Document:

NEXT 1 INTERACTIVE, INC.
   
  CERTIFICATE OF DESIGNATION OF PREFERENCES,
  RIGHTS AND LIMITATIONS
  OF
  SERIES D CONVERTIBLE PREFERRED STOCK
   
  PURSUANT TO SECTION 78.1955
  OF THE NEVADA REVISED STATUTES
   
  The undersigned, William Kerby, does hereby certify that:
   
  1.          He is the Chief Executive Officer of Next 1 Interactive, Inc., a Nevada corporation (the “Corporation”).
   
  2.          The Corporation is authorized to issue 100,000,000 shares of preferred stock.
   
  3.          The following resolutions were duly adopted by the board of directors of the Corporation (the “Board of Directors”):
   
  WHEREAS, the articles of incorporation of the Corporation provides for a class of its authorized stock known as preferred stock, comprised of 100,000,000 shares, $0.00001 par value per share, issuable from time to time in one or more series;
   
  WHEREAS, the Board of Directors is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms of redemption and liquidation preferences of any wholly unissued series of preferred stock and the number of shares constituting any series and the designation thereof, of any of them; and
   
  WHEREAS, the Board of Directors desires to designate the rights, preferences, restrictions and other matters relating to a new series of preferred stock, to be known as the Corporation’s Series D Convertible Preferred Stock, consisting of up to 3,000,000 shares;
   
  NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby designate the terms of the Series D Convertible Preferred Stock as follows:
   
  TERMS OF PREFERRED STOCK
   
  Section 1.          Definitions. For the purposes hereof, the following terms shall have the following meanings:
   
  “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. With respect to a Holder, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Holder will be deemed to be an Affiliate of such Holder.
  
  
 
   
  “Alternate Consideration” shall have the meaning set forth in Section 8(b).
   
  “Business Day” means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.
   
  “Change of Control Transaction” means, after giving effect to the issuance of the Preferred Stock, (i) an acquisition after the date hereof by an individual, legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Corporation, by contract or otherwise) of in excess of 50% of the voting securities of the Corporation (other than by means of conversion or exercise of Preferred Stock and any securities issued together with the Preferred Stock), or (ii) a merger by the Corporation with or into, or a consolidation of the Corporation with or into, any other Person, as a result of which, after giving effect to such transaction, the stockholders of the Corporation immediately prior to such transaction own less than 50% of the aggregate voting power of the Corporation or the successor entity of such transaction, or (iii) the sale or transfer by the Corporation of all or substantially all of its assets to another Person (so long as the stockholders of the Corporation immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction), or (iv) a replacement at one time or within a one-year period of more than one half of the members of the Board of Directors 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), or (v) the execution by the Corporation of an agreement to which the Corporation is a party or by which it is bound, providing for any of the events set forth in clauses (i) through (iv) above.
   
  “Common Stock” means the Corporation’s common stock, par value $0.00001 per share, and stock of any other class of securities into which such securities may hereafter be reclassified or changed into.
   
  “Common Stock Equivalents” means any securities of the Corporation or the Corporation’s wholly owned subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
   
  “Conversion Amount” means the sum of the Stated Value at issue.
   
  “Conversion Date” shall have the meaning set forth in Section 6(a).
  
   
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  “Corporation Conversion Price” shall have the meaning set forth in Section 6(b).
   
  “Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in accordance with the terms hereof.
   
  “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
   
  “Florida Courts” shall have the meaning set forth in Section 10(c).
   
  “Fundamental Transaction” shall have the meaning set forth in Section 8(b).
   
  “Holder” shall have the meaning given such term in Section 2.
   
  “Junior Securities” means the Common Stock and all other Common Stock Equivalents of the Corporation other than those securities which are explicitly senior to the Preferred Stock in dividend rights or liquidation preference.
   
  “Liquidation” shall have the meaning set forth in Section 5.
   
  “Notice of Conversion” shall have the meaning set forth in Section 6(a).
   
  “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
   
  “Preferred Stock” shall have the meaning set forth in Section 2.
   
  “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
   
  “Share Delivery Date” shall have the meaning set forth in Section 6(d).
   
  “Stated Value” shall have the meaning set forth in Section 2.
   
  “Subsidiary Common Stock” shall have the meaning set forth in Section 6(b).
   
  “Successor Entity” shall have the meaning set forth in Section 8(b).
   
  “Trading Day” means a day on which the New York Stock Exchange is open for business.
   
  “Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the American Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, the OTCQX or the Pink Sheets.
   
   
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  “Trading Price” means the closing bid price on the Trading Market where such security is listed or trades. If the Corporation is not listed or trading on a Trading Market, the Trading Price shall be the fair market value as determined in good faith by the Board of Directors.
   
  Section 2.          Designation, Amount and Par Value. The series of preferred stock shall be designated as its Series D Convertible Preferred Stock (the “Preferred Stock”) and the number of shares so designated shall be up to 3,000,000 (which shall not be subject to increase without the written consent of all of the holders of the Preferred Stock (each, a “Holder” and collectively, the “Holders”)). Each share of Preferred Stock shall have a par value of $0.00001 per share and a stated value equal to $5.00 (the “Stated Value”).
   
  Section 3.          Dividends. From and after the date of the issuance of any shares of Preferred Stock, dividends at the rate of ten percent (10%) per annum shall accrue on the Stated Value of such shares of Preferred Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Preferred Stock) (the “Accruing Dividends”). The Accruing Dividends will be declared by the Board of Directors on a quarterly basis on February 28, May 31, August 31 and November 30 of each calendar year. Accruing Dividends shall accrue from day to day, whether or not declared, and shall be cumulative. At the election of the Corporation, the Corporation may satisfy its obligations hereunder to pay dividends on the Preferred Stock by issuing shares of Common Stock to the Holders of Preferred Stock on a uniform and prorated basis. In any such case, the number of shares required to satisfy dividend-payment obligations hereunder shall equal 120% of the quotient obtained by dividing the (i) the amount of dividend-payment obligations to be satisfied by (ii) the average Trading Price of the Common Stock on the ten (10) Trading Days immediately preceding the date on which the Corporation elects to satisfy dividend-payment obligations through the issuance of common shares. The Corporation shall notify the Holders in writing within two days of any election by the Corporation to issue Common Stock in satisfaction of dividend-payment obligations hereunder.
   
  Section 4.          Voting Rights. Except as otherwise provided herein or as otherwise required by law, the Preferred Stock shall have no voting rights.
   
  Section 5.          Liquidation. Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a “Liquidation”), the Holders shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation an amount equal to 100% of the Stated Value, plus any accrued and unpaid dividends thereon and any other fees or liquidated damages owing thereon, for each share of then-outstanding Preferred Stock before any distribution or payment shall be made to the holders of any Junior Securities, and if the assets of the Corporation shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the Holders shall be ratably distributed among the Holders in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full. A Fundamental Transaction or Change of Control Transaction shall not be deemed a Liquidation. The Corporation shall mail written notice of any such Liquidation, not less than 45 days prior to the payment date stated therein, to each Holder.
  
   
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  Section 6.          Conversion.
   
  a)      Conversions at Option of Holder. Each share of Preferred Stock and any accrued but unpaid dividends shall be convertible, at any time and from time to time from and after issuance at the option of the Holder thereof, into that number of shares of Common Stock of the Corporation or RealBiz Media Group, Inc. (formerly known as Webdigs, Inc.), a subsidiary of the Corporation, at the option of the Holder (as described in Section 6(b) below) determined by dividing the Stated Value of the Preferred Stock to be converted by the applicable Conversion Price. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached hereto as Annex A (a “Notice of Conversion”). Each Notice of Conversion shall specify the number of shares of Preferred Stock to be converted, the number of shares of Preferred Stock owned prior to the conversion at issue, the number of shares of Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date may not be prior to the date the applicable Holder delivers by facsimile such Notice of Conversion to the Corporation (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation is deemed delivered hereunder. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error. To effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the certificate(s) representing such shares of Preferred Stock to the Corporation unless all of the shares of Preferred Stock represented thereby are so converted, in which case such Holder shall deliver the certificate representing such shares of Preferred Stock promptly following the Conversion Date at issue. Shares of Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.
   
  b)       Conversion Price. The conversion price for the Preferred Stock shall equal $5.00, subject to adjustment herein (the “Corporation Conversion Price”), except that if the Holder elects to convert the Preferred Stock into shares of common stock of RealBiz Media Group, Inc. (formerly known as Webdigs, Inc.) (or, in the event that the share exchange transaction between the Corporation and RealBiz Media Group, Inc. fails to close, then shares of common stock of Attaché Travel International, Inc., a Florida corporation d/b/a Next One Realty) (the “Subsidiary Common Stock”), the conversion price shall be $0.15. Like the Corporation Conversion Price, the conversion price for conversions into Subsidiary Common Stock shall be subject to equitable adjustment by the Corporation in the event of stock splits, combinations or dividends relating to the Subsidiary Common Stock, by applying principles consistent with the terms set forth in Section 8 below.
  
  
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  c)          Mandatory Conversion. The Corporation may, at its sole discretion, cause all outstanding shares of Preferred Stock and accrued but unpaid dividends thereon to be converted into shares of Common Stock, at the Corporation Conversion Price, upon the Corporation’s Common Stock achieving a Trading Price equal to 150% of the Corporation Conversion Price then in effect for a period of ten (10) consecutive Trading Days. In addition, on and after August 15, 2014 (the “Maturity Date”), the Corporation must either (A) redeem the Preferred Stock in accordance with Section 7 below, or (B) in lieu of redeeming the Preferred Stock pursuant to Section 7, cause the mandatory conversion of the Preferred Stock, together with accrued but unpaid dividends thereon, into shares of shares of Common Stock at the higher of the (i) Corporation Conversion Price then in effect or (ii) the Variable Conversion Price. The “Variable Conversion Price” shall mean 80% of the average closing price for the Common Stock during the ten (10) Trading Day period ending on the latest complete Trading Day prior to the Maturity Date. No fractional shares of Common Stock are to be issued upon the conversion of any share of Preferred Stock, but rather the number of shares of Common Stock to be issued shall be rounded to the nearest whole number.
   
  d)          Mechanics of Conversion.
   
  i.           Delivery of Certificate Upon Conversion. Not later than ten Trading Days after each Conversion Date (the “Share Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder a certificate or certificates representing the number of Conversion Shares being acquired upon the conversion of shares of Preferred Stock. If in the case of any Notice of Conversion such certificate or certificates are not delivered to or as directed by the applicable Holder by the tenth Trading Day after the Conversion Date, the applicable Holder shall be entitled to elect to rescind such Conversion Notice by written notice to the Corporation at any time on or before its receipt of such certificate or certificates, in which event the Corporation shall promptly return to such Holder any original Preferred Stock certificate delivered to the Corporation and such Holder shall promptly return to the Corporation any Common Stock certificates representing the shares of Preferred Stock unsuccessfully tendered for conversion to the Corporation.
   
  ii.           Obligation Absolute. The Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Preferred Stock in accordance with the terms hereof is absolute and unconditional, irrespective of any action or inaction by a Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by such Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to such Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a waiver by the Corporation of any such action that the Corporation may have against such Holder.
   
  iii.          Reservation of Shares Issuable Upon Conversion. The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Preferred Stock, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holders of the Preferred Stock, not less than such aggregate number of shares of the Common Stock as shall be issuable (taking into account the adjustments of Section 8) upon the conversion of all outstanding shares of Preferred Stock hereunder. The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and non-assessable. The Corporation also covenants that it will at all times reserve and keep available a sufficient number of shares of Subsidiary Common Stock (or other securities of RealBiz Media Group, Inc. that are exercisable for or convertible into Subsidiary Common Stock) to satisfy conversions of Preferred Stock into Subsidiary Common Stock that may occur pursuant to Section 6 above.
  
  
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  iv.          Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred Stock. As to any fraction of a share which a Holder would otherwise be entitled to purchase upon such conversion, the Corporation shall round up to the next whole share.
   
  v.           Transfer Taxes. The issuance of certificates for shares of the Common Stock on conversion of this Preferred Stock shall be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that the Corporation 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 Holders of such shares of Preferred Stock and the Corporation 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 Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.
   
  Section 7.           Redemption.
   
  a)           General. Unless prohibited by Nevada law governing distributions to stockholders, then: (1) at any time and from time to time prior to the Maturity Date, at the Corporation’s sole discretion, the Corporation may redeem all or any outstanding shares of Preferred Stock at a per-share price of $5.00 (subject to equitable adjustment upon stock splits, stock dividends, etc.), plus all accrued but unpaid dividends thereon (the “Redemption Price”), from the Holders of the then-outstanding shares of Preferred Stock, by written notice requesting redemption of all shares of Preferred Stock (i.e., the “Redemption Notice” described in paragraph (b) below); and (2) (unless the Corporation exercises its right force conversion of the Preferred Stock pursuant to Section 6(c) above) on the Maturity Date, the Corporation shall redeem from the Holders of the then-outstanding shares of Preferred Stock, all of such outstanding shares of Preferred Stock at the Redemption Price by delivering a Redemption Notice on such date (or, if the Corporation fails to deliver such notice, it shall be deemed to have been so given). The effective date of the Redemption shall be referred to as the “Redemption Date,” and shall be no fewer than ten (10) days and more than sixty (60) days from the date of the Redemption Notice.
   
  b)           Redemption Notice. The Corporation shall send written notice of any redemption (the “Redemption Notice”) to each Holder of record of the Preferred Stock. The Redemption Notice shall state:
   
  i.          the number of shares of Preferred Stock held by the Holder that the Corporation shall redeem specified in the Redemption Notice;
   
  
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  ii.          the Redemption Date and the Redemption Price;
   
  iii.          the date upon which the Holder’s right to convert such shares terminates; and
   
  iv.          that the Holder is to surrender to the Corporation, in the manner and at the place designated, his, her or its certificate or certificates representing the shares of the Preferred Stock to be redeemed.
   
  c)            Surrender of Certificates; Payment. On or before the Redemption Date, each Holder of shares of Preferred Stock to be redeemed, unless such Holder has exercised his, her or its right to convert such shares, shall surrender the certificate or certificates representing such shares (or, if such registered Holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation, in the manner and at the place designated in the Redemption Notice, and thereupon the Redemption Price for such shares shall be payable to the order of the person whose name appears on such certificate or certificates as the owner thereof.
   
  d)            Rights Subsequent to Redemption. If the Redemption Notice shall have been duly given, and if on the applicable Redemption Date the Redemption Price payable upon redemption of the shares of Preferred Stock to be redeemed on such Redemption Date is paid or tendered for payment or deposited with an independent payment agent so as to be available therefor in a timely manner, then notwithstanding that the certificates evidencing any of the shares of Preferred Stock so called for redemption shall not have been surrendered, dividends with respect to such shares of Preferred Stock shall cease to accrue after such Redemption Date and all rights with respect to such shares shall forthwith after the Redemption Date terminate, except only the right of the Holders to receive the Redemption Price without interest upon surrender of their certificate or certificates therefor.
   
  e)            Redeemed or Otherwise Acquired Shares. Any shares of Preferred Stock that are redeemed or otherwise acquired by the Corporation or any of its subsidiaries shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred. Neither the Corporation nor any of its subsidiaries may exercise any voting or other rights granted to the Holders of Preferred Stock following redemption.
   
  Section 8.              Certain Adjustments.
   
  a)           Stock Dividends and Stock Splits. If the Corporation, at any time while this Preferred Stock is outstanding: (A) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion of, or payment of a dividend on, this Preferred Stock); (B) subdivides outstanding shares of Common Stock into a larger number of shares; (C) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares; or (D) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section 8(a) 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.
  
   
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  b)           Fundamental Transaction. If, at any time while this Preferred Stock is outstanding, (A) the Corporation effects any merger or consolidation of the Corporation with or into another Person, (B) the Corporation effects any sale of all or substantially all of its assets in one transaction or a series of related transactions, (C) any tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Corporation effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then, upon any subsequent conversion of this Preferred Stock, the Holders shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one share of Common Stock (the “Alternate Consideration”). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Corporation shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holders shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Preferred Stock following such Fundamental Transaction. The Corporation shall cause any successor entity in a Fundamental Transaction in which the Corporation is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Corporation under this Certificate of Designations in accordance with the provisions of this Section 8(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for the shares of Preferred Stock a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the certificates representing the shares of Preferred Stock which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of the Preferred Stock prior to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of the shares of Preferred immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of Designations and the other Transaction Documents referring to the “Corporation” shall refer instead to the Successor Entity), and may exercise every right and power of the Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designations and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Corporation herein.
  
  
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  c)           Calculations. All calculations under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 8, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.
   
  d)            Notice to the Holders.
   
  i.          Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 8, the Corporation shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
   
  ii.         Notice to Allow Conversion by Holder. If (A) the Corporation shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Corporation shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Corporation shall authorize the granting to all holders of the Common Stock of 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 Corporation shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Corporation is a party, any sale or transfer of all or substantially all of the assets of the Corporation, of any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Corporation shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Corporation, then, in each case, the Corporation shall cause to be filed at each office or agency maintained for the purpose of conversion of this Preferred Stock, and shall cause to be delivered to each Holder at its last address as it shall appear upon the stock books of the Corporation, at least 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 deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to convert the Conversion Amount of this Preferred Stock (or any part thereof) during the 20-day period commencing on the date of such notice.
  
  
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  Section 9.          Negative Covenants. So long as any shares of Preferred Stock are outstanding, unless the Holders of at least a majority in Stated Value of the then-outstanding shares of Preferred Stock shall have otherwise given prior written consent, the Corporation shall not, directly or indirectly:
   
  a)          amend its articles of incorporation, bylaws, or other charter documents so as to materially and adversely affect any rights of any Holder;
   
  b)          amend this Certificate of Designations;
   
  c)          authorize or create any class of equity ranking as to dividends, redemption or distribution of assets upon a Liquidation (as defined in Section 5) senior to the Preferred Stock;
   
  d)          enter into any agreement or understanding with respect to any of the foregoing; or
   
  e)          pay cash dividends or distributions on Junior Securities of the Corporation.
   
  Section 10.          Miscellaneous.
   
  a)          Notices. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service, addressed to the Corporation, at the address set forth above, facsimile number  1-888-693-0961, or such other facsimile number or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with this Section 10. Any and all notices or other communications or deliveries to be provided by the Corporation hereunder shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or address of such Holder appearing on the books of the Corporation, or if no such facsimile number or address appears on the books of the Corporation, at the principal place of business of the Holders. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section 10 prior to 5:30 p.m. (New York City time) on any date, (ii) the date immediately following the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section 10 between 5:30 p.m. and 11:59 p.m. (New York City time) on any date, (iii) the second Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.
  
   
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  b)         Lost or Mutilated Preferred Stock Certificate. If a Holder’s Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership hereof reasonably satisfactory to the Corporation.
   
  c)           Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the terms of this Certificate of Designation (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of Miami, Florida (the “Florida Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Florida Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), 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 such Florida Courts, or such Florida Courts are improper or inconvenient venue for such proceeding. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Certificate of Designation or the transactions contemplated hereby.
   
  d)          Waiver. Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation 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 Certificate of Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict adherence to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party (or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of Designation. Any waiver by the Corporation or a Holder must be in writing.
   
  e)           Severability. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation 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 violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law.
   
  f)           Next Business Day. 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.
  
   
 12
 
  
   g)          Headings. The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation and shall not be deemed to limit or affect any of the provisions hereof.
   
  h)         Status of Converted or Redeemed Preferred Stock. If any shares of Preferred Stock shall be converted, redeemed or reacquired by the Corporation, such shares shall resume the status of authorized but unissued shares of preferred stock and shall no longer be designated as Series D Convertible Preferred Stock.
   
  * * * * * * * * * *
  
  
 13
 
    
  IN WITNESS WHEREOF, the undersigned has executed this Certificate of Designation of Preferences, Rights and Limitations of the Series D Convertible Preferred Stock this ____ day of August 2012.
   
 	 	NEXT 1 INTERACTIVE, INC.
	 	 
	 	By:	  
	 	 	 William Kerby
	 	 Its:	Chief Executive Officer

  
  
 
   
  ANNEX A
   
  NOTICE OF CONVERSION
  (TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES
  OF PREFERRED STOCK)
   
  The undersigned hereby elects to convert the number of shares of Series D Convertible Preferred Stock indicated below into shares of:
   
 		  ̈	common stock, par value $0.00001 per share (the “Common Stock”), of Next 1 Interactive, Inc., a Nevada corporation (the “Corporation”), or

   
 		  ̈	common stock, par value $0.001 per share (the “Subsidiary Common Stock”), of RealBiz Media Group, Inc., a Delaware corporation (as described in Section 6(b) of the Series D Convertible Preferred Stock Certificate of Designation),

   
  according to the conditions hereof, as of the date written below. If shares of Common Stock (or Subsidiary Common Stock) are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. The undersigned is delivering herewith such certificates and opinions as may be required by the Corporation or pursuant to the Series D Convertible Preferred Stock Certificate of Designation. No fee will be charged to the Holder for any conversion, except for any such transfer taxes.
   
  Conversion calculations:
   
 	 	Date to effect conversion:  	  

   
 	 	Number of shares of Preferred Stock owned prior to conversion:  	   

   
 	 	Number of shares of Preferred Stock to be converted:  	   

   
 	 	Stated Value of shares of Preferred Stock to be converted:  	   

   
 	 	Number of shares of Common Stock 	 
	 	(or Subsidiary Common Stock) to be issued:  	  

   
 	 	Applicable conversion price:  	   

   
 	 	Number of shares of Preferred Stock after conversion:  	   

   
 	 	Address for delivery: 	   

   
 	 	[HOLDER]
	 	 
	 	By:	  
	 	Name:	 
	 	Title:SECURITIES PURCHASE AGREEMENT

 

 

 

Dated September 23, 2013

 

by and among

 

Emerald Oil, Inc.,

 

WDE Emerald Holdings LLC

 

and

 

White Deer Energy FI L.P.

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I Purchase and Sale; Closing; Closing Transactions	1
	 	 
	1.1	Purchase and Sale	1
	1.2	Closing	2
	1.3	Conditions Precedent to Closing	2
	 	 	 
	ARTICLE II Definitions	 4
	 	 
	2.1	Defined Terms	4
	2.2	Other Terms	6
	 	 	 
	ARTICLE III Representations and Warranties 	7
	 	 
	3.1	Representations and Warranties of the Company	7
	3.2	Representations and Warranties of the Investors	11
	 	 	 
	ARTICLE IV Covenants and Additional Agreements 	13
	 	 
	4.1	Further Assurances	13
	4.2	Expenses	13
	4.3	Transfer Restrictions	13
	4.4	Legend	13
	4.5	Certain Notifications Until Closing	14
	4.6	Conduct of Business	14
	4.7	Financial Statements and Other Reports	15
	4.8	Survival; Indemnification	16
	4.9	Business Opportunities	19
	4.10	Waiver of Registration Rights	19
	 	 	 
	ARTICLE V Miscellaneous 	19
	 	 
	5.1	Termination	19
	5.2	Effect of Termination	19
	5.3	Amendment	20
	5.4	Waivers	20
	5.5	Counterparts and Facsimile	20
	5.6	Governing Law; Submission to Jurisdiction, Etc	20
	5.7	Specific Performance	20
	5.8	Notices	21
	5.9	Publicity	22
	5.10	Entire Agreement, Etc	22
	5.11	Assignment	22
	5.12	Severability	22
	5.13	No Third Party Beneficiaries	23
	5.14	Interpretation	23

 

 

    	i

    	 

    

 

LIST OF ANNEXES AND SCHEDULES

 

	Annex A:	Form of Amendment No. 2 to the Registration Rights Agreement
	Schedule 1.1:	Purchased Securities
	Schedule 3.1(a):	Subsidiaries
	Schedule 3.1(b):	Capitalization
	Schedule 3.1(c):	Conflicts
	Schedule 3.1(h):	Litigation
	Schedule 3.1(k):	Brokers’ Fees
	Schedule 4.6:	Conduct of Business

 

    	ii

    	 

    

 

This SECURITIES PURCHASE
AGREEMENT, dated September 23, 2013 (this “Agreement”), is entered into by and among Emerald Oil, Inc., a Montana
corporation (the “Company”), WDE Emerald Holdings LLC, a Delaware limited liability company (“WD Investor
I”), and White Deer Energy FI L.P., a Cayman Islands exempted limited partnership (together with WD Investor I, the “Investors”
and each, an “Investor”).

 

RECITALS

 

A.The Company.
As of the date hereof, the Company has 500,000,000 authorized shares of common stock, $0.001 par value per share (“Common
Stock”), and 20,000,000 authorized shares of preferred stock, $0.001 par value per share (“Preferred Stock”).

 

B.The Offering.
The Company filed a universal shelf registration statement on Form S-3 (the “Registration Statement”) under
the Securities Act that became effective on October 30, 2012, and intends to file a prospectus supplement to the Registration Statement
in connection with a registered public offering by the Company of its Common Stock (the “Offering”) on September
23, 2013.

 

C.The Issuance.
In connection with the Offering, the Company intends to issue to the Investors in a private placement that number of shares of
Common Stock that, inclusive of the 2,785,600 shares of Common Stock and the warrants to purchase 5,114,633 shares of Common Stock
held by the Investors in the aggregate, equals 19.9% of the outstanding Common Stock immediately following the termination of the
Offering Period, or approximately 4,645,102 shares of Common Stock (such aggregate number of shares, the “Target Purchase
Amount”), subject to adjustment as set forth in Section 1.1 (such aggregate number of shares, as adjusted, the
“Purchased Securities”), and the Investors intend to purchase from the Company the Purchased Securities.

 

AGREEMENTS

 

NOW, THEREFORE, in
consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the parties hereto
agree as follows:

 

ARTICLE
I

Purchase and Sale; Closing; Closing Transactions

 

1.1Purchase
and Sale. On the terms and subject to the conditions set forth in this Agreement, the Company shall issue and sell to each
Investor, and each Investor shall purchase, severally and not jointly, from the Company (collectively, the sales of all of the
Purchased Securities hereunder, the “Purchase”) the number of shares of Common Stock set forth opposite such
Investor’s name on Schedule 1.1 at the Purchase Price, provided, however, that if the number of shares that
the Investors may purchase from the Company in a transaction without obtaining the consent of the stockholders of the Company in
accordance with the rules set forth in the NYSE MKT Company Guide and subject to confirmation and approval of the NYSE MKT either:

 

    	 

    	 

    

 

(a)Exceeds the
Target Purchase Amount, then the amount of the Purchased Securities shall equal such higher amount up to 19.9% of the greater of
the outstanding Common Stock or the voting power of the Company immediately following the closing of the Offering; or

 

(b)Is less than
the Target Purchase Amount, then the amount of the Purchased Securities shall equal such lower amount;

 

it being understood in
either the case of (a) or (b), that the number of such Purchased Securities to be purchased by each Investor shall be determined
by the agreement of the Investors and the Company. Notwithstanding the foregoing, in the event that the aggregate net proceeds
to be received by the Company from both the Offering and the Purchase would exceed $175,000,000, then the Purchase may not be consummated
without the consent of WD Investor I, which consent shall not be unreasonably withheld.

 

“Purchase
Price” means the per share price equal to the “Price to the “Public” as stated on the cover of the
final prospectus supplement to the Registration Statement in connection with the Offering less 100% of the “Underwriting
Discounts and Commissions” as stated on the cover of such prospectus supplement.

 

1.2Closing.

 

(a)On the terms
and subject to the conditions set forth in this Agreement, the closing of the Purchase (the “Closing”) shall
take place at the offices of Vinson & Elkins LLP, 666 Fifth Avenue, 26th Floor, New York, New York 10103, at 9:00
a.m., New York time, within 15 business days after the termination of the Offering Period, or as soon as practicable thereafter
after fulfillment or waiver of the conditions to the Closing as set forth in Section 1.3, or at such other place, time and
date as shall be determined by the Investors and the Company. The date on which the Closing occurs is referred to in this Agreement
as the “Closing Date.”

 

(b)At the Closing,
(i) the Company shall deliver to each of the Investors duly executed certificates, dated as of the Closing Date and bearing
appropriate legends as hereinafter provided for, representing all of the Common Stock set forth opposite such Investor’s
name on Schedule 1.1, and (ii) the Investors shall pay the total aggregate purchase price therefor as set forth in
Section 1.1 by wire transfer of immediately available funds to a bank account designated by the Company.

 

1.3Conditions
Precedent to Closing.

 

(a)Conditions
to Obligations of the Company. The obligation of the Company to consummate the Closing is subject to the fulfillment (or waiver
by the Company) at the Closing of each of the following conditions:

 

(i)(A) the representations
and warranties of the Investors set forth in Section 3.2 shall be true and correct in all material respects (except for
any representations and warranties that are qualified by materiality, Material Adverse Effect or similar qualifications, all of
which shall be true and correct in all respects) as though made on and as of the Closing Date (other than representations and warranties
that by their terms speak as of another date, which representations and warranties shall be so true and correct as of such date),
and (B) the Investors shall have performed in all material respects all obligations required to be performed by them under
this Agreement at or prior to the Closing; and

 

    	2

    	 

    

 

(ii)the Investors
shall have delivered to the Company a certificate executed on behalf of each Investor by a duly authorized officer of such Investor
or such Investor’s general partner, as applicable, dated as of the Closing Date, certifying the fulfillment of the conditions
specified in this Section 1.3(a).

 

(b)Conditions
to Obligations of the Investors. The obligation of the Investors to consummate the Closing is subject to the fulfillment (or
waiver by the Investors) at the Closing of each of the following conditions:

 

(i)(A) the representations
and warranties of the Company set forth in Section 3.1 shall be true and correct in all material respects (except for any
representations and warranties that are qualified by materiality, all of which shall be true and correct in all respects) as though
made on and as of the Closing Date (other than representations and warranties that by their terms speak as of another date, which
representations and warranties shall be so true and correct as of such date), and (B) the Company shall have performed in
all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing;

 

(ii)the Company shall
have duly executed and delivered to the Investors, and each of the Investors shall have duly executed and delivered to the Company,
Amendment No. 2, dated as of the Closing Date, in the form of Annex A hereto, to that certain Registration Rights
Agreement, dated February 19, 2013, as amended, by and among the parties hereto (such Registration Rights Agreements, as amended,
the “Registration Rights Amendment”);

 

(iii)no stop order
or suspension of trading shall have been imposed by NYSE MKT, the Securities and Exchange Commission (the “SEC”)
or any other Governmental Entity with respect to public trading of the Common Stock and the Company shall not have received any
notice indicating that the Common Stock will be suspended, limited or delisted;

 

(iv)neither the Company
nor any of its Subsidiaries shall be a debtor in a bankruptcy case or have filed for bankruptcy (under title 11 of the United States
Code or any other bankruptcy, receivership, or any other insolvency proceeding in any jurisdiction);

 

(v)since the date
hereof, there shall not have occurred a Material Adverse Change;

 

(vi)the Company shall
have delivered to the Investors a good standing certificate with respect to the Company and each of its Subsidiaries issued by
the Montana Secretary of State and the Colorado Secretary of State or, with respect to any such Subsidiary not incorporated or
otherwise organized under the laws of the State of Montana or the State of Colorado, the applicable Governmental Entity of the
jurisdiction in which such Subsidiary is organized, each dated as of a recent date;

  

(vii)the Company
shall have delivered to the Investors a certificate, executed on behalf of the Company by its Secretary, dated as of the Closing
Date, certifying (e) the resolutions adopted by the Company’s board approving the Transaction Documents, the Transactions
and the issuance of the Purchased Securities, (f) the current versions of the Articles of Incorporation and the Bylaws, (g) the
signatures and authority of persons signing the Transaction Documents and related documents on behalf of the Company and (h) the
fulfillment of the conditions specified in this Section 1.3(c);

 

    	3

    	 

    

 

(viii)the Company
shall have delivered all other documents, certificates, instruments and writings reasonably requested by any of the Investors or
their counsel prior to the Closing as may be necessary or advisable in connection with the consummation of any of the Transactions;
and

 

(ix)the Offering
shall have been consummated on or before the Closing Date.

 

ARTICLE
II

Definitions

 

2.1Defined
Terms. For purposes of this Agreement, the following words and phrases shall have the following meanings:

 

(a)“Affiliate”
means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such
other person. For purposes of this definition, “control” when used with respect to any person, means the possession,
directly or indirectly, of the power to cause the direction of management or policies of such person, whether through the ownership
of voting securities, by contract or otherwise.

 

(b)“Articles
of Incorporation” means the Company’s articles of incorporation, as amended, modified or supplemented from time
to time.

 

(c)“Bylaws”
means the Company’s bylaws, as amended, modified or supplemented from time to time.

 

(d)“Exchange
Act” means the Securities Exchange Act of 1934, as amended, modified or supplemented from time to time.

 

(e)“February
Purchase Agreement” means the Securities Purchase Agreement dated February 1, 2013, by and among the parties hereto.

 

(f)“GAAP”
means generally accepted accounting principles in the United States.

 

(g)“Governmental
Entity” means any (3) federal, state, local, municipal, foreign or other government (or agency thereof), (4) governmental,
quasi-governmental or regulatory authority of any nature (including any governmental agency, branch, department or other entity
and any court or other tribunal), (5) multinational organization or (iv) body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory or taxing authority or power any nature.

 

    	4

    	 

    

 

(h)“Material
Adverse Change” means any change, development or event that has had, has or would reasonably be expected to have, as
applicable, a material adverse effect on (6) the business, properties, results of operations or financial condition of the
Company and its Subsidiaries, taken as a whole, or (7) the ability of the Company to timely consummate the Transactions; provided,
however, that in determining whether there has been a Material Adverse Change or whether a Material Adverse Change could
or would occur, any change, development or event principally attributable to, arising out of, or resulting from any of the following
shall be disregarded (except if such change, development or event disproportionately and adversely impacts the business, properties,
results of operations or financial condition of the Company or any of its Subsidiaries, taken as a whole, compared to that or those,
as applicable, of companies in the industry in which the Company and its Subsidiaries operate): (a) general economic, business,
industry or credit, financial or capital market conditions in the United States, including conditions affecting generally the industry
in which the Company and its Subsidiaries operate; (b) the taking of any action required or permitted by this Agreement or
the Transaction Documents; (c) the taking of any action with the prior written consent of the Investors, (d) pandemics,
earthquakes, tornados, hurricanes, floods and acts of God, (e) acts of war (whether declared or not declared), sabotage, terrorism,
military actions or the escalation thereof; (f) any changes or prospective changes in applicable laws, regulations or accounting
rules, including GAAP or interpretations thereof, or any changes or prospective changes in the interpretation or enforcement of
any of the foregoing, or any changes in general legal, regulatory or political conditions; (g) any existing change, development
or event with respect to which any Investor has knowledge as of the date hereof (including any matter set forth in the Schedules
to this Agreement); (h) the failure by the Company or any of its Subsidiaries to meet any projections, estimates or budgets
for any period prior to, on or after the date of this Agreement (but excluding herefrom any change, development or event underlying
such failure to the extent such change, development or event would otherwise constitute a Material Adverse Change); and (i) any
adverse change in or effect on the business of the Company and its Subsidiaries that is cured by or on behalf of the Company to
the reasonable satisfaction of the Investors before the earlier of the Closing Date and termination of this Agreement as set forth
in Article V.

 

(i)“Material
Adverse Effect” means any change, development or event that has had, has or would reasonably be expected to have, as
applicable, a material adverse effect on (8) the business, properties, results of operations or financial condition of the
Company and its Subsidiaries, taken as a whole; or (9) the ability of the Company to timely consummate the Transactions.

 

(j)“NYSE
MKT” means NYSE MKT LLC, a national securities exchange registered with the SEC pursuant to Section 6 of the Exchange
Act.

 

(k)“Offering
Period” means any period during which the underwriters in the Offering may exercise their option to purchase additional
shares of Common Stock in accordance with the Underwriting Agreement to be entered into by the Company and such underwriters in
connection with the Offering.

 

(l)“SEC
Reports” means all reports and forms filed by the Company with the SEC since April 19, 2010.

 

(m)“Securities
Act” means the Securities Act of 1933, as amended, modified or supplemented from time to time.

 

    	5

    	 

    

 

(n)“Subsidiary”
means, with respect to any person, those entities of which such person owns or controls more than 50% of the outstanding equity
securities either directly or through an unbroken chain of entities as to each of which more than 50% of the outstanding equity
securities is owned directly or indirectly by its parent.

 

(o)“Transaction
Documents” means, collectively, this Agreement and the Registration Rights Amendment, in each case as amended, modified
or supplemented from time to time in accordance with their respective terms.

 

(p)“Transactions”
means the transactions contemplated by the Transaction Documents, including the Purchase.

 

2.2Other
Terms. For purposes of this Agreement, the following terms shall have the meaning specified in the Sections indicated below:

 

	Term	Location of Definition 
	Agreement	Preamble
	Antitakeover Laws	Section  3.1(g)
	Bankruptcy Exceptions	Section  3.1(d)(i)
	business day	Section  5.14
	Claim	Section  4.8(e)
	Closing	Section  1.2(a)
	Closing Date	Section  1.2(a)
	Common Stock	Recital A
	Company	Preamble
	Confidentiality Agreement	Section  5.2
	Deductible	Section  4.8(d)
	Evaluation Date	Section  3.1(j)
	Indemnified Person	Section  4.8(e)
	Indemnifier	Section  4.8(e)
	Investor(s)	Preamble
	Investor Indemnified Parties	Section  4.8(b)
	Investor Material Adverse Effect	Section  3.2(a)(ii)
	Losses	Section  4.8(b)
	Offering	Recital B
	Preferred Stock	Recital A
	Purchase	Section  1.1
	Purchase Price	Section 1.1
	Purchased Securities	Recital C
	Registration Rights Amendment	Section  1.3(c)(ii)
	Registration Statement	Recital B
	SEC	Section 1.3(c)(iii)
	Target Purchase Amount	Recital C
	WD Investor I	Preamble
	White Deer Group	Section  4.9
	White Deer Group Member	Section  4.9

 

    	6

    	 

    

 

ARTICLE
III

Representations and Warranties

 

3.1Representations
and Warranties of the Company. The Company represents and warrants to the Investors that as of the date hereof and as of the
Closing Date (or such other date specified herein):

 

(a)Organization,
Authority and Subsidiaries. The Company has been duly incorporated and is validly existing as a corporation in good standing
under the laws of the State of Montana with corporate power and authority to own its properties and conduct its business as currently
conducted, and has been duly qualified as a foreign corporation for the transaction of business and is in good standing under the
laws of the State of Colorado and each other jurisdiction in which it owns or leases properties, or conducts any business so as
to require such qualification, except where the failure to qualify does not constitute a Material Adverse Effect. Each Subsidiary
of the Company, its jurisdiction of organization and all shares of capital stock or other voting securities of, or ownership interests
in, each such Subsidiary are set forth on Schedule 3.1(a). Each Subsidiary of the Company has been duly organized and is
validly existing in good standing under the laws of its jurisdiction of organization, with corporate, partnership, limited liability
company or other entity power and authority to own its properties and conduct its business as currently conducted, and has been
duly qualified as a foreign corporation, partnership, limited liability company or other entity for the transaction of business
and is in good standing under the laws of each other jurisdiction in which it owns or leases properties, or conducts any business
so as to require such qualification, except where the failure to qualify does not constitute a Material Adverse Effect.

 

(b)Capitalization.
The authorized capital stock of the Company consists of 500,000,000 shares of Common Stock,
of which 42,927,252 shares are issued and outstanding as of the date hereof, and 20,000,000 shares of Preferred Stock, of which
150,000 shares of Series A Perpetual Preferred Stock and 5,114,633 shares of Series B Voting Preferred Stock are issued and outstanding
as of the date hereof. Schedule 3.1(b) sets forth, as of the date hereof, all of the options, warrants and equity incentive
plans of the Company, and the number of shares of Common Stock reserved for issuance pursuant to any outstanding options, warrants
or equity incentive plans. The outstanding shares of the Company’s capital stock have been duly authorized and are validly
issued and outstanding, fully paid and non-assessable, are not subject to preemptive rights (and were not issued in violation of
any preemptive rights) and were issued in full compliance with applicable state and federal securities laws and any rights of third
parties. Except as provided in the February Purchase Agreement, no person is entitled to preemptive or similar statutory or contractual
rights with respect to any securities of the Company. Except as set forth above or on Schedule 3.1(b), as of the date hereof,
there are no outstanding warrants, options, convertible securities or other rights, agreements or arrangements of any character
under which the Company or any of its Subsidiaries is or may be obligated to issue any equity securities of any kind and, except
as contemplated by this Agreement and in the Offering, neither the Company nor any of its Subsidiaries is currently in negotiations
for the issuance of any equity securities of any kind. The issuance and sale of the Purchased Securities hereunder will not obligate
the Company to issue shares of Common Stock or other securities to any other person (other than the Investors) and will not result
in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security.

 

    	7

    	 

    

 

(c)Common Stock.
The Common Stock has been duly and validly authorized, and, when issued and delivered pursuant to this Agreement, the Common Stock
will be duly and validly issued, fully paid and non-assessable.

 

(d)Authorization,
Enforceability.

 

(i)The Company has
the corporate power and authority to execute and deliver the Transaction Documents and to carry out its obligations hereunder (which
includes the issuance of the Common Stock) and thereunder. The execution, delivery and performance by the Company of the Transaction
Documents and the consummation of the Transactions have been duly authorized by all necessary corporate action on the part of the
Company, and no further approval or authorization is required on the part of the Company, except as otherwise set forth in this
Agreement. The Transaction Documents are or will be valid and binding obligations of the Company enforceable against the Company
in accordance with their respective terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization,
fraudulent transfer or conveyance, moratorium or similar laws affecting the enforcement of creditors’ rights generally and
general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity (“Bankruptcy
Exceptions”).

 

(ii)Except as set
forth in Schedule 3.1(d), the execution, delivery and performance by the Company of the Transaction Documents, compliance
by the Company with any of the provisions hereof or thereof and the consummation of the Transactions, will not (a) violate,
conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time
or both, would constitute a default) under, or result in the termination of, accelerate the performance required by, or result
in any payment obligations under, or result in a right of termination, acceleration or payment of, or result in the creation of,
any lien, security interest, charge or encumbrance upon any of the properties or assets of the Company or any of its Subsidiaries
under any of the terms, conditions or provisions of (i) the Articles of Incorporation or the Bylaws or (ii) any material
note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Company
or any of its Subsidiaries is a party or by which it or any of its Subsidiaries may be bound, or to which the Company or any of
its Subsidiaries or any of the properties or assets of the Company or any of its Subsidiaries may be subject, including as a result
of any change of control or similar provision (except for violations, conflicts, breaches or defaults that do not constitute a
Material Adverse Effect) or (b) subject to compliance with the statutes and regulations referred to in the next paragraph,
materially violate (i) any statute, rule or regulation or any judgment, ruling, order, writ, injunction or decree or (ii) subject
to confirmation by and approval of the NYSE MKT that the Purchased Securities may be issued, any rule related to the qualification,
listing and delisting of companies on NYSE MKT, including the NYSE MKT Company Guide, in each case applicable to the Company or
any of its Subsidiaries or any of their respective properties or assets.

 

(iii)Other than the
filing of the Form 8-K and a Form D that may be required to be filed with the SEC, and such as have been made or obtained, no notice
to, filing with, exemption or review by, or authorization, consent or approval of, any Governmental Entity is required to be made
or obtained by the Company in connection with the consummation of the Transactions.

 

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(e)Reports.

 

(i)Since April 19,
2010, the Company has complied in all material respects with the filing requirements of Sections 13(a), 14(a) and 15(d) of the
Exchange Act.

 

(ii)The SEC Reports,
when they became effective or were filed with the SEC, as the case may be, conformed in all material respects to the requirements
of the Securities Act or the Exchange Act, as applicable, and the rules and regulations of the SEC thereunder, and none of such
documents, when they became effective or were filed with the SEC, contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
in which they were made, not misleading.

 

(f)Company Financial
Statements. The consolidated financial statements of the Company and its Subsidiaries included or incorporated by reference
in the SEC Reports filed prior to the Closing (except with respect to customary year-end adjustments and the absence of notes),
present fairly in all material respects the consolidated financial position of the Company and its Subsidiaries as of the dates
indicated therein and the consolidated results of their operations for the periods specified therein; and, except as stated therein,
such financial statements were prepared in conformity with GAAP, applied on a consistent basis (except for the absence of notes
and as otherwise may be noted therein).

 

(g)Application
of Takeover Protections.

 

(i)There are no “business
combination with interested stockholders” or similar antitakeover provisions under the Articles of Incorporation or the Bylaws
or the antitakeover laws and regulations of any state (collectively, the “Antitakeover Laws”) that are or could
become applicable to the Investors as a result of the Investors and the Company fulfilling their obligations or exercising their
rights under the Transaction Documents, including the Company’s issuance of the Purchased Securities and the Investors’
ownership of the Purchased Securities.

 

(ii)The Company has
not adopted any poison pill (including any distribution under a rights agreement) or other similar antitakeover measure.

 

(h)Litigation.
Schedule 3.1(h) sets forth a list and brief description of all securities-related or material actions, suits, claims, or
proceedings, or, to the Company’s knowledge, inquiries or investigations, before or by any court, arbitrator, Governmental
Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against the Company or any
of its Subsidiaries. Such suits, actions or proceedings pending or threatened against the Company or any of its Subsidiaries do
not and would not reasonably be expected to impair in any material respect the ability of the Company to perform its obligations
under the Transaction Documents, or prevent or materially impede the consummation by the Company of the Transactions.

 

    	9

    	 

    

 

(i)Compliance.
Neither the Company nor any of its Subsidiaries (10) is in material violation of any order of any court, arbitrator or Governmental
Entity, or (11) is in material violation of any statute, rule or regulation of any Governmental Entity, including all foreign,
federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and
safety and employment and labor matters. The Company is in compliance in all material respects with all applicable requirements
of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations thereunder, applicable to it.

 

(j)Internal
Accounting Controls. The Company and its Subsidiaries maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (12) transactions are executed in accordance with management’s general or specific authorizations,
(13) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (14) access to assets is permitted only in accordance with management’s general or specific authorization,
and (15) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15(d)-15(e)) for the Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company, including its Subsidiaries, is made known to the certifying officers by others within
those entities, particularly during the period in which the Company’s Form 10-K or Form 10-Q, as the case may be, is being
prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure controls and
procedures as of the last day of the period covered by the Company’s most recently filed Form 10-Q (such date, the “Evaluation
Date”). The Company presented in its most recently filed Form 10-Q the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation
Date, there have been no significant changes in the Company’s internal controls (as described in Item 308(c) of Regulation
S-K under the Exchange Act) or in other factors that could significantly and adversely affect the Company’s internal controls.
The Company’s auditors have not identified any significant deficiency or material weakness in the Company’s system
of internal controls for the Company’s last fiscal year that would have or would be reasonably likely to have a Material
Adverse Effect on the Company.

 

(k)Brokers or
Finders. Except as set forth on Schedule 3.1(k), no agent, broker, investment banker or other firm or person is or will
be entitled to any broker’s or finder’s fee or any other commission or similar fee in connection with the Purchase.

 

(l)No Directed
Selling Efforts or General Solicitation. Neither the Company nor any person acting on its behalf has conducted any general
solicitation or general advertising (as those terms are used in Regulation D of the Securities Act) in connection with the
offer or sale of any of the Purchased Securities.

 

(m)No Integrated
Offering. Neither the Company nor any of its Affiliates, nor any person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances that would adversely
affect reliance by the Company on Section 4(2) of the Securities Act for the exemption from registration for the transactions
contemplated hereby or would require registration of the Purchased Securities under the Securities Act.

 

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(n)Private Placement.
Assuming the accuracy of the representations of the Investors in Section 3.2(b), the offer and sale of the Purchased Securities
to the Investors as contemplated hereby is exempt from the registration requirements of the Securities Act.

 

3.2Representations
and Warranties of the Investors. The Investors, jointly and severally, hereby represent and warrant to the Company that as
of the date hereof and as of the Closing:

 

(a)Authorization,
Enforceability.

 

(i)Each Investor
has been duly organized and is validly existing as a limited liability company under the laws of the State of Delaware or an exempted
limited partnership under the laws of the Cayman Islands, as applicable, with the limited liability company power and authority
or limited partnership power and authority, respectively, to own its properties and conduct its business as currently conducted
and to execute and deliver the Transaction Documents and to carry out its obligations hereunder and thereunder. The execution,
delivery and performance by each Investor of the Transaction Documents and the consummation of the transactions contemplated hereby
and thereby have been duly authorized (including by such Investor’s general partner, if applicable) and all other necessary
limited liability company or limited partnership, as applicable, action on the part of such Investor, and no further approval or
authorization is required on the part of such Investor or any other party for such authorization to be effective. The Transaction
Documents are or will be valid and binding obligations of each Investor enforceable against such Investor in accordance with their
respective terms, except as the same may be limited by Bankruptcy Exceptions.

 

(ii)The execution,
delivery and performance by each Investor of the Transaction Documents and the consummation of the transactions contemplated hereby
and thereby and compliance by such Investor with any of the provisions hereof and thereof, will not (a) violate, conflict
with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right
of termination or acceleration of, or result in the creation of, any lien, security interest, charge or encumbrance upon any of
the properties or assets of such Investor under any of the terms, conditions or provisions of (i) its organizational documents
or (ii) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to
which such Investor is a party or by which it may be bound, or to which such Investor or any of the properties or assets of such
Investor may be subject, or (b) violate any statute, rule or regulation or any judgment, ruling, order, writ, injunction or
decree applicable to such Investor or any of its properties or assets except, in the case of clauses (A)(2) and (B), for such occurrences
that, individually or in the aggregate, have not had, do not have or would not be reasonably likely to have a material adverse
effect on the ability of the Investors to consummate the Purchase and the other transactions contemplated by this Agreement (an
“Investor Material Adverse Effect”).

 

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(iii)Other than such
as have been made or obtained, no notice to, filing with, exemption or review by, or authorization, consent or approval of, any
Governmental Entity is required to be made or obtained by any Investor in connection with the consummation by such Investor of
the Purchase except for any such notices, filings, exemptions, reviews, authorizations, consent and approvals the failure of which
to make or obtain would not constitute an Investor Material Adverse Effect.

 

(b)Purchase
for Investment. Each Investor acknowledges that the offering and sale of the Purchased Securities have not been registered
under the Securities Act or under any state securities laws. Each Investor understands that the Purchased Securities are “restricted
securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, each Investor must
hold the Purchased Securities indefinitely unless they are registered with the Securities and Exchange Commission and qualified
by state authorities, or an exemption from such registration and qualification requirements is available. Each Investor (16) is
acquiring the Purchased Securities pursuant to an exemption from registration under the Securities Act solely for investment with
no present intention to distribute them to any person in violation of the Securities Act or any applicable U.S. state securities
laws, (17) is acquiring the Purchased Securities for investment for its own account, not as a nominee or agent, and not with
a view to resale or distribute any part thereof; provided, however, that such representation is made without prejudice to
such Investor’s right to sell or otherwise dispose of all or any portion of the Purchased Securities in compliance with the
registration requirements or exemption provisions of the Securities Act and any applicable U.S. state securities laws, (18) will
not sell or otherwise dispose of any of the Purchased Securities, except in compliance with the registration requirements or exemption
provisions of the Securities Act and any applicable U.S. state securities laws, (19) has such knowledge and experience in
financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of the Purchase
and of making an informed investment decision, and has conducted a review of the business and affairs of the Company that it considers
sufficient and reasonable for purposes of making the Purchase, (20) has had the opportunity to ask questions and receive answers
from the authorized representatives or agents of the Company and the terms and conditions of this investment, and that any such
questions have been answered to such Investor’s full satisfaction, and (21) is an “accredited investor”
(as that term is defined by Rule 501 under the Securities Act). Each Investor acknowledges that the Company has no obligation to
register or qualify the Purchased Securities except as set forth in the Registration Rights Amendment.

 

(c)No General
Solicitation. No Investor is purchasing the Purchased Securities as a result of any advertisement, article, notice or other
communication regarding the Purchased Securities published in any newspaper, magazine or similar media, posted on the internet
or broadcast over television or radio. No Investor was identified or contacted through the marketing of the Offering and did not
independently contact the Company as a result of the Registration Statement or the prospectus supplement to the Registration Statement.

 

(d)Company Representations.
Each of the Investors acknowledges and agrees that (22) other than as expressly set forth in Section 3.1, the Company
neither is making nor has made any representations or warranties, written or oral, statutory, express or implied, concerning the
Company, its Subsidiaries, their respective businesses or assets or any aspect of the Transactions and (23) such Investor
has not been induced by and has not relied upon any representations, warranties or statements, whether written or oral, statutory,
express or implied, made by the Company that are not expressly set forth in Section 3.1.

 

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ARTICLE
IV

Covenants and Additional Agreements

 

4.1Further
Assurances. At any time and from time to time after the Closing, at the request of any Investor, the Company shall execute
and deliver such further documents, and perform such further acts, as may be reasonably necessary in order to effectively transfer
and convey the applicable Purchased Securities to each of the Investors, on the terms herein contained, and to otherwise comply
with the terms of this Agreement and consummate the Transactions.

 

4.2Expenses.
Each party hereto will pay its own expenses in connection with the transactions contemplated hereby, whether or not such transactions
shall be consummated; provided, however, that if such transactions are consummated, the Company shall pay out of the aggregate
purchase price the reasonable fees and out-of-pocket expenses of the Investors (including reasonable legal and engineering fees),
in an amount not to exceed $25,000 upon delivery to the Company of an invoice in reasonable detail in connection with such transactions.

 

 

4.3Transfer
Restrictions. The Purchased Securities are, and will be when issued, restricted securities under the Securities Act and may
not be offered or sold except pursuant to an effective registration statement or an available exemption from registration under
the Securities Act. Accordingly, each Investor agrees it shall not, directly or through others, offer or sell any Purchased Securities
except pursuant to an effective registration statement or pursuant to Rule 144 or another exemption from registration under the
Securities Act, if available. Prior to any transfer of Purchased Securities other than pursuant to an effective registration statement,
each Investor agrees it shall notify the Company of such transfer, and the Company may require such Investor to provide, prior
to such transfer, such evidence that the transfer will comply with the Securities Act (including written representations and an
opinion of counsel) as the Company may reasonably request. The Company may impose stop-transfer instructions with respect to any
securities that are to be transferred in contravention of this Agreement.

 

4.4Legend.
Each Investor agrees that all certificates or other instruments representing Purchased Securities will bear a legend substantially
to the following effect:

 

“THE SECURITIES REPRESENTED BY
THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER
SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. THIS INSTRUMENT
IS ISSUED PURSUANT TO AND SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF THE SECURITIES PURCHASE AGREEMENT, DATED
SEPTEMBER 23, 2013, AS AMENDED FROM TIME TO TIME, AMONG THE ISSUER OF THESE SECURITIES AND THE INVESTORS REFERRED TO THEREIN, A
COPY OF WHICH IS ON FILE WITH THE ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED
EXCEPT IN COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.”

 

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In the event that ii) any Purchased
Securities become registered under the Securities Act or iii) Purchased Securities are eligible to be transferred without restriction
in accordance with Rule 144 under the Securities Act, the Company shall issue new certificates or other instruments representing
such Purchased Securities, which shall not contain such portion of the above legend that is no longer applicable; provided
that the Investors surrender to the Company the previously issued certificates or other instruments.

 

4.5Certain
Notifications Until Closing. From the date of this Agreement until the Closing, each party shall promptly notify the other
parties of iv) any fact, event or circumstance of which it is aware and which would be reasonably likely to cause any representation
or warranty of such party contained in this Agreement to be untrue or inaccurate in any material respect or to cause any covenant
or agreement of such party contained in this Agreement not to be complied with or satisfied in any material respect and v) any
fact, circumstance, event, change, occurrence, condition or development of which it is aware and which, individually or in the
aggregate, constitutes a Material Adverse Effect or an Investor Material Adverse Effect, as the case may be; provided, however,
that delivery of any notice pursuant to this Section 4.5 shall not limit or affect any rights of or remedies available to
the other parties.

 

4.6Conduct
of Business.

 

(a)Except as set
forth in Schedule 4.6 or as otherwise required to perform its obligations under the Transaction Documents or any other agreement
contemplated herein, or as otherwise agreed to in writing by the Investors, from the date hereof to the Closing Date, the Company
shall, and shall cause each of its Subsidiaries to (1) conduct its business only in the ordinary course and consistent with
past practice; (2) use its reasonable best efforts to preserve and maintain its relationships with its customers, suppliers,
clients, advertisers, distributors, agents, officers and employees and other persons with which it has significant business dealings;
(3) use its reasonable best efforts to maintain all of the material assets and properties it owns or uses in the ordinary
course of business consistent with past practice; (4) use its reasonable best efforts to preserve the goodwill and ongoing
operations of its business; (5) maintain its books and records in the usual, regular and ordinary manner, on a basis consistent
with past practice; (6) perform and comply in all material respects with its existing contractual arrangements; (7) maintain
insurance in full force and effect with respect to its business with responsible companies, comparable in amount, scope and coverage
to that in effect on the date of this Agreement; and (8) comply in all material respects with applicable laws.

 

(b)Except as set
forth in Schedule 4.6 or as expressly contemplated by the Transaction Documents or any other agreement contemplated herein,
between the date hereof and the Closing Date, without the prior written consent of the Investors, the Company shall not, and shall
cause each of its Subsidiaries not to, take any of the following actions:

 

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(i)change its articles
or certificate of incorporation or bylaws or other organizational documents (including by amendment, waiver, merger or otherwise);

 

(ii)reclassify any
capital stock of the Company or its Subsidiaries;

 

(iii)increase the
authorized number of shares of, authorize the issuance of, or issue any shares of Preferred Stock or Common Stock, other than in
connection with the Offering and the issuance pursuant to any outstanding options, warrants or equity incentive plans;

 

(iv)accelerate the
vesting of any shares of Common Stock subject to vesting;

 

(v)except as contemplated
in the February Purchase Agreement, pay any dividends or make any distributions on any shares of Common Stock or any other capital
stock of the Company or repurchase or redeem any Common Stock or any other capital stock of the Company; or

 

(vi)agree to take
any of the actions restricted by this Section 4.6(b).

 

4.7Financial
Statements and Other Reports. The Investors shall have the reasonable right to consult from time to time with the Officers
and the supervisors or independent accountants of the Company and its Subsidiaries at their respective places of business regarding
operating and financial matters of the Company and its Subsidiaries and to visit and inspect any of the properties, assets, books
and records, agreements or information of the Company and its Subsidiaries, so long as the exercise of such rights does not materially
interfere with the operations or business of the Company. The Company shall deliver to the Investors:

 

(a)within 90 days
after the end of each fiscal year of the Company, (9) an audited, consolidated balance sheet of the Company and its Subsidiaries
as of the end of such fiscal year, (10) an audited, consolidated income statement of the Company and its Subsidiaries for
such fiscal year and (11) an audited, consolidated statement of cash flows of the Company and its Subsidiaries for such fiscal
year;

 

(b)within 45 days
after the end of each of the first three quarters of each fiscal year of the Company, (12) an unaudited, consolidated balance
sheet of the Company and its Subsidiaries as of the end of such fiscal quarter, (13) an unaudited, consolidated income statement
of the Company and its Subsidiaries for such fiscal quarter and (14) an unaudited, consolidated statement of cash flows of
the Company and its Subsidiaries for such fiscal quarter;

 

(c)(i) monthly
verbal financial, construction and operating updates with respect to the Company and its Subsidiaries, together with reasonably
detailed supporting documentation, and (ii) monthly written financial, construction and operating reports with respect to the Company
and its Subsidiaries;

 

    	15

    	 

    

 

(d)promptly upon
delivery to or receipt by the Company or any of its Subsidiaries, any operating report or notice delivered to or received from
any lender to the Company or any of its Subsidiaries or any holder of equity securities in the Company or any of its Subsidiaries;

 

(e)no more than
30 days subsequent to the beginning of any fiscal year of the Company, a reasonably detailed annual budget for the Company and
its Subsidiaries;

 

(f)promptly upon
delivery to or receipt by the Company or any of its Subsidiaries, any notice of default under any agreement or instrument evidencing
indebtedness of the Company or any of its Subsidiaries for borrowed money;

 

(g)prompt notice
of any event or circumstance that constitutes a Material Adverse Effect;

 

(h)prompt notice
of significant events with respect to the Company or any of its Subsidiaries (including litigation); and

 

(i)as soon as reasonably
practicable upon receipt of any such request, any such other report or information (in any form, electronic or otherwise) as an
Investor may reasonably request.

 

Financial statements
and other reports required to be delivered pursuant to this Section 4.7 filed by the Company with the SEC and available
on EDGAR (or such other free, publicly-accessible internet database that may be established and maintained by the SEC as a substitute
for or successor to EDGAR) shall be deemed to have been delivered to the Investors on the date on which the Company posts such
documents to EDGAR (or such other free, publicly-accessible internet database that may be established and maintained by the SEC
as a substitute for or successor to EDGAR).

 

4.8Survival;
Indemnification.

 

(a)Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing; provided,
however, that no action for a breach of the representations and warranties contained herein or for a breach or violation
of a covenant or agreement set forth in the Transaction Documents that was required to be performed prior to or at the Closing,
shall be brought more than 10 days after the Company’s Annual Report on Form 10-K for the year ending December 31, 2013 is
filed with the SEC, except for claims arising out of the representations and warranties contained in Section 3.1(b) (Capitalization),
Section 3.1(c) (Common Stock), and Section 3.1(d) (Authorization, Enforceability) (collectively, the “Specified
Representations”), which shall survive indefinitely after the Closing.

 

(b)Indemnification
by the Company. From and after the Closing, the Company shall indemnify and hold harmless the Investors and their respective
Affiliates and their respective directors, officers, employees and agents (collectively, the “Investor Indemnified Parties”)
from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorney fees and disbursements
and other expenses reasonably incurred in connection with investigating, preparing or defending any action, claim or proceeding,
pending or threatened and the costs of enforcement thereof) (collectively, “Losses”) asserted against or incurred
by such Investor Indemnified Party to the extent arising out of or in connection with (15) any breach of the representations
or warranties of the Company set forth in this Agreement or (16) any breach or violation of the covenants or agreements of
the Company set forth in this Agreement.

 

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(c)Indemnification
by the Investors. From and after the Closing, each of the Investors shall, severally but not jointly, indemnify and hold the
Company and its Affiliates and their respective directors, officers, employees and agents (collectively, the “Company
Indemnified Parties”) harmless from and against all Losses asserted against or incurred by such Company Indemnified Party
to the extent arising out of or in connection with (17) any breach of the representations or warranties of such Investor set
forth in this Agreement or (18) any breach or violation of the covenants or agreements of such Investor set forth in this
Agreement.

 

(d)Indemnification
Limits. The Investor Indemnified Parties shall not be entitled to recover any Losses pursuant to Section 4.8(b) (19) unless
and until the Investor Indemnified Parties’ aggregate claims therefor exceed $500,000, at which time the Investor Indemnified
Parties shall be entitled to recover Losses only to the extent that the aggregate amount of Investor Indemnified Parties’
indemnifiable Losses exceeds such amount (the “Deductible”); provided, however, that no event,
claim or item of Loss will constitute a Loss and indemnification will not be available with respect to such event, claim or item
of Loss (nor will any such event, claim or item of Loss be counted towards the Deductible) unless such event, claim or item of
Loss, together with all related events, claims or items of Loss, results in a Loss of $50,000 or more, in which case the Investor
Indemnified Parties will be entitled to indemnification for the full amount of Losses related to such event, claim or item of Loss
subject to the Deductible and the other limitations set forth herein (and such Losses will be counted towards the Deductible);
or (20) for an aggregate amount in excess of the aggregate Purchase Price; provided, however, that claims for
breach of any of the Specified Representations shall not be subject to the foregoing limitations and shall not be included in the
determination of whether a limitation has been reached. In addition, the Losses incurred by any Investor shall be determined on
the basis of the number of Purchased Securities purchased by such Investor (or such Investor’s Affiliate, as applicable)
hereunder and not on the basis of any other shares of Common Stock beneficially owned by such Investor, whether acquired prior
to or after the consummation of the Transactions.

 

(e)Conduct of
Indemnification Proceedings. Promptly after receipt by any person (the “Indemnified Person”) of notice of
any demand, claim or circumstances of any kind which would or might give rise to a claim or the commencement of any action, proceeding
or investigation (in each case, a “Claim”) in respect of which indemnity may be sought pursuant to Section
4.8(b) or Section 4.8(c), such Indemnified Person shall promptly notify the party or parties required to provide such
indemnification (the “Indemnifier”) in writing and the Indemnifier shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to such Indemnified Person, and shall assume the payment of all fees and expenses;
provided, however, that the failure of any Indemnified Person so to notify the Indemnifier shall not relieve the Indemnifier
of its obligations hereunder except to the extent that it shall be finally determined by a court of competent jurisdiction that
such failure to notify shall have materially prejudiced the Indemnifier. In any such proceeding, any Indemnified Person shall have
the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person
unless: (21) the Indemnifier and the Indemnified Person shall have mutually agreed to the retention of such counsel; or (22) in
the reasonable judgment of counsel to such Indemnified Person representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. The Indemnifier shall not be liable for any settlement of any proceeding
effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent, the Indemnifier
shall indemnify and hold harmless such Indemnified Person from and against any Loss (to the extent stated above) by reason of such
settlement. Without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld (provided
that the Indemnified Person shall have the absolute right in its sole discretion to withhold consent from any settlement of any
pending or threatened proceeding if such settlement does not include an unconditional release of such Indemnified Person from any
liability arising out of such proceeding), the Indemnifier shall not effect any settlement of any pending or threatened proceeding
in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party. The parties shall cooperate fully with each other in connection with the defense of any Claim.

 

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(f)Insurance.
Any Indemnifier shall be subrogated to the rights of any Indemnified Person in respect of any insurance relating to Losses to the
extent of any indemnification payments made under this Agreement, and such Indemnified Person shall provide all reasonably requested
assistance to such Indemnifier in respect of such subrogation.

 

(g)No Duplication.
Any liability for indemnification under this Agreement shall be determined without duplication of recovery by reason of the state
of facts giving rise to such liability constituting a breach or violation of more than one representation, warranty, covenant or
agreement.

 

(h)Sole Remedy.
If the Closing occurs, the parties agree that the sole and exclusive remedy of any party to this Agreement or any Investor Indemnified
Parties, the events giving rise to this Agreement and the transactions provided for in this Agreement (excluding, for the avoidance
of doubt, the transactions provided for in the Registration Rights Amendment), shall be limited to the indemnification provisions
set forth in this Section 4.8 and, in furtherance of the foregoing, each of the parties, on behalf of itself and its Affiliates,
waives and releases the other parties to this Agreement (and such other parties’ Affiliates) from, to the fullest extent
permitted under any applicable law, any and all rights, claims and causes of action it or its Affiliates may have against the other
parties to this Agreement in connection with the events giving rise to this Agreement and the transactions provided for in this
Agreement (excluding, for the avoidance of doubt, the transactions provided for in the Registration Rights Amendment), except pursuant
to the indemnification provisions set forth in this Section 4.8; provided, however, that nothing herein shall
limit in any way any such party’s remedies in respect of fraud, intentional misrepresentation or omission or intentional
misconduct by the other parties in connection herewith or the Transactions.

 

(i)NO SPECIAL
DAMAGES. IN NO EVENT SHALL ANY PARTY BE LIABLE UNDER THIS SECTION 4.8 OR OTHERWISE IN RESPECT OF THIS AGREEMENT (EXCLUDING,
FOR THE AVOIDANCE OF DOUBT, THE REGISTRATION RIGHTS AMENDMENT) FOR EXEMPLARY, SPECIAL, PUNITIVE, INDIRECT, REMOTE OR SPECULATIVE
DAMAGES EXCEPT TO THE EXTENT ANY SUCH PARTY SUFFERS SUCH DAMAGES TO AN UNAFFILIATED THIRD PARTY IN CONNECTION WITH A LOSS, IN WHICH
EVENT SUCH DAMAGES SHALL BE RECOVERABLE.

 

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4.9Business
Opportunities. The Company recognizes that the Investors are private equity funds and that the Investors, their partners or
investors, and professionals affiliated with the Investors (such persons, together with the operating companies described in this
sentence, are collectively referred to as the “White Deer Group” and individually as a “White Deer
Group Member”) invest in, serve on the boards of directors and other governing bodies of, serve as officers of, provide
services to and have minority and controlling ownership interests in, existing and future operating companies. Nothing in this
Agreement or the nature of the existing or any future relationship between any White Deer Group Member, on the one hand, and the
Company or any of its Affiliates, on the other, will prohibit any White Deer Group Member from engaging in any activity or business
opportunity whatsoever for its own account or will require any White Deer Group Member to make any business opportunity available
to the Company, even if such activity or business opportunity competes with or relates to the business conducted by the Company.
Notwithstanding the foregoing, no Investor may (and each Investor shall cause its Affiliates not to) engage in any activity or
business opportunity that is vi) presented to the Investor Director in such person’s capacity as a director of the Company
and with respect to which no other White Deer Group Member (other than the Investor Director) independently receives notice or
otherwise identifies such activity or opportunity or vii) identified by the White Deer Group solely through the disclosure
of information by or on behalf of the Company.

 

4.10Waiver
of Registration Rights. In connection with the Offering, the Investors hereby irrevocably waive any and all (i) registration
rights under Section 2(c) of the Registration Rights Agreement, dated February 19, 2013, as amended, by and among the parties hereto
and (ii) rights to notice with respect to the foregoing.

 

ARTICLE
V

Miscellaneous

 

5.1Termination.
This Agreement may be terminated at any time prior to the Closing:

 

(a)by either the
Investors or the Company if the Closing shall not have occurred by October 31, 2013; provided, however, that the right to
terminate this Agreement under this Section 5.1(a) shall not be available to any party whose breach of any representation
or warranty or failure to perform any obligation under this Agreement shall have caused or resulted in the failure of the Closing
to occur on or prior to such date;

 

(b)by either the
Investors or the Company in the event that any Governmental Entity shall have issued an order, decree or ruling or taken any other
action restraining, enjoining or otherwise prohibiting the Transactions and such order, decree, ruling or other action shall have
become final and nonappealable; or

 

(c)by the mutual
written consent of the Investors and the Company.

 

5.2Effect
of Termination. In the event of termination of this Agreement as provided in Section 5.1, this Agreement shall forthwith
become void (except for the provisions of this Article V and of the Confidentiality Agreement, which shall continue in full force
and effect) and there shall be no liability on the part of any party hereto, except that nothing herein shall relieve any party
from liability for any willful, material breach of this Agreement. “Confidentiality Agreement” means the letter
agreement, dated December 12, 2012, by and between the Company and White Deer Energy L.P.

 

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5.3Amendment.
No amendment of any provision of this Agreement shall be effective unless made in writing and signed by a duly authorized representative
of each party.

 

5.4Waivers.
The conditions to each party’s obligation to consummate the Purchase are for the sole benefit of such party and may be waived
by such party in whole or in part to the extent permitted by applicable law. Any failure by any party to comply with any of its
obligations, agreements or covenants herein may be waived by the party to whom such compliance is owed. No waiver will be effective
unless it is in a writing signed by a duly authorized officer or representative of the waiving party that makes express reference
to the provision or provisions subject to such waiver. A waiver of any breach or failure to enforce any of the terms or conditions
of this Agreement shall not in any way affect, limit or waive a party’s rights hereunder at any time to enforce strict compliance
thereafter with every term or condition of this Agreement.

 

5.5Counterparts
and Facsimile. For the convenience of the parties hereto, this Agreement may be executed in any number of separate counterparts,
each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement.
Executed signature pages to this Agreement may be delivered by PDF (Portable Document Format) or facsimile and such PDFs or facsimiles
will be deemed as sufficient as if actual signature pages had been delivered.

 

5.6Governing
Law; Submission to Jurisdiction, Etc. This Agreement shall be governed by and construed in accordance with the laws of the
State of New York applicable to contracts made and to be performed entirely within such State, without giving effect to any choice
of law or conflict of law rules or provisions that would cause the application of the laws of any other jurisdiction. With respect
to any lawsuit or claim arising out of or in connection with any Transaction Document, each of the parties hereto agrees viii) to
submit to the personal jurisdiction of the State or Federal courts in the Borough of Manhattan, the City of New York, ix) that
jurisdiction and venue shall lie in the State or Federal courts in the State of New York, and x) that notice may be served
upon such party at the address and in the manner set forth for such party in Section 5.8. To
the extent permitted by applicable law, each of the parties hereto hereby unconditionally waives trial by jury in any legal action
or proceeding relating to the Transaction Documents or the transactions contemplated hereby or thereby.

 

5.7Specific
Performance. The parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that each of the parties
hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the
terms and provisions of this Agreement, without the necessity of proving the inadequacy of money damages as a remedy, in addition
to any other remedy at law or in equity.

 

    	20

    	 

    

 

5.8Notices.
Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will
be deemed to have been duly given (a) on the date of delivery if delivered personally or by facsimile (transmission confirmed),
or (b) on the second business day following the date of dispatch if delivered by a recognized next day courier service. All notices
hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the
party to receive such notice.

 

(a)If to the Investors,
to:

 

c/o White Deer Energy L.P.

667 Madison Ave., 4th Floor

New York, New York 10065

Attention: Thomas J. Edelman

Telephone: (212) 371-1117

Facsimile: (212) 888-6877

 

and

 

c/o White Deer Energy L.P.

700 Louisiana, Suite 4770

Houston, Texas 77002

Attention: James E. Saxton

Telephone: (713) 581-6906

Facsimile: (713) 581-6901

 

and

 

Vinson & Elkins LLP

666 Fifth Avenue, 26th Floor

New York, New York 10103

Attention: Robert Seber

Telephone: (212) 237-0132

 

(b)If to the Company,
to:

 

Emerald Oil, Inc.

1600 Broadway, Suite 1360

Denver, Colorado 80202

Attention: McAndrew Rudisill

Telephone: (303) 323-0008

Facsimile: (303) 323-0008

 

and

 

Mayer Brown LLP

700 Louisiana, Suite 3400

Houston, Texas 77002

Attention: Kirk Tucker

Telephone: (713) 238-2500

Facsimile: (713) 238-4603

 

    	21

    	 

    

 

5.9Publicity.
Except as set forth below, no public release or announcement concerning the Transactions shall be issued by the Company, its Subsidiaries
or the Investors without the prior consent of the Company (in the case of a release or announcement by the Investors) or the Investors
(in the case of a release or announcement by the Company or its Subsidiaries) (which consents shall not be unreasonably withheld,
conditioned or delayed), except as such release or announcement may be required by law or the applicable rules or regulations of
any securities exchange or securities market, in which case the affected party shall allow the other parties hereto, to the extent
reasonably practicable in the circumstances, reasonable time to comment on such release or announcement in advance of such issuance.
The Company and the Investors each acknowledge and agree that the prospectus supplement for the Offering will be filed with the
SEC on or about September 23, 2013, and the prospectus supplement contains a summary of the terms of the Transaction Documents.
The Company shall by 8:30 a.m. (New York City time) on the fourth trading day immediately following the date of this Agreement
file a Current Report on Form 8-K disclosing the execution and delivery of this Agreement as well as copies of the Transaction
Documents, and the Company may issue a press release disclosing the execution and delivery of the Transaction Documents. In addition,
the Company will make such other filings and notices in the manner and time required by applicable law or the SEC or NYSE MKT.

 

5.10Entire
Agreement, Etc. This Agreement (including the Annexes and Schedules) and the other Transaction Documents constitute the entire
agreement, and supersede all other prior agreements (other than the February Purchase Agreement and the agreements executed in
connection therewith), understandings, representations and warranties, both written and oral, among the parties hereto, with respect
to the subject matter hereof. For the avoidance of doubt, each of the parties hereto hereby acknowledges that the February Purchase
Agreement shall remain in full force and effect in accordance with its terms except as expressly modified herein.

 

5.11Assignment.
Neither this Agreement nor any right, remedy, obligation nor liability arising hereunder or by reason hereof shall be assignable
by any party hereto without the prior written consent of the other parties, and any attempt to assign any right, remedy, obligation
or liability hereunder without such consent shall be void. This Section 5.11 applies only to an assignment of this Agreement
and the rights, remedies, obligations and liabilities arising hereunder and does not apply to a sale, transfer or assignment of
Purchased Securities, which is addressed in Section 4.3.

 

5.12Severability.
If any provision of this Agreement or the Registration Rights Amendment, or the application thereof to any person or circumstance,
is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the
application of such provision to persons or circumstances other than those as to which it has been held invalid or unenforceable,
will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic
or legal substance of the Transactions is not affected in any manner materially adverse to any party. Upon such determination,
the parties hereto shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect
the original intent of the parties hereto.

 

    	22

    	 

    

 

5.13No
Third Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person
or entity other than the Company and the Investors (and any persons to whom an Investor has transferred its rights hereunder in
accordance with this Agreement), any benefits, rights, or remedies.

 

5.14Interpretation.
When a reference is made in this Agreement to “Recitals,” “Articles,” “Sections,” “Annexes”
or “Schedules,” such reference shall be to a Recital, Article or Section of, or Annex or Schedule to, this Agreement
unless otherwise indicated. The terms defined in the singular have a comparable meaning when used in the plural, and vice versa.
References to “herein”, “hereof”, “hereunder” and the like refer to this Agreement as a whole
and not to any particular section or provision, unless the context requires otherwise. The table of contents and headings contained
in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed followed by the words “without
limitation.” The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In connection
with the interpretation or enforcement of this Agreement, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement. Time is of the essence for each and every provision of this Agreement. All references to “$”
or “dollars” mean the lawful currency of the United States of America. Except as expressly stated in this Agreement,
all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or
replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and
to any section of any statute, rule or regulation include any successor to the section. References to a “business day”
shall mean any day except a Saturday, Sunday or other day on which (a) NYSE MKT is not open for trading or (b) commercial
banks in the State of New York or the State of Montana are authorized or required by law or executive order to close.

 

[Signature Page Follows.]

 

    	23

    	 

    

 

IN WITNESS WHEREOF,
this Agreement has been executed by the parties hereto as of the date first herein above written.

 

 

 

	 	Emerald Oil, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	 	/s/ McAndrew Rudisill
	 	Name:	McAndrew Rudisill
	 	Title:	Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	WDE Emerald Holdings LLC
	 	 	 	 
	 	 	 	 
	 	By:	 	/s/ Thomas J. Edelman
	 	Name:	Thomas J. Edelman
	 	Title:	President

  

	 	 	 
	 	 	 
	 	White Deer Energy FI L.P.
	 	 	 
	 	By:	Edelman & Guill Energy L.P., its general
	 	 	partner
	 	 	 
	 	By:	Edelman & Guill Energy Ltd., its general
	 	 	partner

 

	 	 	 	 
	 	By:	 	/s/ Thomas J. Edelman
	 	Name:	Thomas J. Edelman
	 	Title:	Director

  

    	24

    	 

    

 

Annex
A – Form of Amendment No. 2 to the Restated Registration Rights Agreement

 

 

AMENDMENT NO. 2 TO THE

REGISTRATION RIGHTS AGREEMENT

 

This Amendment No.
2, dated September 23, 2013 (this “Amendment”), to the Registration Rights Agreement dated as of February 19,
2013 (the “Agreement”), by and among Emerald Oil, Inc., a Montana corporation (together with any successor entity
thereto, the “Corporation”), WDE Emerald Holdings LLC, a Delaware limited liability company (“WD Investor
I”), and White Deer Energy FI L.P., a Cayman Islands exempted limited partnership (together with WD Investor I, the “Investors”
and each, an “Investor”), is made by and among the Corporation and the Investors in accordance with Section
8(b) of the Agreement.

 

WHEREAS, pursuant
to the Securities Purchase Agreement, dated as September 23, 2013, by and among the Corporation and the Investors (the “September
Purchase Agreement”) the Corporation issued and sold to the Investors and the Investors purchased from the Corporation
[ ] shares of Common Stock; and

 

WHEREAS, to
induce the Investors to enter into the September Purchase Agreement and to consummate the transactions contemplated therein, the
Corporation agreed to provide the registration and other rights set forth in this Amendment for the benefit of the Investors.

 

NOW, THEREFORE,
in consideration of the mutual terms, conditions and agreements contained herein, and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby
agree as follows:

 

		1.	Defined Terms. Except as otherwise defined herein, capitalized terms used herein will have
the definitions ascribed to them in the Agreement.

 

		2.	Registrable Securities Definition. The definition of “Registrable Securities”
in Section 1 of the Agreement is hereby amended to add the following language after the first word of such definition: “the
shares of Common Stock issued to the Investors pursuant to the May Purchase Agreement and the September Purchase Agreement,”.

 

		3.	September Purchase Agreement Definition. The definition of “September Purchase Agreement”
is hereby added to Section 1 of the Agreement after the definition of “Liquidated Damages Amount” to read as follows:

 

“September
Purchase Agreement” means the Securities Purchase Agreement, dated as September 23, 2013, by and among the Corporation
and the Investors.

 

		4.	Miscellaneous. Except as expressly amended hereby, the Agreement shall remain unchanged,
and the Agreement, as so amended, shall continue in full force and effect in accordance with its terms. For the avoidance of doubt,
the provisions of Section 8 of the Agreement shall apply to this Amendment mutatis mutandis. This Amendment may be executed
by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Executed signature pages to this Amendment may be delivered by PDF
(Portable Document Format) or facsimile and such PDFs or facsimiles will be deemed as sufficient as if actual signature pages had
been delivered.

 

    	25

    	 

    

  

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first above written.

 

 

 

	 	Emerald Oil, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	Name:	McAndrew Rudisill
	 	Title:	President
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	WDE Emerald Holdings LLC
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	Thomas J. Edelman
	 	Title:	President

 

	 	 	 
	 	 	 
	 	White Deer Energy FI L.P.
	 	 	 
	 	By:	Edelman & Guill Energy L.P., its general partner
	 	 	 
	 	By:	Edelman & Guill Energy Ltd., its general partner
	 	 	 

 

	 	 	 	 
	 	By:	 	 
	 	Name:	Thomas J. Edelman
	 	Title:	Director

  

    	26

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