Document:

EXHIBIT 10.5 

 

EXHIBIT D

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-4  August 6, 2020

EMPIRE PETROLEUM CORPORATION

COMMON SHARE WARRANT CERTIFICATE

Warrant to Purchase up to 11,066,667
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 11,066,667 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” initially means $0.141, provided, however, at any time after the number of Warrant Shares are adjusted hereunder (as
described in the definition of Warrant Shares (other than pursuant to Section 4)), the Exercise Price shall be equal to a quotient,
the numerator of which is (a) the difference between (i) $1,062,200 less (ii) the total amount paid by Warrant Holder hereunder
as of the date of such calculation and the denominator of which is (b) the number of Warrant Shares that may still be acquired
hereunder as of the date of such calculation.

“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.

“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.

“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” initially means 7,533,333 Common Shares issued or issuable upon exercise of this Warrant, provided, however, in the
event that any stockholder (other than current officers and directors) exercises any warrants to acquire Common Shares on or before
December 31, 2020 (the “Adjustment Shares”), the Common Shares issued or issuable upon exercise of this Warrant shall
be adjusted upward as of the effective time of any such exercise by a number of Warrant Shares equal to (a) the number of Adjustment
Shares so exercised multiplied by (b) 0.6667, provided, further, any such adjustment shall in no event exceed 3,533,333
Warrant Shares, and all of such Warrant Shares are subject to adjustment from time to time pursuant to Section 4.

2. 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.

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-4 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-4 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:Exhibit
10.6

 

TERM LOAN AGREEMENT

 

This TERM LOAN AGREEMENT (this “Agreement”),
dated as of August 6, 2020 (the “Effective Date”), is entered into by and between

		·	EMPIRE TEXAS LLC, a Delaware limited liability company (“Borrower”); and

		·	PETROLEUM INDEPENDENT & EXPLORATION LLC, a Nevada limited liability company (“Lender”).

 

RECITALS

		A.	WHEREAS, Borrower, Lender and certain of their respective Affiliates have concurrently entered
into the Joint Development Agreement dated as of the date of this Agreement (the “JDA”) and the other Transaction
Documents (as defined in the JDA); and

		B.	WHEREAS, pursuant to the JDA, among other provisions, Lender’s Affiliate, PIE Operating LLC
(“PIE Operating”) will act as contract operator to carry out certain recompletion and workover projects on Workover
Wellbores (as defined in the JDA) (the “Work”); and

		C.	WHEREAS, Borrower has requested that Lender make advances to Borrower from time to time in an aggregate
principal amount at any time not to exceed Two Million Dollars ($2,000,000) (the “Loan”) to fund the Work; and

		D.	WHEREAS, Lender and Borrower wish to make the proceeds of the Loan available directly to PIE Operating;
and

		E.	WHEREAS, pursuant to the Wellbore Assignment (as defined
                                                                                          in the JDA), Borrower has assigned to Lender a 70% of 8/8ths gross working interest and 70% of 8/8ths gross revenue interest
                                                                                          from the Workover Wellbores (the “Assigned Interests”) as security for the Obligations of Borrower
                                                                                          hereunder; and 

		F.	WHEREAS, Lender is willing to advance the Loan to Borrower on the terms and subject to the conditions
set forth herein.

 

NOW, THEREFORE, in consideration of
the premises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Borrower and Lender, intending to be legally bound, hereby agree as follows:

 

 

    	

    	 

    

 

		1.	Loans and Promissory
                                         Note.

		(a)	Commitment to Lend. Subject to the terms and conditions set forth in this Agreement, Lender
hereby agrees to make advances to Borrower (each a “Loan Advance” and collectively, the “Loan Advances”)
from time to time, during the period beginning on the date hereof and ending on the Maturity Date (the “Draw Period”),
in an aggregate principal amount up to, but not to exceed the Commitment Amount at any relevant time. Amounts borrowed and repaid
may not be reborrowed.

		(b)	Purpose. The Loan proceeds shall be used solely for the purpose of funding the Work and
related matters and for no other purpose without consent of Lender

		(c)	Promissory Note. The Loan Advances made by Lender hereunder shall be evidenced by the duly
executed Promissory Note of Borrower to Lender, dated as of the date hereof in an original principal amount equal to the full Commitment
Amount and in the form attached hereto as Exhibit A (as amended, restated, modified, extended, renewed or replaced from time to
time, the “Promissory Note”).

		(d)	Repayments.

		(i)	All net cash proceeds of the Assigned Interest received by Lender from time to time pursuant to
the Wellbore Assignment shall be applied to repay outstanding principal and pay all accrued interest on outstanding Loan Advances
and other Obligations due and owing from time to time. All such payments shall be applied first to payment of unpaid accrued interest,
then to the repayment of outstanding principal, then to any other outstanding Obligations.

		(ii)	Borrower shall pay in full any remaining outstanding principal amount, all accrued but unpaid interest,
and all other Obligations on the Maturity Date.

		(e)	Prepayments. Borrower may prepay any of the Obligations without penalty or premium but with
accrued interest to the date of such prepayment on the amount prepaid, at any time and from time to time, in whole or in part,
upon notification to Lender of such prepayment not later than 10:00 a.m. Houston time on the date of such prepayment. Any such
prepayment shall be applied first to payment of unpaid accrued interest, then to the repayment of outstanding principal, then to
any other outstanding Obligations.

		(f)	Payment of Interest.

		(i)	Subject to Section 5(b)(ii), the principal amount outstanding under the Loan Advances shall accrue
interest from the date of issuance until the Maturity Date at the fixed rate of six percent (6%) per annum.

		(ii)	The initial payment of accrued interest shall be due on the first Business Day of the calendar
month following the calendar month in which the first Loan Advance

 

 

 

 

    	-2- 

    	 

    

is made, and payment of accrued
interest shall be due on the first Business Day of each calendar month thereafter.

		(iii)	Interest will be computed on the basis of a year deemed to consist of 365 days and shall be paid
for the actual number of days elapsed.

 

		2.	Conditions of Loans.

		(a)	Conditions Precedent to the Initial Advance. The obligation of Lender to make the initial
Loan Advance shall be subject to the conditions precedent that Lender shall have received the following documents:

		(i)	the Promissory Note, executed by Borrower;

		(ii)	limited liability company resolutions of the member of Borrower, certified by an officer of Borrower,
which authorize the execution, delivery and performance by Borrower of this Agreement and the other Transaction Documents.

		(iii)	a certificate of incumbency certified by an officer of Borrower certifying the names of each person
authorized to execute this Agreement and the other Transaction Documents, together with specimen signatures of such persons;

		(iv)	copies of the certificate of formation and limited liability company agreement of Borrower certified
to be true and correct by an officer of Borrower;

		(v)	certificates of Good Standing and Existence issued by the appropriate government entities for Borrower;

		(vi)	such other documents, records, instruments, papers, opinions, and reports, as shall have been requested
by Lender, to evidence the status or organization or authority of Borrower or to evidence or secure payment of the Obligations,
all in form satisfactory to Lender and its counsel; and

		(vii)	certification by an officer of Borrower that the representations and warranties herein are accurate
and complete in all material respects.

		(b)	Conditions Precedent to Loan Advances. Lender’s obligation to make the initial and
each subsequent Loan Advance is subject to satisfaction of the following additional conditions precedent:

		(i)	Lender’s receipt of a written executed Notice of Borrowing, as defined in Section 2(c),
including designation of the Workover Wellbore for which the proceeds of the Loan Advance will be used;

		(ii)	each of the Transaction Documents shall have been executed and delivered by the parties thereto
and they shall each be in full force and effect;

 

 

 

 

    	-3- 

    	 

    

		(iii)	the representations and warranties of Borrower in Section 3 shall be accurate and complete
in all material respects on the date of the Notice of Borrowing and the Loan Date (as defined below);

		(iv)	no Event of Default shall have occurred and be continuing or result from such Loan Advance; and

		(v)	there shall not have occurred any Material Adverse Change (as defined below).

		(c)	Procedure for Borrowing.

		(i)	To obtain a Loan Advance, Borrower shall give written notice to Lender (each a “Notice
of Borrowing”) not later than ten (10) Business Days prior to the date of the proposed Loan Advance (the “Loan
Date”).

		(ii)	Each Notice of Borrowing to Lender shall be in writing and shall specify (w) the Loan Date; (y)
the Workover Wellbore for which such Loan Advance shall be used; and (z) the amount of such proposed Loan Advance.

		(iii)	Following Lender’s receipt of a Notice of Borrowing and satisfaction of the other conditions
set forth in Section 2(a), Lender shall make the proceeds of the Loan Advance available to PIE Operating for its use in performing
work on the relevant Workover Wellbore or related matters.

		(d)	Payment Mechanics.

		(i)	Except as provided in Section 1(d)(i), all payments by Borrower under the Loan Documents shall
be made to Lender to such account as Lender may direct in writing, prior to 2:00 P.M., Houston, Texas, time, on the date of payment
(or, if the date of payment is not a Business Day, the next Business Day) in funds which are immediately available to Lender.

		(ii)	All payments received by Lender in immediately available funds prior to 2:00 P.M., Houston, Texas,
time, on any Business Day will be credited to Borrower’s applicable account on the date of receipt. All payments received
by Lender in immediately available funds after 2:00 P.M., Houston, Texas, time, on any Business Day will be credited to Borrower’s
applicable account on the next Business Day.

		3.	Representations and Warranties of Borrower.

Borrower hereby represents
and warrants to Lender as of the date hereof and on and as of the date of each Loan Advance as follows:

		(a)	Binding Agreement. The Transaction Documents constitute or will constitute, when issued
and delivered, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, subject to bankruptcy,
insolvency and other

 

 

 

 

 

    	-4- 

    	 

    

similar laws affecting
the enforcement of creditors’ rights in general, and general principles of equity.

		(b)	Organization; Power; Authorization. Borrower is a limited liability company duly incorporated,
validly existing and in good standing under the laws of the State of Delaware. Borrower has all requisite power and authority (limited
liability company and otherwise) to own and use its properties and assets and carry on its business as currently conducted or contemplated.
Borrower has the requisite limited liability company power and authority to execute, deliver and perform the Transaction Documents
and to consummate the transactions contemplated thereby. The execution, delivery and performance by Borrower of the Transaction
Documents and the consummation of the transactions contemplated thereby have been duly authorized by all necessary limited liability
company action on the part of Borrower.

		(c)	Non-Contravention. Neither the execution and the delivery of the Transaction Documents,
nor the consummation of the transactions contemplated hereby, will (a) violate any injunction, judgment, order, decree, ruling,
charge or any provision of Borrower’s certificate of formation, limited liability company agreement or other charter documents,
or, to Borrower’s knowledge, any restriction of any government, governmental agency or court to which Borrower is subject,
or (b) conflict with, result in a material breach of, constitute a default under, result in the acceleration of, create in any
party the right to accelerate, terminate, modify, or cancel, any material agreement, contract, lease, license, instrument, or other
arrangement to which Borrower is a party or by which it is bound or to which any of its assets are subject.

		4.	Covenants.

		(a)	Affirmative Covenants.

		(i)	Use of Proceeds. Borrower shall use the proceeds of the Loan Advances solely for the purposes
set forth herein.

		(ii)	Compliance with Laws. Borrower shall comply in all material respects with all laws and regulations
applicable to it in the operation of its business.

		(iii)	Taxes. Borrower shall pay when due all taxes, assessments and charges imposed on it or that
are required to be withheld, except where contested in good faith and where adequate reserves have been set aside.

		(b)	Negative Covenants. Borrower shall not, without Lender’s prior written consent:

		(i)	Collateral. Do, or permit to be done, anything which could be reasonably expected to prejudice
the validity, enforceability, or priority of any of the Assigned Interests;

 

 

    	-5- 

    	 

    

		(ii)	Mergers or Acquisitions. Merge or consolidate, or permit any of its subsidiaries to merge
or consolidate, with any other Person, or acquire, or permit any of its subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person. A subsidiary may merge or consolidate into another subsidiary or into Borrower; provided
that, in the case of a merger of a subsidiary into Borrower, Borrower shall remain the surviving entity;

		(iii)	Indebtedness. Borrow money or engage in any other financing transaction for borrowed money
except under this Agreement and except for trade payables incurred in the ordinary course of Borrower’s business;

		(iv)	Encumbrances. Create, incur, allow, or suffer any Lien (as defined below) on any existing
or future, tangible or intangible, assets of Borrower, or assign or convey any right to receive income or permit any of Borrower’s
subsidiaries to do so, other than Permitted Liens (as defined below);

		(v)	Loans. Make any loan to any Person except prepaid items or deposits incurred in the ordinary
course of business;

		(vi)	Capital Expenditures. Make or agree to make any capital expenditures, individually or in
the aggregate, other than for any Workover Wellbore described in any Notice of Borrowing; or

		(vii)	Dividends. Make any cash distribution or declare any dividends.

		5.	Events of Default; Remedies Upon Default.

		(a)	Events of Default. The occurrence of any of the following events shall constitute an event
of default (each, an “Event of Default”) hereunder:

		(i)	Borrower fails to pay timely any of the principal or any accrued interest or other amounts due
under the Loan Documents when the same becomes due and payable and such failure continues for five (5) Business Days thereafter;

		(ii)	Borrower or EMPR is in material breach of any Transaction Document to which it is a party, and
(except for any failure to pay money, for which a five (5) calendar day cure period applies) such breach is not remedied in full
to the satisfaction of Lender in its sole discretion within 30 days of the breach having occurred;

		(iii)	Borrower (A) files any petition or action for relief under any bankruptcy, reorganization, insolvency
or moratorium law, or any other law for the relief of, or relating to, debtors, now or hereafter in effect; (B) applies for or
consents to the appointment of a custodian, receiver, trustee, sequestrator, conservator or similar official for Borrower or for
a substantial part of Borrower’s assets; (C) makes a general assignment for the benefit of creditors; (D) becomes unable
to, or admits

 

 

 

    	-6- 

    	 

    

in writing its inability to,
pay its debts generally as they come due; or (E) takes any limited liability company action in furtherance of any of the foregoing;

		(iv)	an involuntary petition is filed against Borrower (unless such petition is dismissed or discharged
within sixty (60) days) under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee, sequestrator,
conservator, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control
of any property of Borrower;

		(v)	one or more final and non-appealable judgments for the payment of money in an amount, individually
or in the aggregate, of at least Fifty Thousand Dollars ($50,000) (not covered by independent third-party insurance as to which
liability has been accepted by such insurance carrier) are entered by a court of competent jurisdiction against Borrower which
judgment remains undischarged, unsatisfied, unvacated or unstayed for a period of sixty (60) days after such judgment becomes final
and non-appealable (and Lender shall not be required to make any Loan Advances prior to the satisfaction, vacation or stay of such
judgment, order or decree);

		(vi)	any representation, warranty or other statement made by Borrower in the Transaction Documents,
or any other agreement or other document delivered in connection with any of the Transaction Documents, shall prove to have been
false or misleading in any material respect when made;

		(vii)	Borrower violates any covenant set forth in Section 4, provided that with respect to a non-monetary
default of a covenant set forth in Section 4(a), such default continues unremedied for a period in excess of thirty (30) days;
or

		(viii)	a Change of Control shall occur.

		(b)	Remedies Upon Default.

		(i)	Upon the occurrence and during the continuance of an Event of Default hereunder:

		(A)	all unpaid principal, accrued interest and other amounts owing hereunder shall, at the option of
Lender, be immediately due and payable by Borrower;

		(B)	Lender may terminate its commitment to make additional Loan Advances; and

		(C)	Lender may proceed to protect and enforce its right by suit in the specific performance of any
covenant or agreement contained in the Loan Documents or in aid of the exercise of any power granted in the Loan Documents or may
proceed to enforce the payment of the Loan Documents or to enforce any other legal or equitable rights as Lender may

 

 

 

 

    	-7- 

    	 

    

have, including exercising
any right or remedies available to Lender under the Loan Documents and under applicable law;

		(ii)	Any and all amounts (including principal, unpaid interest and all reasonable costs and expenses
of collection, including reasonable attorneys’ fees) outstanding hereunder after an Event of Default shall, at the option
of Lender, bear interest from the date due until paid at the rate of ten percent (10%) per annum.

		6.	Other Provisions.

		(a)	Demand Waiver. Borrower waives presentment, notice of dishonor, protest and notice of protest
of this Agreement and the Promissory Note and all other notices or demands in connection with the delivery, acceptance, performance,
default or endorsement of the Loan Documents.

		(b)	Cost Indemnities. Borrower shall on demand indemnify Lender against:

		(i)	any cost, loss or liability incurred by Lender as a result of funding, or making arrangements to
fund, at the request of Borrower any Loan Advance not made by reason of the operation of any one or more of the provisions of this
Agreement (other than due to the default or negligence by Lender alone); and

		(ii)	all costs and expenses (including reasonable attorney’s fees) incurred by Lender in connection
with (x) the administration or release of the Assigned Interests or (y) the enforcement of, or the preservation of any rights under,
any Loan Document (including in relation to the issuing to an Borrower of any notice of default or reservation of rights).

		(c)	Waivers by Lender; Remedies Cumulative. Lender’s failure, at any time or times, to
require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or
diminish any right of Lender thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder
shall be effective unless signed by Lender and then is only effective for the specific instance and purpose for which it is given.
Lender’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Lender has all rights and
remedies provided under applicable law, or in equity. Lender’s exercise of one right or remedy is not an election, and Lender’s
waiver of any Event of Default is not a continuing waiver. Any delay in exercising any remedy by Lender is not a waiver, election,
or acquiescence.

		(d)	Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

 

 

 

 

 

 

 

    	-8- 

    	 

    

 

		(e)	Governing Law. This Agreement shall be governed by and construed in accordance with the
internal and substantive laws of the State of Texas and without regard to any conflicts of laws concepts which would apply the
substantive law of some other jurisdiction.

		(f)	Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement and the other Transaction Documents.

		(g)	Further Assurances. The parties hereto agree to execute and deliver all such other papers
and documents and to take such other further actions that may be reasonably necessary or appropriate to carry out the terms of
this Agreement or any other Transaction Document.

		(h)	Entire Agreement; Amendment. The Transaction Documents contain the entire agreement among
the parties with respect to the subject matter thereof and there are no agreements, understandings, representations, or warranties
regarding the subject matter hereof that are not set forth herein. This Agreement may not be amended, restated or revised except
by a writing signed by Borrower and Lender.

		(i)	Notices. All demands, approvals, communications and notices required or permitted by this
Agreement shall be in writing and may be made by letter or e-mail to the following
addresses:

If to Borrower, to:

 

EMPIRE TEXAS LLC

1203
E. 33rd Street, Suite 250

Tulsa,
Oklahoma 74105

Electronic
mail:      mike@empirepetrocorp.com

tommyp@empirepetrocorp.com

Attention:             Mike Morrisett

Tommy Pritchard

 

 

If to Lender, to:

 

PETROLEUM INDEPENDENT &
EXPLORATION LLC

25025 I-45 North, Suite 420

The Woodlands TX 77380

Electronic mail:     phil@mulacek.com

                                Sterling@pieoperating.com

Attention:             Phil Mulacek

                                Sterling Mulacek

 

 

 

 

 

    	-9- 

    	 

    

Any demands, approvals,
communication, document or notices made or delivered to any party under or in connection with this Agreement will only be effective
(i) if by way of email, when received in legible form; or (ii) if by way of letter, when it has been left at the above address
(or such other address as informed from time to time) or five (5) business days after being deposited in the post postage prepaid
in an envelope addressed to the above address (or such other address as informed from time to time).

		(j)	Counterparts. This Agreement may be executed in one or more counterparts, all of which when
taken together shall constitute but one instrument, and in the event any signature is delivered by facsimile or “pdf”
transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile or “pdf” were an original thereof.

		(k)	Severability. The provisions of this Agreement are severable, and the invalidity of any
provision shall not affect the validity or enforceability of any other provision hereof.

		(l)	Captions. The captions herein have been inserted solely for convenience of reference and
in no way define, limit, or describe the scope or substance of any provision of this Agreement.

		(m)	Interpretation. All pronouns used herein shall include the masculine, feminine, and neuter
gender as the context requires. All defined terms shall include both the plural and singular case as the context requires.

		(n)	Restriction on Assignment. Notwithstanding anything herein to the contrary, Borrower shall
not assign this Agreement without obtaining the prior written approval of Lender. Any attempted assignment in violation of this
Section 6(n) by Borrower shall be void and Lender shall not recognize any such purported assignment.

		(o)	Waivers.

		(i)	No failure or delay on the part of Lender in exercising any right, power or privilege under the
Loan Documents shall operate as a waiver of any right, power or privilege, except as and to the extent that the assertion of such
right, power or privilege shall be barred by an applicable statute of limitations.

		(ii)	No single or partial exercise of, or abandonment or discontinuance of steps to enforce, any right,
power or privilege under the Loan Documents shall preclude any other or further exercise of such right, power or privilege, or
the exercise of any other right, power or privilege.

		(iii)	BORROWER AND LENDER DO HEREBY EXPRESSLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
OF ANY KIND WHETHER ARISING OUT OF, UNDER OR BY REASON OF THE

 

 

    	-10- 

    	 

    

LOAN DOCUMENTS OR ANY ASSIGNMENT
OR TRANSACTION THEREUNDER. BORROWER AND LENDER UNDERSTAND THAT LENDER IS RELYING ON THIS WAIVER IN MAKING THE LOAN ADVANCES PROVIDED
FOR HEREIN AND IN EXECUTING AND DELIVERING THE LOAN DOCUMENTS.

		7.	Definitions.

As used in this Agreement:

		(a)	“Account Pledge Agreement” has the meaning set forth in Section 1(d)(i).

		(b)	“Affiliate” any person or entity that directly or indirectly is controlled by, controls
or is under common control with another person or entity.

		(c)	“Business Day” means any day except Saturday, Sunday and any day which shall be a federal
legal holiday or a day on which banking institutions in the State of Texas are authorized or required by law or governmental action
to close.

		(d)	“Change of Control” shall mean

		(i)	the stockholders of EMPR or the members of Borrower immediately prior to the consummation of any
consolidation, share exchange or merger of EMPR or Borrower (a “Fundamental Change”) do not own at least a majority
of the voting power of the entity which survives/results from such Fundamental Change;

		(ii)	a stockholder of EMPR or member of Borrower who does not own a majority of the voting power of
EMPR or Borrower immediately prior to a Fundamental Change, owns a majority of EMPR or Borrower’s voting power immediately
after such Fundamental Change;

		(iii)	EMPR or Borrower is not the surviving entity following a Fundamental Change;

		(iv)	EMPR or Borrower is the surviving entity following a Fundamental Change but the equity securities
of EMPR or Borrower outstanding immediately preceding such Fundamental Change are converted or exchanged by virtue of such Fundamental
Change into other property, whether in the form of securities, cash or otherwise;

		(v)	the approval of the stockholders of EMPR or members of Borrower of the liquidation or dissolution
of Borrower; or

		(vi)	any sale, lease, exchange or other transfer (in one transaction or a series of related transactions)
of all or substantially all of the assets of EMPR or Borrower, including equity held in any of Borrower’s subsidiaries.

 

 

 

 

 

 

    	-11- 

    	 

    

 

 

		(e)	“Commitment Amount” means, during the period from the date hereof until the first anniversary
thereof, US$1,000,000, and thereafter until the Maturity Date, US$2,000,000.

		(f)	“EMPR” means Empire Petroleum Corporation, a Delaware corporation and the parent company
of Borrower.

		(g)	“JDA” has the meaning set forth in the Recitals.

		(h)	“Lien” means any claim, mortgage, deed of trust, levy, charge, pledge, security interest
or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property
of Borrower.

		(i)	“Loan Advances” has the meaning set forth in Section 1(a).

		(j)	“Loan Documents” means this Agreement and the Promissory Note and any other document,
instrument or agreement delivered in connection herewith from time to time, each as amended, restated, or otherwise modified.

		(k)	“Material Adverse Change” means a material adverse change after the date hereof in
the business, operations or condition (financial or otherwise) of Borrower.

		(l)	“Maturity Date” means the earliest to occur of (i) termination of Lender’s commitment
to make Loan Advances or (ii) or the fourth anniversary of the date of this Agreement.

		(m)	“Obligations” means Borrower’s obligation to pay when due any debts, principal,
interest, and other amounts Borrower owes Lender now or later under the Loan Documents.

		(n)	“Permitted Lien” means (i) the Assigned Interests(ii) any Lien for taxes not delinquent
or for taxes being diligently contested in good faith by Borrower by appropriate proceedings, provided appropriate reserves therefor
are established by Borrower; (iii) any mechanic’s, artisan’s, materialman’s, landlord’s, carrier’s
or other like Lien arising in the ordinary course of business with respect to obligations which are not due provided that, the
aggregate amount of such Liens does not at any time exceed Fifty Thousand Dollars ($50,000); (iv) any Lien arising out of a judgment,
order or award with respect to which Borrower shall in good faith be prosecuting diligently an appeal or proceeding for review
and with respect to which there shall be in effect a subsisting stay of execution pending such appeal or proceeding for review,
provided appropriate reserves therefor are established by Borrower; (v) any deposit of funds made in the ordinary course of business
to secure obligations of Borrower under worker’s compensation laws, unemployment insurance laws or similar legislation, to
secure public or statutory obligations of Borrower, to secure surety, appeal or customs bonds in proceedings to which Borrower
is a party, or to secure Borrower’s performance in connection with bids, tenders, contracts (other than contracts for the
payment of money), leases or subleases made by Borrower in the

 

 

 

 

 

 

    	-12- 

    	 

    

ordinary course of business;
and (vi) any other Lien specifically consented to by Lender in writing.

		(o)	“Person” means an individual, corporation association, partnership, limited liability
company, joint venture, trust, government, agency department or any other entity.

		(p)	“Promissory Note” has the meaning set forth in Section 1(c).

		(q)	“Transaction Documents” has the meaning set forth in the JDA.

		(r)	“Work” has the meaning set forth in the Recitals.

		(s)	“Workover Wellbore” has the meaning set forth in the JDA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	-13- 

    	 

    

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

	EMPIRE TEXAS LLC	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By/s/ Michael R. Morrissett                                 	 	 	By/s/ Thomas W. Pritchard                    	 	 
	Name: Michael R. Morrissett	 	 	Name:
Thomas W. Pritchard	 	 
	Title: President	 	 	Title: CEO	 	 

 

 

 

	PETROLEUM INDEPENDENT & EXPLORATION LLC	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By/s/ Phil E.
    Mulacek                                 	 	 		 	 
	Phil E. Mulacek

	 	 		 	 
	Manager

	 	 		 	 

 

 

 

 

-14-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]