Document:

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                                                                   EXHIBIT 10.78

This Warrant and the rights represented hereby shall not be transferable at any
time unless (i) a registration statement under the Securities Act of 1933, as
amended, shall be in effect with respect to this Warrant or the Shares issuable
hereunder at such time, or (ii) the transfer is made in compliance with the
provisions of Section 5.

Number:                                                            25,000 Shares

                                    WARRANT
                              TO PURCHASE SHARES
                                      OF
                             TIPPERARY CORPORATION

     This certifies that, for value received, Richard A. Barber, an individual
residing in Brisbane, Queensland, Australia ("Barber"), or his registered
assigns, is entitled to purchase from TIPPERARY CORPORATION, a Texas corporation
(the "Company"), twenty-five thousand (25,000) Shares, at the price of Three
Dollars and 44/100 ($3.44) U.S. per Share (as defined in Section 3) at any time,
or in part from time to time in accordance with the following Vesting Schedule
("Vesting Schedule"):

           Date:                                Total Shares Subject to Exercise
From and after January 1, 2001                                8,333
From and after January 1, 2002                               16,666
From and after January 1, 2003                               25,000

This Warrant shall expire, if not exercised prior thereto, two (2) years after
the resignation or removal of Barber as a consultant of the Company.  If Barber
should resign or be removed as a consultant from the Company, then this Warrant
shall be vested only to the extent vested on such date of resignation or removal
according to the Vesting Schedule.  The provisions as to adjustment of the
initial exercise price set forth above and the number of Shares to be issued
upon the occurrence of certain events (the Provisions as to Adjustment) are more
fully set forth in Annex I hereto.  (Hereinafter, the initial exercise price set
forth above in this paragraph for the purchase of Shares upon the exercise of
this Warrant, as adjusted pursuant to the Provisions as to Adjustment, is
referred to as the "Exercise Price").  This Warrant is subject to the following
provision, terms and conditions:

     1.  Exercise of Warrant.
         -------------------

     (a) The rights represented by this Warrant may be exercised by the holder
hereof, in whole or in part, (but not as to a fractional Share), by the
surrender of this Warrant at the Company's principal office located in Denver,
Colorado (or such other office or agency of the Company as the Company may
designate by notice in writing to the holder hereof at the address of such
holder appearing on the books of the Company at any time within the period above
named) and delivery
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of a completed subscription form in the form attached to this Warrant as
Exhibit A, and upon payment to the Company of the Exercise Price for such
---------
Shares.

     (b) Payment of the Exercise Price shall be made by a combination of any one
or more of the following:

         (i)  By application, to the extent permitted by applicable law, of
              Shares or other securities of the Company owned by the holder
              hereof, the value of which for such purpose shall be the fair
              market value thereof determined in good faith by the Company and
              the holder hereof at the time of such exercise; provided,
              however, that in order to apply such Shares or other securities
              of the Company in the exercise hereof, each of the following
              conditions must be met:

              (A)  Such Shares or other securities of the Company shall have
                   been owned, without material encumbrance, contingency or
                   risk of forfeiture relating to the ownership rights, for at
                   least six months and at all times during said six month
                   period by the holder hereof, and within said six month
                   period such Shares or other securities of the Company shall
                   not have been obtained through exercise of any option,
                   warrant or right to obtain such Shares of other securities
                   or through the conversion of any other security; and

              (B)  Such Shares or other securities shall not be or include: (1)
                   options, warrants or similar rights to acquire Shares or
                   other securities of the Company by the holder hereof; or (2)
                   securities owned by the holder hereof which are convertible
                   in whole or in part into Shares or other securities of the
                   Company.

         (ii) in cash or by certified check or bank draft in New York Clearing
              House funds.

     (c) The Company agrees that any Shares so purchased by the exercise of this
Warrant shall be deemed to be issued to the holder hereof as the record owner of
such Shares as of the close of business on the date on which this Warrant shall
have been surrendered, the completed subscription form delivered, and payment in
full is made and delivered to the Company for such Shares as aforesaid.

     (d) Stock certificates evidencing Shares so purchased shall be delivered to
the holder hereof as promptly as practicable, after the rights represented by
this Warrant shall have been so exercised.  If this Warrant shall have been
exercised only in part, and unless this Warrant has expired, a new Warrant
representing the number of Shares with respect to which this Warrant shall not
then have been exercised shall also be delivered to the holder hereof within
such time.  Notwithstanding the foregoing, however, the Company shall not be
required to deliver any stock certificate evidencing Shares upon exercise of
this Warrant except in accordance with the provisions,
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and subject to the limitations, of Section 5. The Company will pay all expenses
and charges payable in connection with the preparation, execution and delivery
of stock certificates and any new Warrants or promissory notes.

     2.  Certain Covenants of the Company.  The Company covenants and agrees as
         --------------------------------
follows:

     (a) All Shares which may be issued upon the exercise of the rights
represented by this Warrant (all such Shares, whether previously issued or
subject to issuance upon the exercise of this Warrant, are from time to time
referred to herein as "Warrant Shares") will, upon issuance, be duly authorized
and issued, fully paid and nonassessable and free from all taxes, liens and
charges with respect to the issuance thereof.

     (b) During the period within which the rights represented by this Warrant
may be exercised, and only insofar as the Vesting Schedule herein permits the
exercise of this Warrant, the Company will at all times have authorized and
reserved free of preemptive or other rights for the exclusive purpose of
issuance upon exercise of the purchase rights evidenced by this Warrant, a
sufficient number of Shares to provide for the exercise of rights represented by
this Warrant.

     (c) The Company will not, by amendment or restatement of the Articles of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, issuance or sale of securities or otherwise, avoid or take any action
which would have the effect of avoiding the performance of any of the terms to
be performed hereunder by the Company, but will at all times in good faith carry
out all of the provisions of this Warrant and take all such action as may be
necessary or appropriate to protect the rights of the holder hereof against
dilution or other impairment and, in particular, will not permit the par value
of any Share to be or become greater than the then effective Exercise Price.

     3.  Definition of Shares.  As used herein, the term "Shares" shall mean and
         --------------------
include shares of the Common Stock, par value $.02 U.S. per share, of the
Company as are constituted and exist on the date hereof, and shall also include
any other class of the capital stock of the Company hereafter authorized which
shall neither be limited to a fixed sum or percentage of par value in respect to
the rights of the holders thereof to receive dividends and to participate in the
distribution of assets upon the voluntary or involuntary liquidation,
dissolution or winding up of the Company, nor be subject at any time to
redemption by the Company; provided that the Shares receivable upon exercise of
this Warrant shall include only Shares of the type as are constituted and exist
on the date hereof or Shares resulting from any reclassification of the Shares
as provided for in paragraph (C) of the Provisions as to Adjustment.

     4.  No Rights or Liabilities as a Shareholder.  This Warrant shall not
         -----------------------------------------
entitle the holder hereof as such to any rights whatsoever, including, without
limitation, voting rights, as a holder of Shares of the Company.  No provisions
hereof, in the absence of affirmative action by the holder

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hereof to purchase Shares, and no mere enumeration herein of the rights or
privileges of such holder, shall give rise to any liability of such holder as a
holder of Shares of the Company, regardless of who may assert such liability.

     5.  Restrictions on Transfer.
         ------------------------

     (a) This Warrant shall not be exercisable by a transferee hereof and/or
transferable and the Warrant Shares shall not be transferable except upon the
conditions specified in this Section 5, which conditions are intended, among
other things, to ensure compliance with the provisions of the Securities Act of
1933, as amended, and the rules and regulations of the Securities and Exchange
Commission (the "Commission") thereunder (collectively the "Securities Act"), in
respect of the exercise and/or transfer of this Warrant and/or transfer of such
Warrant Shares.

     (b) This Warrant and the Warrant Shares shall not be transferable (except
for a transfer of this Warrant or the Warrant Shares in an offering registered
under the Securities Act, including, without limitation, a transfer in a
registered offering effected pursuant to Section 6, and any subsequent transfer)
unless, prior to any transfer, the holder hereof shall have received from its
transferee reasonable assurances that such person is aware that this Warrant and
the Warrant Shares have not been registered under the Securities Act and that
such person is acquiring this Warrant or the Warrant Shares for investment only
and not with the view to the disposition or public offering thereof (unless in
an offering registered under the Securities Act of 1933 or exempt therefrom),
and that such person is aware that the stock certificates evidencing the Warrant
Shares shall bear a legend restricting transfer and disposition thereof in
accordance with the Securities Act unless, in the opinion of counsel to the
Company, such legend may be omitted.  In the event of any transfer of this
Warrant (other than a transfer in an offering registered under the Securities
Act, including, without limitation, a transfer in a registered offering effected
pursuant to Section 6, and any subsequent transfer), the holder hereof shall
provide an opinion of counsel, who shall be reasonably satisfactory to the
Company, that an exemption from the registration requirements of the Securities
Act is available.

     (c) Any permitted subsequent holder of this Warrant shall be subject to all
the terms and conditions herein, and shall acknowledge, in writing, upon receipt
of this Warrant his or her acceptance of the terms and conditions herein.

     (d) To facilitate sales by a holder of this Warrant or Warrant Shares in
transactions qualifying under Rule 144 promulgated by the Commission under the
Securities Act, if available, the Company agrees to satisfy the current public
information requirements of said Rule 144, for as long as the Shares remain
registered under the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission thereunder (collectively the "Exchange Act"),
and to provide said holder upon request with such other information as such
holder may require for compliance with the provisions of said Rule 144.

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     6.  Registration Under Securities Act.
         ---------------------------------

     (a) If the Company at any time proposes to register any issuance of its
securities under the Securities Act (other than a registration on Form S-8 in
connection with an employee stock purchase or option plan or on Form S-4 in
connection with mergers, acquisitions or exchange offerings), the Company will
at such time give prompt written notice to the holder hereof and to the holders
of all other Warrant Shares issuable from any outstanding Warrants (such holders
are hereinafter referred to as the "Prospective Sellers") of its intention to do
so.  Upon the written request of a Prospective Seller, given within 30 days
after receipt of any such notice (which request shall state the intended method
of disposition of the Warrant Shares to be transferred by such Prospective
Seller), the Company shall use its best efforts to cause all Warrant Shares, the
holders of which (or of the Warrants to which the same are related), to the
extent vested in accordance with the Vesting Schedule, shall have so requested
registration of the transfer thereof, to be registered under the Securities Act,
all to the extent requisite to permit the sale or other disposition (in
accordance with the intended method thereof as aforesaid) by the Prospective
Sellers of such Warrant Shares.  The rights granted pursuant to this Section
6(a) shall not be effective with respect to the Prospective Seller in the case
of an underwritten public offering of securities of the Company by the Company
unless each Prospective Seller agrees to the terms and conditions, including
underwriting discounts and allowances, specified by the managing underwriter of
such offering with respect to such Warrant Shares.  The Company shall have the
right to reduce the number of Warrant Shares of the Prospective Sellers to be
included in a registration statement pursuant to the exercise of the rights
granted by this Section 6(a) if, and to the extent, that the managing
underwriter of such offering is of the good faith opinion, supported by written
reasons therefor, that the inclusion of such Warrant Shares would materially
adversely affect the marketing of the securities of the Company to be offered;
provided, that any such reduction of the number of Warrant Shares the transfer
of which is to be registered on behalf of the Prospective Sellers shall be made
on the basis of a pro rata reduction of all Warrant Shares of all Prospective
Sellers.

     (b) If and whenever the Company is required by the provisions of this
Section 6 to use its best efforts to effect the registration of any transfer of
Warrant Shares under the Securities Act, the Company will, as expeditiously as
possible,

         (i)   prepare and file with the Commission a registration statement
               with respect to such transfer and use its best efforts to cause
               such registration statement to become and remain effective, but
               not for any period longer than nine months;

         (ii)  prepare and file with the Commission such amendments and
               supplements to such registration statement and the prospectus
               used in connection therewith as may be necessary to keep such
               registration statement effective, and to comply with the
               provisions of the Securities Act with respect to the transfer

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               of all securities covered by such registration statement,
               including, without limitation, taking all necessary actions
               whenever the Prospective Sellers of the Warrant Shares covered by
               such registration statement shall desire to dispose of the same;

         (iii) furnish to each Prospective Seller such number of copies of a
               prospectus, including a preliminary prospectus, in conformity
               with the requirements of the Securities Act, and such other
               documents, as such Prospective Seller may reasonably request in
               order to facilitate the disposition of the Warrant Shares owned
               by such Prospective Seller and covered by such registration
               statement;

         (iv)  use its best efforts to register or qualify the securities
               covered by such registration statement under such other
               securities or blue sky laws of such jurisdictions as each
               Prospective Seller shall request, and use its best efforts to do
               any and all other acts and things which may be reasonably
               necessary to enable such Prospective Seller to consummate the
               disposition in such jurisdiction of the Warrant Shares owned by
               such Prospective Seller and covered by such registration
               statement; provided that, notwithstanding the foregoing, the
               Company shall not be required to register in any jurisdiction as
               a broker or dealer of securities or to grant its consent to
               service of process in any such jurisdiction solely on account of
               such intended disposition by such Prospective Seller;

         (v)   furnish to the Prospective Sellers whose intended dispositions
               are registered a signed copy of an opinion of counsel for the
               Company, in form and substance acceptable to such Prospective
               Sellers, to the effect that: (A) a registration statement
               covering such dispositions of Warrant Shares has been filed with
               the Commission under the Securities Act and has been made
               effective by order of the Commission, (B) such registration
               statement and the prospectus contained therein and any amendments
               or supplements thereto comply as to form in all material respects
               with the requirements of the Securities Act, and nothing has come
               to such counsel's attention which would cause him to believe that
               the registration statement or such prospectus, amendment or
               supplement, at the time such registration statement or amendment
               became effective or such supplement was filed with the
               Commission, contained any untrue statement of a material fact or
               omitted to state a material fact required to be stated therein or
               necessary to make the statements therein (in the case of such
               prospectus, amendment or supplement, in the light of the
               circumstances under which they were made) not misleading
               (provided that such counsel need not render any opinion with
               respect to the financial statements and other financial,
               engineering and statistical data

Page 6 - Warrant to Purchase Shares
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               included therein), and (C) to the best of such counsel's
               knowledge, no stop order has been issued by the Commission
               suspending the effectiveness of such registration statement and
               no proceedings for the issuance of such a stop order are
               threatened or contemplated;

        (vi)   furnish to the Prospective Sellers whose intended dispositions
               are required a blue sky survey in the form and of the substance
               customarily prepared by counsel for the Company and accepted by
               sellers of securities in similar offerings, discussing and
               describing the application provisions of the securities or blue
               sky laws of each state or jurisdiction in which the Company shall
               be required, pursuant to Section 6(c)(iv), to register or qualify
               such intended dispositions of such Warrant Shares, or, in the
               event counsel for the underwriters in such offering shall be
               preparing a blue sky survey, cause such counsel to furnish such
               survey to, and to allow reliance thereon by, such Prospective
               Sellers;

        (vii)  otherwise use its best efforts to comply with all applicable
               rules and regulations of the Commission under the Securities Act
               and the Exchange Act, insofar as they relate to such registration
               and such registration statement; and

        (viii) use its best efforts to list such Warrant Shares on any
               securities exchange on which any securities of the Company are
               then listed or to admit such Warrant Shares for trading in any
               national market system in which any securities of the Company are
               then admitted for trading, if the listing or admission of such
               securities is then permitted under the rules of such exchange or
               system.

     (c) With respect to the registration by the Company of transfers of Warrant
Shares under the Securities Act pursuant to Section 6(a), the Company shall pay
all expenses incurred by it in complying with this Section 6 (including, without
limitation, all registration and filing fees, printing expenses, blue sky fees
and expenses, costs and expenses of audits, and reasonable fees and
disbursements of counsel for the Company and special counsel designated by
Prospective Sellers owning a majority of the Warrant Shares covered by such
registration, but specifically excluding any underwriting discounts and
allowances that are allocable to the Warrant Shares being sold by, and which
shall be paid by, the Prospective Sellers; provided, however, that if any
registration statement filed with the Commission by the Company under Section
6(a) shall not be declared effective by the Commission, such attempted
registration shall not constitute a registration under this Section 6(c).

     (d) It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Section 6 that each Prospective Seller, the
transfer of whose Warrant Shares is registered or to be registered under each
such registration, shall furnish to the Company such written

Page 7 - Warrant to Purchase Shares
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information regarding the securities held by such Prospective Seller as the
Company shall reasonably request and as shall be required in connection with the
action to be taken by the Company.

     (e) (i)  In the event of any registration of any transfer of Warrant
Shares under the Securities Act pursuant to this Section 6, the Company will
indemnify and hold harmless each Prospective Seller of such securities, each of
its officers, directors and partners, and each other person, if any, who
controls such Prospective Seller within the meaning of the Securities Act, and
each underwriter, if any, who participates in the offering of such securities,
against any losses, claims, damages or liabilities (or actions in respect
thereof), joint or several, to which each Prospective Seller, officer, director
or partner, controlling person or underwriter may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained, on
the effective date thereof, in any registration statement under which such
transfer of securities was registered under the Securities Act, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, or any violation by the Company of the
Securities Act, and will reimburse such Prospective Seller and each of its
officers, directors and partners, and each such controlling person or
underwriter, for any legal or any other expenses reasonably incurred by such
Prospective Seller or its officers, directors and partners or controlling
persons or by each such underwriter, in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, preliminary prospectus or prospectus or such
amendment or supplement in reliance upon and in conformity with written
information furnished to the Company through an instrument duly executed by such
Prospective Seller specifically for use in the preparation thereof.  In the
event of any registration by the Company or any transfer of securities under the
Securities Act pursuant to this Section 6, each Prospective Seller of Warrant
Shares covered by such registration will indemnify and hold harmless the
Company, each other person, if any, who controls the Company within the meaning
of the Securities Act and each officer and director of the Company and the other
Prospective Sellers to the same extent that the Company agrees to indemnify it,
but only with respect to the written information relating to such Prospective
Seller furnished to the Company by such Prospective Seller aforesaid.

         (ii) Each indemnified party shall, as promptly as practicable upon
receipt of notice of the commencement of any action against such indemnified
party or its officers, directors or partners, or any controlling person of such
indemnified party, in respect of which indemnity may be sought from an
indemnifying party on account of the indemnity agreement contained in Section
6(e)(i), notify the indemnifying party in writing of the commencement thereof.
The omission of such indemnified party to so notify the indemnifying party of
any such action shall not relieve the

Page 8 - Warrant to Purchase Shares
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indemnifying party from any liability which it may have on account of the
indemnity agreement contained in Section 6(e)(i) to the extent that the failure
to receive such notice within a reasonable period of time shall not have caused
harm, loss or damage to the indemnifying party, provided that, conversely, if
such failure to receive notice shall have caused any harm, loss or damage to the
indemnifying party, such failure shall constitute a defense to any liability
which such indemnifying party may have on account of such agreement to the
extent of the harm, loss or damage so caused. In case any such action shall be
brought against any indemnified party, its officers, directors and partners, or
any such controlling person, and such indemnified party shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate in (and, to the extent that the indemnifying party shall
wish, to direct) the defense thereof at the indemnifying party's own expense, in
which event the defense shall be conducted by recognized counsel chosen by the
indemnifying party and approved by the indemnified party (whose approval shall
not unreasonably be withheld) and the indemnified party may participate in such
defense at its own expense (unless it is advised by counsel that actual or
potential differing interests or defenses exist or may exist, in which case such
expenses shall be paid by the indemnifying party, provided that the indemnifying
party shall not be required to pay the expenses for more than one counsel for
all such indemnified parties).

     7.  Transfer; Ownership.  Subject to Section 5, this Warrant and all rights
         -------------------
hereunder are transferable, in whole or in part, at the office or agency of the
Company referred to in Section 1 by the holder hereof in person or by a duly
authorized attorney, upon surrender of this Warrant, with an assignment,
acceptable to the Company, duly completed, at which time a new Warrant shall be
made and delivered by the Company, of the same tenor as this Warrant but
registered in the name of the transferee.  The holder of this Warrant, by taking
or holding the same, consents and agrees that this Warrant, when endorsed in
blank, shall be deemed negotiable, and that the holder hereof, when this Warrant
shall have been so endorsed, may be treated by the Company and all other persons
dealing with this Warrant as the absolute owner hereof for any purpose and as
the person entitled to exercise the rights represented by this Warrant and to
transfer this Warrant on the books of the Company, any notice to the contrary
notwithstanding; but until such transfer on such books, the Company may treat
the registered holder hereof as the owner hereof for all purposes.  Any transfer
of this Warrant shall be made in compliance with the Securities Act and any
applicable statute securities or blue sky laws.

     8.  Exchange and Replacement.  Subject to Section 7, this Warrant is
         ------------------------
exchangeable, upon the surrender hereof by the holder hereof at the office or
agency of the Company referred to in Section 1, for new Warrants of like tenor
and date representing in the aggregate the right to purchase the number of
Shares which may be purchased hereunder, each of such new Warrants to represent
the right to purchase such number of Shares as shall be designated by said
holder hereof at the time of such surrender.  Upon receipt by the Company at the
office or agency referred to in Section 1 of evidence reasonably satisfactory to
it of the loss, theft or destruction of this Warrant and of indemnity or
security reasonably satisfactory to it (provided that the written indemnity of
the

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holder hereof shall be deemed reasonably satisfactory to the Company for such
purposes), the Company will deliver a new Warrant of like tenor and date in
replacement of this Warrant. This Warrant shall be promptly canceled by the
Company upon the surrender hereof in connection with any transfer, exchange or
replacement. The Company will pay all expenses and charges payable in connection
with the preparation, execution and delivery of Warrants pursuant to Section 7
and this Section 8.

     9.  Notices.  Any notice or other document required or permitted to be
         -------
given or delivered to the holder hereof shall be delivered at, or sent by
certified or registered mail to, Level 5, 359 Queen Street, Brisbane,
Queensland, Australia, or to such other address as shall have been furnished to
the Company in writing by the holder hereof.  Any notice or other document
required or permitted to be given or delivered to the Company shall be delivered
at, or sent by certified or registered mail to, 633 Seventeenth Street, Suite
1550, Denver, Colorado 80202, or to such other address as shall have been
furnished in writing to the holder hereof by the Company.  Any notice so
addressed and mailed by registered or certified mail or otherwise delivered,
shall be deemed to be given when actually received by the addressee.

     10. GOVERNING LAW.  THIS WARRANT SHALL BE GOVERNED BY, AND CONSTRUED AND
         -------------
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

     11. Miscellaneous.  This Warrant will be binding upon any entity
         -------------
succeeding to the Company by consolidation or acquisition of all or
substantially all of the Company's assets, and upon any successor or assign of
the holder hereto.  This Warrant and any provision hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party (or any predecessor in interest thereof) against whom enforcement of the
same is sought.  The headings in this Warrant are for purposes of reference only
and shall not affect the meaning or construction of any of the provisions
hereon.

     IN WITNESS WHEREOF, Tipperary Corporation has caused this Warrant to be
signed by its duly authorized officers, under its corporate seal, to be dated
June 29, 2000.

                              TIPPERARY CORPORATION

                              BY:  /s/ David L. Bradshaw
                                   ---------------------
                                ITS:  President
                                      ------------------

(CORPORATE SEAL)

ATTEST:   /s/ Elaine R. Treece
          --------------------
   ITS:   Secretary

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                                                                         Annex 1

                             TIPPERARY CORPORATION

                         PROVISIONS AS TO ADJUSTMENT OF
                      EXERCISE PRICE AND NUMBER OF SHARES
                    ISSUED UPON OCCURRENCE OF CERTAIN EVENTS
                    ----------------------------------------

     The Exercise Price and the number of Shares issuable upon the exercise of
the annexed Warrant to purchase shares of TIPPERARY CORPORATION, a Texas
corporation (herein and in this Warrant referred to as the "Company"), shall be
subject to adjustment from time to time as hereinafter provided; that in no
event shall the Exercise Price be increased to a price greater than Three
Dollars and 44/100 ($3.44) U.S. per Share, except as provided by paragraph (C).
Upon each adjustment of the Exercise Price, the holder of this Warrant shall
thereafter be entitled to purchase, at the Exercise Price resulting from such
adjustment, the number of Shares obtained by multiplying the number of Shares
purchasable pursuant hereto immediately prior to such adjustment by a fraction,
the numerator of which is the Exercise Price in effect immediately prior to such
adjustment and the denominator of which is the Exercise Price resulting from
such adjustment.  In making the adjustments to the Exercise Price and the number
of Shares issuable upon the exercise of this Warrant, the following provisions
shall be applicable:

     (A) If and whenever the Company shall issue or sell any Shares for
consideration per Share that is less than the Exercise Price in effect
immediately prior to the time of such issue or sale at less than the Market
Price (as hereinafter defined) of such Shares on the date of such issue or sale,
then forthwith upon such issue or sale the Exercise Price in effect immediately
prior thereto shall be adjusted to an amount (calculated to the nearest cent)
determined by dividing (i) an amount equal to the sum of (a) the number of
Shares outstanding immediately prior to such issue or sale multiplied by the
Exercise Price in effect immediately prior to such issue or sale, and (b) the
consideration, if any, received by the Company upon such issue or sale by (ii)
the total number of Shares outstanding immediately after such issue or sale;
provided, however, that no adjustment shall be made hereunder by reason of:

         (i)   the grant of this Warrant or the issuance of Shares upon the
               exercise of this Warrant or any other outstanding Warrant;

         (ii)  the grant by the Company of options to purchase shares in
               connection with any purchase or option plan for the benefit of
               employees of the Company, or any affiliates or subsidiaries
               thereof; or

         (iii) the issuance (whether directly or by assumption in a merger or
               otherwise) or sale (including any issuance or sale to holders of
               Shares) of any securities convertible into or exchangeable for
               Shares (such convertible or exchangeable
<PAGE>

               securities are herein referred to as "Convertible Securities"),
               or the grant of rights to subscribe for or to purchase, or of
               options for the purchase of (including any grant of such rights
               or options to holders of shares, other than pursuant to a
               dividend on Shares), Shares of Convertible Securities, regardless
               of whether the right to convert or exchange such Convertible
               Securities or such rights or options are immediately exercisable.

No adjustment of the Exercise Price shall be required to be made by the Company
and no notice hereunder must be given if the amount of any required adjustment
is less than 5% of the Exercise Price.  In such case any such adjustment shall
be carried forward and shall be made (and notice thereof shall be given
hereunder) at the time of and together with the next subsequent adjustment
which, together with any adjustment so carried forward, shall amount to not less
than 5% of the Exercise Price.

     (B) For the purposes of paragraph (A), the following provisions (i) through
(vi), inclusive, shall also be applicable:

         (i)   If, at the time Shares are issued and sold upon the conversion or
               exchange of Convertible Securities or upon the exercise of rights
               or options previously granted by the Company, the price per Share
               for which such Shares are issued (determined by dividing (a) the
               total amount, if any, received by the Company as consideration
               for such Convertible Securities or for the granting of such
               rights or options, plus the aggregate amount of additional
               consideration paid to the Company upon the conversion or exchange
               of such Convertible Securities (which, if so provided in such
               Convertible Securities, shall be deemed to be equal to the
               outstanding principal amount of the indebtedness represented by
               such Convertible Securities) or upon the exercise of such rights
               or options, by (b) the total number of Shares issued upon the
               conversion or exchange of such Convertible Securities or upon the
               exercise of such rights or options) shall be less than the
               Exercise Price in effect immediately prior to such issue, sale or
               exercise, then the adjustments provided for by the first
               paragraph of this Annex 1 and paragraph (A) shall be made. In
               making the adjustment of the Exercise Price provided for by
               paragraph (A), the amount described in clause (a) of this
               paragraph (B)(i) shall be considered the consideration received
               by the Company upon the issue or sale of the Shares for purposes
               of clause (i)(b) of paragraph (A).

         (ii)  In case at any time any Shares or Convertible Securities or any
               rights or options to purchase any Shares or Convertible
               Securities shall be issued or sold for cash, the consideration
               received therefor shall be deemed to be the amount received by
               the Company therefor without deduction therefrom of any expenses

Page 2 - Annex 1
<PAGE>

               incurred or any underwriting commissions or concessions paid or
               allowed by the Company in connection therewith. In case any
               Shares or Convertible Securities or any rights or options to
               purchase any Shares or Convertible Securities shall be issued or
               sold, in whole or in part, for consideration other than cash, the
               amount of the consideration other than cash received by the
               Company in exchange for the issue or sale of such Convertible
               Securities shall be deemed to be the fair value of such
               consideration as determined in good faith by the Board of
               Directors of the Company, without deduction therefrom of any
               expenses incurred or any underwriting commissions or concessions
               paid or allowed by the Company in connection therewith; provided
               that if the holder or holders of at least 66-2/3% of the Warrant
               Shares purchasable under this Warrant shall request in writing,
               the value of such consideration shall be determined by an
               independent expert selected by such holders, the costs and
               expenses of which shall be borne by the Company, and, if the
               value of such consideration as so determined is less than the
               value determined by the Board of Directors of the Company, the
               lesser value shall be utilized in calculating the consideration
               per Share received by the Company for purposes of making the
               adjustment provided by paragraph (A). In the event of any merger
               or consolidation of the Company in which the Company is not the
               surviving corporation or in the event of any sale of all or
               substantially all of the assets of the Company for stock or other
               securities of any corporation, the Company shall be deemed to
               have issued a number of Shares for stock or securities of such
               other corporation computed on the basis of the actual exchange
               ratio on which the transaction was predicated and for
               consideration that is equal to the fair market value on the date
               of such transaction of such stock or securities of the other
               corporation, and if any such calculation results in adjustment of
               the Exercise Price, the determination of the number of Shares
               issuable upon exercise of this Warrant immediately prior to such
               merger, consolidation or sale, for purposes of paragraph (A),
               shall be made after giving effect to such adjustment of the
               Exercise Price.

         (iii) The number of Shares outstanding at any given time shall not
               include Shares that have been redeemed by the Company and not
               canceled, if any, and that are thus owned or held by or for the
               account of the Company, and the disposition of any such Shares
               shall be considered an issue or sale of Shares for purposes of
               paragraph (A).

         (iv)  "Market Price" shall mean the lower of (a) the average closing
               sales prices of Shares recorded on the principal national
               securities exchange on which the Shares are listed or in a
               national market system for securities in which the Shares are
               admitted to trading or (b) the average of the closing bid and
               asked

Page 3 - Annex 1
<PAGE>

               prices of Shares reported in the domestic over-the-counter
               market, for the 20 trading days immediately prior to the day as
               of which the Market Price is being determined. If the Shares are
               not listed on any national securities exchange or admitted for
               trading in any national market system or traded in the domestic
               over-the-counter market, the Market Price shall be the higher of
               (y) the book value of the Shares as determined by a firm of
               independent public accountants of recognized standing selected by
               the Board of Directors of the Company as of the last day of any
               month ending within 60 days preceding the date as of which the
               determination is to be made or (z) the fair market value of the
               Shares determined in good faith by the Board of Directors of the
               Company, provided that if the holder or holders of at least 66-
               2/3% of the Warrant Shares purchasable under the Warrant shall
               request in writing, the fair market value of the Shares shall be
               determined by an independent investment banking firm or other
               independent expert selected by such holders and reasonably
               satisfactory to the Company, which determination shall be as of a
               date which is within 15 days of the date as of which the
               determination is to be made.

         (v)   Anything herein to the contrary notwithstanding, in case the
               Company shall issue any Shares in connection with the acquisition
               by the Company of the stock or assets of any other corporation or
               the merger of any other corporation into the Company under
               circumstances where, on the date of the issuance of such Shares,
               the consideration received for such Shares is less than the
               Market Price of the Shares, but on the date the number of Shares
               was determined, the consideration received for such Shares would
               not have been less than the Market Price thereof, such Shares
               shall not be deemed to have been issued for less than the Market
               Price.

         (vi)  Anything in clause (ii) of this paragraph (B) to the contrary
               notwithstanding, in the case of an acquisition where all or part
               of the purchase price is payable in Shares or Convertible
               Securities but is stated as a dollar amount, where the Company
               upon making the acquisition pays only part of a maximum dollar
               purchase price which is payable in Shares or Convertible
               Securities and where the balance of such purchase price is
               deferred or is contingently payable under a formula related to
               earnings over a period of time, (a) the consideration received
               for any Shares or Convertible Securities delivered at the time of
               the acquisition shall be deemed to be such part of the total
               consideration as the portion of the dollar purchase price then
               paid in Shares or Convertible Securities bears to the total
               maximum dollar purchase price payable in Shares or Convertible
               Securities and (b) in connection with each issuance of additional
               Shares or Convertible Securities pursuant to the terms of the
               agreement relating to such acquisition, the consideration
               received shall be deemed to be such part

Page 4 - Annex 1
<PAGE>

               of the total consideration as the portion of the dollar purchase
               price then and theretofore paid in Shares or Convertible Shares
               bears to the total maximum dollar purchase price payable in
               Shares or Convertible Securities multiplied by a fraction, the
               numerator of which shall be the number of Shares (or in the case
               of Convertible Securities other than capital stock of the
               Company, the aggregate principal amount of such Convertible
               Securities) then issued and the denominator of which shall be the
               total number of shares (or in the case of Convertible Securities
               other than capital stock of the Company, the aggregate principal
               amount of such Convertible Securities) then and theretofore
               issued under such acquisition agreement. In the event only a part
               of the purchase price for an acquisition is paid in Shares or
               Convertible Securities in the manner referred to in this clause
               (vi), the term "total consideration" as used in this clause (vi)
               shall mean that part of the aggregate consideration as is fairly
               allocable to the purchase price paid in Shares or Convertible
               Securities in the manner referred to in this clause (vi), as
               determined by the Board of Directors of the Company.

     (C) In the case at any time the Company shall subdivide its outstanding
Shares into a greater number of Shares, then from and after the record date for
such subdivision the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced and the number of Shares
purchasable upon the exercise of this Warrant shall be correspondingly
increased, and, conversely, in case the outstanding Shares shall be combined
into a smaller number of Shares, then from and after the record date for such
combination the Exercise Price in effect immediately prior to such combination
shall be proportionately increased and the number of Shares purchasable upon the
exercise of this Warrant shall be correspondingly decreased.

     (D) Unless the provisions of paragraph (E) apply, if any capital
reorganization or reclassification of the capital stock of the Company, or
consolidation or merger of the Company with another corporation, or sale of all
or substantially all of its assets to another corporation, shall be effected in
such a way that holders of Shares (or any other securities of the Company then
issuable upon the exercise of this Warrant) shall be entitled to receive stock,
securities or assets with respect to or exchange for Shares (or such other
securities) then, as a condition of such reorganization, reclassification,
consolidation, merger or sale, lawful and adequate provision shall be made
whereby the holder hereof shall thereafter have the right to purchase and
receive upon the basis and upon the terms and conditions specified in this
Warrant and in lieu of the Shares (or other securities) of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby, such shares of stock, securities or assets as may be
issued or payable with respect to or in exchange for a number of outstanding
Shares (or other securities) equal to the number of Shares (or other securities)
immediately theretofore so purchasable and receivable had such reorganization,
reclassification, consolidation, merger or sale not taken place, and in any such
case appropriate provision shall be made with respect to the rights and
interests of the holder of this

Page 5 - Annex 1
<PAGE>

Warrant to the end that the provisions hereof (including, without limitation,
provisions for adjustment of the Exercise Price and of the number of Shares (or
other securities) purchasable upon the exercise of this Warrant and for the
registration thereof as provided in Section 6 of this Warrant) shall thereafter
be applicable, as nearly as may be, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise hereof (including
an immediate adjustment, by reason of such consolidation, merger or sale, of the
Exercise Price to the value of the Shares (or other securities) reflected by the
terms of such consolidation, merger or sale if the value so reflected is less
than the Exercise Price in effect immediately prior to such consolidation,
merger or sale). In the event of a consolidation or merger of the Company with
or into another corporation as a result of which a greater or lesser number of
securities of the surviving corporation are issuable to holders of Shares in
respect of the number of Shares outstanding immediately prior to such
consolidation or merger, then the Exercise Price in effect immediately prior to
such consolidation or merger shall be adjusted in the same manner as though
there were a subdivision or combination of the outstanding Shares. The Company
shall not effect any such consolidation, merger or sale, unless prior to or
simultaneously with the consummation thereof the surviving or successor
corporation (if other than the Company) resulting from such consolidation or
merger of the corporation purchasing such assets shall assume, by written
instrument executed and mailed to the registered holder hereof at the last
address of such holder appearing on the books of the Company, the obligation to
deliver to such holder such Shares of stock, securities or assets as, in
accordance with the foregoing provisions, such holder may be entitled to
purchase, and containing the express assumption of such surviving or successor
corporation of the due performance of every provision of this Warrant to be
performed by the Company and of all liabilities and obligations of the Company
hereunder.

     (E) In the event of a change in control of the Company, as defined in this
paragraph (E), then the Board of Directors shall accelerate the exercise date of
the Warrant or make this Warrant fully vested and exercisable and, in its sole
discretion, may take any or all of the following actions: (a) grant a cash bonus
award to any holder of this Warrant in an amount necessary to pay the Exercise
Price of all or any portion of the Warrant then held by such person; (b) pay
cash to any holder of this Warrant in exchange for the cancellation of the
holder's Warrant in an amount equal to the difference between the Exercise Price
of such Warrant and the greater of the tender offer price for the underlying
Shares or the Market Price of the Shares on the date of the cancellation of the
Warrant; and (c) make any other adjustments or amendments to this Warrant.  For
purposes of this paragraph (E), a "change in control" shall be deemed to have
occurred if (a) any "person" or "group" (within the meaning of Sections 13(d)
and 14(d)(2) of the Securities Exchange Act of 1934, as amended ("1934 Act"),
other than a trustee or other fiduciary holding securities under an employee
benefit plan of the Company is or becomes the "beneficial owner" (as defined in
Rule 13d-3 under the 1934 Act), directly or indirectly, of more than 50% of the
then outstanding voting stock of the Company; or (b) at any time during any
period of three consecutive years after the date of this Warrant, individuals
who at the beginning of such period constitute the Board (and any new director
whose election by the Board or whose nomination for election by the Company's
stockholders was approved by a vote of at least two-thirds of the directors then
still in office who either were directors

Page 6 - Annex 1
<PAGE>

at the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority thereof;
or (c) the stockholders of the Company approve a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) at least 50% of
the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation.

     (F) In case at any time the Company shall pay any dividend on or make any
other distribution with respect to Shares (or any other securities of the
Company then issuable upon the exercise of the Warrant) that is payable in
Shares, Convertible Securities, any other securities of the Company or other
stock, securities or assets, other than cash, then thereafter, and in lieu of
any adjustment of the Exercise Price and the number of Shares issuable upon the
exercise of this Warrant, the holder of this Warrant, upon any exercise of the
rights represented hereby, shall be entitled to receive the number of Shares (or
other securities) being purchased upon such exercise and, in addition to and
without further payment, the Shares, Convertible Securities, other securities of
any company or other stock, securities or assets which the holder of this
Warrant would have received by way of such distributions if continuously since
the date of the Warrant (or, if this Warrant shall have been issued pursuant to
Section 7 of this Warrant, the date of the predecessor Warrant to which this
Warrant relates) such holder had been the record holder of the number of Shares
(or other securities), then being purchased and had retained all such Shares,
Convertible Securities, other securities of the Company or other stock,
securities or assets distributable with respect to such Shares (or other
securities) and, furthermore, all cash, stock, securities or assets payable as
dividends or distributions with respect to the foregoing and originating
directly or indirectly therefrom.  The Company shall reserve and retain in
escrow from any such dividend or distribution of Shares, Convertible Securities,
other securities of the Company or other stock, securities or assets, and from
any such dividends or distributions with respect thereto and originating
directly or indirectly therefrom, such Shares, Convertible Securities, other
securities of the Company and other stock, securities, assets and cash as shall
be necessary to fulfill its obligations to the holder hereof pursuant to this
paragraph (F).

     (G) If at any time conditions arise by reason of action taken by the
Company, which in the good faith opinion of the Board of Directors of the
Company, are not adequately covered by the provisions of this Annex 1, and which
might materially adversely affect the rights of the holder of this Warrant, the
Company shall appoint a firm of independent public accountants of recognized
standing (which may be the regular accountants or auditors of the Company),
which shall give their opinion as to the adjustments, if any, in the Exercise
Price and the number of Shares purchasable upon the exercise of this Warrant, or
other change in the rights of the holder hereof, on a basis consistent with the
other provisions of this Annex 1, necessary to preserve without diminution the

Page 7 - Annex 1
<PAGE>

rights of the holder hereof. Upon receipt of such opinion, the Company shall
forthwith make the adjustments described therein.

     (H) (i)  Within ten (10) days of any adjustment of the Exercise Price or
              change in the number of Shares purchasable upon the exercise of
              this Warrant made pursuant to paragraphs (A), (B), (C) , or (F) or
              any change in the rights of the holder of this Warrant by reason
              of the occurrence of events described in paragraphs (D), (E), or
              (F), the Company shall give written notice by certified or
              registered mail to the registered holder of this Warrant at the
              address of such holder as shown on the books of the Company, which
              notice shall describe the event requiring such adjustments (with
              respect to any adjustment made pursuant to paragraphs (C), (D),
              (E) or (F), the Exercise Price resulting from such adjustment, the
              increase or decrease, if any, in the number of Shares purchasable
              upon the exercise of this Warrant, or the other change in the
              rights of such holder, and set forth in reasonable detail the
              method of calculation of such adjustments and the facts upon which
              such calculations are based.  Within two (2) days of receipt from
              the holder of this Warrant upon the surrender hereof for exercise
              pursuant to Section 1 of this Warrant, and within three (3) days
              of receipt from the holder hereof a written request therefor
              (which request shall not be made more than once each calendar
              quarter), the Company shall give written notice by certified or
              registered mail to such holder at his address as shown on the
              books of the Company of the Exercise Price in effect as of the
              date of receipt by the Company of this Warrant for exercise, or
              the date of receipt of such written request, and the number of
              Shares purchasable or the number or amount of other shares of
              stock, securities or assets receivable as of such date, and set
              forth in reasonable detail the method of calculation of such
              numbers; provided that no further adjustments to the Exercise
              Price or the number of Shares purchasable or number or amount of
              shares, securities or assets receivable on exercise of this
              Warrant shall be made after receipt of this Warrant by the Company
              for exercise.

         (ii) Upon each adjustment of the Exercise Price and each change in the
              number of Shares purchasable upon the exercise of this Warrant,
              and change in the rights of the holder of this Warrant by reason
              of the occurrence of other events herein set forth, then and in
              each case, upon written request of the holder of this Warrant
              (which request shall be made not more often than once each
              calendar year), the Company will at its expense promptly obtain an
              opinion of independent public accountants reasonably satisfactory
              to each holder stating the then effective Exercise Price and the
              number of Shares then purchasable, or specifying the other shares
              of stock, securities or assets and the amount thereof then
              receivable, and setting forth in reasonable detail the method of
              calculation of such numbers and the facts upon which such
              calculations are

Page 8 - Annex 1
<PAGE>

              based. The Company will promptly mail a copy of such opinion to
              the registered holder hereof.

     (I) In case at any time:

         (i)    The Company shall pay any dividend payable in capital stock on
                its outstanding Shares or make any distribution (other than
                regular cash dividends) to the holders of Shares;

         (ii)   The Company shall offer for subscription pro rata to the holders
                of Shares any additional capital stock or other rights;

         (iii)  There shall be authorized any capital reorganization or
                reclassification of the capital stock of the Company, or
                consolidation or merger of the Company with, or sale of all or
                substantially all of its assets to, another corporation; or

         (iv)   There shall be authorized or commence a voluntary or involuntary
                dissolution, liquidation or winding up of the Company.

then, in one or more of said cases, the Company shall given written notice by
certified or registered mail to Barber at the address of Barber as shown on the
books of the Company on the date on which (1) the books of the Company shall
close or a record shall be taken for such dividend, distribution, or
subscription rights, or (2) such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up shall take
place or be voted upon by the shareholders of the Company, as the case may be.
Such notice shall also specify the date as of which the holders of record of
Shares shall participate in such dividend, distribution or subscription rights,
or shall be entitled to exchange their Shares for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up, as the case may be.  Such written
notice shall be given at least thirty (30) days prior to the action in question
and no less than thirty (30) days prior to the record date or the date on which
the Company's books are closed in respect thereto.

Page 9 - Annex 1
<PAGE>

EXHIBIT A
---------

                               SUBSCRIPTION FORM

                    To be Executed by the Registered Holder
                  Desiring to Exercise the Within Warrant of
                             TIPPERARY CORPORATION

     The undersigned registered holder hereby exercises the right to purchase
___________________________ Shares covered by the within Warrant according to
the conditions thereof, and herewith makes payment of the Exercise Price of such
Shares, $ _____________________.

Name of Registered Holder:
                          ______________________________________________________

Signature:
          ______________________________________________________________________

Title of Signing Officer
or Agent (if any):
                  ______________________________________________________________

Address of Registered Holder:
                             ___________________________________________________

Tax I.D. No.:
             ___________________________________________________________________

Dated:  _________________________________________, 20_______.<PAGE>
                                                                   EXHIBIT 10.79

This Warrant and the rights represented hereby shall not be transferable at any
time unless (i) a registration statement under the Securities Act of 1933, as
amended, shall be in effect with respect to this Warrant or the Shares issuable
hereunder at such time, or (ii) the transfer is made in compliance with the
provisions of Section 5.

Number:                                                           50,000 Shares

                                    WARRANT
                              TO PURCHASE SHARES
                                      OF
                             TIPPERARY CORPORATION

     This certifies that, for value received, D. Leroy Sample, an individual
residing in Estero, Florida ("Sample"), or his registered assigns, is entitled
to purchase from TIPPERARY CORPORATION, a Texas corporation (the "Company"),
fifty thousand (50,000) Shares, at the price of Three Dollars and no/100 ($3.00)
per Share (as defined in Section 3) at any time, or in part from time to time in
accordance with the following Vesting Schedule ("Vesting Schedule"):

            Date:                          Total Shares Subject to Exercise

From and after November 30, 2001                        16,667
From and after November 30, 2002                        33,334
From and after November 30, 2003                        50,000

This Warrant shall expire, if not exercised prior thereto, two (2) years after
the resignation or removal of Sample as a director of the Company. If Sample
should resign or be removed as a director from the Company, then this Warrant
shall be vested only to the extent vested on such date of resignation or removal
according to the Vesting Schedule. The provisions as to adjustment of the
initial exercise price set forth above and the number of Shares to be issued
upon the occurrence of certain events (the Provisions as to Adjustment) are more
fully set forth in Annex 1 hereto. (Hereinafter, the initial exercise price set
forth above in this paragraph for the purchase of Shares upon the exercise of
this Warrant, as adjusted pursuant to the Provisions as to Adjustment, is
referred to as the "Exercise Price"). This Warrant is subject to the following
provision, terms and conditions:

     1.   Exercise of Warrant.
          -------------------

     (a)  The rights represented by this Warrant may be exercised by the holder
hereof, in whole or in part, (but not as to a fractional Share), by the
surrender of this Warrant at the Company's principal office located in Denver,
Colorado (or such other office or agency of the Company as the Company may
designate by notice in writing to the holder hereof at the address of such
holder appearing on the books of the Company at any time within the period above
named) and delivery of a completed subscription form in the form attached to
this Warrant as Exhibit A, and upon payment to the Company of the Exercise Price
                ---------
for such Shares.
<PAGE>

     (b)  Payment of the Exercise Price shall be made by a combination of any
one or more of the following:

          (i)    By application, to the extent permitted by applicable law, of
                 Shares or other securities of the Company owned by the holder
                 hereof, the value of which for such purpose shall be the fair
                 market value thereof determined in good faith by the Company
                 and the holder hereof at the time of such exercise; provided,
                 however, that in order to apply such Shares or other securities
                 of the Company in the exercise hereof, each of the following
                 conditions must be met:

                 (A)  Such Shares or other securities of the Company shall have
                      been owned, without material encumbrance, contingency or
                      risk of forfeiture relating to the ownership rights, for
                      at least six months and at all times during said six month
                      period by the holder hereof, and within said six month
                      period such Shares or other securities of the Company
                      shall not have been obtained through exercise of any
                      option, warrant or right to obtain such Shares of other
                      securities or through the conversion of any other
                      security; and

                 (B)  Such Shares or other securities shall not be or include:
                      (1) options, warrants or similar rights to acquire Shares
                      or other securities of the Company by the holder hereof;
                      or (2) securities owned by the holder hereof which are
                      convertible in whole or in part into Shares or other
                      securities of the Company.

          (ii)   in cash or by certified check or bank draft in New York
                 Clearing House funds.

     (c)  The Company agrees that any Shares so purchased by the exercise of
this Warrant shall be deemed to be issued to the holder hereof as the record
owner of such Shares as of the close of business on the date on which this
Warrant shall have been surrendered, the completed subscription form delivered,
and payment in full is made and delivered to the Company for such Shares as
aforesaid.

     (d)  Stock certificates evidencing Shares so purchased shall be delivered
to the holder hereof as promptly as practicable, after the rights represented by
this Warrant shall have been so exercised. If this Warrant shall have been
exercised only in part, and unless this Warrant has expired, a new Warrant
representing the number of Shares with respect to which this Warrant shall not
then have been exercised shall also be delivered to the holder hereof within
such time. Notwithstanding the foregoing, however, the Company shall not be
required to deliver any stock certificate evidencing Shares upon exercise of
this Warrant except in accordance with the provisions, and subject to the
limitations, of Section 5. The Company will pay all expenses and charges payable
<PAGE>

in connection with the preparation, execution and delivery of stock certificates
and any new Warrants or promissory notes.

     2.   Certain Covenants of the Company. The Company covenants and agrees as
          --------------------------------
follows:

     (a)  All Shares which may be issued upon the exercise of the rights
represented by this Warrant (all such Shares, whether previously issued or
subject to issuance upon the exercise of this Warrant, are from time to time
referred to herein as "Warrant Shares") will, upon issuance, be duly authorized
and issued, fully paid and nonassessable and free from all taxes, liens and
charges with respect to the issuance thereof.

     (b)  During the period within which the rights represented by this Warrant
may be exercised, and only insofar as the Vesting Schedule herein permits the
exercise of this Warrant, the Company will at all times have authorized and
reserved free of preemptive or other rights for the exclusive purpose of
issuance upon exercise of the purchase rights evidenced by this Warrant, a
sufficient number of Shares to provide for the exercise of rights represented by
this Warrant.

     (c)  The Company will not, by amendment or restatement of the Articles of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, issuance or sale of securities or otherwise, avoid or take any action
which would have the effect of avoiding the performance of any of the terms to
be performed hereunder by the Company, but will at all times in good faith carry
out all of the provisions of this Warrant and take all such action as may be
necessary or appropriate to protect the rights of the holder hereof against
dilution or other impairment and, in particular, will not permit the par value
of any Share to be or become greater than the then effective Exercise Price.

     3.   Definition of Shares. As used herein, the term "Shares" shall mean and
          --------------------
include shares of the Common Stock, par value $.02 per share, of the Company as
are constituted and exist on the date hereof, and shall also include any other
class of the capital stock of the Company hereafter authorized which shall
neither be limited to a fixed sum or percentage of par value in respect to the
rights of the holders thereof to receive dividends and to participate in the
distribution of assets upon the voluntary or involuntary liquidation,
dissolution or winding up of the Company, nor be subject at any time to
redemption by the Company; provided that the Shares receivable upon exercise of
this Warrant shall include only Shares of the type as are constituted and exist
on the date hereof or Shares resulting from any reclassification of the Shares
as provided for in paragraph (C) of the Provisions as to Adjustment.

     4.   No Rights or Liabilities as a Shareholder. This Warrant shall not
          -----------------------------------------
entitle the holder hereof as such to any rights whatsoever, including, without
limitation, voting rights, as a holder of Shares of the Company. No provisions
hereof, in the absence of affirmative action by the holder hereof to purchase
Shares, and no mere enumeration herein of the rights or privileges of such
holder,

Page 3 - Warrant to Purchase Shares
<PAGE>

shall give rise to any liability of such holder as a holder of Shares of the
Company, regardless of who may assert such liability.

     5.   Restrictions on Transfer.
          ------------------------

     (a)  This Warrant shall not be exercisable by a transferee hereof and/or
transferable and the Warrant Shares shall not be transferable except upon the
conditions specified in this Section 5, which conditions are intended, among
other things, to ensure compliance with the provisions of the Securities Act of
1933, as amended, and the rules and regulations of the Securities and Exchange
Commission (the "Commission") thereunder (collectively the "Securities Act"), in
respect of the exercise and/or transfer of this Warrant and/or transfer of such
Warrant Shares.

     (b)  This Warrant and the Warrant Shares shall not be transferable (except
for a transfer of this Warrant or the Warrant Shares in an offering registered
under the Securities Act, including, without limitation, a transfer in a
registered offering effected pursuant to Section 6, and any subsequent transfer)
unless, prior to any transfer, the holder hereof shall have received from its
transferee reasonable assurances that such person is aware that this Warrant and
the Warrant Shares have not been registered under the Securities Act and that
such person is acquiring this Warrant or the Warrant Shares for investment only
and not with the view to the disposition or public offering thereof (unless in
an offering registered under the Securities Act of 1933 or exempt therefrom),
and that such person is aware that the stock certificates evidencing the Warrant
Shares shall bear a legend restricting transfer and disposition thereof in
accordance with the Securities Act unless, in the opinion of counsel to the
Company, such legend may be omitted. In the event of any transfer of this
Warrant (other than a transfer in an offering registered under the Securities
Act, including, without limitation, a transfer in a registered offering effected
pursuant to Section 6, and any subsequent transfer), the holder hereof shall
provide an opinion of counsel, who shall be reasonably satisfactory to the
Company, that an exemption from the registration requirements of the Securities
Act is available.

     (c)  Any permitted subsequent holder of this Warrant shall be subject to
all the terms and conditions herein, and shall acknowledge, in writing, upon
receipt of this Warrant his or her acceptance of the terms and conditions
herein.

     (d)  To facilitate sales by a holder of this Warrant or Warrant Shares in
transactions qualifying under Rule 144 promulgated by the Commission under the
Securities Act, if available, the Company agrees to satisfy the current public
information requirements of said Rule 144, for as long as the Shares remain
registered under the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission thereunder (collectively the "Exchange Act"),
and to provide said holder upon request with such other information as such
holder may require for compliance with the provisions of said Rule 144.

Page 4 - Warrant to Purchase Shares
<PAGE>

     6.   Registration Under Securities Act.
          ---------------------------------

     (a)  If the Company at any time proposes to register any issuance of its
securities under the Securities Act (other than a registration on Form S-8 in
connection with an employee stock purchase or option plan or on Form S-4 in
connection with mergers, acquisitions or exchange offerings), the Company will
at such time give prompt written notice to the holder hereof and to the holders
of all other Warrant Shares issuable from any outstanding Warrants (such holders
are hereinafter referred to as the "Prospective Sellers") of its intention to do
so. Upon the written request of a Prospective Seller, given within 30 days after
receipt of any such notice (which request shall state the intended method of
disposition of the Warrant Shares to be transferred by such Prospective Seller),
the Company shall use its best efforts to cause all Warrant Shares, the holders
of which (or of the Warrants to which the same are related), to the extent
vested in accordance with the Vesting Schedule, shall have so requested
registration of the transfer thereof, to be registered under the Securities Act,
all to the extent requisite to permit the sale or other disposition (in
accordance with the intended method thereof as aforesaid) by the Prospective
Sellers of such Warrant Shares. The rights granted pursuant to this Section 6(a)
shall not be effective with respect to the Prospective Seller in the case of an
underwritten public offering of securities of the Company by the Company unless
each Prospective Seller agrees to the terms and conditions, including
underwriting discounts and allowances, specified by the managing underwriter of
such offering with respect to such Warrant Shares. The Company shall have the
right to reduce the number of Warrant Shares of the Prospective Sellers to be
included in a registration statement pursuant to the exercise of the rights
granted by this Section 6(a) if, and to the extent, that the managing
underwriter of such offering is of the good faith opinion, supported by written
reasons therefor, that the inclusion of such Warrant Shares would materially
adversely affect the marketing of the securities of the Company to be offered;
provided, that any such reduction of the number of Warrant Shares the transfer
of which is to be registered on behalf of the Prospective Sellers shall be made
on the basis of a pro rata reduction of all Warrant Shares of all Prospective
Sellers.

     (b)  If and whenever the Company is required by the provisions of this
Section 6 to use its best efforts to effect the registration of any transfer of
Warrant Shares under the Securities Act, the Company will, as expeditiously as
possible,

          (i)    prepare and file with the Commission a registration statement
                 with respect to such transfer and use its best efforts to cause
                 such registration statement to become and remain effective, but
                 not for any period longer than nine months;

          (ii)   prepare and file with the Commission such amendments and
                 supplements to such registration statement and the prospectus
                 used in connection therewith as may be necessary to keep such
                 registration statement effective, and to comply with the
                 provisions of the Securities Act with respect to the transfer

Page 5 - Warrant to Purchase Shares
<PAGE>

                 of all securities covered by such registration statement,
                 including, without limitation, taking all necessary actions
                 whenever the Prospective Sellers of the Warrant Shares covered
                 by such registration statement shall desire to dispose of the
                 same;

          (iii)  furnish to each Prospective Seller such number of copies of a
                 prospectus, including a preliminary prospectus, in conformity
                 with the requirements of the Securities Act, and such other
                 documents, as such Prospective Seller may reasonably request in
                 order to facilitate the disposition of the Warrant Shares owned
                 by such Prospective Seller and covered by such registration
                 statement;

          (iv)   use its best efforts to register or qualify the securities
                 covered by such registration statement under such other
                 securities or blue sky laws of such jurisdictions as each
                 Prospective Seller shall request, and use its best efforts to
                 do any and all other acts and things which may be reasonably
                 necessary to enable such Prospective Seller to consummate the
                 disposition in such jurisdiction of the Warrant Shares owned by
                 such Prospective Seller and covered by such registration
                 statement; provided that, notwithstanding the foregoing, the
                 Company shall not be required to register in any jurisdiction
                 as a broker or dealer of securities or to grant its consent to
                 service of process in any such jurisdiction solely on account
                 of such intended disposition by such Prospective Seller;

          (v)    furnish to the Prospective Sellers whose intended dispositions
                 are registered a signed copy of an opinion of counsel for the
                 Company, in form and substance acceptable to such Prospective
                 Sellers, to the effect that: (A) a registration statement
                 covering such dispositions of Warrant Shares has been filed
                 with the Commission under the Securities Act and has been made
                 effective by order of the Commission, (B) such registration
                 statement and the prospectus contained therein and any
                 amendments or supplements thereto comply as to form in all
                 material respects with the requirements of the Securities Act,
                 and nothing has come to such counsel's attention which would
                 cause him to believe that the registration statement or such
                 prospectus, amendment or supplement, at the time such
                 registration statement or amendment became effective or such
                 supplement was filed with the Commission, contained any untrue
                 statement of a material fact or omitted to state a material
                 fact required to be stated therein or necessary to make the
                 statements therein (in the case of such prospectus, amendment
                 or supplement, in the light of the circumstances under which
                 they were made) not misleading (provided that such counsel need
                 not render any opinion with respect to the financial statements
                 and other financial, engineering and statistical data

Page 6 - Warrant to Purchase Shares
<PAGE>

                 included therein), and (C) to the best of such counsel's
                 knowledge, no stop order has been issued by the Commission
                 suspending the effectiveness of such registration statement and
                 no proceedings for the issuance of such a stop order are
                 threatened or contemplated;

          (vi)   furnish to the Prospective Sellers whose intended dispositions
                 are required a blue sky survey in the form and of the substance
                 customarily prepared by counsel for the Company and accepted by
                 sellers of securities in similar offerings, discussing and
                 describing the application provisions of the securities or blue
                 sky laws of each state or jurisdiction in which the Company
                 shall be required, pursuant to Section 6(c)(iv), to register or
                 qualify such intended dispositions of such Warrant Shares, or,
                 in the event counsel for the underwriters in such offering
                 shall be preparing a blue sky survey, cause such counsel to
                 furnish such survey to, and to allow reliance thereon by, such
                 Prospective Sellers;

          (vii)  otherwise use its best efforts to comply with all applicable
                 rules and regulations of the Commission under the Securities
                 Act and the Exchange Act, insofar as they relate to such
                 registration and such registration statement; and

          (viii) use its best efforts to list such Warrant Shares on any
                 securities exchange on which any securities of the Company are
                 then listed or to admit such Warrant Shares for trading in any
                 national market system in which any securities of the Company
                 are then admitted for trading, if the listing or admission of
                 such securities is then permitted under the rules of such
                 exchange or system.

     (c)  With respect to the registration by the Company of transfers of
Warrant Shares under the Securities Act pursuant to Section 6(a), the Company
shall pay all expenses incurred by it in complying with this Section 6
(including, without limitation, all registration and filing fees, printing
expenses, blue sky fees and expenses, costs and expenses of audits, and
reasonable fees and disbursements of counsel for the Company and special counsel
designated by Prospective Sellers owning a majority of the Warrant Shares
covered by such registration, but specifically excluding any underwriting
discounts and allowances that are allocable to the Warrant Shares being sold by,
and which shall be paid by, the Prospective Sellers; provided, however, that if
any registration statement filed with the Commission by the Company under
Section 6(a) shall not be declared effective by the Commission, such attempted
registration shall not constitute a registration under this Section 6(c).

     (d)  It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Section 6 that each Prospective Seller, the
transfer of whose Warrant Shares is registered or to be registered under each
such registration, shall furnish to the Company such written

Page 7 - Warrant to Purchase Shares
<PAGE>

information regarding the securities held by such Prospective Seller as the
Company shall reasonably request and as shall be required in connection with the
action to be taken by the Company.

     (e)  (i)    In the event of any registration of any transfer of Warrant
Shares under the Securities Act pursuant to this Section 6, the Company will
indemnify and hold harmless each Prospective Seller of such securities, each of
its officers, directors and partners, and each other person, if any, who
controls such Prospective Seller within the meaning of the Securities Act, and
each underwriter, if any, who participates in the offering of such securities,
against any losses, claims, damages or liabilities (or actions in respect
thereof), joint or several, to which each Prospective Seller, officer, director
or partner, controlling person or underwriter may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained, on
the effective date thereof, in any registration statement under which such
transfer of securities was registered under the Securities Act, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, or any violation by the Company of the
Securities Act, and will reimburse such Prospective Seller and each of its
officers, directors and partners, and each such controlling person or
underwriter, for any legal or any other expenses reasonably incurred by such
Prospective Seller or its officers, directors and partners or controlling
persons or by each such underwriter, in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, preliminary prospectus or prospectus or such
amendment or supplement in reliance upon and in conformity with written
information furnished to the Company through an instrument duly executed by such
Prospective Seller specifically for use in the preparation thereof. In the event
of any registration by the Company or any transfer of securities under the
Securities Act pursuant to this Section 6, each Prospective Seller of Warrant
Shares covered by such registration will indemnify and hold harmless the
Company, each other person, if any, who controls the Company within the meaning
of the Securities Act and each officer and director of the Company and the other
Prospective Sellers to the same extent that the Company agrees to indemnify it,
but only with respect to the written information relating to such Prospective
Seller furnished to the Company by such Prospective Seller aforesaid.

          (ii)   Each indemnified party shall, as promptly as practicable upon
receipt of notice of the commencement of any action against such indemnified
party or its officers, directors or partners, or any controlling person of such
indemnified party, in respect of which indemnity may be sought from an
indemnifying party on account of the indemnity agreement contained in Section
6(e)(i), notify the indemnifying party in writing of the commencement thereof.
The omission of such indemnified party to so notify the indemnifying party of
any such action shall not relieve the

Page 8 - Warrant to Purchase Shares
<PAGE>

indemnifying party from any liability which it may have on account of the
indemnity agreement contained in Section 6(e)(i) to the extent that the failure
to receive such notice within a reasonable period of time shall not have caused
harm, loss or damage to the indemnifying party, provided that, conversely, if
such failure to receive notice shall have caused any harm, loss or damage to the
indemnifying party, such failure shall constitute a defense to any liability
which such indemnifying party may have on account of such agreement to the
extent of the harm, loss or damage so caused. In case any such action shall be
brought against any indemnified party, its officers, directors and partners, or
any such controlling person, and such indemnified party shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate in (and, to the extent that the indemnifying party shall
wish, to direct) the defense thereof at the indemnifying party's own expense, in
which event the defense shall be conducted by recognized counsel chosen by the
indemnifying party and approved by the indemnified party (whose approval shall
not unreasonably be withheld) and the indemnified party may participate in such
defense at its own expense (unless it is advised by counsel that actual or
potential differing interests or defenses exist or may exist, in which case such
expenses shall be paid by the indemnifying party, provided that the indemnifying
party shall not be required to pay the expenses for more than one counsel for
all such indemnified parties).

     7.   Transfer; Ownership. Subject to Section 5, this Warrant and all
          -------------------
rights hereunder are transferable, in whole or in part, at the office or agency
of the Company referred to in Section 1 by the holder hereof in person or by a
duly authorized attorney, upon surrender of this Warrant, with an assignment,
acceptable to the Company, duly completed, at which time a new Warrant shall be
made and delivered by the Company, of the same tenor as this Warrant but
registered in the name of the transferee. The holder of this Warrant, by taking
or holding the same, consents and agrees that this Warrant, when endorsed in
blank, shall be deemed negotiable, and that the holder hereof, when this Warrant
shall have been so endorsed, may be treated by the Company and all other persons
dealing with this Warrant as the absolute owner hereof for any purpose and as
the person entitled to exercise the rights represented by this Warrant and to
transfer this Warrant on the books of the Company, any notice to the contrary
notwithstanding; but until such transfer on such books, the Company may treat
the registered holder hereof as the owner hereof for all purposes. Any transfer
of this Warrant shall be made in compliance with the Securities Act and any
applicable statute securities or blue sky laws.

     8.   Exchange and Replacement. Subject to Section 7, this Warrant is
          ------------------------
exchangeable, upon the surrender hereof by the holder hereof at the office or
agency of the Company referred to in Section 1, for new Warrants of like tenor
and date representing in the aggregate the right to purchase the number of
Shares which may be purchased hereunder, each of such new Warrants to represent
the right to purchase such number of Shares as shall be designated by said
holder hereof at the time of such surrender. Upon receipt by the Company at the
office or agency referred to in Section 1 of evidence reasonably satisfactory to
it of the loss, theft or destruction of this Warrant and of indemnity or
security reasonably satisfactory to it (provided that the written indemnity of
the

Page 9 - Warrant to Purchase Shares
<PAGE>

holder hereof shall be deemed reasonably satisfactory to the Company for such
purposes), the Company will deliver a new Warrant of like tenor and date in
replacement of this Warrant. This Warrant shall be promptly canceled by the
Company upon the surrender hereof in connection with any transfer, exchange or
replacement. The Company will pay all expenses and charges payable in connection
with the preparation, execution and delivery of Warrants pursuant to Section 7
and this Section 8.

     9.   Notices. Any notice or other document required or permitted to be
          -------
given or delivered to the holder hereof shall be delivered at, or sent by
certified or registered mail to, D. Leroy Sample, 20383 Wildcat Run Drive,
Estero, Florida 33928, or to such other address as shall have been furnished to
the Company in writing by the holder hereof. Any notice or other document
required or permitted to be given or delivered to the Company shall be delivered
at, or sent by certified or registered mail to, 633 Seventeenth Street, Suite
1550, Denver, Colorado 80202, or to such other address as shall have been
furnished in writing to the holder hereof by the Company. Any notice so
addressed and mailed by registered or certified mail or otherwise delivered,
shall be deemed to be given when actually received by the addressee.

     10.  GOVERNING LAW. THIS WARRANT SHALL BE GOVERNED BY, AND CONSTRUED
          -------------
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

     11.  Miscellaneous. This Warrant will be binding upon any entity
          -------------
succeeding to the Company by consolidation or acquisition of all or
substantially all of the Company's assets, and upon any successor or assign of
the holder hereto. This Warrant and any provision hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
(or any predecessor in interest thereof) against whom enforcement of the same is
sought. The headings in this Warrant are for purposes of reference only and
shall not affect the meaning or construction of any of the provisions hereon.

     IN WITNESS WHEREOF, Tipperary Corporation has caused this Warrant to be
signed by its duly authorized officers, under its corporate seal, to be dated
November 30, 2000.

                                        TIPPERARY CORPORATION

                                        BY:  /s/ David L. Bradshaw
                                           -----------------------------------
                                         ITS: President

(CORPORATE SEAL)

ATTEST:  /s/ Elaine R. Treece
       ------------------------------
 ITS: Secretary

Page 10 - Warrant to Purchase Shares
<PAGE>

                                                                        Annex 1

                             TIPPERARY CORPORATION

                        PROVISIONS AS TO ADJUSTMENT OF
                      EXERCISE PRICE AND NUMBER OF SHARES
                   ISSUED UPON OCCURRENCE OF CERTAIN EVENTS
                   ----------------------------------------

     The Exercise Price and the number of Shares issuable upon the exercise of
the annexed Warrant to purchase shares of TIPPERARY CORPORATION, a Texas
corporation (herein and in this Warrant referred to as the "Company"), shall be
subject to adjustment from time to time as hereinafter provided; that in no
event shall the Exercise Price be increased to a price greater than Three
Dollars and no/100 ($3.00) per Share, except as provided by paragraph (C). Upon
each adjustment of the Exercise Price, the holder of this Warrant shall
thereafter be entitled to purchase, at the Exercise Price resulting from such
adjustment, the number of Shares obtained by multiplying the number of Shares
purchasable pursuant hereto immediately prior to such adjustment by a fraction,
the numerator of which is the Exercise Price in effect immediately prior to such
adjustment and the denominator of which is the Exercise Price resulting from
such adjustment. In making the adjustments to the Exercise Price and the number
of Shares issuable upon the exercise of this Warrant, the following provisions
shall be applicable:

     (A)  If and whenever the Company shall issue or sell any Shares for
consideration per Share that is less than the Exercise Price in effect
immediately prior to the time of such issue or sale at less than the Market
Price (as hereinafter defined) of such Shares on the date of such issue or sale,
then forthwith upon such issue or sale the Exercise Price in effect immediately
prior thereto shall be adjusted to an amount (calculated to the nearest cent)
determined by dividing (i) an amount equal to the sum of (a) the number of
Shares outstanding immediately prior to such issue or sale multiplied by the
Exercise Price in effect immediately prior to such issue or sale, and (b) the
consideration, if any, received by the Company upon such issue or sale by (ii)
the total number of Shares outstanding immediately after such issue or sale;
provided, however, that no adjustment shall be made hereunder by reason of:

          (i)    the grant of this Warrant or the issuance of Shares upon the
                 exercise of this Warrant or any other outstanding Warrant;

          (ii)   the grant by the Company of options to purchase shares in
                 connection with any purchase or option plan for the benefit of
                 employees of the Company, or any affiliates or subsidiaries
                 thereof; or

          (iii)  the issuance (whether directly or by assumption in a merger or
                 otherwise) or sale (including any issuance or sale to holders
                 of Shares) of any securities convertible into or exchangeable
                 for Shares (such convertible or exchangeable
<PAGE>

                 securities are herein referred to as "Convertible Securities"),
                 or the grant of rights to subscribe for or to purchase, or of
                 options for the purchase of (including any grant of such rights
                 or options to holders of shares, other than pursuant to a
                 dividend on Shares), Shares of Convertible Securities,
                 regardless of whether the right to convert or exchange such
                 Convertible Securities or such rights or options are
                 immediately exercisable.

No adjustment of the Exercise Price shall be required to be made by the Company
and no notice hereunder must be given if the amount of any required adjustment
is less than 5% of the Exercise Price. In such case any such adjustment shall be
carried forward and shall be made (and notice thereof shall be given hereunder)
at the time of and together with the next subsequent adjustment which, together
with any adjustment so carried forward, shall amount to not less than 5% of the
Exercise Price.

     (B)  For the purposes of paragraph (A), the following provisions (i)
through (vi), inclusive, shall also be applicable:

          (i)    If, at the time Shares are issued and sold upon the conversion
                 or exchange of Convertible Securities or upon the exercise of
                 rights or options previously granted by the Company, the price
                 per Share for which such Shares are issued (determined by
                 dividing (a) the total amount, if any, received by the Company
                 as consideration for such Convertible Securities or for the
                 granting of such rights or options, plus the aggregate amount
                 of additional consideration paid to the Company upon the
                 conversion or exchange of such Convertible Securities (which,
                 if so provided in such Convertible Securities, shall be deemed
                 to be equal to the outstanding principal amount of the
                 indebtedness represented by such Convertible Securities) or
                 upon the exercise of such rights or options, by (b) the total
                 number of Shares issued upon the conversion or exchange of such
                 Convertible Securities or upon the exercise of such rights or
                 options) shall be less than the Exercise Price in effect
                 immediately prior to such issue, sale or exercise, then the
                 adjustments provided for by the first paragraph of this Annex 1
                 and paragraph (A) shall be made. In making the adjustment of
                 the Exercise Price provided for by paragraph (A), the amount
                 described in clause (a) of this paragraph (B)(i) shall be
                 considered the consideration received by the Company upon the
                 issue or sale of the Shares for purposes of clause (i)(b) of
                 paragraph (A).

          (ii)   In case at any time any Shares or Convertible Securities or any
                 rights or options to purchase any Shares or Convertible
                 Securities shall be issued or sold for cash, the consideration
                 received therefor shall be deemed to be the amount received by
                 the Company therefor without deduction therefrom of any
                 expenses

Page 2 - Annex 1
<PAGE>

                 incurred or any underwriting commissions or concessions paid or
                 allowed by the Company in connection therewith. In case any
                 Shares or Convertible Securities or any rights or options to
                 purchase any Shares or Convertible Securities shall be issued
                 or sold, in whole or in part, for consideration other than
                 cash, the amount of the consideration other than cash received
                 by the Company in exchange for the issue or sale of such
                 Convertible Securities shall be deemed to be the fair value of
                 such consideration as determined in good faith by the Board of
                 Directors of the Company, without deduction therefrom of any
                 expenses incurred or any underwriting commissions or
                 concessions paid or allowed by the Company in connection
                 therewith; provided that if the holder or holders of at least
                 66-2/3% of the Warrant Shares purchasable under this Warrant
                 shall request in writing, the value of such consideration shall
                 be determined by an independent expert selected by such
                 holders, the costs and expenses of which shall be borne by the
                 Company, and, if the value of such consideration as so
                 determined is less than the value determined by the Board of
                 Directors of the Company, the lesser value shall be utilized in
                 calculating the consideration per Share received by the Company
                 for purposes of making the adjustment provided by paragraph
                 (A). In the event of any merger or consolidation of the Company
                 in which the Company is not the surviving corporation or in the
                 event of any sale of all or substantially all of the assets of
                 the Company for stock or other securities of any corporation,
                 the Company shall be deemed to have issued a number of Shares
                 for stock or securities of such other corporation computed on
                 the basis of the actual exchange ratio on which the transaction
                 was predicated and for consideration that is equal to the fair
                 market value on the date of such transaction of such stock or
                 securities of the other corporation, and if any such
                 calculation results in adjustment of the Exercise Price, the
                 determination of the number of Shares issuable upon exercise of
                 this Warrant immediately prior to such merger, consolidation or
                 sale, for purposes of paragraph (A), shall be made after giving
                 effect to such adjustment of the Exercise Price.

          (iii)  The number of Shares outstanding at any given time shall not
                 include Shares that have been redeemed by the Company and not
                 canceled, if any, and that are thus owned or held by or for the
                 account of the Company, and the disposition of any such Shares
                 shall be considered an issue or sale of Shares for purposes of
                 paragraph (A).

          (iv)   "Market Price" shall mean the lower of (a) the average closing
                 sales prices of Shares recorded on the principal national
                 securities exchange on which the Shares are listed or in a
                 national market system for securities in which the Shares are
                 admitted to trading or (b) the average of the closing bid and
                 asked

Page 3 - Annex 1
<PAGE>

                 prices of Shares reported in the domestic over-the-counter
                 market, for the 20 trading days immediately prior to the day as
                 of which the Market Price is being determined. If the Shares
                 are not listed on any national securities exchange or admitted
                 for trading in any national market system or traded in the
                 domestic over-the-counter market, the Market Price shall be the
                 higher of (y) the book value of the Shares as determined by a
                 firm of independent public accountants of recognized standing
                 selected by the Board of Directors of the Company as of the
                 last day of any month ending within 60 days preceding the date
                 as of which the determination is to be made or (z) the fair
                 market value of the Shares determined in good faith by the
                 Board of Directors of the Company, provided that if the holder
                 or holders of at least 66-2/3% of the Warrant Shares
                 purchasable under the Warrant shall request in writing, the
                 fair market value of the Shares shall be determined by an
                 independent investment banking firm or other independent expert
                 selected by such holders and reasonably satisfactory to the
                 Company, which determination shall be as of a date which is
                 within 15 days of the date as of which the determination is to
                 be made.

          (v)    Anything herein to the contrary notwithstanding, in case the
                 Company shall issue any Shares in connection with the
                 acquisition by the Company of the stock or assets of any other
                 corporation or the merger of any other corporation into the
                 Company under circumstances where, on the date of the issuance
                 of such Shares, the consideration received for such Shares is
                 less than the Market Price of the Shares, but on the date the
                 number of Shares was determined, the consideration received for
                 such Shares would not have been less than the Market Price
                 thereof, such Shares shall not be deemed to have been issued
                 for less than the Market Price.

          (vi)   Anything in clause (ii) of this paragraph (B) to the contrary
                 notwithstanding, in the case of an acquisition where all or
                 part of the purchase price is payable in Shares or Convertible
                 Securities but is stated as a dollar amount, where the Company
                 upon making the acquisition pays only part of a maximum dollar
                 purchase price which is payable in Shares or Convertible
                 Securities and where the balance of such purchase price is
                 deferred or is contingently payable under a formula related to
                 earnings over a period of time, (a) the consideration received
                 for any Shares or Convertible Securities delivered at the time
                 of the acquisition shall be deemed to be such part of the total
                 consideration as the portion of the dollar purchase price then
                 paid in Shares or Convertible Securities bears to the total
                 maximum dollar purchase price payable in Shares or Convertible
                 Securities and (b) in connection with each issuance of
                 additional Shares or Convertible Securities pursuant to the
                 terms of the agreement relating to such acquisition, the
                 consideration received shall be deemed to be such part

Page 4 - Annex 1
<PAGE>

                 of the total consideration as the portion of the dollar
                 purchase price then and theretofore paid in Shares or
                 Convertible Shares bears to the total maximum dollar purchase
                 price payable in Shares or Convertible Securities multiplied by
                 a fraction, the numerator of which shall be the number of
                 Shares (or in the case of Convertible Securities other than
                 capital stock of the Company, the aggregate principal amount of
                 such Convertible Securities) then issued and the denominator of
                 which shall be the total number of shares (or in the case of
                 Convertible Securities other than capital stock of the Company,
                 the aggregate principal amount of such Convertible Securities)
                 then and theretofore issued under such acquisition agreement.
                 In the event only a part of the purchase price for an
                 acquisition is paid in Shares or Convertible Securities in the
                 manner referred to in this clause (vi), the term "total
                 consideration" as used in this clause (vi) shall mean that part
                 of the aggregate consideration as is fairly allocable to the
                 purchase price paid in Shares or Convertible Securities in the
                 manner referred to in this clause (vi), as determined by the
                 Board of Directors of the Company.

     (C)  In the case at any time the Company shall subdivide its outstanding
Shares into a greater number of Shares, then from and after the record date for
such subdivision the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced and the number of Shares
purchasable upon the exercise of this Warrant shall be correspondingly
increased, and, conversely, in case the outstanding Shares shall be combined
into a smaller number of Shares, then from and after the record date for such
combination the Exercise Price in effect immediately prior to such combination
shall be proportionately increased and the number of Shares purchasable upon the
exercise of this Warrant shall be correspondingly decreased.

     (D)  Unless the provisions of paragraph (E) apply, if any capital
reorganization or reclassification of the capital stock of the Company, or
consolidation or merger of the Company with another corporation, or sale of all
or substantially all of its assets to another corporation, shall be effected in
such a way that holders of Shares (or any other securities of the Company then
issuable upon the exercise of this Warrant) shall be entitled to receive stock,
securities or assets with respect to or exchange for Shares (or such other
securities) then, as a condition of such reorganization, reclassification,
consolidation, merger or sale, lawful and adequate provision shall be made
whereby the holder hereof shall thereafter have the right to purchase and
receive upon the basis and upon the terms and conditions specified in this
Warrant and in lieu of the Shares (or other securities) of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby, such shares of stock, securities or assets as may be
issued or payable with respect to or in exchange for a number of outstanding
Shares (or other securities) equal to the number of Shares (or other securities)
immediately theretofore so purchasable and receivable had such reorganization,
reclassification, consolidation, merger or sale not taken place, and in any such
case appropriate provision shall be made with respect to the rights and
interests of the holder of this

Page 5 - Annex 1
<PAGE>

Warrant to the end that the provisions hereof (including, without limitation,
provisions for adjustment of the Exercise Price and of the number of Shares (or
other securities) purchasable upon the exercise of this Warrant and for the
registration thereof as provided in Section 6 of this Warrant) shall thereafter
be applicable, as nearly as may be, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise hereof (including
an immediate adjustment, by reason of such consolidation, merger or sale, of the
Exercise Price to the value of the Shares (or other securities) reflected by the
terms of such consolidation, merger or sale if the value so reflected is less
than the Exercise Price in effect immediately prior to such consolidation,
merger or sale). In the event of a consolidation or merger of the Company with
or into another corporation as a result of which a greater or lesser number of
securities of the surviving corporation are issuable to holders of Shares in
respect of the number of Shares outstanding immediately prior to such
consolidation or merger, then the Exercise Price in effect immediately prior to
such consolidation or merger shall be adjusted in the same manner as though
there were a subdivision or combination of the outstanding Shares. The Company
shall not effect any such consolidation, merger or sale, unless prior to or
simultaneously with the consummation thereof the surviving or successor
corporation (if other than the Company) resulting from such consolidation or
merger of the corporation purchasing such assets shall assume, by written
instrument executed and mailed to the registered holder hereof at the last
address of such holder appearing on the books of the Company, the obligation to
deliver to such holder such Shares of stock, securities or assets as, in
accordance with the foregoing provisions, such holder may be entitled to
purchase, and containing the express assumption of such surviving or successor
corporation of the due performance of every provision of this Warrant to be
performed by the Company and of all liabilities and obligations of the Company
hereunder.

     (E)  In the event of a change in control of the Company, as defined in this
paragraph (E), then the Board of Directors shall accelerate the exercise date of
the Warrant or make this Warrant fully vested and exercisable and, in its sole
discretion, may take any or all of the following actions: (a) grant a cash bonus
award to any holder of this Warrant in an amount necessary to pay the Exercise
Price of all or any portion of the Warrant then held by such person; (b) pay
cash to any holder of this Warrant in exchange for the cancellation of the
holder's Warrant in an amount equal to the difference between the Exercise Price
of such Warrant and the greater of the tender offer price for the underlying
Shares or the Market Price of the Shares on the date of the cancellation of the
Warrant; and (c) make any other adjustments or amendments to this Warrant. For
purposes of this paragraph (E), a "change in control" shall be deemed to have
occurred if (a) any "person" or "group" (within the meaning of Sections 13(d)
and 14(d)(2) of the Securities Exchange Act of 1934, as amended ("1934 Act"),
other than a trustee or other fiduciary holding securities under an employee
benefit plan of the Company is or becomes the "beneficial owner" (as defined in
Rule 13d-3 under the 1934 Act), directly or indirectly, of more than 50% of the
then outstanding voting stock of the Company; or (b) at any time during any
period of three consecutive years after the date of this Warrant, individuals
who at the beginning of such period constitute the Board (and any new director
whose election by the Board or whose nomination for election by the Company's
stockholders was approved by a vote of at least two-thirds of the directors then
still in office who either were directors

Page 6 - Annex 1
<PAGE>

at the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority thereof;
or (c) the stockholders of the Company approve a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) at least 50% of
the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation.

     (F)  In case at any time the Company shall pay any dividend on or make any
other distribution with respect to Shares (or any other securities of the
Company then issuable upon the exercise of the Warrant) that is payable in
Shares, Convertible Securities, any other securities of the Company or other
stock, securities or assets, other than cash, then thereafter, and in lieu of
any adjustment of the Exercise Price and the number of Shares issuable upon the
exercise of this Warrant, the holder of this Warrant, upon any exercise of the
rights represented hereby, shall be entitled to receive the number of Shares (or
other securities) being purchased upon such exercise and, in addition to and
without further payment, the Shares, Convertible Securities, other securities of
any company or other stock, securities or assets which the holder of this
Warrant would have received by way of such distributions if continuously since
the date of the Warrant (or, if this Warrant shall have been issued pursuant to
Section 7 of this Warrant, the date of the predecessor Warrant to which this
Warrant relates) such holder had been the record holder of the number of Shares
(or other securities), then being purchased and had retained all such Shares,
Convertible Securities, other securities of the Company or other stock,
securities or assets distributable with respect to such Shares (or other
securities) and, furthermore, all cash, stock, securities or assets payable as
dividends or distributions with respect to the foregoing and originating
directly or indirectly therefrom. The Company shall reserve and retain in escrow
from any such dividend or distribution of Shares, Convertible Securities, other
securities of the Company or other stock, securities or assets, and from any
such dividends or distributions with respect thereto and originating directly or
indirectly therefrom, such Shares, Convertible Securities, other securities of
the Company and other stock, securities, assets and cash as shall be necessary
to fulfill its obligations to the holder hereof pursuant to this paragraph (F).

     (G)  If at any time conditions arise by reason of action taken by the
Company, which in the good faith opinion of the Board of Directors of the
Company, are not adequately covered by the provisions of this Annex 1, and which
might materially adversely affect the rights of the holder of this Warrant, the
Company shall appoint a firm of independent public accountants of recognized
standing (which may be the regular accountants or auditors of the Company),
which shall give their opinion as to the adjustments, if any, in the Exercise
Price and the number of Shares purchasable upon the exercise of this Warrant, or
other change in the rights of the holder hereof, on a basis consistent with the
other provisions of this Annex 1, necessary to preserve without diminution the

Page 7 - Annex 1
<PAGE>

rights of the holder hereof. Upon receipt of such opinion, the Company shall
forthwith make the adjustments described therein.

     (H)  (i)    Within ten (10) days of any adjustment of the Exercise Price or
                 change in the number of Shares purchasable upon the exercise of
                 this Warrant made pursuant to paragraphs (A), (B), (C) , or (F)
                 or any change in the rights of the holder of this Warrant by
                 reason of the occurrence of events described in paragraphs (D),
                 (E), or (F), the Company shall give written notice by certified
                 or registered mail to the registered holder of this Warrant at
                 the address of such holder as shown on the books of the
                 Company, which notice shall describe the event requiring such
                 adjustments (with respect to any adjustment made pursuant to
                 paragraphs (C), (D), (E) or (F), the Exercise Price resulting
                 from such adjustment, the increase or decrease, if any, in the
                 number of Shares purchasable upon the exercise of this Warrant,
                 or the other change in the rights of such holder, and set forth
                 in reasonable detail the method of calculation of such
                 adjustments and the facts upon which such calculations are
                 based. Within two (2) days of receipt from the holder of this
                 Warrant upon the surrender hereof for exercise pursuant to
                 Section 1 of this Warrant, and within three (3) days of receipt
                 from the holder hereof a written request therefor (which
                 request shall not be made more than once each calendar
                 quarter), the Company shall give written notice by certified or
                 registered mail to such holder at his address as shown on the
                 books of the Company of the Exercise Price in effect as of the
                 date of receipt by the Company of this Warrant for exercise, or
                 the date of receipt of such written request, and the number of
                 Shares purchasable or the number or amount of other shares of
                 stock, securities or assets receivable as of such date, and set
                 forth in reasonable detail the method of calculation of such
                 numbers; provided that no further adjustments to the Exercise
                 Price or the number of Shares purchasable or number or amount
                 of shares, securities or assets receivable on exercise of this
                 Warrant shall be made after receipt of this Warrant by the
                 Company for exercise.

          (ii)   Upon each adjustment of the Exercise Price and each change in
                 the number of Shares purchasable upon the exercise of this
                 Warrant, and change in the rights of the holder of this Warrant
                 by reason of the occurrence of other events herein set forth,
                 then and in each case, upon written request of the holder of
                 this Warrant (which request shall be made not more often than
                 once each calendar year), the Company will at its expense
                 promptly obtain an opinion of independent public accountants
                 reasonably satisfactory to each holder stating the then
                 effective Exercise Price and the number of Shares then
                 purchasable, or specifying the other shares of stock,
                 securities or assets and the amount thereof then receivable,
                 and setting forth in reasonable detail the method of
                 calculation of such numbers and the facts upon which such
                 calculations are
Page 8 - Annex 1
<PAGE>

                 based. The Company will promptly mail a copy of such opinion to
                 the registered holder hereof.

     (I)  In case at any time:

          (i)    The Company shall pay any dividend payable in capital stock on
                 its outstanding Shares or make any distribution (other than
                 regular cash dividends) to the holders of Shares;

          (ii)   The Company shall offer for subscription pro rata to the
                 holders of Shares any additional capital stock or other rights;

          (iii)  There shall be authorized any capital reorganization or
                 reclassification of the capital stock of the Company, or
                 consolidation or merger of the Company with, or sale of all or
                 substantially all of its assets to, another corporation; or

          (iv)   There shall be authorized or commence a voluntary or
                 involuntary dissolution, liquidation or winding up of the
                 Company.

then, in one or more of said cases, the Company shall given written notice by
certified or registered mail to Maxwell at the address of Maxwell as shown on
the books of the Company on the date on which (1) the books of the Company shall
close or a record shall be taken for such dividend, distribution, or
subscription rights, or (2) such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up shall take
place or be voted upon by the shareholders of the Company, as the case may be.
Such notice shall also specify the date as of which the holders of record of
Shares shall participate in such dividend, distribution or subscription rights,
or shall be entitled to exchange their Shares for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up, as the case may be. Such written
notice shall be given at least thirty (30) days prior to the action in question
and no less than thirty (30) days prior to the record date or the date on which
the Company's books are closed in respect thereto.

Page 9 - Annex 1
<PAGE>

EXHIBIT A
---------

                               SUBSCRIPTION FORM

                    To be Executed by the Registered Holder
                  Desiring to Exercise the Within Warrant of
                             TIPPERARY CORPORATION

     The undersigned registered holder hereby exercises the right to purchase
____________ Shares covered by the within Warrant according to the conditions
thereof, and herewith makes payment of the Exercise Price of such Shares,
$ ________.

Name of Registered Holder: ____________________________________________________

Signature: ____________________________________________________________________

Title of Signing Officer
or Agent (if any): ____________________________________________________________

Address of Registered Holder: _________________________________________________

Tax I.D. No.: _________________________________________________________________

Dated: __________________________, 20_______.

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