Document:

Exhibit 10.6

 

LILIS
ENERGY, INC.

2012 EQUITY INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

 

This Stock Option
Award Agreement (the “Agreement”), is made as of the 1st day of October 2014, by and between Lilis Energy,
Inc., a Nevada corporation (the “Company”), and Nuno Brandolini (the “Participant”).

WHEREAS, the
Company desires to encourage and enable the Participant to acquire a proprietary interest in the Company through ownership of shares
of the Company’s Common Stock, par value $0.0001 per share (the “Shares”), pursuant to the terms and conditions
of the Company’s 2012 Equity Incentive Plan, as amended (the “Plan”), and this Agreement. Such ownership will
provide the Participant with additional incentive to promote the success of the Company.

NOW, THEREFORE,
in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties
agree as follows:

1.             Definitions. For purposes of this Agreement, all capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to them in the Plan.

2.             Grant of Option. The Company hereby grants to the Participant options (the “Options”) to purchase 200,000
Shares at the exercise price (the “Exercise Price”) of $2.13 per Share, subject to the terms and conditions of this
Agreement and the Plan.

3.             Expiration Date. The Options granted hereby shall expire upon the earlier of (a) five (5) years from the date the Options
vest and become exercisable pursuant to Section 4 or (b) February 13, 2024 (such date being the “Expiration Date”).
Except as may be otherwise set forth herein, the Options may not be exercised after the Expiration Date.

4.             Vesting.
The Options shall vest and be exercisable by the Participant in accordance with the following schedule:

	 	Date	 	Number of Options Vested
	 	 	 	 
	 	February 13,
2015	 	66,667 Options
	 	 	 	 
	 	February 13,
2016	 	66,667 Options
	 	 	 	 
	 	February 13,
2017	 	66,666 Options

5.             Separation
from Service.

(a)               
If the Participant’s service is terminated by the Company for Cause (as defined in the Plan), then all Options shall
immediately terminate and no longer be exercisable.

    	 

    	 

    

(b)               
If the Participant terminates his service, then all Options shall terminate and no longer be exercisable on the date that
is 90 days after the date of termination of the Participant’s Continuous Service (as defined in the Plan), but not later
than the Expiration Date. No Options shall vest following the date of termination of the Participant’s Continuous Service
(as defined in the Plan).

(c)              
If, before the Expiration Date, the Participant’s service is terminated by the Company other than for Cause (as defined
in the Plan), upon a Change in Control (as defined in the Plan) of the Company or upon the death or Disability (as defined in
the Plan) of the Participant, then, all unexercisable Options shall become exercisable and remain exercisable until the Expiration
Date. All vested Options not exercised within the period described in the preceding sentence shall terminate.

(d)                Notwithstanding
anything herein to the contrary, in the event of Participant’s Disability (as defined in the Plan), the Participant may
exercise the Options at any time within one (1) year after the Date of Termination (as defined in the Plan) but not later than
the Expiration Date.

(e)               
Notwithstanding
anything herein to the contrary, in the event of Participant’s death or if a Participant should die within a period of 90
days after termination of the Participant’s Continuous Service for reason other than Cause (as defined in the Plan), the
personal representatives of the Participant’s estate or the person or persons who shall have acquired the Options from the
Participant by bequest or inheritance may exercise the Options at any time within one (1) year after the date of death, but not
later than the Expiration Date.

6.             Sale, Merger or Dissolution. In the event of a Change in Control, the Company shall give the Participant notice thereof
and the Options, whether or not currently vested and exercisable, shall become immediately vested and exercisable immediately prior
to the effective date of such event, and the Board shall have the power and discretion to provide alternatives regarding the terms
and conditions for the exercise of, or modification of, the Options in accordance with the Plan.

7.             Non-Assignability. The Option granted hereby and any right arising thereunder may not be transferred, assigned, pledged
or hypothecated (whether by operation of law or otherwise), except by will or the applicable laws of descent and distribution,
and the Options and any rights arising thereunder shall not be subject to execution, attachment or similar process. The Options
shall be exercisable during the lifetime of the Participant only by the Participant. Any attempted assignment, transfer, pledge,
hypothecation or other disposition of an Option not specifically permitted herein or in the Plan shall be null and void and without
effect.

8.             Mode of Exercise.

(a)               
The Options may be exercised by delivery of an irrevocable notice of exercise in by the Participant to the Company, stating
the number of shares being purchased.

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(b)              
The right to receive the Shares of the Company’s Common Stock upon exercise of the Options shall be conditioned upon
the delivery by the Participant of payment for shares and withholding taxes incurred by reason of the exercise and certain representations,
if requested by the Administrator. Acceptable forms of consideration for exercising the Options may include:

(1)              
cash, check or wire transfer (denominated in U.S. Dollars);

(2)              
subject to the Company’s discretion to refuse for any reason and at any time to accept such consideration and subject
to any conditions or limitations established by the Administrator, other shares of the Company’s Common Stock held by the
Participant which have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Options to be
exercised;

(3)              
delivery of a notice that the Participant has placed a market sell order with a broker with respect to the Shares then issuable
upon exercise of the Options, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale
to the Company in satisfaction of the aggregate payments required; provided, that payment of such proceeds is then made to the
Company upon settlement of such sale;

(4)             
subject to the Company’s discretion to refuse for any reason and at any time to accept such consideration and subject
to any conditions or limitations established by the Administrator, cashless “net exercise” arrangement pursuant to
which the Company will reduce the number of shares issued upon exercise by the largest whole number of shares having an aggregate
Fair Market Value that does not exceed the aggregate exercise price, together with required withholding amounts (if any), provided
that the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance not satisfied
by such reduction in the number of whole shares to be issued;

(5)              
such other consideration and method of payment for the issuance of Shares of Common Stock to the extent permitted by Applicable
Laws and acceptable to the Administrator; and

(6)              
any combination of the foregoing methods of payment.

9.             Recapitalization. The number of Shares covered by the Options and the Exercise Price shall be proportionately adjusted
for any increase or decrease in the number or type of issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common
Stock effected without receipt of consideration by the Company.  The conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration.”  Such adjustment shall be made by
the Board, whose determination in that respect shall be final, binding and conclusive.  

10.           Plan
Controlling. This Agreement is intended to conform in all respects with the requirements of the Plan. Inconsistencies between
the requirements of this Agreement and the Plan shall be resolved according to the terms of the Plan. The Participant acknowledges
receipt of a copy of the Plan.

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11.           Rights Prior to Exercise of Option. The Participant shall not have any rights as a shareholder with respect to any Shares
subject to the Option prior to the date on which he is recorded as the holder of such Shares on the records of the Company.

12.           Withholding
Taxes. The Company shall have the right to require the Participant or his beneficiaries or legal representatives to remit
to the Company, in cash, an amount sufficient to satisfy any federal, state and local withholding tax requirements, including
upon the grant, vesting or exercise of this Option. Whenever payments under the Plan or this Agreement are to be made to any Participant
in cash, such payments shall be net of any amounts sufficient to satisfy all applicable taxes, including without limitation, all
applicable federal, state and local withholding tax requirements to be withheld or submitted by the Company concerning such payments.
The Board may, in its sole discretion, allow the Participant to satisfy withholding tax obligations by electing to have the Company
withhold from the Shares to be issued upon exercise of an Option that number of Shares having a Fair Market Value equal to the
minimum amount required to be withheld.  The Fair Market Value of the Shares to be withheld shall be determined on the date
that the amount of tax to be withheld is to be determined.

13.           Section
409A. The Options granted hereunder are intended to comply with or be exempt from the requirements of Code Section 409A, and
the Agreement shall be interpreted accordingly. In no event, however, shall the Company be liable to the Participant for any tax,
penalties or interest that may be due in respect of any the Options as a result of the application of Code Section 409A.

14.           Governing Law. This Agreement and all rights arising hereunder shall be governed by, and construed and interpreted in
accordance with, the laws of the State of Colorado.

NEITHER THE PLAN
NOR THIS AGREEMENT SHALL BE CONSTRUED AS GIVING THE PARTICIPANT THE RIGHT TO BE RETAINED IN THE EMPLOY OR SERVICE OF THE COMPANY
OR ANY AFFILIATE THEREOF, NOR SHALL THEY INTERFERE IN ANY WAY WITH THE RIGHT OF THE COMPANY OR ANY AFFILIATE THEREOF, AS APPLICABLE,
TO TERMINATE THE PARTICIPANT’S EMPLOYMENT OR SERVICE AT ANY TIME WITH OR WITHOUT CAUSE. 

* * * * *

 

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Executed as of
the day and year first above written. 

	 	LILIS ENERGY, INC. 
	 	 	 
	 	By:	/s/ Eric Ulwelling
	 	Name: 	Eric Ulwelling
	 	Title:	Chief Financial Officer
	 	 	 
	 	PARTICIPANT
	 	 	 
	 	/s/ Nuno Brandolini
	 	Nuno Brandolini

 

 

5Exhibit 10.7

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

This
Amendment to Employment Agreement (this “Amendment”) is effective as of October 1, 2014, by and between Lilis
Energy, Inc. (f/k/a Recovery Energy, Inc.), a Nevada corporation (the “Company”), and Abraham Mirman (“Executive”).
Reference is made to that certain Employment Agreement by and between the Company and Executive effective as of September 16, 2013
(the “Employment Agreement”). All capitalized terms not defined herein shall have the meanings assigned
to such terms in the Employment Agreement. The Company and Executive are referred to in this Amendment collectively as the “Parties.”

 

WHEREAS,
the Parties desire to amend certain terms of the Employment Agreement as set forth below.

NOW, THEREFORE,
in consideration of the promises and mutual covenants and agreements herein contained and intending to be legally bound hereby,
the Parties hereby agree as follows:

1.     
Name Change. The Company has changed its name to Lilis Energy, Inc. All reference to “Recovery Energy, Inc.”
in the Employment Agreement shall be replaced with “Lilis Energy, Inc.” Any and all references to the “Company”
in the Employment Agreement shall refer to Lilis Energy, Inc.

2.     
Amendments to Article I. Article I shall be amended to:

		a.	In Section 1.9 (“Measurement Date”), change “December 31, 2014”
to “December 31, 2015”; and

		b.	In Section 1.14 (“Service Period”), change “December 31, 2014” to
“December 31, 2015”.

3.     
Amendment to Article II. Article II shall be amended by replacing “President” in Section 2.2 with “Chief
Executive Officer.”

4.     
No Other Changes. Except as modified or supplemented by this Amendment, the Employment Agreement remains unmodified
and in full force and effect.

5.     

Miscellaneous.

(a)Governing
Law. This Amendment is entered into under, and shall be governed for all purposes by, the laws of the State of Colorado, without
regard to conflicts of laws principles thereof. With respect to any claim or dispute related to or arising under this Amendment,
the parties hereto hereby consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in the
State of New York.

(b)Binding
Effect. This Amendment is intended to bind and inure to the benefit of and be enforceable by Executive, the Company and their
respective heirs, successors and assigns, except that Executive may not assign his rights or delegate his obligations hereunder
without the prior written consent of the Company.

    	

    	 

    

(c)Counterparts.
This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute
one and the same instrument.

(d)Savings
Clause. If any provision of this Amendment or the application thereof is held invalid, the invalidity shall not affect other
provisions or applications of this Amendment or the Employment Agreement which can be given effect without the invalid provisions
or applications and to this end the provisions of this Amendment and the Employment Agreement are declared to be severable.

(e) Entire
Agreement. The Employment Agreement, this Amendment, and any and all award agreements entered into between the Executive and
the Company with respect to the equity awards granted pursuant to the Employment Agreement and this Amendment, constitute the entire
agreement of the parties with regard to the subject matter hereof, and together contain all the covenants, promises, representations,
warranties and agreements between the parties with respect to employment of Executive by the Company.

[Signature page follows.]

 

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IN
WITNESS WHEREOF, the Parties hereto have caused this Amendment to Employment Agreement to be executed as of the date
first above written.

 

	 	LILIS ENERGY, INC.
	 	 	 
	 	By: 	/s/ Eric Ulwelling
	 	 	Eric Ulwelling
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	/s/ Abraham Mirman
	 	Abraham Mirman

 

 

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