Document:

EQUITY
PURCHASE AND RETIREMENT AGREEMENT

 

THIS
EQUITY PURCHASE AND RETIREMENT AGREEMENT (this “Agreement”) is made effective as of March 31, 2017 (“Effective
Date”), by and among Timothy S. Krieger, an individual and resident of the state of Minnesota (the “Seller”),
and Aspirity Holdings LLC, a Minnesota limited liability company (the “Company”). Collectively, the Seller
and the Company shall be referred to as the “Parties” and each individually as a “Party”.

 

BACKGROUND:

 

The
Seller is the owner of Four Hundred and Ninety-Six (496) Series A Preferred Units (the “Series A Units”)
in the Company and desires to sell, and the Company desires to purchase and retire, all of the Series A Units in exchange
for the consideration and on the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the above, and the terms and covenants set forth below, the Parties agree as follows:

 

AGREEMENT:

 

1. Re-Purchase
and Retirement of the Series A Units; Purchase Price and Payment Terms. At the Closing, the Seller shall sell to the
Company, and the Company shall purchase from the Seller and promptly retire, all of the Series A Units. The purchase price
for the purchase of the Series A Units shall be an amount equal to Two Million, Seven Hundred Forty Five Thousand Dollars and
No Cents ($2,745,000.00) (the “Purchase Price”). The Purchase Price shall paid by the Company to the
Seller pursuant to a Subordinated Promissory Note in the form attached hereto as Exhibit A (the
“Note”), bearing simple interest at the annual rate of twenty and 00/100 percent (20.00%).
 

 

2.
Closing.The closing of the transactions contemplated by this Agreement (the “Closing”) will take place
as of the close of business on the Effective Date. If the effective date falls on a weekend or holiday, then the Closing shall
take place as of the open of business on the next business day following the Effective Date. 

 

3. Seller’s
Representations and Warranties.The Seller represents and warrants to the Company that as of the Closing: 

 

(a)
Title & Authority. The Seller has the full power and authority to enter into, execute and deliver this Agreement and
to consummate the transactions contemplated hereby and any instruments or agreements required herein. This Agreement has been
duly and validly executed and delivered by the Seller and constitutes a valid and binding obligation of the Seller, enforceable
against the Seller in accordance with its terms. The Seller has the absolute and unrestricted right, power and authority to sell
to the Company all right, title and interest in and to the Series A Units and no consent or approval of any other party is required
as a condition to the effective transfer of the Series A Units to the Company. The Seller is the record holder of the Series A
Units and has good and marketable legal and beneficial title to the Series A Units and such Series A Units are owned by the Seller
free and clear of all liens, encumbrances, restrictions and claims of every kind (collectively, “Encumbrances”)
and will be transferred to the Company free and clear of all Encumbrances.

 

(b) Sufficiency
of Purchase Price. The Seller hereby warrants that the Purchase Price was negotiated by the Parties in a fair and
prudent manner and hereby waives any claim that any alternate valuation methodology for determining the Purchase Price should
have been applied. The Seller represents and warrants that the Purchase Price is a fair, equitable, and just valuation for
the Series A Units and the Seller is accepting the Note as full payment for any and all amounts due to the Seller and for the
purchase of the Series A Units. The Seller has access to all of the records, financial information and other related
agreements and documents of the Company and its business and has engaged in such examination of said records, information,
agreements and documents as the Seller has deemed necessary and appropriate under the circumstances. In conjunction
therewith, the Seller represents that it does not require or desire any additional information or data pertaining to the
Company and its business and/or the Series A Units. The Seller represents that the Purchase Price is a fair reflection of the
financial condition of the Company.

 

     

     

    

 

(c) Subordinated
Promissory Note. The Seller has not sold, assigned or otherwise transferred the Note and the Note, when issued, will be
free and clear of all Encumbrances that could otherwise be imposed by the Seller, except as otherwise set forth in the
Company’s Senior Debt (as such term is defined in the Note).

 

(d) Legal
and Financial Representation. The Seller has sought or obtained separate legal and financial representation with respect
to the transaction contemplated in this Agreement and expressly disclaims the representation of the Company’s outside
legal counsel with respect to the transaction contemplated in this Agreement.

 

4. Company’s
Representations and Warranties.The Company represents and warrants to the Seller that as of the date hereof and as of
the Closing: (a) the Company is duly organized, validly existing and in good standing under the laws of the State of
Minnesota and has all requisite limited liability company power and authority to own, lease and operate its properties and
assets and to carry on its business as is now being conducted; (b) the Company has the full power and authority to enter
into, execute and deliver this Agreement and to consummate the transactions contemplated hereby and any instruments or
agreements required herein; and (c) this Agreement has been duly and validly executed and delivered by the Company and
constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its
terms. 

 

5. Survival
of Representations and Warranties. All representations and warranties of the Parties shall survive the
Closing. 

 

6. Delivery
of Documents Notices. At the Closing, the Seller and the Company shall execute and/or deliver to the other Party, as
applicable, the following documents, instruments and agreements, together with such other documents, instruments and
agreements as the other Party may reasonably request to consummate the purchase and sale contemplated hereby: (a) The Company
shall issue and deliver to the Seller a duly executed copy of the Note, (b) the Seller shall deliver to the Company a duly
executed Assignment Separate from Certificate in the form attached hereto as Exhibit B and any original certificate
representing the Series A Units; (c) each Party shall deliver to the other Party a duly executed copy of this Agreement. All
notices and other communications pursuant to this Agreement shall be governed in all respects by the notice provisions set
forth in the Note.  

 

7. Indemnification. The
Seller, as one Party, and the Company, as the other Party, do hereby agree to, and shall immediately upon demand,
defend, indemnify and hold harmless each other from, against and in respect of: (a) any liabilities, penalties, interest,
costs, expenses or other damages or deficiencies resulting from any misrepresentation, breach of warranty or non-fulfillment
of any agreement or covenant on the part of such Party under this Agreement; and (b) all actions, suits, proceedings,
demands, assessments, judgments, costs and expenses (including, without limitation, reasonable attorneys’ fees)
incident to any of the foregoing. The indemnifying party shall reimburse the indemnified party, on demand, for any payment
made by the indemnified party at any time with respect to any liability, obligation or a claim to which the foregoing
indemnity relates.

 

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8.
Waiver, Modification or Amendment. No waiver, modification or amendment of any term, condition or provision of this Agreement
shall be valid or of any effect unless made in writing, signed by the Party to be bound or its duly authorized representative
and specifying with particularity the nature and extent of such waiver, modification or amendment. Any waiver by any Party of
any default of the other shall not effect, or impair any right arising from, any subsequent default. Nothing herein shall limit
the rights and remedies of the Parties under and pursuant to this Agreement, except as hereinbefore set forth. 

 

9. Successors
and Assigns This Agreement is binding upon and shall inure to the benefit of the Parties hereto and their respective
heirs, personal representatives, successors, transferees and assigns. The Seller shall not be entitled to assign his rights
and obligations under this Agreement to any person or entity unless the Company’s prior written consent has been
obtained. The Company may freely assign this Agreement to an affiliate of the Company. 

 

10.
Applicable Law, Forum and Venue This Agreement will be interpreted and governed under the laws of the State of Minnesota,
without regard to conflict of laws principles. Any action or proceeding against any of the Parties relating in any way to this
Agreement or the subject matter of this Agreement will be brought and enforced exclusively in the competent state or federal courts
of Minnesota, and the Parties to this Agreement consent to the exclusive jurisdiction of such courts in respect of such action
or proceeding. The Parties waive their right to a trial by jury for any action or proceeding seeking to enforce any provision
of, or based on any right arising out of, this Agreement, whether grounded in tort, contract or otherwise. 

 

11. Entire
Agreement; Counterparts. This Agreement contains the entire agreement among the Parties with respect to its subject matter
and incorporates any and all prior oral or written agreements, representations, discussions or understandings relating thereto.
All prior agreements with respect to the subject matter hereof and/or the transactions contemplated hereby are hereby terminated
and superseded. This Agreement may be amended, supplemented or modified only by written instrument signed by all Parties hereto.
This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which shall
constitute one and the same instrument. 

 

12. Construction.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no
presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement.

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

 

	COMPANY:	 	SELLER:
	 	 	 
	ASPIRITY
    HOLDINGS LLC,	 	 
	a
    Minnesota limited liability company	 	 

 

	Signed:	/s/ Wiley H. Sharp III	 	/s/ Timothy S. Krieger
	Name:	Wiley H. Sharp III	 	Timothy S. Krieger
	Title:	Chief Financial Officer	 	 

 

    	-3- 

     

    

 

EXHIBIT
A

 

Form
of Subordinated Promissory Note

 

(See
Attached)

 

    	A-1

     

    

 

EXHIBIT
B

 

Assignment
Separate from Certificate

 

For
value received, the undersigned, Timothy S. Krieger, hereby assigns and transfers to Aspirity Holdings, LLC, a Minnesota limited
liability company (the “Company”), for good and valuable consideration, receipt of which is hereby acknowledged,
Four Hundred and Ninety-Six (496) Series A Preferred Series A Units (the “Series A Units”) in the Company,
effective as of the date written below, standing in his name on the books of the Company, and does hereby irrevocably constitute
and appoint Winthrop & Weinstine, P.A., as attorney to transfer such Series A Units on the books of the Company with full
power of substitution in the premises.

 

The undersigned
has signed this document, effective the day and year written below and executed on the date set forth below.

 

	 	/s/ Timothy S. Krieger
	 	Name:	Timothy
    S. Krieger
	 	Date:	March
    31, 2017

 

    	B-1SUBORDINATED
PROMISSORY NOTE

 

Minneapolis,
MN

March 31,
2017

 

$2,745,000.00

 

As payment
in full for the purchase from Timothy S. Krieger, an individual and resident of Minnesota (the “Payee”) of 496 Series
A Preferred Units issued by Aspirity Holdings, LLC, a Minnesota limited liability company (the “Company”) on July
18, 2013, the Company hereby promises to pay to the order of the Payee, his successors, or assigns, as the case may be, at such
place as may be specified in writing by such person, the principal sum of Two Million, Seven Hundred Forty Five Thousand Dollars
and No Cents ($2,745,000.00). together with interest accrued on the unpaid principal balance from the date of this Note The unpaid
principal balance and all accrued interest shall be due and payable on December 31, 2019 (the “Maturity Date”). Simple
interest shall accrue on the unpaid principal balance at the annual rate of Twenty Percent (20.00%).

 

Payments.
Before the Maturity Date, the Company may make payments of principal and accrued interest without penalty, with any payment being
applied first to outstanding interest.

 

Subordination.
Payment of the Note will be subordinated to senior indebtedness of the Company as follows:

 

	i)	The
    indebtedness evidenced by the Note, and any interest thereon, is subordinated in right of payment to the Company’s senior
    debt. ‘‘Senior debt’’ means (a) all secured, senior indebtedness, of the Company, whether outstanding
    on the date hereof or incurred thereafter, provided such indebtedness is specifically designated as being senior debt in its
    defining instruments and (b) the Company’s Renewable Unsecured Subordinated Notes currently issued or issued hereafter
    pursuant to a registration statement declared effective by the Securities and Exchange Commission. Any documents, agreements
    or instruments evidencing or relating to any senior debt may be amended, restated, supplemented or renewed from time to time
    without requiring any notice to or consent of the Payee.
	 	 
	ii)	There is no limitation
    on the amount of senior debt that may be incurred.
	 	 
	iii)	The Note is not
    guaranteed by any subsidiaries, affiliates, or control persons of the Company. Accordingly, in the event of a liquidation
    or dissolution of a subsidiary, creditors of that subsidiary will be paid in full, or provision for such payment will be made,
    from the assets of that subsidiary prior to distributing any remaining assets to the owner of that subsidiary. Therefore,
    in the event of liquidation or dissolution of a subsidiary, no assets of that subsidiary may be used to make payment to the
    Payee until the creditors of that subsidiary are paid in full from the assets of that subsidiary.
	 	 
	iv)	In the event of
    any liquidation, dissolution or any other winding up of the Company or a subsidiary, or of any receivership, insolvency, bankruptcy,
    readjustment, reorganization or similar proceeding under the U.S. Bankruptcy Code or any other applicable federal or state
    law relating to bankruptcy or insolvency, or during the continuation of any event of default on the senior debt, no payment
    may be made on the Note until all senior debt has been paid in full or provision for such payment has been made to the satisfaction
    of the senior debt holders. If any distribution is nonetheless made to the Payee, the money or property distributed must be
    paid over to the holders of the senior debt to the extent necessary to pay the senior debt in full.

 

    	1

     

    

 

	v)	The
    Company will not make any payment, direct or indirect, whether of interest, principal, on default, or otherwise, on the Note
    and any other indebtedness being subordinated to the payment of the Note, and the Payee will not have the right, directly
    or indirectly, to sue to enforce the Note if a default or event of default under any senior debt has occurred and is continuing,
    or if any default or event of default under any senior debt would result from such payment, in each case unless and until
    the default and event of default has been cured or waived by the holders of such senior debt.

 

Notices.
All notices, requests, demands, claims and other communications pursuant to this Note will be in writing and will be deemed duly
given two business days after such notice is sent by registered or certified mail, return receipt requested, postage prepaid and
addressed to the intended recipient as set forth below:

 

	i)	If to Company:	Wiley H. Sharp III
	 	 	Chief Financial Officer
	 	 	Aspirity Holdings, LLC
	 	 	701 Xenia Avenue South, Suite 475
	 	 	Minneapolis MN 55416
	 	 	Email: wileysharp@aspirityholdings.com
	 	 	 
	ii)	If to Payee:	Timothy S. Krieger
	 	 	16233 Kenyon Avenue
	 	 	Lakeville, MN 55044
	 	 	Email: tkrieger@kriegerent.com

 

Any Party may
send any notice, request, demand, claim or other communication to the intended recipient at the address set forth above using
any other means (including personal delivery, overnight courier, messenger service, telecopy, telex, ordinary mail or electronic
mail). Such notice, request, demand, claim or other communication will be deemed to have been duly given on the day of personal
delivery or the day after sent via reputable overnight courier. Otherwise, notice will only be deemed to have been received when
it actually is received by the intended recipient. Any Party may change the address to which notices, requests, demands, claims
and other communications hereunder are to be delivered by giving the other Parties notice in the manner set forth in this Agreement.

 

Invalidity
of Particular Provisions. The Company and Payee agree that the unenforceability or invalidity of any provision or provisions
of this Note will not render any other provision or provisions herein contained unenforceable or invalid.

 

Successors
or Assigns. The Company and Payee agree that all of the terms of this Note will be binding on their respective successors
and assigns, and that the term “Company” and the term “Payee” as used herein will be deemed to include,
for all purposes, their respective designees, successors, assigns, heirs, executors and administrators.

 

Governing
Law; Choice of Venue, Waiver of Jury Trial. This Note will be interpreted and governed under the laws of the State of Minnesota,
without regard to conflict of laws principles. Any action or proceeding against any of the Parties relating in any way to this
Note or the subject matter of this Note will be brought and enforced exclusively in the competent state or federal courts of Minnesota,
and the parties to this Agreement consent to the exclusive jurisdiction of such courts in respect of such action or proceeding.
The Parties waive their right to a trial by jury for any action or proceeding seeking to enforce any provision of, or based on
any right arising out of, this Agreement, whether grounded in tort, contract or otherwise.

 

Waiver.
Waiver of any default hereunder by the Payee will not be a waiver of any other default or of a same default on a later occasion.
No delay or failure by the Payee to exercise any right or remedy will be a waiver of such right or remedy and no single or partial
exercise by the Payee of any right or remedy will preclude other or further exercise thereof or the exercise of any other right
or remedy at any other time.

 

    	2

     

    

 

Waiver of
Presentment. The Company waives presentment, dishonor, protest, demand, diligence, notice of protest, notice of demand, notice
of dishonor, notice of nonpayment, and any other notice of any kind otherwise required by law in connection with the delivery,
acceptance, performance, default, enforcement or collection of this Note and expressly agrees that this Note, or any payment hereunder,
may be extended or subordinated (by forbearance or otherwise) at any time, without in any way affecting the liability of the Company.

 

Collection
Costs. The Company agrees to pay on demand all costs of collecting or enforcing payment under this Note, including reasonable
attorneys’ fees and legal expenses, whether suit be brought or not, and whether through courts of original jurisdiction,
courts of appellate jurisdiction, or bankruptcy courts, or through other legal proceedings.

 

Amendment.
This Note may not be amended, converted, or modified, nor will any waiver of any provision hereof be effective, except by an instrument
in writing signed by the party against whom enforcement of any amendment, conversion, modification, or waiver is sought.

 

Right of
Offset. Payee may offset the unpaid principal balance and interest accrued thereon against any obligation of the Payee or
Krieger Enterprises, LLC so long as such entity is controlled by Payee.

 

IN WITNESS
WHEREOF, the Company has executed this promissory note as of the date first written above.

 

THE COMPANY:

 

	ASPIRITY HOLDINGS, LLC	 
	 	 
	/s/ Wiley H. Sharp III	 
	Wiley H. Sharp III, Chief Financial Officer	 

 

    	3

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