Document:

Blueprint

 

EXHIBIT 4.2

 

ELDORADO GOLD CORPORATION

 

INCENTIVE STOCK OPTION PLAN

 

Effective as of June 21, 2018

 

1.            

Purposes of the Plan

 

1.1          

The purposes of
this Plan are to (a) assist the Company in attracting, retaining
and motivating senior officers, employees and consultants of the
Company and of its related entities; and (b) closely align the
personal interests of such officers, employees and consultants with
those of the shareholders by providing them with the opportunity,
through options, to acquire common shares in the capital of the
Company.

 

2.            

Definitions

 

2.1          

For the purposes of
the Plan, the following terms have the respective meanings set
forth below:

 

(a) 

“Black-Out Period” means that
period during which a trading black-out period is imposed by the
Company to restrict trades in the Company’s securities by an
Eligible Person;

 

(b) 

“Board” means the board of
directors of the Company;

 

(c) 

“Business Combination” has the
meaning ascribed to the term in Subsection 10.7
hereof;

 

(d) 

“Cause” means any act, which at
common law in the applicable jurisdiction, would be considered
cause for dismissal without the obligation to provide notice or pay
in lieu of notice;

 

(e) 

“Change of Control”
means:

 

(i) 

an acquisition of
40% or more of the
voting rights attached to all outstanding voting shares of the
Company by a person or combination of persons acting in concert by
virtue of an agreement, arrangement, commitment or understanding,
or by virtue of a related series of such events, and whether by
transfer of existing shares or by issuance of shares from treasury
or both; or

 

(ii) 

the amalgamation,
consolidation or combination of the Company with, or merger of the
Company into, any other person, whether by way of amalgamation,
arrangement or otherwise, unless (1) the Company is the surviving
person or the person formed by such amalgamation, consolidation or
combination, or into which the Company has merged, is a corporation
and (2) immediately after giving effect to such transaction at
least 60% of the voting rights attached to all outstanding voting
shares of the Company or the corporation resulting from such
amalgamation, consolidation or combination, or into which the
Company is merged, as the case may be are owned by persons who held
the voting rights attached to all outstanding voting shares of the
Company immediately before giving effect to such transaction;
or

 

 

 

 

 

 

(iii) 

the direct or
indirect transfer, conveyance, sale, lease or other disposition, by
virtue of a single event or a related series of such events, of 90%
or more of the assets of the Company based on gross fair market
value to any person unless (1) such disposition is to a corporation
and (2) immediately after giving effect to such disposition, at
least 60% of the voting rights attached to all outstanding voting
shares of such corporation are owned by the Company or its related
entities or by persons who held the voting rights attached to all
outstanding voting shares of the Company immediately before giving
effect to such disposition; or

 

(iv) 

at least 50% of the
directors constituting the Board cease to be directors as a result
of, in connection with, or pursuant to a contract relating to (a) a
Change of Control as defined in paragraphs (i), (ii) or (iii), or
(b) an actual or threatened contest with respect to the election or
removal of directors or other actual or threatened solicitation of
proxies by or on behalf of a person or persons (other than a
solicitation that was approved by directors constituting a majority
of the Board);

 

(f) 

“Company” means Eldorado Gold
Corporation;

 

(g) 

“Compensation Committee” means the
compensation committee of the Board and if there is none, means the
full Board;

 

(h) 

“Consultant” has the same meaning
ascribed to that term under Section 2.22 of NI 45-106 and
shall only include those persons who may participate in an
“Employee Benefit Plan” as set forth in Rule 405 of the
U.S. Securities Act;

 

(i) 

“Eligible Person” means, from time
to time, a full-time or part-time employee of the Company or of a
related entity of the Company, including any officer of the
Company, a Consultant of the Company or of a related entity of the
Company;

 

(j) 

“Exchange” means, if the Shares are
listed on the TSX, the TSX and, if the Shares are not listed on the
TSX, any other principal exchange upon which the Shares are
listed;

 

(k) 

“Executive Officer” means an
executive officer of the Company appointed as such by a resolution
of the Board;

 

(l) 

“Grant Date” has the meaning
ascribed to that term in Subsection 5.1 hereof;

 

(m) 

“Insider” means a reporting insider
as defined under National Instrument 55-104 – Insider Reporting Requirements and
Exemptions;

 

 

 

 

 

 

(n) 

“Market Value” of a Share means, on
any given day, the closing trading price per share of the Shares on
the Exchange on the trading day immediately preceding the relevant
date;

 

(o) 

“NI 45-106” means National
Instrument 45-106 – Prospectus and Registration
Exemptions;

 

(p) 

“Option” means an option, granted
pursuant to Section 5 hereof, to purchase a Share;

 

(q) 

“Option Agreement” has the meaning
ascribed to that term in Section 7 hereof;

 

(r) 

“Option Period” has the meaning
ascribed to that term in Subsection 6.3 hereof;

 

(s) 

“Option Price” means the price per
Share at which Shares may be purchased under the Option, as
determined pursuant to Paragraph 5.1(b) hereof and as may be
adjusted in accordance with Section 10 hereof;

 

(t) 

“Optionee” means an Eligible Person
to whom an Option has been granted;

 

(u) 

“Plan” means the Incentive Stock
Option Plan of the Company as set forth herein as the same may be
amended and/or restated from time to time;

 

(v) 

“related entity” has the meaning
ascribed to that term in Section 2.22 of
NI 45-106;

 

(w) 

“Securities Regulators” has the
meaning ascribed to that term in Section 11 hereof;

 

(x) 

“security based compensation
arrangement” means

 

(i) 

stock option plans
of the Company for the benefit of employees, insiders, service
providers or any one of such groups;

 

(ii) 

individual stock
options granted to employees, service providers or insiders if not
granted pursuant to a plan previously approved by the
Company’s shareholders;

 

(iii) 

stock purchase
plans where the Company provides financial assistance or where the
Company matches the whole or a portion of the securities being
purchased;

 

(iv) 

stock appreciation
rights involving issuances of securities from treasury of the
Company;

 

(v) 

any other
compensation or incentive mechanism involving the issuance or
potential issuances of securities from treasury of the Company;
and

 

 

 

 

 

 

(vi) 

security purchases
from treasury by an employee, insider or service provider which is
financially assisted by the Company by any means
whatsoever,

 

and for
greater certainty, arrangements which do not involve the issuance
from treasury or potential issuance from treasury of the Company
are not security based compensation arrangements;

 

(y) 

“Share” means, subject to Section
10 hereof, a Common share without nominal or par value in the
capital of the Company;

 

(z) 

“Shareholder” means a registered
holder of Shares of the
Company;

 

(aa) 

“Take-Over Bid” has the meaning
ascribed to the term in Subsection 10.6 hereof;

 

(bb) 

“Trading Day” means any day on
which the Exchange is open for trading of Shares provided that if
the Shares are no longer listed on any stock exchange, means any
day which is a business day in British Columbia;

 

(cc) 

“TSX” means the Toronto Stock
Exchange; and

 

(dd) 

“U.S. Securities Act” means the
United States Securities Act of 1933, as amended.

 

2.2          

Unless otherwise
indicated, all dollar amounts referred to in this Plan are in
Canadian funds.

 

2.3          

As used in this
Plan,

 

(a) 

unless the context
otherwise requires, words importing the masculine gender shall
include the feminine and neuter genders, words importing the
singular shall include the plural and vice versa;

 

(b) 

unless the context
otherwise requires, the expressions “herein”, “hereto”, “hereof”,” hereunder” or other similar terms
refer to the Plan as a whole, together with the appendices and
schedules, and references to a Section, Subsection, paragraph,
Appendix or Schedule by number or letter or both refer to the
Section, Subsection, paragraph, Appendix or Schedule, respectively,
bearing that designation in the Plan; and

 

(c) 

the term
“include” (or
words of similar import) is not limiting whether or not
non-limiting language (such as “without limitation” or words of
similar import) is used with reference thereto.

 

3.         

Administration of the Plan

 

3.1         

The Plan shall be
administered by the Compensation Committee.

 

 

 

 

 

 

3.2          

The Compensation
Committee shall, periodically, after consulting with the Executive
Officers, make grants to such Employees and Consultants who are not
Executive Officers as it determines and report to the Board as to
such grants of Options.

 

3.3          

The Chief Executive
Officer of the Company shall periodically make recommendations to
the Compensation Committee as to the grant of Options to Executive
Officers. The Compensation Committee shall, periodically, after
considering the Chief Executive Officer’s recommendations,
make recommendations to the Board as to the grant of options to
Executive Officers. For greater certainty, the Compensation
Committee shall not have the power to make grants of options to
Executive Officers unless explicitly delegated the power to do so
by the full Board.

 

3.4          

In addition to the
powers granted to the Board under the Plan and subject to the terms
of the Plan, the Board shall have full and complete authority to
grant Options, to interpret the Plan, to prescribe such rules and
regulations as it deems necessary for the proper administration of
the Plan and to make such determinations and to take such actions
in connection therewith as it deems necessary or advisable. Any
such interpretation, rule, determination or other act of the Board
shall be conclusively binding upon all persons.

 

3.5          

The Board may
delegate any or all of its authority, rights, powers and discretion
with respect to the Plan to the Compensation Committee. Upon any
such delegation the Compensation Committee as well as the Board,
shall be entitled to exercise any or all such authority, rights,
power and discretion with respect to the Plan and when used in the
context of this Plan “Board” shall be deemed to include
the Compensation Committee.

 

3.6         

The Board may
authorize one or more officers of the Company to execute and
deliver and to receive documents on behalf of the
Company.

 

4.          

Shares Subject to the Plan

 

4.1          

Effective June 21,
2018, the maximum number of Shares which may be issued under the
Plan from and after June 21, 2018 shall not exceed 47,924,118
Shares, subject to adjustment as provided in
Section 10.

 

4.2          

In no event shall
Options be granted entitling any one Optionee to purchase in excess
of one half of one percent (0.5%) of the issued and outstanding
Shares on a non-diluted basis on the Grant Date of the
Options.

 

4.3          

No Options may be
granted to non-employee directors of the Company or a related
entity of the Company under this Plan.

 

4.4          

Notwithstanding
anything in this Plan to the contrary:

 

(a) 

the maximum number
of Shares issuable pursuant to Options granted under the Plan to
Insiders, together with the number of Shares issuable to Insiders
pursuant to Options granted under any other security based
compensation arrangements, shall not exceed 9% of the Shares issued
and outstanding on a non-diluted basis at the Grant Date of the
Options; and

 

 

 

 

 

 

(b) 

within any one-year
period, the maximum number of Shares issued pursuant to Options
granted under the Plan to Insiders, together with the number of
Shares issued to Insiders pursuant to Options granted under any
other security based compensation arrangements, shall not exceed 9%
of the Shares issued and outstanding on a non-diluted
basis.

 

Any
entitlement to acquire Shares granted pursuant to the Plan or
otherwise prior to the grantee becoming an Insider shall be
excluded for the purpose of the limits set out above.

 

4.5          

Options may be
granted in respect of authorized and unissued Shares. Shares in
respect of which Options have expired, cancelled or otherwise
terminated for any reason (other than exercise of the Options)
shall be available for subsequent Options under the
Plan.

 

4.6          

No fractional
Shares may be purchased or issued under the Plan.

 

5.          

Grants of Options

 

5.1          

Subject to the
provisions of the Plan, the Board shall, in its sole discretion and
from time to time, determine those Eligible Persons to whom Options
shall be granted and the date on which such Options are to be
granted (the “Grant
Date”). The Board shall also determine, in its sole
discretion, in connection with each grant of Options:

 

(a) 

the number of
Options to be granted;

 

(b) 

the Option Price
applicable to each Option, provided that the Option Price shall not
be less than the Market Value per Share on the Grant Date;
and

 

(c) 

the other terms and
conditions (which need not be identical and which, without
limitation, may include non-competition provisions) of all Options
covered by any grant.

 

6.          

Eligibility, Vesting and Terms of Options

 

6.1          

Options may be
granted to Eligible Persons only.

 

6.2          

Subject to the
adjustments provided for in Section 10 hereof, each Option shall
entitle the Optionee to purchase one Share.

 

6.3          

The option period
(the “Option
Period”) of each Option commences on the Grant Date
and expires no later than at 4:30 p.m. Vancouver time on the fifth
anniversary of the Grant Date. If an Option expires during a
Black-Out Period, then, notwithstanding any other provision of the
Plan, the Option shall expire 10 business days after the Black-Out
Period is lifted by the Company.

 

6.4          

Without restricting
the authority of the Board in respect of the terms of Options to be
granted hereunder, the Board may at its discretion, in respect of
any such Option, provide that the right to exercise such Option
will vest in instalments over the life of the Option or on the
achievement of performance vesting targets determined by the Board
at its discretion, with the Option being fully-exercisable only
when such required time period or periods have elapsed or the
performance targets have been met as determined by the Board in its
sole discretion, as the case may be, and in connection therewith
determine the terms under which vesting of the Options may be
accelerated.

 

 

 

 

 

 

6.5          

Any Optionee whose
employment or engagement is terminated:

 

(a) 

by the Company or a
related entity of the Company, as applicable, for any reason other
than for Cause or in the case of a Consultant, breach of contract,
at any time in the 12 months following a Change of Control of
the Company, or

 

(b) 

by the Optionee, if
the Company or a related entity of the Company, as applicable,
makes a material adverse change in the location, salary, duties or
responsibilities assigned to the Optionee, at any time in the 12
months following a Change of Control of the Company and the
Optionee has provided notice in writing to the Company within 30
days of such material adverse change to terminate employment or
engagement,

 

then
any outstanding Options that have not yet vested on the date of
termination shall be deemed to have vested on such
date.

 

6.6          

Subject to Section
8, an Option which is not subject to vesting, may be exercised (in
each case rounded down to the nearest full Share) at any time
during the Option Period. Subject to Section 8, an Option which is
subject to vesting, may once vested in accordance with the vesting
terms, be exercised (in each case rounded down to the nearest full
Share) at any time during the Option Period.

 

6.7          

An Option is
personal to the Optionee and is non-assignable and non-transferable
otherwise than by will or by the laws governing the devolution of
property in the event of death of the Optionee.

 

7.          

Option Agreement

 

7.1          

Upon the grant of
an Option, the Company and the Optionee shall enter into an option
agreement, in a form set out in Appendix A or in such form as
approved by the Board (the “Option Agreement”), subject to the
terms and conditions of the Plan, which agreement shall set out the
Optionee’s agreement that the Options are subject to the
terms and conditions set forth in the Plan as it may be amended or
replaced from time to time, the Grant Date, the name of the
Optionee, the Optionee’s position with or relationship to the
Company or a related entity of the Company, as applicable, the
number of Options, the Option Price, the expiry date of the Option
Period and any vesting or other terms and conditions as the Board
may deem appropriate.

 

8.            

Termination of Employment, Engagement or Directorship

 

8.1          

With respect to
Optionees that are Executive Officers:

 

 

 

 

 

 

(a) 

in the event such
Optionee’s employment or engagement terminates for any reason
other than death or for Cause, the Optionee may exercise any Option
granted hereunder to the extent such Option was exercisable and had
vested on the date of termination no later than 365 days after such termination or such
later date within the Option Period first established by the Board
for such Option as the Board may fix; provided, however, that in no
event shall any Option be exercisable following the expiration of
the Option Period applicable thereto; and

 

(b) 

in the event such
Optionee’s employment or engagement is terminated for Cause,
each Option held by the Optionee that has not been effectively
exercised prior to such termination shall lapse and become null and
void immediately upon such termination.

 

8.2          

With respect to
Optionees that are not Executive Officers:

 

(a) 

in the event such
Optionee’s employment or engagement terminates for any reason
other than death or for Cause, the Optionee may exercise any Option
granted hereunder to the extent such Option was exercisable and had
vested on the date of termination no later than 30 days after such termination or such
later date within the Option Period first established by the Board
for such Option as the Board may fix; provided, however, that in no
event shall any Option be exercisable following the expiration of
the Option Period applicable thereto; and

 

(b) 

in the event such
Optionee’s employment or engagement is terminated for Cause,
each Option held by the Optionee that has not been effectively
exercised prior to such termination shall lapse and become null and
void immediately upon such termination.

 

8.3          

In the event of the
death of an Optionee, either while in the employment or engagement
of the Company, the Optionee’s estate may, within 365 days
from the date of the Optionee’s death, exercise any Option
granted hereunder to the extent such Option was exercisable and had
vested on the date of the Optionee’s death; provided,
however, that no Option shall be exercisable following the
expiration of the Option Period applicable thereto. The
Optionee’s estate shall include only the executors or
administrators of such estate and persons who have acquired the
right to exercise such Option directly from the Optionee by bequest
or inheritance.

 

8.4          

The Board may also
in its sole discretion increase the periods permitted to exercise
all or any of the Options covered by any Grant following a
termination of employment or engagement as provided in Subsections
8.1, 8.2 or 8.3 above, if allowable under applicable law; provided,
however, that in no event shall any Option be exercisable following
the expiration of the Option Period applicable
thereto.

 

8.5          

The Plan shall not
confer upon any Optionee any right with respect to a continuation
of employment or engagement of, the Company or a related entity of
the Company nor shall it interfere in any way with the right of the
Company or a related entity of the Company to terminate any
Optionee’s employment or engagement at any time.

 

8.6          

Unless otherwise
agreed to in writing by the Board in accordance with this Section,
any reference to “termination”, “date of termination” or similar
references in the Plan:

 

 

 

 

 

 

(a) 

in the case of an
employee, is deemed to be the last day of active employment with
the Company or its related entity, as applicable, regardless of any
salary continuance or notice period provided or required under
applicable law or the reason for termination of employment (whether
with or without Cause or with or without notice); and

 

(b) 

in the case of a
Consultant, is deemed to be to the date that the relevant agreement
pursuant to which the Consultant is engaged by the Company or any
related entity of the Company, as applicable it
terminated;

 

it
being understood that any such reference means termination from the
last position that the Eligible Person had with the Company or any
related entity of the Company, as applicable (whether Options were
granted under this Plan or any previous equity incentive
plan).

 

8.7          

For greater
certainty (and subject to Subsections 6.5 and 8.6), an Option that
has not become vested on the date that the relevant termination
event referred to in this Section 8 occurred, shall not be or
become exercisable and shall be cancelled.

 

8.7          

If the date
pursuant to which any Option would cease to be exercisable pursuant
to Subsections 8.1, 8.2 or 8.3, in respect of the termination,
other than for Cause, of any Eligible Person, occurs during a
Black-Out Period, then, notwithstanding any other provision of the
Plan, the Option shall continue to be exercisable on or before the
date that is 10 business days after the Black-Out Period is lifted
by the Company.

 

9.          

Exercise of Options

 

9.1          

Subject to the
provisions of the Plan, an Option may be exercised from time to
time by delivery to the Company at its head office of a written
notice of exercise addressed to the Chief Executive Officer, the
President, the Chief Financial Officer or the Corporate Secretary
of the Company specifying the number of Shares with respect to
which the Option is being exercised, together with the appropriate
form of payment (to be determined by the Company) for the aggregate
of the Option Prices to be paid for the Shares to be purchased.
Certificates for such Shares shall be issued and delivered to or to
the direction of the Optionee within a reasonable time following
the receipt of such notice and payment.

 

10.          

Adjustment on Alteration of Share Capital

 

10.1          

In the event of a
subdivision, consolidation or reclassification of outstanding
Shares or other capital adjustment, the number of Shares reserved
or authorized to be reserved under the Plan, the number of Shares
receivable on the exercise of an Option and the Option Price
therefor shall be increased or reduced proportionately and such
other adjustments shall be made as may be deemed necessary or
equitable by the Board in its sole discretion and such adjustment
shall be binding for all purposes.

 

10.2          

If the Company
amalgamates, consolidates or combines with or merges with or into
another body corporate, whether by way of amalgamation, arrangement
or otherwise (the right to do so being hereby expressly reserved),
any Share receivable on the exercise of an Option shall be
converted into the securities, property or cash which the Optionee
would have received upon such amalgamation, consolidation,
combination or merger if the Optionee had exercised his or her
Option immediately prior to the effective date of such
amalgamation, consolidation, combination or merger and the Option
Price shall be adjusted as may be deemed necessary or equitable by
the Board in its sole discretion and such adjustment shall be
binding for all purposes of the Plan.

 

 

 

 

 

 

10.3          

In the event of a
change in the Company’s currently authorized Shares which is
limited to a change in the designation thereof, the shares
resulting from any such change shall be deemed to be Shares within
the meaning of the Plan.

 

10.4          

In the event of any
other change affecting the Shares, such adjustment, if any, shall
be made as may be deemed necessary or equitable by the Board in its
sole discretion to properly reflect such event and such adjustment
be binding for all purposes of the Plan.

 

10.5          

No adjustment
provided in this Section 10 shall require the Company to issue a
fractional Share and the total adjustment with respect to each
Option shall be limited accordingly.

 

10.6          

If, at any time
when an Option granted under the Plan remains unexercised, an offer
(“Take-Over
Bid”) to purchase all or substantially all of the
Shares of the Company is made by a third party by means of a
take-over bid circular, the Company shall use its best efforts to
bring such offer to the attention of the Optionee as soon as
practicable and the Board may, in a fair and equitable manner, at
its option, require the acceleration of the time for the exercise
of the Options granted under the Plan and of the time for or waiver
of the fulfillment of any conditions or restrictions on such
exercise (including without limitation, vesting
requirements).

 

10.7          

Notwithstanding any
other provision herein, if because of a proposed merger,
amalgamation or other corporate arrangement or reorganization, the
exchange or replacement of Shares in the Company for securities,
property or cash in or from another company is imminent
(“Business
Combination”), the Board may, in a fair and equitable
manner, at its option determine the manner in which all unexercised
option rights granted under the Plan shall be treated including,
for example, requiring the acceleration of the time for the
exercise of such rights by the Optionees and of the time for or the
waiver of the fulfillment of any conditions or restrictions on such
exercise (including without limitation, vesting requirements) or
providing that any Share which would be receivable prior to the
effective time of the Business Combination on the exercise of an
Option be replaced with the securities, property or cash which the
Optionee would have received if the Optionee had exercised his or
her Option immediately prior to the effective time of the Business
Combination and make any necessary adjustment, including
adjustments to the Option Price, as may be deemed necessary or
equitable by the Board in its sole discretion. All determinations
of the Board under this Subsection 10.7 shall be binding for all
purposes of the Plan. Any adjustments made by the Board in the
context of a Business Combination are subject to TSX
approval.

 

10.8          

In order to permit
Optionees to participate in a proposed Take-Over Bid or a proposed
Business Combination that could result in a Change of Control, the
Board may make appropriate provisions for the exercise of Options
(whether vested or not) conditional upon the Shares resulting
therefrom being taken up and paid for under the Take-Over Bid or
the completion of the Business Combination, as
applicable.

 

 

 

 

 

 

11.          

Regulatory Approval

 

11.1       

Notwithstanding any
of the provisions contained in the Plan, Option Agreement or any
term of the Option, the Company’s obligations hereunder,
including obligations to grant Options and issue Shares and to issue and
deliver certificates for such securities to an Optionee pursuant to
the exercise of an Option shall be subject to:

 

(a) 

compliance with all
applicable laws, regulations, rules, orders of governmental or
regulatory authorities in Canada and the United States or any other
applicable jurisdiction (“Securities
Regulators”);

 

(b) 

compliance with the
requirements of the Exchange;

 

(c) 

compliance with the
Company’s insider trading policy; and

 

(d) 

receipt from the
Optionee of such covenants, agreements, representations and
undertakings, including as to future dealings in such Shares, as
the Company determines to be necessary or advisable in order to
safeguard against the violation of the securities laws of any
jurisdiction.

 

11.2       

The Company shall
in no event be obligated to take any action in order to comply with
any laws, regulations, rules, orders or requirements.

 

11.3   

Notwithstanding any
provisions in the Plan, Option Agreement or any term of the Option,
if any amendment, modification or termination to the provisions
hereof or any Option made pursuant hereto are required by any
Securities Regulators, a stock exchange or a market as a condition
of approval to a distribution to the public of any Shares or to
obtain or maintain a listing or quotation of any Shares, the Board
is authorized to make such amendments and thereupon the terms of
the Plan, any Options, including any option agreement made pursuant
hereto, shall be deemed to be amended accordingly without requiring
the consent or agreement of any Optionee or shareholder
approval.

 

12.   

Terms and Conditions of Options Granted to U.S.
Participants

 

12.1  

This Section 12
applies only to U.S. Participants. In this Section 12, the
following words and phrases shall have the following
meanings:

 

(a) 

“Code” means the U.S. Internal
Revenue Code of 1986, as amended.

 

(b) 

“Disability” means, with respect to
any U.S. Participant, that such U.S. Participant is unable to
engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be
expected to result in death or that has lasted, or can be expected
to last, for a continuous period of not less than twelve (12)
months. The preceding definition of the term
“Disability” is intended to comply with, and will be
interpreted consistently with, sections 22(e)(3) and 422(c)(6) of
the Code.

 

 

 

 

 

 

(c) 

“Fair Market Value” means, with
respect to any property (including, without limitation, any Share),
the fair market value, as of a given date, of such property,
determined by such methods or procedures as are established from
time to time by the Board. Unless otherwise determined by the
Board, the fair market value of a Share as of a given date will be
the closing board lot sale price per share of a Share on the
Exchange on the trading day immediately preceding such
date.

 

(d) 

“Grant Date” means, with respect to
any Option, the date on which the Board grants the
Option.

 

(e) 

“Incentive Stock Option” means an
Option that is intended to qualify as an “incentive stock
option” pursuant to section 422 of the Code.

 

(f) 

“Nonqualified Stock Option” means
an Option that is not an Incentive Stock Option.

 

(g) 

“Option” means an option to acquire
Shares granted under this Plan.

 

(h) 

“Subsidiary” means any corporation
(other than the Company) in an unbroken chain of corporations
beginning with the Company, if each corporation (other than the
last corporation) in such chain owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. The preceding
definition of the term “Subsidiary” is intended to comply
with, and will be interpreted consistently with, section 424(f) of
the Code.

 

(i) 

“U.S. Employee” means a person who
is an employee of the Company (or of any Subsidiary) for purposes
of section 422 of the Code.

 

(j) 

“U.S. Participant” means an
Optionee who is a citizen of the United States or a resident of the
United States, in each case as defined in section 7701(a)(30)(A)
and section 7701(b)(1)of the Code.

 

(k) 

“10% Shareholder” means any person
who owns, taking into account the constructive ownership rules set
forth in section 424(d) of the Code, more than ten percent (10%) of
the total combined voting power of all classes of stock of the
Company (or of any Parent or Subsidiary).

 

12.2  

Notwithstanding any
other provision of this Plan to the contrary, the aggregate number
of Shares available for Incentive Stock Options shall not exceed
47,924,118 Shares, subject to adjustment pursuant to Article 10 of
this Plan and subject to the provisions of sections 422 and 424 of
the Code.

 

12.3    

Each option
agreement with respect to an Option granted to a U.S. Participant
shall specify whether the related Option is an Incentive Stock
Option or a Nonqualified Stock Option. If no such specification is
made in an option agreement, the related Option will
be:

 

 

 

 

 

 

(a) 

an Incentive Stock
Option if all of the requirements under the Code that must be
satisfied in order for such Option to qualify as an Incentive Stock
Option are satisfied; or

 

(b) 

in all other cases,
a Nonqualified Stock Option.

 

12.4  

In addition to the
other terms and conditions of this Plan (and notwithstanding any
other term or condition of this Plan to the contrary), the
following limitations and requirements will apply to an Incentive
Stock Option:

 

(a) 

An Incentive Stock
Option may be granted only to a U.S. Employee.

 

(b) 

The aggregate Fair
Market Value of the Shares (determined as of the applicable Grant
Date) with respect to which Incentive Stock Options are exercisable
for the first time by any U.S. Participant during any calendar year
(pursuant to this Plan and all other plans of the Company and of
any Parent or Subsidiary) will not exceed one hundred thousand
dollars (U.S.$100,000) or any other limitation subsequently set
forth in section 422(d) of the Code. To the extent that such
limitation is exceeded, the options in excess of such limitation
will be treated as Nonqualified Stock Options.

 

(c) 

The exercise price
per Share payable upon exercise of an Incentive Stock Option will
be not less than one hundred percent (100%) of the Fair Market
Value of a Share on the applicable Grant Date; provided, however,
that the exercise price per Share payable upon exercise of an
Incentive Stock Option granted to a U.S. Participant who is a 10%
Shareholder on the applicable Grant Date will be not less than one
hundred ten percent (110%) of the Fair Market Value of a Share on
the applicable Grant Date. Under no circumstances shall the
exercise price of an Option be less than the closing board lot sale
price per share of a Share on the Exchange on the trading day
immediately preceding the Grant Date.

 

(d) 

No Incentive Stock
Option may be granted more than ten (10) years after the earlier of
(i) the date on which the Board adopts the most recent amendment
and restatement of the Plan or (ii) the date on which the
shareholders of the Company approve such most recent amendment and
restatement of the Plan.

 

(e) 

An Incentive Stock
Option will terminate and no longer be exercisable no later than
the earlier of the term set by the Board and five (5) years after
the applicable Grant Date.

 

(f) 

If a U.S.
Participant who has been granted an Incentive Stock Option ceases
to be a U.S. Employee, then, in order to retain its status as an
Incentive Stock Option for U.S. federal tax purposes such Option
must be exercised within the time limits set forth below. Failure
to exercise such Incentive Stock Options within the following time
limits will result in the Option ceasing to be an Incentive Stock
Option.

 

 

 

 

 

 

(i) 

If a U.S.
Participant who has been granted an Incentive Stock Option ceases
to be a U.S. Employee due to the death of such U.S. Participant,
such Incentive Stock Option may be exercised (to the extent such
Incentive Stock Option was exercisable on the date of death) by the
estate of such U.S. Participant, or by any person to whom such
Incentive Stock Option was transferred in accordance with
Subsection 6.8, for a period of one (1) year after the date of
death (but in no event beyond the term of such Incentive Stock
Option).

 

(ii) 

If a U.S.
Participant who has been granted an Incentive Stock Option ceases
to be a U.S. Employee due to the Disability of such U.S.
Participant, such Incentive Stock Option may be exercised (to the
extent such Incentive Stock Option was exercisable on the date of
Disability) by such U.S. Participant for a period of one (1) year
after the date of Disability (but in no event beyond the term of
such Incentive Stock Option).

 

(iii) 

If a U.S.
Participant who has been granted an Incentive Stock Option ceases
to be a U.S. Employee for any reason other than the death or
Disability of such U.S. Participant or termination for Cause, such
Incentive Stock Option may be exercised (to the extent such
Incentive Stock Option was exercisable on the date of termination)
by such U.S. Participant for a period of three (3) months after the
date of termination (but in no event beyond the term of such
Incentive Stock Option). If an Option ceases to be an Incentive
Stock Option by virtue of this paragraph, it will be treated as a
Nonqualified Stock Option and the provisions in Subsection 8.1 or
8.2, as applicable, will apply with respect to the period during
which the Option may be exercised.

 

For
purposes of this Subsection 12.4(f), the employment of a U.S.
Participant who has been granted an Incentive Stock Option will not
be considered interrupted or terminated upon (a) sick leave,
military leave or any other leave of absence approved by the
Administrator that does not exceed ninety (90) days in the
aggregate; provided, however, that if reemployment upon the
expiration of any such leave is guaranteed by contract or
applicable law, such ninety (90) day limitation will not apply, or
(b) a transfer from one office of the Company (or of any Parent or
Subsidiary) to another office of the Company (or of any Parent or
Subsidiary) or a transfer between the Company and any Parent or
Subsidiary.

 

For
greater certainty, under no circumstances shall the above time
limits apply to extend the time limits applicable under Section
8.

 

(g) 

An Incentive Stock
Option granted to a U.S. Participant may be exercised during such
U.S. Participant’s lifetime only by such U.S.
Participant.

 

(h) 

An Incentive Stock
Option granted to a U.S. Participant may not be transferred,
assigned, pledged, hypothecated or otherwise disposed of by such
U.S. Participant, except by will or by the laws of descent and
distribution.

 

12.5   

In the event that
this Plan is not approved by the shareholders of the Company as
required by Section 422 of the Code within twelve (12) months
before or after the date on which this Plan is adopted by the
Board, any Incentive Stock Option granted under this Plan will
automatically be deemed to be a Nonqualified Stock
Option.

 

 

 

 

 

 

12.6  

Any adjustment,
amendment or termination of outstanding Options granted to U.S.
Participants will occur only if such actions are undertaken in
accordance with Code Section 409A on a basis consistent with the
regulations thereunder.

 

12.7  

All Options and
Shares issued pursuant to the Plan will be issued pursuant to the
registration requirements of the U.S. Securities Act or an
exemption from such registration requirements.

 

13.

Miscellaneous

 

13.1       

An Optionee
entitled to Shares as a result of the exercise of an Option shall
not be deemed for any purpose to be, or to have rights as, a
shareholder of the Company by such exercise, except to the extent
Shares are issued therefor and then only from the date such Shares
are issued. No adjustment shall be made for dividends or
distributions or other rights for which the record date is prior to
the date such Shares are issued pursuant to the exercise of
Options.

 

13.2      

If the Company or
any of its related entities, as applicable, shall be required to
withhold any amounts by reason of any federal, provincial, state,
local or other laws of any jurisdiction concerning taxes, social
security contributions or other source deductions in respect of the
issuance or delivery of the Options or Shares to the Optionee, the
Company or the related entity may deduct and withhold such amount
or amounts from any payment made by the Company or the related
entity to such Optionee, whether or not such payment is made
pursuant to this Plan.  In addition, or as an alternative
to such withholding from payments, the Company or any related
entity with a withholding obligation as described above may require
an Optionee, as a condition of exercise of an Option, to pay to the
Company or related entity, as the case may be, an amount not
exceeding the total of the withholding obligation of the Company or
related entity arising in respect of the issuance or delivery of
the Options or Shares to the Optionee, or to reimburse the Company
or related entity for such amount. Under no circumstances shall the
Company or any related entity be responsible for funding the
payment of any tax, social security contributions or other source
deductions on behalf of the Optionee or for providing any tax
advice to them.

 

14.        

Amendment and Termination

 

14.1       

The Plan is
effective as of June 21, 2018. Any amendments made are effective as
of the date amended.

 

14.2       

The Board may,
subject to Shareholder approval, amend the Plan at any time.
Notwithstanding the foregoing, the Board is specifically authorized
to amend or revise the terms of the Plan without obtaining
Shareholder approval in the following circumstances:

 

(a) 

to change the
termination provisions of the Options or Plan which does not extend
beyond the original expiry date;

 

 

 

 

 

 

(b) 

to add a cashless
exercise feature, payable in cash or securities, whether or not the
feature provides for a full deduction of the number of underlying
securities from the reserved Shares; and

 

(c) 

other amendments of
a housekeeping nature, including the correction or rectification of
any ambiguities, defective or inconsistent provisions, errors,
mistakes or omissions herein and updating provisions herein to
reflect changes in the governing laws, including tax laws, and the
TSX requirements.

 

Except
as otherwise permitted by the TSX, amendments to this provision as
well as amendments to the number of Shares issuable under the Plan
(including an increase to a fixed maximum number of Shares or a
fixed maximum percentage of Shares, as the case may be, or a change
from a fixed maximum number of shares to a fixed maximum
percentage), may not be made without obtaining approval of the
Shareholders in accordance with TSX requirements. For greater
certainty, an increase does not include reloading after exercise
under a fixed maximum number or percentage provided the fixed
maximum or percentage is not increased and the Plan otherwise
permits reloading.

 

14.3     

The Board may
suspend or terminate the Plan at any time. No action by the Board
to terminate the Plan pursuant to this Section 14 shall affect any
Options granted hereunder pursuant to the Plan prior to
termination.

 

14.4     

Except as set out
below, the Board may (without Shareholder approval) amend, modify
or terminate any outstanding Option, including, but not limited to,
substituting another award of the same or of a different type or
changing the date of exercise; provided, however that, the
Optionee’s consent to such action shall be required unless
the Board determines that the action, when taken with any related
action, would not materially and adversely affect the Optionee or
is specifically permitted hereunder.

 

The
exercise price of any outstanding Options may not be reduced and
the original Option Period extended unless Shareholder approval is
obtained by way of a resolution passed by a majority of the votes
cast by the Shareholders at a meeting of Shareholders. The Option
Price of any outstanding Options may not be reduced and the
original term of the Option Period may not be extended to the
benefit of Insiders unless disinterested Shareholder approval is
obtained in accordance with TSX requirements.

256815.00007/91955158.6

 

APPENDIX A

 

INCENTIVE STOCK OPTION PLAN

 

OPTION AGREEMENT

 

1. 

This Option
Agreement is entered into between Eldorado Gold Corporation (the
“Company”) and
the Optionee as defined below.

 

2. 

The Optionee
acknowledges having received a copy of the Company’s
Incentive Stock Option Plan effective as of June 21, 2018, as
amended or amended and/or restated from time to time (the
“Plan”), a copy
of which is attached hereto, that he or she has read and
understands the Plan and that the terms therein (including any
amendments thereto since the Grant Date) govern the grant
hereunder.

 

3. 

Subject to the
terms and conditions of the Plan, the Company grants the Optionee
the options set out below on the terms and conditions set out
below.

	
 

	

Grant
Date:

	
 

 

	
 

	

Optionee:

	
 

	

 

(the
“Optionee”)

	
 

	

 

Optionee’s
Position

with/relationship
to

the
Company or

related
entity:

	
 

 

	
 

	

Number
of Options:

	
 

 

	
 

	

 

Option
Price

($ per
Share):

	

 

$

	
 

	

Vesting
Period:

	
 

 

	
 

	

 

Vesting
Performance

Targets:

	
 

 

	
 

	

 

Expiry
Date of

Option
Period:

	
 

 

 

4. 

Subject to the
Plan, each Option that has vested entitles the Optionee to purchase
one Share at any time up to 4:30 p.m. Vancouver time on the expiry
date of the Option Period.

 

5. 

This Option
Agreement is subject to the terms and conditions set out in the
Plan and such terms and conditions are incorporated herein by this
reference and agreed to by the Optionee. In the case of any
inconsistency between this Option Agreement and the Plan, the Plan
shall govern. Unless otherwise indicated, all defined terms shall
have the respective meanings attributed thereto in the
Plan.

 

 

 

 

 

 

 

6. 

The Optionee
acknowledges that the Company makes no representation or warranty
as to the future value of any Option granted hereunder or Shares
issuable thereto.

 

7. 

The Optionee
acknowledges and agrees that the Optionee will, at all times, act
in strict compliance with any and all applicable laws and any
policies of the Company applicable to the Optionee in connection
with the Plan.

 

8. 

The Optionee
acknowledges that if the Company or any of its related entities, as
applicable, are required to withhold any amounts by reason of any
federal, provincial, state, local or other laws of any jurisdiction
concerning taxes, social security contributions or other source
deductions in respect of the issuance or delivery of the Options or
Shares to the Optionee, the Company or the related entity may
deduct and withhold such amount or amounts from any payment made by
the Company or the related entity to such Optionee, whether or not
such payment is made pursuant to this Plan. The Optionee also
acknowledges that under no circumstances shall the Company or any
related entity of the Company be responsible for funding the
payment of any tax, social security contributions or other source
deductions on behalf of the Optionee or for providing any tax
advice to the Optionee.

 

9. 

The Optionee hereby
acknowledges that the Options and Shares issued on exercise may be
subject to tax under applicable federal, provincial, state or other
laws of any jurisdiction, that no representation has been made and
he or she has not received any advice from the Company or a related
entity of the Company as to tax or legal ramification of the grant
of Options hereunder or Shares issuable thereto and that he or she
has been advised to seek independent tax advice as he or she deems
necessary.

 

10. 

[OPTION - Insert if
Optionee is a U.S. Participant and US Employee as defined in
Section 12 of the Plan and ISOs are being granted]
[Unless this grant notice specifies
otherwise, Options that meet the requirements of Code Section 422
and applicable regulations will be Incentive Stock Options
(“ISOs”). U.S. Participants should refer to Section 12
of the Plan for provisions relating to ISOs. In addition, U.S.
Participants should consult with their personal tax advisor with
regard to the tax consequences relating to the exercise of an ISO
and the subsequent sale of Shares, including the holding period
requirement with respect to Shares received upon exercise of an ISO
in order to retain favourable ISO tax treatment, and the possible
alternative minimum tax implications as a result of exercise of an
ISO (the latter will depend on the individual tax situation of the
Optionee). OR

 

Insert
if Optionee is a U.S. Participant and Nonqualified Stock Option is
being granted:

 

These Options are Nonqualified Stock Options.]

 

 

 

 

 

 

 

By signing this agreement, the Optionee acknowledges that he, she,
or his or her authorized representative has read and understands
the Plan.

 

IN
WITNESS WHEREOF the parties hereto have executed this Option
Agreement as of the _____ day of _______________,
_____.

 

 

	
 

	
 

	

ELDORADO GOLD CORPORATION

	
 

	
 

	
 

	

Per:

	
 

 

 

	
 

	
 

	
 

	
 

	

Authorized
Signatory

 

Acknowledged and Agreed to:

 

	
 

	
 

	
 

	
 

	

)

)

)

	
 

	

Signature
of Optionee

	

)

	

Signature
of Witness

	
 

	

)

)

)

	
 

	

Name
and Title of Optionee

	

)

	

Name of
WitnessGulfSlope Energy, Inc. 8-K

 

Exhibit 10.1

 

REGISTRATION
RIGHTS AGREEMENT 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of March 25, 2019, by and between
GulfSlope Energy, Inc., a Delaware corporation (the “Company”), and Delek GOM Investments, LLC (the “Lender”).

WHEREAS,
the Company has agreed, upon the terms and subject to the conditions contained therein, to issue Warrants (as defined below) to
the Lender pursuant to that certain term loan agreement, dated March 1, 2019 (the “Term Loan Agreement”), by
and between the Company and the Lender, each of which Warrant is exercisable into shares of the Company’s common stock,
$0.001 par value per share (the “Common Stock”) at an exercise price of $0.042 per share;

WHEREAS,
pursuant to the Tem Loan Agreement, the Company issued Warrants to purchase 238,095,238 shares of Common Stock to the Lender and
the Lender fully exercised the Warrants through an extinguishment of the then outstanding obligations of the Company under the
Term Loan Agreement;

WHEREAS,
the Company may borrow additional loans up to $1.0 million under the Term Loan Agreement and will be obligated to issue to the
Lender a new warrant to purchase the number of shares of Common Stock equal to the quotient of the total loans divided by $0.042;
and

WHEREAS,
in connection with the Term Loan Agreement, the Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “Securities
Act”), and applicable state securities laws;

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Lender hereby agree as follows:

1.

Certain
Definitions. As used in this Agreement, the following terms shall have the following meanings:

“Additional
Filing Deadline” means, with respect to any Registration Statements that may be required pursuant to Section 2(a)(ii),
(A) the first date or time that such Registrable Securities may then be included in a Registration Statement if such Registration
Statement is required because the U.S. Securities and Exchange Commission (the “SEC”) shall have notified the
Company in writing that certain Registrable Securities were not eligible for inclusion on a previously filed Registration Statement,
or (B) if such additional Registration Statement is required for a reason other than as described in (A) above, the
twentieth (20th) day following the date on which the Company first knows, or reasonably should have known, that such additional
Registration Statement is required.

“Additional
Registration Deadline” means, with respect to any additional Registration Statement(s) required pursuant to Section
2(a)(ii), the thirtieth (30th) day following (A) the first date or time that such Registrable Securities may then be included
in a Registration Statement if such Registration Statement is required because the SEC shall have notified the Company in writing
that certain Registrable Securities were not eligible for inclusion on a previously filed Registration Statement, or (B) if
such additional Registration Statement is required for a reason other than as described in (A) above, the fortieth (40th)
day following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement(s)
is required.

    	 	 	 

    	 

    

“Holder”
or “Holders” means the Lender and any transferee or assignee who agrees to become bound by the provisions of
this Agreement in accordance with Section 9 hereof.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder,
and any successor statute.

“FINRA”
means the Financial Industry Regulatory Authority (or successor thereto).

“Filing
Deadline,” for the Registration Statement required pursuant to Section 2(a)(i), shall mean the later of (i) the date
that is thirty (30) calendar days following the the date of delivery of written request to the Company by the Holder(s) for
Registration of all or part of the Registrable Securities held, directly or indirectly, by the Holder(s) or (ii) if the staleness
date of the Company’s financial statements occurs during the 30-day window described in part (i), thirty (30) calendar days
following such staleness date; and, for each Registration Statement required pursuant to Section 2(a)(ii) shall mean the Additional
Filing Deadline.

“Participation
Agreement” means the Participation Agreement, dated January 1, 2018, by and among the Company, the Lender and Texas
South Energy, Inc.

“Person”
means and includes any natural person, partnership, joint venture, corporation, trust, limited liability company, limited company,
joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other
entity.

“Prospectus”
means (i) any prospectus (preliminary or final) included in any Registration Statement, as may be amended or supplemented
by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by
such Registration Statement and by all other amendments and supplements to such prospectus, including post-effective amendments,
and all material incorporated by reference in such prospectus, and (ii) any “free writing prospectus” as defined
in Rule 405 under the Securities Act relating to any offering of Registrable Securities pursuant to a Registration Statement.

“Register,”
“Registered,” and “Registration” refer to a registration effected by preparing and filing
a Registration Statement or Registration Statements in compliance with the Securities Act and pursuant to Rule 415, and the declaration
or ordering of effectiveness of such Registration Statement by the SEC.

“Registrable
Securities,” for a given Registration, means (a) any shares of Common Stock (the “Warrant Shares”)
issued or issuable upon exercise of, or otherwise pursuant to, the Warrants (without giving effect to any limitations on exercise
set forth in the Warrants), (b) any shares of capital stock issued or issuable as a dividend on or in exchange for or otherwise
with respect to any of the foregoing, (c) any other shares of Common Stock issuable pursuant to the terms of the Warrants,
the Term Loan Agreement, the Participation Agreement or any other agreement entered into between the Company and the Lender (or
any of its affiliates) for the purchase of shares of Common Stock, and (d) any securities issued or issuable upon any stock
split, dividend or other distribution, recapitalization or similar event with respect to any of the foregoing, but excluding
(i) any shares of Common Stock or other securities referred to in clauses (a), (b), (c) and (d) that at any time after the
date hereof are sold by a Holder pursuant to an effective registration statement or Rule 144 (in which case only such securities
sold shall cease to be Registrable Securities) or (ii) any shares of Common Stock or other securities referred to in clauses (a),
(b), (c) and (d) at such time the Holders collectively beneficially own less than 5% of the outstanding shares of Common Stock.

“Registration
Deadline” shall mean, for purposes of the Registration Statement required pursuant to Section 2(a)(i), the earlier of
(i) the date that is seventy-five (75) days after the date that the applicable Registration Statement is actually filed
or (ii) the date that is seventy-five (75) days after the applicable Filing Deadline and, with respect to any Registration
Statement required pursuant to Section 2(a)(ii), the Additional Registration Deadline.

“Registration
Statement(s)” means any registration statement(s) of the Company filed under the Securities Act that covers the resale
of any of the Registrable Securities pursuant to the provisions of this Agreement, all amendments and supplements to such Registration
Statement, including post-effective amendments, and all exhibits to, and all material incorporated by reference in, such Registration
Statement.

“Rule
144” means Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the SEC that may
at any time permit a Holder to sell securities of the Company to the public without registration.

“Rule
415” means Rule 415 under the Securities Act or any successor rule providing for the offering of securities on a continuous
basis.

“underwritten
offering” means a registered offering in which securities of the Company are sold to one or more underwriters on a firm-commitment
basis for reoffering to the public.

“Trading
Day” means a day on whichever (a) the national securities exchange, (b) the OTC Bulletin Board, or (c) such other securities
market, in any such case which at the time constitutes the principal securities market for the Common Stock, is open for general
trading of securities.

“Warrants”
means the warrants issued by the Company pursuant to the Term Loan Agreement.

2.

Registration.

(a)

Demand
Registration.

    	 	 	 

    	 

    

 

(i)

Until
the first date on which there are no Registrable Securities, upon the request of the Holders, the Company shall prepare, and,
on or prior to the applicable Filing Deadline, file with the SEC a Registration Statement on Form S-3 (or, if Form S-3 is not
then available, on Form S-1 or such form of Registration Statement as is then available to effect a registration of the Registrable
Securities, subject to the consent of the Holders, which consent shall not be unreasonably withheld) covering the resale of the
Registrable Securities, which Registration Statement, to the extent allowable under the Securities Act and the rules and regulations
promulgated thereunder (including Rule 416), shall state that such Registration Statement also covers such indeterminate number
of additional shares of Common Stock as may become issuable upon exercise of or otherwise pursuant to the Warrants or the Warrant
Shares to prevent dilution resulting from stock splits, stock dividends, stock issuances or similar transactions. The number of
shares of Common Stock initially included in such Registration Statement shall be no less than the aggregate number of (i) Warrant
Shares that have been issued and (ii) Warrant Shares that are then issuable upon exercise of or otherwise pursuant to the Warrants,
without regard to any limitations on the Holders’ ability to exercise the Warrants. Each
Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof)
shall be provided to (and shall be subject to the approval, which shall not be unreasonably withheld or delayed, of ) the Holders
and their counsel prior to its filing or other submission..

(ii)

If
for any reason, despite the Company’s use of commercially reasonable efforts to include all of the Registrable Securities
in the Registration Statement filed pursuant to Section 2(a)(i) above, the SEC does not permit all of the Registrable Securities
to be included in, or for any other reason any Registrable Securities are not then included in, such Registration Statement, then
the Company shall prepare, and, as soon as practicable but in no event later than the Additional Filing Deadline, file with the
SEC an additional Registration Statement covering the resale of all Registrable Securities not already covered by an existing
and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415.

(b)

Piggy-Back
Registrations. If at any time prior to the expiration of the Registration Period (as hereinafter defined) the Company shall
determine (i) to file with the SEC a registration statement under the Securities Act relating to an offering for its own
account or for the account of any other holder of its equity securities (other than securities being registered on Form S-4 or
Form S-8 or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any
entity or business or equity securities issuable in connection with stock option or other employee benefit plans), and/or (ii) otherwise
to effect an underwritten offering of any securities of the Company of a type included in a then effective Registration Statement,
the Company shall send to each Holder written notice (which may include e-mail) of such determination and, if within ten (10) days
after the effective date of such notice, the Holder shall so request in writing, the Company shall include in such Registration
Statement and/or include in such underwritten offering, as applicable, all or any part of such Holder’s Registrable Securities
that the Holder requests to be registered and/or included in the underwritten offering, as applicable, except that if, in connection
with any underwritten offering for the account of the Company, the managing underwriter(s) thereof shall impose a limitation on
the number of Registrable Securities which may be included in such offering because, in such underwriter(s)’ judgment, marketing
or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to
include in such underwritten offering only such limited portion of the Registrable Securities with respect to which the Holder
has requested inclusion hereunder as the underwriter(s) shall permit; provided, however, that the Company shall
not exclude any Registrable Securities unless the Company has first excluded all outstanding securities to be sold for the accounts
of any holders of the Company’s equity securities which are not entitled by contract to inclusion of such securities in
an underwritten offering or are not entitled to pro rata inclusion with the Registrable Securities; and provided, further,
however, that, after giving effect to the immediately preceding proviso, any exclusion of Registrable Securities shall
be made pro rata with holders of other securities having the contractual right to include such securities in such underwritten
offering other than holders of securities entitled to inclusion of their securities in such underwritten offering by reason of
demand registration rights. No right to registration of Registrable Securities under this Section 2(b) shall be construed to limit
any registration required under Section 2(a) hereof. If a Holder’s Registrable Securities are included in an underwritten
offering pursuant to this Section 2(b), then such Holder shall, unless otherwise agreed by the Company, offer and sell such Registrable
Securities in such underwritten offering using the same underwriter or underwriters and, subject to the provisions of this Agreement,
on the same terms and conditions as other shares of Common Stock included in such underwritten offering.

(c)

Underwritten
Offerings. The Holders shall be entitled to request underwritten offerings, but only if the gross proceeds from such offering
are reasonably expected to be in excess of five million dollars ($5,000,000) (based on then-current market prices). If any of
the Registrable Securities are to be sold in an underwritten offering, the Holder(s) shall have the right to select the managing
underwriter or underwriters to lead the offering, provided that such selection shall be subject to the consent of the Company,
which consent shall not be unreasonably withheld or denied.

3.

Obligations
of the Company. In connection with any registration of the Registrable Securities hereunder, the Company shall have the
following obligations:

(a)

The
Company shall prepare promptly, and file with the SEC as soon as practicable after such registration obligation arises hereunder
(but in no event later than the applicable Filing Deadline), a Registration Statement with respect to the number of Registrable
Securities provided in Section 2(a), as applicable, and thereafter use commercially reasonable efforts to cause each such Registration
Statement relating to Registrable Securities to become effective as soon as possible after such filing, but in any event shall
use commercially reasonable efforts to cause each such Registration Statement relating to Registrable Securities to become effective
no later than the Registration Deadline, and shall thereafter use commercially reasonable efforts to keep the Registration Statement
current and effective pursuant to Rule 415 at all times until the first date on which there are no Registrable Securities (the
“Registration Period”), which Registration Statement (including any amendments or supplements thereto and prospectuses
contained therein), except for information provided in writing by a Holder pursuant to Section 4(a), shall not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements
therein not misleading. In the event that Form S-3 is not available for the registration of the resale of any Registrable Securities
hereunder (but, for the avoidance of doubt, without in any way affecting the Company’s obligation to register the resale
of the Registrable Securities on such other form as is available, as provided in Section 2(a)), (i) the Company shall undertake
to file, within twenty (20) days of such time as Form S-3 is available for such registration, a post-effective amendment
to the Registration Statement then in effect, or otherwise file a Registration Statement on Form S-3, registering such Registrable
Securities on Form S-3; provided that the Company shall maintain the effectiveness of the Registration Statement then in
effect until such time as a Registration Statement (or post-effective amendment) on Form S-3 covering such Registrable Securities
has been declared effective by the SEC, and (ii) the Company shall provide that any Registration Statement on Form S-1 filed
hereunder shall incorporate documents by reference (including by way of forward incorporation by reference) to the maximum extent
possible.

    	 	 	 

    	 

    

 

(b)

The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to each Registration
Statement and the prospectus used in connection with each Registration Statement as may be necessary to keep each Registration
Statement current and effective at all times during the Registration Period, and, during the Registration Period, shall comply
with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered
by each Registration Statement until such time as all of such Registrable Securities have been disposed of in accordance with
the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement or until the
Holders no longer hold Registrable Securities. In the event that on any Trading Day (as defined below) (the “Registration
Trigger Date”) the number of shares available under the Registration Statements filed pursuant to this Agreement is
insufficient to cover all of the Registrable Securities issued or issuable upon exercise of or otherwise pursuant to the Warrants,
without giving effect to any limitations on the Holders’ ability to exercise the Warrants, the Company shall amend the Registration
Statements, or file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover
the total number of Registrable Securities so issued or issuable (without giving effect to any limitations on exercise contained
in the Warrants) as of the Registration Trigger Date as soon as practicable, but in any event within twenty (20) days after
the Registration Trigger Date. The Company shall use commercially reasonable efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing thereof, but in any event the Company shall cause such
amendment and/or new Registration Statement to become effective within sixty (60) days of the Registration Trigger Date or
as promptly as practicable in the event the Company is required to increase its authorized shares.

(c)

The
Company shall furnish to each Holder and its legal counsel (i) promptly after the same is prepared and publicly distributed,
filed with the SEC or received by the Company, one copy of each Registration Statement and any amendment thereto, each preliminary
prospectus and prospectus and each amendment or supplement thereto, and (ii) such number of copies of a prospectus, including
a preliminary prospectus, and all amendments and supplements thereto and such other documents as a Holder may reasonably request
in order to facilitate the disposition of the Registrable Securities owned by such Holder; provided that the Company may
determine in its reasonable judgment to provide any such copies in electronic form only. The Company will promptly notify each
of the Holders by electronic mail of the effectiveness of each Registration Statement or any post-effective amendment. The Company
will promptly respond to any and all comments received from the SEC, with a view towards causing each Registration Statement or
any amendment thereto to be declared effective by the SEC as soon as practicable and, as soon as practicable, but in no event
later than three (3) business days, following the resolution or clearance of all SEC comments or, if applicable, following
notification by the SEC that any such Registration Statement or any amendment thereto will not be subject to review, shall file
a request for acceleration of effectiveness of such Registration Statement to a time and date not later than two (2) business
days after the submission of such request. No later than the first business day after such Registration Statement becomes effective,
the Company will file with the SEC the final prospectus included therein pursuant to Rule 424 (or successor thereto) under the
Securities Act.

(d)

The
Company shall use commercially reasonable efforts to (i) register and qualify, in any jurisdiction where registration and/or
qualification is required, the Registrable Securities covered by the Registration Statements under such other securities or “blue
sky” laws of such jurisdictions in the United States as the Holders shall reasonably request, (ii) prepare and file
in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications
as may be reasonably necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other
actions as may be reasonably necessary to maintain such registrations and qualifications in effect at all times during the Registration
Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale
in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a
condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but
for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent
to service of process in any such jurisdiction.

(e)

As
promptly as practicable after becoming aware of such event, the Company shall notify each Holder that holds Registrable Securities
of the happening of any event, of which the Company has knowledge, as a result of which the prospectus included in any Registration
Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, and promptly prepare a supplement or amendment to any
Registration Statement to correct such untrue statement or omission, and deliver such number of copies of such supplement or amendment
to each Holder as such Holder may reasonably request.

(f)

The
Company shall use commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of any Registration Statement, and, if such an order is issued, to obtain the withdrawal of such order at the earliest possible
moment and to notify each Holder that holds Registrable Securities (and, in the event of an underwritten offering, the managing
underwriters) of the issuance of such order and the resolution thereof.

(g)

The
Company shall permit a single firm of counsel designated by the Holders (“Legal Counsel”) to review such Registration
Statement and all amendments and supplements thereto (as well as all requests for acceleration or effectiveness thereof), in substantially
the form to be filed with the SEC, a reasonable period of time prior to their filing with the SEC (not less than five (5) business
days) and not file any documents in a form to which Legal Counsel reasonably objects and will not request acceleration of such
Registration Statement without prior notice to Legal Counsel.

(h)

The
Company shall hold in confidence and not make any disclosure of information concerning a Holder provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure
of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this or
any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning any Holder
is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to such Holder
prior to making such disclosure, and allow such Holder, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, such information.

 

    	 	 	 

    	 

    

 

(i)

The
Company shall use commercially reasonable efforts to cause all the Registrable Securities covered by each Registration Statement
to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed,
if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange.

(j)

The
Company shall provide a transfer agent and registrar, which may be a single entity, for the Registrable Securities not later than
the effective date of the initial Registration Statement.

(k)

The
Company shall cooperate with each Holder that holds Registrable Securities being offered and the managing underwriter or underwriters
with respect to an applicable Registration Statement, if any, to facilitate the timely (i) preparation and delivery of certificates
(not bearing any restrictive legends) representing Registrable Securities to be offered pursuant to such Registration Statement,
and enable such certificates to be registered in such names and in such denominations or amounts, as the case may be, or (ii) crediting
of the Registrable Securities to be offered pursuant to a Registration Statement to the applicable account (or accounts) with
The Depository Trust Company through its Deposit/Withdrawal At Custodian (DWAC) system, in any such case as such Holder or the
managing underwriter or underwriters, if any, may reasonably request. Within three (3) business days after a Registration
Statement which includes Registrable Securities becomes effective, the Company shall deliver, and shall cause legal counsel selected
by the Company to deliver, to the transfer agent for the Registrable Securities (with copies to each Holder) an appropriate instruction
and an opinion of such counsel in the form required by the transfer agent in order to issue the Registrable Securities free of
restrictive legends.

(l)

At
the reasonable request of a Holder, the Company shall prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and any prospectus used in connection with the Registration Statement
as may be necessary in order to change the plan of distribution set forth in such Registration Statement.

(m)

The
Company shall comply with all applicable laws related to a Registration Statement and offering and sale of securities and all
applicable rules and regulations of governmental authorities in connection therewith (including the Securities Act and the Exchange
Act and the rules and regulations promulgated by the SEC).

(n)

If
required by the FINRA Corporate Financing Department, the Company shall promptly effect a filing with FINRA pursuant to FINRA
Rule 5110 (or successor thereto) with respect to an underwritten offering contemplated by resales of securities under the Registration
Statement (an “Issuer Filing”), and pay the filing fee required by such Issuer Filing. The Company shall use
commercially reasonable efforts to pursue the Issuer Filing until FINRA issues a letter confirming that it does not object to
the terms of the offering contemplated by the Registration Statement.

(o)

The
Company shall make available for inspection by any Holder of such Registrable Shares, any underwriter participating in any disposition
pursuant to such Registration Statement and any attorney, accountant or other agent retained by any such Holder or underwriter
(collectively, the “Inspectors”), all pertinent financial, business and other records, pertinent corporate
documents and properties of the Company (collectively, the “Records”), as shall reasonably be necessary to
enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors and employees to
supply all information (together with the Records, the “Information”) reasonably requested by any such Inspector
in connection with such Registration Statement. Any of the Information that the Company determines in good faith to be confidential,
and of which determination the Inspectors are so notified, shall not be disclosed by the Inspectors unless (i) the disclosure
of such Information is necessary to avoid or correct a misstatement or omission in the Registration Statement; (ii) the release
of such Information is ordered pursuant to a subpoena or other order from a court of competent jurisdiction or (iii) such Information
has been made generally available to the public. The Holder of Registrable Shares agrees that it will, upon learning that disclosure
of such Information is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company’s
expense, to undertake appropriate action to prevent disclosure of the Information deemed confidential.

(p)

The
Company shall use commercially reasonable efforts to obtain from its independent certified public accountants a “cold comfort”
letter (or, in the case of any such Person which does not satisfy the conditions for receipt of a “cold comfort” letter
specified in Statement on Auditing Standards No. 72, an “agreed upon procedures” letter) signed by the independent
certified public accountants and addressed to the Holders selling Registrable Shares in such registration, the Board of Directors
of the Company, and the underwriter, if any, in customary form and covering such matters of the type customarily covered by cold
comfort letters and use commercially reasonable efforts to obtain the reports of its independent petroleum engineers relating
to the oil and gas reserves of the Company if the Company has had its reserves prepared, audited or reviewed by an independent
petroleum engineer.

(q)

The
Company use commercially reasonable efforts to obtain, from its counsel, an opinion or opinions in customary form (which shall
also be addressed to the Holders selling Registrable Shares in such registration).

(r)

The
Company shall have appropriate officers of the Company prepare and make presentations at any “road shows” and before
analysts and other information meetings organized by the underwriters and otherwise use commercially reasonable efforts to cooperate
as reasonably requested by the Holders of such Registrable Shares in the offering, marketing or selling of such Registrable Shares;
provided, that the gross proceeds for such offering are reasonably expected to be in excess of five million dollars ($5,000,000)
(based on then-current market prices); provided, further that such officers shall not be required to participate
in such presentations at any “road shows” and before analysts more than once in a 365 day period.

    	 	 	 

    	 

    

 

(s)

If
an offering of Registrable Shares for which the gross proceeds are reasonably expected to be in excess of five million dollars
($5,000,000) (based on then-current market prices) under a Registration pursuant to Section 2(a) is requested to be an underwritten
offering of Common Stock pursuant to a Registration Statement declared effective under the Securities Act, the Company shall negotiate
in good faith to enter into a reasonable and customary underwriting agreement with the underwriters thereof. Any Holder participating
in the offering shall be a party to such underwriting agreement and, at its option, may require that any or all of the representations
and warranties by, and the other agreements on the part of, the Company to and for the benefit of such underwriters also shall
be made to and for the benefit of such Holder and that any or all of the conditions precedent to the obligations of such underwriters
under such underwriting agreement be conditions precedent to the obligations of such Holder; provided, however,
that the Company shall not be required to make any representations or warranties with respect to written information specifically
provided by a Holder for inclusion in the Registration Statement. No Holder shall be required to make any representations or warranties
to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such Holder,
its ownership of and title to the Registrable Shares and its intended method of distribution; and any liability of such Holder
to any underwriter or other Person under such underwriting agreement shall be limited to liability arising from breach of its
representations and warranties and shall be limited to an amount equal to the proceeds (net of underwriting discounts and commissions)
that it derives from such offering. The Company shall be entitled to receive indemnities from lead institutions, underwriters,
selling brokers, dealer managers and similar securities industry professionals participating in the distribution, to the same
extent as provided above with respect to information so furnished in writing by such Persons specifically for inclusion in any
Prospectus or Registration Statement and to the extent customarily given their role in such distribution.

(t)

The
Company shall use commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to be
listed or quoted on the principal securities market on which securities of the same class or series issued by the Company are
then listed or traded.

(u)

The
Company shall use commercially reasonable efforts to register such Registrable Shares under the Exchange Act, and otherwise use
commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its
security holders, as soon as reasonably practicable but not later than eighteen (18) months after the effective date, earnings
statements (which need not be audited) covering a period of twelve (12) months beginning within three (3) months after the effective
date of the Registration Statement, which earnings statements shall satisfy the provisions of Section 1(a) of the Securities Act
and Rule 158 thereunder.

(v)

The
Company shall not take any direct or indirect action prohibited by Regulation M under the Exchange Act; provided, however,
that to the extent that any prohibition is applicable to the Company, the Company will take such action as is necessary to make
any such prohibition inapplicable.

(w)

The
Company use commercially reasonable efforts to take all other steps necessary to effect the registration of such Registrable Shares
contemplated hereby.

(x)

Notwithstanding
anything to the contrary in Section 3(e), at any time after the effective date of the applicable Registration Statement, the Company
may delay the disclosure of material non-public information concerning the Company the disclosure of which at the time is not,
in the good faith opinion of the Board of Directors of the Company and its counsel, in the best interest of the Company and not,
in the opinion of counsel to the Company, otherwise required (a “Grace Period”); provided, that the Company
shall (i) promptly notify the Holders in writing of the existence of material non-public information giving rise to a Grace
Period (provided that in each notice the Company shall not disclose the content of such material non-public information to any
Holder unless otherwise requested in writing by such Holder) and the date on which the Grace Period will begin, and (ii) as
soon as such date may be determined, promptly notify the Holders in writing of the date on which the Grace Period ends; and, provided,
further, that (A) no Grace Period shall exceed forty-five (45) consecutive days, (B) during any three hundred
sixty five (365) day period, such Grace Periods shall not exceed an aggregate of sixty (60) days and (C) the first day
of any Grace Period must be at least ten (10) business days after the last day of any prior Grace Period. For purposes of
determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Holders receive the notice
referred to in clause (i) and shall end on and include the later of the date the Holders receive the notice referred to in
clause (ii) and the date referred to in such notice. Upon expiration of the Grace Period, the Company shall again be bound
by the first sentence of Section 3(e) with respect to the information giving rise thereto unless such material non-public information
is no longer applicable.

4.

Obligations
of the Holder. In connection with the registration of the Registrable Securities, each Holder shall have the following
obligations:

(a)

It
shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with
respect to the Registrable Securities of a Holder that such Holder shall furnish to the Company such information regarding itself,
the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request. At least five (5) business days prior to the first anticipated
filing date of a Registration Statement, the Company shall notify each Holder of the information the Company requires from such
Holder. Any such information shall not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein, or necessary to make the statements therein not misleading. A Holder must provide such information to the
Company at least two (2) business days prior to the first anticipated filing date of such Registration Statement if such
Holder elects to have any Registrable Securities included in the Registration Statement.

(b)

Each
Holder, by such Holder’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of a Registration Statement hereunder, unless such Holder has notified
the Company in writing of such Holder’s election to exclude all of the Holder’s Registrable Securities from such Registration
Statement.

    	 	 	 

    	 

    

 

(c)

In
the event of an underwritten offering pursuant to Section 2(b) in which any Registrable Securities of any Holder are to be included,
such Holder agrees to enter into and perform the Holder’s obligations under an underwriting agreement, in usual and customary
form, including customary indemnification and contribution obligations (as applicable to selling security holders generally),
with the managing underwriter of such offering and take such other actions as are reasonably required in order to expedite or
facilitate the disposition of such Holder Registrable Securities.

(d)

Each
Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(e) or 3(f), such Holder will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until such Holder is advised in writing by the Company that the use of the prospectus may
be resumed and is furnished with a supplemented or amended prospectus as contemplated by Section 3(e) or 3(f), and if so
directed by the Company, such Holder shall deliver to the Company all copies, other than permanent file copies then in such Holder’s
possession, of the prospectus covering such Registrable Securities at the time of receipt of such notice.

(e)

Each
Holder agrees that it will promptly notify the Company of any material changes in the information set forth in a Registration
Statement furnished by or regarding such Holder, other than changes in the number of shares beneficially owned.

5.

Expenses.
All expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications
pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualification fees, printers and accounting
fees, the fees and disbursements of counsel for the Company (plus any special and local counsel) and independent certified public
accountants for the Company, all fees and disbursements customarily paid by the issuer or sellers of securities, excluding underwriting
fees, discounts, commissions and allowances, if any, shall be borne by the Company. The Company shall also reimburse the Holders
for the reasonable fees and disbursements of Legal Counsel in the aggregate amount up to $50,000 in connection with registrations
and underwritten offerings pursuant to Section 2 or 3 of this Agreement.

6.

Indemnification.
In the event any Registrable Securities are included in a Registration Statement under this Agreement:

(a)

The
Company will indemnify, hold harmless and defend (i) each Holder, (ii) the directors, officers, partners, managers,
members, employees, agents of each Holder, and each Person who controls any Holder within the meaning of the Securities Act or
the Exchange Act, if any, (iii) any underwriter (as defined in the Securities Act) for each Holder in connection with an
underwritten offering pursuant to Sections 2(b) and 2(c) hereof, and (iv) the directors, officers, partners, employees and
each Person who controls any such underwriter within the meaning of the Securities Act or the Exchange Act, if any (each, an “Indemnified
Person”), against any joint or several losses, claims, damages, liabilities or expenses (collectively, together with
actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect
thereof, “Claims”) to which any of them may become subject insofar as such Claims arise out of or are based
upon: (i) any untrue statement or alleged untrue statement of a material fact in any Registration Statement, or any amendment
as supplement thereto, or any filing made under state securities laws as required hereby, or the omission or alleged omission
to state therein a material fact required to be stated or necessary to make the statements therein not misleading; (ii) any
untrue statement or alleged untrue statement of a material fact contained in any Prospectus, or any amendment or supplement thereto,
or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the light
of the circumstances under which the statements therein were made, not misleading; or (iii) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any other law, including any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities(the matters in the foregoing clauses (i) through (iii)
being, collectively, “Violations”). The Company shall reimburse the Indemnified Person, promptly as such expenses
are incurred and are due and payable, for any reasonable legal fees and other reasonable expenses incurred by them in connection
with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a) shall not apply to a Claim arising out of or based upon a Violation to the extent that
such Violation occurs in reliance upon and in conformity with information furnished in writing to the Company by or on behalf
of any Indemnified Person expressly for use in connection with the preparation of such Registration Statement or any such amendment
thereof or supplement thereto, or (B) to any amounts paid in settlement of any Claim effected without the prior written consent
of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable
Securities by any of the Holders pursuant to Section 9.

(b)

Promptly
after receipt by an Indemnified Person under this Section 6 of notice of the commencement of any action (including any governmental
action), such Indemnified Person shall, if a Claim in respect thereof is to be made against the Company under this Section 6,
deliver to the Company a written notice of the commencement thereof, and the Company shall have the right to participate in, and,
to the extent the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company
and the Indemnified Person, as the case may be; provided, however, that an Indemnified Person shall have the right
to retain its own counsel with the reasonable fees and expenses to be paid by the Company, if, in the reasonable opinion of counsel
for such Indemnified Person, the representation by such counsel of the Indemnified Person and the Company would be inappropriate
due to actual or potential differing interests between such Indemnified Person and any other party represented by such counsel
in such proceeding. The Company shall pay for only one separate legal counsel for the Indemnified Persons, and such legal counsel
shall be selected by the Holders. The failure to deliver written notice to the Company within a reasonable time of the commencement
of any such action shall not relieve the Company of any liability to the Indemnified Person under this Section 6, except
to the extent that the Company is actually prejudiced in its ability to defend such action, and shall not relieve the Company
of any liability to the Indemnified Person otherwise than pursuant to this Section 6. The Company shall not, without the
prior written consent of the Indemnified Persons, consent to entry of any judgment or enter into any settlement or other compromise
with respect to any Claim in respect of which indemnification or contribution may be or has been sought hereunder (whether or
not any such Indemnified Party is an actual or potential party to such action or claim) which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to the Indemnified Persons of a full release from all liability with respect
to such Claim or which includes any admission as to fault or culpability on the part of any Indemnified Person. The indemnification
required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as any expense, loss, damage or liability is incurred.

    	 	 	 

    	 

    

 

(c)

Each
Holder will indemnify, hold harmless and defend (i) the Company, and (ii) the directors, officers, partners, managers,
members, employees, or agents of the Company, if any (each, a “Company Indemnified Person”), against any Claims
to which any of them may become subject insofar as such Claims arise out of or are based upon any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any other law, including any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities, which occurs due to the inclusion by the Company in a
Registration Statement of false or misleading information about a Holder, where such information was furnished in writing to the
Company by or on behalf of such Holder expressly for the purpose of inclusion in such Registration Statement. Notwithstanding
anything herein to the contrary, the indemnity agreement contained in this Section 6(c) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written consent of the Holders, which consent shall not
be unreasonably withheld or delayed; and provided, further, however, that a Holder shall be liable under this Section 6(c)
for only that amount of a Claim as does not exceed the net amount of proceeds received by such Holder as a result of the sale
of Registrable Securities pursuant to such Registration Statement.

(d)

Promptly
after receipt by a Company Indemnified Person under this Section 6 of notice of the commencement of any action (including
any governmental action), such Company Indemnified Person shall, if a Claim in respect thereof is to be made against any Holder
under this Section 6, deliver to such Holder a written notice of the commencement thereof, and such Holder shall have the
right to participate in, and, to the extent such Holder so desires, to assume control of the defense thereof with counsel mutually
satisfactory to such Holder and such Company Indemnified Person.

7.

Contribution.
If for any reason the indemnification provided for in Section 6(a) or Section 6(c) (as applicable) is unavailable to an Indemnified
Person or Company Indemnified Person (as applicable) or insufficient to hold it harmless, other than as expressly specified therein,
then the indemnifying party shall contribute to the amount paid or payable by the Indemnified Person or Company Indemnified Person
(as applicable) as a result of the Claim in such proportion as is appropriate to reflect the relative fault of the Indemnified
Person or Company Indemnified Person (as applicable) and the indemnifying party (provided that the relative fault of any Company
Indemnified Person shall be deemed to include the fault of all other Company Indemnified Persons), as well as any other relevant
equitable considerations. No Person guilty of fraudulent misrepresentation within the meaning of Section 10(f) of the Securities
Act shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation. In no event shall the contribution
obligation of a Holder be greater in amount than the net amount of proceeds received by such Holder as a result of the sale of
Registrable Securities giving rise to such contribution obligation pursuant to the applicable Registration Statement (net of the
aggregate amount of any damages or other amounts such Holder has otherwise been required to pay (pursuant to Section 6(c) or otherwise)
by reason of such Holder’s untrue or alleged untrue statement or omission or alleged omission).

8.

Reports
Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144, the Company agrees
to:

(a)

make
and keep public information available, as those terms are understood and defined in Rule 144;

(b)

file
with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act so long as the
Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable
provisions of Rule 144; and

(c)

so
long as any of the Holders owns Registrable Securities, promptly upon request, furnish to such Holder (i) a written statement
by the Company that it has complied with the reporting requirements of the Exchange Act as required for applicable provisions
of Rule 144, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents
so filed by the Company and (iii) such other information as may be reasonably requested to permit such Holder to sell such
Registrable Securities pursuant to Rule 144 without registration.

9.

Assignment
of Registration Rights. The rights under this Agreement shall be assignable by each Holder to an assignee acquiring 25%
or more of the Registrable Securities in the aggregate if: (i) such Holder agrees in writing with the transferee or assignee
to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment,
(ii) the Company is, within fifteen (15) calendar days after such transfer or assignment, furnished with written notice of
(a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration
rights are being transferred or assigned, and (iii) at or before the time the Company receives the written notice contemplated
in clause (ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of
the provisions contained herein as applicable to the Holders. In the event that the Company receives written notice from a Holder
that it has transferred all or any portion of its Registrable Securities pursuant to this Section, the Company shall have up to
ten (10) days to file any amendments or supplements necessary to keep a Registration Statement current and effective pursuant
to Rule 415.

10.

Amendment
of Registration Rights. Provisions of this Agreement may be amended and the observance thereof may be waived (either generally
or in a particular instance and either retroactively or prospectively) only with written consent of the Company and the holders
of a majority in interest of then-outstanding Registrable Securities. Any amendment or waiver effected in accordance with this
Section 10 shall be binding upon each of the Holders and the Company.

11.

Miscellaneous.

(a)

A
Person is deemed to hold, and be a holder of, shares of Common Stock or other Registrable Securities whenever such Person owns
of record or beneficially through a “street name” holder such shares of Common Stock or other Registrable Securities,
and solely for purposes hereof, Registrable Securities shall be deemed outstanding to the extent they are directly or indirectly
issuable upon exercise, conversion or exchange of the Warrants. If the Company receives conflicting instructions, notices or elections
from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from the registered owner of such Registrable Securities (or the Warrants which such Registrable Securities
are directly or indirectly issuable).

    	 	 	 

    	 

    

 

(b)

Any
notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail (return receipt
requested) or delivered personally or by courier (including a recognized overnight delivery service) or by electronic mail and
shall be effective five (5) days after being placed in the mail, if mailed by regular United States mail, or upon receipt, if
delivered personally or by courier (including a recognized overnight delivery service) or by electronic mail, in each case addressed
to a party. The addresses for such communications shall be:

If
to the Company:

1331
Lamar Street

Suite 1665

Houston, Texas 77010

Attn: John Malanga, Chief Financial Officer

Tel: (281) 918-4103

Email: john.malanga@gulfslope.com

 

With
copy to:

Mayer
Brown LLP

Attention: William T. Heller IV

Suite 3400

700 Louisiana Street

Tel: (713) 238-2657

Fax: (713) 238-4657

Email: wheller@mayerbrown.com

If
to a Holder:

c/o
Corporation Trust Center

1209 Orange Street

Wilmington, Delaware 19801

With
a copy to:

Leora
Pratt Levin

VP & General Counsel

Delek Group Ltd

19, Abba Eban blvd. P.O.B 2054

Herzliya 4612001, Israel

Tel: (+972 9) 8638492

Fax: (+972 9) 8854955

E-mail: leorapl@delek-group.com

Each
party shall provide notice to the other party of any change in address.

 

    	 	 	 

    	 

    

 

(c)

Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

(d)

Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City
of New York, borough of Manhattan. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The parties
hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provision of
this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action
or proceeding.

(e)

This
Agreement, the Warrants and the Term Loan Agreement (including all schedules and exhibits thereto) constitute the entire agreement
among the parties hereto with respect to the subject matter hereof. This Agreement, the Warrants and the Term Loan Agreement (including
all schedules and exhibits thereto) supersede all prior agreements and understandings among the parties hereto with respect to
the subject matter hereof.

(f)

Subject
to the requirements of Section 9 hereof, this Agreement shall inure to the benefit of and be binding upon the successors
and assigns of each of the parties hereto, and the provisions of Sections 6 and 7 hereof shall inure to the benefit of, and be
enforceable by, each Indemnified Person and Company Indemnified Person (as applicable).

(g)

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

(h)

This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by electronic
transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

(i)

Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other parties may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

(j)

The
Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holders by vitiating
the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
breach of its obligations hereunder will be inadequate and agrees, in the event of a breach or threatened breach by the Company
of any of the provisions hereunder, that the Holders shall be entitled, in addition to all other available remedies in law or
in equity, to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically
the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

(k)

The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

    	 	 	 

    	 

    

 

(l)

In
the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with
such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision hereof.

(m)

In
the event a Holder shall sell or otherwise transfer any of such holder’s Registrable Securities, each transferee shall be
allocated a pro rata portion of the number of Registrable Securities included in a Registration Statement for such transferor.

(n)

There
shall be no oral modifications or amendments to this Agreement. This Agreement may be modified or amended only in writing.

(o)

The
Company shall not grant any Person any registration rights with respect to shares of Common Stock or any other securities of the
Company other than (i) those registration rights already existing as of the date of this Agreement; or (ii) registration rights
that will not adversely affect the rights of the Holders hereunder (including by limiting in any way the number of Registrable
Securities that could be included in any Registration Statement pursuant to Rule 415) and shall not otherwise enter into any agreement
that is inconsistent with the rights granted to the Holders hereunder.

(p)

The
obligations of each Holder hereunder are several and not joint with the obligations of any other Holder, and no provision of this
Agreement is intended to confer any obligations on any Holder vis-à-vis any other Holder. Nothing contained herein, and
no action taken by any Holder pursuant hereto, shall be deemed to constitute the Holders as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Holders are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated herein.

(q)

Unless
the context otherwise requires, (i) all references to Sections, Schedules or Exhibits are to Sections, Schedules or Exhibits
contained in or attached to this Agreement, (ii) words in the singular or plural include the singular and plural, and pronouns
stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, and (ii) the
use of the word “including” in this Agreement shall be by way of example rather than limitation.

 

 

[Remainder
of page left intentionally blank]

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned Holder and the Company have caused this Registration Rights Agreement to be duly executed as
of the date first written above.

	 	COMPANY:
	 	 
	 	GULFSLOPE
    ENERGY, INC.
	 	 
	 	 	 
	 	By:	 	/s/ John N. Seitz	 
	 	Name:	 	John
    N. Seitz
	 	Title:	 	CEO

 

    	 	[Signature Page to Registration Rights Agreement]	 

     

    

 

IN
WITNESS WHEREOF, the undersigned Holder and the Company have caused this Registration Rights Agreement to be duly executed as
of the date first written above.

	 	HOLDER:
	 	 
	 	DELEK
    GOM INVESTMENTS, LLC
	 	 
	 	 	 
	 	By:	 	/s/ Leora Pratt Levin	 
	 	Name:	 	Leora
    Pratt Levin
	 	Title:	 	Authorized
    Person

 

 

 

    	 	[Signature Page to Registration Rights Agreement]

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