropriate either or both of the Interested Parties.

 

    	6

     

    

 

16.
Governing Law; Jurisdiction; Venue

 

The
Parties and the Interested Parties consent to having their rights and obligations under this Agreement governed, construed, and
enforced in accordance with the laws of the State of Florida. Each of the undersigned hereby agrees that it is subject to the
jurisdiction of the state or federal courts located in Miami-Dade County, Florida. In the event of a dispute among the undersigned
regarding this Agreement, each consents to having such disputes adjudicated in a state or federal court of competent jurisdiction
located in the State of Florida, County of Miami-Dade.

 

17.
Construction/Titles and Captions

 

This
Agreement is deemed to have been jointly prepared by the undersigned and, accordingly, shall not be construed against any particular
entity nor shall any uncertainty or ambiguity be construed against any one entity. Titles and captions contained in this Agreement
are for convenience only and shall not be used to interpret or construe this Agreement.

 

18.
Severability

 

If
any term, provision, agreement, covenant, or restriction of this Agreement is held by a court of competent jurisdiction or other
tribunal or authority to be invalid, void, or unenforceable, the remainder of the terms, provisions, agreements, covenants, and
restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated
so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any of the undersigned. Upon such a determination, the undersigned shall negotiate in good faith to modify this Agreement so
as to affect their original intent as closely as possible in a reasonably acceptable manner in order that the transactions contemplated
hereby may be consummated as originally contemplated to the fullest extent possible.

 

19.
Notices

 

Except
as otherwise provided in this Agreement, all notices required by or permitted in this Agreement shall be in writing and shall
be served on the undersigned at the addresses specified below. Unless otherwise specified in this Agreement, any such notices
shall be sent (a) by express delivery using an nationally recognized express courier, in which case notice shall be deemed delivered
in accordance with such courier’s guaranteed delivery standards, but not more than one business day after deposit with such
courier; (b) by electronic mail, in which case notice shall be deemed delivered upon successful transmission of such notice; (c)
by personal delivery, in which case notice shall be deemed delivered upon receipt; or (d) by United States of America mail, certified
or registered, postage prepaid, return receipt requested, in which case notice shall be deemed delivered within five business
days of mailing. Any address may be changed by written notice to the other entities and shall be deemed delivered and effective
in accordance with the same delivery method used and that method’s corresponding deemed delivery schedule described above.

 

To
the Company and the Interested Parties:

 

1715
Highway 35, Suite 101

Middletown,
New Jersey 07748

Attn:
Tom Gallo

E-mail:
cohemp@outlook.com

 

To
Trava:

 

17001
Collins Avenue, #4701

Sunny
Isles Beach, Florida 33160

Attn:
Daniel Sands

E-mail:
ds@travaholdings.com

 

20.
Warranty of Authority

 

Each
person whose signature is affixed hereto in a representative capacity represents and warrants that: (a) he or she is authorized
to execute this Agreement on behalf of and to bind such Party on whose behalf his signature is affixed and (b) the provisions
and execution of this Agreement have been validly approved and ratified by such Party or Interested Party.

 

21.
Counterparts and E-mail

 

This
Agreement may be executed in one or more counterparts, each of which, when executed and delivered, shall be deemed an original
and all of which when executed and delivered shall constitute one and the same instrument. An electronic copy of an executed original
or counterpart original of this Agreement shall be deemed effective on the date it is received.

 

[Remainder
of the page intentionally left blank; signature page follows.]

 

    	7

     

    

 

IN
WITNESS WHEREOF, the Parties and the Interested Parties hereto have executed this Agreement as of the date first written above.

 

	 	THE
    PARTIES:
	 	 
	 	NOTIS
    GLOBAL INC.
	 	 
	 	By:	/s/
    Ned L. Siegel
	 	 	Ned
    L. Siegel
	 	 	Executive
    Chairman of Notis Global
	 	 	 
	 	TRAVA
    LLC
	 	 	 
	 	By:	/s/
    Felix Vulis
	 	 	Felix
    Vulis
	 	 	Managing
    Member
	 	 	 
	 	THE
    INTERESTED PARTIES:
	 	 
	 	EWSD
    I LLC
	 	 	 
	 	By:	/s/
    Ned L. Siegel
	 	 	Ned
    L. Siegel
	 	 	Executive
    Chairman of Notis Global
	 	 	 
	 	PUEBLO
    AGRICULTURE SUPPLY AND EQUIPMENT LLC
	 	 
	 	By:	/s/
    Ned L. Siegel
	 	 	Ned
    L. Siegel
	 	 	Executive
    Chairman of Notis Global

 

    	8

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