Document:

Unassociated Document

    
      

    

    Exhibit
      10.6

    

    

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”)
      OR
      UNDER THE SECURITIES LAWS OF ANY STATE OR JURISDICTION AND MAY NOT BE SOLD,
      OFFERED FOR SALE OR OTHERWISE TRANSFERRED UNLESS REGISTERED OR QUALIFIED UNDER
      THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS THE COMPANY RECEIVES
      AN
      OPINION, IN REASONABLY ACCEPTABLE FORM AND SCOPE, OF COUNSEL REASONABLY
      SATISFACTORY TO THE COMPANY, THAT REGISTRATION, QUALIFICATION OR OTHER SUCH
      ACTIONS ARE NOT REQUIRED UNDER ANY SUCH LAWS. 

    

    LAPOLLA
      INDUSTRIES, INC.

     

    WARRANT
      TO PURCHASE SHARES OF COMMON STOCK

    (Expires
      February 29, 2012)

    

    
      	
              Warrant
                No. CV-3

            	
              500,000
                Shares of Common Stock

            

    

    

    

    FOR
      VALUE
      RECEIVED, subject to the provisions set forth below, the undersigned, LAPOLLA
      INDUSTRIES, INC., a Delaware corporation (the “Company”),
      hereby certifies that ComVest Capital, LLC, a Delaware limited liability
      company, or its registered assigns (the “Holder”),
      is
      entitled to purchase from the Company up to five hundred thousand (500,000)
      fully paid and nonassessable shares (the “Warrant
      Shares”)
      of the
      Company’s common stock, $.01 par value per share (the “Common
      Shares”),
      for
      cash at a price of $0.93 per share (the “Exercise Price”) at any time and from
      time to time from and after the date hereof and until 5:00 p.m. (Central time)
      on February 29, 2012 (the “Expiration
      Date”)
      upon
      surrender to the Company at its principal office (or at such other location
      as
      the Company may advise the Holder in writing) of this Warrant properly endorsed
      with the Notice of Exercise attached hereto duly filled in and signed and,
      if
      applicable, upon payment in cash or by check of the aggregate Exercise Price
      for
      the number of shares for which this Warrant is being exercised determined in
      accordance with the provisions hereof. The Exercise Price and the number of
      shares purchasable hereunder are subject to adjustment as provided in
      Section 3 of this Warrant.

    

    
      	 	
              1.

            	
              Exercise
                of Warrant.

            

    

    

    1.1.   Exercise. 
      This
      Warrant shall be exercisable from the date hereof until the Expiration Date,
      and
      this Warrant shall expire on the Expiration Date. Upon exercise of this Warrant,
      the Exercise Price shall be payable in cash or by check. This Warrant may be
      exercised in whole or in part so long as any exercise in part hereof would
      not
      involve the issuance of fractional Warrant Shares. If exercised in part, the
      Company shall deliver to the Holder a new Warrant, identical in form to this
      Warrant, in the name of the Holder, evidencing the right to purchase the number
      of Warrant Shares as to which this Warrant has not been exercised, which new
      Warrant shall be signed by an appropriate officer of the Company. The term
      “Warrant” as used herein shall include any subsequent Warrant issued as provided
      herein.

    

    1.2.   Exercise
      Procedures; Delivery of Certificate.  Upon
      surrender of this Warrant with a duly executed Notice of Exercise in the form
      of
Annex A
      attached
      hereto, together with payment of the Exercise Price for the Warrant Shares
      purchased, at the Company’s principal executive offices (the “Designated
      Office”),
      the
      Holder shall be entitled to receive a certificate or certificates for the
      Warrant Shares so purchased. The Company agrees that the Warrant Shares shall
      be
      deemed to have been issued to the Holder as of the close of business on the
      date
      on which this Warrant shall have been surrendered together with the Notice
      of
      Exercise and payment for such Warrant Shares.

    

    1.3.   Cashless
      Exercise.  In
      connection with any exercise of this Warrant, in lieu of payment of the Exercise
      Price, the Holder may exercise this Warrant, in whole or in part, by
      presentation and surrender of this Warrant to the Company, together with a
      Cashless Exercise Form in the form attached hereto as Annex B
      (or a
      reasonable facsimile thereof) duly executed (a “Cashless
      Exercise”).
      Acceptance by the Company of such presentation and surrender shall be deemed
      a
      waiver of the Holder's obligation to pay all or any portion of the Exercise
      Price, as the case may be. In the event of a Cashless Exercise, the Holder
      shall
      exchange this Warrant for that number of Common Shares determined by multiplying
      the number of Common Shares for which this Warrant is being exercised by a
      fraction, (a) the numerator of which shall be the difference between (i) the
      then current market price per Common Share, and (ii) the Exercise Price, and
      (b)
      the denominator of which shall be the then current market price per Common
      Share. For purposes of any computation under this Section l.3, the then current
      market price per Common Share at any date shall be deemed to be the average
      of
      the daily trading price for the ten (10) consecutive trading days immediately
      prior to the Cashless Exercise. If, during such measuring period, there shall
      occur any event which gives rise to any adjustment of the Exercise Price, then
      a
      corresponding adjustment shall be made with respect to the closing prices of
      the
      Common Shares for the days prior to the Effective Date of such adjustment event.
      As used herein, the term “trading price” on any relevant date means (A) if the
      Common Stock is listed for trading on the New York Stock Exchange, the American
      Stock Exchange, the NASDAQ National Market, or the NASDAQ Capital Market, the
      closing sale price (or, if no closing sale price is reported, the last reported
      sale price) of the Common Stock (regular way), or (B) if the Common Stock is
      not
      so listed but quotations for the Common Stock are reported on the OTC Bulletin
      Board, the most recent closing price as reported on the OTC Bulletin
      Board.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      	 	
              2.

            	
              Transfer;
                Issuance of Stock Certificates; Restrictive
                Legends

            

    

    

    

    2.1.   Transfer. 
      Each
      transfer of this Warrant and all rights hereunder, in whole or in part, shall
      be
      registered on the books of the Company to be maintained for such purpose, upon
      surrender of this Warrant at the Designated Office, together with a written
      assignment of this Warrant in the form of Annex C
      attached
      hereto duly executed by the Holder or its agent or attorney. Upon such surrender
      and delivery, the Company shall execute and deliver a new Warrant or Warrants
      in
      the name of the assignee or assignees and in the denominations specified in
      such
      instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, if any. A Warrant may
      be
      exercised by the new Holder for the purchase of Warrant Shares without having
      a
      new Warrant issued. Prior to due presentment for registration of transfer
      thereof, the Company may deem and treat the registered Holder of this Warrant
      as
      the absolute owner hereof (notwithstanding any notations of ownership or writing
      thereon made by anyone other than a duly authorized officer of the Company)
      for
      all purposes and shall not be affected by any notice to the contrary. All
      Warrants issued upon any assignment of Warrants shall be the valid obligations
      of the Company, evidencing the same rights and entitled to the same benefits
      as
      the Warrants surrendered upon such registration of transfer or
      exchange.

    

    2.2.   Stock
      Certificates.  Certificates
      for the Warrant Shares shall be delivered to the Holder within five (5) business
      days after the rights represented by this Warrant shall have been exercised
      pursuant to Section 1, and a new Warrant representing the right to purchase
      the
      Common Shares, if any, with respect to which this Warrant shall not then have
      been exercised shall also be issued to the Holder within such time. The issuance
      of certificates for Warrant Shares upon the exercise of this Warrant shall
      be
      made without charge to the Holder hereof including, without limitation, any
      documentary, stamp or similar tax that may be payable in respect thereof;
provided,
      however,
      that
      the Company shall not be required to pay any income tax to which the Holder
      hereof may be subject in connection with the issuance of this Warrant or the
      Warrant Shares.

    

    2.3.   Restrictive
      Legend.  Except
      as
      otherwise provided in this Section 2, each certificate for Warrant Shares
      initially issued upon the exercise of this Warrant and each certificate for
      Warrant Shares issued to any subsequent transferee of any such certificate,
      shall be stamped or otherwise imprinted with a legend in substantially the
      following form:

    

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
      UNDER SUCH ACT OR AN OPINION IN FORM AND FROM COUNSEL REASONABLY SATISFACTORY
      TO
      THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

    

    Notwithstanding
      the foregoing, the legend requirements of this Section 2.3 shall terminate
      as to
      any particular Warrant Shares when (i) such Warrant Shares are transferred
      pursuant to an effective resale registration statement, as contemplated in
      the
      Registration Rights Agreement between the Company and the Holder of even date
      herewith, or (ii) the Company shall have received from the Holder thereof
      an opinion of counsel in form and substance reasonably acceptable to the Company
      that such legend is not required in order to ensure compliance with the
      Securities Act. Whenever the restrictions imposed by this Section 2.3 shall
      terminate, the Holder or subsequent transferee, as the case may be, shall be
      entitled to receive from the Company without cost to such Holder or transferee
      a
      certificate for the Warrant Shares without such restrictive legend.

    

    
      	 	
              3.

            	
              Adjustment
                of Number of Shares; Exercise Price; Nature of Securities Issuable
                Upon
                Exercise of Warrants. 

            

    

    

    3.1.   Exercise
      Price; Adjustment of Number of Shares.  The
      Exercise Price and the number of shares purchasable hereunder shall be subject
      to adjustment from time to time as hereinafter provided; provided,
      however,
      that,
      notwithstanding the below, in no case shall the Exercise Price be reduced to
      below the par value per share of the class of stock for which this Warrant
      is
      exercisable at such time.

    

    3.2.   Adjustments
      Upon Distribution, Subdivision or Combination.  If
      the
      Company, at any time or from time to time after the issuance of this Warrant,
      shall (a) make a dividend or distribution on its Common Shares payable in
      Common Shares, (b) subdivide or reclassify the outstanding Common Shares
      into a greater number of shares, or (c) combine or reclassify the
      outstanding Common Shares into a smaller number of shares, the Exercise Price
      in
      effect at that time and the number of Warrant Shares into which the Warrant
      is
      exercisable at that time shall be proportionately adjusted effective as of
      the
      record date for the dividend or distribution or the effective date of the
      subdivision, combination or reclassification. 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    3.3.   Adjustment
      Upon Other Distributions.  If
      the
      Company, at any time or from time to time after the issuance of this Warrant,
      makes a distribution to the holders of Common Shares which is payable in
      securities of the Company other than Common Shares, then, in each such event,
      provision shall be made so that the Holder shall receive upon exercise of this
      Warrant, in addition to the number of Warrant Shares, the amount of such
      securities of the Company which would have been received if the portion of
      the
      Warrant so exercised had been exercised for Warrant Shares on the date of such
      event, subject to adjustments subsequent to the date of such event with respect
      to such distributed securities which shall be on terms as nearly equivalent
      as
      practicable to the adjustments provided in this Section 3 and all other
      adjustments under this Section 3.

    

    3.4.   Adjustment
      Upon Merger, Consolidation or Exchange.  If
      at any
      time or from time to time after the issuance of this Warrant there occurs any
      merger, consolidation, arrangement or statutory share exchange of the Company
      with or into any other person or company, then, in each such event, provision
      shall be made so that the Holder shall receive upon exercise of this Warrant
      the
      kind and amount of shares and other securities and property (including cash)
      which would have been received upon such merger, consolidation, arrangement
      or
      statutory share exchange by the Holder if the portion of this Warrant so
      exercised had been exercised for Warrant Shares immediately prior to such
      merger, consolidation, arrangement or statutory share exchange, subject to
      adjustments for events subsequent to the effective date of such merger,
      consolidation, arrangement or statutory share exchange with respect to such
      shares and other securities which shall be on terms as nearly equivalent as
      practicable to the adjustments provided in this Section 3 and all other
      adjustments under this Section 3.

    

    3.5.   Adjustments
      for Recapitalization or Reclassification.  If,
      at
      any time or from time to time after the issuance of this Warrant, the Warrant
      Shares issuable upon exercise of this Warrant are changed into the same or
      a
      different number of securities of any class of the Company, whether by
      recapitalization, reclassification or otherwise (other than a merger,
      consolidation, arrangement or statutory share exchange provided for elsewhere
      in
      this Section 3), then, in each such event, provision shall be made so that
      the Holder shall receive upon exercise of this Warrant the kind and amount
      of
      securities or other property which would have been received in connection with
      such recapitalization, reclassification or other change by the Holder if the
      portion of this Warrant so exercised had been exercised immediately prior to
      such recapitalization, reclassification or change, subject to adjustments for
      events subsequent to the effective date of such recapitalization,
      reclassification or other change with respect to such securities which shall
      be
      on terms as nearly equivalent as practicable to the adjustments provided in
      this
      Section 3 and all other adjustments under this Section 3.

    

    3.6.   Extraordinary
      Dividends or Distributions.  If,
      at
      any time or from time to time after the issuance of this Warrant, the Company
      shall declare a dividend or any other distribution upon the Common Shares
      payable otherwise than out of current earnings, retained earnings or earned
      surplus and otherwise than in Common Shares, then the Exercise Price in effect
      immediately prior to such declaration shall be reduced by an amount equal,
      in
      the case of a dividend or distribution in cash, to the amount thereof payable
      per Common Share or, in the case of any other dividend or distribution, to
      the
      value thereof per Common Share at the time such dividend or distribution was
      declared, as determined by the Board of Directors of the Company in good faith.
      Such reductions shall take effect as of the date on which a record is taken
      for
      the purposes of the subject dividend or distribution, or, if a record is not
      taken, the date as of which the holders of record of Common Shares entitled
      to
      such dividend or distribution are to be determined.

    

    
      	 	
              3.7

            	
              Adjustment
                Upon Certain Issuances of Common
                Stock.

            

    

    

    (a)   If
      the
      Company, at any time or from time to time, issues or sells any Additional Shares
      of Common Stock (as defined below), other than as provided in the foregoing
      subsections of this Section 3, for a price per share (which, in the case of
      options, warrants, convertible securities or other rights, includes the amounts
      paid therefor plus the exercise price, conversion price or other such amounts
      payable thereunder) that is less than the
      Exercise Price then in effect, then and in each such case, the then applicable
      Exercise Price shall automatically be reduced as of the opening of business
      on
      the date of such issue or sale, to a price determined by multiplying the
      Exercise Price then in effect by a fraction (i) the numerator of which
      shall be (A) the number of Common Shares deemed outstanding (as determined
      below) immediately prior to such issue or sale, plus (B) the number of
      Common Shares which the aggregate consideration received by the Company for
      the
      total number of Additional Shares of Common Stock so issued would purchase
      at
      such Exercise Price, and (ii) the denominator of which shall be the number
      of Common Shares deemed outstanding (as defined below) immediately prior to
      such
      issue or sale plus the total number of Additional Shares of Common Stock so
      issued; provided,
      however,
      that
      upon the expiration or other termination of options, warrants or other rights
      to
      purchase or acquire Common Shares which triggered any adjustment under this
      Section 3.7, and upon the expiration or termination of the right to convert
      or
      exchange convertible or exchangeable securities (whether by reason of redemption
      or otherwise) which triggered any adjustment under this Section 3.7, if any
      thereof shall not have been exercised, converted or exchanged, as applicable,
      the number of Common Shares deemed to be outstanding pursuant to this
      Section 3.7(a) shall be reduced by the number of shares as to which
      options, warrants, and rights to purchase or acquire Common Shares shall have
      expired or terminated unexercised, and as to which conversion or exchange rights
      shall have expired or terminated unexercised, and such number of shares shall
      no
      longer be deemed to be outstanding; and the Exercise Price then in effect shall
      forthwith be readjusted and thereafter be the price that it would have been
      had
      adjustment been made on the basis of the issuance only of the Common Shares
      actually issued. For purposes of the preceding sentence, the number of Common
      Shares deemed to be outstanding as of a given date shall be the sum of
      (x) the number of Common Shares actually outstanding, (y) the number
      of Common Shares for which this Warrant could be exercised on the day
      immediately preceding the given date, and (z) the number of Common Shares
      which could be obtained through the exercise or conversion of all other rights,
      options and convertible securities outstanding on the day immediately preceding
      the given date. “Additional
      Shares of Common Stock”
shall
      mean all Common Shares, and all options, warrants, convertible securities or
      other rights to purchase or acquire Common Shares, issued by the Company other
      than (i) Common Shares issued pursuant to the exercise of options, warrants
      or convertible securities outstanding on the date hereof (including, without
      limitation, the Term Note and all of the Warrants issued pursuant to the
      Revolving Credit and Term Loan Agreement dated as of February 21, 2007 by and
      between ComVest Capital, LLC and the Company), or hereafter issued from time
      to
      time pursuant to and in accordance with stock purchase or stock option plans
      as
      in effect on the date hereof, and (ii) Common Shares and/or options, warrants
      or
      other Common Share purchase rights for up to an aggregate of 900,000 Common
      Shares (such number to be subject to adjustment in accordance with Section
      3.2
      above), where such options, warrants or other rights are issued both (A) with
      exercise prices per Common Share at the then-current fair market value of a
      Common Share, as determined in good faith by the Board of Directors of the
      Company or the Compensation Committee thereof, and (B) to employees, officers
      or
      directors of, or consultants to, the Company or any subsidiary pursuant to
      stock
      purchase or stock option plans or other arrangements that are approved by the
      Company’s Board of Directors or the Compensation Committee thereof, and by the
      Company’s stockholders.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (b)   In
      the
      event that the exercise price, conversion price, purchase price or other price
      at which Common Shares are purchasable pursuant to any options, warrants,
      convertible securities or other rights to purchase or acquire Common Shares
      is
      reduced at any time or from time to time (other than under or by reason of
      provisions designed to protect against dilution), then, upon such reduction
      becoming effective, the Exercise Price then in effect hereunder shall forthwith
      be decreased to such Exercise Price as would have been obtained had the
      adjustments made and required under this Section 3.7 upon the issuance of such
      options, warrants, convertible securities or other rights been made upon the
      basis of (and the total consideration received therefor) (i) the issuance of
      the
      number of Common Shares theretofore actually delivered upon the exercise,
      conversion or exchange of such options, warrants, convertible securities or
      other rights, (ii) the issuance of all of the Common Shares and all other
      options, warrants, convertible securities and other rights to purchase or
      acquire Common Shares issued after the issuance of the modified options,
      warrants, convertible securities or other rights, and (iii) the original
      issuance at the time of the reduction of any such options, warrants, convertible
      securities or other rights then still outstanding.

    

    (c)   In
      no
      event shall an adjustment under this Section 3.7 be made if it would result
      in an increase in the then applicable Exercise Price.

    

    3.8.   Certificate
      of Adjustment.  Whenever
      the Exercise Price and/or the number of Warrant Shares receivable upon exercise
      of this Warrant is adjusted, the Company shall promptly deliver to the Holder
      a
      certificate of adjustment, setting forth the Exercise Price and/or Warrant
      Shares issuable after adjustment, a brief statement of the facts requiring
      the
      adjustment and the computation by which the adjustment was made. The certificate
      of adjustment shall be prima facie evidence of the correctness of the
      adjustment.

    

    3.9.   Successive
      Adjustments.  The
      provisions of this Section 3 shall be applicable successively to each event
      described herein which may occur subsequent to the issuance of this Warrant
      and
      prior to the exercise in full of this Warrant.

    

    4.   Registration;
      Exchange and Replacement of Warrant; Reservation of Shares. 
The
      Company shall keep at the Designated Office a register in which the Company
      shall provide for the registration, transfer and exchange of this Warrant.
      The
      Company shall not at any time, except upon the dissolution, liquidation or
      winding-up of the Company, close such register so as to result in preventing
      or
      delaying the exercise or transfer of this Warrant.

    

    The
      Company may deem and treat the person in whose name this Warrant is registered
      as the Holder and owner hereof for all purposes and shall not be affected by
      any
      notice to the contrary, until presentation of this Warrant for registration
      or
      transfer as provided in this Section 4.

    

    Upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft, destruction or mutilation of this Warrant and (in case of loss, theft
      or
      destruction) of the Holder’s indemnity in form satisfactory to the Company, and
      (in the case of mutilation) upon surrender and cancellation of this Warrant,
      the
      Company will (in the absence of notice to the Company that the Warrant has
      been
      acquired by a bona fide purchaser) make and deliver a new Warrant of like tenor
      in lieu of this Warrant, without requiring the posting of any bond or the giving
      of any security.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    The
      Company shall at all times reserve and keep available out of its authorized
      shares of capital stock, solely for the purpose of issuance upon the exercise
      of
      this Warrant, such number of Common Shares as shall be issuable upon the
      exercise hereof. The Company covenants and agrees that, upon exercise of this
      Warrant and payment of the Exercise Price therefor, if applicable, all Warrant
      Shares issuable upon such exercise shall be duly and validly authorized and
      issued, fully paid and non-assessable.

    

    5.   Investment
      Representations.  The
      Holder, by accepting this Warrant, covenants and agrees that, at the time of
      exercise of this Warrant, if the Warrant Shares shall not then be the subject
      of
      an effective registration statement under the Act, the securities acquired
      by
      the Holder upon exercise hereof are for the account of the Holder or are being
      acquired for its own account for investment and are not acquired with a view
      to,
      or for sale in connection with, any distribution thereof (or any portion
      thereof) and with no present intention (at such time) of offering and
      distributing such securities (or any portion thereof), except in compliance
      with
      applicable federal and state securities laws.

    

    6.   Fractional
      Warrants and Fractional Shares.  If
      the
      number of Warrant Shares purchasable upon the exercise of this Warrant is
      adjusted pursuant to Section 3 hereof, the Company shall nevertheless not be
      required to issue fractions of shares upon exercise of this Warrant or
      otherwise, or to distribute certificates that evidence fractional shares. With
      respect to any fraction of a share called for upon any exercise hereof, the
      Company shall pay to the Holder an amount in cash equal to such fraction
      multiplied by the current market value of a Common Share (determined in
      accordance with the last sentence of Section 1.3).

    

    7.   Warrant
      Holders Not Deemed Stockholders.  No
      Holder
      of this Warrant shall, as such, be entitled to vote or to receive dividends
      or
      be deemed the holder of Warrant Shares that may at any time be issuable upon
      exercise of this Warrant, nor shall anything contained herein be construed
      to
      confer upon the Holder of this Warrant, as such, any of the rights of a
      stockholder of the Company or any right to vote for the election of directors
      or
      upon any matter submitted to stockholders at any meeting thereof, or to give
      or
      withhold consent to any corporate action (whether upon any recapitalization,
      issue or reclassification of stock, change of par value or change of stock
      to no
      par value, consolidation, merger or conveyance or otherwise), or to receive
      notice of meetings, or subscription rights, until such Holder shall have
      exercised this Warrant and been issued Warrant Shares or deemed to have been
      issued Warrant Shares in accordance with the provisions hereof.

    

    8.   Notices. 
      Any
      notice which is required to be given by this Warrant must be in writing, and
      shall be given or served, unless otherwise expressly provided herein, by
      depositing the same in the United States Mail, postpaid and certified and
      addressed to the party to be notified, with return receipt requested, or by
      delivering the same by courier or in person to such party (or, if the party
      or
      parties to be notified be incorporated, to an officer of such party). Notice
      deposited in the mail, postpaid and certified with return receipt requested,
      shall be deemed received and effective upon the deposit in a proper United
      States depository. Notice given in any other manner shall be effective only
      if
      and when received by the party to be notified. For the purposes of notice,
      the
      addresses of the parties for the receipt of notice hereunder are:

    

    If
      to
      the Company:

    LaPolla
      Industries, Inc.

    15402
      Vantage Parkway East, Suite 322

    Houston,
      Texas 77032

    Telephone:
      (281) 219-4700

    Fax:
      (281) 219-4710

    Attention:
      Michael T. Adams, EVP and Secretary

    

    If
      to
      the Holder:

    ComVest
      Capital, LLC

    One
      North
      Clematis, Suite 300

    West
      Palm
      Beach, Florida 33401

    Attention:
      Chief Financial Officer

    Telephone:
      (281) 468-0434

    e-mail:
      larryl@comvest.com

    

    Any
      party
      shall have the right from time to time, and at any time, to change its address
      for the receipt of notice by giving at least five (5) days’ prior written notice
      of the change of its address to the other parties in the manner specified
      herein. 

    

    9.   Successors. 
      All
      the
      covenants, agreements, representations and warranties contained in this Warrant
      shall bind the parties hereto and their respective heirs, executors,
      administrators, distributees, successors, assigns and
      transferees.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    10.   Law
      Governing.  THIS
      WARRANT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
      STATE
      OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES
      THEREOF.

    

    11.   Entire
      Agreement; Amendments and Waivers.  This
      Warrant, together with the Registration Rights Agreement of even date herewith
      executed by the Company for the benefit of the Holder, sets forth the entire
      understanding of the parties with respect to the subject matter hereof. The
      failure of any party to seek redress for the violation or to insist upon the
      strict performance of any term of this Warrant shall not constitute a waiver
      of
      such term and such party shall be entitled to enforce such term without regard
      to such forbearance. This Warrant may be amended, and any breach of or
      compliance with any covenant, agreement, warranty or representation may be
      waived, only if the Company has obtained the written consent or written waiver
      of the Holder, and then such consent or waiver shall be effective only in the
      specific instance and for the specific purpose for which given.

    

    12.   Severability;
      Headings.  If
      any
      term of this Warrant as applied to any person or to any circumstance is
      prohibited, void, invalid or unenforceable in any jurisdiction, such term shall,
      as to such jurisdiction, be ineffective to the extent of such prohibition or
      invalidity without in any way affecting any other term of this Warrant or
      affecting the validity or enforceability of this Warrant or of such provision
      in
      any other jurisdiction. The Section headings in this Warrant have been inserted
      for purposes of convenience only and shall have no substantive
      effect.

    

      IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as
      of
      the 21st
      day of
      February, 2007.

    

    
      	 	
              LAPOLLA
                INDUSTRIES, INC.

            
	 	 
	 	 
	 	 
	 	
              By:
                /s/ Michael T. Adams, EVP

            
	 	
              Name:
                Michael T. Adams

            
	 	
              Title:
                Executive Vice President

            

    

    

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

     

    ANNEX A

    

    NOTICE
      OF EXERCISE

    

    (To
      be executed upon partial or full

    exercise
      of the within Warrant)

    

    The
      undersigned hereby irrevocably elects to exercise the right to purchase
      __________ shares of Common Stock of LaPolla Industries, Inc. covered by the
      within Warrant according to the conditions hereof and herewith makes payment
      of
      the Exercise Price of such shares in full in the amount of
      $______________.

    

    
      	 	
              By: 
                

            	 
	 	 	
              (Signature
                of Registered Holder)

            

    

    

    

    
      	
              Dated:

            	 	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
      B

    

    CASHLESS
      EXERCISE FORM

    

    (To
      be executed upon partial or full

    exercise
      of Warrants pursuant to Section 1.3 of the Warrant)

    

    The
      undersigned hereby irrevocably elects to surrender ____________ shares of Common
      Stock of LaPolla Industries, Inc. purchasable under the Warrants for such shares
      of Common Stock issuable in exchange therefor pursuant to the Cashless Exercise
      provisions of the within Warrants, as provided for in Section 1.3 of such
      Warrant.

    

    Please
      issue a certificate or certificates for such Common Stock in the name of, and
      pay cash for fractional shares in the name of:

    

    (Please
      print name, address, and social security number/tax identification
      number:)

    

    

    

    and,
      if
      said number of shares of Common Stock shall not be all the shares of Common
      Stock purchasable thereunder, that a new Warrant for the balance remaining
      of
      the shares of Common Stock purchasable under the within Warrants be registered
      in the name of the undersigned Holder or its transferee as below indicated
      and
      delivered to the address stated below.

    

    
      	
              Dated:

            	 	 

    

    

    
      	
              Name
                of Warrant Holder

            	 
	
              or
                transferee:

            	 	 
	 	
              (Please
                print)

            	 

    

    

    
      	
              Address:

            	 
	 	 
	
              Signature:

            	 

    

    

    
      	
              NOTICE:

            	
              The
                signature on this form must correspond with the name as written upon
                the
                face of this Warrant in every particular, without alteration or
                enlargement or any change
                whatsoever.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX C

    

    ASSIGNMENT
      FORM

    

    FOR
      VALUE
      RECEIVED the undersigned registered owner of this Warrant hereby sells, assigns
      and transfers unto the Assignee named below all of the rights of the undersigned
      under this Warrant, with respect to the number of shares of Common Stock set
      forth below:

    

    

    
      	
              Name
                and Address of Assignee

            	
              No.
                of Shares of 

              Common
                Stock

            
	 	 
	 	 

    

    

    and
      does
      hereby irrevocably constitute and appoint _______________________
      attorney-in-fact to register such transfer onto the books of LaPolla Industries,
      Inc. maintained for the purpose, with full power of substitution in the
      premises.

    

    
      	
              Dated:
                

            	 	 	
              Print
                Name:

            	 
	 	 	 	 	 
	 	 	 	
              Signature:

            	 
	 	 	 	 	 
	 	 	 	
              Witness:

            	 

    

    

    

    
      	
              NOTICE:

            	
              The
                signature on this assignment must correspond with the name as written
                upon
                the face of this Warrant in every particular, without alteration
                or
                enlargement or any change
                whatsoever.Exhibit 10.1

    BAYTEX

    ENERGY
      LTD.

    

    December
      19, 2002

     

    979708
      Alberta Ltd.

    800,
      605
      - 5th Avenue S.W.

    Calgary,
      Alberta

    T2P
      3H5

    

    Attention:
      Vice President, Land

    

    Dear
      Sir
      or Madam:

     

    
 

    
      	Re:	Overriding Royalty
              Agreement
              Townships
                91 & 92 Ranges 12 & 13 W5M (the “Lands”)

              Sawn
                Lake Area, Alberta

            

    

     

    
      
        

      

    

     

    Baytex
      Energy Partnership (hereinafter referred to as “Baytex”) reserved an Overriding
      Royalty Interest in the Lands, in consideration of entering into that certain
      Petroleum, Natural Gas and Related Rights Conveyance dated December 19,
      2002:

     

    1. Definitions:

    

    Each
      capitalized term used in this Head Agreement will have the meaning given to
      it
      in the amended C.A.P.L. 1997 Overriding Royalty Procedure (hereinafter referred
      to as the “Overriding Royalty Procedure”, and, in addition:

    

    
      	 	
              a)

            	
              “Royalty
                Owner” means Baytex Energy
                Partnership;

            

    

    

    
      	 	
              b)

            	
              “Royalty
                Payor” means 979708 Alberta Ltd.;

            

    

    

    
      	 	
              c)

            	
              “Royalty
                Lands” means the lands set forth and described in Schedule
                “A”.

            

    

    

    2. Schedules:

    

    The
      following schedules are attached hereto and made a part of this
      Agreement:

    

    
      	 	
              a)

            	
              Schedule
                “A” which describes the Royalty Lands, Title Documents, and Encumbrances;
                and

            

    

    

    Suite
      2200, 205 - 5TH Ave. S.W., Calgary Alta. T2P 2V7

    Tel.
      (403) 269-4282

    Fax
      (403) 267-0777

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Overriding
      Royalty Agreement

    Dated
      December 19, 2002

    Page
      2

     

    
      	 	
              b)

            	
              Schedule
                “B” which is the Overriding Royalty
                Procedure.

            

    

    

    3. Royalty:

    

    Effective
      December 1, 2002, Royalty Payor grants to Royalty Owner the following royalty
      payable on the Royalty Lands:

    

    
      	 	
              a)

            	
              a
                5% non-convertible overriding royalty on 100% production as provided
                for
                in Article 2.00 of the Overriding Royalty
                Procedure.

            

    

    

    4. Address
      for Service:

    

    
      	 	
              a)

            	
              The
                Addresses for Service hereunder of each of the respective Parties
                shall be
                as follows:

            

    

    

    Baytex
      Energy Partnership

    2200,
      205
      - 5th
      Avenue
      S.W.

    Calgary,
      Alberta T2P 2V7

    Attention: Vice
      President Land

    Phone:
      (403) 269-4282

    Fax:
      (403) 267-0771; and

    

    

    979708
      Alberta Ltd.

    800,
      605
      - 5th
      Avenue
      S.W.

    Calgary,
      Alberta T2P 3H5

    Attention: Vice
      President. Land

    Phone:
      (403) 260-8776

    Fax:
      (403) 260-6701.

    

    

    
      	 	
              b)

            	
              Any
                Party may change its respective Address for Service by serving written
                notice to the other Party.

            

    

    

    5. Miscellaneous:

    

    Nothing
      in this Agreement is to be construed as an express or implied covenant by the
      Royalty Payor to develop the Royalty Lands:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Overriding
      Royalty Agreement

    Dated
      December 19, 2002

    Page
      3

     

    6. Limitations
      Act:

    

    The
      two
      year period for seeking a remedial order under section 3(1)(a) of the
Limitations
      Act,
      S.A.
      1996 c. L-15.1, as amended, for any claim (as defined in that Act)
      arising
      in connection with this Agreement is extended to:

    

    
      	 	
              a)

            	
              for
                claims disclosed by an audit, two years after the time this Agreement
                permitted that audit to be performed;
                or

            

    

    

    
      	 	
              b)

            	
              for
                all other claims, four years.

            

    

     

    7. Counterpart
      Execution:

    

    This
      Agreement may be executed in counterpart. All of those executed counterpart
      pages when taken together will constitute the Agreement.

     

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

     

    BAYTEX
      ENERGY PARTNERSHIP

    By
      its managing partner,

    
      	
              BAYTEX
                ENERGY LTD.

            	 	
              979708
                ALBERTA LTD.

            
	
              (the
                “Royalty Owner”)

            	 	
              (the
                “Royalty Payor”)

            
	 	 	 
	
              /s/
                Dan Horner

            	 	
              /s/
                Michael B. Holley

            
	
              Dan
                Horner, LL.B.

            	 	
              Michael
                B. Holley

            
	
              Vice
                President, Land

            	 	
              Director

            

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    This
      is Schedule “A” attached to and forming part of an Overriding Royalty
      Agreement

    dated
      December 19, 2002 between Baytex Energy Partnership and
      979708

    Alberta
      Ltd.

     

    

      
        	
                Title

                Documents

              	
                Lands

              	
                Interest

              	
                Encumbrances

              
	 	 	 	 
	
                Crown
                  PNG Licence 5495030101

              	
                91-13
                  W5M: Sections N28; 32; 33; 34

                92-13
                  W5M: Sections 3; 4; 5

                All
                  PNG

                Expiry:
                  March 2, 2003

              	
                100%

              	
                Crown
                  LOR

                5%
                  Non-convertible ORR

                payable
                  to Baytex Energy

                Partnership
                  by 979708

                Alberta
                  Ltd.

              
	
                Crown
                  PNG Licence 5495040066

              	
                91-12
                  W5M: Sections 9; 10; 15; 16;

                17;
                  SE 20; 21; 22

                All
                  PNG

                Expiry:
                  April 13, 2004

              	
                100%

              	
                Crown
                  LOR

                5%
                  Non-convertible ORR

                payable
                  to Baytex Energy

                Partnership
                  by 979708

                Alberta
                  Ltd.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      B

    OVERRIDING
      ROYALTY PROCEDURE

     

    CAPL

    

    CANADIAN
      ASSOCIATION OF PETROLEUM LANDMEN

    1997

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    
 

    

      

        
          	
                  1.00

                	
                  DEFINITIONS
                    AND INTERPRETATION

                	 
	 	
                  1.01

                	
                  Definitions

                	
                  1

                
	 	
                  1.02

                	
                  Incorporation
                    of Provisions From 1990 CAPL Operating Procedure

                	
                  2

                
	 	
                  1.03

                	
                  Multiple
                    Royalty Owner Parties

                	
                  3

                
	 	
                  1.04

                	
                  Multiple
                    Royalty Payor Parties

                	
                  3

                
	 	
                  1.05

                	
                  Modifications
                    to CAPL Document Form

                	
                  3

                
	 	 	 	 
	
                  2.00

                	
                  OVERRIDING
                    ROYALTY

                	 
	 	
                  2.01

                	
                  Quantification
                    of Overriding Royalty

                	
                  3

                
	 	
                  2.02

                	
                  Effect
                    of Pooling Or Unitization On Calculation

                	
                  4

                
	 	
                  2.03

                	
                  Royalty
                    Owner’s Right To Take Overriding Royalty In Kind

                	
                  4

                
	 	
                  2.04

                	
                  Royalty
                    Payor’s Allowed Deduction If Overriding Royalty Not Taken In
                    Kind

                	
                  5

                
	 	
                  2.05

                	
                  Royalty
                    Payor To Account To Royalty Owner Monthly

                	
                  6

                
	 	
                  2.06

                	
                  Royalty
                    Owner’s Lien

                	
                  6

                
	 	
                  2.07

                	
                  Royalty
                    Wells To Be Produced Equitably

                	
                  6

                
	 	
                  2.08

                	
                  Royalty
                    Owner’s Rights Upon Surrender

                	
                  6

                
	 	
                  2.09

                	
                  Audits
                    of Overriding Royalty

                	
                  6

                
	 	 	 	 
	
                  3.00

                	
                  WELL
                    INFORMATION TO ROYALTY OWNER

                	 
	 	
                  3.01

                	
                  Royalty
                    Owner’s Notification

                	
                  7

                
	 	 	 	 
	
                  4.00

                	
                  LIABILITY
                    AND INDEMNITY

                	 
	 	
                  4.01

                	
                  Royalty
                    Payor’s Responsibility

                	
                  7

                
	 	
                  4.02

                	
                  Royalty
                    Owner’s Responsibility

                	
                  7

                
	 	 	 	 
	
                  5.00

                	
                  ASSIGNMENT

                	 
	 	
                  5.01

                	
                  Incorporation
                    Of Assignment Procedure

                	
                  7

                
	 	 	 	 
	
                  6.00

                	
                  DEFAULT

                
	 	
                  6.01

                	
                  Royalty
                    Owner’s Default Remedies

                	
                  7

                
	 	 	 	 
	
                  7.00

                	
                  RESERVED
                    FORMATIONS

                	 
	 	
                  7.01

                	
                  Royalty
                    Owner’s Access To Reserved Formations

                	
                  8

                
	 	 	 	 
	
                  8.00

                	
                  DISPUTE
                    RESOLUTION

                	 
	 	
                  8.01

                	
                  Disputes
                    Initially Referred to Mediation

                	
                  8

                

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    OVERRIDING
      ROYALTY PROCEDURE

    

    Schedule
      B attached to and forming part of the PNG & Related Rights Conveyance
      Agreement dated the 19th
      day of
      December A.D. 2002, between/among Baytex Energy Partnership, Baytex Energy
      Ltd.
      and 979708 Alberta Ltd.

     

    
      	
              1.00

            	DEFINITIONS AND
              INTERPRETATION

    

     

    
      	
              1.01

            	Definitions

    

     

    In
      this
      Overriding Royalty Procedure:

     

    
      	 	
              (a) 

            	
              “Agreement”
                means the Head Agreement and the Schedules attached to
                it.

            

    

     

    
      	 	
              (b)

            	
              “Effective Date” means
                December
                1, 2002

            

    

    

    
      	 	
              (c)

            	
              “Facility
                Fees” means,
                as applicable:

            

    

     

    
      	 	
              (i)

            	
              for
                Facility Usage of facility capacity owned by third parties (other
                than
                Affiliates of the Royalty Payor), all costs and expenses paid by
                the
                Royalty Payor for that Facility Usage;
                and

            

    

     

    
      	 	(ii)	for
              Facility Usage of facility capacity owned by the Royalty Payor (or
              an
              Affiliate of the Royalty Payor), an expense equal to a fee (comprised
              of
              both operating and return on capital components) in accordance with
              (1) or
              (2) below:

    

     

    
      	
            	(1)	the
              fee ordinarily chargeable for the same use as the Facility Usage, if
              that
              facility is made available for use by third parties;
              or

    

     

    
      	 	(2)	
              in
                all other circumstances, a fee sufficient to cover that use of facilities,
                where the capital recovery component of that fee uses as a guideline
                the
                PJVA Jumping Pound-95 methodology and where the operating cost component
                is calculated and assessed on the basis of facility throughput
                costs;

            

    

     

    provided
      that any dispute respecting the Facility Usage fee will be resolved under Clause
      8.01.

    

    
      	 	
              (d)

            	
              “Facility
                Usage”
                means the Royalty Payor’s use of facilities beyond those included in
                Equipping Costs to make merchantable and to deliver to market Petroleum
                Substances produced from a Royalty Well, including, as applicable,
                the
                gathering, compression, treatment, processing and transportation
                of those
                Petroleum Substances, but excluding any basis adjustments made in
                the
                determination of the Market Price of natural
                gas.

            

    

    

    
      	 	
              (e)

            	
              “Head
                Agreement”
                means the Agreement, other than the
                Schedules.

            

    

    

    
      	 	
              (f)

            	
              “Overriding
                Royalty”
                means that interest in a portion of the Petroleum Substances within,
                upon,
                under or attributed to the Royalty Lands that is reserved by or granted
                to
                the Royalty Owner pursuant to the Head Agreement, as more particularly
                outlined in Article 2.00.

            

    

    

    
      	 	
              (g)

            	
              “Overriding Royalty
                Procedure”
                means this Schedule.

            

    

    

    
      	 	
              (h)

            	
              “Royalty
                Determination Point”
                means the first point at which Petroleum Substances are or can be
                metered,
                measured or allocated downstream of the wellhead after, as applicable:
                (i)
                any treatment of crude oil for the separation, removal and disposal
                of
                basic sediment and water; (ii) any extraction of liquid hydrocarbons
                from
                natural gas at the wellhead and any wellsite separation, removal
                and
                disposal of basic sediment and water from those liquid hydrocarbons;
                and
                (iii) any wellsite dehydration of natural
                gas.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              “Royalty
                Lands”
                means the areal, stratigraphic and substance rights described as
“Royalty
                Lands” in Schedule “A” of the Agreement or made subject to the Overriding
                Royalty in the manner outlined in the Head Agreement, as the case
                may be,
                and so much of those rights as remain subject to the Agreement and
                the
                Title Documents, excluding any Reserved
                Formations.

            

    

    

    
      	 	
              (j)

            	
              “Royalty
                Owner”
                has the meaning set forth in the Head
                Agreement.

            

    

    

    
      	 	
              (k)

            	
              “Royalty
                Payor”
                has the meaning set forth in the Head
                Agreement.

            

    

    

    
      	 	
              (l)

            	
              “Reserved
                Formations”
                means any rights not included in the Royalty Lands that are held
                under the
                Title Documents.

            

    

    

    
      	 	
              (m)

            	
              “Royalty
                Well”
                means any well from which production is obtained from the Royalty
                Lands or
                may be allocated to the Royalty Lands pursuant to a pooling, unit
                or other
                arrangement.

            

    

    

    
      	 	
              (n)

            	
              “Title
                Documents” means the documents of title described as “Title
                Documents” in Schedule “A” to the Agreement, insofar as they relate to the
                Royalty Lands, and all renewals, extensions, continuations or documents
                of
                title issued in substitution or by
                selection.

            

    

     

    
      	
              1.02

            	Incorporation Of Provisions From 1990 CAPL
              Operating Procedure

    

     

    The
      following provisions of the standard form 1990 CAPL Operating Procedure are
      incorporated herein by reference, as may be modified below:

     

    
      	 	
              101

            	(c)	“Affiliate”;
	 	 	(m)	“equipping costs”, which are referred to as
              “Equipping Costs”;
	 	 	(s)	
              “market
                price”, which is referred to as “Market Price”, in which the phrase
                “Article VI” is replaced with “Subclause 2.03D” and at the end of which is
                added: However, for natural gas, this price will be the weighted
                1 month
                spot index price for the specific month in which that natural gas
                was
                produced, as reported in the publication titled “Canadian Gas Price
                Reporter” in the table “Monthly Canadian and U.S. natural gas price
                summary” under the column for that specific delivery month and the row
                “Alberta Spot Price-AECO C/NIT C$/GJ”, subject to reasonable basis
                adjustments between the point of delivery to the applicable pipeline
                transportation system and the point at which the index price applies,
                provided that if that publication or that index cease to exist, the
                price
                will be determined in accordance with the previous sentence, unless
                otherwise agreed by the Parties.;

            
	 	 	(v)	“party”, which is referred to as
              “Party”;
	 	 	(y)	“petroleum
              substances”, which are referred to as “Petroleum
              Substances”;
	 	 	(bb)	“Regulations”;
	 	 	(cc) 	“spacing unit”, which is referred to as
              “Spacing Unit”;
	 	 	
              (dd)

            	
              “spud”,
                which is referred to as “Spud” and in which the phrase “in the AFE” is
                deleted; and

            
	 	 	
              (ff)

            	“working
              interest”, which is referred to as “Working Interest” and in which the
              phrase “a production facility or” is deleted.
	 	
              102

            	HEADINGS
	 	
              103

            	REFERENCES
	 	
              105

            	DERIVATIVES
	 	
              106

            	USE
              OF CANADIAN FUNDS
	 	
              107

            	CONFLICTS,
              with “Article 4.00” replacing the phrase “Article IV hereof” in the
              seventh line.
	 	
              304

            	
              PROPER
                PRACTICES IN OPERATIONS

            
	 	
              305

            	BOOKS,
              RECORDS AND ACCOUNTS
	 	
              306

            	 PROTECTION
              FROM LIENS

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              308 

            	SURFACE RIGHTS
	 	
              309 

            	
              MAINTENANCE
                OF TITLE DOCUMENTS, with the addition at the end of the first sentence
                of
                Subclause 309(b) of: “, provided that the Royalty Payor is not obligated
                to consult in this manner with a Royalty Owner”.

            
	 	
              2001 

            	WAIVER
              MUST BE IN WRITING
	 	
              2101 

            	PARTIES
              TO SUPPLY
	 	
              2201 

            	SERVICE
              OF NOTICE
	 	
              2202 

            	ADDRESSES
              FOR NOTICES - The Parties’ Addresses for Service will be as set forth in
              the Head Agreement.
	 	
              2203 

            	RIGHT
              TO CHANGE ADDRESS
	 	
              2403 

            	MULTIPLE
              ASSIGNMENT NOT TO INCREASE COSTS, with “Overriding Royalty” replacing
              “working interest” in the first and third lines.
	 	
              2601 

            	LIMITATION
              ON RIGHT OF ACQUISITION
	 	
              2801 

            	SUPERSEDES
              PREVIOUS AGREEMENTS
	 	
              2802 

            	TIME
              OF ESSENCE
	 	
              2803 

            	NO
              AMENDMENT EXCEPT IN WRITING
	 	
              2804 

            	BINDS
              SUCCESSORS AND ASSIGNS, with “5.00” replacing “XXIV” in the
              first line.
	 	
              2805 

            	LAWS
              OF JURISDICTION TO APPLY
	 	
              2806 

            	USE
              OF NAME
	 	
              2807 

            	WAIVER
              OF RELIEF

    

     

    In
      those
      incorporated provisions, “Operating Procedure” will be read as “Overriding
      Royalty Procedure”, “joint lands” will be read as “Royalty Lands”, “joint
      operations” will be read as “operations”, “Joint-Operator” will be read as
“Party”, “Operator” will be read as “Royalty Payor” or “Royalty Payor Party
      designated as the representative of the Royalty Payor”, as the case may be, and
“title documents” will be read as “Title Documents”, and references to
“Authority for Expenditure”, “for the joint account” and “production facility”
will be deleted. Nothing in any of those incorporated provisions will require
      the Royalty Owner to assume any cost, risk or expense associated with an
      operation conducted hereunder unless otherwise provided herein or in the Head
      Agreement.

     

    
      	
              1.03

            	Multiple Royalty Owner
              Parties

    If
      the
      Royalty Owner comprises more than one Party: (i) information and notices to
      be
      provided to the Royalty Owner will be provided individually to each Royalty
      Owner Party; and (ii) the rights and obligations of the Royalty Owner Parties
      will accrue proportionately to the Royalty Owner Parties in the percentages
      set
      forth in the Head Agreement.

     

    
      	
              1.04

            	
              Multiple
                Royalty Payor Parties

            

    

     

    If
      the
      Royalty Payor comprises more than one Party:

     

    
      	
            	(a)	
              the
                Royalty Payor’ s obligations and liabilities to the Royalty Owner will be
                joint and several;

            

       

      
        	 	
                (b)

              	
                the
                  Royalty Owner may deal solely with the Royalty Payor Party designated
                  as
                  the Royalty Payor’s representative in the Head Agreement respecting the
                  Head Agreement or this Royalty Procedure, provided that: (i) the
                  Royalty
                  Owner will provide each Royalty Payor Party with notices the Royalty
                  Owner
                  serves to the Royalty Payor; (ii) the Royalty Payor is bound by
                  the acts
                  and elections of that representative acting in that capacity; and
                  (iii)
                  the Royalty Payor may designate another representative by notice
                  to the
                  Royalty Owner; and

              

      

    

     

    
      	 	(c) 	the Royalty Payor’s rights and obligations will accrue
              proportionately to the Royalty Payor Parties in the percentages set
              forth
              in the Head Agreement.

    If
      the
      Royalty Payor initially comprises one Party and subsequently disposes of a
      portion of its interest hereunder, those Royalty Payor Parties will designate
      one of them as their representative under this Clause.

     

    
      	
              1.05

            	
              Modifications
                To CAPL Document Form

            

    

     

    This
      Overriding Royalty Procedure is the 1997 CAPL Overriding Royalty Procedure.
      It
      has been modified only by the completion of the blanks and elections required
      herein and by those additional changes specifically identified as such in the
      body of this document or in the Head Agreement. Insofar as there are differences
      between this Overriding Royalty Procedure and the 1997 CAPL Overriding Royalty
      Procedure that are not specifically identified, this Overriding Royalty
      Procedure will be deemed to be modified to apply the applicable provisions
      of
      the 1997 CAPL Overriding Royalty Procedure as if they had been included
      herein.

     

    
      	
              2.00

            	
              OVERRIDING
                ROYALTY

            

    

    

    
      	
              2.01

            	
              Quantification
                Of Overriding Royalty

            

    

     
      

    
      	 	A.	
              The
                Overriding Royalty is created effective as of the date and in the
                manner
                provided in the Head Agreement and this Overriding Royalty Procedure.
                Subject to the other provisions of this Article, including the modified
                calculation under Subclause 2.02C for production of Petroleum Substances
                allocated to the Royalty Lands, the Overriding Royalty (based on
                a 100%
                Working Interest) will be determined on a well by well basis at the
                Royalty Determination Point, and will be as
                follows:

            

    

    
    

     

    
      	 	(a)	
              for
                crude oil, 5.00%
                of
                the gross monthly production thereof produced from each Royalty Well;
                and

            

    

     

    
      	 	
              (b)

            	
              for
                all other Petroleum Substances, Alternate
                1
                will apply (Specify 1 or 2).

            

    

     

    Alternate
      1:

    5.00% of
      the gross monthly production thereof produced from each Royalty
      Well.

    

    Alternate
      2:

    
      	 	
              (i)

            	
              if
                not taken in kind by the Royalty Owner pursuant to Clause 2.03, the
                gross
                proceeds from the Royalty Payor‘s sale of % of the gross monthly
                production thereof produced from each Royalty Well, free and clear,
                subject to Subclause 2.04C, of all Facility Fees otherwise chargeable
                pursuant to Clause 2.04; and

            

    

    

    
      	 	
              (ii)

            	
              if
                taken in kind by the Royalty Owner, % of the gross monthly production
                thereof produced from each Royalty
                Well.

            

    

    

    To
      the
      extent that the Overriding Royalty is reserved by the Royalty Owner from a
      Working Interest assigned by the Royalty Owner to the Royalty Payor, the
      Overriding Royalty will be multiplied by the percentage Working Interest held
      by
      the Royalty Owner immediately before this Article came into effect.

     

    
      	 	
              B.

            	
              Notwithstanding
                the calculation at the Royalty Determination Point under Subclause
                2.01A,
                the Overriding Royalty will not include Petroleum Substances that
                the
                Royalty Payor reasonably uses or unavoidably loses in the Royalty
                Payor’s
                drilling and production operations for the Royalty Lands. Those drilling
                and production operations include the proportionate use of those
                Petroleum
                Substances in batteries, treaters, compressors, separators, satellites
                and
                similar equipment serving Royalty Wells, but do not include the use
                of
                Petroleum Substances for any enhanced recovery
                operations.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.02

            	
              Effect
                Of Pooling Or Unitization On
                Calculation

            

    

    
      
      

       

      
        	 	
                A.

              	
                The
                  Royalty Payor may pool the Petroleum Substances in a zone underlying
                  all
                  or a portion of the Royalty Lands to the extent required to form
                  a Spacing
                  Unit in that zone, provided that the pooling allocates production
                  therefrom to the applicable Royalty Lands in the proportion that
                  the
                  surface area of the Royalty Lands placed in the Spacing Unit bears
                  to the
                  total surface area of the Spacing Unit. The Royalty Payor will
                  promptly
                  give notice to the Royalty Owner describing the extent to which
                  the
                  Royalty Lands have been pooled and describing the pooled Spacing
                  Unit.

              

      

    

    

    
      	 	
              B.

            	
              If
                the Royalty Payor proposes to pool, unitize or otherwise combine
                any
                portion of the Royalty Lands with any other lands, other than as
                provided
                in the previous Subclause, the Royalty Payor must promptly send notice
                of
                that intention to the Royalty Owner. That notice must include the
                technical justification for that pooling, unitization or combination
                and
                the proposed terms thereof, provided that the Royalty Payor will
                not be
                required to provide interpretative data to the Royalty Owner. Unless
                otherwise required by the Regulations to form a Spacing Unit, the
                Royalty
                Payor will not enter into that pooling, unitization or combination
                without
                the prior written consent of the Royalty Owner, which consent will
                not be
                unreasonably delayed or withheld.

            

    

    

    
      	 	
              C.

            	
              If
                any portion of the Royalty Lands is pooled, unitized or combined
                with any
                other lands pursuant to this Clause, Clause 2.01 will be deemed to
                be
                amended to calculate the volume of the Overriding Royalty by applying
                the
                percentages set forth in that Clause to the quantity of Petroleum
                Substances thereby allocated to the affected Royalty
                Lands.

            

    

    

    
      	
              2.03

            	
              Royalty
                Owner’s Rights To Take Overriding Royalty In
                Kind

            

    

    

    
      	 	
              A.

            	
              Subject
                to the provisions of this Clause, the Royalty Payor is appointed
                as the
                agent of the Royalty Owner for the handling and disposition of the
                Overriding Royalty share of Petroleum Substances. All acts of the
                Royalty
                Payor under this Clause in the handling and disposition of those
                Petroleum
                Substances and the receipt of proceeds of sale therefrom will be
                as
                trustee for the Royalty Owner.

            

    

    

    
      	 	
              B.

            	
              The
                Royalty Owner may, on a minimum of 60 days’ notice to the Royalty Payor,
                revoke the agency established in Subclause 2.03A and elect to take
                delivery and separately dispose of the Petroleum Substances comprising
                the
                Overriding Royalty at the Royalty Determination Point. This right
                may be
                exercised separately for each type of Petroleum Substance, effective
                at
                the 1st day of the calendar month next following that minimum 60
                day
                period. The Royalty Owner will supply the Royalty Payor with such
                information regarding the Royalty Owners arrangements for disposition
                of
                those Petroleum Substances as the Royalty Payor may reasonably require
                to
                coordinate custody transfer and shipping arrangements for those Petroleum
                Substances. Failure to provide the Royalty Payor with that information
                will be deemed to be a failure by the Royalty Owner to take those
                Petroleum Substances in kind.

            

    

    

    
      	 	
              C.

            	
              If
                the Royalty Owner takes in kind its Overriding Royalty share of crude
                oil
                or liquid products extracted from natural gas at the wellhead, the
                Royalty
                Payor will, at the Royalty Payor’s cost, remove basic sediment and water
                from those Petroleum Substances in accordance with good oilfield
                practice,
                so that relevant pipeline specifications can be met. The Royalty
                Payor
                will provide the Royalty Owner, at the Royalty Payor’s cost, production
                tankage capacity for an accumulation of the Overriding Royalty share
                of
                those Petroleum Substances consistent with the Royalty Payor’s shipping
                schedule for its own share of those Petroleum Substances. Subject
                to
                Subclause 2.04C, the Royalty Payor will deliver the Overriding Royalty
                share of those Petroleum Substances to the Royalty Owner, or the
                Royalty
                Owner’s nominee, at the Royalty Determination Point, in accordance with
                usual and customary pipeline and shipping practice, free and clear
                of all
                charges. If the Royalty Owner takes its Overriding Royalty share
                of
                natural gas in kind, the Royalty Payor will deliver that gas to the
                Royalty Owner, or the Royalty Owner’s nominee, at the Royalty
                Determination Point for the relevant well at the Royalty Payor s
                cost.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              D.

            	
              Except
                to the extent otherwise agreed by the Royalty Payor and the Royalty
                Owner,
                insofar as the Royalty Payor takes possession of Petroleum Substances
                comprising the Overriding Royalty as agent of the Royalty Owner,
                the
                Royalty Payor will dispose of those Petroleum Substances
                by:

            

    

     

    
      	 	
              (b)

            	
              purchasing
                those Petroleum Substances for the Royalty Payors own account (or
                the
                account of an Affiliate) at a Market Price and accounting to the
                Royalty
                Owner therefor.

            

    

     

    
      	 	(a)	selling
              those Petroleum Substances at a Market Price and accounting to the
              Royalty
              Owner for the proceeds of the sale; or

    

    

    
      	 	
              E.

            	
              Insofar
                as the Royalty Owner has elected to revoke the agency established
                by
                Subclause 2.03A, the Royalty Owner may re-establish that agency on
                a
                minimum of 60 days’ notice to the Royalty Payor, effective as of the 1st
                day of the calendar month next following that minimum 60 day period.
                This
                right may be exercised separately for each type of Petroleum
                Substance.

            

    

    

    
      	
              2.04

            	
              Royalty
                Payor’s Allowed Deductions If Overriding Royalty Not Taken In
                Kind

            

    

    

    
      	 	
              A.

            	
              To
                the extent that the Royalty Payor disposes of Petroleum Substances
                comprising the Overriding Royalty on behalf of the Royalty Owner,
                the
                Royalty Owner’s share of those Petroleum Substances will be free of any
                deductions for costs and expenses incurred by the Royalty Payor to
                and
                including the Royalty Determination Point. Subject to Subclause 2.04C,
                the
                Royalty Owner will be responsible, on a well by well basis, for the
                following costs and expenses incurred after the Royalty Determination
                Point with respect to the Royalty Owner’s share of those Petroleum
                Substances:

            

    

    

    
      	 	
              (a)

            	
              for
                crude oil and liquid products extracted from natural gas at the wellhead,
                any associated Facility Fees and any transportation costs to transport
                those Petroleum Substances from the Royalty Determination Point to
                the
                point of sale; and

            

    

    

    
      	 	
              (b)

            	
              for
                Petroleum Substances other than those described in the preceding
                Paragraph, the associated Facility Fees if Alternate 2.01A(b)(1)
                applies.

            

    

    

    A
      cost or
      expense attributable to more than one Petroleum Substance being sold by the
      Royalty Payor may only be deducted once.

    

    
      	 	
              B.

            	
              The
                deductions applicable pursuant to the preceding Subclause will be
                subject
                to Alternate
                2

            

    

    

    Alternate
      1:

    The
      deductions must not exceed those permitted by the Regulations for the
      calculation of royalties if the lessor under the relevant Title Documents were
      the Crown in right of the Province in which the Royalty Lands are
      located.

    

    Alternate
      2:

    The
      deductions must not be greater than 40.00
      %
      of
      the Market Price received by the Royalty Payor from the sale of the Royalty
      Owner’s Overriding Royalty share of those Petroleum Substances, provided that
      the Market Price will first be adjusted for any deductions under Subclause
      2.04C.

    

    
      	 	
              C.

            	
              Notwithstanding
                any other provision of this Article, if the Royalty Payor is required
                to
                incur costs to enrich the Overriding Royalty share of Petroleum Substances
                to increase the heating value or to facilitate transportation or
                marketing
                of those Petroleum Substances, those costs will be deductible by
                the
                Royalty Payor against the gross proceeds of sale applicable to those
                enriched Petroleum Substances, with the intention that neither the
                Royalty
                Payor nor the Royalty Owner suffer a loss as a result of that enrichment.
                Enrichment operations, include, without limitation, condensate blending
                in
                the case of heavy oil and enrichment by propane or butane in the
                case of
                gas with a low heating value.

            

    

     

    
      	 	
              D.

            	
              The
                Royalty Payor’s right to make the deductions set forth in this Clause
                pertains to the costs and expenses that would otherwise be incurred
                by the
                Royalty Owner to bring those Petroleum Substances to the point of
                sale if
                the Royalty Owner were taking those Petroleum Substances in kind.
                The
                allowable deductions from the proceeds of sale of the Royalty Owner’s
                Overriding Royalty share of Petroleum Substances are expressed as
                cash
                obligations for convenience of record keeping and audit, and are
                not to be
                construed as altering the nature of the Overriding Royalty as an
                interest
                in land.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.05

            	
              Royalty
                Payor To Account To Royalty Owner
                Monthly

            

    

    

    If
      the
      Royalty Payor receives funds on account of or as the proceeds of sale of the
      production of Petroleum Substances comprising the Overriding Royalty, the
      Royalty Payor will receive the Royalty Owner’s share of those funds as trustee
      for the Royalty Owner. The Royalty Payor must remit to the Royalty Owner all
      funds accruing to the Royalty Owner on account of the Overriding Royalty on
      or
      before the 25th day
      of
      the calendar month next following the calendar month in which those funds were
      received by the Royalty Payor, provided that for the purpose of the timing
      of
      receipt of proceeds in this Clause “received” will be read as “normally
      received” if the purchaser of those Petroleum Substances fails to pay the
      Royalty Payor for that production. The Royalty Payor must provide the Royalty
      Owner with a statement in written or electronic format showing in reasonable
      detail the manner in which the Royalty Payor calculated that payment, including
      the unit sale price for those Petroleum Substances, and, if requested by the
      Royalty Owner, a copy of all reports the Royalty Payor is required to submit
      under the Regulations for the production of those Petroleum
      Substances.

     

    
      	
              2.06

            	
              Royalty
                Owner’s Lien

            

    

    
       

      As
        of the
        effective date that the Overriding Royalty is created, the Royalty Owner
        will
        have a first and prior lien on the Royalty Payor’ s Working Interest in the
        Royalty Lands, the Petroleum Substances within, upon or under the Royalty
        Lands,
        or produced therefrom, and the wells and other equipment thereon to secure
        the
        Overriding Royalty. The Overriding Royalty and that lien are interests in
        land
        that attach to the Title Documents.

    

     

    
      	
              2.07

            	
              Royalty
                Wells To Be Produced
                Equitably

            

    

     

    The
      Royalty Payor will not discriminate against the Petroleum Substances produced
      or
      producible from the Royalty Lands in the production and marketing of those
      Petroleum Substances because those Petroleum Substances are subject to the
      Overriding Royalty. The Royalty Payor will use reasonable efforts to produce
      Petroleum Substances from a Royalty Well equitably with production from any
      diagonally or laterally offsetting well producing from the same pool as a
      Royalty Well, insofar as the Royalty Payor, or its Affiliate, has an interest
      in
      that offsetting well.

     

    
      	
              2.08

            	
              Royalty
                Owner’s Rights Upon
                Surrender

            

    

    This
      optional Clause 2.08 will
      not apply
      herein.

    

    If
      there
      are multiple Royalty Payor Parties and a Royalty Payor Party proposes to
      surrender all or a portion of the Royalty Lands to the grantor of the Title
      Documents, that Royalty Payor Party will comply with the applicable provisions
      of any agreement otherwise governing the Royalty Payors. To the extent those
      Royalty Lands are thereafter proposed for surrender or there is only one Royalty
      Payor, Article XI of the standard form 1990 CAPL Operating Procedure will apply
      mutatis mutandis between the Royalty Payor and the Royalty Owner, except that
      the notice and reply periods in Clause 1101 therein are reduced from 60 and
      30
      days to 20 and 10 days respectively.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.09

            	
              Audits
                Of Overriding Royalty

            

    

     

    
      	 	
              A.

            	
              The
                Royalty Owner may, upon reasonable notice to the Royalty Payor and
                at the
                Royalty Owner’s own expense, audit the books, records and accounts of the
                Royalty Payor with respect to the production, disposition or sale
                of the
                Overriding Royalty within 24 months next following the end of the
                applicable calendar year. The Royalty Owner will conduct any such
                audit in
                accordance with PASC Joint Venture Audit Protocol Bulletin No. 6
                (or any
                replacement therefor).

            

    

    

    
      	 	
              B.

            	
              Any
                statement issued by the Royalty Payor to the Royalty Owner respecting
                the
                calculation of the Overriding Royalty will be presumed to be true
                and
                correct 26 months following the end of the calendar year in which
                that
                statement was issued, unless the Royalty Owner takes written exception
                thereto and requests an adjustment pursuant to this Clause within
                that 26
                month period. If a Party discovers during that period that there
                was an
                error in the calculation of the Overriding Royalty and can demonstrate
                that the error applied both to that period and a prior period, the
                Royalty
                Payor will make the required adjustment retroactively to either the
                inception of that error or such other time as the Parties may agree,
                provided that any dispute respecting the proposed retroactive adjustment
                will be resolved pursuant to Clause 8.01. Except to the extent required
                to
                confirm the adjustment proposed by the Royalty Payor, the retroactive
                adjustment contemplated by the previous sentence will not extend
                the
                Royalty Owners audit rights beyond the 24 month limitation provided
                for in
                Subclause 2.09A.

            

    

    

    
      	
              3.00

            	
              WELL
                INFORMATION TO ROYALTY
                OWNER

            

    

    

    
      	
              3.01

            	
              Royalty
                Owner’s Notification

            

    

    

    The
      Royalty Payor will supply to the Royalty Owner notice of its intention to drill
      a Royalty Well on the Royalty Lands prior to the Spudding of that
      well.

     

    
      	
              4.00

            	
              LIABILITY
                AND INDEMNITY

            

    

    

    
      	
              4.01

            	
              Royalty
                Payor’s Responsibility

            

    

    

    The
      Royalty Payor will:

    

    
      	 	
              (a)

            	
              be
                liable to the Royalty Owner for all losses, costs, damages and expenses
                whatsoever (whether contractual or otherwise) that the Royalty Owner
                may
                suffer, sustain, pay or incur; and, in
                addition

            

    

    

    
      	 	
              (b)

            	
              indemnify
                and hold harmless the Royalty Owner and its directors, officers,
                agents
                and employees against all actions, causes of action, proceedings,
                claims,
                demands, losses, costs, damages and expenses whatsoever that may
                be
                brought against or suffered by the Royalty Owner, its directors,
                officers,
                agents and employees or that they may sustain, pay or
                incur;

            

    

    

    insofar
      as they are a direct result of: (i) any act or omission (whether negligent
      or
      otherwise) of the Royalty Payor with respect to operations or activities
      conducted by it or on behalf of it hereunder; (ii) a breach of a provision
      herein by the Royalty Payor; or (iii) the wilful or wanton misconduct of the
      Royalty Payor, its employees, agents or contractors. However, this obligation
      will not apply to the extent that the particular act or omission was done or
      omitted to be done in accordance with the Royalty Owner s written instructions
      or written concurrence. Costs described in this Clause will include reasonable
      legal costs on a solicitor-client basis.

     

    
      	
              4.02

            	
              Royalty
                Owner’s Responsibility

            

    

     

    The
      provisions of the preceding Clause will apply mutatis mutandis to the Royalty
      Owners operations, activities and obligations with respect to the Royalty Lands
      or the Reserved Formations.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              5.00

            	
              ASSIGNMENT

            

    

    

    
      	
              5.01

            	
              Incorporation
                Of Assignment Procedure

            

    

    

    The
      1993
      CAPL Assignment
      Procedure is incorporated by reference into the Agreement, and will be deemed
      to
      apply as if it had been included as a Schedule to the Agreement. Article XXIV
      (election 2401A) of the standard form 1990 CAPL Operating Procedure will apply
      mutatis mutandis to any disposition of Royalty Lands by either the Royalty
      Owner
      or the Royalty Payor.

     

    
      	
              6.00

            	DEFAULT

    

     

    
      	
              6.01 

            	
              Royalty
                Owner’s Default Remedies

            

    

     

    If
      the
      Royalty Payor fails to pay the Overriding Royalty or any other amount required
      to be paid to the Royalty Owner by the Royalty Payor hereunder, Subclauses
      505(b), (c) and (d) of the standard form 1990 CAPL Operating Procedure will
      apply mutatis mutandis to that default as if the Royalty Owner is the Operator
      and the Royalty Payor the defaulting Party thereunder, except that the reference
      in Paragraph 505(b)(vi) of that document to “Subclause (a) of this Clause” will
      be amended to read “Clause 2.06”. The rights granted to the Royalty Owner in
      this Clause will be in addition to and not in substitution for any other right
      or remedy that the Royalty Owner may have under this Agreement.

     

    
      	
              7.00

            	
              RESERVED
                FORMATIONS

            

    

     

    
      	
              7.01

            	
              Royalty
                Owner’s Access To Reserved
                Formations

            

    

     

    The
      Royalty Owner may enter upon the Royalty Lands at any time to drill a well
      to
      penetrate any Reserved Formations and to produce Petroleum Substances therefrom.
      The Royalty Owner will conduct its drilling and any resultant producing
      operations with respect to the Reserved Formations in a manner that will
      interfere as little as is reasonably possible with drilling or production
      operations conducted on the Royalty Lands pursuant to this Agreement. Nothing
      in
      this Clause, however, permits the Royalty Owner to use a well drilled to the
      Reserved Formations for the production or testing of Petroleum Substances from
      any zone contained in the Royalty Lands, unless otherwise agreed by the Parties
      or permitted under the Agreement.

     

    
      	
              8.00

            	
              DISPUTE
                RESOLUTION

            

    

     

    
      	
              8.01

            	
              Disputes
                Initially Referred To
                Mediation

            

    

     

    The
      Parties will attempt to resolve any dispute arising under this Agreement through
      consultation and negotiation in good faith. If those attempts fail, the
      applicable Parties will then attempt to resolve that dispute through mediation,
      with costs of the mediation being shared equally by those Parties. However,
      any
      Party to that dispute may terminate the mediation at any time upon reasonable
      notice to the other Parties. If a dispute arises under a provision of this
      Overriding Royalty Procedure that makes specific reference to this Clause,
      a
      Party must refer that dispute to arbitration for resolution pursuant to the
      provisions of the Arbitration Act of the Province of Alberta, as amended, after
      the terminated mediation. Otherwise, a Party may, if it so chooses, resort
      to
      judicial proceedings to resolve the dispute after the terminated
      mediation.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]