Document:

SEMG 10-K/A 2012 Exh 10.31

EXHIBIT 10.31

SemGroup Corporation
Equity Incentive Plan

RESTRICTED STOCK AWARD AGREEMENT

THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is made effective as of __________________, 20___ (the “Date of Grant”) by and between SemGroup Corporation, a Delaware corporation (with any successor, the “Company”), and _____________ (the “Participant”).
R E C I T A L S:
WHEREAS, the Company has adopted the SemGroup Corporation Equity Incentive Plan (the “Plan”), which Plan, as it may be amended from time to time, is incorporated herein by reference and made a part of this Agreement.  Capitalized terms not otherwise defined herein shall have the same meanings as ascribed to them in the Plan; and
WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the Shares of restricted stock provided for herein to the Participant pursuant to the Plan and the terms set forth herein.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:
1.Restricted Stock Award.  Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Participant _____ Shares (the “Restricted Shares”), which shall vest and become nonforfeitable in accordance with Section 3 hereof.
2.Certificates.  A certificate or certificates representing the Restricted Shares shall be issued by the Company and shall be registered in the name of the Participant on the stock transfer books of the Company promptly following execution of this Agreement by the Participant, but shall remain in the physical custody of the Company or its designee at all times prior to the vesting of such Restricted Shares pursuant to Section 3 hereof.  As a condition to the receipt of this Agreement, the Participant shall deliver to the Company a Stock Power in the form attached hereto as Exhibit A, duly endorsed in blank, relating to the Restricted Shares.  Each certificate representing the Restricted Shares shall bear the following legend:
“The ownership and transferability of this certificate and these shares are subject to the terms and conditions (including forfeiture) of the SemGroup Corporation Equity Incentive Plan and a Restricted Stock Award Agreement entered into between the registered owner and SemGroup Corporation.  Copies of such Plan and Agreement are on file in the executive offices of SemGroup Corporation.”
As soon as administratively practicable, but not later than sixty (60) days, following the vesting of the Restricted Shares (as described in Section 3), and upon the satisfaction of all other applicable conditions, including but not limited to, if applicable, the payment by the Participant of all withholding taxes, the Company shall deliver or cause to be delivered to the Participant, or in the case of Participant's death, Participant's beneficiary, a certificate or certificates for the applicable Restricted Shares which shall not bear the legend described above, but may bear such other legends as the Company deems advisable pursuant to Section 6 below.
3.Vesting of Restricted Stock.

EXHIBIT 10.31

(a)Vesting Schedule.  Subject to the Participant's continued Service through the first (1st) anniversary of the Date of Grant, one hundred percent (100%) of the Restricted Shares shall vest on such date.
(b)Change in Control.  If the Participant's Service is terminated after or, as determined by the Committee, in connection with a Change in Control, all of the unvested Restricted Shares shall vest and become nonforfeitable on the date of such termination.
(c)Termination of Service.  If the Participant's Service is terminated for any reason other than death or as outlined in Section 3(b), the Restricted Shares, to the extent not then-vested, shall be forfeited by the Participant without any consideration.
4.No Right to Continued Service.  The granting of the Restricted Shares evidenced hereby and this Agreement shall impose no obligation on the Company or any Affiliate to continue the Service of the Participant and shall not lessen or affect any right that the Company or any Affiliate may have to terminate the Service of such Participant.
5.Rights as a Stockholder.  During the Restriction Period, the Participant shall have none of the rights of a Stockholder of the Company, except that the Participant shall: (a) be entitled to exercise all of the voting rights of a Stockholder of the Company and (b) have the right to receive dividends on the Restricted Shares (the “Dividends”) subject to the remainder of this Section 5.  The Dividends, if any, shall be held by the Company and shall be subject to forfeiture until such time that the Restricted Shares on which the Dividends were distributed vest in accordance with Section 3 above.  The Dividends shall be released to the Participant, subject to Section 9 hereof, as soon as administratively practicable, but not later than the time of delivery to the Participant, in accordance with Section 2 above, of certificates representing the Restricted Shares on which the Dividends were distributed.
6.Securities Laws; Legend on Certificates.  The issuance and delivery of Shares shall comply with all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company's securities may then be traded.  If the Company deems it necessary to ensure that the issuance of Shares under the Plan is not required to be registered under any applicable securities laws, each Participant to whom such Shares would be issued shall deliver to the Company an agreement or certificate containing such representations, warranties and covenants as the Company may request which satisfies such requirements.  The certificates representing the Shares shall be subject to such stop transfer orders and other restrictions as the Committee may deem reasonably advisable, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.
7.Transferability.
(a)Transferability of Restricted Shares before Vesting.  During the Restriction Period, the Restricted Shares may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company and all Affiliates; provided, that, the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.  No such permitted transfer of the Restricted Shares to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof.

EXHIBIT 10.31

(b)Transferability of Restricted Shares after Vesting.  The Participant may not transfer, sell, assign or otherwise dispose of Shares delivered to the Participant pursuant to Section 2 above prior to the Participant's termination of Service; provided, that, the Participant may sell such Shares in order to satisfy any federal, state or local income tax liability associated with the vesting of the Restricted Shares granted hereunder; and further that the Participant may transfer Restricted Shares after vesting in the following manners: (1) to his or her revocable grantor trust in which such Director is the sole primary beneficiary; (2) to a trust maintained for the benefit of the spouse or minor child of the Director of which the Director serves as trustee; and (3) to the spouse of the Director to be held in common ownership with such Director.
8.Adjustment of Restricted Shares.  Adjustments to the Restricted Shares shall be made in accordance with Article 12 of the Plan.
9.Withholding.
(a)The Participant  agrees that (a) he or she will pay to the Company or any applicable subsidiary, as the case may be, or make arrangements satisfactory to the Company or such subsidiary regarding the payment of any foreign, federal, state, or local taxes of any kind required by law to be withheld by the Company or such subsidiary with respect to the Restricted Shares, and (b) the Company, or such subsidiary, shall, to the extent permitted by law, have the right to deduct from any payments of any kind otherwise due to the Participant any foreign, federal, state, or local taxes of any kind required by law to be withheld with respect to the Restricted Shares.
(b)With respect to withholding required upon the lapse of restrictions or upon any other taxable event arising as a result of the Restricted Shares awarded, the Participant may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company or any applicable subsidiary withhold Restricted Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be withheld on the transaction.  All such elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.
10.Notices.  Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service (or in the case of a non-U.S. Participant, the foreign postal service of the country in which the Participant resides), by registered or certified mail, with postage and fees prepaid.  A notice shall be addressed to the Company, Attention: General Counsel, at its principal executive office and to the Participant at the address that he or she most recently provided to the Company.
11.Entire Agreement.  This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof.  They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.
12.Waiver.  No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.
13.Participant Undertaking.  The Participant agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable to carry out or effect one or more of the obligations or restrictions imposed on either the Participant or the Restricted Shares pursuant to this Agreement.

EXHIBIT 10.31

14.Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant's assigns and the legal representatives, heirs and legatees of the Participant's estate, whether or not any such person shall have become a party to this Agreement and agreed in writing to be joined herein and be bound by the terms hereof.
15.Choice of Law; Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction.
16.SUBJECT TO THE TERMS OF THIS AGREEMENT, THE PARTIES AGREE THAT ANY AND ALL ACTIONS ARISING UNDER OR IN RESPECT OF THIS AGREEMENT SHALL BE LITIGATED IN THE FEDERAL OR STATE COURTS IN DELAWARE.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR ITSELF, HIMSELF OR HERSELF AND IN RESPECT OF ITS, HIS OR HER PROPERTY WITH RESPECT TO SUCH ACTION.  EACH PARTY AGREES THAT VENUE WOULD BE PROPER IN ANY OF SUCH COURTS, AND HEREBY WAIVES ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
17.Restricted Shares Subject to Plan.  By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan.  The Restricted Shares are subject to the Plan.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.  The Participant has had the opportunity to retain counsel, and has read carefully, and understands, the provisions of the Plan and this Agreement.
18.Amendment.  The Committee may amend or alter this Agreement and the Restricted Shares granted hereunder at any time; provided, that, subject to Article 10, Article 11 and Article 12 of the Plan, no such amendment or alteration shall be made without the consent of the Participant if such action would materially diminish any of the rights of the Participant under this Agreement or with respect to the Restricted Shares.
19.Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
20.Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
21.No Guarantees Regarding Tax Treatment.  Participants (or their beneficiaries) shall be responsible for all taxes with respect to the Restricted Shares.  The Committee and the Company make no guarantees regarding the tax treatment of the Restricted Shares.  Neither the Committee nor the Company has any obligation to take any action to prevent the assessment of any tax under Section 409A of the Code or Section 457A of the Code or otherwise and none of the Company, any Subsidiary or Affiliate, or any of their employees or representatives shall have any liability to a Participant with respect thereto.
22.Compliance with Section 409A.  The Company intends that the Restricted Shares and right to receive Dividends be structured in compliance with, or to satisfy an exemption from, Section 409A 

EXHIBIT 10.31

of the Code and all regulations, guidance, compliance programs and other interpretative authority thereunder (“Section 409A”), such that there are no adverse tax consequences, interest, or penalties under Section 409A as a result of the Restricted Shares or payment of Dividends.  In the event the Restricted Shares or Dividends are subject to Section 409A, the Committee may, in its sole discretion, take the actions described in Section 11.1 of the Plan.  Notwithstanding any contrary provision in the Plan or this Agreement, any payment(s) of nonqualified deferred compensation (within the meaning of Section 409A) that are otherwise required to be made under this Agreement to a “specified employee” (as defined under Section 409A) as a result of his or her separation from service (other than a payment that is not subject to Section 409A) shall be delayed for the first six (6) months following such separation from service (or, if earlier, the date of death of the specified employee) and shall instead be paid on the date that immediately follows the end of such six (6) month period or as soon as administratively practicable thereafter.  A termination of Service shall not be deemed to have occurred for purposes of any provision of the Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of Service, unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A.  For purposes of any such provision of this Agreement relating to any such payments or benefits, references to a “termination,” “termination of Service” or like terms shall mean “separation from service.”
[SIGNATURE PAGE FOLLOWS]

EXHIBIT 10.31

IN WITNESS WHEREOF, the parties hereto have executed this Restricted Stock Award Agreement as of the date first written above.
SemGroup Corporation

By:  __________________________
Name: Norman J. Szydlowski
Title: President and CEO

Agreed and acknowledged as
of the date first above written:

    
                       Participant    
EXHIBIT A
Stock Power
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto SemGroup Corporation (the “Company”), _________________ (_____) shares of the Class A common stock, par value $0.01 per share, of the Company standing in his/her/their/its name on the books of the Company represented by Certificate No. ________________ herewith and does hereby irrevocably constitute and appoint ________________________ his/her/their/its attorney-in-fact, with full power of substitution, to transfer such shares on the books of the Company.
Dated:  __________________    Signature: ________________________________

Print Name and Mailing Address
__________________________________________
__________________________________________
__________________________________________

		
	Instructions:
	Please do not fill in any blanks other than the signature line and printed name and mailing address.  Please print your name exactly as you would like your name to appear on the issued stock certificate.  The purpose of this assignment is to enable the forfeiture of the shares without requiring additional signatures on your part.Exhibit 10.31

 

Exhibit
10.31

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THE NOTE MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION FROM
SUCH REGISTRATION IS AVAILABLE.

 

INFINITY
ENERGY RESOURCES, INC.

 

8%
PROMISSORY NOTE

 

$________

 

FOR
VALUE RECEIVED, Infinity Energy Resources, Inc., a Delaware corporation (the “Company”), promises to pay
to _____________________________, whose address is _____________________________________ or registered assigns (the
“Holder”), the sum of __________________________ ($________) in lawful money of the United States of America
on or before the Maturity Date as defined herein, with all Interest thereon as defined and specified herein.

 

In
connection with this Note, the Company will issue Holder a warrant (the “Warrant”) exercisable to purchase shares
of its common stock (the “Common Stock”). The Warrant is attached as Exhibit A to this Note.

 

1.Interest
and Fees. This Note shall bear interest (“Interest”) equal to eight percent (8%) per annum. Interest will be calculated
on a three hundred sixty-five (365) day year. The Company shall pay the Interest on or before the Maturity Date, as defined below.
In no event shall the rate of Interest payable on this Note exceed the maximum rate of interest permitted to be charged under
applicable law.

 

2.Payments.
All payments under this Note shall be made by the Company hereunder, whether on account of principal or Interest, without
set-off or counterclaim and shall first be credited against costs and expenses provided for in this Note, second to the payment
of any penalties, third to the payment of accrued and unpaid Interest, if any, and the remainder shall be credited against principal.
All payments due hereunder shall be payable in legal tender of the United States of America, and in same day funds delivered to
Holder by cashier’s check, certified check, or bank wire transfer to the mailing address provided below, or at such other
place as Holder shall designate in writing for such purpose from time to time made prior to noon, Kansas City, Kansas time, on
the Maturity Date. If a payment under this Note otherwise would become due and payable on a Saturday, Sunday or legal holiday
(any other day being a “Business Day”), the due date of the payment shall be extended to the next succeeding Business
Day, and Interest, if any, shall be payable thereon during such extension.

 

    	-1-

    	 

    
 

3.Maturity
Date. This Note shall be due and payable in full, including all accrued Interest thereon, on ________________ (the
“Maturity Date”), subject to Paragraph 4, “Pre-Payments.”

 

4.Pre-Payments.
At any time prior to the Maturity Date, the Company shall have the right to prepay this Note, in whole or in part without penalty,
on ten (10) days’ advance notice to Holder. On such prepayment date, the Company will pay in respect of this Note cash equal
to the face amount plus accrued Interest on the Note (or portion thereof) being prepaid.

 

5.Unsecured
Indebtedness. This Note is unsecured.

 

6.Representations
and Warranties of the Company. The Company represents and warrants as follows:

 

6.1The
Company is duly existing and in good standing as a corporation in its jurisdiction of formation and is qualified and licensed
to do business and is in good standing in any other jurisdiction in which the conduct of its business or ownership of property
requires that it to be qualified, except where the failure to do so could not reasonably be expected to have a material adverse
effect on the Company’s business.

 

6.2The
execution, delivery and performance by the Company of this Note and the Warrant has been duly authorized, and do not (i) conflict
with any of the Company’s organizational documents; (ii) contravene, conflict with, constitute a default under or violate
any material law applicable to the Company; (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction,
decree, determination or award of any governmental authority by which the Company or any of its Subsidiaries or any of their property
or assets may be bound or affected; (iv) require any action by, filing, registration, or qualification with, or governmental approval
from any governmental authority (except such governmental approvals which have already been obtained and are in full force and
effect); or (v) constitute an event of default under any material agreement by which the Company is bound.

 

6.3There
are no material actions or proceedings pending or threatened by or against the Company, except as set forth in the Company’s
annual report on Form 10-K for the year ended December 31, 2011 and its report on Form 10-Q for the quarter ended September 30,
2012 filed with the Securities and Exchange Commission (the “SEC Reports”).

 

6.4All
financial statements of the Company contained in its SEC Reports fairly present in all material respects the Company’s financial
position and the Company’s results of operations as of the dates thereof, and for the periods indicated therein, subject
in the case of the unaudited financial statements to normal year-end audit adjustments.

 

6.5The
Company’s SEC Reports, as of their respective dates or, if amended, as of the date of the last such amendment, did not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not misleading.

 

    	-2-

    	 

    
 

7.Covenants
of the Company. The Company will use the proceeds it receives from this Note for general working capital and such other purposes
as the Company may deem appropriate.

 

8.Default.
The Company shall perform its obligations and covenants hereunder and in each and every other agreement between the Company
and Holder pertaining to the Indebtedness evidenced hereby. The following provisions shall apply upon failure of the Company so
to perform.

 

8.1Event
of Default. Any of the following events shall constitute an “Event of Default” hereunder:

 

8.1.1Failure
by the Company to pay principal of the Note when due and payable on the Maturity Date;

 

8.1.2Failure
of the Company to pay Interest when due hereunder; or

 

8.1.3The
entry of an order for relief under Federal Bankruptcy Code as to the Company or entry of any order appointing a receiver or trustee
for the Company or approving a petition in reorganization or other similar relief under bankruptcy or similar laws in the United
States of America or any other competent jurisdiction; or the filing of a petition by the Company seeking any of the foregoing,
or consenting thereto; or the filing of a petition to take advantage of any debtor’s act; or making a general assignment
for the benefit of creditors; or admitting in writing inability to pay debts as they mature.

 

8.2Acceleration.
Upon any Event of Default (in addition to any other rights or remedies provided for under this Note), at the option of Holder,
all sums evidenced hereby, including all principal, Interest, fees and all other amounts due hereunder, shall become immediately
due and payable. If an Event of Default in the payment of principal or Interest should occur and be continuing with respect to
the Note, Holder may declare the principal, Interest, fees and all other amounts due hereunder to be immediately due and payable.

 

8.3Notice
by Company. Upon the happening of any Event of Default specified in this paragraph that is not cured within the respective
periods prescribed above, the Company will give prompt written notice thereof to Holder of this Note.

 

8.4No
Waiver. Failure of Holder to exercise any option hereunder shall not constitute a waiver of the right to exercise the same
in the event of any subsequent Event of Default, or in the event of continuance of any existing Event of Default after demand
or performance thereof.

 

8.5Default
Interest and Fees. Default Interest will accrue on an unpaid principal or Interest due hereunder at the rate of sixteen percent
(16%) per annum upon the occurrence of any Event of Default until the Event of Default is cured. Default Interest shall be payable
monthly basis commencing thirty (30) days after the Default Interest has begun accruing. Default Interest will be computed on
a three hundred sixty-five (365) day year.

 

    	-3-

    	 

    
 

9.Assignment,
Transfer or Loss of the Note.

 

9.1Holder
may assign, transfer, hypothecate or sell all or any part of this Note upon written notice to the Company, subject to compliance
with the Act and applicable laws and regulations of any state. The Company has not registered this Note under the Act or the applicable
securities laws of any state in reliance on exemptions from registration. Such exemptions depend upon the investment intent of
Holder at the time he acquires his Note. Holder is acquiring this Note for his own account for investment purposes only and not
with a view toward distribution or resale of such Note within the meaning of the Act and the applicable securities laws of any
state. The Company shall be under no duty to register the Note or to comply with an exemption in connection with the sale, transfer
or other disposition under the applicable laws and regulations of the Act or the applicable securities laws of any state. The
Company may require Holder to provide, at his expense, an opinion of counsel satisfactory to the Company to the effect that any
proposed transfer or other assignment of the Note will not result in a violation of the applicable federal or state securities
laws or any other applicable federal or state laws or regulations.

 

9.2Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Note and, in the
case of any such loss, theft or destruction of any Note, upon delivery of an indemnity bond in such reasonable amount as the Company
may determine (or, in the case of any Note held by the original Noteholder, of an indemnity agreement reasonably satisfactory
to the Company), or, in the case of any such mutilation, upon the surrender of such Note to the Company at is principal office
for cancellation, the Company at its expense will execute and deliver, in lieu thereof, a new Note of like tenor, dated the date
to which interest hereunder shall have been paid on such lost, stolen, destroyed or mutilated Note.

 

9.3Subject
to Subparagraph 9.1 above, Holder may, at his option, either in person or by duly authorized attorney, surrender this Note for
registration of transfer at the principal office of the Company and, upon payment of any expenses associated with the transfer,
receive in exchange therefor a Note or Notes, dated as of the date to which interest has been paid on the Note so surrendered,
each in the principal amount of $1,000 or any multiple thereof, for the same aggregate unpaid principal amount as the Note so
surrendered and registered as payable to such person or persons as may be designated by Holder. Every Note surrendered for registration
of transfer shall be duly endorsed or shall be accompanied by a written instrument of transfer duly executed by Holder or his
attorney duly authorized in writing. Every Note, so made and delivered by the Company in exchange for any Note surrendered, shall
in all other respects be in the same form and have the same terms as the Note surrendered. No transfer of any Note shall be valid
unless made in such manner at the principal office of the Company.

 

9.4The
Company may treat the person in whose name this Note is registered as the owner and Holder of this Note for the purpose of receiving
payment of all principal of and all Interest on this Note, and for all other purposes whatsoever, whether or not such Note shall
be overdue and, except for transfers effected in accordance with this subparagraph, the Company shall not be affected by notice
to the contrary.

 

    	-4-

    	 

    
 

10.Notices.
All notices provided for herein shall be validly given if in writing and delivered personally or sent by certified mail, postage
prepaid, or sent via an express delivery service, such as Federal Express or United Parcel Service, to the office of the Company
or such other address as the Company may from time to time designate in writing sent by certified mail, postage prepaid, to Holder
at his address set forth below or such other address as Holder may from time to time designate in writing to the Company by certified
mail, postage prepaid or otherwise as designated in writing by Holder.

 

11.Usury.
All Interest, Default Interest, fees, charges, goods, things in action or any other sums or things of value, or other contractual
obligations (collectively, the “Additional Sums”) paid by the Company hereunder, whether pursuant to this Note or
otherwise, with respect to the Indebtedness evidenced hereby, or any other document or instrument in any way pertaining to the
Indebtedness, which, under the laws of the State of Delaware may be deemed to be Interest with respect to such loan or Indebtedness,
shall, for the purpose of any laws of the State of Delaware, which may limit the maximum amount of Interest to be charged with
respect to such loan or Indebtedness, be payable by the Company as, and shall be deemed to be, Interest and for such purposes
only, the agreed upon and contracted rate of Interest shall be deemed to be increased by the Additional Sums. Notwithstanding
any provision of this Note to the contrary, the total liability for payments in the nature of Interest under this Note shall not
exceed the limits imposed by applicable law. The Company shall not assert a claim, and shall actively resist any attempts to compel
it to assert a claim, respecting a benefit under any present or future usury laws against any Holder of this Note.

 

12.Binding
Effect. This Note shall be binding upon the parties hereto and their respective heirs, executors, administrators, representatives,
successors and permitted assigns.

 

13.Collection
Fees. The Company shall pay all costs of collection, including reasonable attorneys’ fees and all costs of suit and
preparation for such suit (and whether at trial or appellate level), in the event the unpaid principal amount of this Note, or
any payment of Interest is not paid when due, or in the event Holder is made party to any litigation because of the existence
of the Indebtedness evidenced by this Note, or if at any time Holder should incur any attorneys’ fees in any proceeding
under the Federal Bankruptcy Code (or other similar laws for the protection of debtors generally) in order to collect any Indebtedness
hereunder or to preserve, protect or realize upon any security for, or guarantee or surety of, such Indebtedness whether suit
be brought or not, and whether through courts of original jurisdiction, as well as in courts of appellate jurisdiction, or through
a bankruptcy court or other legal proceedings.

 

14.Construction.
This Note shall be governed as to its validity, interpretation, construction, effect and in all other respects by and in accordance
with the laws and interpretations thereof of the State of Delaware. Unless the context otherwise requires, the use of terms in
singular and masculine form shall include in all instances singular and plural number and masculine, feminine and neuter gender.

 

    	-5-

    	 

    
 

15.Severability.
In the event any one or more of the provisions contained in this Note or any future amendment hereto shall for any reason
be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Note or such other agreement, and in lieu of each such invalid, illegal or unenforceable provision
there shall be added automatically as a part of this Note a provision as similar in terms to such invalid, illegal or unenforceable
provision as may be possible and be valid, legal and enforceable.

 

16.Entire
Agreement. This Note represents the entire agreement and understanding between the parties concerning the subject matter hereof
and supersede all prior and contemporaneous agreements, understandings, representations and warranties with respect thereto.

 

17.Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Note shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in Kansas City, Kansas for the adjudication of any dispute hereunder or in connection herewith
or therewith, or with any transaction contemplated hereby or discussed herein, or in any manner arising in connection with or
related to the transactions contemplated hereby or involving the parties hereto whether at law or equity and under any contract,
tort or any other claim whatsoever and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing or faxing a
copy thereof to such party at the address for such notices as listed in this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS NOTE OR ANY
TRANSACTION CONTEMPLATED HEREBY.

 

18.Representations
and Warranties to Survive Closing. All representations, warranties and covenants contained herein shall survive the execution
and delivery of this Note and the issuance of any Conversion Shares upon the conversion hereof.

 

19.Headings.
The headings used in this Note are used for convenience only and are not to be considered in construing or interpreting this
Note.

 

    	-6-

    	 

    
 

20.Definitions.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, “control” when used with respect to
any specified Person means the power to direct the management and policies of such Person directly or indirectly, whether through
the ownership of Voting Stock, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Board
of Directors” means, with respect to any Person, the Board of Directors of such Person or any committee of the Board
of Directors of such Person duly authorized to act on behalf of the Board of Directors of such Person.

 

“Capital
Stock” means, with respect to any Person, any and all shares, interests, equity participations or other equivalents
(however designated) of corporate stock or partnership interests and any and all warrants, options and rights with respect thereto
(whether or not currently exercisable), including each class of common stock and preferred stock of such Person.

 

“GAAP”
means generally accepted accounting principles as in effect in the United States of America as of the Issue Date.

 

“Holder”
means a Person in whose name a Note is registered on the Company’s books.

 

“Indebtedness”
means, without duplication, with respect to any Person, (a) all obligations of such Person (i) in respect of borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such person or only to a portion thereof); (ii) evidenced
by bonds, notes, debentures or similar instruments; (iii) representing the balance deferred and unpaid of the purchase price of
any property or services (other than accounts payable or other obligations arising in the ordinary course of business); (iv) evidenced
by bankers’ acceptances or similar instruments issued or accepted by banks, (v) for the payment of money relating to a capitalized
lease obligation under GAAP; or (vi) evidenced by a letter of credit or a reimbursement obligation of such Person with respect
to any letter of credit; (b) all net obligations of such Person under interest rate swap obligations and foreign currency hedges;
(c) all liabilities of others of the kind described in the preceding clauses (a) or (b) that such Person has guaranteed or that
are otherwise its legal liability; (d) Indebtedness (as otherwise defined in this definition) of another Person secured by lien
on any asset of such Person, whether or not such Indebtedness is assumed by such Person, the amount of such obligations being
deemed to be the lesser of (1) the full amount of such obligations so secured, and (2) the fair market value of such asset, as
determined in good faith by the Board of Directors of such Person, which determination shall be evidenced by a board resolution;
and (e) any and all deferrals, renewals, extensions, refinancings and refundings (whether direct or indirect) of, or amendments,
modifications or supplements to, any liability of the kind described in any of the preceding clauses (a), (b), (c), (d) or this
clause (e), whether or not between or among the same parties.

 

“Insolvency
Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors,
or proceedings seeking reorganization, arrangement, or other relief.

 

“Issue
Date” means the date on which the Note is originally issued.

 

“Maturity
Date” means __________, 2013.

 

    	-7-

    	 

    
 

“Person”
means any individual, corporation, partnership, joint venture, trust, estate, unincorporated organization or government or
any agency or political subdivision thereof.

 

A
“subsidiary” of any Person means (i) a corporation a majority of whose Voting Stock is at the time, directly
or indirectly, owned by such Person, by one or more subsidiaries of such Person or by such Person and one or more subsidiaries
of such Person, (ii) a partnership in which such Person or a subsidiary of such Person is, at the date of determination, a general
or limited partner of such partnership, but only if such Person or its subsidiary is entitled to receive more than fifty percent
(50%) of the assets of such partnership upon its dissolution, or (iii) any other Person (other than a corporation or partnership)
in which such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest
or (y) the power to elect or direct the election of a majority of directors or other governing body of such Person.

 

“Subsidiary”
means any subsidiary of the Company.

 

“Voting
Stock” means, with respect to any Person, securities of any class or classes of Capital Stock in such Person entitling
the holders thereof, whether at all times or only so long as no senior class of stock has voting power by reason of any contingency
to vote in the election of members of the Board of Directors or other governing body of such Person.

 

21.Miscellaneous.
Except as otherwise provided herein, the Company waives demand, diligence, presentment for payment and protest, notice of
extension, dishonor, maturity and protest. Time is of the essence with respect to the performance of each and every covenant,
condition, term and provision hereof. This Note may be executed by facsimile signature, which signature shall be deemed to be
binding upon the Company.

 

IN
WITNESS WHEREOF, this Note has been issued on the February ___, 2013.

 

	 	INFINITY
    ENERGY RESOURCES, INC.
	 	 	 
	 	By	/s/ Stanton E. Ross
	 	 	Stanton
    E. Ross
	 	Its	President
    and Chief Executive Officer

 

	Mailing
    Address of Holder:	 
	 	 
	 	 
	 	 
	 	 
	 	 
	Mailing
    Address of Company:	 
	Infinity
    Energy Resources, Inc.	 
	11900
    College Blvd.	 
	Suite
    310	 
	Overland
    Park, Kansas 66210	 

 

    	-8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]