Document:

EXHIBIT
      4.4

     

    WARRANT
      AGREEMENT

     

      This
        Warrant Agreement (this "Agreement") is made as of April 21, 2008, by and
        between Zion Oil & Gas, Inc., a Delaware corporation having its principal
        place of business at 6510 Abrams Road, Suite 300, Dallas, Texas 75231 (the
        "Company"), and Registrar and Transfer Company, a New Jersey corporation
        with
        offices at 10 Commerce Drive, Cranford, New Jersey 07016 (the "Warrant
        Agent").

     

      WHEREAS,
        the Company is engaged in a public offering (the "Public Offering") of Units
        ("Units") and, in connection therewith, has determined to issue and deliver
        up
        to (i) 2,500,000 Warrants (the "Public Warrants") to the public investors,
        each
        of such Public Warrants evidencing the right of the holder thereof to purchase
        one share of common stock, par value $.01 per share, of the Company's Common
        Stock ("Common Stock") for $7.00, subject to adjustment as described herein
        and
        (ii) 75,000 Warrants to Brockington Securities, Inc. ("Brockington") as
        representative of the underwriters (the "Underwriters") or its designees
        (the
        "Underwriter's Warrants," and, together with the Public Warrants, the
        "Warrants"), with such Underwriter's Warrants evidencing the right of the
        holder
        thereof to purchase up to 75,000 shares of Common Stock at a per share exercise
        price of $8.75, subject to adjustment as described herein;

     

    WHEREAS,
      the Company has filed with the Securities and Exchange Commission (the "SEC")
      a
      Registration Statement on Form S-3, as amended ("Registration Statement"),
      for
      the registration under the Securities Act of 1933, as amended ("Act") of the
      issuance and sale of the Warrants and the Common Stock issuable upon exercise
      of
      each of the Public Warrants and the Underwriter's Warrants; and

     

    WHEREAS,
      the Company desires the Warrant Agent to act on behalf of the Company, and
      the
      Warrant Agent is willing to so act, in connection with the issuance,
      registration, transfer, exchange, redemption and exercise of the Warrants;
      and

     

    WHEREAS,
      the Company desires to provide for the form and provisions of the Warrants,
      the
      terms upon which they shall be issued and exercised, and the respective rights,
      limitation of rights, and immunities of the Company, the Warrant Agent, and
      the
      holders of the Warrants; and

     

    WHEREAS,
      all acts and things have been done and performed which are necessary to make
      the
      Warrants, when executed on behalf of the Company and countersigned by or on
      behalf of the Warrant Agent, as provided herein, the valid, binding and legal
      obligations of the Company, and to authorize the execution and delivery of
      this
      Agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements herein contained, the
      parties hereto agree as follows:

     

    1.
 
      Appointment
      of Warrant Agent
      . The
      Company hereby appoints the Warrant Agent to act as agent for the Company for
      the Warrants, and the Warrant Agent hereby accepts such appointment
      and agrees to perform the same in accordance with the terms and conditions
      set
      forth in this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.
 
      Warrants
      .

     

      2.1
          Form
        of Warrant
        . Each
        Warrant shall be issued in registered form only. The Warrants shall be in
        substantially the form of Exhibit
        A
        hereto
        (with the exception that the Underwriter's Warrants shall have an exercise
        price
        of $8.75 per share of Common Stock), the provisions of which are incorporated
        herein, and shall be signed by, or bear the facsimile signature of, the Chief
        Executive Officer or President and Chief Financial Officer, Treasurer, Secretary
        or Assistant Secretary of the Company and shall bear a facsimile of the
        Company's seal. In the event the person whose facsimile signature has been
        placed upon any Warrant shall have ceased to serve in the capacity in which
        such
        person signed the Warrant before such Warrant is issued, it may be issued
        with
        the same effect as if he or she had not ceased to be such at the date of
        issuance.

     

    2.2
        Effect
      of Countersignature
      . Unless
      and until countersigned by the Warrant Agent pursuant to this Agreement, a
      Warrant shall be invalid and of no effect and may not be exercised by the holder
      thereof.

     

    2.3
        Registration
      .

     

    2.3.1
        Warrant
      Register
      . The
      Warrant Agent shall maintain books ("Warrant Register") for the registration
      of
      original issuance and the registration of transfer of the Warrants. Upon the
      initial issuance of the Warrants, the Warrant Agent shall issue and register
      the
      Warrants in the names of the respective holders thereof in such denominations
      and otherwise in accordance with instructions delivered to the Warrant Agent
      by
      the Company.

     

    2.3.2
        Registered
      Holder
      . Prior
      to due presentment for registration of transfer of any Warrant, the Company
      and
      the Warrant Agent may deem and treat the person in whose name such Warrant
      shall
      be registered upon the Warrant Register ("registered holder"), as the absolute
      owner of such Warrant and of each Warrant represented thereby (notwithstanding
      any notation of ownership or other writing on the Warrant Certificate made
      by
      anyone other than the Company or the Warrant Agent), for the purpose of any
      exercise thereof, and for all other purposes, and neither the Company nor the
      Warrant Agent shall be affected by any notice to the contrary.

     

    2.4
        Detachability
      of Public Warrants
      . The
      securities comprising the Units will begin to trade separately on the first
      trading day following the 30 th
      day
      after the Termination Date (as defined in the Registration Statement) (the
      "Detachment Date").

     

    3.
 
      Terms
      and Exercise of Warrants
      .

     

      3.1
          Warrant
        Price
        . Each
        Warrant shall, when countersigned by the Warrant Agent, entitle the registered
        holder thereof, subject to the provisions of such Warrant and this Warrant
        Agreement, to purchase from the Company the number of shares of Common Stock
        stated therein, at the price of $7.00 in the case of the Public Warrants
        and
        $8.75 in the case of the Underwriter's Warrants per whole share, subject
        to the
        adjustments provided in this Section 3.1 and Section 4 hereof. The term "Warrant
        Price" as used in this Warrant Agreement refers to the price per share at
        which
        Common Stock may be purchased at the time a Warrant is exercised. The Company
        in
        its sole discretion may lower the Warrant Price at any time prior to the
        Expiration Date for a period of not less than ten business days, provided
        that
        any such reduction shall be identical among all of the Public
        Warrants.

     

    3.2
        Duration
      of Warrants
      . A
      Warrant may be exercised only during the period commencing on the 31st day
      following the Termination Date and terminating at 5:00 p.m., New York City
      time
      on January 31, 2012. Notwithstanding the foregoing, no Warrant shall be
      exercisable unless, at the time of exercise, a registration statement relating
      to the Common Stock issuable upon the exercise of such Warrant is effective
      and
      current and a prospectus is available for use by the holders thereof and the
      Common Stock has been qualified or deemed to be exempt under the securities
      laws
      of the state of residence of the holder of such Warrants. The period during
      which a Warrant may be exercised shall be deemed the "Exercise Period" and
      the
      termination of such Exercise Period shall be deemed the "Expiration Date."
      Each
      Warrant not exercised on or before the Expiration Date shall become void, and
      all rights thereunder and all rights in respect thereof under this Agreement
      shall cease at the close of business on the Expiration Date. The Company in
      its
      sole discretion may extend the duration of the Warrants by delaying the
      Expiration Date; provided, however, the Company will provide notice to
      registered holders of the Public Warrants of such extension of not less than
      20
      days and, further provided that any such extension shall be identical in
      duration among all of the Public Warrants.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.3
        Exercise
      of Warrants
      .

     

    3.3.1
        Payment
      .
      Subject to the provisions of the Warrants and this Warrant Agreement, a Warrant,
      when countersigned by the Warrant Agent, may be exercised by the registered
      holder thereof by surrendering it at the office of the Warrant Agent, or at
      the
      office of its successor as Warrant Agent, in Cranford, New Jersey, with the
      subscription form, as set forth in the Warrant, duly executed by paying in
      full, in lawful money of the United States, in cash, good certified check or
      good bank draft payable to the order of the Company, the Warrant Price for
      each
      full share of Common Stock as to which the Warrant is exercised and any and
      all
      applicable taxes due in connection with the exercise of the Warrant, the
      exchange of the Warrant for the Common Stock and the issuance of the Common
      Stock.

     

    3.3.2
        Issuance
      of Certificates
      . As
      soon as practicable after the exercise of any Warrant and the clearance of
      the
      funds in payment of the Warrant Price, the Company shall issue to the registered
      holder of such Warrant a certificate or certificates for the number of full
      shares of Common Stock to which he, she or it is entitled, registered in such
      name or names as may be directed by him, her or it, and if such Warrant shall
      not have been exercised in full, a new countersigned Warrant for the number
      of
      shares as to which such Warrant shall not have been exercised. Notwithstanding
      the foregoing, the Company shall not be obligated to deliver any securities
      pursuant to the exercise of a Warrant unless (i) a registration statement under
      the Act with respect to the Common Stock issuable upon such exercise is
      effective, or (ii) in the opinion of counsel to the Company, the exercise of
      the
      Warrants is exempt from the registration requirements of the Act and such
      securities are qualified for sale or exempt from qualification under applicable
      securities laws of the states or other jurisdictions in which the registered
      holders reside. Warrants may not be exercised by, or securities issued to,
      any
      registered holder in any state in which such exercise or issuance would be
      unlawful. In no event will the Company be required to provide the registered
      holder of a warrant with a net-cash settlement or other consideration in lieu
      of
      physical settlement in shares of Common Stock, regardless of whether the Common
      Stock underlying the Warrants is registered pursuant to an effective
      registration statement.

     

    3.3.3
        Valid
      Issuance
      . All
      shares of Common Stock issued upon the proper exercise of a Warrant in
      conformity with this Agreement shall be validly issued, fully paid and
      nonassessable.

     

    3.3.4
        Date
      of Issuance
      . Each
      person in whose name any such certificate for shares of Common Stock is issued
      shall for all purposes be deemed to have become the holder of record of such
      shares on the date on which the Warrant was surrendered and payment of the
      Warrant Price was made, irrespective of the date of delivery of such
      certificate, except that, if the date of such surrender and payment is a date
      when the stock transfer books of the Company are closed, such person shall
      be
      deemed to have become the holder of such shares at the close of business on
      the
      next succeeding date on which the stock transfer books are open.

     

    4.
 
      Adjustments
      .

     

    4.1
        Stock
      Dividends Split Ups
      . If
      after the date hereof, and subject to the provisions of Section 4.6 below,
      the
      number of outstanding shares of Common Stock is increased by a stock dividend
      payable in shares of Common Stock, or by a split up of shares of Common Stock,
      or other similar event, then, on the effective date of such stock dividend,
      split up or similar event, the number of shares of Common Stock issuable on
      exercise of each Warrant shall be increased in proportion to such increase
      in
      outstanding shares of Common Stock.

     

    4.2
        Aggregation
      of Shares
      . If
      after the date hereof, and subject to the provisions of Section 4.6, the number
      of outstanding shares of Common Stock is decreased by a consolidation,
      combination, reverse stock split or reclassification of shares of Common Stock
      or other similar event, then, on the effective date of such consolidation,
      combination, reverse stock split, reclassification or similar event, the number
      of shares of Common Stock issuable on exercise of each Warrant shall be
      decreased in proportion to such decrease in outstanding shares of Common
      Stock.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.3
        Adjustments
      in Exercise Price
      .
      Whenever the number of shares of Common Stock purchasable upon the exercise
      of
      the Warrants is adjusted, as provided in Section 4.1 and 4.2 above, the Warrant
      Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price
      immediately prior to such adjustment by a fraction (x) the numerator of which
      shall be the number of shares of Common Stock purchasable upon the exercise
      of
      the Warrants immediately prior to such adjustment, and (y) the denominator
      of
      which shall be the number of shares of Common Stock so purchasable immediately
      thereafter.

     

    4.4
        Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding shares of Common
      Stock (other than a change covered by Section 4.1 or 4.2 hereof or that solely
      affects the par value of such shares of Common Stock), or in the case of any
      merger or consolidation of the Company with or into another corporation (other
      than a consolidation or merger in which the Company is the continuing
      corporation and that does not result in any reclassification or reorganization
      of the outstanding shares of Common Stock), or in the case of any sale or
      conveyance to another corporation or entity of the assets or other property
      of
      the Company as an entirety or substantially as an entirety in connection with
      which the Company is dissolved, the Warrant holders shall thereafter have the
      right to purchase and receive, upon the basis and upon the terms and conditions
      specified in the Warrants and in lieu of the shares of Common Stock of the
      Company immediately theretofore purchasable and receivable upon the exercise
      of
      the rights represented thereby, the kind and amount of shares of stock or other
      securities or property (including cash) receivable upon such reclassification,
      reorganization, merger or consolidation, or upon a dissolution following any
      such sale or transfer, that the Warrant holder would have received if such
      Warrant holder had exercised his, her or its Warrant(s) immediately prior to
      such event; and if any reclassification also results in a change in shares
      of
      Common Stock covered by Section 4.1 or 4.2, then such adjustment shall be made
      pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The provisions of
      this Section 4.4 shall similarly apply to successive reclassifications,
      reorganizations, mergers or consolidations, sales or other
      transfers.

     

    4.5
        Notices
      of Changes in Warrant
      . Upon
      every adjustment of the Warrant Price or the number of shares issuable on
      exercise of a Warrant, the Company shall give written notice thereof to the
      Warrant Agent, which notice shall state the Warrant Price resulting from such
      adjustment and the increase or decrease, if any, in the number of shares
      purchasable at such price upon the exercise of a Warrant, setting forth in
      reasonable detail the method of calculation and the facts upon which such
      calculation is based. Upon the occurrence of any event specified in Sections
      4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company shall give written
      notice to the Warrant holder, at the last address set forth for such holder
      in
      the Warrant Register, of the record date or the effective date of the event.
      Failure to give such notice, or any defect therein, shall not affect the
      legality or validity of such event.

     

    4.6
        No
      Fractional Shares
      .
      Notwithstanding any provision contained in this Warrant Agreement to the
      contrary, the Company shall not issue fractional shares upon exercise of
      Warrants. If, by reason of any adjustment made pursuant to this Section 4,
      the
      holder of any Warrant would be entitled, upon the exercise of such Warrant,
      to
      receive a fractional interest in a share, the Company shall, upon such exercise,
      round up to the nearest whole number the number of the shares of Common Stock
      to
      be issued to the Warrant holder.

     

    4.7
        Form
      of Warrant
      . The
      form of Warrant need not be changed because of any adjustment pursuant to this
      Section 4, and Warrants issued after such adjustment may state the same Warrant
      Price and the same number of shares as is stated in the Warrants initially
      issued pursuant to this Agreement. However, the Company may at any time in
      its
      sole discretion make any change in the form of Warrant that the Company may
      deem
      appropriate and that does not affect the substance thereof, and any Warrant
      thereafter issued or countersigned, whether in exchange or substitution for
      an
      outstanding Warrant or otherwise, may be in the form as so changed.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.
 
      Transfer
      and Exchange of Warrants
      .

     

    5.1
        Transfer
      of Warrants
      . Prior
      to the Detachment Date, the Public Warrants may be transferred or exchanged
      only
      together with the Unit in which such Warrant is included, and only for the
      purpose of effecting, or in conjunction with, a transfer or exchange of such
      Unit. Furthermore, each transfer of a Unit on the register relating to such
      Units shall operate also to transfer the Warrants included in such Unit. From
      and after the Detachment Date this Section 5.1 will have no further force and
      effect.

     

    5.2
        Registration
      of Transfer
      . The
      Warrant Agent shall register the transfer, from time to time, of any outstanding
      Warrant upon the Warrant Register, upon surrender of such Warrant for transfer,
      properly endorsed with signatures properly guaranteed and accompanied by
      appropriate instructions for transfer. Upon any such transfer, a new Warrant
      representing an equal aggregate number of Warrants shall be issued and the
      old
      Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled
      shall
      be delivered by the Warrant Agent to the Company from time to time upon
      request.

     

    5.3
        Procedure
      for Surrender of Warrants
      .
      Warrants may be surrendered to the Warrant Agent, together with a written
      request for exchange or transfer, and thereupon the Warrant Agent shall issue
      in
      exchange therefor one or more new Warrants as requested by the registered holder
      of the Warrants so surrendered, representing an equal aggregate number of
      Warrants; provided, however, in the event a Warrant surrendered for transfer
      bears a restrictive legend, the Warrant Agent shall not cancel such Warrant
      and
      issue new Warrants in exchange therefor until the Warrant Agent has received
      an
      opinion of counsel for the Company stating such transfer may be made and
      indicating whether the new Warrants must also bear a restrictive
      legend.

     

    5.4
        Fractional
      Warrants
      . The
      Warrant Agent shall not be required to effect any registration of transfer
      or
      exchange which will result in the issuance of a warrant certificate for a
      fraction of a warrant.

     

    5.5
        Service
      Charges
      . No
      service charge shall be made for any exchange or registration of transfer of
      Warrants.

     

    5.6
        Warrant
      Execution and Countersignature
      . The
      Warrant Agent is hereby authorized to countersign and deliver, in accordance
      with the terms of this Agreement, the Warrants required to be issued pursuant
      to
      the provisions of this Section 5, and the Company, whenever required by the
      Warrant Agent, will supply the Warrant Agent with Warrants duly executed on
      behalf of the Company for such purpose.

     

    6.
 
      Other
      Provisions Relating to Rights of Holders of Warrants
      .

     

    6.1
        No
      Rights as Stockholder
      . A
      Warrant does not entitle the registered holder thereof to any of the rights
      of a
      stockholder of the Company, including, without limitation, the right to receive
      dividends, or other distributions, exercise any preemptive rights to vote or
      to
      consent or to receive notice as stockholders in respect of the meetings of
      stockholders or the election of directors of the Company or any other
      matter.

     

    6.2
        Lost,
      Stolen, Mutilated, or Destroyed Warrants
      . If any
      Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant
      Agent may on such terms as to indemnity or otherwise as they may in their
      discretion impose (which shall, in the case of a mutilated Warrant, include
      the
      surrender thereof), issue a new Warrant of like denomination, tenor, and date
      as
      the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant
      shall
      constitute a substitute contractual obligation of the Company, whether or not
      the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any
      time
      enforceable by anyone.

     

    6.3
        Reservation
      of Common Stock
      . The
      Company shall at all times reserve and keep available a number of its authorized
      but unissued shares of Common Stock that will be sufficient to permit the
      exercise in full of all outstanding Warrants issued pursuant to this Warrant
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.
 
      Concerning
      the Warrant Agent and Other Matters
      .

     

    7.1
        Payment
      of Taxes
      . The
      Company will from time to time promptly pay all taxes and charges that may
      be
      imposed upon the Company or the Warrant Agent in respect of the issuance or
      delivery of shares of Common Stock upon the exercise of Warrants, but the
      Company shall not be obligated to pay any transfer taxes in respect of the
      Warrants or such shares.

     

    7.2
        Resignation,
      Consolidation, or Merger of Warrant Agent
      .

     

    7.2.1
        Appointment
      of Successor Warrant Agent
      . The
      Warrant Agent, or any successor to it hereafter appointed, may resign its duties
      and be discharged from all further duties and liabilities hereunder after giving
      sixty (60) days' notice in writing to the Company. If the office of the Warrant
      Agent becomes vacant by resignation or incapacity to act or otherwise, the
      Company shall appoint in writing a successor Warrant Agent in place of the
      Warrant Agent. If the Company shall fail to make such appointment within a
      period of 30 days after it has been notified in writing of such resignation
      or
      incapacity by the Warrant Agent or by the holder of the Warrant (who shall,
      with
      such notice, submit his Warrant for inspection by the Company), then the holder
      of any Warrant may apply to a court of competent jurisdiction for the
      appointment of a successor Warrant Agent. Any successor Warrant Agent, whether
      appointed by the Company or by such court, shall be authorized to exercise
      corporate trust powers and subject to supervision or examination by federal
      or
      state authority. After appointment, any successor Warrant Agent shall be vested
      with all the authority, powers, rights, immunities, duties, and obligations
      of
      its predecessor Warrant Agent with like effect as if originally named as Warrant
      Agent hereunder, without any further act or deed; but if for any reason it
      becomes necessary or appropriate, the predecessor Warrant Agent shall execute
      and deliver, at the expense of the Company, an instrument transferring to such
      successor Warrant Agent all the authority, powers, and rights of such
      predecessor Warrant Agent hereunder; and upon request of any successor Warrant
      Agent the Company shall make, execute, acknowledge, and deliver any and all
      instruments in writing for more fully and effectually vesting in and confirming
      to such successor Warrant Agent all such authority, powers, rights, immunities,
      duties, and obligations.

     

    7.2.2
        Notice
      of Successor Warrant Agent
      . In the
      event a successor Warrant Agent shall be appointed, the Company shall give
      notice thereof to the predecessor Warrant Agent and the transfer agent for
      the
      Common Stock not later than the effective date of any such
      appointment.

     

    7.2.3
        Merger
      or Consolidation of Warrant Agent
      . Any
      corporation into which the Warrant Agent may be merged or with which it may
      be
      consolidated or any corporation resulting from any merger or consolidation
      to
      which the Warrant Agent shall be a party shall be the successor Warrant Agent
      under this Warrant Agreement without any further act.

     

    7.3
        Fees
      and Expenses of Warrant Agent
      .

     

    7.3.1
        Remuneration
      . The
      Company agrees to pay the Warrant Agent reasonable remuneration for its services
      as such Warrant Agent hereunder as set forth on Exhibit B hereto, and will
      reimburse the Warrant Agent upon demand for all expenditures that the Warrant
      Agent may reasonably incur in the execution of its duties
      hereunder.

     

    7.3.2
        Further
      Assurances
      . The
      Company agrees to perform, execute, acknowledge, and deliver or cause to be
      performed, executed, acknowledged, and delivered all such further and other
      acts, instruments, and assurances as may reasonably be required by the Warrant
      Agent for the carrying out or performing of the provisions of this Warrant
      Agreement.

     

    7.4
        Liability
      of Warrant Agent
      .

     

    7.4.1
        Reliance
      on Company Statement
      .
      Whenever in the performance of its duties under this Warrant Agreement, the
      Warrant Agent shall deem it necessary or desirable that any fact or matter
      be
      proved or established by the Company prior to taking or suffering any action
      hereunder, such fact or matter (unless other evidence in respect thereof be
      herein specifically prescribed) may be deemed to be conclusively proved and
      established by a statement signed by the Chief Executive Officer, President,
      Chief Operating Officer, Chief Financial Officer, Executive Vice President,
      Secretary or Assistant Secretary of the Company and delivered to the Warrant
      Agent. The Warrant Agent may rely upon such statement for any action taken
      or
      suffered in good faith by it pursuant to the provisions of this Warrant
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.4.2
        Indemnity
      . The
      Warrant Agent shall be liable hereunder only for its own negligence, willful
      misconduct or bad faith. The Company agrees to indemnify the Warrant Agent
      and
      save it harmless against any and all liabilities, including judgments, costs
      and
      reasonable counsel fees, for anything done or omitted by the Warrant Agent
      in
      the execution of this Warrant Agreement except as a result of the Warrant
      Agent's negligence, willful misconduct, or bad faith.

     

    7.4.3
        Exclusions
      . The
      Warrant Agent shall have no responsibility with respect to the validity of
      this
      Warrant Agreement or with respect to the validity or execution of any Warrant
      (except its countersignature thereof); nor shall it be responsible for any
      breach by the Company of any covenant or condition contained in this Warrant
      Agreement or in any Warrant; nor shall it be responsible to make any adjustments
      required under the provisions of Section 4 hereof or responsible for the manner,
      method, or amount of any such adjustment or the ascertaining of the existence
      of
      facts that would require any such adjustment; nor shall it by any act hereunder
      be deemed to make any representation or warranty as to the authorization or
      reservation of any shares of Common Stock to be issued pursuant to this Warrant
      Agreement or any Warrant or as to whether any shares of Common Stock will when
      issued be valid and fully paid and nonassessable.

     

    7.5
        Acceptance
      of Agency
      . The
      Warrant Agent hereby accepts the agency established by this Warrant Agreement
      and agrees to perform the same upon the terms and conditions herein set forth
      and among other things, shall account promptly to the Company with respect
      to
      Warrants exercised and concurrently account for, and pay to the Company, all
      moneys received by the Warrant Agent for the purchase of shares of the Company's
      Common Stock through the exercise of Warrants.

     

    7.6
        Waiver
      . The
      Warrant Agent hereby waives any and all right, title, interest or claim of
      any
      kind ("Claim") in or to any distribution of any account in which funds related
      to the purchase or exercise of the Warrants are held, and hereby agrees not
      to
      seek recourse, reimbursement, payment or satisfaction for any Claim against
      any
      such account for any reason whatsoever.

     

    8.
 
      Miscellaneous
      Provisions
      .

     

    8.1
        Successors
      . All
      the covenants and provisions of this Warrant Agreement by or for the benefit
      of
      the Company or the Warrant Agent shall bind and inure to the benefit of their
      respective successors and assigns.

     

    8.2
        Notices
      . Any
      notice or other communication required or which may be given hereunder shall
      be
      in writing and either be delivered personally or by private national courier
      service, or be mailed, certified or registered mail, return receipt requested,
      postage prepaid, and shall be deemed given when so delivered personally or,
      if
      sent by private national courier service, on the next business day after
      delivery to the courier, or, if mailed, two business days after the date of
      mailing, as follows:

     

    Zion
      Oil
& Gas, Inc.

    6510
      Abrams Road, Suite 300

    Dallas,
      Texas 75231

    Attn:
       Chief Executive Officer

     

    Any
      notice, statement or demand authorized by this Warrant Agreement to be given
      or
      made by the holder of any Warrant or by the Company to or on the Warrant Agent
      shall be sufficiently given when so delivered if by hand or overnight delivery
      or if sent by certified mail or private courier service five days after deposit
      of such notice, postage prepaid, addressed (until another address is filed
      in
      writing by the Warrant Agent with the Company), as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Registrar
      and Transfer Company

    10
      Commerce Drive

    Cranford,
      New Jersey 07016

    Attn:
      Account Executive

     

      8.3
          Applicable
        law
        . The
        validity, interpretation, and performance of this Warrant Agreement and of
        the
        Warrants shall be governed in all respects by the laws of the State of New
        Jersey, without giving effect to conflict of laws. Each party hereby agrees
        that
        any action, proceeding or claim against it arising out of or relating in
        any way
        to this Warrant Agreement shall be brought and enforced in the appropriate
        state
        or federal courts in the State of New Jersey, and irrevocably submits to
        such
        jurisdiction, which jurisdiction shall be exclusive. Each party hereby waives
        any objection to such exclusive jurisdiction and that such courts represent
        an
        inconvenient forum.

     

    8.4
        Persons
      Having Rights under this Warrant Agreement
      .
      Nothing in this Warrant Agreement expressed and nothing that may be implied
      from
      any of the provisions hereof is intended, or shall be construed, to confer
      upon,
      or give to, any person or corporation other than the parties hereto and the
      registered holders of the Warrants, any right, remedy, or claim under or by
      reason of this Warrant Agreement or of any covenant, condition, stipulation,
      promise, or agreement hereof. All covenants, conditions, stipulations, promises,
      and agreements contained in this Warrant Agreement shall be for the sole and
      exclusive benefit of the parties hereto and their successors and assigns and
      of
      the registered holders of the Warrants.

     

    8.5
        Examination
      of the Warrant Agreement
      . A copy
      of this Warrant Agreement shall be available at all reasonable times at the
      office of the Warrant Agent for inspection by the registered holder of any
      Warrant. The Warrant Agent may require any such holder to submit his Warrant
      for
      inspection by it.

     

    8.6
        Counterparts
      . This
      Warrant Agreement may be executed in any number of counterparts and each of
      such
      counterparts shall for all purposes be deemed to be an original, and all such
      counterparts shall together constitute but one and the same
      instrument.

     

    8.7
        Effect
      of Headings
      . The
      Section headings herein are for convenience only and are not part of this
      Warrant Agreement and shall not affect the interpretation thereof.

     

    8.8
        Amendments
      . This
      Warrant Agreement may be amended by the parties hereto without the consent
      of
      any registered holder for the purpose of curing any ambiguity, or of curing,
      correcting or supplementing any defective provision contained herein or adding
      or changing any other provisions with respect to matters or questions arising
      under this Warrant Agreement as the parties may deem necessary or desirable
      and
      that the parties deem shall not adversely affect the interest of the registered
      holders. All other modifications or amendments, including any amendment to
      increase the Warrant Price or shorten the Exercise Period, shall require the
      written consent of a majority of the then outstanding Warrants. Notwithstanding
      the foregoing, the Company may lower the Warrant Price or extend the duration
      of
      the Exercise Period in accordance with Sections 3.1 and 3.2, respectively,
      without such consent.

     

    8.9
        Severability
      . This
      Warrant Agreement shall be deemed severable, and the invalidity or
      unenforceability of any term or provision hereof shall not affect the validity
      or enforceability of this Warrant Agreement or of any other term or provision
      hereof. Furthermore, in lieu of any such invalid or unenforceable term or
      provision, the parties hereto intend that there shall be added as a part of
      this
      Warrant Agreement a provision as similar in terms to such invalid or
      unenforceable provision as may be possible and be valid and
      enforceable.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, this Warrant Agreement has been duly executed by the parties
      hereto as of the day and year first above written.

     

    ZION
      OIL & GAS, INC.

     

    By:
      /s/
      William H.
      Avery                  

     

    Name:
      William H. Avery

    Title:
      Executive Vice President

     

    REGISTRAR
      AND TRANSFER COMPANY

     

    By:
      /s/
      William P.
      Tatler                  

     

    Name:William
      P. Tatler

    Title:
      Vice PresidentEXHIBIT
      4.5

     

    FORM
      OF WARRANT

     

    Date:
      _______ Number: -___ Shares: __

     

      
        

      

    

     

    Zion
      Oil & Gas, Inc.

     

    Incorporated
      Under the Laws of the State of Delaware

      THIS
        CERTIFIES THAT,
        for
        value received, Brockington Securities, Inc. (whose address is 2805 Veterans
        Memorial Highway, Ronkomkoma, New York 11779 and whose fax number is
        631-234-0408) or its assigns is entitled to subscribe for and purchase, on
        or
        before the Termination Date, as defined below in this Warrant, _______ (____)
        fully paid and non-assessable shares (subject to adjustment as hereinafter
        provided) of the common stock ("Common Stock"), of ZION OIL & GAS, INC., a
        Delaware corporation (the "Corporation"), at a per share price equal to $8.75
        per share (the "Warrant Price"); subject, however, to the provisions and
        upon
        the terms, conditions and adjustments hereinafter set forth.

     

      1.
        Exercise
        Period and Duration
        . The
        right to exercise this Warrant and subscribe for and purchase shares of Common
        Stock represented hereby ("Warrant Shares") shall commence on a date three
        months following the "Termination Date" as that date is defined at para.
        3.01.01
        of the Underwriting Agreement between the Company and Brockington Securities,
        Inc. (the "Underwriter"), dated as of April __, 2008 [the "Underwriting
        Agreement"]) and expire at 5:00 P.M., Dallas time, on __________ (the
        "Expiration Date"), such date being the third anniversary of the Effective
        Date
        of the Corporation's offering as that term is defined in para. 2.201 of the
        Underwriting Agreement .

     

    2.
      Method
      of Exercise; Payment; Issuance of New Warrant
      . The
      holder hereof may exercise this Warrant, in whole or in part, by the surrender
      of this Warrant (with the subscription form attached hereto duly executed)
      at
      the principal office of the Corporation, and by the payment to the Corporation
      of the then applicable Warrant Price for the shares being purchased upon such
      exercise at any time during the Subscription Period.

     

    Payment
      of the Warrant Price may be made at the option of the holder by: (i) certified
      check or bank check payable to the order of the Company, (ii) wire transfer
      to
      the account of the Corporation or (iii) the surrender and cancellation of a
      portion of shares of Common Stock then held by the Holder or issuable upon
      such
      exercise of this Warrant, which shall be valued and credited toward the total
      Warrant Price due the Corporation for the exercise of the Warrant based upon
      the
      Current Market Price (as defined below) of the Common Stock. All shares of
      Common Stock issuable upon the exercise of this Warrant pursuant to the terms
      hereof shall be validly issued and, upon payment of the Warrant Price, shall
      be
      fully paid and nonassessable and not subject to any preemptive
      rights.

     

    In
      the
      event of any exercise of this Warrant, the Corporation shall deliver to the
      holder hereof, (i) stock certificates for the shares of Common Stock so
      purchased, and (ii) a new Warrant representing the number of shares, if any,
      with respect to which this Warrant shall not then have been exercised effective
      for the duration of the Subscription Period and through the Expiration Date.
      Stock certificates for the shares of Common Stock so purchased shall be dated,
      and the holder hereof shall be deemed for all purposes to be the holder of
      the
      shares of Common Stock so purchased as of, the date of such exercise. Such
      stock
      certificates and new Warrant (as applicable) shall be promptly delivered to
      the
      holder hereof, not exceeding five business days, after the rights represented
      by
      this Warrant shall have been so exercised. Each stock certificate so delivered
      shall be in such denominations as may be requested by the holder hereof and
      shall be registered in the name of said holder or such other name (upon
      compliance with the transfer requirements hereinafter set forth) as shall be
      designated by said holder. The Corporation shall pay any taxes and other
      expenses and charges payable in connection with the preparation, execution
      and
      delivery of stock certificates and new Warrants except that, in case such stock
      certificates shall be registered in a name or names other than the holder of
      this Warrant, funds sufficient to pay all stock transfer taxes which shall
      be
      payable in connection with the execution and delivery of such stock certificates
      shall be paid by the holder hereof to the Corporation at the time of the
      delivery of such stock certificates by the Corporation as mentioned
      above.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

      3.
        Transferability;
        Transfer and Exchange.
        Neither
        this Warrant nor the Warrant Shares shall be transferable except upon the
        conditions specified in this Section 3, which conditions are intended to
        insure
        compliance with the provisions of the Underwriting Agreement, the Securities
        Act, and state securities laws in respect of the transfer of any such
        Securities. This Warrant shall not be sold, transferred, assigned, pledged
        or
        hypothecated by any person, for a period of one year following the date of
        issuance of this Warrant, except that this Warrant may be transferred by
        the
        Underwriter in
        accordance with para. 3.01.04 of the Underwriting Agreement
        ,
        provided that this Warrant upon such transfer remains subject to the one-year
        transfer restriction.

     

    (a)
      Restrictive
      Legends.

     

    (i)
      Unless and until otherwise permitted by this Section 3 and there is an effective
      registration statement covering the issuance of the Warrant Shares, each
      certificate for Warrant Shares issued to you or your nominee, or to any
      subsequent transferee of such certificate, shall be stamped or otherwise
      imprinted with a legend in substantially the following form:

     

    "THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND THUS MAY NOT BE OFFERED FOR SALE, SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED, OR UNLESS AN OPINION OF COUNSEL, SATISFACTORY IN FORM
      AND
      SUBSTANCE TO ZION OIL & GAS, INC., A DELAWARE CORPORATION (THE
      "CORPORATION"), IS OBTAINED TO THE EFFECT THAT AN EXEMPTION FROM SUCH
      REGISTRATION IS AVAILABLE. FURTHER, SUCH TRANSFER IS SUBJECT TO THE CONDITIONS
      SPECIFIED IN A WARRANT DATED AS OF __________, 2008, PURSUANT TO WHICH SUCH
      SHARES WERE ISSUED AND SOLD OR OTHERWISE TRANSFERRED BY THE CORPORATION, A
      COPY
      OF WHICH WARRANT IS ON FILE AND MAY BE INSPECTED AT THE PRINCIPAL OFFICE OF
      THE
      CORPORATION. A COPY OF SUCH WARRANT WILL BE FURNISHED BY THE CORPORATION TO
      THE
      HOLDER HEREOF UPON REQUEST AND WITHOUT CHARGE. UNDER CERTAIN CIRCUMSTANCES
      SPECIFIED IN SUCH WARRANT, THE CORPORATION HAS AGREED TO DELIVER TO THE HOLDER
      HEREOF A NEW CERTIFICATE, NOT BEARING THIS LEGEND, FOR ALL OR PART OF THE NUMBER
      OF SHARES EVIDENCED HEREBY, AS THE CASE MAY BE, REGISTERED IN THE NAME OF SUCH
      HOLDER OR DESIGNATED NOMINEE."

     

    (ii)
      The
      Corporation may order its transfer agents for Warrant Shares to stop the
      transfer of any Warrant Shares until the conditions of this Section 3 with
      respect to the transfer of such shares have been satisfied.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)
      Notice
      of Proposed Transfer
      . If,
      prior to any transfer or sale of any Warrant or Warrant Shares, the holder
      desiring to effect such transfer or sale shall deliver a written notice to
      the
      Corporation describing briefly the manner of such transfer or sale and a written
      opinion of counsel for such holder (provided that such counsel, and the form
      and
      substance of such opinion, are reasonably satisfactory to the Corporation)
      to
      the effect that such transfer or sale may be effected without the registration
      of such securities under the Securities Act, the Corporation shall thereupon
      permit or cause its transfer agent (if any) to permit such transfer or sale
      to
      be effected; provided
      ,
however
      , that
      if in such written notice the transferring holder represents and warrants to
      the
      Corporation that (i) the transfer or sale is to a purchaser or transferee whom
      the transferring holder knows or reasonably believes to be a "qualified
      institutional buyer," as that term is defined in Rule 144A promulgated by
      the Securities and Exchange Commission under the Securities Act ("Rule 144A")
      and (ii) the transferring holder has taken all steps reasonably necessary to
      ensure that such transfer otherwise meets the requirements of the provisions
      of
      Rule 144A, no opinion shall be required.

     

    (c)
      Termination
      of Restrictions.

     

      (i)
        Notwithstanding the foregoing provisions of this Section 3, the restrictions
        imposed by this Section 3 upon the transferability of this Warrant and the
        Warrant Shares shall terminate as to any particular Warrant or Warrant Shares
        when (i) such security shall have been effectively registered under the
        Securities Act and sold by the holder thereof in accordance with such
        registration, or (ii) a written opinion to the effect that such restrictions
        are
        no longer required or necessary under any federal or state securities law
        or
        regulation has been received from counsel for the holder thereof (provided
        that
        such counsel, and the form and substance of such opinion, are reasonably
        satisfactory to the Corporation) or counsel for the Corporation, or (iii)
        such
        security shall have been sold without registration under the Securities Act
        in
        compliance with Rule 144 promulgated by the Securities and Exchange Commission
        under the Securities Act ("Rule 144"), or (iv) the Corporation is reasonably
        satisfied that the holder of such security shall, in accordance with the
        terms
        of Rule 144, be entitled to sell such security pursuant to Rule 144, or (v)
        a
        letter or an order shall have been issued to the holder thereof by the staff
        of
        the Securities and Exchange Commission or such Commission stating that no
        enforcement action shall be recommended by such staff or taken by such
        Commission, as the case may be, if such security is transferred without
        registration under the Securities Act in accordance with the conditions set
        forth in such letter or order and such letter or order specifies that no
        subsequent restrictions on transfer are required.

     

    (ii)
      Whenever the restrictions imposed by this Section 3 shall terminate, as
      hereinabove provided, the holder of any particular Warrant or Warrant Shares
      then outstanding as to which such restrictions shall have terminated shall
      be
      entitled to receive from the Corporation, without expense to such holder, (i)
      one or more new certificates for such Warrant Shares not bearing the restrictive
      legend set forth in Section 3(A) hereof or (ii) a new Warrant not bearing the
      restrictive legend set forth on the face hereof, as
      appropriate.

     

    (d)
      Compliance
      with Rule 144 and Rule 144A
      . At the
      written request of any holder of any Warrant or Warrant Shares who proposes
      to
      sell any such Warrant or Warrant Shares in compliance with Rule 144, the
      Corporation shall furnish to such holder, within ten days after receipt of
      such
      request, a written statement as to whether or not the Corporation is in
      compliance with the filing requirements of the Securities and Exchange
      Commission as set forth in such Rule. For purposes of effecting compliance
      with
      Rule 144A, in connection with any resales of this Warrant or Warrant Shares
      that
      hereafter may be effected pursuant to the provisions of Rule 144A, any holder
      of
      this Warrant or Warrant Shares desiring to effect such resale and each
      prospective institutional purchaser thereof designated by such holder shall
      have
      the right, at any time the Corporation is not subject to Section 13 or 15(d)
      of
      the Securities and Exchange Act, to obtain from the Corporation, upon the
      written request of such holder and at the Corporation's expense the documents
      specified in Section (d)(4)(i) of Rule 144A, as such rule may be amended from
      time to time.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (e)
      Non-Applicability
      of Restrictions on Transfer
      .
      Notwithstanding the provisions of Section 3(b) hereof, any record owner of
      this
      Warrant or Warrant Shares may from time to time transfer all or part of this
      Warrant or all or part of such record owner's Warrant Shares (i) to a nominee
      identified in writing to the Corporation as being the nominee of or for such
      record owner, and any nominee of or for a beneficial owner of this Warrant
      or
      Warrant Shares identified in writing to the Corporation as being the nominee
      of
      or for such beneficial owner may from time to time transfer all of this Warrant
      or all or part of the Warrant Shares registered in the name of such nominee
      but
      held as nominee on behalf of such beneficial owner, to such beneficial owner,
      (ii) to an Affiliate of such record owner, or (iii) if such record owner is
      a
      partnership or limited liability company or the nominee of a partnership or
      limited liability company, to a partner or member, retired partner or member,
      or
      estate of a partner or member or retired partner or member, of such partnership
      or limited liability company, so long as such transfer is in accordance with
      the
      transferee's interest in such partnership and is without consideration;
provided
      ,
however
      , that
      each such transferee represents and warrants to the Corporation that such Person
      is, at the time of transfer, an "accredited investor" as such term is defined
      in
      Rule 501 of Regulation D promulgated under the Securities Act, that each such
      transferee shall remain subject to all restrictions on the transfer herein
      contained.

     

    (f)
      Procedure
      for Transfer
      . Upon
      the permitted transfer by any record owner of any Warrant or Warrant Shares
      in
      accordance with the provisions of this Section 3, such Warrant or Warrant Shares
      may be transferred on the books of the Corporation by the holder hereof in
      person or by duly authorized attorney, upon surrender of the Warrant or Warrant
      Shares at the principal office of the Corporation, properly endorsed and upon
      payment of any necessary transfer tax or other governmental charge imposed
      upon
      such transfer. This Warrant and any Warrant Shares issuable upon exercise hereof
      is exchangeable at the principal office of the Corporation for (i) Warrants
      for
      the purchase of the same aggregate number of shares of Common Stock, each new
      Warrant to represent the right to purchase such number of shares of Common
      Stock
      as the holder hereof shall designate at the time of such exchange, or (ii)
      the
      same number of Warrant Shares, as appropriate. All Warrants issued on transfers
      or exchanges shall be dated the date hereof and shall be identical with this
      Warrant except as to the number of shares of Common Stock issuable pursuant
      hereto.

     

    4.
      Certain
      Adjustments
      . The
      following adjustments shall take effect to the extent that such adjustments
      do
      not result in a Warrant Price lower than the then applicable par value of the
      Common Stock:

     

    (a)
      Adjustment
      for Stock Splits and Combinations
      . If the
      Corporation at any time or from time to time after the date hereof effects
      a
      subdivision of its outstanding shares of Common Stock, the Warrant Price then
      in
      effect immediately before the subdivision shall be proportionately decreased,
      and conversely, if the Corporation at any time or from time to time after the
      date hereof combines the outstanding shares of Common Stock into a smaller
      number of shares, the Warrant Price then in effect immediately before the
      combination shall be proportionately increased. Any adjustment under this
      subsection 4(a) shall become effective at the close of business on the date
      the
      subdivision or combination becomes effective.

     

    (b)
      Adjustment
      for Certain Dividends and Distributions
      . If the
      Corporation at any time or from time to time after the date hereof makes or
      issues, or fixes a record date for the determination of holders of Common Stock
      entitled to receive, a dividend or other distribution payable in additional
      shares of Common Stock, then and in each such event the Warrant Price then
      in
      effect shall be decreased as of the time of such issuance or, in the event
      such
      record date is fixed, as of the close of business on such record date, by
      multiplying the Warrant Price then in effect by a fraction (i) the numerator
      of
      which is the total number of shares of Common Stock issued and outstanding
      immediately prior to the time of such issuance or the close of business on
      such
      record date, and (ii) the denominator of which shall be the total number of
      shares of Common Stock issued and outstanding immediately prior to the time
      of
      such issuance or the close of business on such record date plus the number
      of
      shares of Common Stock issuable in payment of such dividend or distribution;
      provided, however, that if such record date is fixed and such dividend is not
      fully paid or if such distribution is not fully made on the date fixed therefor,
      the Warrant Price shall be recomputed accordingly as of the close of business
      on
      such record date and thereafter the Warrant Price shall be adjusted pursuant
      to
      this subsection 4(b) as of the time of actual payment of such dividends or
      distributions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)
      Adjustments
      for Other Dividends and Distributions
      . In the
      event the Corporation at any time or from time to time after the date hereof
      makes or issues, or fixes a record date for the determination of holders of
      Common Stock entitled to receive, a dividend or other distribution payable
      in
      securities of the Corporation other than shares of Common Stock, then and in
      each such event provision shall be made so that the holder of this Warrant
      shall
      receive, in addition to the number of shares of Warrant Shares receivable
      thereupon, the amount of securities of the Corporation which such holder would
      have received had this Warrant been exercised for shares of Warrant Shares
      on
      the date of such event and had such holder thereafter, during the period from
      the date of such event to and including the exercise date, retained such
      securities receivable by such holder as aforesaid during such period, subject
      to
      all other adjustments called for during such period under this Section 4 with
      respect to the rights of the holder of this Warrant.

     

    (d)
      Adjustment
      for Reclassification, Exchange and Substitution
      . In the
      event that at any time or from time to time after the date hereof, the Common
      Stock issuable upon the exercise of this Warrant is changed into the same or
      a
      different number of shares of any class or classes of stock, whether by
      recapitalization, reclassification or otherwise (other than a subdivision or
      combination of shares or stock dividend or a reorganization, merger,
      consolidation or sale of assets, provided for elsewhere in this Section 4),
      then
      and in any such event the holder of this Warrant shall have the right thereafter
      to exercise this Warrant for the kind and amount of stock and other securities
      and property receivable upon such recapitalization, reclassification or other
      change, by holders of the maximum number of shares of Common Stock into which
      this Warrant could have been exercised immediately prior to such
      recapitalization, reclassification or change, all subject to further adjustment
      as provided herein.

     

    (e)
      Reorganizations,
      Mergers, Consolidations or Sales of Assets
      . If at
      any time or from time to time after the date hereof there is a capital
      reorganization of the Common Stock (other than a recapitalization, subdivision,
      combination, reclassification or exchange of shares provided for elsewhere
      in
      this Section 4) or a merger or consolidation of the Corporation with or into
      another corporation, or the sale of all or substantially all of the
      Corporation's properties and assets to any other person or entity, then, as
      a
      part of such reorganization, merger, consolidation or sale, provision shall
      be
      made so that the holder of this Warrant shall thereafter be entitled to receive
      upon exercise of this Warrant the number of shares of stock or other securities
      or property of the Corporation, or of the successor corporation resulting from
      such merger or consolidation or sale, for which a holder of the number of shares
      of Common Stock deliverable upon exercise would have been entitled on such
      capital reorganization, merger, consolidation, or sale. In any such case,
      appropriate adjustment shall be made in the application of the provisions of
      this Section 4 with respect to the rights of the holder of this Warrant after
      the reorganization, merger, consolidation or sale to the end that the provisions
      of this Section 4 (including adjustment of the Warrant Price then in effect
      and
      the number of shares purchasable upon exercise of this Warrant) shall be
      applicable after that event and be as nearly equivalent as may be
      practicable.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.
      Procedural
      Items.

     

    (a)
      Record
      Date
      . In the
      event of (i) the Corporation setting a record date for the purpose of any
      dividend or other distribution, or (ii) any capital reorganization of the
      Corporation, any reclassification or recapitalization of the capital stock
      of
      the Corporation, any merger or consolidation of the Corporation with or into
      any
      other corporation, or any transfer of all or substantially all of the assets
      of
      the Corporation to any other person or entity or any voluntary or involuntary
      dissolution, liquidation or winding up of the Corporation, the Corporation
      shall
      mail to the holder hereof at least ten (10) days prior to the record date
      specified therein, a notice specifying (1) the record date for purposes of
      such
      dividend or distribution and a description of such dividend or distribution,
      (2)
      the date on which any such reorganization, reclassification, transfer,
      consolidation, merger, dissolution, liquidation or winding up is expected to
      become effective, and (3) the date, if any, that is to be fixed, as to when
      the
      holders of record of Common Stock shall be entitled to exchange their shares
      of
      Common Stock for securities or other property deliverable upon such
      reorganization, reclassification, transfer, consolidation, merger, dissolution,
      liquidation or winding up.

     

    (b)
      Fractional
      Shares
      . No
      fractional shares of Common Stock shall be issued upon exercise of this Warrant.
      In lieu of any fractional share to which the holder would otherwise be entitled,
      the Corporation shall pay round up the nearest whole number.

     

    (c)
      Reservation
      of Shares
      . The
      Corporation shall at all times reserve and keep available out of its authorized
      but unissued shares of Common Stock, solely for the purpose of effecting the
      exercise of this Warrant into the Common Stock issuable hereunder, such number
      of its shares of Common Stock as shall be sufficient to effect the full exercise
      of this Warrant; and if at any time the number of authorized but unissued shares
      of Common Stock shall not be sufficient to effect the full exercise of this
      Warrant, the Corporation will take such corporate action as may, in the opinion
      of its counsel, be necessary to increase its authorized but unissued shares
      of
      Common Stock to such number of shares as shall be sufficient for such
      purposes.

     

    6.
      No
      Dilution or Impairment
      . The
      Corporation will not, by amendment of its certificate 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 of this Warrant,
      but will at all times in good faith assist in the carrying out of all such
      terms
      and in the taking of all such actions as may be necessary or appropriate in
      order to protect the rights of the holders of this Warrant against dilution
      or
      impairment. Without limiting the generality of the foregoing, the Corporation
      (a) will not increase the par value of the shares of Common Stock above the
      amount payable therefor on such exercise, (b) will take all such action as
      may
      be necessary or appropriate in order that the Corporation may validly and
      legally issue fully paid and nonassessable shares of Common Stock on the
      exercise of this Warrant and (c) will not transfer all or substantially all
      of
      its properties and assets to any other person (corporate or otherwise), or
      consolidate with or merge into any other person or permit any such person to
      consolidate with or merge into the Corporation (if the Corporation is not the
      surviving person), unless such other person shall expressly assume in writing
      and become bound by all the terms of this Warrant.

     

    7.
      Shares
      to be Fully Paid; Reservation of Shares
      . The
      Corporation covenants and agrees that all Common Stock issued upon exercise
      of
      this Warrant will, upon issuance, be fully paid and nonassessable and free
      from
      preemptive rights and all taxes, liens and charges with respect to the issuance
      thereof. Furthermore, and without limiting the generality of the foregoing,
      the
      Corporation covenants and agrees that it will from time to time take all such
      action as may be required to assure that the par value per share of Common
      Stock
      is at all times equal to or less than the effective Warrant Price.

     

    8.
      Notices
      . All
      notices and other communications hereunder shall be in writing or by telex,
      telegram or telecopy, and shall be deemed to have been duly made when delivered
      in person or sent by telex, telegram, telecopy, same day or overnight courier,
      or 72 hours after having been deposited in the United States first class or
      registered or certified mail return receipt requested, postage prepaid. Notices
      shall be sent:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    If
      to the
      holder of the Warrant:

     

    to
      the
      name, address and fax number

    set
      forth
      on the first page of this warrant

     

    If
      to the
      Corporation:

     

    Zion
      Oil
& Gas, Inc.

    6510
      Abrams Road, Suite 300

    Dallas,
      Texas 75231

    Attn:
      Treasurer

    Fax:
      (214) 221-6510

     

    9.
      Governing
      Law
      . This
      Warrant shall be construed in accordance with and governed by the laws of the
      State of Delaware without regard to the principles of conflicts of
      laws.

     

    10.
      Remedies
      . The
      Corporation stipulates that the remedies at law of the holder of this Warrant
      in
      the event of any default by the Corporation in the performance of or compliance
      with any of the terms of this Warrant are not and will not be adequate, and
      that
      such terms may be specifically enforced by a decree for the specific performance
      of any agreement contained herein or by an injunction against a violation of
      any
      of the terms hereof or otherwise.

     

    11.
      Registration
      . The
      warrants in the Series shall be numbered and shall be registered in a warrant
      register as they are issued. The Corporation shall be entitled to treat the
      registered holder of any warrant in the Series on the warrant register as the
      owner in fact thereof for all purposes and shall not be bound to recognize
      any
      equitable or other claim to or interest in such warrant on the part of any
      other
      person, and shall not be liable for any registration or transfer of warrants
      which are registered or to be registered in the name of a fiduciary or the
      nominee of a fiduciary unless made with the actual knowledge that a fiduciary
      or
      nominee is committing a breach of trust in requesting such registration of
      transfer, or with knowledge of such facts that its participation therein amounts
      to bad faith.

     

    12.
      Miscellaneous
      .

     

    (a)
      Amendments
      . This
      Warrant and any provision hereof may be amended only by an instrument in writing
      signed by the holder of this Warrant and the Corporation, except the Corporation
      may waive any of its rights for the benefit of the holder by notice in writing
      to the holder of this Warrant, including, without limitation, extension of
      the
      date of termination or lowering of the exercise price.

     

    (b)
      Descriptive
      Headings
      . The
      descriptive headings of the several Sections of this Warrant are inserted for
      purposes of reference only, and shall not affect the meaning or construction
      of
      any of the provisions hereof.

     

    13.
      Definitions
      . For
      the purposes of this Warrant the following terms have the following
      meanings:

     

    "Affiliate"
      shall mean any entity controlling, controlled by or under common control with
      another entity. For the purposes of this definition, "control" shall have the
      meaning presently specified for that word in Rule 405 promulgated by the
      Securities and Exchange Commission under the Securities Act. With respect to
      any
      Person who is a limited partnership, "Affiliate" shall also mean any general
      or
      limited partner of such limited partnership, or any Person which is a general
      partner in a general or limited partnership which is a general partner of such
      limited partnership.

     

    "Current
      Market Price" shall mean, in respect of any share of Common Stock on any date
      herein specified,

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (1)
      if
      there shall not then be a public market for the Common Stock, the higher
      of

     

    (a)
      the
      book value per share of Common Stock at such date, and

     

    (b)
      the
      price per share of Common Stock in the most recent closing of a private
      placement of Common Stock to unrelated third parties purchasing at least
      $200,000 in such private placement,

     

    or

     

    (2)
      if
      there shall then be a public market for the Common Stock, the average of the
      daily market prices for the five (5) consecutive trading days immediately before
      such date. The daily market price for each such trading day shall be (i) the
      closing bid price on such day on the principal stock exchange (including Nasdaq)
      on which such Common Stock is then listed or admitted to trading, or quoted,
      as
      applicable, (ii) if no sale takes place on such day on any such exchange, the
      last reported closing bid price on such day as officially quoted on any such
      exchange (including Nasdaq), (iii) if the Common Stock is not then listed or
      admitted to trading on any stock exchange, the last reported closing bid price
      on such day in the over-the-counter market, as furnished by the National
      Association of Securities Dealers Automatic Quotation System or the National
      Quotation Bureau, Inc., (iv) if neither such corporation at the time is engaged
      in the business of reporting such prices, as furnished by any similar firm
      then
      engaged in such business, or (v) if there is no such firm, as furnished by
      any
      member of the FINRA selected mutually by the holder of this Warrant and the
      Company or, if they cannot agree upon such selection, as selected by two such
      members of the FINRA, one of which shall be selected by holder of this Warrant
      and one of which shall be selected by the Company.

     

    "Person"
      shall mean an individual, a corporation, a partnership, a limited liability
      company, a trust, an unincorporated organization or a government organization
      or
      an agency or political subdivision thereof.

     

    "Securities
      Act" shall mean the Securities Act of 1933, as amended,, together with all
      rules
      and regulations promulgated thereunder.

     

    "Securities
      and Exchange Commission" shall mean the United States Securities and Exchange
      Commission or any successor to the functions of such agency.

     

    IN
      WITNESS WHEREOF, the Corporation has caused this Warrant to be executed
      effective as of the date first above written.

     

    
      	
              ZION
                OIL & GAS, INC.

            
	 	 
	
              By:

            	
               

            	
            
	
              Richard
                Rinberg, Chief Executive Officer

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

     

    SUBSCRIPTION
      FORM

     

    [To
      be
      executed only upon exercise of Warrant]

     

    Date:
      _________________

     

    Name

    Address

    Facsimile
      No.:

     

    Zion
      Oil
& Gas, Inc.

    6510
      Abrams Road, Suite 300

    Dallas,
      TX 75231

    Attn:
      Chief Executive Officer

    Fax:
      (214) 221-6510

     

    1.
      The
      undersigned registered owner hereby elects to purchase shares of the Common
      Stock of ________ pursuant to the terms of the attached Warrant, and tenders
      herewith payment of the purchase price of such shares in full.

     

    2.
      The
      undersigned registered owner hereby elects to convert the attached Warrant
      into
      Common Stock of _________ through "cashless exercise" in the manner specified
      in
      the Warrant. This conversion is exercised with respect to _____________________
      of the Shares covered by the Warrant.

     

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

     

    ___________________________________

     

    (Name
      of
      Registered Owner)

     

    ___________________________________

     

    (Signature
      of Registered Owner)

     

    ___________________________________

     

    (Street
      Address)

     

    ___________________________________

     

    (City)
      (State) (Zip Code)

     

    and,
      if
      such shares of Common Stock shall not include all of the shares of Common Stock
      issuable as provided in this Warrant, please deliver a new Warrant of like
      tenor
      and date for the balance of the shares of Common Stock issuable hereunder to
      the
      undersigned.

     

    NOTICE:
      The signature on this subscription must correspond with the name as written
      upon
      the face of the attached Warrant in every particular, without alteration or
      enlargement or any change whatsoever, and if the Warrant representing the shares
      or any Warrant Certificate representing Warrants not exercised is to be
      registered in a name other than that in which this Warrant is registered, the
      signature of the holder hereof must be guaranteed.

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