Document:

Exhibit 4.23

 

Dated:    October 31, 2007

Original Issue Date:  February 10, 2006

 

NEITHER THIS DEBENTURE NOR THE SECURITIES
INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

	
  No. CCP-

  	
   

  	
  $[                     ]

  

 

WENTWORTH ENERGY, INC.

 

Amended and Restated Secured Convertible
Debenture

 

Due: January 11, 2009

 

This Amended
and Restated Secured Convertible Debenture (this “Debenture”) is issued
by WENTWORTH ENERGY, INC., an
Oklahoma corporation (the “Obligor”), to YA GLOBAL INVESTMENTS, L.P., a Cayman Islands exempt limited
partnership (the “Holder”), pursuant to that certain Securities Purchase
Agreement, dated as of January 12, 2006, by and between the Obligor and the
Holder, as amended by that certain Amendment and Exchange Agreement, dated as
of October 31, 2007 (“A&E Agreement”), by and between the Obligor
and the Holder (as the same may be further amended, modified or supplemented
from time to time, the “Securities Purchase Agreement”).

 

The Obligor
and the Holder hereby agree that this Debenture is issued in exchange for, and does
hereby amend and restate, and completely replace, that certain Debenture, dated
as of February 10, 2006, by and between the Obligor and the Holder, which shall
have no further force or effect.

 

FOR VALUE RECEIVED, the
Obligor hereby promises to pay to the Holder or its successors and assigns the
principal sum of [                                ]
together with accrued but unpaid interest on or before January 11, 2009 (the “Maturity
Date”) in accordance with the following terms:

 

Interest. Interest
shall accrue on the outstanding principal balance hereof at an annual rate
equal to ten percent (10%) commencing as of the date hereof. Interest shall be
calculated on 

 

 

the basis of a 360-day year and the actual number of days elapsed, to
the extent permitted by applicable law. Interest hereunder will be paid to the
Holder or its assignee in whose name this Debenture is registered on the
records of the Obligor regarding registration and transfers of Debentures (the “Debenture
Register”).

 

Right of Redemption.
The Obligor at its option shall have the right, with five (5) Trading Days
advance written notice (the “Redemption Notice” and the date of the
Redemption Notice, the “Redemption Notice Date”), to redeem a portion or
all amounts outstanding under this Debenture prior to the Maturity Date. The
Obligor shall pay an amount equal to the principal amount being redeemed plus accrued
interest, plus a redemption premium (“Redemption Premium”) equal to the
product of (a) the positive difference, if any, between (x) the lowest Volume
Weighted Average Price of the Common Stock during the five (5) Trading Days
immediately preceding the Redemption Notice Date as quoted by Bloomberg, LP and
(y) the Conversion Price (as defined in Section
3(c)(i)) on the Redemption Notice Date and (b) the quotient obtained
by dividing (x) the outstanding principal amount plus accrued interest of this
Debenture to be redeemed by (y) the Conversion Price on the Redemption Notice
Date (collectively referred to as the “Redemption Amount”). The Obligor
shall deliver to the Holder the Redemption Amount on the fifth (5th)
Trading Day following the Redemption Notice Date.

 

Notwithstanding
the foregoing in the event that the Obligor has elected to redeem a portion of
the outstanding principal amount and accrued interest under this Debenture the
Holder shall be permitted to convert all or any portion of this Debenture after
receipt of a Redemption Notice and prior to receiving the corresponding
Redemption Amount.

 

Security Agreements.
This Debenture is secured by that certain Security Agreement, dated as of
January 12, 2006, by and between the Obligor and the Holder, as amended by the
A&E Agreement (as further amended, modified or supplemented from time to
time, the “Security Agreement”).

 

This Debenture
is subject to the following additional provisions:

 

Section 1.              This Debenture is exchangeable for
an equal aggregate principal amount of Debentures of different authorized
denominations, as requested by the Holder surrendering the same. No service
charge will be made for such registration of transfer or exchange.

 

Section 2.              Events of Default.

 

(a)           An “Event of Default”,
wherever used herein, means any one of the following events (whatever the
reason and whether it shall be voluntary or involuntary or effected by
operation of law or pursuant to any judgment, decree or order of any court, or
any order, rule or regulation of any administrative or governmental body):

 

(i)            Any default in the payment of the
principal of, interest on or other charges in respect of this Debenture, as and
when the same shall become due and payable (whether on a Conversion Date or the
Maturity Date or by acceleration or otherwise);

 

2

 

(ii)           The Obligor breaches any
representation, warranty, covenant or other term or condition of any
Transaction Document (as defined in Section
5), except, in the case of a breach of a covenant or other term or
condition of any Transaction Document which is curable, only if such breach
continues for a period of at least ten (10) consecutive Business Days;

 

(iii)          The Obligor or any of its
Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any
similar Federal, foreign or state law for the relief of debtors (collectively, “Bankruptcy
Law”), (A) commences a voluntary case, (B) consents to the entry of an
order for relief against it in an involuntary case, (C) consents to the
appointment of a receiver, trustee, assignee, liquidator or similar official (a
“Custodian”), (D) makes a general assignment for the benefit of its
creditors or (E) admits in writing that it is generally unable to pay its debts
as they become due;

 

(iv)          a court of competent jurisdiction
enters an order or decree under any Bankruptcy Law that (A) is for relief
against the Company or any of its Subsidiaries in an involuntary case, (B)
appoints a Custodian of the Company or any of its Subsidiaries for all or
substantially all of its property or (C) orders the liquidation of the Company
or any of its Subsidiaries and, in each case, such order or decree is not
dismissed or stayed within thirty (30) days of such entry;

 

(v)           The Obligor or any Subsidiary of the
Obligor shall default in any of its obligations under any other debenture or
any mortgage, credit agreement or other facility, indenture agreement,
factoring agreement or other instrument under which there may be issued, or by
which there may be secured or evidenced any indebtedness for borrowed money or
money due under any long term leasing or factoring arrangement of the Obligor
or any Subsidiary of the Obligor in an amount exceeding $500,000 (other than
the Senior Secured Financing Documents), whether such indebtedness now exists
or shall hereafter be created and such default shall result in such
indebtedness becoming or being declared due and payable prior to the date on
which it would otherwise become due and payable;

 

(vi)          The Common Stock shall cease to be
quoted for trading or listed for trading on either the Nasdaq OTC Bulletin
Board (“OTC”), Nasdaq Capital Market, New York Stock Exchange, American
Stock Exchange or the NASDAQ Global Market (each, a “Subsequent Market”)
and shall not again be quoted or listed for trading on the OTC or a Subsequent
Market within five (5) Trading Days of such delisting;

 

(vii)         The Obligor or any Subsidiary of the
Obligor shall be a party to any Change of Control Transaction (as defined in Section 5);

 

(viii)        The Obligor shall fail for any reason to
deliver Common Stock certificates to a Holder prior to the fifth (5th)
Trading Day after a Conversion Date or the Obligor shall provide notice to the
Holder, including by way of public announcement, at any time, of its intention
not to comply with requests for conversions of this Debenture in accordance
with the terms hereof;

 

3

 

(ix)           An “Event of Default” shall have
occurred and be continuing under and as defined in the Senior Secured Convertible
Notes; and

 

(x)            The Obligor shall fail for any
reason to deliver the payment in cash pursuant to a Buy-In (as defined herein)
within three (3) days after notice is claimed delivered hereunder.

 

(b)           During the time that any portion of
this Debenture is outstanding, if any Event of Default has occurred, the full
principal amount of this Debenture, together with interest and other amounts
owing in respect thereof, to the date of acceleration shall become at the
Holder’s election, immediately due and payable in cash, provided however, the Holder may request
(but shall have no obligation to request) payment of such amounts in Common
Stock of the Obligor. In addition to any other remedies, the Holder shall have
the right (but not the obligation) to convert this Debenture at any time after
an Event of Default, including after the Maturity Date, at the Conversion Price
then in-effect. The Holder need not provide and the Obligor hereby waives any
presentment, demand, protest or other notice of any kind, and the Holder may
immediately and without expiration of any grace period enforce any and all of
its rights and remedies hereunder and all other remedies available to it under
applicable law. Such declaration may be rescinded and annulled by the Holder at
any time prior to payment hereunder. No such rescission or annulment shall
affect any subsequent Event of Default or impair any right consequent thereon.
Upon an Event of Default, notwithstanding any other provision of this Debenture
or any Transaction Document, the Holder shall have no obligation to comply with
or adhere to, any limitations, if any, on the conversion of this Debenture or
the sale of the Underlying Shares.

 

Section 3.              Conversion.

 

(a)           Conversion at Option of Holder.

 

(i)            This Debenture shall be convertible
into shares of Common Stock at the option of the Holder, in whole or in part,
at any time and from time to time, after the Original Issue Date (as defined in
Section 5) (subject to the
limitations on conversion set forth in Section
3(b) hereof). The number of shares of Common Stock issuable upon a
conversion hereunder equals the quotient obtained by dividing (x) the
outstanding amount of this Debenture to be converted by (y) the Conversion
Price (as defined in Section 3(c)(i)).
The Obligor shall deliver Common Stock certificates to the Holder prior to the fifth
(5th) Trading Day after a Conversion Date.

 

(ii)           Notwithstanding anything to the
contrary contained herein, if on any Conversion Date: (1) the number of shares
of Common Stock at the time authorized, unissued and unreserved for all
purposes, or held as treasury stock, is insufficient to pay principal and
interest hereunder in shares of Common Stock; (2) the Common Stock is not
listed or quoted for trading on the OTC or on a Subsequent Market; (3) the
Obligor has failed to timely satisfy its conversion; or (4) the issuance of
such shares of Common Stock would result in a violation of Section 3(b), then, at the option of the
Holder, the Obligor, in lieu of delivering shares of 

 

4

 

Common Stock pursuant to Section
3(a)(i), shall deliver, within three (3) Trading Days of each
applicable Conversion Date, an amount in cash equal to the product of the
outstanding principal amount to be converted plus any interest due thereon
divided by the Conversion Price, chosen by the Holder, and multiplied by the
highest closing price of the Common Stock from date of the Conversion Notice
till the date that such cash payment is made.

 

Further, if
the Obligor shall not have delivered any cash due in respect of conversion of
this Debenture or as payment of interest thereon by the fifth (5th)
Trading Day after the Conversion Date, the Holder may, by notice to the
Obligor, require the Obligor to issue shares of Common Stock pursuant to Section 3(c), except that for such purpose
the Conversion Price applicable thereto shall be the lesser of the Conversion
Price on the Conversion Date and the Conversion Price on the date of such
Holder demand. Any such shares will be subject to the provisions of this
Section.

 

(iii)          The Holder shall effect conversions by
delivering to the Obligor a completed notice in the form attached hereto as
Exhibit A (a “Conversion Notice”). The date on which a Conversion Notice
is delivered is the “Conversion Date.” Unless the Holder is converting
the entire principal amount outstanding under this Debenture, the Holder is not
required to physically surrender this Debenture to the Obligor in order to
effect conversions. Conversions hereunder shall have the effect of lowering the
outstanding principal amount of this Debenture plus all accrued and unpaid
interest thereon in an amount equal to the applicable conversion. The Holder
and the Obligor shall maintain records showing the principal amount converted
and the date of such conversions. In the event of any dispute or discrepancy,
the records of the Holder shall be controlling and determinative in the absence
of manifest error.

 

(b)           Certain Conversion Restrictions.

 

(i)            A Holder may not convert this
Debenture or receive shares of Common Stock as payment of interest hereunder to
the extent such conversion or receipt of such interest payment would result in
the Holder, together with any affiliate thereof, beneficially owning (as
determined in accordance with Section 13(d) of the Exchange Act and the rules
promulgated thereunder) in excess of 4.9% of the then issued and outstanding
shares of Common Stock, including shares issuable upon conversion of, and
payment of interest on, this Debenture held by such Holder after application of
this Section. Since the Holder will not be obligated to report to the Obligor
the number of shares of Common Stock it may hold at the time of a conversion
hereunder, unless the conversion at issue would result in the issuance of
shares of Common Stock in excess of 4.9% of the then outstanding shares of
Common Stock without regard to any other shares which may be beneficially owned
by the Holder or an affiliate thereof, the Holder shall have the authority and
obligation to determine whether the restriction contained in this Section will
limit any particular conversion hereunder and to the extent that the Holder
determines that the limitation contained in this Section applies, the
determination of which portion of the principal amount of this Debenture is
convertible shall be the responsibility and obligation of the Holder. If the
Holder has delivered a Conversion Notice for a principal amount of this
Debenture that, without regard to any other shares that the Holder or its
affiliates may beneficially own, would result in the issuance in excess of the
permitted amount hereunder, the 

 

5

 

Obligor shall notify the Holder of this fact and shall honor the
conversion for the maximum principal amount permitted to be converted on such
Conversion Date in accordance with the periods described in Section 3(a)(i) and, at the option of the
Holder, either retain any principal amount tendered for conversion in excess of
the permitted amount hereunder for future conversions or return such excess
principal amount to the Holder.

 

(ii)           The Holder (a) shall not make any
conversions of this Debenture at the Market Conversion Price during the first
six (6) months following the date hereof, and (b) shall not, in any of the six
separate thirty (30) day periods beginning on the six month anniversary of the
date hereof and ending on the twelfth (12th) month anniversary of
the date hereof, convert this Debenture at the Market Conversion Price in an
amount in excess of the greater of (y) $150,000 or (z) ten percent (10%) of the
total dollar volume of the Common Stock traded on the OTC or any Subsequent
Market according to Bloomberg, LP for the thirty (30) day period immediately
prior to the applicable period. Notwithstanding the forgoing, these conversion
restrictions shall not apply upon the occurrence of an Event of Default or if
waived in writing by the Company. Nothing contained in this Section 3(b)(ii) hereof shall limit the
Holder’s right to make conversions at the Fixed Conversion Price. The
limitation set forth in this Section 3(b)(ii)(b) shall apply in total combined
with any conversions at the Market Conversion Price on any other debentures
issued pursuant to the Securities Purchase Agreement.

 

(c)           Conversion Price and Adjustments
to Conversion Price.

 

(i)            The conversion price (the “Conversion
Price”) in effect on any Conversion Date shall be equal to the lesser of (a)
$0.65 (the “Fixed Conversion Price”) or (ii) eighty five percent (85%)
of the lowest Volume Weighted Average Price of the Common Stock during the
fifteen (15) Trading Days immediately preceding the Conversion Date as quoted
by Bloomberg, LP (the “Market Conversion Price”). The Conversion Price
may be adjusted pursuant to the other terms of this Debenture. For the six (6)
month period following the date hereof, the Holder may only convert this
Debenture by using the Fixed Conversion Price.

 

(ii)           If the Obligor, at any time while
this Debenture is outstanding, shall (a) pay a stock dividend or otherwise
make a distribution or distributions on shares of its Common Stock or any other
equity or equity equivalent securities payable in shares of Common Stock, (b)
subdivide outstanding shares of Common Stock into a larger number of shares,
(c) combine (including by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (d) issue by reclassification
of shares of the Common Stock any shares of capital stock of the Obligor, then
the Fixed Conversion Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding treasury
shares, if any) outstanding before such event and of which the denominator
shall be the number of shares of Common Stock outstanding after such event. Any
adjustment made pursuant to this Section shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or re-classification.

 

(iii)          If the Obligor, at any time while this
Debenture is outstanding, shall issue 

 

6

 

rights, options or warrants to all holders of Common Stock (and not to
the Holder) entitling them to subscribe for or purchase shares of Common Stock
at a price per share less than the Fixed Conversion Price, then the Fixed
Conversion Price shall be multiplied by a fraction, of which the denominator
shall be the number of shares of the Common Stock (excluding treasury shares,
if any) outstanding on the date of issuance of such rights or warrants (plus
the number of additional shares of Common Stock offered for subscription or
purchase), and of which the numerator shall be the number of shares of the
Common Stock (excluding treasury shares, if any) outstanding on the date of
issuance of such rights or warrants, plus the number of shares which the
aggregate offering price of the total number of shares so offered would
purchase at the Fixed Conversion Price. Such adjustment shall be made whenever
such rights or warrants are issued, and shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such rights, options or warrants. However, upon the expiration of any such
right, option or warrant to purchase shares of the Common Stock the issuance of
which resulted in an adjustment in the Fixed Conversion Price pursuant to this
Section, if any such right, option or warrant shall expire and shall not have
been exercised, the Fixed Conversion Price shall immediately upon such
expiration be recomputed and effective immediately upon such expiration be
increased to the price which it would have been (but reflecting any other adjustments
in the Fixed Conversion Price made pursuant to the provisions of this Section
after the issuance of such rights or warrants) had the adjustment of the Fixed
Conversion Price made upon the issuance of such rights, options or warrants
been made on the basis of offering for subscription or purchase only that number
of shares of the Common Stock actually purchased upon the exercise of such
rights, options or warrants actually exercised.

 

(iv)          If the Obligor or any Subsidiary
thereof, as applicable, at any time while this Debenture is outstanding, shall
issue shares of Common Stock or rights, warrants, options or other securities
or debt that are convertible into or exchangeable for shares of Common Stock (“Common
Stock Equivalents”) entitling any Person to acquire shares of Common Stock,
at a price per share less than the Fixed Conversion Price (if the holder of the
Common Stock or Common Stock Equivalent so issued shall at any time, whether by
operation of purchase price adjustments, reset provisions, floating conversion,
exercise or exchange prices or otherwise, or due to warrants, options or rights
per share which is issued in connection with such issuance, be entitled to
receive shares of Common Stock at a price per share which is less than the
Fixed Conversion Price, such issuance shall be deemed to have occurred for less
than the Fixed Conversion Price), then, at the sole option of the Holder, the
Fixed Conversion Price shall be adjusted to mirror the conversion, exchange or
purchase price for such Common Stock or Common Stock Equivalents (including any
reset provisions thereof) at issue. Such adjustment shall be made whenever such
Common Stock or Common Stock Equivalents are issued. The Obligor shall notify
the Holder in writing, no later than one (1) Business Day following the
issuance of any Common Stock or Common Stock Equivalent subject to this
Section, indicating therein the applicable issuance price, or of applicable
reset price, exchange price, conversion price and other pricing terms.

 

(v)           If the Obligor, at any time while
this Debenture is outstanding, shall distribute to all holders of Common Stock
(and not to the Holder) evidences of its indebtedness or assets or rights or
warrants to subscribe for or purchase any security, then in each such case the
Fixed Conversion Price at which this Debenture shall thereafter be convertible
shall be 

 

7

 

determined by multiplying the Fixed Conversion Price in effect
immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the denominator
shall be the Closing Bid Price determined as of the record date mentioned
above, and of which the numerator shall be such Closing Bid Price on such
record date less the then fair market value at such record date of the portion
of such assets or evidence of indebtedness so distributed applicable to one
outstanding share of the Common Stock as determined by the Board of Directors
in good faith. In either case the adjustments shall be described in a statement
provided to the Holder of the portion of assets or evidences of indebtedness so
distributed or such subscription rights applicable to one share of Common
Stock. Such adjustment shall be made whenever any such distribution is made and
shall become effective immediately after the record date mentioned above.

 

(vi)          In case of any reclassification of the
Common Stock or any compulsory share exchange pursuant to which the Common
Stock is converted into other securities, cash or property, the Holder shall
have the right thereafter to, at its option, (A) convert the then outstanding
principal amount, together with all accrued but unpaid interest and any other amounts
then owing hereunder in respect of this Debenture into the shares of stock and
other securities, cash and property receivable upon or deemed to be held by
holders of the Common Stock following such reclassification or share exchange,
and the Holder of this Debenture shall be entitled upon such event to receive
such amount of securities, cash or property as the shares of the Common Stock
of the Obligor into which the then outstanding principal amount, together with
all accrued but unpaid interest and any other amounts then owing hereunder in
respect of this Debenture could have been converted immediately prior to such
reclassification or share exchange would have been entitled, or (B) require the
Obligor to prepay the outstanding principal amount of this Debenture, plus all
interest and other amounts due and payable thereon. The entire prepayment price
shall be paid in cash. This provision shall similarly apply to successive
reclassifications or share exchanges.

 

(vii)         All calculations under this Section 3 shall be rounded up to the
nearest $0.001 or whole share.

 

(viii)        Whenever the Fixed Conversion Price is
adjusted pursuant to Section 3
hereof, the Obligor shall promptly mail to the Holder a notice setting forth
the Fixed Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

 

(ix)           If (A) the Obligor shall declare a
dividend (or any other distribution) on the Common Stock; (B) the Obligor shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Obligor shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of
the Obligor shall be required in connection with any reclassification of the
Common Stock, any consolidation or merger to which the Obligor is a party, any
sale or transfer of all or substantially all of the assets of the Obligor, of
any compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; or (E) the Obligor shall authorize the voluntary
or involuntary 

 

8

 

dissolution, liquidation or winding up of the affairs of the Obligor;
then, in each case, the Obligor shall cause to be filed at each office or
agency maintained for the purpose of conversion of this Debenture, and shall
cause to be mailed to the Holder at its last address as it shall appear upon
the stock books of the Obligor, at least twenty (20) calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be
taken, the date as of which the holders of the Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close,
and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange, provided, that the
failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified
in such notice. The Holder is entitled to convert this Debenture during the
20-day calendar period commencing the date of such notice to the effective date
of the event triggering such notice.

 

(x)            In case of any (1) merger or
consolidation of the Obligor or any Subsidiary of the Obligor with or into
another Person, or (2) sale by the Obligor or any Subsidiary of the Obligor of
more than one-half of the assets of the Obligor in one or a series of related
transactions, a Holder shall have the right to (A) exercise any rights under Section 2(b), (B) convert the aggregate
amount of this Debenture then outstanding into the shares of stock and other
securities, cash and property receivable upon or deemed to be held by holders
of Common Stock following such merger, consolidation or sale, and such Holder
shall be entitled upon such event or series of related events to receive such
amount of securities, cash and property as the shares of Common Stock into
which such aggregate principal amount of this Debenture could have been
converted immediately prior to such merger, consolidation or sales would have
been entitled, or (C) in the case of a merger or consolidation, require the
surviving entity to issue to the Holder a convertible Debenture with a
principal amount equal to the aggregate principal amount of this Debenture then
held by such Holder, plus all accrued and unpaid interest and other amounts
owing thereon, which such newly issued convertible Debenture shall have terms
identical (including with respect to conversion) to the terms of this
Debenture, and shall be entitled to all of the rights and privileges of the
Holder of this Debenture set forth herein and the agreements pursuant to which
this Debentures were issued. In the case of clause (C), the conversion price
applicable for the newly issued shares of convertible preferred stock or
convertible Debentures shall be based upon the amount of securities, cash and
property that each share of Common Stock would receive in such transaction and
the Conversion Price in effect immediately prior to the effectiveness or closing
date for such transaction. The terms of any such merger, sale or consolidation
shall include such terms so as to continue to give the Holder the right to
receive the securities, cash and property set forth in this Section upon any
conversion or redemption following such event. This provision shall similarly
apply to successive such events. Notwithstanding any provision to the contrary
contained in this Debenture, the provisions of this Section 3(c)(x) shall not apply to any merger or
consolidation of or sale by the Obligor or any Subsidiary of the Obligor entered
into in connection with a Company Full Mandatory 

 

9

 

Redemption(as defined in the Senior Secured Convertible Notes).

 

(xi)           Notwithstanding any provision to the
contrary contained in this Debenture, no adjustment under this Section 3(c)
shall be made as to the Fixed Conversion Price as a result of the issuance,
grant, exercise or conversion of the Excluded Securities.

 

(d)           Other Provisions.

 

(i)            The Obligor covenants that it will
at all times reserve and keep available out of its authorized and unissued
shares of Common Stock solely for the purpose of issuance upon conversion of
this Debenture and payment of interest on this Debenture, each as herein
provided, free from preemptive rights or any other actual contingent purchase
rights of persons other than the Holder, not less than such number of shares of
the Common Stock as shall (subject to any additional requirements of the
Obligor as to reservation of such shares set forth in this Debenture) be
issuable (taking into account the adjustments and restrictions of Sections 2(b) and  3(c)) upon the conversion of the
outstanding principal amount of this Debenture and payment of interest
hereunder; and within three (3) Business Days following the receipt by the
Obligor of a Holder’s notice that such minimum number of shares of Common Stock
is not so reserved, the Obligor shall promptly reserve a sufficient number of
shares of Common Stock to comply with such requirement. The Obligor covenants
that all shares of Common Stock that shall be so issuable shall, upon issue, be
duly and validly authorized, issued and fully paid, nonassessable.

 

(ii)           Upon a conversion hereunder the
Obligor shall not be required to issue stock certificates representing
fractions of shares of the Common Stock, but may if otherwise permitted, make a
cash payment in respect of any final fraction of a share based on the Closing
Bid Price at such time. If the Obligor elects not, or is unable, to make such a
cash payment, the Holder shall be entitled to receive, in lieu of the final
fraction of a share, one whole share of Common Stock.

 

(iii)          The issuance of certificates for
shares of the Common Stock on conversion of this Debenture shall be made
without charge to the Holder thereof for any documentary stamp or similar taxes
that may be payable in respect of the issue or delivery of such certificate,
provided that the Obligor shall not be required to pay any tax that may be
payable in respect of any transfer involved in the issuance and delivery of any
such certificate upon conversion in a name other than that of the Holder of
such Debenture so converted and the Obligor shall not be required to issue or
deliver such certificates unless or until the person or persons requesting the
issuance thereof shall have paid to the Obligor the amount of such tax or shall
have established to the satisfaction of the Obligor that such tax has been
paid.

 

(iv)          Nothing herein shall limit a Holder’s
right to pursue actual damages or declare an Event of Default pursuant to Section 2 herein for the Obligor’s failure
to deliver certificates representing shares of Common Stock upon conversion
within the period specified herein and such Holder shall have the right to
pursue all remedies available to it at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief, in each
case without the need to post a bond or provide other security. The exercise of
any such 

 

10

 

rights shall not prohibit the Holder from seeking to enforce damages
pursuant to any other Section hereof or under applicable law.

 

(v)           In addition to any other rights
available to the Holder, if the Obligor fails to deliver to the Holder such
certificate or certificates pursuant to Section
3(a)(i) by the fifth (5th) Trading Day after the
Conversion Date, and if after such fifth (5th) Trading Day the
Holder purchases (in an open market transaction or otherwise) Common Stock to
deliver in satisfaction of a sale by such Holder of the Underlying Shares which
the Holder anticipated receiving upon such conversion (a “Buy-In”), then
the Obligor shall (A) pay in cash to the Holder (in addition to any remedies
available to or elected by the Holder) the amount by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the Common
Stock so purchased exceeds (y) the product of (1) the aggregate number of
shares of Common Stock that such Holder anticipated receiving from the
conversion at issue multiplied by (2) the market price of the Common Stock at
the time of the sale giving rise to such purchase obligation and (B) at the
option of the Holder, either reissue a Debenture in the principal amount equal
to the principal amount of the attempted conversion or deliver to the Holder
the number of shares of Common Stock that would have been issued had the
Obligor timely complied with its delivery requirements under Section 3(a)(i). For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted conversion of Debentures with respect to
which the market price of the Underlying Shares on the date of conversion was a
total of $10,000 under clause (A) of the immediately preceding sentence, the
Obligor shall be required to pay the Holder $1,000. The Holder shall provide
the Obligor written notice indicating the amounts payable to the Holder in
respect of the Buy-In.

 

(vi)          The Obligor represents that in no
event shall any conversion under the Debenture at prices that are less than or
equal to $0.65 trigger any adjustments, ratchets, or resets on any securities
issued pursuant to the Senior Secured Financing Documents.

 

Section 4.              Notices. Any notices, consents, waivers or other
communications required or permitted to be given under the terms hereof must be
in writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Trading Day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

 

	
  If to the
  Company, to:

  	
  Wentworth
  Energy, Inc.

  
	
   

  	
  112 E. Oak Street, Suite 200

  
	
   

  	
  Palestine,
  Texas 75801

  
	
   

  	
  Attention:

  	
  Chief
  Executive Officer

  
	
   

  	
  Telephone:

  	
  (903)
  723-0395

  
	
   

  	
  Facsimile:

  	
  (903)
  723-5368

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Wentworth
  Energy, Inc.

  
	
   

  	
  Suite 306A,
  15252 - 32nd Avenue

  

 

11

 

	
   

  	
  Surrey,
  British Columbia, V3S 0R7

  
	
   

  	
  Canada

  	
   

  
	
   

  	
  Attention:

  	
  Chief
  Financial Officer

  
	
   

  	
  Telephone

  	
  (604)
  536-6055

  
	
   

  	
  Facsimile:

  	
  (604)
  536-6077

  
	
   

  	
   

  	
   

  
	
  With a copy
  (for informational

  	
   

  	
   

  
	
  purposes
  only) to:

  	
  Dieterich
  & Associates

  
	
   

  	
  11300 W.
  Olympic Blvd.

  
	
   

  	
  Los Angeles,
  CA 90064

  
	
   

  	
  Attention:

  	
  Chris
  Dieterich, Esq.

  
	
   

  	
  Telephone:

  	
  (310)
  312-6888

  
	
   

  	
  Facsimile:

  	
  (310)
  312-6680

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Troutman Sanders LLP

  
	
   

  	
  401 9th St., N.W.

  
	
   

  	
  Suite 1000

  
	
   

  	
  Washington, DC 20004-2134

  
	
   

  	
  Attention:

  	
  Todd R. Coles, Esq.

  
	
   

  	
  Telephone:

  	
  (202) 274-2810

  
	
   

  	
  Facsimile:

  	
  (202) 654-5649

  
	
   

  	
   

  	
   

  
	
  If to the
  Holder:

  	
  YA Global
  Investments, L.P.

  
	
   

  	
  c/o Cornell
  Capital Partners, LP

  
	
   

  	
  101 Hudson
  Street, Suite 3700

  
	
   

  	
  Jersey City,
  NJ 07303

  
	
   

  	
  Attention:

  	
  Mark Angelo

  
	
   

  	
  Telephone:

  	
  (201)
  985-8300

  
	
   

  	
  Facsimile:

  	
  (201)
  985-8266

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
  David
  Gonzalez, Esq.

  
	
   

  	
  101 Hudson
  Street – Suite 3700

  
	
   

  	
  Jersey City,
  NJ 07302

  
	
   

  	
  Telephone:

  	
  (201)
  985-8300

  
	
   

  	
  Facsimile:

  	
  (201)
  985-8266

  

 

or at such other address and/or
facsimile number and/or to the attention of such other person as the recipient
party has specified by written notice given to each other party three (3) Business
Days prior to the effectiveness of such change. Written confirmation of receipt
(i) given by the recipient of such notice, consent, waiver or other
communication, (ii) mechanically or electronically generated by the sender’s
facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (iii) provided by a nationally
recognized overnight delivery service, shall be rebuttable evidence of personal

 

12

 

service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

 

Section 5.              Definitions. For the
purposes hereof, the following terms shall have the following meanings:

 

“Approved
Stock Plan” means any employee benefit plan, arrangement or other agreement
which has been approved by the Board of Directors of the Company, pursuant to
which the Company’s securities may be issued to any employee, consultant,
officer or director for services provided to the Company.

 

“Business
Day” means any day except Saturday, Sunday and any day which shall be a
federal legal holiday in the United States or a day on which banking
institutions are authorized or required by law or other government action to
close.

 

“Change of
Control Transaction” means the occurrence of (a) an acquisition after the
date hereof by an individual or legal entity or “group” (as described in Rule
l3d-5(b)(l) promulgated under the Exchange Act) of effective control (whether
through legal or beneficial ownership of capital stock of the Obligor, by
contract or otherwise) of in excess of fifty percent (50%) of the voting
securities of the Obligor (except that the acquisition of voting securities by
the Holder shall not constitute a Change of Control Transaction for purposes
hereof), (b) a replacement at one time or over time of more than one-half of
the members of the board of directors of the Obligor which is not approved by a
majority of those individuals who are members of the board of directors on the
date hereof (or by those individuals who are serving as members of the board of
directors on any date whose nomination to the board of directors was approved
by a majority of the members of the board of directors who are members on the
date hereof), (c) the merger, consolidation or sale of fifty percent (50%) or
more of the assets of the Obligor or any Subsidiary of the Obligor in one or a
series of related transactions with or into another entity, or (d) the
execution by the Obligor of an agreement to which the Obligor is a party or by
which it is bound, providing for any of the events set forth above in (a), (b)
or (c); provided, however, that notwithstanding any provision to the contrary
contained in this Debenture, in no event shall any event or circumstance,
transaction, agreement or arrangement of any kind entered into by the Company in
connection with a Company Full Mandatory Redemption (as defined in the Senior
Secured Convertible Notes) be a “Change of Control Transaction” for purposes of
this Debenture.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the common stock, par value $.001, of the Obligor and stock of
any other class into which such shares may hereafter be changed or
reclassified.

 

“Conversion
Date” means the date upon which the Holder gives the Obligor notice of
their intention to effectuate a conversion of this Debenture into shares of the
Company’s Common Stock as outlined herein.

 

“Convertible
Securities” means any stock or securities (other than Options) directly or 

 

13

 

indirectly convertible into or exercisable or exchangeable for Common
Stock

 

“Closing
Bid Price” means the price per share in the last reported trade of the
Common Stock on the OTC or on the exchange which the Common Stock is then
listed as quoted by Bloomberg, LP.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Excluded
Securities” means any Common Stock issued or issuable: (i) in connection
with any Approved Stock Plan; (ii) upon conversion of this Debenture or any of
the other Amended and Restated Convertible Debentures (as defined in the
Securities Purchase Agreement) or upon conversion of the Senior Secured
Convertible Notes or upon exercise of the Amended and Restated Warrants (as
defined in the Securities Purchase Agreement) or the Warrants (as defined in
the Other Securities Purchase Agreement); (iii) upon exercise of any Options or
Convertible Securities which are outstanding, or that are subject to a written
agreement as to their issuance that is listed on a schedule to the Other Securities
Purchase Agreement; (iv) in an amount not to exceed 250,000 shares of Common
Stock in the aggregate pursuant to a judgment or settlement in connection with
(a) the PIN Financial Matter or (b) the UOS Energy Matter including, without
limitation, Common Stock issuable pursuant to Options granted or Convertible
Securities issued pursuant to such judgment or settlement; and (v) otherwise
pursuant to a written agreement that is listed on a schedule to the Other Securities
Purchase Agreement, provided that the terms of conversion price, exchange
price, exercise or other purchase price therein are not amended, modified or
otherwise changed after the date hereof to reduce the conversion price,
exchange price, exercise or other purchase price below that in effect on the
date hereof, and the terms of the number of shares of Common Stock issued or
issuable therein are not amended, modified or changed after the date hereof to increase
the number of shares of Common Stock issued or issuable above that in effect on
the date hereof, by virtue of any amendment, modification or change to such
Options or Convertible Securities or written agreements after the date hereof.

 

“Options”
means any rights, warrants or options to subscribe for or purchase shares of
Common Stock or Convertible Securities.

 

“Original
Issue Date” means the initial date of this Debenture regardless of the number
of transfers or amendments and regardless of the number of instruments which
may be issued to evidence such Debenture.

 

“Other
Securities Purchase Agreement” means that certain Securities Purchase
Agreement dated as of July 24, 2006, by and among the Company and each of the
buyers party thereto, as the same may be amended, modified or supplemented from
time to time including, without limitation, by those certain Amendment
Agreements, each dated as of October 31, 2007, by and between the Obligor and
the buyer party thereto.

 

“Person”
means a corporation, an association, a partnership, organization, a business,
an individual, a government or political subdivision thereof or a governmental
agency.

 

14

 

“PIN Financial
Matter”  means the matter
pending in the US District Court, Southern District of New York (06 CV 2779)
against the Company by PIN Financial LLC claiming a commission for introduction
to Cornell Capital Partners, LP, which has been aggressively denied and
disputed by both Wentworth and Cornell Capital Partners, LP.

 

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

 

“Senior
Secured Convertible Notes” means those certain Amended and Restated Notes
and New Note as defined in and issued by the Company pursuant to the Other
Securities Purchase Agreement.

 

“Senior
Secured Financing Documents” means the Other Securities Purchase Agreement
and each other agreement entered into by the parties thereto in connection with
the transactions contemplated thereby, including without limitation the Amended
and Restated Notes, the New Notes, the Amended and Restated Warrants, the New
Warrants, the Amended and Restated Registration Rights Agreement, the Amended
and Restated Pledge Agreement, the Amended and Restated Security Agreement, the
Amended and Restated Barnico Guaranty, and the Amended and Restated Deeds of
Trust as each such term is defined therein.

 

“Subsidiary”
means any entity in which the Company, directly or indirectly, owns a majority
in voting power of the capital stock or equity or similar interests, provided
that for purposes of this Debenture, Wentworth Oil and Gas, Inc. shall not be a
Subsidiary.

 

“Trading
Day” means a day on which the shares of Common Stock are quoted on the OTC
or quoted or traded on such Subsequent Market on which the shares of Common
Stock are then quoted or listed; provided, that in the event that the shares of
Common Stock are not listed or quoted, then Trading Day shall mean a Business
Day.

 

“Transaction
Documents” has the meaning given to such term in the Securities Purchase
Agreement.

 

“Underlying
Shares” means the shares of Common Stock issuable upon conversion of this
Debenture or as payment of interest in accordance with the terms hereof.

 

“UOS Energy
Matter” means, the matter pending in the Superior Court of California,
County of Los Angeles, West District (SC09064) against the Company and others
by UOS Energy, LLC relating to the Company’s refusal to purchase certain tar
sands leases in Utah in consideration of 1,000,000 shares of Common Stock.

 

“Volume
Weighted Average Price” means, for any security as of any date, the daily
dollar volume-weighted average price for such security as reported by Bloomberg
through its “Historical Prices – Px Table with Average Daily Volume” functions,
or, if no dollar volume-weighted average price is reported for such security by
Bloomberg, the average of the highest 

 

15

 

closing bid price and the lowest closing ask price of any of the market
makers for such security as reported in the “pink sheets” by Pink Sheets LLC.

 

Section 6.              Except as expressly provided
herein, no provision of this Debenture shall alter or impair the obligations of
the Obligor, which are absolute and unconditional, to pay the principal of,
interest and other charges (if any) on, this Debenture at the time, place, and
rate, and in the coin or currency, herein prescribed. This Debenture is a
direct obligation of the Obligor. This Debenture ranks pari passu with all
other Debentures now or hereafter issued under the terms set forth herein. As
long as this Debenture is outstanding, the Obligor shall not and shall cause its
Subsidiaries not to, without the consent of the Holder, (i) amend its
certificate of incorporation, bylaws or other charter documents so as to
adversely affect any rights of the Holder; (ii) repay, repurchase or offer to
repay, repurchase or otherwise acquire shares of its Common Stock or other equity
securities other than as to the Underlying Shares to the extent permitted or
required under the Transaction Documents; or (iii) enter into any agreement
with respect to any of the foregoing, except as may be required or permitted by
the Senior Secured Financing Documents.

 

Section 7.              This Debenture shall not entitle
the Holder to any of the rights of a stockholder of the Obligor, including
without limitation, the right to vote, to receive dividends and other
distributions, or to receive any notice of, or to attend, meetings of
stockholders or any other proceedings of the Obligor, unless and to the extent
converted into shares of Common Stock in accordance with the terms hereof

 

Section 8.              If this Debenture is mutilated,
lost, stolen or destroyed, the Obligor shall execute and deliver, in exchange
and substitution for and upon cancellation of the mutilated Debenture, or in
lieu of or in substitution for a lost, stolen or destroyed Debenture, a new
Debenture for the principal amount of this Debenture so mutilated, lost, stolen
or destroyed but only upon receipt of evidence of such loss, theft or
destruction of such Debenture, and of the ownership hereof, and indemnity, if
requested, all reasonably satisfactory to the Obligor.

 

Section 9.              From and after the date on which
all of the Senior Secured Convertible Notes have been fully paid and satisfied
in accordance with their terms, (a) no indebtedness of the Obligor will be senior
to this Debenture in right of payment, whether with respect to interest,
damages or upon liquidation or dissolution or otherwise; and (b) without the
Holder’s consent, the Obligor will not and will not permit any of its Subsidiaries
to, directly or indirectly, enter into, create, incur, assume or suffer to
exist any indebtedness of any kind, on or with respect to any of its property
or assets now owned or hereafter acquired or any interest therein or any income
or profits there from that is senior in any respect to the obligations of the
Obligor under this Debenture.

 

Section 10.            This Debenture shall be governed by
and construed in accordance with the laws of the State of New Jersey, without
giving effect to conflicts of laws thereof. Each of the parties consents to the
jurisdiction of the Superior Courts of the State of New Jersey sitting in
Hudson County, New Jersey and the U.S. District Court for the District of New
Jersey sitting in Newark, New Jersey in connection with any dispute arising
under this Debenture and hereby 

 

16

 

waives, to the maximum extent permitted by law, any objection,
including any objection based on forum  non  conveniens to
the bringing of any such proceeding in such jurisdictions.

 

Section 11.            If the Obligor fails to strictly
comply with the terms of this Debenture, then the Obligor shall reimburse the
Holder promptly for all fees, costs and expenses, including, without
limitation, attorneys’ fees and expenses incurred by the Holder in any action
in connection with this Debenture, including, without limitation, those incurred:
(i) during any workout, attempted workout, and/or in connection with the
rendering of legal advice as to the Holder’s rights, remedies and obligations,
(ii) collecting any sums which become due to the Holder, (iii) defending or
prosecuting any proceeding or any counterclaim to any proceeding or appeal; or
(iv) the protection, preservation or enforcement of any rights or remedies of
the Holder.

 

Section 12.            Any waiver by the Holder of a breach
of any provision of this Debenture shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other
provision of this Debenture. The failure of the Holder to insist upon strict
adherence to any term of this Debenture on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Debenture. Any waiver must be
in writing.

 

Section 13.            If any provision of this Debenture
is invalid, illegal or unenforceable, the balance of this Debenture shall
remain in effect, and if any provision is inapplicable to any person or
circumstance, it shall nevertheless remain applicable to all other persons and
circumstances. If it shall be found that any interest or other amount deemed
interest due hereunder shall violate applicable laws governing usury, the
applicable rate of interest due hereunder shall automatically be lowered to
equal the maximum permitted rate of interest. The Obligor covenants (to the
extent that it may lawfully do so) that it shall not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, extension or usury law or other law which would prohibit or forgive
the Obligor from paying all or any portion of the principal of or interest on
this Debenture as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of
this indenture, and the Obligor (to the extent it may lawfully do so) hereby
expressly waives all benefits or advantage of any such law, and covenants that
it will not, by resort to any such law, hinder, delay or impeded the execution
of any power herein granted to the Holder, but will suffer and permit the
execution of every such as though no such law has been enacted.

 

Section 14.            Whenever any payment or other
obligation hereunder shall be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day.

 

Section 15.            THE PARTIES HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS DEBENTURE OR ANY TRANSACTION 

 

17

 

DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS DEBENTURE.

 

Section 16.            Entire Agreement. This
Debenture reflects the entire understanding of the Obligor and the Holder with
respect to the transactions contemplated hereby and shall not be contradicted
or qualified by any other agreement, oral or written, entered into before the
date hereof.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

18

 

IN WITNESS WHEREOF,
the Obligor has caused this Amended and Restated Secured Convertible Debenture
to be duly executed by a duly authorized officer as of the date set forth
above.

 

	
   

  	
   

  	
  WENTWORTH ENERGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  John Punzo

  
	
   

  	
   

  	
  Title: 

  	
  Chief
  Executive Officer

  
						

 

19

 

EXHIBIT “A”

 

NOTICE OF CONVERSION

 

(To be executed by the Holder in order to convert
the Debenture)

 

TO:

 

The
undersigned hereby irrevocably elects to convert $                          
of the principal amount of the above Debenture into Shares of Common Stock of
Wentworth Energy, Inc., according to the conditions stated therein, as of the
Conversion Date written below.

 

	
  Conversion Date:

  	
   

  
	
   

  	
   

  
	
  Applicable Conversion Price:

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
  Amount to be converted:

  	
  $

  
	
   

  	
   

  
	
  Amount of Debenture

  	
   

  
	
  unconverted:

  	
  $

  
	
   

  	
   

  
	
  Conversion Price per share:

  	
  $

  
	
   

  	
   

  
	
  Number of shares of Common

  	
   

  
	
  Stock to be issued:

  	
   

  
	
   

  	
   

  
	
  Please issue the shares of

  	
   

  
	
  Common Stock in the following

  	
   

  
	
  name and to the following

  	
   

  
	
  address:

  	
   

  
	
   

  	
   

  
	
  Issue to:

  	
   

  
	
   

  	
   

  
	
  Authorized Signature:

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  Phone Number:

  	
   

  
	
   

  	
   

  
	
  Broker DTC Participant Code:

  	
   

  
	
   

  	
   

  
	
  Account Number:

  	
   

  

 

20Exhibit 4.24

 

WARRANT

 

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

 

WENTWORTH ENERGY, INC.

 

Amended and Restated Warrant To Purchase
Common Stock

 

	
  Warrant No.: CCP-

  	
   

  	
  Number of Shares: 500,000

  

 

Date of Issuance: October 31, 2007

Original Issue Date: January 12, 2006

 

The Company and the Holder hereby agree that this Warrant is issued in
exchange for and does hereby amend and restate, and completely replace, that
certain Warrant, dated as of January 12, 2006, by and between the Company and
the Holder, which shall have no further force or effect.

 

Wentworth Energy, Inc., an Oklahoma corporation (the “Company”),
hereby certifies that, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, YA
Global Investments, L.P., a Cayman Islands exempt limited partnership
(the “Holder”), the registered holder hereof or its permitted assigns,
is entitled, subject to the terms set forth below, to purchase from the Company
upon surrender of this Warrant, at any time or times on or after the date
hereof, but not after 11:59 P.M. Eastern Time on the Expiration Date (as
defined herein) Five Hundred Thousand (500,000) fully paid and non-assessable
shares of Common Stock (as defined herein) of the Company (the “Warrant
Shares”) at the exercise price per share provided in Section 1(b) below or
as subsequently adjusted; provided, however, that in no event shall the holder
be entitled to exercise this Warrant for a number of Warrant Shares in excess
of that number of Warrant Shares which, upon giving effect to such exercise,
would cause the aggregate number of shares of Common Stock beneficially owned
by the holder and its affiliates to exceed 4.99% of the outstanding shares of
the Common Stock following such exercise. For purposes of the foregoing
proviso, the aggregate number of shares of Common Stock beneficially owned by
the holder and its affiliates shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to which the
determination of such 

 

 

proviso is being made, but shall exclude shares of Common Stock which
would be issuable upon (i) exercise of the remaining, unexercised Warrants
beneficially owned by the holder and its affiliates and (ii) exercise or
conversion of the unexercised or unconverted portion of any other securities of
the Company beneficially owned by the holder and its affiliates (including,
without limitation, any convertible notes or preferred stock) subject to a
limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this
paragraph, beneficial ownership shall be calculated in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended. For purposes of this
Warrant, in determining the number of outstanding shares of Common Stock a
holder may rely on the number of outstanding shares of Common Stock as
reflected in (1) the Company’s most recent Form l0-QSB or Form 10-KSB, as the
case may be, (2) a more recent public announcement by the Company or (3) any
other notice by the Company or its transfer agent setting forth the number of
shares of Common Stock outstanding. Upon the written request of any holder, the
Company shall promptly, but in no event later than one (1) Business Day
following the receipt of such notice, confirm in writing to any such holder the
number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to
the exercise of Warrants (as defined below) by such holder and its affiliates
since the date as of which such number of outstanding shares of Common Stock
was reported.

 

Section 1.

 

(a)           This Warrant is the
common stock purchase warrant (this “Warrant”) issued pursuant to that
certain Securities Purchase Agreement, dated as of January 12, 2006, by and
between the Company and the Holder, as amended by that certain Amendment and
Exchange Agreement, dated as of October 31, 2007 (“A&E Agreement”),
by and between the Company and the Holder (as the same may be further amended,
modified or supplemented from time to time, the “Securities Purchase
Agreement”).

 

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

 

(i)            “Approved Stock Plan”
means any employee benefit plan, arrangement or other agreement which has been
approved by the Board of Directors of the Company, pursuant to which the
Company’s securities may be issued to any employee, consultant, officer or
director for services provided to the Company.

 

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

 

(iii)          “Closing Bid Price”
means the price per share in the last reported trade of the Common Stock on the
OTC Bulletin Board (“OTC”) or on the exchange which the Common Stock is
then listed as quoted by Bloomberg, LP.

 

 

(iv)          “Common Stock”
means the common stock, par value $.001, of the Obligor and stock of any other
class into which such shares may hereafter be changed or reclassified.

 

(v)           “Convertible
Securities” means any stock or securities (other than Options) directly or
indirectly convertible into or exercisable or exchangeable for Common Stock.

 

(vi)          “Event of Default”
means an “Event of Default” as defined in the Convertible Debentures issued pursuant
to the Securities Purchase Agreement.

 

(vii)         “Excluded
Securities” means any Common Stock issued or issuable: (i) in connection
with any Approved Stock Plan; (ii) upon exercise of this Warrant or the other
Amended and Restated Warrants (as defined in the Securities Purchase Agreement)
or the Warrants (as defined in the Other Securities Purchase Agreement) or
conversion of the Amended and Restated Debentures (as defined in the Securities
Purchase Agreement) or the Senior Secured Convertible Notes or; (iii) upon
exercise of any Options or Convertible Securities which are outstanding, or
that are subject to a written agreement as to their issuance that is listed on
a schedule to the Other Securities Purchase Agreement; (iv) in an amount not to
exceed 250,000 shares of Common Stock in the aggregate pursuant to a judgment
or settlement in connection with (a) the PIN Financial Matter or (b) the UOS
Energy Matter including, without limitation, Common Stock issuable pursuant to
Options granted or Convertible Securities issued pursuant to such judgment or
settlement; and (v) otherwise pursuant to a written agreement that is listed on
a schedule to the Other Securities Purchase Agreement, provided that the terms
of conversion price, exchange price, exercise or other purchase price therein
are not amended, modified or otherwise changed after the date hereof to reduce
the conversion price, exchange price, exercise or other purchase price below
that in effect on the date hereof, and the terms of the number of shares of
Common Stock issued or issuable therein are not amended, modified or changed
after the date hereof to increase the number of shares of Common Stock issued
or issuable above that in effect on the date hereof, by virtue of any
amendment, modification or change to such Options or Convertible Securities or
written agreements after the date hereof.

 

(viii)        “Expiration Date”
means the date five (5) years from January 12, 2006 or, if such date falls on a
Saturday, Sunday or other day on which banks are required or authorized to be
closed in the City of New York or the State of New York or on which trading
does not take place on the Principal Exchange or automated quotation system on
which the Common Stock is traded (a “Holiday”), the next date that is
not a Holiday.

 

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

 

(xi)           “Options” means
any rights, warrants or options to subscribe for or purchase Common Stock or
Convertible Securities.

 

(xiii)         “Other
Securities Purchase Agreement” means that certain Securities Purchase
Agreement dated as of July 24, 2006, by and among the Company and each of the
buyers party thereto, as the same may be amended, modified or supplemented from
time to 

 

 

time including, without
limitation, by those certain Amendment Agreements, each dated as of October 31,
2007, by and between the Company and the buyer party thereto.

 

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

 

(xv)         “PIN Financial
Matter”  means the matter
pending in the US District Court, Southern District of New York (06 CV 2779)
against the Company by PIN Financial LLC claiming a commission for introduction
to Cornell Capital Partners, LP, which has been aggressively denied and
disputed by both the Company and Cornell Capital Partners, LP.

 

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

 

(xvii)       “Senior Secured
Convertible Notes” means those certain Amended and Restated Notes and New Note
as defined in and issued by the Company pursuant to the Other Securities
Purchase Agreement.

 

(xviii)      “Senior Secured
Financing Documents” means the Other Securities Purchase Agreement and each
other agreement entered into by the parties thereto in connection with the
transactions contemplated thereby, including without limitation the Amended and
Restated Notes, the New Notes, the Amended and Restated Warrants, the New
Warrants, the Amended and Restated Registration Rights Agreement, the Amended
and Restated Pledge Agreement, the Amended and Restated Security Agreement, the
Amended and Restated Barnico Guaranty, and the Amended and Restated Deeds of
Trust as each such term is defined therein.

 

(xix)         “Trading Day”
means a day on which the shares of Common Stock are quoted on the OTC or quoted
or traded on Nasdaq Capital Market, New York Stock Exchange, American Stock
Exchange or the Nasdaq National Market on which the shares of Common Stock are
then quoted or listed; provided, that in the event that the shares of Common
Stock are not listed or quoted, then Trading Day shall mean a Business Day.

 

(xx)          “UOS Energy
Matter” means, the matter pending in the Superior Court of California,
County of Los Angeles, West District (SC09064) against the Company and others
by UOS Energy, LLC relating to the Company’s refusal to purchase certain tar
sands leases in Utah in consideration of 1,000,000 shares of Common Stock.

 

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

 

(xxii)        “Warrant Exercise
Price” shall be $0.001 or as subsequently adjusted as provided in Section 8
hereof.

 

(xxiii)       “Warrant Shares”
means the shares of Common Stock issuable at any time upon exercise of this
Warrant.

 

 

(c)           Other Definitional
Provisions.

 

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

 

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

 

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

 

Section 2.               Exercise
of Warrant

 

(a)           Subject to the terms
and conditions hereof, this Warrant may be exercised by the holder hereof then
registered on the books of the Company, pro rata as hereinafter provided, at
any time on any Business Day on or after the opening of business on such
Business Day, commencing with the first day after the date hereof, and prior to
11:59 P.M. Eastern Time on the Expiration Date (i) by delivery of a written
notice, in the form of the subscription notice attached as Exhibit A
hereto (the “Exercise Notice”), of such holder’s election to exercise
this Warrant, which notice shall specify the number of Warrant Shares to be
purchased, payment to the Company of an amount equal to the Warrant Exercise
Price(s) applicable to the Warrant Shares being purchased, multiplied by the
number of Warrant Shares (at the applicable Warrant Exercise Price) as to which
this Warrant is being exercised (plus any applicable issue or transfer taxes)
(the “Aggregate Exercise Price”) in cash or wire transfer of immediately
available funds and the surrender of this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or
destruction) to a common carrier for overnight delivery to the Company as soon
as practicable following such date (“Cash Basis”) or (ii) by delivering
an Exercise Notice and in lieu of making payment of the Aggregate Exercise
Price in cash or wire transfer, elect instead to receive upon such exercise the
“Net Number” of shares of Common Stock determined according to the following
formula (the “Cashless Exercise”):

 

	
  Net Number =

  	
  (A x B) – (A x C)

  	
   

  
	
   

  	
  B

  	
   

  

 

For purposes of the foregoing formula:

 

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

 

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

 

 

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

 

In the event of any exercise of the rights represented by this Warrant
in compliance with this Section 2, the Company shall on or before the fifth (5th)
Business Day following the date of receipt of the Exercise Notice, the
Aggregate Exercise Price and this Warrant (or an indemnification undertaking
with respect to this Warrant in the case of its loss, theft or destruction) and
the receipt of the representations of the holder specified in Section 6 hereof,
if requested by the Company (the “Exercise Delivery Documents”), and if
the Common Stock is DTC eligible, credit such aggregate number of shares of
Common Stock to which the holder shall be entitled to the holder’s or its
designee’s balance account with The Depository Trust Company; provided,
however, if the holder who submitted the Exercise Notice requested physical
delivery of any or all of the Warrant Shares, or, if the Common Stock is not
DTC eligible then the Company shall, on or before the fifth (5th)
Business Day following receipt of the Exercise Delivery Documents, issue and
surrender to a common carrier for overnight delivery to the address specified
in the Exercise Notice, a certificate, registered in the name of the holder,
for the number of shares of Common Stock to which the holder shall be entitled
pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
Exercise Price referred to in clause (i) or (ii) above the holder of this
Warrant shall be deemed for all corporate purposes to have become the holder of
record of the Warrant Shares with respect to which this Warrant has been
exercised. In the case of a dispute as to the determination of the Warrant
Exercise Price, the Closing Bid Price or the arithmetic calculation of the
Warrant Shares, the Company shall promptly issue to the holder the number of
Warrant Shares that is not disputed and shall submit the disputed
determinations or arithmetic calculations to the holder via facsimile within
one (1) Business Day of receipt of the holder’s Exercise Notice.

 

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

 

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

 

 

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

 

(e)           If the Company or
its Transfer Agent shall fail for any reason or for no reason to issue to the
holder within ten (10) days of receipt of the Exercise Delivery Documents, a
certificate for the number of Warrant Shares to which the holder is entitled or
to credit the holder’s balance account with The Depository Trust Company for
such number of Warrant Shares to which the holder is entitled upon the holder’s
exercise of this Warrant, the Company shall, in addition to any other remedies
under this Warrant or otherwise available to such holder, pay as additional
damages in cash to such holder on each day the issuance of such certificate for
Warrant Shares is not timely effected an amount equal to 0.025% of the product of
(A) the sum of the number of Warrant Shares not issued to the holder on a
timely basis and to which the holder is entitled, and (B) the Closing Bid Price
of the Common Stock for the Trading Day immediately preceding the last possible
date which the Company could have issued such Common Stock to the holder
without violating this Section 2.

 

(f)            If within ten (10)
days after the Company’s receipt of the Exercise Delivery Documents, the
Company fails to deliver a new Warrant to the holder for the number of Warrant
Shares to which such holder is entitled pursuant to Section 2 hereof, then, in
addition to any other available remedies under this Warrant or the Placement
Agent Agreement, or otherwise available to such holder, the Company shall pay
as additional damages in cash to such holder on each day after such tenth (10th)
day that such delivery of such new Warrant is not timely effected in an amount
equal to 0.25% of the product of (A) the number of Warrant Shares represented
by the portion of this Warrant which is not being exercised and (B) the Closing
Bid Price of the Common Stock for the Trading Day immediately preceding the
last possible date which the Company could have issued such Warrant to the
holder without violating this Section 2.

 

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

 

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

 

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

 

(c)           During the period
within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized and reserved at least one hundred
percent (100%) of the number of shares of Common Stock needed to provide for
the exercise of the rights then represented by this Warrant and the par value
of said shares will at all times be less than or equal to the applicable
Warrant Exercise Price. If at any time the Company does not have a sufficient
number of shares of Common Stock authorized and available, then the 

 

 

Company shall call and hold a
special meeting of its stockholders within sixty (60) days of that time for the
sole purpose of increasing the number of authorized shares of Common Stock.

 

(d)           The Company shall so
list on each national securities exchange or automated quotation system, as the
case may be, and shall maintain such listing of, and other shares of capital
stock of the Company issuable upon the exercise of this Warrant if and so long
as any shares of the same class shall be listed on such national securities
exchange or automated quotation system.

 

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

 

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

 

(g)           The Company
represents that in no event shall any issuances of Common Stock under this
Warrant trigger any adjustments, ratchets, or resets on any securities issued pursuant
to the Senior Secured Financing Documents.

 

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

 

Section 5.               Warrant
Holder Not Deemed a Stockholder. Except as otherwise specifically provided
herein, no holder, as such, of this Warrant shall be entitled to vote or
receive dividends or be deemed the holder of shares of capital stock of the
Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote, give or withhold consent to
any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the holder of this Warrant of the Warrant
Shares which he or she is then entitled to receive upon the due exercise of
this Warrant. In addition, nothing contained in this Warrant shall be construed
as imposing any liabilities on such holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a stockholder of the Company,
whether such liabilities are asserted by the 

 

 

Company or by creditors of the
Company. Notwithstanding this Section 5, the Company will provide the holder of
this Warrant with copies of the same notices and other information given to the
stockholders of the Company generally, contemporaneously with the giving
thereof to the stockholders.

 

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

 

Section 7.               Ownership
and Transfer.

 

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

 

Section 8.               Adjustment
of Warrant Exercise Price and Number of Shares. The Warrant Exercise Price
and the number of shares of Common Stock issuable upon exercise of this Warrant
shall be adjusted from time to time as follows:

 

(a)           Adjustment of
Warrant Exercise Price and Number of Shares upon Issuance of Common Stock. If
and whenever on or after the Issuance Date of this Warrant, the Company issues
or sells, or is deemed to have issued or sold, any shares of Common Stock for a
consideration per share less than a price (the “Applicable Price”) equal
to the Warrant Exercise Price in effect immediately prior to such issuance or
sale, then immediately after such issue or sale the Warrant Exercise Price then
in effect shall be reduced to an amount equal to such 

 

 

consideration per share. Upon
each such adjustment of the Warrant Exercise Price hereunder, the number of
Warrant Shares issuable upon exercise of this Warrant shall be adjusted to the
number of shares determined by multiplying the Warrant Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares issuable
upon exercise of this Warrant immediately prior to such adjustment and dividing
the product thereof by the Warrant Exercise Price resulting from such
adjustment.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

(ii)           Integrated
Transactions. In case any Option is issued in connection with the issue or
sale of other securities of the Company, together comprising one 

 

 

integrated transaction in which
no specific consideration is allocated to such Options by the parties thereto,
the Options will be deemed to have been issued for a consideration of $.01.

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

(g)           Notices.

 

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

 

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

 

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

 

 

(h)           Excluded
Securities. Notwithstanding any provision to the contrary contained in this
Warrant, no adjustment under this Section 8 shall be made to the Warrant
Exercise Price as a result of the issuance, sale, grant or exercise of the
Excluded Securities.

 

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

 

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

 

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

 

 

limitations or restrictions on
the exercisability of this Warrant). Notwithstanding any provision to the
contrary in this Warrant, in no event shall the provisions of this Section 9(b)
apply to any transaction, agreement or arrangement entered into by the Company
in connection with a Company Full Mandatory Redemption (as such term is defined
in the Senior Secured Convertible Notes), and any such transaction, agreement
or arrangement shall not be an “Organic Change” for purposes of this Warrant.

 

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

 

Section 11.             Notice.
Any notices, consents, waivers or other communications required or permitted to
be given under the terms of this Warrant must be in writing and will be deemed
to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of receipt is received
by the sending party transmission is mechanically or electronically generated
and kept on file by the sending party); or (iii) one Business Day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

 

	
  If to Holder:

  	
  YA Global Investments, L.P.

  
	
   

  	
  c/o Yorkville Advisors LLC

  
	
   

  	
  101 Hudson Street – Suite 3700

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
  Attention:

  	
  Mark A. Angelo

  
	
   

  	
  Telephone:

  	
  (201) 985-8300

  
	
   

  	
  Facsimile:

  	
  (201) 985-8266

  
	
   

  	
   

  	
   

  
	
  With Copy to:

  	
  David Gonzalez, Esq.

  
	
   

  	
  101 Hudson Street – Suite 3700

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
  Telephone:

  	
  (201) 985-8300

  
	
   

  	
  Facsimile:

  	
  (201) 985-8266

  
	
   

  	
   

  	
   

  
	
  If to the Company, to:

  	
  Wentworth Energy, Inc.

  
	
   

  	
  112 E. Oak Street, Suite 200

  
	
   

  	
  Palestine, Texas 75801

  
	
   

  	
  Attention:

  	
  Chief Executive Officer

  
	
   

  	
  Telephone:

  	
  (903) 723-0395

  
	
   

  	
  Facsimile:

  	
  (903) 723-5368

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Wentworth Energy, Inc.

  
	
   

  	
  Suite 306A, 15252 - 32nd Avenue

  
	
   

  	
  Surrey, British Columbia, V3S 0R7

  

 

 

	
   

  	
  Canada

  	
   

  
	
   

  	
  Attention:

  	
  Chief Financial Officer

  
	
   

  	
  Telephone

  	
  (604) 536-6055

  
	
   

  	
  Facsimile:

  	
  (604) 536-6077

  
	
   

  	
   

  	
   

  
	
  With a copy (for informational

  	
   

  	
   

  
	
  purposes only) to:

  	
  Dieterich & Associates

  
	
   

  	
  11300 W. Olympic Blvd.

  
	
   

  	
  Los Angeles, CA 90064

  
	
   

  	
  Attention:

  	
  Chris Dieterich, Esq.

  
	
   

  	
  Telephone:

  	
  (310) 312-6888

  
	
   

  	
  Facsimile:

  	
  (310) 312-6680

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Troutman Sanders LLP

  
	
   

  	
  401 9th St., N.W.

  
	
   

  	
  Suite 1000

  
	
   

  	
  Washington, DC 20004-2134

  
	
   

  	
  Attention:

  	
  Todd R. Coles, Esq.

  
	
   

  	
  Telephone:

  	
  (202) 274-2810

  
	
   

  	
  Facsimile:

  	
  (202) 654-5649

  

 

Each party shall provide five days’ prior written notice to the other
party of any change in address or facsimile number. Written confirmation of
receipt (A) given by the recipient of such notice, consent, facsimile, waiver
or other communication, (or (B) provided by a nationally recognized overnight
delivery service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

 

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

 

Section 13.             Amendment
and Waiver. Except as otherwise provided herein, the provisions of the
Warrants may be amended and the Company may take any action herein prohibited,
or omit to perform any act herein required to be performed by it, only if the
Company has obtained the written consent of the holders of Warrants
representing at least two-thirds of the Warrant Shares issuable upon exercise
of the Warrants then outstanding; provided that, except for Section 8(d), no
such action may increase the Warrant Exercise Price or decrease the number of
shares or class of stock obtainable upon exercise of any Warrant without the
written consent of the holder of such Warrant.

 

Section 14.             Descriptive
Headings; Governing Law. The descriptive headings of the several sections
and paragraphs of this Warrant are inserted for convenience only and do not 

 

 

constitute a part of this
Warrant. The corporate laws of the State of Nevada shall govern all issues
concerning the relative rights of the Company and its stockholders. All other
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by the internal laws of the State of New
Jersey, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New Jersey or any other jurisdictions) that
would cause the application of the laws of any jurisdictions other than the
State of New Jersey. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in Hudson County and the
United States District Court for the District of New Jersey, for the
adjudication of any dispute hereunder or in connection herewith or therewith,
or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is brought in an inconvenient forum
or that the venue of such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Warrant and
agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law.

 

Section 15.             Waiver
of Jury Trial. AS A MATERIAL INDUCEMENT
FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY
WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO
THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS
TRANSACTION.

 

Section 16.             Entire
Agreement. This Warrant reflects the entire understanding of the Company
and the Holder with respect to the transactions contemplated hereby and shall
not be contradicted or qualified by any other agreement, oral or written,
entered into before the date hereof.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

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

 

	
   

  	
   

  	
  WENTWORTH ENERGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Punzo

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
						

 

 

EXHIBIT A TO WARRANT

 

EXERCISE NOTICE

 

TO BE EXECUTED

BY THE REGISTERED HOLDER TO EXERCISE THIS
WARRANT

 

WENTWORTH ENERGY, INC.

 

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

 

Specify Method of exercise by check mark:

 

1.                  
Cash Exercise

 

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

 

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

 

2.                  
Cashless Exercise

 

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

 

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

 

Date:                 
  ,     

 

Name of Registered Holder

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

EXHIBIT B TO WARRANT

 

FORM OF WARRANT POWER

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

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