Document:

Exhibit 10.2

 

Execution Version

 

 

REGISTRATION RIGHTS AGREEMENT

 

BY AND AMONG

 

LILIS ENERGY, INC.

 

AND

 

THE PURCHASERS

  

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE I DEFINITIONS	1
	Section 1.01   Definitions	1
	Section 1.02   Registrable Securities	2
	 	 
	ARTICLE II REGISTRATION RIGHTS	2
	Section 2.01   Mandatory Registration	2
	Section 2.02   Blackout and Delay Rights	3
	Section 2.03   Sale Procedures	4
	Section 2.04   Cooperation by Holders	7
	Section 2.05   Expenses	7
	Section 2.06   Indemnification	8
	Section 2.07   Rule 144 Reporting	9
	Section 2.08   Transfer or Assignment of Registration Rights	10
	 	 
	ARTICLE III MISCELLANEOUS	10
	Section 3.01   Communications	10
	Section 3.02   Successor and Assigns	11
	Section 3.03   Assignment of Rights	11
	Section 3.04   Recapitalization, Exchanges, Etc.	11
	Section 3.05   Aggregation of Registrable Securities	11
	Section 3.06   Specific Performance	12
	Section 3.07   Counterparts	12
	Section 3.08   Headings	12
	Section 3.09   Governing Law	12
	Section 3.10   Severability of Provisions	13
	Section 3.11   Entire Agreement	13
	Section 3.12   Amendment	13
	Section 3.13   No Presumption	13
	Section 3.14   Obligations Limited to Parties to Agreement	13
	Section 3.15   Independent Nature of Purchaser’s Obligations	14
	Section 3.16   Interpretation	14

 

    i 

     

    

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of February 28, 2017, by and among Lilis Energy, Inc.,
a Nevada corporation (the “Company”), and each of the Persons set forth on Schedule A to the
Securities Subscription Agreement (as defined below) (each, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, this Agreement
is made in connection with the closing (the “Closing”) of the issuance and sale of the Securities pursuant to
the Securities Subscription Agreement, dated as of February 28, 2017, by and among the Company and the Purchasers (the “Securities
Subscription Agreement”); and

 

WHEREAS, the Company
has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Purchasers pursuant
to the Securities Subscription Agreement.

 

NOW THEREFORE, in consideration
of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by each party hereto, the parties hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section 1.01       
Definitions.

 

Capitalized terms used
herein without definition shall have the meanings given to them in the Securities Subscription Agreement. The terms set forth
below are used herein as so defined:

 

“Agreement”
has the meaning specified therefor in the introductory paragraph of this Agreement.

 

“Business
Day” means any day other than a Saturday, Sunday, any federal holiday or any other day on which banking institutions
in the State of New York are authorized or required to be closed by law or governmental action.

 

“Company”
has the meaning specified therefor in the introductory paragraph of this Agreement.

 

“Effectiveness
Period” has the meaning specified therefor in Section 2.01 of this Agreement.

 

“Holder”
means the record holder of any Registrable Securities.

 

“Mandatory
Shelf Filing Date” has the meaning specified therefore in Section 2.01 of this Agreement.

 

“Purchaser”
and “Purchasers” have the meanings specified therefor in the introductory paragraph of this Agreement.

 

     1

     

    

 

“Registrable
Securities” means (a) the Purchased Shares and the Warrant Shares to be acquired by the Purchasers pursuant to the
Securities Subscription Agreement and includes any type of interest issued to the Holder as a result of Section 3.04 and
(b) any additional shares of Common Stock paid, issued or distributed in respect of such shares by way of a stock dividend,
stock split or distribution, or in connection with a combination of shares, and any security into which such Common Stock will
have been converted or exchanged in connection with a recapitalization, reorganization, reclassification, merger, consolidation,
exchange, distribution or otherwise.

 

“Registration
Expenses” has the meaning specified therefor in Section 2.05(b) of this Agreement.

 

“Registration
Statement” has the meaning specified therefor in Section 2.01 of this Agreement.

 

“Securities
Subscription Agreement” has the meaning specified therefor in the recitals of this Agreement.

 

“Selling Holder”
means a Holder who is selling Registrable Securities pursuant to a registration statement.

 

Section 1.02       
Registrable Securities.

 

Any Registrable Security
will cease to be a Registrable Security (a) when a registration statement covering such Registrable Security becomes or has been
declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective registration
statement; (b) when such Registrable Security has been disposed of pursuant to any section of Rule 144 (or any similar provision
then in effect) under the Securities Act; (c) when such Registrable Security is held by the Company or one of its subsidiaries;
or (d) when such Registrable Security has been sold or disposed of in a private transaction in which the transferor’s
rights under this Agreement are not assigned to the transferee of such securities pursuant to hereof or (e) when such Registrable
Security becomes eligible for resale without restriction and without the need for current public information pursuant to any section
of Rule 144 (or any similar provision then in effect) under the Securities Act, assuming the Holder of such Registrable Security
is not an affiliate (as defined in Rule 144(a)(1)) of the Company.

 

ARTICLE
II

REGISTRATION RIGHTS

 

Section 2.01       
Mandatory Registration.

 

The Company shall prepare
and use its reasonable best efforts to file no later than April 1, 2017 with the Commission (such filing date, the “Mandatory
Shelf Filing Date”) a registration statement with the Commission providing for registration and resale, on a continuous
or delayed basis pursuant to Rule 415, of all of the Registrable Securities then outstanding from time to time; such registration
statement shall be on Form S-1 (or any equivalent or successor form) under the Securities Act (or to the extent the Company is
eligible to use Form S-3 or any equivalent or successor form or forms, on Form S-3 or any comparable or successor form); provided,
however, that if the Company has filed the registration statement on Form S-1 and subsequently becomes eligible to use Form S-3
or any equivalent or successor form or forms, the Company may elect, in its sole discretion, to (i) file a post-effective amendment
to the registration statement converting such registration statement on Form S-1 to a registration statement on Form S-3 or any
equivalent or successor form or forms or (ii) withdraw the registration statement on Form S-1 and file a registration statement
on Form S-3 or any equivalent or successor form or forms, (the registration statement on such form, as amended or supplemented,
the “Registration Statement”). The Company shall use its reasonable best efforts to cause the Registration Statement
to be declared effective under the Securities Act by the Commission as soon as reasonably practicable after the Mandatory Shelf
Filing Date. The Company shall use its reasonable best efforts to keep the Registration Statement continuously effective under
the Securities Act until the earlier of (A) the date when all of the Registrable Securities covered by such Registration Statement
have been sold and (B) the date on which all of the Purchased Shares and the Warrant Shares cease to be Registrable Securities
hereunder (such period, the “Effectiveness Period”). The Registration Statement when effective (including the
documents incorporated therein by reference) will comply as to form in all material respects with all applicable requirements of
the Securities Act and the Exchange Act and will not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained
in such Registration Statement, in the light of the circumstances under which a statement is made). As soon as practicable
following the date that the Registration Statement becomes effective, but in any event within two (2) Business Days of such date,
the Company shall provide the Holders with written notice of the effectiveness of the Registration Statement. For so long as any
Registrable Securities covered by the Registration Statement remain unsold, the Company will file any supplements to the prospectus
contained therein or post-effective amendments required to be filed by applicable law in order to incorporate into such prospectus
any Current Reports on Form 8-K necessary or required to be filed by applicable law, any Quarterly Reports on Form 10-Q or any
Annual Reports on Form 10-K filed by the Company with the Commission, or any other information necessary so that (i) the Registration
Statement shall not include any untrue statement of material fact or omit to state any material fact necessary in order to make
the statements therein not misleading, and (ii) the Company complies with its obligations under Item 512(a)(1) of Regulation S-K.

 

     2

     

    

 

Section 2.02       
Blackout and Delay Rights.

 

Notwithstanding anything
to the contrary contained herein:

 

(a)               
the Company shall not be required to file a Registration Statement (or any amendment thereto) or, if a Registration Statement
has been filed but not declared effective by the Commission, request effectiveness of such Registration Statement, for a period
of up to sixty-five (65) days, if (A) the Company determines that a postponement is in the best interest of the Company and
its stockholders generally due to a pending transaction involving the Company (including a pending securities offering by the Company,
or any proposed financing, acquisition, merger, tender offer, business combination, corporate reorganization, consolidation or
other significant transaction involving the Company), (B) the Company determines, on the advice of counsel, that such registration
would render the Company unable to comply with applicable securities laws, or (C) the Company determines such registration
would require disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; provided, however,
that (i) in no event shall any such period exceed an aggregate of one-hundred thirty-five (135) days in any 365-day period and
(ii) this right, together with the right to suspend use of a Registration Statement pursuant to Section 2.2(b), may not be exercised
more than two times in any 365-day period; and

 

     3

     

    

 

(b)              
the Company may, upon written notice to any Selling Holder whose Registrable Securities are included in the Registration
Statement or other registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any prospectus
which is a part of the Registration Statement or other registration statement (in which event the Selling Holder shall discontinue
sales of the Registrable Securities pursuant to the Registration Statement or other registration statement contemplated by this
Agreement but may settle any previously made sales of Registrable Securities) if (i) the Company determines that it would be required
to make disclosure of material information in the Registration Statement that the Company has a bona fide business purpose
for preserving as confidential or (ii) the Company has experienced some other material non-public event the disclosure of which
at such time, in the good faith judgment of the Company, would adversely affect the Company; provided, however, that (i) in no
event shall the Selling Holders be suspended from selling Registrable Securities pursuant to the Registration Statement or other
registration statement for a period that exceeds an aggregate of sixty (60) days in any 180-day period or one-hundred thirty-five
(135) days in any 365-day period and (ii) this right, together with the right to delay filing or effectiveness of a Shelf Registration
Statement pursuant to Section 2.2(a), may not be exercised more than two times in any 365-day period. Upon disclosure of such
information or the termination of the condition described above, the Company shall provide prompt notice to the Selling Holders
whose Registrable Securities are included in the Registration Statement, and shall promptly terminate any suspension of sales it
has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated
in this Agreement.

 

Section 2.03       
Sale Procedures.

 

In connection with
its obligations under this Article II, the Company will, as expeditiously as possible:

 

(a)               
prepare and file with the Commission such amendments and supplements to the Registration Statement and the prospectus used
in connection therewith as may be necessary to keep the Registration Statement effective for the Effectiveness Period and as may
be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities
covered by the Registration Statement;

 

(b)              
make available to each Selling Holder (i) as far in advance as reasonably practicable before filing the Registration Statement
or any other registration statement contemplated by this Agreement or any supplement or amendment thereto, upon request, copies
of reasonably complete drafts of all such documents proposed to be filed (including exhibits and each document incorporated by
reference therein to the extent then required by the rules and regulations of the Commission), and provide each such Selling Holder
the opportunity to object to any information pertaining to such Selling Holder and its plan of distribution that is contained therein
and make the corrections reasonably requested by such Selling Holder with respect to such information prior to filing the Registration
Statement or such other registration statement or supplement or amendment thereto, and (ii) such number of copies of the Registration
Statement or such other registration statement and the prospectus included therein and any supplements and amendments thereto as
such Selling Holder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities
covered by such Registration Statement or other registration statement. Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex A (a “Selling Stockholder Questionnaire”)
on a date that is not less than two (2) Trading Days prior to the Mandatory Shelf Filing Date or by the end of the fourth (4th)
Trading Day following the date on which such Holder receives draft materials in accordance with this Section 2.03(b);

 

     4

     

    

 

(c)               
if applicable, use its reasonable best efforts to register or qualify the Registrable Securities covered by the Registration
Statement or any other registration statement contemplated by this Agreement under the securities or blue sky laws of such jurisdictions
as the Selling Holders shall reasonably request in writing by the time the Registration Statement is declared effective by the
SEC; provided, however, that the Company will not be required to qualify generally to transact business in any jurisdiction
where it is not then required to so qualify, take any action that would subject the Company to any material tax in any such jurisdiction
where it is not then so subject, or to take any action that would subject it to general service of process in any such jurisdiction
where it is not then so subject;

 

(d)              
promptly notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered by any of
them under the Securities Act, of (i) the filing of the Registration Statement or any other registration statement contemplated
by this Agreement or any prospectus or prospectus supplement to be used in connection therewith, or any amendment or supplement
thereto, and, with respect to such Registration Statement or any other registration statement or any post-effective amendment thereto,
when the same has become effective; and (ii) the receipt of any written comments from the Commission with respect to any filing
referred to in clause (i) and any written request by the Commission for amendments or supplements to the Registration
Statement or any other registration statement or any prospectus or prospectus supplement thereto;

 

(e)               
immediately notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of (i) the happening of any event as a result of which the prospectus or prospectus supplement contained in
the Registration Statement or any other registration statement contemplated by this Agreement, as then in effect, includes an untrue
statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements
therein not misleading (in the case of any prospectus contained therein, in the light of the circumstances under which a statement
is made); (ii) the issuance or express threat of issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or any other registration statement contemplated by this Agreement, or the initiation of any proceedings
for that purpose; or (iii) the receipt by the Company of any notification with respect to the suspension of the qualification of
any Registrable Securities for sale under the applicable securities or blue sky laws of any jurisdiction. Following the provision
of such notice, the Company agrees to as promptly as practicable amend or supplement the prospectus or prospectus supplement or
take other appropriate action so that the prospectus or prospectus supplement does not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading
in the light of the circumstances then existing and to take such other commercially reasonable action as is necessary to remove
a stop order, suspension, threat thereof or proceedings related thereto;

 

     5

     

    

 

(f)               
upon request and subject to appropriate confidentiality obligations, furnish to each Selling Holder copies of any and all
transmittal letters or other correspondence with the Commission or any other governmental agency or self-regulatory body or other
body having jurisdiction (including any domestic or foreign securities exchange) relating to the Registration Statement;

 

(g)              
otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission, and make
available to its security holders, as soon as reasonably practicable, an earnings statement, which earnings statement shall satisfy
the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

 

(h)              
cause all such Registrable Securities registered pursuant to this Agreement to be listed on each securities exchange or
nationally recognized quotation system on which similar securities issued by the Company are then listed;

 

(i)                
use its reasonable best efforts to cause the Registrable Securities to be registered with or approved by such other governmental
agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the Selling Holders
to consummate the disposition of such Registrable Securities;

 

(j)                
provide a transfer agent and registrar for all Registrable Securities covered by such registration statement not later than
the effective date of such registration statement;

 

(k)              
if requested by a Selling Holder, (i) incorporate in a prospectus supplement or post-effective amendment such information
as such Selling Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities,
including information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid
therefor and any other terms of the offering of the Registrable Securities to be sold in such offering and (ii) make all required
filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such
prospectus supplement or post-effective amendment;

 

(l)                
with respect to any offering of Registrable Securities, furnish to each Selling Holder, without charge, such number of copies
of the applicable Registration Statement, each amendment and supplement thereto, the prospectus included in such Registration Statement
(including each preliminary prospectus, final prospectus, and any other prospectus (including any prospectus filed under Rule 424,
Rule 430A or Rule 430B promulgated under the Securities Act and any “issuer free writing prospectus” as such term is
defined under Rule 433 promulgated under the Securities Act), all exhibits and other documents filed therewith and such other documents
as such seller or such managing underwriters may reasonably request including in order to facilitate the disposition of the Registrable
Securities owned by such seller, and upon request, a copy of any and all transmittal letters or other correspondence to or received
from, the Commission or any other governmental authority relating to such offer; and

 

     6

     

    

 

(m)            
the Company may require each Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares.

 

The Company will not
name a Holder as an underwriter as defined in Section 2(a)(11) of the Securities Act in any Registration Statement without such
Holder’s consent. If the staff of the Commission requires the Company to name any Holder as an underwriter as defined
in Section 2(a)(11) of the Securities Act, and such Holder does not consent thereto, then such Holder’s Registrable Securities
shall not be included on the Registration Statement and the Company shall have no further obligations hereunder with respect to
Registrable Securities held by such Holder.

 

Each Selling Holder,
upon receipt of notice from the Company of the happening of any event of the kind described in subsection (e) of this
Section 2.03, shall forthwith discontinue offers and sales of the Registrable Securities by means of a prospectus or
prospectus supplement until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated
by subsection (e) of this Section 2.03 or until it is advised in writing by the Company that the use of
the prospectus may be resumed and has received copies of any additional or supplemental filings incorporated by reference in the
prospectus, and, if so directed by the Company, such Selling Holder will deliver to the Company (at the Company’s expense)
all copies in their possession or control, other than permanent file copies then in such Selling Holder’s possession, of
the prospectus covering such Registrable Securities current at the time of receipt of such notice.

 

Section 2.04       
Cooperation by Holders.

 

The Company shall have
no obligation to include Registrable Securities of a Holder in the Registration Statement who has failed to furnish, within five
(5) Business Days of a request by the Company, such information that the Company determines, after consultation with its counsel,
is reasonably required in order for the registration statement or prospectus supplement, as applicable, to comply with the Securities
Act.

 

Section 2.05       
Expenses.

 

(a)               
Expenses. The Company will pay all reasonable Registration Expenses as determined in good faith. In addition, except
as otherwise provided in Section 2.06 hereof, the Company shall not be responsible for legal fees incurred by Holders
in connection with the exercise of such Holders’ rights hereunder.

 

(b)              
Certain Definitions. “Registration Expenses” means all expenses incident to the Company’s
performance under or compliance with this Agreement to effect the registration of Registrable Securities on the Registration Statement
pursuant to Section 2.01, and the disposition of such Registrable Securities, including, without limitation, all registration,
filing, securities exchange listing fees, all registration, filing, qualification and other fees and expenses of complying with
securities or blue sky laws, fees of the Financial Industry Regulatory Authority, fees of transfer agents and registrars, all word
processing, duplicating and printing expenses, any transfer taxes and the fees and disbursements of counsel and independent public
accountants for the Company, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance.

 

     7

     

    

 

Section 2.06       
Indemnification.

 

(a)               
Indemnification by the Company. In the event of any registration of any securities of the Company under the
Securities Act pursuant to this Agreement, the Company will, and hereby does, indemnify and hold harmless the seller of any Registrable
Securities covered by such registration statement, its directors and officers, each other Person who participates in the offering
or sale of such securities and each other Person, if any, who controls such seller, within the meaning of the Securities Act, against
any losses, claims, damages or liabilities, joint or several, to which such seller or any such director or officer or controlling
person may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any registration statement under which such securities were registered under
the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement
thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and the Company will reimburse such seller and each such director, officer, and controlling
person for any legal or any other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, liability, action or proceeding; provided that the Company shall not be liable in any such case to the extent that
any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon
an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, any such preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with information furnished
to the Company in writing or electronically specifically stating that it is for use in the preparation thereof. Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of such seller or any such director,
officer or controlling person and shall survive the transfer of such securities by such seller.

 

(b)              
Indemnification by the Sellers. The Company may require, as a condition to including any Registrable Securities
in any registration statement filed pursuant to Section 2.01 above, that the Company shall have received an undertaking
satisfactory to it from the prospective seller of such securities, to indemnify and hold harmless (in the same manner and to the
same extent as set forth in Section 2.06(a) above) the Company, each director of the Company, each officer of the Company
and each other Person, if any, who controls the Company within the meaning of the Securities Act, with respect to any statement
or alleged statement in or omission or alleged omission from such registration statement, any preliminary prospectus, final prospectus
or summary prospectus contained therein, or any amendment or supplement thereto, if such statement or alleged statement or omission
or alleged omission was made in reliance upon and in conformity with information furnished to the Company in writing or electronically,
by the Holder or reviewed by and expressly approved by such Holder, specifically stating that it is for use in the preparation
of such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement (it being
understood that the Holder has approved Annex A hereto for this purpose). The maximum liability of each seller for any such indemnification
shall not exceed the amount of net proceeds received by such seller from the sale of his/its Registrable Securities pursuant to
the Registration Statement. Such indemnity shall remain in full force and effect, regardless of any investigation made by or on
behalf of the Company or any such director, officer or controlling Person and shall survive the transfer of such securities by
such seller.

 

     8

     

    

 

(c)               
Notices of Claims, etc. Promptly after receipt by an indemnified party of notice of the commencement of any action
or proceeding involving a claim referred to in Section 2.06(a) or (b) above, such indemnified party will,
if a claim in respect thereof is to be made against an indemnifying party, give written notice to the latter of the commencement
of such action; provided that the failure of any indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under Section 2.06(a) or (b) above, except to the extent that the
indemnifying party is actually prejudiced by such failure to give notice. In case any such action is brought against an indemnified
party, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying
parties may exist in respect of such claim, the indemnifying party shall be entitled to participate in and to assume the defense
thereof, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory
to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently
incurred by the latter in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party
shall, without the consent of the indemnified party, consent to entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all
liability in respect to such claim or litigation.

 

(d)              
Other Indemnification. Indemnification similar to that specified in Sections 2.06(a), (b) and
(c) above (with appropriate modifications) shall be given by the Company and each seller of Registrable Securities
with respect to any required registration or other qualification of securities under any Federal or state law or regulation of
any governmental authority other than the Securities Act.

 

(e)               
Indemnification Payments. The indemnification required by this Section 2.06 shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as and when bills are received or expense, loss,
damage or liability is incurred.

 

Section 2.07       
Rule 144 Reporting.

 

With a view to making
available the benefits of certain rules and regulations of the Commission that may permit the sale of the Registrable Securities
to the public without registration, the Company agrees to use its reasonable best efforts to:

 

     9

     

    

 

(a)               
make and keep public information regarding the Company available, as those terms are understood and defined in Rule 144
under the Securities Act, at all times from and after the date hereof;

 

(b)              
file with the Commission in a timely manner all reports and other documents required of the Company under the Securities
Act and the Exchange Act at all times from and after the date hereof; and

 

(c)               
so long as a Holder owns any Registrable Securities, furnish, unless otherwise available via EDGAR, to such Holder forthwith
upon request a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed
as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such Holder to sell
any such securities without registration.

 

Section 2.08       
Transfer or Assignment of Registration Rights.

 

The rights to cause
the Company to register Registrable Securities granted to the Purchasers by the Company under this Article II may
be transferred or assigned by any Purchaser to one or more transferees or assignees of Registrable Securities; provided, however,
that (a) unless the transferee or assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate
of, such Purchaser, the amount of Registrable Securities transferred or assigned to such transferee or assignee shall represent
at least $5 million of Registrable Securities (based on the Unit Price), (b) the Company is given written notice prior to any said
transfer or assignment, stating the name and address of each such transferee or assignee and identifying the securities with respect
to which such registration rights are being transferred or assigned, and (c) each such transferee or assignee assumes in writing
responsibility for its portion of the obligations of such Purchaser under this Agreement.

 

ARTICLE
III

MISCELLANEOUS

 

Section 3.01       
Communications.

 

All notices and other
communications provided for or permitted hereunder shall be made in writing by facsimile, electronic mail, courier service or personal
delivery:

 

		(a)	if to a Purchaser:

 

To the respective address
listed on Schedule B to the Securities Subscription Agreement

 

     10

     

    

 

		(b)	if to a transferee of an Purchaser, to such Holder
at the address provided pursuant to Section 2.08 above; and

 

		(c)	if to the Company:

 

300 E. Sonterra Blvd., Suite
1220

San Antonio, Texas 78258

Attention: General Counsel

Email: AFuchs@lilisenergy.com

 

with a copy to:

 

K&L Gates LLP

1 Park Plaza

Twelfth Floor

Irvine, CA 92614

Attention: Michael A. Hedge

Email: Michael.Hedge@klgates.com

 

All such notices and
communications shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt acknowledged,
if sent via facsimile or sent via Internet electronic mail; and when actually received, if sent by courier service or any other
means.

 

Section 3.02       
Successor and Assigns.

 

This Agreement shall
inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties, including subsequent Holders
of Registrable Securities to the extent permitted herein.

 

Section 3.03       
Assignment of Rights.

 

All or any portion
of the rights and obligations of any Purchaser under this Agreement may be transferred or assigned by such Purchaser only in accordance
with Section 2.08 hereof.

 

Section 3.04       
Recapitalization, Exchanges, Etc. Affecting the Shares.

 

The provisions of this
Agreement shall apply to the full extent set forth herein with respect to any and all shares of the Company or any successor or
assign of the Company (whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange
for or in substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, share splits, recapitalizations,
pro rata distributions of shares and the like occurring after the date of this Agreement.

 

Section 3.05       
Aggregation of Registrable Securities.

 

All Registrable Securities
held or acquired by Persons who are Affiliates of one another shall be aggregated together for the purpose of determining the availability
of any rights and applicability of any obligations under this Agreement.

 

     11

     

    

 

Section 3.06       
Specific Performance.

 

Damages in the event
of breach of this Agreement by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed that
each such Person, in addition to and without limiting any other remedy or right it may have, will have the right to an injunction
or other equitable relief in any court of competent jurisdiction, enjoining any such breach, and enforcing specifically the terms
and provisions hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground of lack of jurisdiction
or competence of the court to grant such an injunction or other equitable relief. The existence of this right will not preclude
any such Person from pursuing any other rights and remedies at law or in equity that such Person may have.

 

Section 3.07       
Counterparts.

 

This Agreement may
be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute
but one and the same Agreement.

 

Section 3.08       
Headings.

 

The headings in this
Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

Section 3.09       
Governing Law.

 

THIS AGREEMENT,
AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS AGREEMENT
OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT (INCLUDING ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT
OF OR RELATED TO ANY REPRESENTATION OR WARRANTY MADE IN OR IN CONNECTION WITH THIS AGREEMENT), WILL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION AGAINST
ANY PARTY RELATING TO THE FOREGOING SHALL BE BROUGHT IN ANY FEDERAL OR STATE COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE
STATE OF NEW YORK, AND THE PARTIES HERETO HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT
LOCATED WITHIN THE STATE OF NEW YORK OVER ANY SUCH ACTION. THE PARTIES HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH DISPUTE BROUGHT IN SUCH
COURT OR ANY DEFENSE OF INCONVENIENT FORUM FOR THE MAINTENANCE OF SUCH DISPUTE. EACH OF THE PARTIES HERETO AGREES THAT A JUDGMENT
IN ANY SUCH DISPUTE MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

 

     12

     

    

 

Section 3.10       
Severability of Provisions.

 

Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting or impairing the validity
or enforceability of such provision in any other jurisdiction.

 

Section 3.11       
Entire Agreement.

 

This Agreement is intended
by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein with respect to the rights granted by the Company
set forth herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such
subject matter.

 

Section 3.12       
Amendment.

 

This Agreement may
be amended only by means of a written amendment signed by the Company and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and adversely affect the rights of any Holder hereunder
without the consent of such Holder.

 

Section 3.13       
No Presumption.

 

If any claim is made
by a party relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall
be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular party or its counsel.

 

Section 3.14       
Obligations Limited to Parties to Agreement.

 

Each of the Parties
hereto covenants, agrees and acknowledges that no Person other than the Purchasers (and their permitted transferees and assignees)
and the Company shall have any obligation hereunder and that, notwithstanding that one or more of the Purchasers may be a corporation,
partnership or limited liability company, no recourse under this Agreement or under any documents or instruments delivered in connection
herewith or therewith shall be had against any former, current or future director, officer, employee, agent, general or limited
partner, manager, member, stockholder or Affiliate of any of the Purchasers or any former, current or future director, officer,
employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, whether by the
enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed
and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current
or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the
Purchasers or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder
or Affiliate of any of the foregoing, as such, for any obligations of the Purchasers under this Agreement or any documents or instruments
delivered in connection herewith or therewith or for any claim based on, in respect of or by reason of such obligation or its creation,
except in each case for any transferee or assignee of a Purchaser hereunder.

 

     13

     

    

 

Section 3.15       
Independent Nature of Purchaser’s Obligations.

 

The obligations of
each Purchaser under this Agreement are several and not joint with the obligations of any other Purchaser, and no Purchaser shall
be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. Nothing contained
herein, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an
association, a joint venture or any other kind of group or entity, or create a presumption that the Purchasers are in any way acting
in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement. Each Purchaser
shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this
Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such
purpose.

 

Section 3.16       
Interpretation.

 

Article and Section
references are to this Agreement, unless otherwise specified. All references to instruments, documents, contracts and agreements
are references to such instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise
modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited
to.” Whenever any determination, consent or approval is to be made or given by a Purchaser under this Agreement, such action
shall be in such Purchaser’s sole discretion unless otherwise specified.

 

[Signature pages to follow]

 

     14

     

    

 

IN WITNESS WHEREOF,
the Parties hereto execute this Agreement, effective as of the date first above written.

 

	 	LILIS ENERGY, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	Name: 	                       
	 	Title:	 
	 	 	 
	 	 	 
	 	 	 
	 	PURCHASERS
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    
[Signature
Page to Registration Rights Agreement]

     

    

 

Annex A

 

lilis
energy, inc.

 

Selling Stockholder Notice and Questionnaire

 

The undersigned beneficial
owner of common stock (the “Registrable Securities”) of Lilis Energy, Inc., a Nevada corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Registration Statement”) for the registration and resale under the Securities
Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with the terms
of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document is annexed.
A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below. All capitalized
terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities
owned by it in the Registration Statement.

 

     

     

    

 

The undersigned hereby provides the following
information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

		1.	Name.

 

		(a)	Full Legal Name of Selling Stockholder

 

	 
	 

 

		(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities
are held:

 

	 
	 

 

		(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly
alone or with others has power to vote or dispose of the securities covered by this Questionnaire):

 

	 
	 

 

 

2. Address for Notices to Selling
Stockholder:

 

	 
	 
	 

 

	Telephone:	 
	Fax:	 
	Contact Person:	   

 

3. Broker-Dealer Status:

 

		(a)	Are you a broker-dealer?

 

Yes  ̈ No  ̈

 

		(b)	If “yes” to Section 3(a), did you receive your Registrable Securities as compensation
for investment banking services to the Company?

 

Yes  ̈ No  ̈

 

Note:If
“no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter in
the Registration Statement.

 

     

     

    

 

		(c)	Are you an affiliate of a broker-dealer?

 

Yes  ̈ No  ̈

 

		(d)	If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities
in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes  ̈ No  ̈

 

Note:If
“no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter in
the Registration Statement.

 

4. Beneficial Ownership of Securities
of the Company Owned by the Selling Stockholder.

 

Except as set forth below
in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities
issuable pursuant to the Purchase Agreement.

 

		(a)	Type and Amount of other securities beneficially owned by the Selling Stockholder:

 

	 
	 
	 

5. Relationships with the Company:

 

Except as set forth below,
neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the
equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company
(or its predecessors or affiliates) during the past two years.

 

State any exceptions here:

 

	 
	 
	 

 

The undersigned agrees
to promptly notify the Company of any material inaccuracies or changes in the information provided herein that may occur subsequent
to the date hereof at any time while the Registration Statement remains effective; provided, that the undersigned shall not be
required to notify the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.

 

By signing below, the
undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion
of such information in the Registration Statement and the related prospectus and any amendments or
supplements thereto. The undersigned understands that such information will be relied upon by the Company in connection
with the preparation or amendment of the Registration Statement and the related prospectus and any amendments or supplements thereto.

 

     

     

    

 

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person
or by its duly authorized agent.

 

	Date: 	 	 	Beneficial Owner: 	 

 

	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 

  

PLEASE FAX A COPY (OR EMAIL A .PDF COPY)
OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

Lilis Energy, Inc.

Attn: General Counsel

300 E. Sonterra Blvd., Suite 1220

San Antonio, TX 78258

Email: afuchs@lilisenergy.comExhibit 4.1

 

SEA 001   INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE AUTHORIZED: 250,000,000   SHARES OF CLASS A COMMON STOCK, $0.01 PAR VALUE PER SHARE SEE REVERSE FOR   CERTAIN DEFINITIONS This Certifies That is the owner of Fully Paid and   Non-Assessable Shares of Class A Common Stock, $0.01 Par Value per Share, of   SELECT ENERGY SERVICES, INC. transferable on the books of this Corporation in   person or by attorney upon surrender of this Certificate duly endorsed or   assigned. This Certificate and the shares represented hereby are subject to   the laws of the State of Delaware, and to the Articles of Incorporation and   the Bylaws of the Corporation, as now or hereafter amended. This Certificate   is not valid until countersigned by the Transfer Agent. IN WITNESS WHEREOF,   the Corporation has caused this Certificate to be signed by the facsimile   signatures of its duly authorized officers and to be sealed with the   facsimile seal of the Corporation. Dated: CHIEF EXECUTIVE OFFICER SECRETARY   Countersigned: AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC 6201 15th   Avenue, Brooklyn, NY 11219 By Transfer Agent and Registrar Authorized Officer   

    

 

 

SELECT ENERGY   SERVICES, INC. AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC TRANSFER FEE:   AS REQUIRED The following abbreviations, when used in the inscription on the   face of this certificate, shall be construed as though they were written out   in full according to applicable laws or regulations: TEN COM - as tenants in   common TEN ENT - JT TEN-as tenants by the entireties as joint tenants with   right of survivorship and not as tenants in common UNIF GIFT MIN ACT -   Custodian (Cust) (Minor) under Uniform Gifts to Minors Act (State) Additional   abbreviations may also be used though not in the above list. PLEASE INSERT   SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE FOR VALUE RECEIVED,   hereby sell, assign and transfer unto PLEASE PRINT OR TYPEWRITE NAME AND   ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE Shares of the Common Stock   represented by the within Certificate and do hereby irrevocably constitute   and appoint Attorney to transfer the said stock on the books of the   within-named Corporation, with full power of substitution in the premises.   Dated: 20 , Signature: X Signature(s) Guaranteed: Signature: X THE   SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS WRITTEN   UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR   ENLARGEMENT OR ANY CHANGE WHATEVER. THE SIGNATURE(S) SHOULD BE GUARANTEED BY   AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan   Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE   GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}]]