Document:

CONVERTIBLE PROMISSORY NOTE

 

 

	
         

         

        $1,000,000
	
         

         

        July 30, 2012

 

The undersigned, Red Mountain Resources,
Inc., a Florida corporation (hereinafter called the “Corporation”), whose address is 2515 McKinney Avenue, Suite 900,
Dallas, Texas 75201, for value received, without grace, in the manner, on the dates and in the amounts herein stipulated, promises
to pay to the order of Hohenplan Privatstiftung (hereinafter called "Payee"), at AT - 8912 Allerheiligen, or at
such other place as Payee may hereafter designate, the sum of ONE MILLION DOLLARS ($1,000,000), in lawful money of the United States
of America, with interest at the rate herein specified.

 

SECTION 1.  INTEREST ACCRUAL.  The
unpaid principal amount from time to time outstanding hereunder shall bear interest from and after the date hereof until such amount
is paid in full at a fixed rate per annum equal to TEN PERCENT (10%).  Interest on this Note shall be computed on the
basis of a 365-day year for the actual number of days elapsed.

 

SECTION 2.  PAYMENT OBLIGATION.  The
unpaid principal balance of this Note with all accrued but unpaid interest thereon shall be due and payable on or before midnight
on July 30, 2013 (the “Maturity Date”); provided, however, that Payee shall have the option in Payee’s sole discretion
to extend the Maturity Date of this Note by 12 months to July 30, 2014 by 21 calendar days’ advance written notice to the
Corporation (the “Extended Maturity Date”).

 

2.1.PARTICIPATION IN SECURITY INTEREST
OR LIEN GRANTED. If the Corporation grants a security interest or other lien on the assets of the Corporation to any other subordinated
debt lender of the Corporation, then the Corporation agrees to include Payee in the security interest or lien granted on a pari
passu basis with any other subordinated debt lender for whatever principal amount is outstanding on this promissory Note at the
time of such granting of a security interest. This provision WILL NOT APPLY to any security interest granted to a senior lender
in connection with a reserve based or production based loan secured by the Corporation (pursuant to which Payee will not participate
in the security interest or lien granted) but only to other subordinated and/or investor debt secured by the Corporation after
the closing of the loan pursuant to this promissory Note.

 

SECTION 3.  CONVERSION.

 

3.1           Optional
Conversion.

 

3.1.1On a date
(the "Conversion Date") on which any amount remains outstanding on this Note and on which Payee gives to
Corporation written notice that Payee wishes for the principal amount of this Note, together with accrued and unpaid interest,
if any, or any portion thereof, to be converted into the Corporation’s common stock (“Common Stock”), this Note
(or the designated portion thereof) (the “Conversion Amount”) shall, without any action required on the part of either
Corporation or Payee, automatically convert into, and Payee shall be entitled to receive in lieu of payment of the indebtedness
evidenced thereby, a number of shares of Common Stock (“Conversion Shares”) calculated by dividing the Conversion Amount
by the lower of (a) $1.50 and (b) the lowest price at which the Corporation sells Common Stock for cash in an equity financing
after the date of this Note and prior to the Maturity Date or Extended Maturity Date, if applicable (the “Conversion Price”).
Following any such conversion, the Corporation shall issue a replacement Note in the amount of any portion of the Original Principal
Amount which remains unconverted, if any.

 

    	 

    	 	

    
 

3.1.2For purposes
of illustration, if the Conversion Price is $1.50 and the entire principal amount is converted (exclusive of accrued interest),
Payee shall be issued a minimum of 666,667 shares of Common Stock, subject to adjustment as provided in paragraph 3.6 below. If
only a portion of the principal amount of the Note is converted, the number of shares of Common Stock will be proportionally reduced.
Any accrued interest that is converted will result in the same ratio of shares of Common Stock being issued (a minimum of 66,667
shares of Common Stock for every $100,000 of accrued interest being converted, subject to adjustment as provided in paragraph 3.6
below). In the event Corporation sells Common Stock for cash in an equity financing after the date of this Note and prior to the
Maturity Date or Extended Maturity Date, as the case may be, at a price lower than $1.50 per share, the minimum number of Conversion
Shares set forth above would be adjusted proportionally.

 

3.2           Issuance
of Certificates. As promptly after the Conversion Date as reasonably practicable and after Payee’s surrender of this Note,
Corporation shall instruct its transfer agent to issue and deliver to Payee at the address of Payee set forth above, without any
charge to Payee, a certificate or certificates (issued in the name of Payee) for the number of Conversion Shares issuable upon
the conversion of this Note.

 

3.4           Status
on Conversion. Upon conversion of this Note or any portion thereof, Payee shall be deemed to have become the stockholder of record
of the shares of Common Stock into which this Note is converted on the Conversion Date (unless the transfer books of the Corporation
are closed on that date, in which event Payee shall be deemed to have become the stockholder of record on the next succeeding day
on which the transfer books are open and the conversion shall be at the rate in effect on such date).

 

3.5           Elimination
of Fractional Interests. No fractional shares of Common Stock shall be issued upon conversion of this Note, nor shall the Corporation
be required to pay cash in lieu of fractional interests, it being the intent of the parties that all fractional interests shall
be eliminated and that all issuances of Common Stock shall be rounded up to the nearest whole share.

 

3.6           Adjustments
of Shares Issued on Conversion.

 

(a)     The number of
Conversion Shares shall be adjusted from time to time as follows: if the Corporation shall at any time after the date hereof (i)
issue any shares of Common Stock by way of a dividend or other distribution on any stock of the Corporation and without consideration,
or (ii) subdivide or combine its outstanding shares of Common Stock, the number of Conversion Shares shall be adjusted (to the
nearest full share) by multiplying (x) the Conversion Shares in effect immediately prior to the adjustment by (y) a fraction, the
numerator of which is the total number of shares of Common Stock outstanding immediately after the issuance of shares, and the
denominator of which is the total number of shares of Common Stock outstanding immediately before such issuance or sale.  For
the purposes of any computation to be made in accordance with this Section 3, shares of Common Stock issuable by way of dividend
or other distribution on any stock of the Corporation shall be deemed to have been issued immediately after the opening of business
on the day following the record date for the determination of stockholders entitled to receive such dividend or other distribution.

  

(b)     Effect of Reclassification,
Consolidation, Merger, etc.  In case of the reclassification or change of outstanding shares of Common Stock (other than
a change in par value, or from no par value to par value or vice versa, or as a result of a subdivision or combination), or in
the case of any consolidation or merger of the Corporation with or into a corporation (other than a consolidation or merger into
which the Corporation is the surviving corporation and which does not result in any reclassification or change of outstanding shares
of Common Stock except a change as a result of a subdivision or combination of such shares or a change in par value as described
above), or in the case of a sale or conveyance to another corporation of all or substantially all of the assets of the Corporation,
this Note shall be converted on the Conversion Date into the kind and number of shares of stock and/or other securities or property
receivable upon such reclassification, change, consolidation, merger, sale or conveyance by a holder of the number of shares of
Common Stock into which this Note might have been converted immediately before the time of determination of the stockholders of
the Corporation entitled to receive such shares of stock and/or other securities or property. The Corporation shall be obligated
to retain and set aside, or otherwise make fair provision for exercise of the right of Payee to receive, the shares of stock and/or
other securities or property provided for in this Section 3.6.

 

    	 

    	 	

    
 

(c)      Certificate
Concerning Adjusted Number of Conversion Shares. Whenever the number of Conversion Shares is adjusted pursuant to this Section
3, the Corporation promptly shall: (i) place on file at its principal executive office an officer's certificate signed by the chief
financial officer or controller of the Corporation showing in appropriate detail the facts requiring such adjustment, the computation
thereof, and the adjusted conversion rate, and shall exhibit the certificate from time to time to Payee of this Note if Payee desires
to inspect the same; and (ii) mail or cause to be mailed to Payee, in the manner provided for giving notice pursuant to this Note,
a notice stating that such adjustment has been made and setting forth the adjusted Conversion Price.

 

3.7           Reservation
and Listing of Shares for Issuance. The Corporation shall reserve and keep available out of its authorized and unissued shares
of Common Stock, for the purpose of effecting the conversion of this Note, such number of its duly authorized shares as shall from
time to time be sufficient to effect the conversion of this Note. The Corporation covenants that all shares of Common Stock issued
upon conversion of this Note in compliance with the terms hereof will be duly and validly issued and fully paid and non-assessable.  As
long as this Note shall be outstanding, the Corporation shall use its reasonable best efforts to cause all shares of Common Stock
issuable upon conversion of this Note to be listed (subject to official notice of issuance) on all securities exchanges on which
the Common Stock is then listed, if any.

 

3.8           Investment
Intent, Restrictions on Transfer, Legends etc. Payee acknowledges that this Note and the Common Stock to be issued upon conversion
have not been registered under the Securities Act of 1933, as now in force or hereafter amended, or any successor legislation (the
"Act"), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Note or any
Common Stock issued upon conversion in the absence of (i) an effective registration statement under the Act as to this Note or
the Common Stock and registration or qualification of this Note or the Common Stock under any applicable blue sky or state securities
law then in effect, or (ii) an opinion of counsel, satisfactory to the Corporation, that such registration and qualification are
not required.  Without limiting the generality of the foregoing, unless the offering and sale of Common Stock issued
upon conversion to be issued shall have been effectively registered under the Act, the Corporation shall be under no obligation
to issue the shares covered by such conversion unless and until Payee shall have executed an investment letter in form and substance
satisfactory to the Corporation, including a warranty at the time of such exercise that he is acquiring such shares for his own
account, for investment and not with a view to, or for sale in connection with, the distribution of any such shares, in which event
Payee shall be bound by the provisions of a legend to such effect on the certificate(s) representing Common Stock to be issued
upon conversion.  In addition, without limiting the generality of the foregoing, the Corporation may delay issuance of
Common Stock to be issued upon conversion until completion of any action or obtaining of any consent, which the Corporation believes
necessary or advisable under any applicable law (including without limitation state securities or "blue sky" laws).

 

3.9           Piggyback
Registration Rights. Subject to normal and customary claw-back provisions, the Corporation commits to include the resale of the
shares of Common Stock that may be received upon conversion of this Note hereunder on any registration statement filed by the Company
after the date of this Note other than a registration statement (i) filed in connection with any employee stock option or other
benefit plan, (ii) for an exchange offer or offering of securities solely to the Corporation’s existing shareholders, (iii)
for an offering of debt that is convertible into equity securities of the Corporation or (iv) for a dividend reinvestment plan.

 

SECTION 4. DEFAULTS AND REMEDIES.

 

Time is of the essence concerning this
Note.  If this Note is not timely paid at maturity, then Payee may institute in any court of competent jurisdiction an
action for collection.  In such event, Corporation agrees to pay all expenses incurred, including reasonable attorneys'
fees, all of which shall become a part of the principal hereof.

 

    	 

    	 	

    
 

Corporation and each and all other liable
parties expressly and specifically, (i) severally waive grace, presentment for payment, demand for payment, notice of intent to
accelerate and notice of acceleration, notice of dishonor, protest and notice of protest, notice of nonpayment, and any and all
other notices, the filing of suit and diligence in collecting this Note or enforcing any of the security herefor, (ii) severally
agree to any substitution, subordination, exchange or release of any security held for the payment of this Note or any other obligation
to Payee and release of any party primarily or secondarily liable hereon, (iii) severally agree that Payee shall not be required
first to institute suit or exhaust Payee's remedies hereon against Corporation or other parties liable hereon or to enforce Payee's
rights against them or any security herefor in order to enforce payment of this Note by any of them, and (iv) severally agree to
any extension or postponement of time of payment of this Note and to any other indulgence with respect hereto without notice thereof
to any of them.

 

SECTION 5. MISCELLANEOUS.

 

The invalidity, or unenforceability in
particular circumstances, of any provision of this Note shall not extend beyond such provision or such circumstances and no other
provision of this Note shall be affected thereby.

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

IN WITNESS WHEREOF, the undersigned has
set his hand hereunto as of as of the day and year first above written.

 

 

 

	 	RED MOUNTAIN RESOURCES, INC. 
	 	 
	 	 
	 	 
	 	By: 	/s/ Alan W. Barksdale
	 	 	Alan W. Barksdale, CEOEXHIBIT 4.4

 

FORM OF STOCK OPTION AWARD AGREEMENT

   

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

UNDER THE ACCELR8 TECHNOLOGY CORPORATION

2004 OMNIBUS STOCK OPTION PLAN

 

This Non-Qualified
Stock Option Award Agreement (the “Agreement”) is between Accelr8 Technology Corporation, a Colorado corporation (the
“Company”) and ________________________ (the “Optionee”), and is effective as of the ____ day of __________,
20__ (the “Grant Date”).

 

RECITALS

 

A.           The
Board of Directors of the Company (the “Board”) has adopted and the stockholders have approved the Accelr8 Technology
Corporation 2004 Omnibus Stock Option Plan (the “Plan”) to promote the success an enhance the value of the Company
by linking the personal interests of the Plan’s participants to those of the Company’s stockholders and by providing
such individuals with an incentive for outstanding performance in order to help grow the Company and to generate superior returns
for its shareholders.

 

B.           The
Compensation Committee (or any such other committee designated by the Board) has approved the granting of non-qualified stock options
to Optionee pursuant to Section 5(b) of the Plan.

 

C.           To
the extent not specifically defined in this Agreement, all capitalized terms used in this Agreement shall have the meaning set
forth in the Plan.

 

AGREEMENT

 

In consideration of
the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Optionee agree as follows:

 

1.          Grant
of Option. Subject to the terms of this Agreement and Section 5 of the Plan, the Company grants to Optionee the right and
option to purchase from the Company all or any part of an aggregate of _______ shares of Stock (“Option”). The Option
granted under this Agreement is not intended to be an “Incentive Stock Option” under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”).

 

2.          Purchase
Price. The purchase price under this Agreement is $_____ per share of Stock, as determined by the Committee, which shall
not be less than the Fair Market Value of a share of Stock on the Grant Date.

 

3.          Vesting
of Option. The Option shall vest and become exercisable according to the following schedule:

 

[INSERT VESTING SCHEDULE
HERE]

 

Notwithstanding any
other provision in this Agreement to the contrary, all Options shall become fully vested and exercisable and all restrictions on
outstanding Options shall lapse as of the date on which the Company or the stockholders of the Company enter into an agreement
to dispose of all or substantially all of the assets or Stock of the Company by means of sale, reorganization, liquidation or otherwise
as described in Section 6(a) of the Plan.

 

    	 

    	 

    

 

4.          Exercise
of Option. This Option may be exercised in whole or in part at any time after it vests in accordance with Section 3 and
before the Option expires by delivery of a written notice of exercise (under Section 5 below) and payment of the purchase price.
The purchase price may be paid in cash, cash equivalents, or such other method permitted by the Committee and communicated to the
Optionee before the date the Optionee exercises the Option.

 

5.          Method
of Exercising Option. Subject to the terms of this Agreement, the Option may be exercised by timely delivery to the Company
of written notice, which notice shall be effective on the date received by the Company. The notice shall state the Optionee’s
election to exercise the Option and the number of underlying shares in respect of which an election to exercise has been made;
provided that, no Option may be exercised for fewer than ten (10) shares of Stock unless the number of shares with respect to the
Option constitutes the total number of shares as to which the Option is then exercisable. Such notice shall be signed by the Optionee,
or if the Option is exercised by a person or persons other than the Optionee because of the Optionee’s death, such notice
must be signed by such other person or persons and shall be accompanied by proof acceptable to the Company of the legal right of
such person or persons to exercise the Option.

 

6.          Term
of Option. The Option granted under this Agreement expires, unless sooner terminated, ten (10) years from the Grant Date,
through and including the normal close of business of the Company on the tenth (10th) anniversary of the Grant Date
(the “Expiration Date”).

 

7.          Termination
of Employment.

 

(a)          If
the Optionee terminates employment for any reason other than death, the Optionee may at any time within the ninety (90) day period
after the date of his or her termination of employment, exercise the Option to the extent the Option was exercisable by Optionee
immediately prior to his or her termination of employment. In no event shall the Option be exercisable after the Expiration Date.

 

(b)          If
the Optionee terminates employment by reason of death, the Option shall lapse on the earlier of (i) the fifth (5th)
anniversary of the Grant Date, or (ii) one (1) year after the date the Optionee terminates employment due to death. The Option
may be exercised following the death of Optionee only if the Option was exercisable by Optionee immediately prior to his or her
death. In no event shall the Option be exercisable after the Expiration Date.

 

8.          Tax
Withholding. As described in Section 12 of the Plan, the Company shall have the right to deduct or withhold from any payments
made by Company to the Optionee, or to require that the Optionee remit to Company, an amount sufficient to satisfy any federal,
state or local taxes of any kind as are required by law to be withheld with respect to the Options granted hereunder.

 

9.          Nontransferability.
The Options granted by this Agreement shall not be transferable by the Optionee or any other person claiming through the Optionee,
either voluntarily or involuntarily, except by will or the laws of descent and distribution or as otherwise provided by the Committee
pursuant to Section 7 of the Plan.

 

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10.        Continuation
of Employment. This Agreement shall not be construed to confer upon the Optionee any right to continue employment with
the Company and shall not limit the right of the Company, in its sole and absolute discretion, to terminate Optionee’s employment
at any time.

 

11.        Administration.
This Agreement shall at all times be subject to the terms and conditions of the Plan and the Plan shall in all respects be administered
by the Committee in accordance with the terms of and as provided in the Plan. The Committee shall have the sole and complete discretion
with respect to all matters reserved to it by the Plan and decisions of the majority of the Committee with respect thereto and
to this Agreement shall be final and binding upon the Optionee and the Company. In the event of any conflict between the terms
and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

 

12.        Adjustments.
The number of shares of Common Stock issued to Optionee pursuant to this Agreement shall be adjusted by the Committee pursuant
to Section 9 of the Plan, in its discretion, in the event of a change in the Company’s capital structure.

 

13.        Securities
Act. The Company shall not be required to deliver any shares of Stock pursuant to the vesting of Options if, in the opinion
of counsel for the Company, such issuance would violate the Securities Act of 1933 or any other applicable federal or state securities
laws or regulations.

 

14.        Voting
and Other Stockholder Related Rights. The Optionee will have no voting rights or any other rights as a stockholder of the
Company with respect to any Options until the Company issues the stock certificates representing the shares of Stock underlying
the Option.

 

15.        Copy
of Plan. By the execution of this Agreement, the Optionee acknowledges receipt of a copy of the Plan.

 

16.        Governing
Law. This Agreement shall be interpreted and administered under the laws of the State of Colorado.

 

17.        Amendments.
This Agreement may be amended only by a written agreement executed by the Company and the Optionee. The provisions of this Agreement
may not be waived or modified unless such waiver or modification is in writing and signed by a representative of the Committee.

 

MANY OF THE PROVISION
OF THIS AWARD AGREEMENT ARE SUMMARIES OF SIMILAR PERTINENT PROVISIONS OF THE PLAN. TO THE EXTENT THAT THIS AGREEMENT IS SILENT
ON AN ISSUE OR THERE IS A CONFLICT BETWEEN THE PLAN AND THIS AGREEMENT, THE PLAN PROVISIONS SHALL CONTROL.

 

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IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized representative and Optionee has signed this Agreement,
and this Agreement shall be effective as of the day and year first written above.

 

	 	 	Accelr8 Technology Corporation
	 	 	 
	 	 	By:	 
	Date	 	 
	 	 	Name:	 
	 	 	 
	 	 	Title:	 
	 	 	 
	 	 	Optionee
	 	 	 
	 	 	By:	 
	 	 	 
	 	 	Name:	 

 

    	4

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