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  Exhibit 10.1    
    

 
    SUPPLEMENT AGREEMENT    
    

        This SUPPLEMENT AGREEMENT (this "Agreement"), dated as of July 14, 2017 (the "Effective
Date"), which is being executed and delivered pursuant to the Credit Agreement (defined below), is among Main Street Capital Corporation, a Maryland corporation (the
"Borrower"), the guarantors party thereto (the "Guarantors"), the Lenders party hereto, Branch Banking
and Trust Company, as administrative agent (the "Administrative Agent") and BOKF, NA DBA BANK OF TEXAS, as an increasing lender (the
"Increasing Lender"). 

 
 

RECITALS    

        The
Borrower, the Guarantors, the lenders party thereto and the Administrative Agent are parties to that certain Second Amended and Restated Credit Agreement, dated as
of September 27, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"). Capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement. 

        Pursuant
to Section 2.14 of the Credit Agreement, the Borrower has notified the Administrative Agent that the Borrower proposes to increase the aggregate Revolver Commitments
under the Credit Agreement by $5,000,000, from the current $555,000,000 to $560,000,000. The Increasing Lender has agreed to increase its Revolver Commitment by the amount of $5,000,000 (the
"Specified Commitment Increase"). Section 2.14(a) of the Credit Agreement requires that any such request for a Commitment Increase shall be in a
minimum amount of $10,000,000. 

        The
parties to this Agreement are entering into this Agreement for purposes of consenting to and effecting the Specified Commitment Increase. 

        NOW,
THEREFORE, in consideration of the Recitals and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Increasing Lender, the Borrower, the Guarantors, the Required Lenders and the Administrative Agent, intending to be legally bound hereby, agree as follows: 

        SECTION 1.    Recitals.    The Recitals are incorporated herein by reference and shall be deemed to be a part
of this Agreement. 

        SECTION 2.    Increasing Lender; Consent.    

        (a)   The
Increasing Lender hereby agrees, as of the Effective Date, to increase its Revolver Commitment by $5,000,000, from $20,000,000 to $25,000,000. Schedule 2.01
to the Credit Agreement is, per Section 2.14 of the Credit Agreement, deemed amended in its entirety to read as set forth on Exhibit A
attached to this Agreement. The amount of each Lender's total Revolver Commitment, as increased in the case of the Increasing Lender, is the amount set forth opposite the name of such Lender on
Schedule 2.01. The Borrower shall deliver to the Increasing Lender a replacement Revolver Note in the amount of the Increasing Lender's Revolver Commitment (such replacement Revolver Note is
hereinafter referred to as the "Replacement Note"), executed by the Borrower. All references contained in the Credit Agreement and the other Loan
Documents to the "Revolver Notes" shall include the Replacement Note as supplemented, modified, amended, renewed or extended from time to time. 

        (b)   The
Required Lenders hereby consent to the Specified Commitment Increase. The consent set forth in this  Section 2(b) does not operate as a consent to departure from any provision of the Credit
Agreement other than as set forth above with respect to
the Specified Commitment Increase and does not operate to waive any Default or Event of Default. The consent set forth in this Section 2(b) shall
not be deemed to establish a course of dealing between the parties or waive any Lender's or the Administrative Agent's right to withhold its consent to any similar requests in the future, nor shall
the consent set forth in this Section 2(b) be deemed to limit, estop or otherwise restrict or prohibit any Lender or the Administrative Agent
from 

 

exercising
any of its rights or remedies under the Credit Agreement or other Loan Documents, or under applicable laws or principles of equity with respect to the occurrence of any Default or Event of
Default, all of which rights and remedies are specifically hereby reserved. 

        SECTION 3.    Obligations of Lenders.    Each party hereto acknowledges and agrees that the Revolver
Commitments of the Increasing Lender and the other Lenders under the Credit Agreement are several and not joint commitments and obligations of such Lenders. 

        SECTION 4.    Conditions to Effectiveness.    Each party hereto agrees that this Agreement and the
effectiveness of the Specified Commitment Increase as provided in this Agreement shall be subject to satisfaction by the Loan Parties of the following conditions and requirements: 

        (a)   The
Borrower shall have delivered to the Administrative Agent the following in form and substance satisfactory to the Administrative Agent: 

          (i)  duly
executed counterparts of this Agreement signed by the Increasing Lender, the Required Lenders, the Borrower, the Guarantors and the Administrative Agent; 

         (ii)  a
duly executed Replacement Note payable to the Increasing Lender; 

        (iii)  a
certificate of the Secretary or Assistant Secretary of the Borrower and each Guarantor, certifying to and attaching the resolutions adopted by the board of directors
(or similar governing body) of such party approving or consenting to the Specified Commitment Increase; 

        (iv)  all
conditions precedent to the Specified Commitment Increase set forth in Section 2.14(a) of the Credit Agreement shall have been satisfied; 

         (v)  a
certificate of the Chief Financial Officer or another Responsible Officer of the Borrower, certifying that (x) as of the date hereof, all representations and
warranties of the Borrower and the Guarantors contained in this Agreement, the Credit Agreement and the other Loan Documents are true and correct (except to the extent any such representation or
warranty is expressly stated to have been made as of a specific date, in which case such representation or warranty is true and correct as of such date), (y) immediately after giving effect to
the Specified Commitment Increase (including any Borrowings in connection therewith and the application of the proceeds thereof), the Borrower is in compliance with the covenants contained in
Article V of the Credit Agreement, and (z) no Default or Event of Default has occurred and is continuing, both immediately before and after giving effect to the Specified Commitment
Increase (including any Borrowings in connection therewith and the application of the proceeds thereof); and 

        (vi)  such
other documents or items that the Administrative Agent, the Increasing Lender or their respective counsel may request. 

        (b)   The
Borrower shall have paid in connection with the Specified Commitment Increase such fees in such amounts as are separately agreed between the Borrower and the
Increasing Lender, and the Borrower and the Administrative Agent. 

        (c)   The
Borrower shall have paid to the Administrative Agent, upon application with appropriate documentation, all reasonable costs and expenses of the Administrative Agent,
including reasonable fees, charges and disbursements of counsel for the Administrative Agent, incurred in connection with this Agreement and the transactions contemplated herein. 

2

 

        SECTION 5.    Representations and Warranties.    The Borrower and the Guarantors hereby represent and warrant
to the Administrative Agent and to each of the Lenders as follows: 

        (a)   No
Default or Event of Default under the Credit Agreement or any other Loan Document has occurred and is continuing on the date hereof, or shall result from the
Specified Commitment Increase. 

        (b)   The
Borrower and the Guarantors have the power and authority to enter into this Agreement and issue the Replacement Note and to do all acts and things as are required or
contemplated hereunder or thereunder to be done, observed and performed by them. 

        (c)   Each
of this Agreement and the Replacement Note has been duly authorized, validly executed and delivered by one or more authorized officers of the Borrower (in the case
of this Agreement and the Replacement Note) and the Guarantors (in the case of this Agreement). Each of this Agreement and the Replacement Note constitutes the legal, valid and binding obligations of
the Borrower and the Guarantors enforceable against them in accordance with their respective terms. 

        (d)   The
execution and delivery of each of this Agreement and the Replacement Note and the performance by the Borrower and the Guarantors hereunder and thereunder do not and
will not require the consent or approval of any regulatory authority or governmental authority or agency having jurisdiction over the Borrower, or any Guarantor, nor be in contravention of or in
conflict with the articles of incorporation, bylaws or other organizational documents of the Borrower, or any Guarantor that is a corporation, the articles of organization or operating agreement of
any Guarantor that is a limited liability company, or the provision of any statute, or any judgment, order or indenture, instrument, agreement or undertaking, to which any Borrower, or any Guarantor
is party or by which the assets or properties of the Borrower and the Guarantors are or may become bound. 

        SECTION 6.    Effect of Agreement.    On the Effective Date, this Agreement shall have the effects set forth in
Section 2.14(e) of the Credit Agreement and the Increasing Lender and the Administrative Agent shall make such payments and adjustments among the Lenders as are contemplated thereby such that
each Lender's Advances remain consistent with their pro rata percentage of the Revolver Commitments after giving effect to the Specified Commitment Increase. 

        SECTION 7.    No Other Amendment.    Except for the supplements set forth in this Agreement, the text of the
Credit Agreement shall remain unchanged and in full force and effect. On and after the Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the
Credit Agreement, as supplemented by this Agreement. This Agreement is not intended to effect, nor shall it be construed as, a novation. The Credit Agreement and this Agreement shall be construed
together as a single agreement. This Agreement shall constitute a Loan Document under the terms of the Credit Agreement. Nothing herein contained shall waive, annul, vary or affect any provision,
condition, covenant or agreement contained in the Credit Agreement, except as herein expressly agreed, nor affect or impair any rights, powers or remedies under the Credit Agreement as hereby
supplemented. The Lenders and the Administrative Agent do hereby reserve all of their rights and remedies against all parties who may be or may hereafter become secondarily liable for the repayment of
the Obligations. The Borrower and Guarantors promise and agree to perform all of the requirements, conditions, agreements and obligations under the terms of the Credit Agreement as hereby
supplemented, such obligations under the Credit Agreement, as supplemented, the Collateral Documents and the other Loan Documents being hereby acknowledged, ratified and reaffirmed by the Borrower and
Guarantors. The Borrower and Guarantors hereby expressly agree that the Credit Agreement, as supplemented, the Collateral Documents and the other Loan Documents are in full force and effect and hereby
expressly reaffirm all Liens granted by the Borrower and Guarantors under the Loan Documents. 

3

 

        SECTION 8.    Counterparts.    This Agreement may be executed in multiple counterparts, each of which shall be
deemed to be an original and all of which, taken together, shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or
electronic means (including pdf) shall be effective as delivery of a manually executed counterpart of this Agreement. 

        SECTION 9.    Governing Law.    This Agreement shall be construed in accordance with and governed by the laws
of the State of North Carolina. 

        SECTION 10.    Further Assurances.    The Loan Parties agree to promptly take such action, upon the request of
the Administrative Agent, as is necessary to carry out the intent of this Agreement. 

        SECTION 11.    Consent by Guarantors.    The Guarantors consent to the foregoing amendments. The Guarantors
promise and agree to perform all of the requirements, conditions, agreements and obligations under the terms of the Credit Agreement, as hereby supplemented, the Collateral Documents and the other
Loan Documents to which they are party, said Credit Agreement, as hereby supplemented, the Collateral Documents and such other Loan Documents being hereby acknowledged, ratified and reaffirmed. In
furtherance and not in limitation of the foregoing, the Guarantors acknowledge and agree that the Guaranteed Obligations (as defined in the Credit Agreement) include, without limitation, the
indebtedness, liabilities and obligations evidenced by the Replacement Note and the Advances made under the Credit Agreement as hereby supplemented. 

        SECTION 12.    Severability.    Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions
hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction. 

        SECTION 13.    Notices.    All notices, requests and other communications to any party to the Loan Documents,
as supplemented hereby, shall be given in accordance with the terms of Section 9.01 of the Credit Agreement. 

[The remainder of this page has been intentionally left blank.] 

4

        IN
WITNESS WHEREOF, the parties hereto have executed and delivered, or have caused their respective duly authorized officers and representatives to execute and deliver, this Agreement as
of the day and year first above written. 

 

 
 

									
	 	 	 INCREASING LENDER:
	

 	
 	
 BOKF, NA DBA BANK OF TEXAS
	

 	
 	
By:	
 	
/s/ JUD MILLER

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Jud Miller	 	 
	 	 	 	 	Title:	 	 Vice President	 	 

 

   

   

 
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 BORROWER:
	

 	
 	
 MAIN STREET CAPITAL CORPORATION
	

 	
 	
By:	
 	
/s/ BRENT D. SMITH

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Brent D. Smith	 	 
	 	 	 	 	Title:	 	 Chief Financial Officer	 	 
	

 	
 	
 GUARANTORS:
	

 	
 	
 MAIN STREET CAPITAL PARTNERS, LLC
	

 	
 	
By:	
 	
/s/ BRENT D. SMITH

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Brent D. Smith	 	 
	 	 	 	 	Title:	 	 Chief Financial Officer	 	 
	

 	
 	
 MAIN STREET EQUITY INTERESTS, INC.
	

 	
 	
By:	
 	
/s/ BRENT D. SMITH

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Brent D. Smith	 	 
	 	 	 	 	Title:	 	 Chief Financial Officer	 	 

 

   

   

 
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 BRANCH BANKING AND TRUST COMPANY,

as Administrative Agent
	

 	
 	
By:	
 	
/s/ MICHAEL SKORICH

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Michael Skorich	 	 
	 	 	 	 	Title:	 	 Senior Vice President	 	 

 

   

   

 
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 BRANCH BANKING AND TRUST COMPANY,

as a Lender
	

 	
 	
By:	
 	
/s/ WILLIAM B. KEENE

 	
 	
(SEAL)
	 	 	 	 	Name:	 	William B. Keene	 	 
	 	 	 	 	Title:	 	 Senior Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 FROST BANK, as a Lender
	

 	
 	
By:	
 	
/s/ JAKE FITZPATRICK

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Jake Fitzpatrick	 	 
	 	 	 	 	Title:	 	 Assistant Vice President	 	 

 

   

   

 
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 ROYAL BANK OF CANADA, as a Lender
	

 	
 	
By:	
 	
/s/ GLENN VAN ALLEN

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Glenn Van Allen	 	 
	 	 	 	 	Title:	 	 Authorized Signatory	 	 

 

   

   

 
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 WHITNEY BANK, as a Lender
	

 	
 	
By:	
 	
/s/ NATE ELLIS

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Nate Ellis	 	 
	 	 	 	 	Title:	 	 Vice President	 	 

 

   

   

 
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 ZB, N.A. DBA AMEGY BANK, as a Lender
	

 	
 	
By:	
 	
/s/ MEGAN WIGINTON

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Megan Wiginton	 	 
	 	 	 	 	Title:	 	 Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 TEXAS CAPITAL BANK, N.A., as a Lender	 	 
	

 	
 	
By:	
 	
/s/ EVA PAWELEK

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Eva Pawelek	 	 
	 	 	 	 	Title:	 	 Senior Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 CADENCE BANK, N.A., as a Lender	 	 
	

 	
 	
By:	
 	
/s/ TAYLOR DUCOFF

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Taylor Ducoff	 	 
	 	 	 	 	Title:	 	 Assistant Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 TRUSTMARK NATIONAL BANK, as a Lender	 	 
	

 	
 	
By:	
 	
/s/ JEFF DEUTSCH

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Jeff Deutsch	 	 
	 	 	 	 	Title:	 	 Senior Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 GOLDMAN SACHS BANK USA, as a Lender	 	 
	

 	
 	
By:	
 	
/s/ MEGAN SULLIVAN

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Megan Sullivan	 	 
	 	 	 	 	Title:	 	 Authorized Signatory	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 COMERICA BANK, as a Lender	 	 
	

 	
 	
By:	
 	
/s/ L.J. PERENYI

 	
 	
(SEAL)
	 	 	 	 	Name:	 	L.J. Perenyi	 	 
	 	 	 	 	Title:	 	 Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 RAYMOND JAMES BANK, N.A., as a Lender	 	 
	

 	
 	
By:	
 	
/s/ JOSEPH A. CICCOLINI

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Joseph A. Ciccolini	 	 
	 	 	 	 	Title:	 	 Vice President—Senior Corporate Banker	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 BOKF, NA DBA BANK OF TEXAS,

as a Lender	 	 
	

 	
 	
By:	
 	
/s/ JUD MILLER

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Jud Miller	 	 
	 	 	 	 	Title:	 	 Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 CITY NATIONAL BANK, as a Lender	 	 
	

 	
 	
By:	
 	
/s/ CHARLES HILL

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Charles Hill	 	 
	 	 	 	 	Title:	 	 Senior Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 

 
 

									
	 	 	 FIRST FINANCIAL BANK, N.A., as a Lender	 	 
	

 	
 	
By:	
 	
/s/ TIM COLLARD

 	
 	
(SEAL)
	 	 	 	 	Name:	 	Tim Collard	 	 
	 	 	 	 	Title:	 	 Executive Vice President	 	 

 

   

   

  
[SIGNATURE PAGE TO SUPPLEMENT AGREEMENT] 

 
 

  Exhibit A
  
    Schedule 2.01
  Revolver Commitments    
    

 

 
 

					
	Lender

 
	 	Revolver

Commitment 	 
	 Branch Banking and Trust Company
	 	

$	100,000,000	 
	 Frost Bank
	 	

$	75,000,000	 
	 Royal Bank of Canada
	 	

$	55,000,000	 
	 Whitney Bank
	 	

$	50,000,000	 
	 ZB, N.A. dba Amegy Bank
	 	

$	50,000,000	 
	 Texas Capital Bank, N.A. 
	 	

$	35,000,000	 
	 Cadence Bank, N.A. 
	 	

$	35,000,000	 
	 Trustmark National Bank
	 	

$	30,000,000	 
	 Goldman Sachs Bank USA
	 	

$	30,000,000	 
	 Comerica Bank
	 	

$	25,000,000	 
	 Raymond James Bank, N.A. 
	 	

$	25,000,000	 
	 BOKF, NA dba Bank of Texas
	 	

$	25,000,000	 
	 City National Bank
	 	

$	15,000,000	 
	 First Financial Bank, N.A. 
	 	

$	10,000,000	 
	 Total
	 	

$	560,000,000	 

 

 

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Exhibit 10.1

SUPPLEMENT AGREEMENT

RECITALS

Exhibit A Schedule 2.01 Revolver CommitmentsExhibit 10.1

  

SEPARATION AND CONSULTING AGREEMENT

 

THIS SEPARATION AND CONSULTING
AGREEMENT (the “Agreement”) is made and entered into effective as of August 3, 2017 (the “Effective
Date”), by and between Lilis Energy, Inc., a Nevada corporation (the “Company”), and Abraham Mirman
(the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Executive
and the Company are parties to that certain Employment Agreement effective as of July 5, 2016 and since amended effective as of
March 8, 2017 and May 4, 2017 (the “Employment Agreement”); and

 

WHEREAS, the Executive
intends to resign from the Company, and the parties mutually desire to arrange for a separation from the Company and its affiliates
and subsidiaries under certain terms; and

 

WHEREAS, the Executive
possesses business knowledge and expertise which may be of substantial assistance to the Company following his employment in a
consulting role; and

 

WHEREAS, in consideration
of the mutual promises contained herein, the parties hereto are willing to enter into this Agreement upon the terms and conditions
herein set forth.

 

NOW, THEREFORE, in consideration
of the premises, the terms and provisions set forth herein, the mutual benefits to be gained by the performance thereof and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.              
Resignation as Officer; Separation. As of August 4, 2017, the Executive shall resign all officer and director
positions with the Company and its affiliates and shall resign from his position as an employee of the Company (the “Separation
Date”). The Executive agrees to timely execute such further documentation as may be necessary to effectuate such resignations.

 

2.              
Separation Benefits. The Company agrees to pay or provide, and the Executive agrees to accept, the benefits
set forth in this Section 2 in consideration for the Executive’s service through the Separation Date, satisfaction of
any and all obligations under the Employment Agreement, and the Executive’s execution (without revocation) of the Waiver
and Release on or after the Separation Date as described in Section 5 below.

 

A.                     
Accrued Benefits. The Company shall pay to the Executive all base salary, vacation pay and properly
documented expense reimbursements that are accrued and unpaid as of the Separation Date within 15 days following the Separation
Date.

 

B.                      
Lump-sum Severance Payment. The Company shall pay to the Executive a lump-sum cash payment equal to
$1,000,000 within three days following the Waiver Effective Date (as defined below).

 

    	 	1	 

     

    

  

C.                      
Equity Compensation. Any stock option previously granted to the Executive that is outstanding and unvested
as of the Separation Date shall become fully vested and exercisable as of the Waiver Effective Date and shall, notwithstanding
the Executive’s intervening separation, remain exercisable for the maximum original term as set forth in the applicable award
agreement. Any shares of restricted stock previously granted to the Executive that are outstanding and unvested as of the Separation
Date shall become fully vested as of the Waiver Effective Date.

 

D.                     
Warrants. Any outstanding warrant held by the Executive, each of which was acquired in his capacity
as an investor in the Company, shall be amended to the extent necessary to allow the Executive to exercise such warrant via a “cashless”
net exercise procedure or the Company shall take such actions as may be necessary to provide an equivalent economic benefit to
the Executive.

 

E.                      
Medical Continuation Subsidy. The Company shall timely pay the Executive’s premiums for family
medical, dental and vision continuation coverage under Section 4890B of the Internal Revenue Code (“COBRA”)
for 18 months or until the Executive obtains alternative coverage, whichever is the shorter time period.

 

F.                       
Reimbursement of Attorneys Fees. The Executive shall be entitled to the reimbursement of his reasonable
attorneys fees incurred in connection with the review and preparation of the documents related to his separation. Such reimbursement
shall be made no later than 15 days following receipt of appropriate documentation of such expenses.

 

G.Withholding. All
payments in this Section 2 shall be subject to applicable withholdings and the Company shall issue to the Executive a Form
W-2 as required by law.

 

3.              
Engagement as Consultant: Following the Separation Date, the Company agrees to retain the Executive commencing
on the day following his separation as an independent consultant, and the Executive agrees to render consulting services for the
one year period commencing on the day following the Separation Date, unless such consulting arrangement is terminated earlier pursuant
to Section 3(E) hereof or is extended by mutual agreement of the parties (the “Consulting Term”).

 

A.                     
Terms and Responsibilities. During the Consulting Term, the Executive shall devote such of his time
and his efforts as may be mutually agreed are required from time to time to perform his duties hereunder.

 

B.                       Duties.
The Company hereby engages the Executive to provide during the Consulting Term such services of a consulting or advisory
nature as the Company may reasonably request with respect to its business. The Executive will primarily provide consulting
services with respect to the transition of leadership to a new Chief Executive Officer.
The Executive shall act solely in a consulting capacity hereunder and shall not have authority to act for the Company or to
give instructions or orders on behalf of the Company or otherwise to make commitments for or on behalf of the Company.
The Executive shall not be an employee of the Company during the Consulting Term, but shall act in the capacity of an
independent contractor. The Company shall not exercise control over the detail, manner or methods of the performance of the
services by the Executive during the Consulting Term.

 

    	 	2	 

     

    

  

C.                      
Compensation and Benefits. As full and complete compensation for any and all services which the Executive
may render during the Consulting Term:

 

i.                   
The Company shall pay the Executive a monthly consulting fee at the rate of $41,660.67 per month, for which the Company
shall issue the Executive a Form 1099, as required by law.

 

ii.                 
The Company shall make available for the Executive’s use during the Consulting Term an office reasonably comparable
to the offices of senior executives of the Company and shall make available for assistance to the Executive for Company business
an administrative assistant with experience working with senior executive of the Company, which the parties expect to be the Executive’s
currently assigned assistant.

 

iii.               
The Executive shall not receive nor be entitled to participate in any benefits or benefit plans with respect to the
work done during the Consulting Term, and Executive agrees to waive any claims to such benefits.

 

D.                     
Reimbursement. The Executive shall be entitled to receive reimbursement for all reasonable and documented
expenses incurred by the Executive during the Consulting Term in furtherance of Executive’s consulting duties. All reimbursable
expenses shall be appropriately documented in reasonable detail by the Executive upon submission of any request for reimbursement
and in a format and manner consistent with the Company’s expense reporting policy. Payment for said invoiced amounts shall
be paid by the Company within 15 days after receipt of invoice by the Company. Should the Company dispute any portion of the Executive’s
monthly invoice, the Company shall pay the undisputed portion of the invoice and advise the Executive in writing of the disputed
portion. The parties will cooperate in good faith to resolve any disputed portions.

 

E.                      
Termination of Service. The Executive’s engagement as a consultant will terminate automatically
upon the Executive’s timely revocation of this Agreement as provided for in Section 5 hereof, Executive’s death, or
upon the Executive’s disability rendering him unable to perform services hereunder for a period of 90 days and, except as
otherwise provided in this Section 3(E), the Executive shall be entitled to no further compensation or benefits provided for in
this Section 3. Either the Company or the Executive may terminate the Executive’s engagement as a consultant hereunder for
any reason upon fourteen days written notice for any reason; provided, however, that if a Change in Control (as defined in the
Lilis Energy, Inc. 2016 Omnibus Incentive Plan or any plan approved by the shareholders of the Company to replace such incentive
plan) occurs, the Company terminates the Executive’s engagement as a consultant prior to the end of the full original Consulting
Term without cause, or if the Executive’s services terminate due to death or disability, the Company shall pay to the Executive
(or the Executive’s estate or representative, as applicable) within 10 days following such termination, a lump sum equal
to all amounts that, notwithstanding such termination, would have been paid during the full original Consulting Term pursuant to
Section 3(C)(i).

 

    	 	3	 

     

    

 

4.              
Restrictive Covenants.

 

A.                     
The Executive’s Obligations.

 

i.                   
The Executive agrees that for the period beginning on the Separation Date and extending through the Consulting Term
(the “Restricted Period”) he shall not (a) criticize or disparage, publicly or privately, the Company or
any affiliate in a manner intended or reasonably calculated to result in substantial public embarrassment to, or material injury
to the reputation of, the Company or any affiliate in any community in which the Company or any affiliate is engaged in business
or (b) intentionally commit damage to the property of the Company or any affiliate or otherwise engage in any misconduct which
is intentionally injurious to the business or reputation of the Company or any affiliate; provided, however, that the Executive
will not be in breach of the covenant contained in (a) above solely by reason of his testimony which is compelled by process of
law or in taking any action to secure his rights under this Agreement as otherwise contemplated herein.

 

ii.                 
The Executive agrees that during the Restricted Period, the Executive will not engage or employ, or solicit or contact
with a view to the engagement or employment of, any person who is an officer or employee of the Company or any of its Affiliates.

 

iii.               
During the Restricted Period, the Executive shall not, without prior consent of the Board of Directors of the Company,
directly or indirectly (whether as proprietor, stockholder, director, partner, employee, independent contractor, consultant, trustee
or in any other capacity), perform services or acquire an ownership interest in any area of interest in which the Company participates
or is actively considering participating as of the Effective Date as identified on Exhibit B attached hereto (each an "Area
of Interest"); provided, however, that the Executive shall not be deemed to violate this restriction solely by virtue of the
Executive's ownership of not more than 4.9% of any class of stock or other securities which are publicly traded on a national securities
exchange or in a recognized over-the-counter market. Any Area of Interest that the Company declines to pursue may be pursued by
the Executive without violating this section.

 

iv.               
The Company agrees that the restrictive covenants regarding competition set forth in Section 12.1 of the Employment
Agreement shall be null and shall not apply on or after the Separation Date.

 

v.                 
The covenants set forth in this Section 4(A) shall be null and shall not apply on or after the date on which occurs
a “Change in Control” (as defined in the Lilis Energy, Inc. 2016 Omnibus Incentive Plan or any plan approved by the
shareholders of the Company to replace such incentive plan).

 

    	 	4	 

     

    

  

B.                      
The Company’s Obligations.

 

i.                   
The Company agrees, from and after the Separation Date, not to, and to take commercially reasonable efforts to cause
its directors, officers, employees and agents not to, (a) criticize or disparage, publicly or privately, the Executive in
a manner intended or reasonably calculated to result in substantial public embarrassment to, or material injury to the reputation
of, the Executive in any community in which the Executive is engaged in business or (b) intentionally commit damage to the
property of the Company or any affiliate or otherwise engage in any misconduct which is intentionally injurious to the business
or reputation of the Company or any affiliate; provided, however, that the Company will not be in breach of the covenant contained
in (a) above solely by reason of the testimony of an officer, director, employee or agent of the Company which is compelled by
process of law or by reason of taking any action to secure the Company’s rights under this Agreement as otherwise contemplated
herein.

 

ii.                 
The Company agrees that during the Restricted Period, the Company will not, and will cause its directors, officers,
employees and agents to not, engage or employ, or solicit or contact with a view to the engagement or employment of, any person
who is an officer or employee of an entity controlled by the Executive.

 

C.                      
Protected Disclosures. Notwithstanding any provision to the contrary in this Agreement, nothing in
this Agreement prohibits the Executive from reporting possible violations of law or regulation to any governmental agency or entity,
including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector
General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Additionally,
the parties acknowledge and agree that Executive does not need the prior authorization of the Company to make any such reports
or disclosures and Executive is not required to notify the Company that Executive has made such reports or disclosures.

 

5.              
Waiver and Release. In consideration for the Executive’s execution of and compliance with this Agreement,
including but not limited to the provisions of Section 4, and the execution of the Waiver and Release attached hereto as Exhibit A,
the Company shall provide the consideration set forth above in Section 2(B) through (F). This consideration is provided subject
to the binding execution, without revocation prior to the 8th day following execution (the “Waiver Effective Date”),
by the Executive of the attached Waiver and Release agreement, no earlier than the Separation Date and no later than the date 21
days after the Separation Date. The Company’s obligation to make any payments otherwise due under Section 2(B) through
(F) shall cease in the event the Executive fails to comply with the terms of this Agreement or the Waiver and Release, and no payment
shall be made until the expiration of the seven-day revocation period following execution of the Waiver and Release agreement,
provided that such payments shall accrue from the Separation Date.

 

In consideration of the premises and promises
contained herein, the Company releases and discharges Executive from any and all causes of action, claims, liabilities, obligations,
promises, agreements, controversies, damages, and expenses, whether in law or equity, arising prior to the Separation Date other
than claims that cannot be released as a matter of law.

 

    	 	5	 

     

    

  

The Company and the Executive hereby agree
that at the conclusion of the Consulting Term they will enter into a mutual release of claims of the same breadth as the release
contained in the Waiver and Release attached hereto as Exhibit A and this Section 5.

 

6.              
Return of Company Property. All records, designs, patents, business plans, financial statements, manuals,
memoranda, lists and other property delivered to or compiled by the Executive by or on behalf of the Company, or any of its affiliates
or the representatives, vendors or customers thereof that pertain to the business of the Company or any of its affiliates shall
be and remain the property of the Company or any such affiliate, as the case may be, and be subject at all times to the discretion
and control thereof. Likewise, all correspondence, reports, records, charts, advertising materials and other similar data pertaining
to the business, activities or future plans of the Company or its affiliates that are collected or held by the Executive shall
be delivered promptly to the Company or its affiliate, as the case may be, on or prior to the Separation Date or such other date
as the Company may indicate. Notwithstanding anything in this Section 6, the Executive shall be permitted to continue use of his
Company email account throughout the Consulting Term.

 

7.              
Indemnification. In the event that the Executive is made a party or threatened to be made a party to any action,
suit, or proceeding (a “Proceeding”), other than any Proceeding initiated by the Executive or the Company related
to any contest or dispute between Executive and the Company or any of its subsidiaries, by reason of the fact that the Executive
is or was a director or officer of, an employee or consultant of, or was otherwise acting on behalf of, the Company, any affiliate
of the Company, any employee benefit plan or any other entity at the request of the Company, the Executive shall be indemnified
and held harmless by the Company, to the maximum extent permitted under applicable law, from and against any and all liabilities,
costs, claims and expenses, including any and all costs and expenses incurred in defense of any Proceeding, and all amounts paid
in settlement thereof after consultation with, and receipt of approval from, the Company, which approval shall not be unreasonably
withheld, conditioned or delayed. Costs and expenses incurred by the Executive in defense of such Proceeding shall be paid by the
Company in advance of the final disposition of such litigation upon receipt by the Company of: (i) a written request for payment;
(ii) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment is being
sought; and (iii) an undertaking adequate under applicable law made by or on behalf of the Executive to repay the amounts so paid
if it shall ultimately be determined that the Executive is not entitled to be indemnified by the Company under this Agreement.
The rights to indemnification and advancement of costs and expenses provided in this Section 7 are not and will not be deemed exclusive
of any other rights or remedies to which the Executive may at any time be entitled under applicable law, the organizational documents
of the Company or any of its subsidiaries, any agreement or otherwise, and each such right under this Section 7 will be cumulative
with all such other rights, if any. During the Consulting Period and for a period of six years thereafter, the Company or any successor
to the Company hereunder shall maintain, at its own expense, liability insurance providing coverage to the Executive on terms that
are no less favorable than the coverage provided to directors and senior officers of the Company as of the Effective Date.

 

    	 	6	 

     

    

  

8.              
Nonassignability. Except for those rights that may accrue to the Executive’s family or estate
in the event of his death or disability, neither this Agreement nor any right or interest hereunder shall be subject, in any manner,
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, whether voluntary or involuntary, by operation
of law or otherwise, any attempt at such shall be void; provided, that any such benefit shall not in any way be subject to the
debts, contract, liabilities, engagements or torts of the Executive, nor shall it be subject to attachment or legal process for
or against the Executive.

 

9.              
Entire Agreement; Modification. This Agreement, together with the agreements applicable to the Executive’s
outstanding stock options and warrants, as amended pursuant to this Agreement, sets forth the entire agreement and understanding
of the parties concerning the subject matter hereof, and supersedes all prior agreements, arrangements and understandings relative
to that subject matter including, without limitation, the Employment Agreement, except to the extent of specific provisions thereof
expressly incorporated into this Agreement. No term or provision hereof may be modified or extinguished, in whole or in part, except
by a writing which is dated and signed by the parties to this Agreement. No waiver of any of the provisions or conditions of this
Agreement or of any of the rights, powers or privileges of a party will be effective or binding unless in writing and signed by
the party claimed to have given or consented to such waiver. No representation, promise or inducement has been made to or relied
upon by or on behalf of either party concerning the subject matter hereof which is not set forth in this Agreement. In particular,
the Executive acknowledges and agrees that he is not entitled to receive from the Company any incentive or other compensation or
payment related to his services to the Company or the termination thereof, other than the consideration specifically set forth
herein. Notwithstanding the foregoing, to the extent that any matter is not specifically addressed in this Agreement, then any
terms of the Employment Agreement which address such matter shall remain in effect and be incorporated into this Agreement up to
and until the Separation Date.

 

10.          
Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an
estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such
waiver or estoppel.

 

11.          
Set-Off. The Company’s obligation to make payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall not be affected by any setoff, counterclaim, recoupment, defense, mitigation or other claim, right
or action which the Company may have against the Executive or others

 

12.          
Notices. All notices or communications hereunder shall be in writing, addressed as follows:

 

To the Company:

Lilis Energy, Inc.

300 E. Sonterra Blvd.

Suite 1220

San Antonio, Texas 78258

Attn: General Counsel

 

To the Executive, at the address and fax number of record
in the Company’s file.

 

    	 	7	 

     

    

  

All such notices shall be conclusively
deemed to be received and shall be effective; (i) if sent by hand delivery, upon receipt, (ii) if sent by telecopy or
facsimile transmission, upon confirmation of receipt by the sender of such transmission, or (iii) if sent by registered or
certified mail, on the fifth day after the day on which such notice is mailed.

 

13.          
Source of Payments. All cash payments provided in this Agreement will be paid from the general funds of the
Company. The Executive’s status with respect to amounts owed under this Agreement will be that of a general unsecured creditor
of the Company.

 

14.          
Tax Withholding. The Company may withhold from any benefits payable under this Agreement all federal, state,
city or other income or employment taxes to the extent required pursuant to any law or governmental regulation or ruling. The parties
agree that the amounts paid pursuant to Section 3 on account of the Executive’s consulting services shall not be subject
to income or employment tax withholding, and the Executive will be responsible for all income and employment taxes associated with
such payments.

 

15.          
Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, in whole
or part, such invalidity will not affect any otherwise valid provision, and all other valid provisions will remain in full force
and effect.

 

16.          
Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an
original, and all of which together will constitute one document.

 

17.          
Titles. The titles and headings preceding the text of the paragraphs and subparagraphs of this Agreement have
been inserted solely for convenience of reference and do not constitute a part of this Agreement or affect its meaning, interpretation
or effect.

 

18.          
Section 409A Compliance.

 

A.                     
Each payment under this Agreement, including each payment in a series of installment payments, is intended to be
a separate payment for purposes of Treas. Reg. § 1.409A-2(b), and is intended to be: (i) exempt from Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), the regulations and other binding guidance promulgated thereunder
(“Section 409A”), including, but not limited to, by compliance with the short-term deferral exemption as specified
in Treas. Reg. § 1.409A-1(b)(4) and the involuntary separation pay exception within the meaning of Treas. Reg. § 1.409A-1(b)(9)(iii),
or (ii) in compliance with Section 409A, including, but not limited to, being paid pursuant to a fixed schedule or specified date
pursuant to Treas. Reg. § 1.409A-3(a) and the provisions of this Agreement will be administered, interpreted and construed
accordingly. Notwithstanding the foregoing provisions of this Agreement, if the payment of any compensation or benefits under this
Agreement would be subject to additional taxes and interest under Section 409A because the timing of such payment is not delayed
as provided in Section 409A(a)(2)(B)(i) of the Code, and Executive constitutes a specified employee within the meaning of Section
409A(a)(2)(B)(i) of the Code, then any such payments that Executive would otherwise be entitled to during the first six months
following Executive’s separation from service within the meaning of Section 409A(a)(2)(A)(i) of the Code shall be accumulated
and paid on the date that is six months after Executive’s separation from service (or if such payment date does not fall
on a business day of the Company, the next following business day of the Company), or such earlier date upon which such amount
can be paid under Section 409A without being subject to such additional taxes and interest.

 

    	 	8	 

     

    

  

B.                      
All reimbursements pursuant to this Agreement shall be made in accordance with Treas. Reg. § 1.409A-3(i)(1)(iv)
such that the reimbursements will be deemed payable at a specified time or on a fixed schedule relative to a permissible payment
event. Specifically, the amounts reimbursed under this Agreement during the Executive’s taxable year may not affect the amounts
reimbursed in any other taxable year (except that total reimbursements may be limited by a lifetime maximum under a group health
plan), the reimbursement of an eligible expense shall be made on or before the last day of the Executive’s taxable year following
the taxable year in which the expense was incurred, and the right to reimbursement is not subject to liquidation or exchange for
another benefit.

 

19.          
Governing Law; Venue. This Agreement shall be construed and interpreted in accordance with the internal laws
of the State of New York without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other
jurisdiction that could cause the application of the laws of any jurisdiction other than the State of New York. For purposes of
resolving any dispute that arises directly or indirectly from the relationship of the parties evidenced by this Agreement, the
parties hereby submit to and consent to the exclusive jurisdiction of the State of New York and agree that any related litigation
shall be conducted solely in the courts of New York County, New York or the federal courts for the United States for the Southern
District of New York, where this Agreement is made and/or to be performed, and no other courts. Each Party may be served with process
in any manner permitted under State of New York law, or by United States registered or certified mail, return receipt requested.

 

20.          
Waiver of Jury Trial. EACH OF THE EXECUTIVE AND THE COMPANY HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

21.          
Terms. The term “affiliate” means any subsidiary, any officer, director or employee of the Company
or any subsidiary, and any former officer, director or employee of the Company or any subsidiary.

 

22.          
Successor Obligations. The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree
to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined
and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

 

[END OF PAGE]

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first written above.

 

	 	LILIS ENERGY, INC.
	 	 	 
	 	By:	/s/ Ronald D. Ormand
	 	 	Ronald D. Ormand
	 	 	Executive Chairman of the Board
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	 	/s/ Abraham Mirman
	 	 	Abraham Mirman

  

    	 	10	 

     

    

 

Exhibit A

 

Dated: August 4, 2017

 

WAIVER AND RELEASE

 

In exchange for the consideration
(the “Separation Benefits”) offered under Section 2(B) through (F) the Separation and Consulting Agreement between
me and Lilis Energy, Inc., dated August 3, 2017 (the “Separation Agreement”), which were offered to me
in exchange for my agreement, among other things, to waive all of my claims against and release Lilis Energy, Inc. and its predecessors,
successors and assigns (collectively referred to as the “Company”), all of the affiliates (including parents
and subsidiaries) of the Company (collectively referred to as the “Affiliates”) and the Company’s and
Affiliates’ directors and officers, employees and agents, insurers, employee benefit plans and the fiduciaries and agents
of said plans (collectively, with the Company and Affiliates, referred to as the “Corporate Group”) from any
and all claims, demands, actions, liabilities and damages arising out of or relating in any way to my employment with or separation
from the Company or the Affiliates; provided, however, that this Waiver and Release shall not apply to (1) any existing right I
have to indemnification, contribution and a defense, (2) any directors and officers and general liability insurance coverage, (3)
any rights I may have as a shareholder of the Company and (4) any rights which cannot be waived or released as a matter of law.

 

I understand that
signing this Waiver and Release is an important legal act. I acknowledge that the Company has advised me in writing to consult
an attorney before signing this Waiver and Release and has given me at least 21 days from the day I received a copy of this Waiver
and Release to sign it.

 

In exchange for the payment
to me of the Separation Benefits, I, among other things, (1) agree not to sue in any local, state and/or federal court regarding
or relating in any way to my employment with or separation from the Company or the Affiliates, (2) knowingly and voluntarily waive
all claims and release the Corporate Group from any and all claims, demands, actions, liabilities, and damages, whether known or
unknown, arising out of or relating in any way to my employment with or separation from the Company or the Affiliates and (3) waive
any rights that I may have under any of the Company’s involuntary severance benefit plans, except to the extent that my rights
are vested under the terms of employee benefit plans sponsored by the Company or the Affiliates and except with respect to such
rights or claims as may arise after the date this Waiver and Release is executed. This Waiver and Release includes, but is not
limited to, claims and causes of action under: Title VII of the Civil Rights Act of 1964, as amended (“Title VII”);
the Age Discrimination in Employment Act of 1967, as amended, including the Older Workers Benefit Protection Act of 1990 (“ADEA”);
the Civil Rights Act of 1866, as amended; the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990 (“ADA”);
the Energy Reorganization Act, as amended, 42 U.S.C. §§ 5851; the Workers Adjustment and Retraining Notification Act
of 1988; the Sarbanes-Oxley Act of 2002; the Employee Retirement Income Security Act of 1974, as amended; the Family and Medical
Leave Act of 1993; the Fair Labor Standards Act; the Occupational Safety and Health Act; claims in connection with workers’
compensation or “whistle blower” statutes; and/or contract, tort, defamation, slander, wrongful termination or any
other state or federal regulatory, statutory or common law. Further, I expressly represent that no promise or agreement which is
not expressed in the Separation Agreement has been made to me in executing this Waiver and Release, and that I am relying on my
own judgment in executing this Waiver and Release, and that I am not relying on any statement or representation of the Company,
any of the Affiliates or any other member of the Corporate Group or any of their agents. I agree that this Waiver and Release is
valid, fair, adequate and reasonable, is entered into with my full knowledge and consent, was not procured through fraud, duress
or mistake and has not had the effect of misleading, misinforming or failing to inform me.

 

    	 	A-1	 

     

    

  

This release does not
apply to any claims for unemployment compensation or any other claims or rights which, by law, cannot be waived, including the
right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however that
I agree that I disclaim and waive any right to share or participate in any monetary award from the Company resulting from the prosecution
of such charge or investigation or proceeding. Notwithstanding the foregoing or any other provision in this Waiver and Release
or the Separation Agreement to the contrary, the Company and I further agree that nothing in this Waiver and Release or the Separation
Agreement (i) limits my ability to file a charge or complaint with the EEOC, the NLRB, OSHA, the SEC or any other federal, state
or local governmental agency or commission (each a “Government Agency” and collectively “Government
Agencies”); (ii) limits my ability to communicate with any Government Agencies or otherwise participate in any investigation
or proceeding that may be conducted by any Government Agency, including providing documents or other information and reporting
possible violations of law or regulation or other disclosures protected under the whistleblower provisions of applicable law or
regulation, without notice to the Company; or (iii) limits my right to receive an award for information provided to any Government
Agencies.

 

Should any of the provisions
set forth in this Waiver and Release be determined to be invalid by a court, agency or other tribunal of competent jurisdiction,
it is agreed that such determination shall not affect the enforceability of other provisions of this Waiver and Release. I acknowledge
that this Waiver and Release and the Agreement set forth the entire understanding and agreement between me and the Company or any
other member of the Corporate Group concerning the subject matter of this Waiver and Release and supersede any prior or contemporaneous
oral and/or written agreements or representations, if any, between me and the Company or any other member of the Corporate Group.
I understand that for a period of 7 calendar days following the date that I sign this Waiver and Release, I may revoke my acceptance
of the offer, provided that my written statement of revocation is received on or before that seventh day by the General Counsel,
Lilis Energy, Inc., 300 E. Sonterra Blvd., Suite 1220, San Antonio, Texas 78258, email: afuchs@lilisenergy.com, in which case the
Waiver and Release will not become effective. In the event I revoke my acceptance of this offer, the Company shall have no obligation
to provide me the Separation Benefits. I understand that failure to revoke my acceptance of the offer within 7 calendar days from
the date I sign this Waiver and Release will result in this Waiver and Release being permanent and irrevocable.

 

I acknowledge that I
have read this Waiver and Release, have had an opportunity to ask questions and have it explained to me and that I understand that
this Waiver and Release will have the effect of knowingly and voluntarily waiving any action I might pursue, including breach of
contract, personal injury, retaliation, discrimination on the basis of race, age, sex, national origin, or disability and any other
claims arising prior to the date of this Waiver and Release. By execution of this document, I do not waive or release or otherwise
relinquish any legal rights I may have which are attributable to or arise out of acts, omissions, or events of the Company or any
other member of the Corporate Group which occur after the date of the execution of this Waiver and Release.

 

    	 	A-2	 

     

    

  

		 	
	Executive’s Signature	 	Ronald D. Ormand
	Executive Chairman of the Board	 	 
	 	 	 
	 	 	 
	Executive’s Signature Date	 	Company’s Execution Date

  

    	 	A-3	 

     

    

  

Exhibit B

 

AREAS OF INTEREST

 

 

    	 	B-1

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