Document:

Exhibit
10.1

 

SETTLEMENT
AGREEMENT AND MUTUAL GENERAL RELEASE

 

THIS
SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE (this “Agreement”) is made as of August 28, 2020, by and between CipherLoc
Corporation, a Texas corporation (“CipherLoc” or the “Company”), Thomas Wilkinson, an individual (“Wilkinson”)
and Anthony Ambrose, an individual (“Ambrose”) on one hand, and Michael De La Garza, an individual (“MDLG”)
and Robin C. De La Garza, an individual (“Mrs. De La Garza” and together with MDLG, “De La Garza”). CipherLoc,
Wilkinson, Ambrose, MDLG and Mrs. De La Garza are referred to individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS,
De La Garza currently owns beneficially and of record 14,430,000 shares (the “Shares”) of common stock of CipherLoc,
par value $0.01 per share (“Common Stock”);

 

WHEREAS,
CipherLoc seeks a declaratory judgment invalidating the issuance of THE Shares in a civil action instituted in the United States
District Court for the Western District of Texas, Austin Division, styled as CipherLoc Corporation vs. Michael De La Garza,
MSR, LLC, and James LaGanke, as Trustee of the Caramel Trust II, Civil Action No. 1:19-CV-01147-LY, (the “Federal Court
Lawsuit”);

 

WHEREAS,
CipherLoc has sued MDLG in a civil action instituted in the 353rd Judicial District Court of Travis County, Texas,
styled as CipherLoc Corporation vs. Michael De La Garza, Cause No. D-1-GN-19-005253 and asserted claims against MDLG for
conversion, violation of the Texas Theft Liability Act, violation of the Texas Uniform Trade Secrets Act, tortious interference
with prospective contractual relations, and breach of fiduciary duty (the “5253 State Court Lawsuit”);

 

WHEREAS,
MDLG has sued Wilkinson and Ambrose, among others, in a civil action instituted in the 53rd Judicial District Court
of Travis County, Texas, styled as Michael De La Garza and CipherLoc, Inc. v. Tom Wilkinson, Anthony Ambrose, Manchester PR,
LLC and Manchester Explorer, LP; Cause No. D-1-GN-19-004708; In the 53rd Judicial District Court of Travis County,
Texas on the grounds that that the CipherLoc current board of directors is improperly constituted, lacks authority to take actions
on behalf of the company and should be enjoined from taking any action (the “4708 State Court Lawsuit”) [the Federal
Court Lawsuit, the 5253 State Court Lawsuit, and the 4708 State Court Lawsuit are collectively referred to herein as the Lawsuits”];

 

WHEREAS,
CipherLoc, Wilkinson, Ambrose, MDLG and each party to the Lawsuits denies that it or he is liable in any way to the other party
and intends to vigorously defend against claims and allegations;

 

WHEREAS,
the Parties desire to avoid the expense, uncertainties, and risks of further litigation between themselves and to fully, finally,
and forever compromise and settle all past and present claims between them including but not limited to all claims which were
raised or capable of being raised in the Lawsuit and all claims arising out of or related to the Shares; and

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 1

     

    

 

In
consideration of the foregoing and mutual promises and other terms contained herein, and for other good and valuable consideration
hereby deemed received, De La Garza and CipherLoc agree as set forth below.

 

TERMS
OF AGREEMENT

 

1.
Payment Terms: In consideration for the promises, releases and agreements herein, CipherLoc will pay De La Garza
the sum of $400,000.00 (the “Settlement Amount”), less any applicable withholding, as follows: (a) $300,000 on or
before ten (10) business days after the last to occur of (i) the execution of this Agreement by De La Garza, (ii) actual receipt
by CipherLoc of the Subject Securities (as hereinafter defined) and consummation of the deliveries contemplated by Section 2 below
and (iii) the receipt by CipherLoc of a completed Internal Revenue Service form W-9 from De La Garza (such date, the “Settlement
Date”; and (b) $25,000 on each of the four (4) succeeding quarterly anniversaries of the Settlement Date; provided, that
in the event that De La Garza is not in compliance with this Agreement on any such payment date, then no payment shall be due
and CipherLoc shall have the right to pursue any and all remedies against De La Garza including, without limitation, seeking the
return of all amounts paid. The Settlement Amount shall be paid by CipherLoc by ACH transfer or wire transfer in accordance with
wire transfer instructions separately provided to Cipherloc by De La Garza.

 

2.
Transfer of the Subject Securities: As material consideration for the execution of this Agreement, De La Garza hereby
assigns and transfers to CipherLoc, and CipherLoc hereby accepts from De La Garza, free and clear of all liens, charges, security
interests, claims and encumbrances, 13,137,757 of the Shares (the “Subject Securities”). On the date of this Agreement,
De La Garza will complete and release the Trust Custody Delivery Transfer Request attached hereto as Exhibit A and instruct CipherLoc’s
transfer agent to initiate the transfer of the Subject Securities to CipherLoc via DWAC transfer (the “Instruction Letter”).
On the date of this Agreement, De La Garza will send by overnight delivery, return receipt requested, to the addressee on the
Instruction Letter, the original signed Instruction Letter together with the original certificate for the Company’s Common
Stock, certificate number CS2-46130 issued on 2/15/2018 for 13,500,000 shares of Common Stock endorsed in blank with stock transfer
tax stamps affixed and otherwise in good form for transfer via DWAC. De La Garza shall execute any other documents, transfer powers
or assignments necessary to effectuate the transfer and conveyance of the Subject Securities, including obtaining a medallion
guarantee (if required), and any and all actions required by CipherLoc’s transfer agent to complete the transfer of the
Subject Securities, and obtain a medallion guarantee De La Garza hereby irrevocably constitute and appoint on De La Garza’s
behalf any director or officer of CipherLoc as attorney-in-fact to make and execute all necessary documents and instruments of
assignment and transfer, to transfer ownership of the Subject Securities to CipherLoc on the books and records of CipherLoc. This
power of attorney is coupled with an interest and is irrevocable. The Parties agree that they are consummating the transactions
described in this Agreement by agreement and hereby waive compliance with any provisions of the certificate of incorporation,
bylaws or any other organizational document or shareholder agreement of CipherLoc to the extent they conflict with this Agreement.

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 2

     

    

 

3.
Resignation: Effective as of the date of this Agreement, De La Garza hereby resigns from the Board of Directors
of CipherLoc, as well as from any committees thereof or from other officer positions with the company that he may hold. De La
Garza agrees that this resignation is of his own free will and volition, and that he has no disagreements or other disputes with
the Board of Directors including, without limitation, relating to the governance or conduct of business of the Company. De La
Garza acknowledges and agrees that the current Board of Directors (including all committees thereof) was properly constituted,
appointed and elected, and all actions taken by the Board of Directors since May 15, 2019 are valid and effective.

 

4.
Tax Treatment: The parties agree that the payments made by CipherLoc to De La Garza pursuant to paragraph 1 represent
compensation to De La Garza and the transfer of Subject Securities made pursuant to paragraph 2 represent a repayment of stock
based compensation that was erroneously paid to De La Garza.

 

5.
Settlement Consideration/Mutual General Releases: The Parties, for themselves and their successors, heirs, purchasers,
and assigns hereby release, acquit, and discharge each other and each other’s parent companies, affiliates, subsidiaries,
successors, assigns, partners, agents, representatives, insurers, sureties, shareholders, officers, directors, attorneys, employees,
servants, and independent contractors of and from any and all past and present claims, demands, debts, rights, actions, damages
(including direct, indirect, incidental, special, consequential, and exemplary damages), costs, causes of action, suits at law
or in equity, expenses and fees of attorneys, expenses and fees of consultants and/or experts and all claims of any nature or
kind whatsoever, whether known or unknown, which the Parties may have had, may now have, or may have in the future against each
other by reason of any matter, cause, or thing arising out of, or in any manner connected with the purchase and ownership of the
Subject Securities, the Lawsuits and/or the Parties dealings with each other, including but not limited to, all claims made or
capable of being made against each other in the Lawsuits, and for any and all future damages arising out of or related to any
agreements between the Parties. It is the express intent of CipherLoc and De La Garza to fully, completely, and forever release
each other from any and all claims now existing, or which may hereafter arise, having anything to do, in any way, with the Subject
Securities, the Lawsuits or the Parties’ dealings with each other. The Parties agree that this release of claims is intended
to be a broadly construed “General Release” and includes any dispute, action or claim that is known or unknown to
each Party, including but not limited to, claims based on a breach of an express or implied contract; breach of the covenant of
good faith and fair dealing; any action arising in tort, including, but not limited to, securities fraud, fraud and deceit, negligent
misrepresentation, libel, slander, defamation, and/or any other claims arising from intentional or negligent misconduct; and any
and all other claims arising in the Lawsuit, under any court decision, statute, rule, regulations or otherwise of the United States,
the State of Texas, and/or any other state or local governmental authority, all as amended, and any other federal, state or local
statute, law, or ordinance, concerning the terms and conditions of the Agreements and/or the business relationship between or
among the Parties; and any claim arising under common law or by public policy, except claims or proceedings necessary to enforce
the provisions of this Settlement Agreement and claims that cannot be waived as a matter of law. It is understood and agreed that
this Settlement Agreement constitutes a full and final release covering all known, unknown, anticipated and unanticipated injuries,
debts, claims or damage that the Parties have, which have arisen, or which may have arisen, in connection with the business relationship
between the De La Garza and CipherLoc, as well as those injuries, debts, claims or damages not known or disclosed which have arisen,
or may have arisen, from said business dealings, up to the date that the Parties sign this Settlement Agreement. Further, it is
the express intent of De La Garza to fully, completely, and forever release Wilkinson and Ambrose from any and all claims now
existing, or which may hereafter arise, having anything to do, in any way, with their work or service as officers, directors,
or employees of CipherLoc, the Lawsuits or the Parties’ dealings with each other.

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 3

     

    

 

6.
Representations and Warranties (De La Garza): De La Garza warrants and represents that he solely owns, has not sold,
assigned, pledged granted or transferred, and will not sell, assign, pledge, grant or transfer to any other person, firm, corporation,
or business entity, any of De La Garza’s claims, causes of action, or ownership interests or any part thereof covered by
this Agreement. De La Garza agrees to indemnify CipherLoc, Wilkinson and Ambrose for any damages, attorney’s fees and/or
costs any of them incurs in litigation if any of the representations and/or warranties made by De La Garza in this Agreement is
proven to be untrue in a court of law or equity. De La Garza warrants and represents that he is the sole holder of record, of
the Subject Securities; that no other party has any security or other interest in the Subject Securities; that the Subject Securities
are not subject to any lien, claim or encumbrance; that he has good and marketable title to the Subject Securities; and that upon
the transfer of the Subject Securities contemplated by this Agreement, CipherLoc will obtain good and marketable title to the
Subject Securities, free of all liens, claims and encumbrances.

 

7.
Attorneys’ Fees and Costs: The Parties agree that each Party shall be solely responsible for its own respective
litigation fees, attorneys’ fees, expenses, and other costs and expenses incurred in connection with the execution and performance
of this Agreement and in connection with the Lawsuit.

 

8.
Dismissal: Immediately upon payment of the Settlement Amount but no later than three (3) business days after the
Settlement Date, De La Garza and his counsel shall execute and CipherLoc shall file with the court the agreed motions for dismissal
with prejudice, attached hereto as Exhibits “A,” and the proposed orders granting motions for dismissal with prejudice,
in the form attached hereto as Exhibit B (and any required related pleadings) that dismisses all of the claims in the Lawsuits,
with prejudice. De La Garza shall return the Settlement Amount if the Courts do not dismiss the Lawsuits with prejudice.

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 4

     

    

 

9.
Future Actions: In exchange for the consideration set forth in this Settlement Agreement, De La Garza agrees that
he will not directly or indirectly purchase shares or any interests in CipherLoc or any subsidiary of CipherLoc in the future.
In addition, De La Garza agrees that he and his affiliates (as defined in Rule 12b-2 under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) will not (and will not assist, provide or arrange financing to or for others or encourage
others to), directly or indirectly, acting alone or in concert with others, unless specifically requested in writing in advance
by the Company’s Board of Directors (or similar governing body) for the period commencing on the date of this Agreement
and ending on the 5th anniversary thereof: (i) acquire or agree, offer, seek or propose to acquire (or request permission to do
so), ownership (including, but not limited to, beneficial ownership as defined in Rule 13d-3 under the Exchange Act) of any of
the assets or businesses of the Company or any securities, bank debt or trade debt issued by the Company, or any rights or options
to acquire such ownership (including from a third party), (ii) seek or propose to influence or control the management or the policies
of the Company or to obtain representation on the Company’s Board of Directors, or solicit, or participate in the solicitation
of, any proxies, consents or votes with respect to any securities of the Company or with respect to any plan of reorganization
filed by the Company or any other person in connection with a bankruptcy or similar proceeding under state or federal law involving
the Company or any of its subsidiaries, (iii) enter into any discussions, negotiations, arrangements or understandings with any
third party with respect to any of the foregoing or (iv) seek or request permission to do any of the foregoing or make or seek
permission to make any public announcement with respect to any of the foregoing.

 

10.
Non-Disparagement: In exchange for the consideration set forth in this Agreement, De La Garza agrees not to make
any false or disparaging, derogatory or negative statements, comments or remarks about CipherLoc, Wilkinson, Ambrose, Sammy Davis,
Zeynep Young, David Chasteen, the board of directors as a whole, CipherLoc’s goods and services, management, valuation,
employees, contractors, officers, directors or attorneys. Likewise, CipherLoc agrees not to make any false or disparaging, derogatory
or negative statements, comments or remarks about De La Garza and shall instruct its officers and directors to do the same. Nothing
in this Agreement shall preclude any Party from testifying or providing truthful statements in accordance with any court order,
subpoena, summons or other legal process.

 

11.
Cooperation: De La Garza understands that CipherLoc is a party to litigation with certain third parties, including,
but not limited to, Robert LeBlanc, Eric Marquez and James LeGanke. De La Garza agrees that he will cooperate fully with any requests
or efforts by CipherLoc to secure his testimony in these disputes and will testify in depositions and otherwise, as requested
by CipherLoc. De La Garza shall immediately notify CipherLoc if he is requested to produce documents to or testify in any dispute
or proceedings in which CipherLoc is a party. De La Garza agrees and acknowledges that the Company may file this Agreement (including
any of its exhibits and schedules) with the Securities and Exchange Commission and make such other statements as are required
by applicable law, rule or regulation.

 

12.
Market Stand-Off: De La Garza hereby agrees that he will not, without the prior written consent of the managing
underwriter (which, for purposes of this provision, shall include placement agents and parties performing a similar function),
during the period commencing on the date of the closing of any sale by CipherLoc of any of its securities and ending on the date
specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days), or such other
period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other
distribution of research reports, and (2) analyst recommendations and opinions, including, but not limited to, the restrictions
contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto) (i) lend; offer;
pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option,
right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any
securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock (whether such shares or any
such securities are then owned by De La Garza or are thereafter acquired or (ii) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such
transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or
otherwise. The underwriters in connection with such registration are intended third-party beneficiaries of this provision and
shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. De La Garza further
agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that
are consistent with this provision or that are necessary to give further effect thereto.

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 5

     

    

 

13.
Proxy: In consideration of this Agreement, De La Garza hereby appoints Tom Wilkinson as the true and lawful representative
of the undersigned with full power of substitution and revocation, and authorizes him to vote all the shares of capital stock
of the Company which De La Garza is entitled to vote in connection with any stockholders meeting, any adjournment or postponement
thereof, and any written consent or other stockholder action, upon any and all matters to be voted upon in connection with such
action, and exercise all related rights (to the fullest extent that Stockholder is entitled to do so) with respect to all of the
shares of capital stock of the Company that now are or hereafter may be beneficially owned by Stockholder, and any and all other
shares or securities of the Company issued or issuable in respect thereof on or after the date hereof in accordance with the terms
of this provision, conferring authority upon such true and lawful attorney to vote in his discretion on all such matters as may
be presented for a vote of the Company’s stockholders, for a period of five years from the date of this Agreement. De La
Garza revokes any proxy heretofore given with respect to such capital stock and agrees not to grant any other proxies with respect
thereto during such five year period. This proxy is coupled with an interest and is irrevocable.

 

14.
No Admission of Liability: Notwithstanding any other provision, the Parties acknowledge and agree that this settlement
is a compromise of disputed claims and neither the existence of this Agreement, nor any recitals, terms, conditions, or other
statements contained in it, shall be construed as an admission of liability by or on the part of the Parties with respect to any
allegation or claim. The Parties do not admit, but expressly deny all liability for the claims asserted against them and enter
into this settlement solely to avoid the expense, uncertainties, and risks of further litigation. Consequently, no evidence relating
to the existence of the terms or negotiations of this Agreement, shall be admissible in the Lawsuits or in any other action, suit,
or legal proceeding as evidence of any liability, culpability, or fault of or on the part of either Party; provided, however,
that such evidence may be offered in a proceeding seeking to enforce the terms of this Agreement.

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 6

     

    

 

15.
Fully Informed: Each Party expressly warrants and represents that before executing this Agreement, it has fully
informed itself/himself/herself of the terms, conditions, and effect of this Agreement, that no promises or representations of
any kind have been made to it/him/her by or on behalf of anyone, except as expressly stated herein, and that it/him/her has had
the advice of counsel, if it/him/her so desired. Each Party acknowledges that it/him/her has entered into this Agreement voluntarily
and with full knowledge and understanding of its import. Each Party has read and fully understands the terms of this Agreement
and agrees to be bound hereby. Moreover, De La Garza, Wilkinson, Ambrose and CipherLoc agree that this Agreement was drafted,
reviewed, and agreed upon by both Parties, and, in the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as jointly drafted by the Parties and no presumption or burden of proof shall arise favoring or disfavoring
any Party by virtue of the authorship of any provision herein.

 

16.
Entire Agreement: This instrument, along with the exhibits hereto, contains the entire agreement between the Parties,
and all previous discussions, understandings, representations, negotiations, and agreements are merged herein. Additionally, the
consideration recited above is the full, complete, and entire consideration for this Agreement, and there is no further consideration
to be paid other than as recited herein. All representation and warranties contained in this Agreement shall survive the execution
and delivery of this Agreement and the delivery of the Subject Securities contemplated hereby, and shall continue in full force
and effect for the maximum period permitted by applicable law.

 

17.
Spousal Consent: Ms. De La Garza hereby expressly acknowledges and agrees to the provisions set forth herein relating
to the Subject Securities, which she may have an interest therein, including but not limited to the transfer and assignment of
the Subject Securities provided for in this Agreement. She hereby agrees that her interest, if any, in the Subject Securities,
is subject to the terms of this Agreement and she agrees to be bound by the terms of this Agreement. She also agrees that any
community property interest she may have in the Subject Securities is likewise bound by the terms of this Agreement. She also
acknowledges that the financial, legal and related matters in this Agreement are complex, and that she has the right to seek independent
guidance and counsel with respect to this Agreement, which she has either obtained or waived.

 

18.
Severability: If any provision or any part of this Agreement is found void or unenforceable, then the remainder
of this Agreement shall not be affected thereby.

 

19.
Binding Effect: This Agreement shall be binding upon and inure to the benefit of the Parties, and each of their
respective successors in interest, purchasers, and assigns.

 

20.
Authority to Execute: CipherLoc and De La Garza hereby represent and warrant that they each have the power and are
duly authorized to enter into this Agreement with regard to all matters described herein.

 

21.
Confidentiality: De La Garza agrees not to disclose, directly or indirectly, the terms of this Agreement, and/or
any fact concerning its negotiation, execution, or implementation, to anyone, including, but not limited to, any news media or
organization, or any social media; provided, however, that De La Garza may disclose the terms of this Agreement to: (i) his/her
counsel; (ii) pursuant to a court order; (iii) taxing authorities as necessary to comply with any statute; and (iv) as otherwise
required by law.

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 7

     

    

 

22.
Headings: The headings of the sections of this Agreement are for the convenience of reference only, are not to be
considered a part hereof, and shall not limit or otherwise affect any of the terms hereof or thereof.

 

23.
Counterparts: This Agreement may be signed in counterparts, each copy of which shall be deemed an original and all
of which together shall constitute one and the same instrument.

 

24.
Applicable Law and Arbitration: This Agreement will be governed by, and construed exclusively in accordance with,
the laws of the State of Texas. Any action arising out of or relating to this Agreement, the Subscription Agreement, or their
breach shall be referred to and finally settled by mandatory binding arbitration in Dallas, Texas. The parties agree that this
arbitration shall be governed by the Texas General Arbitration Act, Tex. Civ. Prac. & Rem. Code § 171 et seq. The Arbitration
shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures, except that notwithstanding anything
to the contrary in the JAMS rules, full discovery shall be permitted as allowed by the Texas Rules of Civil Procedure that govern
discovery. Such arbitration shall be conducted before a single arbitrator which shall be appointed by JAMS in accordance with
its rules. Judgment on a binding arbitration award may be entered in any court of competent jurisdiction. The Parties mutually
acknowledge that, by this agreement to arbitrate, each Party irrevocably waives it/him/her rights to court or jury trial. The
arbitration hearing shall be held within six months after the filing of the arbitration demand with JAMS. The Party prevailing
in any such arbitration shall be entitled to recover, and the arbitrator shall award to the prevailing Party, the reasonable attorneys’
fees incurred by the prevailing Party in connection with enforcing it/him/her rights under this Agreement.

 

25.
Notices: Any notice, request, instruction, or other document or communication required or permitted to be given
under this Settlement Agreement shall be in writing and shall be deemed given (i) upon receipt if delivered in person or by a
messenger or courier service; or (ii) three business days after being deposited in the U.S. mail, certified or registered, return
receipt requested, postage prepaid, with a courtesy copy, which does not constitute notice, delivered or emailed to the other
Party, as follows:

 

If
to CipherLoc, delivered to:

 

CipherLoc
Corporation

Attn:
Tom Wilkinson, Chairman of the Board of Directors

6836
Bee Caves Road

Building
1, Suite 279

Austin,
Texas 78746

Email:
twilkinson@cipherloc.net

 

With
copies to:

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 8

     

    

 

Dwight
M. Francis

Sheppard
Mullin Richter & Hampton LLP

2200
Ross Avenue, 24th Floor

Dallas,
Texas 75201

Email:
dfrancis@sheppardmullin.com

 

If
to De La Garza, delivered to:

 

Michael
De La Garza

1245
Perlita

Irvine,
California 92618

Email:
medpayusa@aol.com

 

With
copies to:

 

Paul
S. Kirklin

The
Kirklin Law Firm, P.C.

12600
N. Featherwood Drive, Suite 225

Houston,
Texas 77034

Email:
pkirklin@kirklinlaw.com

 

or
to such other address or addresses as may be specified in writing from time to time by any Party to the other Party.

 

THIS
AGREEMENT AND EXHIBITS, IF ANY, TOGETHER CONSTITUTE THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES EXCEPT BY AN AGREEMENT IN WRITING EXECUTED BY THE PARTY
TO BE CHARGED. THERE ARE NO ORAL, UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 9

     

    

 

IN
WITNESS WHEREOF, the undersigned, by its duly authorized officer(s), has hereunto set its hand and seal on the day and year first
written above.

 

	 	CIPHERLOC
    CORPORATION
	 	 	 
	 	By:	/s/ Thomas Wilkinson
	 	 	Thomas Wilkinson
	 	 	 
	 	Its:	Chairman of the
    Board of Directors
	 	 	 
	 	Date:	August 28, 2020

 

	STATE
    OF TEXAS	)
	 	)
	COUNTY
    OF TRAVIS	)

 

Personally
appeared before me this _______ day of ____________, 2020, ____________________ to me properly identified as the same; who acknowledged
that he has executed the foregoing instrument in his own free act and deed for the purposes therein expressed.

 

	 	 	(SEAL)
	NOTARY
    PUBLIC FOR TEXAS	 	 

 

My
Commission Expires:_________________

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 10

     

    

 

IN
WITNESS WHEREOF, the undersigned, by its duly authorized officer(s), has hereunto set its hand and seal on the day and year first
written above.

 

	 	/s/
    Thomas Wilkinson	 
	 	THOMAS WILKINSON	 
	 	 	 
	 	Date: August 28,
    2020	 

 

	STATE
    OF TEXAS	)
	 	)
	COUNTY
    OF TRAVIS	)

 

Personally
appeared before me this _______ day of ____________, 2020, ________________ to me properly identified as the same; who acknowledged
that he has executed the foregoing instrument in his own free act and deed for the purposes therein expressed.

 

	 	 	(SEAL)
	NOTARY
    PUBLIC FOR TEXAS	 	 

 

My
Commission Expires:___________________

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 11

     

    

 

IN
WITNESS WHEREOF, the undersigned, by its duly authorized officer(s), has hereunto set its hand and seal on the day and year first
written above.

 

	 	/s/
    Anthony Ambrose	 
	 	ANTHONY
    AMBROSE	 
	 	 	 
	 	Date:
    August 28, 2020	 

 

	STATE
    OF WASHINGTON	)
	 	)
	COUNTY
    OF KING	)

 

Personally
appeared before me this _______ day of ____________, 2020, ________________ to me properly identified as the same; who acknowledged
that he has executed the foregoing instrument in his own free act and deed for the purposes therein expressed.

 

		 	(SEAL)
	NOTARY
    PUBLIC FOR TEXAS	 	 

 

My
Commission Expires:_________________

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 12

     

    

 

IN
WITNESS WHEREOF, the undersigned, by its duly authorized officer(s), has hereunto set its hand and seal on the day and year first
written above.

 

	 	/s/
    Michael De La Garza	 
	 	MICHAEL
    DE LA GARZA	 
	 	 	 
	 	Date:
    August 28, 2020	 

 

	STATE
    OF CALIFORNIA	)
	 	)
	COUNTY OF ORANGE	)

 

Personally
appeared before me this _______ day of ____________, 2020, ________________ to me properly identified as the same; who acknowledged
that he has executed the foregoing instrument in his own free act and deed for the purposes therein expressed.

 

	 	 	(SEAL)
	NOTARY
    PUBLIC FOR CALIFORNIA	 	 

 

My
Commission Expires:____________________

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 13

     

    

 

IN
WITNESS WHEREOF, the undersigned, by its duly authorized officer(s), has hereunto set its hand and seal on the day and year first
written above.

 

	 	/s/
    Robin C. De La Garza	 
	 	ROBIN
    C. DE LA GARZA	 
	 	 	 
	 	Date:
    August 28, 2020_	 

 

	STATE
    OF CALIFORNIA	)
	 	)
	COUNTY
    OF ORANGE	)

 

Personally
appeared before me this _______ day of ____________, 2020, ________________ to me properly identified as the same; who acknowledged
that he has executed the foregoing instrument in his own free act and deed for the purposes therein expressed.

 

	 	 	(SEAL)
	NOTARY
    PUBLIC FOR CALIFORNIA	 	 

 

My
Commission Expires:___________________

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 14

     

    

 

EXHIBIT
A

 

    	SETTLEMENT AGREEMENT AND RELEASE	PAGE 15

     

    

 

Michael
De La Garza

1245
Perlita

Irvine,
CA 92618

 

August
28, 2020

 

Paul
Bednar

Client
Services Manager

Pacific
Stock Transfer Company

6725
Via Austi Pkwy., Ste. 300

Las
Vegas, NV 89119

 

Dear
Mr. Bednar:

 

Enclosed
here with please find stock certificate CS2-46130, issued on 2/15/2018 for 13,500,000 shares of Common Stock of CipherLoc Corporation.
Please return to the treasury of CipherLoc Corporation 13,137,757 of the shares represented by such certificate and return in
a new certificate the remaining 362,243 shares represented by such certificate to me at the address set forth above.

 

	 	Very
    truly yours,
	 	 
	 	Michael
    De La Garza

 

     

     

    

 

EXHIBIT
B

 

     

     

    

 

IN
THE UNITED STATES DISTRICT COURT

FOR
THE WESTERN DISTRICT OF TEXAS

AUSTIN
DIVISION

 

	CIPHERLOC
                                         CORPORATION, a Texas Corporation,

         

        Plaintiff,

         

        v.

         

        MICHAEL
        DE LA GARZA, an individual, MSR, LLC, and JAMES LAGANKE, as Trustee of the CARMEL TRUST II,

         

        Defendants.
	 	 

         

        Civil
        Action No. 1:19-CV-01147-LY

         

         

 

STIPULATED
MOTION TO DISMISS

 

Pursuant
to Rule 41(a)(1)(A)(ii) of the Federal Rules of Civil Procedure, Plaintiff CipherLoc Corporation (“Plaintiff”) and
Defendants Michael De La Garza and MSR, LLC (“Defendants”) hereby jointly move for judgment of dismissal as to Defendants.
Plaintiff hereby dismisses its complaint against Defendants with prejudice and Defendants dismiss all counterclaims, if any, against
Plaintiff with prejudice. Each party agrees to bear his/its own costs and attorneys’ fees

 

Dated:
September ___, 2020

 

	SHEPPARD,
    MULLIN, RICHTER & HAMPTON LLP	 	The
    Kirklin Law Firm, P.C.
	 	 	 
	/s/
    Dwight M. Francis	 	/s/
    Paul S. Kirklin
	Dwight
    M. Francis	 	Paul
    S. Kirklin
	 	 	 
	Texas
    Bar No. 00785877	 	Texas
    Bar No. 24070063
	Aimee
    C. Oleson	 	The
    Kirlin Law Firm, P.C.
	Texas
    Bar No. 24036391	 	12600
    N. Featherwood Drive, Suite 225
	2200
    Ross Avenue, 24th Floor	 	Houston,
    Texas 77034
	Dallas,
    Texas 75201	 	Telephone:
    (713) 571-8300
	Tel.
    (469) 391-7400	 	Facsimile:
    (281) 922-6240
	Fax
    (469) 391-7401	 	pkirklin@kirklinlaw.com
	dfrancis@sheppardmullin.com	 	 
	aoleson@sheppardmullin.com	 	 
	 	 	 
	Attorneys
    for Plaintiff	 	Attorney
    for Defendants Michael De La Garza and MSR, LLC

 

    	STIPULATED MOTION TO DISMISS
	PAGE 1

     

    

 

CAUSE
NO. D-1-GN-19-004708

 

	MICHAEL
                                         DE LA GARZA,

         

        Plaintiff,
	§

        §

        §

        §
	IN
    THE DISTRICT COURT OF 
	 

        v.

         
	§

        §

        §
	TRAVIS
    COUNTY, TEXAS
	TOM
                                         WILKINSON, ANTHONY AMBROSE, MANCHESTER MANAGEMENT PR, LLC and MANCHESTER EXPLORER, L.P.,

         

        Defendants.
	§

        §

        §

        §
	53RD
    JUDICIAL DISTRICT

 

AND

 

CAUSE
NO. D-1-GN-19-005253

 

	CIPHERLOC,
    INC.,	§	IN
    THE DISTRICT COURT OF
	 	 	 
	Plaintiff,	§	 
	 	§	 
	vs.	§	TRAVIS
    COUNTY, TEXAS
	 	§	 
	MICHAEL
    DE LA GARZA,	§	 
	 	 	 
	Defendant.	§	353RD
    JUDICIAL DISTRICT

 

STIPULATED
MOTION TO DISMISS

 

CipherLoc,
Inc. (“CipherLoc”) and Michael De La Garza (“De La Garza”), by and through their respective counsel, move
the Court for an order dismissing all of CipherLoc’s claims against De La Garza with prejudice and dismissing all of De
La Garza’s claims against CipherLoc, Anthony Ambrose, Tom Wilkinson and every other each party to these actions with prejudice.
This motion is based on the fact that the parties have resolved the dispute. Each party herein is responsible for costs and attorneys’
fees incurred by same.

 

    	STIPULATED MOTION TO DISMISS
	PAGE 2

     

    

 

Respectfully
submitted this ___ day of __________, 2020.

 

	Michael
    De La Garza	 	CipherLoc,
    Inc. 
	 	 	 
	/s/
    Paul S. Kirklin	 	/s/
    Dwight M. Francis
	Paul
    S. Kirklin	 	Dwight
    M. Francis
	 	 	 
	Texas
    Bar No. 24070063	 	Texas
    Bar No. 00785877
	The
    Kirlin Law Firm, P.C.	 	Sheppard
    Mullin Richter & Hampton, LLP
	12600
    N. Featherwood Drive, Suite 225	 	2200
    Ross Avenue, 24th Floor
	Houston,
    Texas 77034	 	Dallas,
    Texas 75201
	Telephone:
    (713) 571-8300	 	Telephone
    (469) 391-7400
	Facsimile:
    (281) 922-6240	 	Facsimile
    (469) 391-7401
	pkirklin@kirklinlaw.com	 	dfrancis@sheppardmullin.com
	 	 	 
	 	 	Attorneys
    for Plaintiff
	Anatole
    R. Barnstone	 	 
	Texas
    Bar No. 00793308	 	 
	1601
    Rio Grande Street, Suite 331	 	 
	Austin,
    Texas 78701	 	 
	Telephone:
    (512) 751-5957	 	 
	Facsimile:
    (512) 482-8095	 	 
	barnstonelaw@gmail.com	 	 
	 	 	 
	Stephen
    R. Kirklin	 	 
	Texas
    Bar No. 11523700	 	 
	529
    Stone Crossing	 	 
	Webster,
    Texas 77598	 	 
	Telephone:
    (713) 419-2789	 	 
	skirklin312@gmail.com	 	 
	 	 	 
	Attorneys
    for Defendant	 	 

 

    	STIPULATED MOTION TO DISMISS
	PAGE 3

     

    

 

EXHIBIT
C

 

     

     

    

 

IN
THE UNITED STATES DISTRICT COURT

FOR
THE WESTERN DISTRICT OF TEXAS

AUSTIN
DIVISION

 

	CIPHERLOC
                                         CORPORATION, a Texas Corporation,

         

        Plaintiff,

         

        v.

         

        MICHAEL
        DE LA GARZA, an individual, MSR, LLC, and JAMES LAGANKE, as Trustee of the CARMEL TRUST II,

         

        Defendants.
	 	 

         

        Civil
        Action No. 1:19-CV-01147-LY

         

         

 

ORDER
GRANTING STIPULATED MOTION TO DISMISS

 

Based
on the Stipulated Motion to Dismiss (the “Motion”), after reviewing pleadings and papers on file, being fully advised,
and for good cause appearing, the Court hereby GRANTS the Motion. Plaintiff CipherLoc Corporation’s claims against Michael
De La Garza and MSR, LLC are DISMISSED with prejudice and Michael De La Garza’s and MSR, LLC’s counterclaims, if any,
are DISMISSED with prejudice. All costs of court incurred to date shall be borne by the party previously incurring the same.

 

All
relief not expressly granted herein is denied.

 

	 	 
	 	JUDGE
PRESIDING

 

    	STIPULATED MOTION TO DISMISS
	PAGE 2

     

    

 

CAUSE
NO. D-1-GN-19-004708

 

	MICHAEL
    DE LA GARZA,	§

        §

        §

        §
	IN
    THE DISTRICT COURT OF 
	Plaintiff,	 	 
	 

        v.

         
	§

        §

        §
	TRAVIS
    COUNTY, TEXAS
	TOM
                                         WILKINSON, ANTHONY AMBROSE, MANCHESTER MANAGEMENT PR, LLC and MANCHESTER EXPLORER, L.P.,

         
	§

        §

        §

        §
	 
	Defendants.	 	53RD
    JUDICIAL DISTRICT

 

AND

 

CAUSE
NO. D-1-GN-19-005253

 

	CIPHERLOC,
    INC.,	§	IN
    THE DISTRICT COURT OF
	 	 	 
	Plaintiff,	§	 
	 	§	 
	vs.	§	TRAVIS
    COUNTY, TEXAS
	 	§	 
	MICHAEL
    DE LA GARZA,	§	 
	 	 	 
	Defendant.	§	353rd
    JUDICIAL DISTRICT

 

ORDER
GRANTING STIPULATED MOTION TO DISMISS

 

Based
on the Stipulated Motion to Dismiss (the “Motion”), after reviewing the pleadings and papers on file, being fully
advised, and for good cause appearing, the Court hereby GRANTS the Motion. This matter, including all claims and counterclaims,
is DISMISSED with prejudice. All costs of court incurred to date shall be borne by the party previously incurring the same.

All
relief not expressly granted herein is denied.

ORDERED
this ____ day of ___________, 2020.

 

	 	 
	 	JUDGE
PRESIDING

 

    	STIPULATED MOTION TO DISMISS
	PAGE 3

     

    

 

APPROVED
AS TO FORM:

 

	Michael
    De La Garza	 	CipherLoc,
    Inc. 
	 	 	 
	/s/
    Paul S. Kirklin	 	/s/
    Dwight M. Francis
	Paul
    S. Kirklin	 	Dwight
    M. Francis
	 	 	 
	Texas
    Bar No. 24070063	 	Texas
    Bar No. 00785877
	The
    Kirlin Law Firm, P.C.	 	Sheppard
    Mullin Richter & Hampton, LLP
	12600
    N. Featherwood Drive, Suite 225	 	2200
    Ross Avenue, 24th Floor
	Houston,
    Texas 77034	 	Dallas,
    Texas 75201
	Telephone:
    (713) 571-8300	 	Telephone
    (469) 391-7400
	Facsimile:
    (281) 922-6240	 	Facsimile
    (469) 391-7401
	pkirklin@kirklinlaw.com	 	dfrancis@sheppardmullin.com
	 	 	 
	Anatole
    R. Barnstone	 	Attorneys
    for Plaintiff
	Texas
    Bar No. 00793308	 	 
	1601
    Rio Grande Street, Suite 331	 	 
	Austin,
    Texas 78701	 	 
	Telephone:
    (512) 751-5957	 	 
	Facsimile:
    (512) 482-8095	 	 
	barnstonelaw@gmail.com	 	 
	 	 	 
	Stephen
    R. Kirklin	 	 
	Texas
    Bar No. 11523700	 	 
	529
    Stone Crossing	 	 
	Webster,
    Texas 77598	 	 
	Telephone:
    (713) 419-2789	 	 
	skirklin312@gmail.com	 	 
	Attorneys
    for Defendant	 	 

 

    	STIPULATED MOTION TO DISMISS
	PAGE 4Document

Exhibit 10.1 

AMENDMENT NO. 2 TO THE FORBEARANCE AGREEMENT, FOURTEENTH AMENDMENT, AND BORROWING BASE AGREEMENT
This AMENDMENT NO. 2 TO THE FORBEARANCE AGREEMENT, FOURTEENTH AMENDMENT, AND BORROWING BASE AGREEMENT (this “Agreement”) dated as of August 21, 2020 is by and among Lonestar Resources America Inc., a Delaware corporation (the “Borrower”), the Guarantors party hereto, the Lenders (as defined below) party hereto and Citibank, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”) and as issuing bank.
INTRODUCTION
The Borrower, the financial institutions party thereto from time to time (the “Lenders”), the Issuing Bank and Administrative Agent are parties to that certain Credit Agreement dated as of July 28, 2015 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, and as may be further amended or otherwise modified from time to time, the “Credit Agreement”).
The Borrower and the Guarantors are parties to that certain Forbearance Agreement, Fourteenth Amendment and Borrowing Base Agreement dated as of July 2, 2020 (as amended pursuant to the First Amendment (as defined below) (the “Forbearance Agreement”) among the Borrower, the Guarantors, certain Lenders party thereto as lenders and the Administrative Agent.
The Lenders and the Administrative Agent agreed to extend the Forbearance Termination Date and make certain other changes to the Forbearance Agreement pursuant to that certain Amendment No.1 to the Forbearance Agreement, Fourteenth Amendment and Borrowing Base Agreement, dated as of July 31, 2020 (the “First Amendment”), among, the Borrower, the Guarantors, certain Lenders and the Administrative Agent.
The Borrower has requested that the Lenders and the Administrative Agent agree to a further extension of the Forbearance Termination Date.

The Administrative Agent and the Lenders party hereto are willing to extend the Forbearance Termination Date, subject to the terms and conditions set forth herein.
THEREFORE, the Borrower, the Administrative Agent, the Lenders party hereto and the other parties hereto hereby agree to amend the Forbearance Agreement as follows:
AGREEMENT
Section 1. Definitions; References.  Capitalized terms used herein but not defined herein shall have the meanings given to such terms in the Credit Agreement or the Forbearance Agreement, as applicable, unless expressly provided to the contrary. 
Section 2. Amendments to the Forbearance Agreement.  The Forbearance Agreement is hereby amended as follows:
(a) Section 2(b) of the Forbearance Agreement is hereby amended to amend and restate clause (i) appearing in the first sentence in its entirety as follows: 
“(i) 5:00 p.m. Houston time, on September 11, 2020 and”; and
			
	

(b) Exhibit A to the Forbearance Agreement is hereby replaced in its entirety with Schedule 1 attached hereto.
Section 3. Conditions to Effectiveness.  This Agreement shall become effective on the date (such date, the “Amendment Effective Date”) and shall be enforceable against the parties hereto upon the occurrence of each of the following:
(c)  receipt by the Administrative Agent of this Agreement, duly and validly executed by the Borrower, the Administrative Agent, and the Majority Lenders;
(d) receipt by the Administrative Agent of an amendment agreement entered into between the Borrower and the requisite holders of the Borrower’s 11.25% senior notes due 2023 (such holders, the “Noteholders”) pursuant to which the Noteholders agree to extend the Forbearance Period under that certain Noteholder Forbearance Agreement dated as of July 31, 2020 (the “Noteholder Forbearance Agreement”), in form and substance reasonably satisfactory to the Administrative Agent, and duly and validly executed by the Borrower and the requisite Noteholders;
(e) no Default or Event of Default, including any Event of Default arising as a result of a breach of any term of the Forbearance Agreement as amended hereby, other than the Specified Defaults shall have occurred and be continuing as of the Amendment Effective Date;
(f) as of the Amendment Effective Date, the representations and warranties of the Borrower and the Guarantors set forth in the Credit Agreement and in the other Loan Documents, except as such relate to the Specified Defaults and Section 7.22 of the Credit Agreement, shall be true and correct in all material respects (without duplication of materiality), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the Amendment Effective Date, such representations and warranties shall continue to be true and correct in all material respects (without duplication of materiality) as of such specified earlier date; and
(g) the Borrower having paid all costs, expenses, and fees which have been invoiced and are payable pursuant to the Credit Agreement, the Loan Documents or this Agreement.
Section 4. Miscellaneous.
4.1 Confirmation.  Except as specifically modified hereby, the provisions of the Forbearance Agreement shall remain in full force and effect.
4.2. Representations and Warranties.  Each of the Loan Parties represents and warrants to the Administrative Agent and the Lenders that:
(a)  the representations and warranties set forth in the Credit Agreement and in the other Loan Documents, except as such relate to the Specified Defaults and Section 7.22 of the Credit Agreement, are true and correct in all material respects (except  to the extent such representation or warranty is already subject to a materiality qualifier, in which case such representation or warranty is true and correct in all respects) on and as of the date of this Agreement; 
(b) (i) the execution, delivery, and performance of this Agreement are within the corporate, limited partnership or limited liability company power, as appropriate, and authority of each such Loan Party and have been duly authorized by appropriate proceedings, (ii) this Agreement constitutes a legal, valid, and binding obligation of such Loan Party, enforceable in accordance with its 
			
	

2

terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general principles of equity and (iii) there are no governmental or other third party consents, licenses or approvals required in connection with the execution, delivery, performance, validity and enforceability of this Agreement; and
(c)  as of the effectiveness of this Agreement and after giving effect hereto, no Default or Event of Default, including any Event of Default arising as a result of a breach of any term of the Forbearance Agreement as amended hereby, other than the Specified Defaults, has occurred and is continuing.
4.3 This Agreement.  This Agreement is a Loan Document for the purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of the representations, warranties, and covenants under this Agreement shall be an immediate Event of Default, without grace period under the Credit Agreement.
4.4 Release.  For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Loan Party hereby, for itself and its successors and assigns, fully and without reserve, releases, acquits, and forever discharges each Secured Party, its respective successors and assigns, officers, directors, employees, representatives, trustees, attorneys, agents and each other Related Party of such Secured Party (collectively the “Released Parties” and individually a “Released Party”) from any and all actions, claims, demands, causes of action, judgments, executions, suits, debts, liabilities, costs, damages, expenses or other obligations of any kind and nature whatsoever, direct and/or indirect, at law or in equity, whether now existing or hereafter asserted, whether absolute or contingent, whether due or to become due, whether disputed or undisputed, whether known or unknown (INCLUDING, WITHOUT LIMITATION, ANY OFFSETS, REDUCTIONS, REBATEMENT, CLAIMS OF USURY OR CLAIMS WITH RESPECT TO THE NEGLIGENCE OF ANY RELEASED PARTY) (collectively, the “Released Claims”), for or because of any matters or things occurring, existing or actions done, omitted to be done, or suffered to be done by any of the Released Parties, in each case, on or prior to the Amendment Effective Date and are in any way directly or indirectly arising out of or in any way connected to any of this Agreement, the First Amendment, the Forbearance Agreement, the Credit Agreement, any other Loan Document, or any of the transactions contemplated hereby or thereby (collectively, the “Released Matters”).  Each Loan Party, by execution hereof, hereby acknowledges and agrees that the agreements in this Section 4.4 are intended to cover and be in full satisfaction for all or any alleged injuries or damages arising in connection with the Released Matters herein compromised and settled.  Each Loan Party hereby further agrees that it will not sue any Released Party on the basis of any Released Claim released, remised and discharged by the Loan Parties pursuant to this Section 4.4.  In entering into this Agreement, each Loan Party consulted with, and has been represented by, legal counsel and expressly disclaim any reliance on any representations, acts or omissions by any of the Released Parties and hereby agrees and acknowledges that the validity and effectiveness of the releases set forth herein do not depend in any way on any such representations, acts and/or omissions or the accuracy, completeness or validity hereof.  The provisions of this Section 4.4 shall survive the termination of this Agreement, the First Amendment, the Forbearance Agreement, the Credit Agreement and the other Loan Documents, the payment in full of the Obligations and the termination of the Commitments.  Each Loan Party understands, acknowledges, and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for any injunction against any action, suit, or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
			
	

3

4.5 Counterparts.  This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed an original, but all of which constitute one instrument.  In making proof of this Agreement, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or by e-mail “PDF” copy shall be effective as delivery of a manually executed counterpart of this Agreement.
4.6 Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted pursuant to the Credit Agreement.
4.7 Invalidity.  In the event that any one or more of the provisions contained in this Agreement shall be held invalid, illegal or unenforceable in any respect under any applicable Governmental Requirement, the validity, legality, and enforceability of the remaining provisions contained herein or therein shall not be affected or impaired thereby.
4.8 Incorporation of Certain Provisions by Reference.  This Agreement and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this AGREEMENT and the transactions contemplated hereby shall be governed by, and construed in accordance with, the law of the State of Texas. The other provisions of Section 12.09 of the Credit Agreement captioned “Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial” are incorporated herein by reference for all purposes.
4.9 Entirety, Etc.  THIS AGREEMENT, THE FIRST AMENDMENT, THE FORBEARANCE AGREEMENT, THE CREDIT AGREEMENT AND ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 
[The remainder of this page has been left blank intentionally.]

			
	

4

EXECUTED to be effective as of the date first set forth above.

BORROWER: LONESTAR RESOURCES AMERICA INC.

By: /s/ Frank D. Bracken III
Name: Frank D. Bracken III
Title: CEO

Amendment No. 2 to the Forbearance Agreement

Signature Page

GUARANTORS: ALBANY SERVICES L L C
        AMADEUS PETROLEUM INC.
        T-N-T ENGINEERING, INC.

Each by: /s/ Frank D. Bracken III
Name: Frank D. Bracken III
Title: CEO

EAGLEFORD GAS, LLC
EAGLEFORD GAS 2, LLC
EAGLEFORD GAS 3, LLC
EAGLEFORD GAS 4, LLC
EAGLEFORD GAS 5, LLC
EAGLEFORD GAS 6, LLC
EAGLEFORD GAS 7, LLC
EAGLEFORD GAS 8, LLC
EAGLEFORD GAS 10, LLC
EAGLEFORD GAS 11, LLC
LONESTAR OPERATING, LLC
LONESTAR RESOURCES, INC.
POPLAR ENERGY, LLC
LA SALLE EAGLE FORD GATHERING LINE LLC
LONESTAR BR DISPOSAL LLC

Each by: /s/ Frank D. Bracken III
Name: Frank D. Bracken III
Title: CEO

Amendment No. 2 to the Forbearance Agreement

Signature Page

ADMINISTRATIVE AGENT, ISSUING BANK:

CITIBANK, N.A.,

By:  /s/ Bryan McDavid
Name: Bryan McDavid
Title: Senior Vice President

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: CITIBANK, N.A.

By:  /s/ Bryan McDavid
Name:   Bryan McDavid
Title:    Senior Vice President

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: ABN AMRO CAPITAL USA LLC

By: /s/ H. Diogo
Name:  H. Diogo
Title:

By: /s/ K. Hall
Name:   K. Hall
Title:

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: COMERICA BANK

By:  /s/ Chris Reed
Name:   Chris Reed
Title:   Vice President

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: BARCLAYS BANK PLC

By: /s/ Sydney G. Dennis

Name: Sydney G. Dennis
Title: Director

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: JPMORGAN CHASE BANK, N.A.

By:   /s/ Michael Kamauf

Name: Michael Kamauf
Title:  Authorized Officer

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: TRUIST BANK, as successor by merger
        to SunTrust Bank

By:  /s/ William S. Krueger
Name:  William S. Krueger
Title:    Senior Vice President

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: FIFTH THIRD BANK, NATIONAL ASSOCIATION

By:    /s/ David R. Garcia   
Name:  David R. Garcia
Title: Vice President

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: IBERIABANK

By:  /s/ W. Bryan Chapman   
Name: W. Bryan Chapman
Title:  Market President-Energy Lending

Amendment No. 2 to the Forbearance Agreement

Signature Page

LENDER: HANCOCK WHITNEY BANK

By:  /s/ Parker U. Mears
Name:   Parker U. Mears
Title:  Senior Vice President

Amendment No. 2 to the Forbearance Agreement

Signature Page

SCHEDULE 1
EXHIBIT A
(Specified Defaults)
1.Event of Default pursuant to Section 10.01(d) of the Credit Agreement arising from the Borrower’s failure to comply with the current ratio covenant set forth in Section 9.01(b) of the Credit Agreement with respect to the fiscal quarter ended March 31, 2020.

2.Any Default or Event of Default pursuant to Section 10.01(f) or (g) of the Credit Agreement arising from the Borrower’s failure to make a payment in respect of the 11.25% senior notes due 2023, when and as the same becomes due and payable on July 1, 2020.

3.An Event of Default pursuant to Section 10.01(d) of the Credit Agreement arising from the Borrower’s failure to comply with the leverage ratio covenant set forth in Section 9.01(a) of the Credit Agreement with respect to the fiscal quarter ended June 30, 2020.

4.An Event of Default pursuant to Section 10.01(d) of the Credit Agreement arising from the Borrower’s failure to comply with the current ratio covenant set forth in Section 9.01(b) of the Credit Agreement with respect to the fiscal quarter ended June 30, 2020.

5.An Event of Default pursuant to Section 10.01(b) of the Credit Agreement arising from the Borrower’s failure to make a payment in respect of the Borrowing Base Deficiency notified to the Borrower on July 2, 2020 and as set forth in Section 2.07(f)(ii) of the Credit Agreement, when and as the same becomes due and payable on August 31, 2020.

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