Document:

Promissory Note

 
EXHIBIT 10.39

 

	 $50,000.00
	 	 December 12, 2002

 
PROMISSORY NOTE 
 
FOR VALUE
RECEIVED, the undersigned, Aviva Petroleum Inc., a Texas corporation, (herein called “Borrower”), hereby promises to pay to the order of Ronald Suttill, a resident of Dallas, Texas, (herein called “Lender”), the principal sum of
fifty thousand dollars ($50,000), together with interest as provided below. All payments on this Note shall be due and payable in lawful currency of the United States of America at the offices of Lender in Dallas County, Texas, or at such other
place within Dallas County as from time to time may be designated by the holder of this Note. 
 
The unpaid principal balance outstanding hereunder shall bear interest at a rate per annum which shall be the lesser of (a) 10% or (b) the maximum rate of interest from time to time permitted under
state or federal laws applicable to the indebtedness evidenced hereby. The lesser of (a) and (b) above shall be referenced to herein as the “Maximum Lawful Rate.” 
 
Accrued and unpaid interest shall be due and payable on March 31, 2003. The unpaid principal and remaining accrued and unpaid
interest shall be due and payable on May 31, 2003. Privilege is reserved to the Borrower to repay this Note in whole or in part, at any time, without premium or penalty. Any prepayment shall be applied to the payment of principal. 
 
If this Note is placed in the hands of an attorney for collection, or if it is
collected through bankruptcy or other judicial proceedings, the Borrower further agrees to pay all expenses of collection, including reasonable attorney’s fees. 
 
Borrower and all sureties, endorsers and guarantors of this Note (i) waive grace, demand, presentment for payment, notice of
nonpayment, protest, notice of protest, notice of intent to accelerate and all other notice, bringing of suit and diligence in collecting this Note or enforcing any of the security herefor, (ii) agree to any substitution, exchange or release of any
such security or the release of any party primarily or secondarily liable hereon, and (iii) consent to any one or more extensions or postponements of time of payment of this Note on any terms or any other indulgences with respect hereto, without
notice thereof to any of them. 
 
No delay or omission on the part
of Lender in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note. A waiver on any one occasion shall not be construed as a bar to or waiver of any right or remedy on any future occasion.

 
In no event shall the aggregate of the interest on this Note,
plus any other amounts paid in connection with this Note which would under applicable law be deemed “interest,” ever 

exceed the maximum amount of interest which under applicable law could be lawfully charged on this Note.
Lender and Borrower specifically intend and agree to limit contractually the interest payable on this Note to not more than an amount determined at the maximum rate permitted by applicable law. If at any time the rate of interest charged under this
Note exceeds the maximum rate permitted by applicable law, the rate of interest to accrue on this Note shall be limited to the maximum rate permitted by applicable law. None of the terms of this Note or any other instruments pertaining to or
securing this Note shall ever be construed to create a contract to pay interest at a rate in excess of the maximum rate permitted by applicable law, and neither Borrower nor any other party liable herefor shall ever be liable for interest in excess
of that determined at the maximum rate permitted by applicable law, and the provisions of this paragraph shall control over all provisions of this Note. If any amount of interest taken or received by Lender shall be in excess of the maximum amount
of interest which, under applicable law, could lawfully have been collected on this Note, then the excess shall be deemed to have been the result of a mathematical error by the parties hereto and shall be refunded promptly to Borrower. All amounts
paid or agreed to be paid in connection with the indebtedness evidenced by this Note which would under applicable law be deemed “interest” shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full term of this Note. 
 
 

	 Aviva Petroleum Inc.

	
	 By:
	 	 /s/    James L. Busby       

	 	 	 James L. Busby
 Chief Financial OfficerStock purchase warrant 12/12/2002

 
EXHIBIT 10.40

 
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE STATE LAW, AND NO INTEREST IN SAID SECURITIES MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS (i) THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, (ii) THE COMPANY RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF SAID SECURITIES SATISFACTORY TO THE COMPANY STATING THAT
SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (iii) THE COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION. 
 
 

 
STOCK PURCHASE WARRANT 
 
to Purchase up to 
 
1,000,000 Shares of Common Stock 
 
of 
 
AVIVA PETROLEUM INC.

 
Void after December 12, 2004 
 

 
This is to
certify that, for value received and subject to the terms and conditions set forth below, the Warrantholder (hereinafter defined) is entitled to purchase, and the Company promises and agrees to sell and issue to the Warrantholder, at any time on or
after the date of this Warrant and on or before December 12, 2004 up to 1,000,000 Shares (hereinafter defined) at the Exercise Price (hereinafter defined). 
 
This Stock Purchase Warrant is issued subject to the following terms and conditions. 
 
1.    Definitions of Certain
Terms.    Except as may be otherwise clearly required by the context, the following terms have the following meanings: 
 
(a) “Common Stock” means the common stock, without par value, of the Company. 
 
(b) “Company” means Aviva Petroleum Inc., a Texas
corporation, and any successor thereto. 
 
(c)
“Exercise Price” means the price at which the Warrantholder may purchase one Share (or Securities obtainable in lieu of one Share) upon exercise of Warrants as determined from time to time pursuant to the provisions hereof. The initial
Exercise Price is $0.07 per Share. 
 
(d)
“Expiration Time” means 5 p.m. central standard time on December 12, 2004. 
 
(e) “Securities” means the securities obtained or obtainable upon exercise of the Warrant or securities obtained or obtainable upon exercise, exchange, or conversion of such securities.

 
(f) “Share” shall mean one share of
Common Stock for which the Warrant is initially exercisable. 
 
(g) “Warrant Certificate” means a certificate evidencing the Warrant. 
 
(h) “Warrantholder” means a record holder of the Warrant or Securities. The initial Warrantholder is Ronald Suttill. 
 
(i) “Warrant” means the warrant evidenced by this Warrant Certificate or any certificate obtained
upon transfer or partial exercise of the Warrant evidenced by any such Warrant Certificate. 
 
2.    Exercise of Warrant.    All or any part of the Warrant may be exercised commencing on the date of this Warrant and ending at the Expiration Time by
surrendering this Warrant Certificate, together with appropriate instructions, duly executed by the Warrantholder or by his duly authorized attorney, at the office of the Company, 8235 Douglas Avenue, Suite 400, Dallas, Texas 75225, or at such other
office or agency as the Company may designate. Upon receipt of notice of exercise, the Company shall immediately prepare, or instruct its transfer agent to prepare, certificates for the Securities to be received by the Warrantholder upon

 

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completion of the Warrant exercise. When such certificates are prepared, the Company shall notify the
Warrantholder and deliver such certificates to the Warrantholder or in accordance with the Warrantholder’s instructions immediately upon payment in full by the Warrantholder, in lawful money of the United States, of the Exercise Price payable
with respect to the Securities being purchased. 
 
If fewer than all the Securities purchasable under the Warrant are purchased, the Company will, upon such partial exercise, execute and deliver to the Warrantholder a new Warrant Certificate (dated the date hereof), in form and tenor
similar to this Warrant Certificate, evidencing that portion of the Warrant not exercised. The Securities to be obtained on exercise of the Warrant will be deemed to have been issued, and any person exercising the Warrants will be deemed to have
become a holder of record of those Securities, as of the date of the payment of the Exercise Price. 
 
3.    Adjustments in Certain Events.    The number, class, and price of Securities for
which this Warrant Certificate may be exercised are subject to adjustment from time to time upon the happening of certain events as follows: 
 
(a)  If the outstanding shares of the Company’s Common Stock are divided into a greater number of shares or a dividend in
stock is paid on the Common Stock, the number of shares of Common Stock for which the Warrant is then exercisable will be proportionately increased and the Exercise Price will be proportionately reduced; and, conversely, if the outstanding shares of
Common Stock are combined into a smaller number of shares of Common Stock, the number of shares of Common Stock for which the Warrant is then exercisable will be proportionately reduced and the Exercise Price will be proportionately increased. The
increases and reductions provided for in this subsection (a) will be made with the intent and, as nearly as practicable, the effect that neither the percentage of the total equity of the Company obtainable on exercise of the Warrants nor the price
payable for such percentage upon such exercise will be affected by any event described in this subsection (a). 
 
(b)  In case of (i) any reclassification or change of outstanding shares of Common Stock or other capital stock issuable upon
exercise of this Warrant (other than a change in par value, or from par value to no par value, or from no par value to par value or as a result of a subdivision or combination), (ii) any consolidation or merger of the Company with or into another
corporation (other than a merger in which the Company is the surviving corporation and which does not result in any reclassification or change of the then outstanding shares of Common Stock or other capital stock issuable upon exercise of this
Warrant (other than a change in par value, or from par value to no par value, or from no par value to par value or as a result of subdivision or combination)) or (iii) any sale or conveyance to another corporation of the property of the Company as
an entirety or substantially as an entirety, then, as a condition of such reclassification, change, consolidation, merger, sale or conveyance, the Company, or such other successor or purchasing corporation, as the case may be, shall make lawful and
adequate provision whereby the Warrantholder shall have the right thereafter to receive on exercise of such Warrant the kind and amount of securities and property receivable upon such reclassification, change, consolidation, merger, sale or
conveyance by a holder of the number of securities issuable upon exercise of such Warrant immediately prior to such reclassification, change, consolidation, merger, sale or conveyance. The provisions of this subsection (b) shall 
 

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similarly apply to successive reclassifications and changes of shares of Common Stock and to successive
consolidations, mergers, sales and conveyances. 
 
(c)  Irrespective of any adjustments or changes in the Exercise Price or the Securities purchasable upon exercise of this Warrant pursuant to this Section 3, the Warrant Certificate, whether or not thereafter reissued, may
continue to express the Exercise Price per share and the number of shares of Common Stock purchasable thereunder as the Exercise Price per share and the number of shares of Common Stock purchasable thereunder were expressed in the Warrant
Certificate when the same was originally issued. 
 
(d)  No fractional shares of Common Stock or other Securities will be issued in connection with the exercise of the Warrant, but the Company will pay, in lieu of fractional shares, a cash payment therefor on the basis of
the fair market value of the Shares or other Securities as determined in good faith by the Board of Directors of the Company. 
 
4.    Reservation of Shares.    The Company agrees that the number of shares of Common
Stock or other Securities sufficient to provide for the exercise of the Warrant upon the basis set forth above will at all times during the term of the Warrant be reserved for exercise. 
 
5.    Validity of Securities.    All Securities delivered upon
the exercise of the Warrant will be duly and validly issued in accordance with their terms and, in the case of Common Stock, will be fully paid and nonassessable. The Company will pay all documentary and transfer taxes, if any, in respect of the
original issuance thereof upon exercise of the Warrant. 
 
6.    No Rights as a Shareholder.    The Warrantholder shall not, by virtue hereof, be entitled to any rights of a shareholder in the Company, either at law or in equity, and the rights
of the Warrantholder as such are limited to those expressed in the Warrant Certificate and are not enforceable against the Company except to the extent set forth herein. Furthermore, the Warrantholder, by acceptance hereof, consents to and agrees to
be bound by and to comply with all the provisions of this Warrant. In addition, the Warrantholder, by accepting this Warrant, agrees that the Company and the transfer agent may deem and treat the person in whose name this Warrant is registered as
the absolute, true and lawful owner for all purposes whatsoever, and neither the Company nor its transfer agent, if any, shall be affected by any notice to the contrary. 
 
7.    Notice.    Any notices required or permitted to be given
hereunder will be in writing and may be served personally or by mail; and if served will be addressed as follows: 
 

	 If to the Company:
	  	 Aviva Petroleum Inc.

	 	  	 8235 Douglas Avenue

	 	  	 Suite 400

	 	  	 Dallas, Texas 75225

	 	  	 Attention: Chief Financial Officer

	
	 If to the Warrantholder:
	  	 Ronald Suttill

	 	  	 4146 La Place

	 	  	 Dallas, Texas 75220

 

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Any notice so
given by mail will be deemed effectively given 48 hours after mailing when deposited in the United States mail, registered or certified mail, return receipt requested, postage prepaid and addressed as specified above. Any party may by written notice
to the other specify a different address for notice purposes. 
 
8.    Securities Law Compliance.    By accepting this Warrant, the Warrantholder represents that the Warrantholder is acquiring the Warrant, and will acquire any shares of Common Stock
or other Securities that may be acquired upon exercise of this Warrant, solely for the Warrantholder’s own account and not with a view to or for sale in connection with any distribution of the Warrant, the Common Stock, or other Securities of
the Company. Unless the issuance of the Common Stock or other Securities issuable upon exercise of this Warrant shall have been registered under the Securities Act of 1933 and applicable state securities laws, as a condition of its delivery of
certificates for such Securities, the Company may require the Warrantholder to deliver to the Company, in writing, representations regarding the Warrantholder’s sophistication, investment intent, acquisition for his own account and such other
matters as are reasonable and customary for purchasers of securities in an unregistered private offering. The Company may place conspicuously upon each Warrant Certificate and upon each certificate representing the Securities a legend substantially
in the following form, the terms of which are agreed to by the Warrantholder: 
 
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE STATE LAW, AND NO INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED
UNLESS (i) THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, (ii) THE COMPANY RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF SAID
SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (iii) THE COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION. 
 
9.    Applicable
Law.    This Warrant Certificate will be governed by and construed in accordance with the laws of the State of Texas, without reference to conflict of laws principles thereunder. 
 
 

	 	 	 	 	 AVIVA PETROLEUM INC.,
 a Texas corporation

	
	  
 Dated:  December 12,
2002
	 	 	 	  
 By:
	 	  
 /s/  James L.
Busby    

	 	 	 	 	 	 	 	 	 James L. Busby
 Chief Financial Officer

 

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PURCHASE FORM

 

	
	 Dated:
	 	  

 
The
undersigned irrevocably elects to exercise the within Warrant to the extent of purchasing              shares of Common Stock and hereby makes payment of
$             in payment of the actual exercise price thereof. 
 
INSTRUCTIONS FOR REGISTRATION OF STOCK 
 
 

	
	 Name
 

	 	  

 (Please type or print in block letters)

	
	 Address
	 	  

	
	 	 	

	
	 Signature
	 	  

 

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IT SHALL BE A CONDITION TO THE
VALIDITY OF THIS ASSIGNMENT THAT THE ASSIGNEE DELIVER TO AVIVA PETROLEUM INC. HIS OR ITS WRITTEN AGREEMENT TO ACCEPT AND BE BOUND BY ALL OF THE TERMS AND CONDITIONS OF THIS WARRANT. 
 
ASSIGNMENT FORM 
 
FOR VALUE RECEIVED,
                                        
         hereby sells, assigns and transfers unto 
 
 

	
	 Name
 

	 	  

 (Please type or print in block letters)

	
	 Address
	 	  

	
	 	 	

 
the right to purchase
Common Stock represented by this Warrant to the extent of                      shares as to which such right is exercisable, and does hereby
irrevocably constitute and appoint
                                        
attorney to transfer the same on the books of the Company with full power of substitution in the premises. 
 

	
	 Date
	 	  

	
	 Signature
	 	  

 

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