Document:

Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

1203
E. 33rd Street

Suite
250

Tulsa,
Oklahoma 74105

(539)
444-8002 

 

August
6, 2020

 

 

		To:	Petroleum Independent
& Exploration LLC

25025
I-45 North, Suite 420

The Woodlands, TX 77380

 

The
undersigned, Empire Petroleum Corporation, a Delaware corporation (the “Company”), hereby agrees with you as follows,
effective as of the date first above written:

 

		1.	Authorization
and Sale of the Securities.

 

1.1       Authorization.
The Company represents that it has authorized the issuance to you (or in the case of the Warrants, your affiliates, nominees or
assignees who are “Accredited Investors” as defined in Section 230.501(a) of the Act) pursuant to the terms and conditions
hereof of:

 

(a)       3,500,000
shares (the “Sale Shares”) of its common stock (par value $0.001 per share) at $0.15 per share (the “Common Stock”);

 

(b)       a
warrant (the “PIE-1 Warrant”) to purchase up to 2,625,000 shares of the Company’s Common Stock (“PIE-1
Warrant Shares”) in accordance with the terms set forth in the form of the Common Share Warrant Certificate attached hereto
as Exhibit A;

 

(c)       a
warrant (the “PIE-2 Warrant”) to purchase up to 1,800,000 shares of the Company’s Common Stock (“PIE-2
Warrant Shares”) in accordance with the terms set forth in the form of the Common Share Warrant Certificate attached hereto
as Exhibit B;

 

(d)       a
warrant (the “PIE-3 Warrant”) to purchase up to 8,136,518 shares of the Company’s Common Stock (“PIE-3
Warrant Shares”) in accordance with the terms set forth in the form of the Common Share Warrant Certificate attached hereto
as Exhibit C; and

 

(e)       a
warrant (the “PIE-4 Warrant”) to purchase up to 11,066,667 shares of the Company’s Common Stock (“PIE-4
Warrant Shares”) in accordance with the terms set forth in the form of the Common Share Warrant Certificate attached hereto
as Exhibit D.

 

 

    	 

    	 

    

The
PIE-1 Warrant, PIE-2 Warrant, PIE-3 Warrant, and PIE-4 Warrant are sometimes collectively referred to herein as the “Warrants.”
The PIE-1 Warrant Shares, PIE-2 Warrant Shares, PIE-3 Warrant Shares, and PIE-4 Warrant Shares are sometimes collectively referred
to herein as the “Warrant Shares.” The Sales Shares and the Warrants are referred to herein, collectively, as the “Securities”.

 

1.2       Sale.
Subject to the terms and conditions hereof, on the Purchase Date (as defined Section 2 below), the Company shall issue and sell
to you and you shall purchase from the Company, the Securities for an aggregate purchase price of $525,000 (the “Purchase
Price”).

 

		2.	Payment of Purchase
Price; Delivery.

 

Upon
the execution of this Agreement, you shall deliver to the Company wire funds payable to the Company in the amount of the Purchase
Price in accordance with the following wire instructions: Arvest Bank, 502 South Main, Tulsa, Oklahoma 74103, (918) 631-1000, Routing
Number: 082900872, FBO: Empire Petroleum Corporation, Account Number: 33585974, 1203 E. 33rd Street, Suite 250, Tulsa,
Oklahoma 74105. Upon receipt of the Purchase Price from you (the “Purchase Date”), the Company shall promptly issue
and deliver to you the Securities. 

 

		3.	Representations
and Warranties of the Company.

 

The
Company hereby represents and warrants to you as follows on the date of this Agreement:

 

3.1       Organization
and Standing; Articles and Bylaws. The Company is a corporation duly organized and existing under, and by virtue of, the laws
of the State of Delaware and is in good standing under such laws. The Company is qualified, licensed or domesticated as a foreign
corporation in all jurisdictions where the nature of its business conducted or the character of its properties owned or leased
makes such qualification, licensing or domestication necessary at this time except in those jurisdictions where the failure to
be so qualified or licensed and in good standing does not and will not have a materially adverse effect on the Company, the conduct
of its business or the ownership or operation of its properties. The Company’s Certificate of Incorporation, as amended,
and Bylaws that have been filed as attachments to the Company reports it files with Securities and Exchange Commission (the “SEC”),
are true, correct and complete, and contain all amendments through the date of this Agreement.

 

3.2       Corporate
Power. The Company has the requisite corporate power to own and operate its properties and assets, and to carry on its business
as presently conducted and as proposed to be conducted. The Company has now, and will have at the Purchase Date, all requisite
legal and corporate power to enter into this Agreement, to sell the Securities hereunder, and to carry out and perform its obligations
under the terms of this Agreement.

 

3.3       Capitalization.
The authorized capital stock of the Company consists of 150,000,000 shares of Common Stock. There are issued and outstanding approximately
21,392,277 shares of Common Stock. The issued and outstanding shares of Common Stock are fully paid and nonassessable. Except as
set our n Schedule 1 hereto (the Disclosure Schedule), there are no outstanding options, warrants or other rights, including preemptive
rights, entitling the holder thereof to purchase or acquire shares of Common Stock.

 

 

 

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3.4       Authorization.

 

(a)       All
corporate action on the part of the Company, its officers, directors and shareholders necessary for the sale and issuance of the
Securities pursuant hereto and the performance of the Company’s obligations hereunder has been taken or will be taken prior
to the Purchase Date. This Agreement is a legal, valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application
affecting enforcement of creditors’ rights, and except as limited by application of legal principles affecting the availability
of equitable remedies.

 

(b)       The
Securities, when issued in compliance with the provisions of this Agreement, will be validly issued, fully paid and nonassessable,
and will be free of any liens or encumbrances; provided, however, that the Sale Shares and the Warrant Shares will be subject to
restrictions on transfer under state and/or Federal securities laws, and as may be required by future changes in such laws.

 

(c)       No
shareholder of the Company has any right of first refusal or any preemptive rights in connection with the issuance of the Securities
or of any other capital stock of the Company or the Warrant Shares.

 

3.5       Compliance
with Instruments. The Company is not in violation of any terms of its Certificate of Incorporation, as amended, or Bylaws,
or, to the knowledge of the Company, any judgment, decree or order applicable to it. The execution, delivery and performance by
the Company of this Agreement, and the issuance and sale of the Securities pursuant hereto and of the Warrant Shares pursuant to
the Warrants, will not result in any such violation or be in conflict with or constitute a default under any such term, or cause
the acceleration of maturity of any loan or material obligation to which the Company is a party or by which it is bound or with
respect to which it is an obligor or guarantor, or result in the creation or imposition of any material lien, claim, charge, restriction,
equity or encumbrance of any kind whatsoever upon, or, to the knowledge of the Company, give to any other person any interest or
right (including any right of termination or cancellation) in or with respect to any of the material properties, assets, business
or agreements of the Company.

 

3.6       Litigation,
etc. There are no actions, proceedings or, to the knowledge of the Company, investigations pending which might result in any
material adverse change in the business, prospects, conditions, affairs or operations of the Company or in any of its properties
or assets, or in any impairment of the right or ability of the Company to carry on its business as proposed to be conducted, or
in any material liability on the part of the Company, or which question the validity of this Agreement or any action taken or to
be taken in connection herewith.

 

3.7       Governmental
Consent, etc. Except as may be required in connection with any filings required under the Federal securities laws and/or the
securities laws of any state due to the offer and sale of the Securities pursuant to this Agreement, no consent, approval or authorization
of, or designation, declaration or filing with, any governmental unit is required on the part of the Company in connection with
the valid execution and delivery of this Agreement, or the offer, sale

 

 

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or issuance of the Securities or the Warrant
Shares or the consummation of any other transaction contemplated hereby.

 

3.8       Securities
Registration and Filings. The outstanding shares of the Company’s Securities are registered pursuant to Section 12(g)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company has filed all reports required
by Section 13 or 15(d) of the Exchange Act during the last two fiscal years. All of such reports were, at the time they were filed,
complete and accurate in all material respects and did not include an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading.

 

		4.	Representations
and Warranties of Purchaser and Restrictions on Transfer Imposed by the Securities Act.

 

4.1       Representations
and Warranties by Purchaser. You represent and warrant to the Company as follows:

 

(a)       You
have reviewed the following copies of the Company’s (all of which is collectively referred to as the “Disclosure Materials”):

 

		(i)	Current Report on Form 8-K/A filed on June 23, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000208/emp_8ka-18407.htm

 

		(ii)	Current Report on Form 8-K filed on June 23, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000207/emp_8k-18407.htm
 

		(iii)	Quarterly Report on Form 10Q for quarter ended March 31, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000180/form10q33120.htm

 

		(iv)	Current Report on Form 8-K filed on April 17, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000164/emp_8k-18389.htm

 

		(v)	Current Report on Form 8-K filed on April 10, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000157/emp_8k-18389.htm

 

		(vi)	Annual Report on Form 10-K for year ended December 31, 2019 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000149/form10k123119.htm

 

You have also reviewed
the Company’s Certificate of Incorporation, as amended, and Bylaws.

 

(b)       You
are experienced in evaluating and investing in companies such as the Company. Further, you understand that the Securities are a
highly speculative nature and could result in the loss of your entire investment.

 

(c)       You
have been furnished by the Company with all information requested concerning the proposed operations, affairs and current financial
condition of the Company. Such information and access have been available to the extent you consider necessary and advisable in
making an intelligent investment decision. In addition, you have received and reviewed copies of the Disclosure Materials and have
had the opportunity to discuss the Company’s business, management and financial affairs with its President and Chief Executive
Officer. You understand

 

 

    	-4- 

    	 

    

that such discussions, as well as the
Disclosure Materials and any other written information issued by the Company, were intended to describe certain aspects of the
Company’s business and prospects which it believes to be material but were not necessarily a thorough or exhaustive description.

 

(d)       The
Securities to be acquired by you will be acquired, solely for your account, for investment purposes only and not with a view to
the resale or distribution thereof, are not being purchased for subdivision or fractionalization thereof, and you have no contract,
undertaking, agreement or arrangement with any person to sell or transfer such Securities to any person and do not intend to enter
into such contract or arrangement.

 

(e)       You
understand that the Securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
nor are they registered or qualified under the blue sky or securities laws of any state, by reason of their issuance in a transaction
exempt from the registration and prospectus delivery requirements of the Securities Act pursuant to Sections 3(b) or 4(2) of the
Securities Act and available exemptions from the registration requirements of any applicable state securities laws. You further
understand that the Securities must be held by you indefinitely and you must therefore bear the economic risk of such investment
indefinitely, unless a subsequent disposition thereof is registered under the Securities Act or is exempt from registration.

 

(f)       You
have the full right, power and authority to enter into and perform this Agreement, and this Agreement constitutes a legal, valid
and binding obligation upon you, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
of general application affecting enforcement of creditors’ rights, and except as limited by application of legal principles
affecting the availability of equitable remedies.

 

(g)       You
are able to bear the full economic risk of your investment in the Securities, including the risk of a total loss of your investment
in connection therewith. You are an accredited investor as that term is defined in Rule 501(a) of Regulation D promulgated by the
SEC. 

 

By initialing one of the
categories below, the undersigned represents and warrants that the undersigned comes within the category so initialed and has truthfully
set forth the factual basis or reason the undersigned comes within that category. ALL INFORMATION IN RESPONSE TO THIS PARAGRAPH
WILL BE KEPT STRICTLY CONFIDENTIAL. The undersigned agrees to furnish any additional information which the Company deems necessary
in order to verify the answers set forth below.

 

		Category I          _____	The undersigned is
an individual (not a partnership, corporation, etc.) whose individual net worth, or joint net worth with the undersigned's spouse,
presently exceeds U.S. $1,000,000.

Explanation.
In calculation of net worth the undersigned may not include equity in the undersigned’s primary residence, however the undersigned
can include equity in all other real estate. The calculation of net worth may also include the undersigned’s personal property,
cash, short term investments, stocks and securities. Equity in personal property and real estate should be based on the fair market
value of such property less debt secured by such property. Any debt that secures the undersigned’s primary residence can
be

 

 

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excluded from liabilities in calculating
the undersigned’s net worth, as long as the debt does not exceed the fair market value of the property (except that if the
amount of such debt outstanding at the time of the undersigned’s purchase of the Shares exceeds the amount outstanding 60
days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included
as a liability). If, however, the amount of the debt exceeds the fair market value of the primary residence and the mortgagee or
other lender has recourse to the undersigned personally for any deficiency, that excess liability should be deducted
from the undersigned's net worth.

		Category II        ____	The undersigned is
an individual (not a partnership, corporation, etc.) who had an individual income in excess of U.S. $200,000 in each of the two
most recent years, or joint income with the undersigned's spouse in excess of $300,000 in each of the two most recent years, and
has a reasonable expectation of reaching the same income level in the current year.

		Category III          X    	The
undersigned otherwise meets the definition of “Accredited Investors” as defined in Section 230.501(a) of the Act.

 

(h)       You
were not offered the Securities by means of general solicitations, publicly disseminated advertisements or sales literature.

 

4.2       Legends.
The instrument representing the Securities and the Warrant Shares shall be endorsed with the legend set forth below:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY
STATE SECURITIES ACT. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED
UNLESS (I) THEY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES ACT, OR
(II) THE COMPANY SHALL HAVE BEEN FURNISHED AN OPINION OF COUNSEL, SATISFACTORY TO COUNSEL FOR THE COMPANY, THAT REGISTRATION IS
NOT REQUIRED UNDER ANY OF SUCH ACTS.

 

In
addition, the instrument representing the Securities and the Warrant Shares shall be endorsed with any other legend required by
any state securities laws. The Company need not register a transfer of legended Securities and the Warrant Shares, and may also
instruct its transfer agent not to register the transfer of the Securities and the Warrant Shares, unless one of the conditions
specified in each of the foregoing legends is satisfied.

 

		5.	Indemnification
by Purchaser.

 

You
acknowledge and understand that the Company has agreed to offer and sell the Securities to you based upon the representations and
warranties made by you in this Agreement, and you hereby agree to indemnify the Company and to hold the Company and its officers,
directors and professional advisors harmless against all liability, costs or expenses (including attorneys’ fees) arising
by reason of or in connection with any misrepresentation or any breach of such

 

 

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representations and warranties by you,
or arising as a result of the sale or distribution of any Securities by you in violation of the Securities Act or other applicable
law.

 

		6.	Miscellaneous.

 

6.1       Successors
and Assigns. All the provisions of this Agreement by or for the benefit of the parties shall bind and inure to the benefit
of respective successors and permitted assigns of each party.

 

6.2       Notices.
All notices and other communications required
or permitted hereunder shall be in writing and shall be mailed by first class mail, postage prepaid, addressed (a) if to you,
at your address set forth on the first page hereof, or at such other address as you shall have furnished to the Company in writing,
or (b) if to the Company, at its address set forth on the first page hereof, or at such other address as the Company shall
have furnished to you in writing in accordance with this Section 6.2.

 

6.3       Waivers;
Amendments. Any provision of this Agreement may be amended or modified with (but only with) the written consent of the Company
and you. Any amendment, modification or waiver effected in compliance with this Section 6.3 shall be binding upon the Company and
you. No failure or delay of the Company or you in exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such
a right or power, preclude any other or further exercise thereon or the exercise of any other right or power. The rights and remedies
of the Company and you hereunder are cumulative and not exclusive of any rights or remedies which each would otherwise have.

 

6.4       Separability.
In case any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

6.5      Governing
Law. This Agreement shall be construed and enforced in accordance with the laws of the state of Oklahoma without regard to
principles of conflicts of law, except as otherwise required by mandatory provisions of law.

 

6.6       Board
Designees. After the exercise of the PIE-1
Warrant with respect to all 2,625,000 PIE-1 Warrant Shares, the Company shall take commercially reasonable efforts to cause
the appointment of one individual designated by Petroleum
Independent & Exploration LLC to serve on the Board of Directors of the Company. After the exercise of the PIE-3
Warrant with respect to all 8,136,518 PIE-3 Warrant Shares, the Company shall take commercially reasonable efforts to cause
the appointment of a second individual designated by Petroleum
Independent & Exploration LLC to serve on the Board of Directors of the Company. All such designees shall qualify as
Independent Directors. As used herein, “Independent Director” means any director who is or would be an “independent
director” with respect to the Company pursuant to Section 303A.02 of the New York Stock Exchange Listed Company Manual, Section
10A of the Exchange Act (or any successor provisions), and the categorical standards utilized by the

 

 

 

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Board of Directors when determining director
independence, in each case as amended from time to time.

 

6.7       Registration.
The Company agrees to commence and reasonably pursue registration of the Sales Shares and the Warrant Shares within 90 days of
the date of this Agreement.

 

6.8       Section
Headings. The section headings used herein are for convenience of reference only and shall not be construed in any way to affect
the interpretation of any provisions of this Agreement.

 

6.9       Entire
Agreement. This Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding and
agreement between the parties hereto with regard to the subjects hereof and thereof.

 

6.10     Finder’s
Fees. You represent and warrant to the Company that no finder or broker has been retained by you in connection with the transactions
contemplated by this Agreement and you hereby agree to indemnify and to hold the Company and its respective officers, directors
and controlling persons, harmless of and from any liability for any commission or compensation in the nature of a finder’s
fee to any broker or other person or firm (and the costs and expenses of defending against such liability or asserted liability)
for which you, or any of your employees or representatives, are responsible. The Company hereby agrees to indemnify and to hold
you, and your respective officers, directors and controlling persons, harmless of and from any liability for any commission or
compensation in the nature of a finder’s fee to any broker or other person or firm (and the costs and expenses of defending
against such liability or asserted liability) for which it, or any of its employees or representatives, are responsible.

 

6.11     Other
Documents. The parties to this Agreement shall in good faith execute such other and further instruments, assignments or documents
as may be necessary or advisable to carry out the transactions contemplated by this Agreement.

 

6.12     Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall
constitute one instrument, and which shall become effective when there exist copies signed by the Company and by you.

 

[Signatures
on Next Page]

 

 

 

 

 

 

 

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IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by their duly authorized representatives effective as
of the date set forth on the first page hereof.

 

 

	 	EMPIRE PETROLEUM CORPORATION
	 	 

                     

                     

	 	By: 	/s/ Thomas W. Pritchard
	 	 	Thomas W. Pritchard,
CEO

 

	 	
	 	By: 	/s/ Michael R. Morrisett
	 	 	Michael R. Morrisett, President

 

Accepted
and agreed to this 6th day of August, 2020.

 

 

	 	Petroleum Independent & Exploration LLC
	 	 

                     

                     

	 	By: 	/s/ Phil E. Mulacek
	 	Name:	Phil E. Mulacek

	 	Title:	Manager

 

 

 

 

 

 

 

    	-9- 

    	 

    

 

Schedule 1

Disclosure Schedule

 

 

		1.	A warrant covering 500,000 shares of Common Stock at an exercise price of $0.15 per share issued to Tony Kamin

		2.	A warrant covering 2,500,000 shares of Common Stock at an exercise price of $0.25 per share issued to Tony Kamin

		3.	A warrant covering 500,000 shares of Common Stock at an exercise price of $0.25 per share issued to Mike Morrisett

		4.	A warrant covering 500,000 shares of Common Stock at an exercise price of $0.25 per share issued to Tommy Pritchard

		5.	A warrant covering 5,000,000 shares of Common Stock at an exercise price of $0.15 per share issued to Puckett Land Company

		6.	A warrant covering 300,000 shares of Common Stock at an exercise price of $0.17 per share issued to Kenny Savoie

		7.	An option covering 2,500,000 shares of Common Stock at an exercise price $0.33 per share issued to Mike Morrisett

		8.	An option covering 2,500,000 shares of Common Stock at an exercise price $0.33 per share issued to Tommy Pritchard

		9.	Options covering 4,167 shares of Common Stock exercisable at an average exercise price of $3.12 issued by former management

		10.	Options covering up to 5,000,000 shares of Common Stock to be issued to directors, officers, and employees at a yet to be determined
exercise price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-10-EXHIBIT 10.2

 

EXHIBIT A

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES ACT. THE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS (I) THEY HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES ACT, OR (II) THE COMPANY SHALL HAVE BEEN FURNISHED
AN OPINION OF COUNSEL, SATISFACTORY TO COUNSEL FOR THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER ANY OF SUCH ACTS.

No. PIE-1 August 6, 2020

EMPIRE PETROLEUM CORPORATION

COMMON SHARE WARRANT CERTIFICATE

Warrant to Purchase up to 2,625,000
Common Shares

Expiring August 6, 2024

THIS CERTIFIES THAT Petroleum Independent
& Exploration LLC or, pursuant to Section 5.1(a), its Affiliates, nominees or assignees (the “Warrant Holder”),
in consideration for entering into that certain Securities Purchase Agreement dated as of August 6, 2020 (the “Purchase
Agreement”), by and between the Warrant Holder and Empire Petroleum Corporation, a Delaware corporation (the “Company”),
at any time on any Business Day on or prior to 5:00 p.m., Central Time, on the Expiration Date (as defined in Section 1), is entitled
to subscribe for and purchase from the Company, up to 2,625,000 Common Shares (as defined in Section 1) at a price per Common Share
equal to the Exercise Price (as defined in Section 1); provided, however, that the number of Common Shares issuable upon any exercise
of this Warrant (as defined in Section 1) shall be adjusted and readjusted from time to time in accordance with Section 4 below.

1. Certain Definitions.

The following terms, as used herein,
have the following meanings:

“Accredited
Investor” means an accredited investor as that term is defined in Rule 501(a) of Regulation D promulgated by the Commission.

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with such Person.

“Business
Day” means any day except a Saturday, Sunday, or other day on which commercial banks in Houston, Texas, are authorized by
law to close.

“Capital
Reorganization” has the meaning set forth in Section 4.2.

“Commission”
means the Securities and Exchange Commission.

“Common
Share Reorganization” has the meaning set forth in Section 4.1.

“Common
Shares” means the Company’s currently authorized class of Common Stock, par value $0.001.

“Company”
has the meaning set forth in the preamble to this Warrant Certificate.

“Empire
Texas LLC” means Empire Texas LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor Federal statute, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect at the time. Reference to a particular section of the Exchange
Act shall include a reference to the comparable section, if any, of any such successor Federal statute.

  

    	 

    	 

    

“Exercise
Price” means $0.20, subject to adjustment from time to time pursuant to Section 4.

“Joint
Development Agreement” means the Joint Development Agreement dated on or about the date hereof between the Company and the
other parties thereto.

“Notice
of Exercise” has the meaning set forth in Section 2(a).

“Person”
means an individual, a corporation, a partnership, a limited liability company, an association, a trust or any other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof.

“PIE Operating
LLC” means PIE Operating LLC, a Nevada limited liability company.

“Purchase
Agreement” has the meaning set forth in the preamble to this Warrant Certificate.

“RRC Monthly
Production Report” has the meaning set forth in the Joint Development Agreement.

“Securities
Act” means the Securities Act of 1933, as amended, or any successor Federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time. Reference to a particular section of the Securities Act
shall include a reference to the comparable section, if any, of any such successor Federal statute.

“Triggering
Events” means (a) the 3 month trailing average monthly aggregate production from the oil and gas properties of Empire Texas
LLC operated by PIE Operating LLC shall have increased by 20% from the 3 month trailing average monthly production of the same
properties as of July 2020, in each case as set forth in the relevant RRC Monthly Production Reports, (b) aggregate expenditures
on well workovers by PIE Operating LLC under the Joint Development Agreement shall have exceeded US$1 million, and (c) the Company
shall have effected a Capital Reorganization mutually agreeable to the Company and the Warrant Holder.

“Warrant”
means the rights granted to the Warrant Holder pursuant to this Warrant Certificate.

“Warrant
Certificate” means this Common Share Warrant Certificate.

“Warrant
Holder” has the meaning set forth in the preamble to this Warrant Certificate.

“Warrant
Shares” means 2,625,000 Common Shares issued or issuable upon exercise of this Warrant, subject to adjustment from time to
time pursuant to Section 4.

2. Vesting and Exercise.

(a)       At
any time, the Warrant Holder may exercise this Warrant by delivering to the Company a duly executed notice (a “Notice of
Exercise”) in the form of Annex A specifying the number of Warrant Shares as to which this Warrant is being exercised along
with payment, made 50% to the Company and 50% to Empire Texas LLC, of the an aggregate amount equal to the product of: (a) the
Exercise Price times (b) the number of Warrant Shares as to which the Warrant is being exercised. Notwithstanding anything contained
herein to the contrary, within 45 Business Days after the occurrence of the last of the Triggering Events, the Warrant Holder shall
exercise this Warrant as to all of the remaining Warrant Shares by delivering to the Company a duly executed Notice of Exercise
along with the payment of the aggregate Exercise Price made 50% to the Company and 50% to Empire Texas LLC therefor.

The Company
shall cause Empire Texas LLC to (a) retain for its own account and not dividend or distribute to the Company or any other person
all monies paid to Empire Texas LLC by the Warrant Holder on any exercise of this Warrant, and (b) apply such monies solely to
meet Empire Texas LLC’s financial obligations for operation and maintenance of all wells in which it is a working interest
holder and which are operated by PIE Operating LLC.

(b)       Notwithstanding
anything to the contrary set forth in this Warrant Certificate, at no time may all or a portion of the Warrant be exercised if
the number of shares of Common Shares to be issued pursuant to such exercise would cause the Warrant Holder’s beneficial
ownership to exceed, when aggregated with all other shares of Common Shares beneficially owned (as determined in accordance with
Section 13(d) of the Exchange Act and the rules thereunder) by the Warrant Holder at such time, a number of shares of Common Shares
that totals more than 49.99% of all of the Common Shares issued and outstanding at such time. For purposes of this Section 2(b),
in determining the number of outstanding Common Shares, the Warrant Holder may rely on the number of outstanding Common Shares
as reflected in (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with
the Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company
setting forth the number of outstanding Common Shares. For any reason at any time, upon the written request of the warrant Holder,

    	 

    	 

    

the Company shall within one
Business Day confirm in writing to the Warrant Holder the number of shares of outstanding Common Shares.

(c)       As
soon as practicable, but not later than five (5) Business Days after the Company shall have received such Notice of Exercise and
payment of the aggregate Exercise Price made 50% to the Company and 50% to Empire Texas LLC, the Company shall execute and deliver
or cause to be executed and delivered, in accordance with such Notice of Exercise, a certificate or certificates representing the
number of Common Shares specified in such Notice of Exercise issued in the name of the Warrant Holder. This Warrant shall be deemed
to have been exercised and such share certificate or certificates shall be deemed to have been issued, and such Warrant Holder
shall be deemed for all purposes to have become a holder of record of Common Shares, as of the date that such Notice of Exercise
and payment of the aggregate Exercise Price shall have been received by the Company and Empire Texas LLC in the manner set forth
in Sections 2(a) and 2(c) above.

(d)       The
Warrant Holder shall surrender this Warrant Certificate to the Company when it delivers the Notice of Exercise, and in the event
of a partial exercise of the Warrant, the Company shall execute and deliver to the Warrant Holder, at the time the Company delivers
the share certificate or certificates issued pursuant to such Notice of Exercise, a new Warrant Certificate for the unexercised
portion of this Warrant Certificate, but in all other respects identical to this Warrant Certificate.

(e)       The
Company shall pay all expenses, taxes and other charges payable in connection with the preparation, issuance and delivery of certificates
for the Warrant Shares and a new Warrant Certificate, if any, except that if the certificates for the Warrant Shares or the new
Warrant Certificate, if any, are to be registered in a name or names other than the name of the Warrant Holder, funds sufficient
to pay all transfer taxes payable as a result of such transfer shall be paid by the Warrant Holder at the time of its delivery
of the Notice of Exercise or promptly upon receipt of a written request by the Company for payment.

(f)       No
fractional Common Shares will be issued in connection with any exercise of the Warrant, and any fractional Common Share (resulting
from any adjustment pursuant to Section 4 or otherwise) in the aggregate number of Common Shares being purchased upon any exercise
of the Warrant shall be eliminated.

3. Validity of Warrant and Issuance of Common Shares.

The Company represents and warrants
that this Warrant has been duly authorized and is validly issued. The Company further represents and warrants that on the date
hereof it has duly authorized and reserved, and the Company hereby agrees that it will at all times until the Expiration Date have
duly authorized and reserved, such number of Common Shares as will be sufficient to permit the exercise in full of the Warrant,
and that all such Common Shares are and will be duly authorized and, when issued upon exercise of the Warrant, will be validly
issued, fully paid and nonassessable, and free and clear of all security interests, claims, liens, equities and other encumbrances.

4. Adjustment Provisions.

The number of Warrant Shares that
may be purchased upon any exercise of the Warrant, shall be subject to change or adjustment as follows:

4.1. Common
Share Reorganization. If the Company shall subdivide its outstanding Common Shares into a greater number of shares, by way
of share split, share dividend or otherwise, or consolidate its outstanding Common Shares into a smaller number of shares (any
such event being herein called a “Common Share Reorganization”), then (a) the definition of Exercise Price shall be
adjusted, effective immediately after the effective date of such Common Share Reorganization, so that each amount contained in
the definition of the Exercise Price is equal to such amount multiplied by a fraction, the numerator of which shall be the number
of Common Shares outstanding on such effective date before giving effect to such Common Share Reorganization and the denominator
of which shall be the number of Common Shares outstanding after giving effect to such Common Shares Reorganization, and (b) the
number of Common Shares subject to purchase upon exercise of this Warrant shall be adjusted, effective at such time, to a number
determined by multiplying the number of Common Shares subject to purchase immediately before such Common Share Reorganization by
a fraction, the numerator of which shall be the number of shares outstanding after giving effect to such Common Share Reorganization
and the denominator of which shall be the number of Common Shares outstanding immediately before giving effect to such Common Share
Reorganization.

4.2. Capital
Reorganization. If there shall be any consolidation or merger to which the Company is a party, other than a consolidation or
a merger of which the Company is the continuing corporation and that does not result in any reclassification of, or change (other
than a Common Share Reorganization) in, outstanding Common Shares, or any sale or conveyance of the property of the Company as
an entirety or substantially as an entirety, or any recapitalization of the Company (any such event being called a “Capital
Reorganization”), then, effective upon the effective date of such Capital Reorganization, the Warrant Holder shall no longer
have the right to purchase Common Shares, but shall have instead the right to purchase, upon exercise of this Warrant, the kind
and

 

 

    	 

    	 

    

amount of Common Shares and other
securities and property (including cash) which the Warrant Holder would have owned or have been entitled to receive pursuant to
such Capital Reorganization, if the Warrant had been exercised immediately prior to the effective date of such Capital Reorganization.

4.3. Adjustment Rules.

(a)       Any
adjustments pursuant to this Section 4 shall be made successively whenever any event referred to herein shall occur, except that,
notwithstanding any other provision of this Section 4, no adjustment shall be made to the number of Warrant Shares to be delivered
to the Warrant Holder (or to the Exercise Price) if such adjustment represents less than one-percent (1%) of the number of Warrant
Shares previously required to be so delivered, but any lesser adjustment shall be carried forward and shall be made at the time
and together with the next subsequent adjustment which together with any adjustments so carried forward shall amount to one-percent
(1%) or more of the number of Warrant Shares to be so delivered.

(b)       If
the Company shall take a record of the holders of its Common Shares for any purpose referred to in this Section 4, then (i) such
record date shall be deemed to be the date of the issuance, sale, distribution or grant in question and (ii) if the Company shall
legally abandon such action prior to effecting such action, no adjustment shall be made pursuant to this Section 4 in respect of
such action.

(c)       As
a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 4, the Company shall
take any action which may be necessary, including obtaining regulatory approvals or exemptions, in order that the Company may thereafter
validly and legally issue as fully paid and nonassessable all Common Shares which the Warrant Holder is entitled to receive upon
exercise of this Warrant.

5. Transfer of Warrant.

5.1. No Transfer
Without the Consent of the Company. This Warrant is personal to the Warrant Holder and this Warrant Certificate and the rights
of the Warrant Holder hereunder may not be sold, assigned, transferred or conveyed, in whole or in part, except (a) to an Affiliate,
nominee or assignee of the Warrant Holder that is an Accredited Investor or (b) with the prior written consent of the Company,
which shall not be unreasonably withheld.

5.2. Permitted
Transfers. Upon transfer of the Warrant permitted under Section 5.1 above, the Warrant Holder must deliver to the Company a
duly executed Warrant Assignment in the form of Annex B attached hereto with funds sufficient to pay any transfer tax imposed in
connection with such assignment. Upon surrender of this Warrant to the Company, the Company shall execute and deliver a new Warrant
in the form of this Warrant, with appropriate changes to reflect such assignment, in the name or names of the assignee or assignees
specified in the fully executed Warrant Assignment or other instrument of assignment and, if the Warrant Holder’s entire
interest is not being transferred or assigned, in the name of the Warrant Holder, and this Warrant shall promptly be canceled.
In connection with any transfer or exchange of this Warrant permitted hereunder, the transferring Warrant Holder shall pay all
costs and expenses relating thereto, including, without limitation, all transfer taxes, if any, and all reasonable expenses incurred
by the Company (including legal fees and expenses). Any new Warrant issued shall be dated the date hereof. The terms “Warrant”
and “Warrant Holder” as used herein include all Warrants into which this Warrant (or any successor Warrant) may be
exchanged or issued in connection with the permitted transfer or assignment of this Warrant, any successor Warrant and the holders
of those Warrants, respectively.

6. Lost Mutilated or Missing Warrant Certificates.

Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant Certificate and, in the case of loss, theft or
destruction, upon receipt of indemnification satisfactory to the Company, or, in the case of mutilation, upon surrender and cancellation
of the mutilated Warrant Certificate, the Company shall execute and deliver a new Warrant Certificate of like tenor and representing
the right to purchase the same aggregate number of Warrant Shares. The recipient of any such Warrant Certificate shall reimburse
the Company for all reasonable expenses incidental to the replacement of such lost, mutilated or missing Warrant Certificate.

7. Miscellaneous.

7.1. Successors
and Assigns. All the provisions of this Warrant Certificate by or for the benefit of the Company or the Warrant Holder shall
bind and inure to the benefit of their respective successors and permitted assigns.

7.2. Notices.
All notices, requests, demands and other communications hereunder shall be given in accordance with the terms of the Purchase Agreement.

 

 

 

    	 

    	 

    

7.3. Waivers;
Amendments. Any provision of this Warrant Certificate may be amended or modified with (but only with) the written consent of
the Company and the Warrant Holder. Any amendment, modification or waiver effected in compliance with this Section 7.3 shall be
binding upon the Company and the Warrant Holder. No failure or delay of the Company or the Warrant Holder in exercising any power
or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereon or the
exercise of any other right or power. The rights and remedies of the Company and the Warrant Holder hereunder are cumulative and
not exclusive of any rights or remedies which each would otherwise have.

7.4. No Rights
as a Shareholder. The Warrant shall not entitle the Warrant Holder, prior to the exercise of the Warrant, to any rights as
a holder of shares of the Company.

7.5. Separability.
In case any one or more of the provisions contained in this Warrant shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

7.6. Governing
Law. This Warrant shall be construed and enforced in accordance with the laws of the State of Delaware without regard to principles
of conflicts of law, except as otherwise required by mandatory provisions of law.

7.7. Section
Headings. The section headings used herein are for convenience of reference only and shall not be construed in any way to affect
the interpretation of any provisions of the Warrant.

[Signature on Next Page]

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant Certificate to be duly executed and attested by an officer of the Company, all as of the day
and year first above written.

 

	 	EMPIRE PETROLEUM CORPORATION
	 	 

                     

                     

	 	By: 	/s/ Michael R. Morrisett
	 	Name:   	Michael R. Morrisett
	 	Title:	President

 

 

	 	
	 	By: 	/s/ Thomas W. Pritchard
	 	Name:   	Thomas
                                         W. Pritchard

	 	Title:	CEO

 

 

 

 

    	 

    	 

    

 

ANNEX A

Form of Notice of Exercise

Date: __________

To: Empire Petroleum Corporation

Reference is made to the Common Share
Purchase Warrant No. PIE-1 dated August 6, 2020, issued to the undersigned by Empire Petroleum Corporation. Terms defined therein
are used herein as therein defined.

The undersigned, pursuant to the
provisions set forth in the Warrant Certificate, hereby irrevocably elects and agrees to purchase the number of Common Shares at
the Exercise Price(s) set forth below, and makes payment herewith by check payable to the order of (1) the Company in an amount
equal to $________ and (2) Empire Texas LLC in an amount equal to $ __________.

 

	Number of Warrant Shares	 	Applicable
Exercise Price
	 	 	 
	 	 	 
	 	 	 

 

If said number of shares is less
than all of the shares purchasable hereunder, the undersigned hereby requests that a new Warrant Certificate representing the remaining
balance of the Warrant Shares be issued to me.

The undersigned hereby represents
that it is exercising the Warrant for its own account for investment purposes and not with the view to any sale or distribution
and that the Warrant Holder will not offer, sell or otherwise dispose of the Warrant or any underlying Warrant Shares in violation
of applicable securities laws.

 

Petroleum Independent &
Exploration

LLC

By:                                                          

 

Name:                                                       

 

Title:                                                       

 

 

 

 

 

 

 

    	 

    	 

    

 

ANNEX B

Form of Warrant Assignment

Date:__________

Reference is made to the Common Share
Purchase Warrant No. PIE-1 dated August 6, 2020, issued to the undersigned by Empire Petroleum Corporation. Terms defined therein
are used herein as therein defined.

FOR VALUE RECEIVED __________________
(the “Assignor”) hereby sells, assigns and transfers all of the rights of the Assignor as set forth in the Warrant
Certificate with respect to the number of Warrant Shares covered thereby as set forth below, to the Assignee(s) as set forth below:

 

	Name of Assignee	 	Address	 	Number of Applicable

                                                                       Warrant Shares
	 	 Exercise
                                         Price of

Warrant Shares

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

All notices to be given by the Company
to the Assignor as Warrant Holder shall be sent to the Assignee(s) at the above listed address(es), and, if the number of Warrant
Shares being hereby assigned is less than all of the Warrant Shares covered by the Warrant Certificate held by the Assignor, then
also to the Assignor.

In accordance with Section 5 of the
Warrant Certificate, the Assignor requests that the Company execute and deliver a new Warrant Certificate or Warrant Certificates
in the name or names of the Assignee or Assignees, as is appropriate, or, if the number of Warrant Shares being hereby assigned
is less than all of the Warrant Shares covered by the Warrant held by the Assignor, new Warrant Certificates in the name or names
of the Assignee or the Assignees, as is appropriate, and in the name of the Assignor.

The undersigned represents that the
Assignee has represented to the Assignor that the Assignee or each Assignee, as is appropriate, is acquiring the Warrant for its
own account or the account of an Affiliate for investment purposes and not with the view to sell or distribute, and that the Assignee
or each Assignee, as is appropriate, will not offer, sell or otherwise dispose of the Warrant or the Warrant Shares except under
circumstances as will not result in a violation of applicable securities laws.

 

Petroleum Independent &
Exploration

LLC

By:                                                          

 

Name:                                                       

 

Title:

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