Document:

EX-4.2

   

  THIRD LOAN EXTENSION AGREEMENT

  This THIRD LOAN EXTENSION AGREEMENT (this “Agreement”) is made as of July 8, 2022, by and among (i) EVO TRANSPORTATION & ENERGY SERVICES, INC., a Delaware corporation having its principal office at 2075 West Pinnacle Peak Rd., Suite 130, Phoenix AZ 85027 (“Borrower”), and each subsidiary of Borrower listed on the signature pages hereto or that after the date hereof delivers such a signature page (each a “Guarantor”, collectively, the “Guarantors” and, together with Borrower, the “Loan Parties” and each a “Loan Party”), (ii) ANTARA CAPITAL MASTER FUND LP and/or one or more managed funds or accounts (the “Lender”), and (iii) each lender listed on Schedule I of the Loan Agreement (as defined below) (each, an “Executive Lender” and together, the “Executive Lenders”). Capitalized terms used but not defined in this Agreement shall have the meanings given to them in the Loan Agreement or, to the extent not defined in this Agreement or the Loan Agreement, in the Certificate of Designations of Series C Non-Participating Preferred Stock of the Corporation, duly adopted by the Board of Directors of the Borrower on March 11, 2022.

  W I T N E S S E T H:

  WHEREAS, the Loan Parties are indebted to the Lender and the Executive Lenders pursuant to that certain Senior Secured Loan and Executive Loan Agreement dated as of March 11, 2022 (the “Original Loan Agreement”), as amended by the Loan Extension Agreement dated May 31, 2022 (the “First Loan Extension Agreement”) and the Second Loan Extension Agreement dated June 30, 2022 (the “Second Loan Extension Agreement”), and the Original Loan Agreement as amended by the First Loan Extension Agreement and the Second Loan Extension Agreement, the “Loan Agreement”).

  WHEREAS, the Loan Parties and the Lender wish to extend the “Maturity Date” (as defined in the Loan Agreement) of the Loan from July 8, 2022 to July 15, 2022 upon satisfaction of the terms and conditions set forth in this Agreement.

  WHEREAS, the Loan Parties and the Executive Lenders wish to extend the “Executive Loan Maturity Date” (as defined in the Loan Agreement) of the Executive Loans from July 15, 2022 to July 22, 2022 upon satisfaction of the terms and conditions set forth in this Agreement.

  WHEREAS, the parties to this Agreement (the “Parties”) desire to memorialize the aforementioned extensions as hereinafter set forth.

  NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the Parties hereby agree as follows:

  1.Extension of the Loan Maturity Date. Effective upon the date of this Agreement, the Loan Agreement is amended to extend the “Maturity Date” from (i) the earlier of (a) demand by the Lender on any day prior to the Collateral Pledge Effective Date and (b) July 8, 2022 to (ii) the earlier of (a) demand by the Lender on any day prior to the Collateral Pledge Effective Date and (b) July 15, 2022. 

  		 

  

   

  2.Extension of each Executive Loan Maturity Date. Effective upon the date of this Agreement, the Loan Agreement is amended to extend each “Executive Loan Maturity Date” from July 15, 2022 to July 22, 2022.

  1.Representations. The Loan Parties hereby represent and warrant to Lender and each Executive Lender as of the date hereof that each of the representations and warranties made by any Loan Party in the Loan Agreement have been and remain true and correct in all material respects as if remade on the date hereof, subject to changes to such representations and warranties set forth on Exhibit A attached hereto (the “Representation Updates”). None of the Representation Updates are the result of any breach of a covenant of any Loan Party under the Loan Agreement, nor do they result from or in any Event of Default. Neither the execution, delivery or performance of this Agreement nor any other agreement or instrument contemplated hereby, including the issuance of the Series D Preferred Stock (as define below) as contemplated in 4.a. of this Agreement and the exercise by Lender of its voting rights under the Series D Preferred Stock to the fullest extent contemplated herein, will (a) violate any applicable law in any material respect, (b) violate the organizational documents of any Loan Party, or (c) breach, violate or result in a default, or give rise to a termination, cancellation, acceleration or other right or remedy, under any material agreement, instrument or other contractual obligation of any Loan Party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

  2.Additional Covenants. 

  a.On or before July 13, 2022, the Board of Directors of the Borrower shall have duly approved and filed with the Secretary of State of the State of Delaware a Certificate of Designation to evidence the issuance of a new series of Series D Non-Participating Preferred Stock, $0.0001 par value (the “Series D Preferred Stock”) that will, upon issuance, entitle the Lender (in its capacity as sole holder of the Series D Preferred Stock) to vote such number of votes per share that will allow the Lender to exercise 51% of the voting capital stock of the Borrower.

  b.The Loan Parties shall use their best efforts to execute and deliver, and/or cause to be executed and delivered, a “Loan Pledge Security Agreement” substantially in the form attached as Exhibit A to the First Loan Extension Agreement and a “Bridge Loan Subordination Agreement” substantially in the form attached as Exhibit B to the First Loan Extension Agreement, in each case with Lender acting as “Collateral Agent”, on or before July 13, 2022.

  3.Full Force and Effect. Except as specifically set forth herein, all of the terms and conditions of the Loan Agreement are unmodified and remain in full force and effect.  

  4.No Novation. The Parties do not intend the terms of this Agreement to be construed as a novation of any of the obligations owing by the Loan Parties under or in connection with the Loan or the Executive Loans.  

  5.Ratification and Affirmation of Guaranties and Indemnities. By the execution hereof, each Guarantor hereby acknowledges and agrees and consents to the terms of this Agreement 

   

  

   

  and that, except as expressly provided in Section 1 and Section 2 of this Agreement, nothing contained herein shall modify, affect or otherwise diminish the obligations of Guarantor under the Loan Agreement applicable to such Guarantor, and each Guarantor hereby certifies, reaffirms and ratifies its obligations under the Loan Agreement.

  6.Release of Lender Liability. TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW FROM TIME TO TIME IN EFFECT, EACH LOAN PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY (AND AFTER IT HAS CONSULTED WITH ITS OWN COUNSEL) IRREVOCABLY AND UNCONDITIONALLY AGREES THAT NO CLAIM MAY BE MADE BY SUCH LOAN PARTY AGAINST THE LENDER OR ANY OF THE LENDER’S DIRECTORS, OFFICERS, EMPLOYEES, ATTORNEYS, ACCOUNTANTS, AGENTS OR INSURERS, OR ANY OF ITS OR THEIR SUCCESSORS AND ASSIGNS, FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES IN RESPECT OF ANY BREACH OR WRONGFUL CONDUCT (WHETHER THE CLAIM IS BASED ON CONTRACT OR TORT OR DUTY IMPOSED BY LAW) ARISING OUT OF, OR RELATED TO, THE TRANSACTIONS CONTEMPLATED BY ANY OF THIS AGREEMENT OR THE LOAN AGREEMENT, OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION HEREWITH OR THEREWITH. IN FURTHERANCE OF THE FOREGOING, EACH LOAN PARTY HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. 

  7.Counterparts. This Agreement may be executed in any number of counterparts (which may be electronic, including PDF) and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original and shall be binding upon all parties and their respective permitted successors and assigns, and all of which taken together shall constitute one and the same agreement.

  3.Governing Law. This Agreement shall be governed in accordance with the terms and provisions of Section 25 and Section 26 of the Original Loan Agreement, except, for purposes of this Agreement, references to “Loan Agreement” shall be deemed to refer to the Original Loan Agreement as modified by the First Loan Extension Agreement and the Second Loan Extension Agreement and as further modified by this Agreement.

  [NO FURTHER TEXT ON THIS PAGE]

   

   

  

   

  IN WITNESS WHEREOF, each Loan Party has caused this Agreement to be duly executed as of the date set forth above.

  EVO TRANSPORTATION & ENERGY SERVICES, INC., as Borrower

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  W.E. GRAHAM, INC., as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  EVO LOGISTICS, LLC, as a Guarantor 

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  TITAN CNG LLC, as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  THUNDER RIDGE TRANSPORT, INC., as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  Signature Page to Third Loan Extension Agreement

  

   

  SHEEHY MAIL CONTRACTORS, INC., as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  URSA MAJOR CORPORATION, as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  J.B. LEASE CORPORATION, as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  EVO EQUIPMENT LEASING, LLC, as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  COURTLANDT AND BROWN ENTERPRISES L.L.C., as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  FINKLE TRANSPORT, INC., as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  Signature Page to Third Loan Extension Agreement

   

  

   

  EVO SERVICES GROUP, LLC, as a Guarantor

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood
Title:	Chief Executive Officer	

  	 

   

  Signature Page to Third Loan Extension Agreement

   

  

   

  AGREED TO AND ACCEPTED:

  ANTARA CAPITAL MASTER FUND LP (as Lender)

  By: Antara Capital Fund GP LLC, its General Partner 

   

  By:	/s/ Himanshu Gulati	
Name:	Himanshu Gulati
Title:	Managing Partner

   

  Executive Lenders

  AGREED TO AND ACCEPTED:

   

  By:	/s/ Thomas J. Abood	
Name:	Thomas J. Abood	

  AGREED TO AND ACCEPTED:

   

  By:	/s/ Damon R. Cuzick	
Name:	Damon R. Cuzick

  AGREED TO AND ACCEPTED:

  BRIDGEWEST GROWTH FUND LLC

   

  By:	/s/ Billy (Trey) Peck Jr.	
Name:	Billy (Trey) Peck Jr.

  Title:	Managing Member

   

  AGREED TO AND ACCEPTED:

  BATUTA CAPITAL ADVISORS LLC 

   

  By:	/s/ Alexandre Zyngier	
Name:	Alexandre Zyngier
Title:	Managing Director

  Signature Page to Third Loan Extension Agreement

   

  

   

  EXHIBIT A

   

   

  UPDATES TO REPRESENTATIONS AND WARRANTIES

   

   

  Omitted.

  EXHIBIT CExhibit
10.10

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This
Agreement dated May 1, 2022 is made between Permex Petroleum Corporation (the “Corporation”) and Gregory S. Montgomery
(Executive).

 

RECITALS

 

	A.	The
    Corporation wishes to employ the executive on the terms and conditions set out below.
	 	 
	B.	The
    Executive wishes to be so employed by the Corporation.

 

For
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE
1

 

TERM

 

1.1
Employment. The Corporation shall employ the Executive and the Executive shall perform services on behalf of the Corporation as its
Executive as provided herein during the Period of Active Employment.

 

1.2
Period of Active Employment. In this Employment Agreement, “Period of Active Employment” means the period beginning
on May 1, 2022 and terminating on the date on which the first of the following occurs:

 

	 	(a)	the
    termination of the Executive’s employment by the Corporation pursuant to Section 4.1;
	 	 	 
	 	(b)	the
    termination of the Executive’s employment pursuant to Section 4.2;
	 	 	 
	 	(c)	the
    termination of the Executive’s employment by the Corporation pursuant to Section 4.3;
	 	 	 
	 	(d)	the
    date specified in a notice given under Section 4.4; or,
	 	 	 
	 	(e)	the
    death of the Executive.

 

ARTICLE
2

 

POSITION

 

2.1
Capacity and Services. The Corporation shall employ the Executive as Chief Financial Officer. As such, the Executive shall perform
such duties and have such authority as may from time to time be assigned, delegated or limited by the board of directors of the Corporation
(the “Board”). The Executive shall perform these duties in accordance with articles of the Corporation, the instructions
of the Board and the policies of the Corporation from time to time, and the Executive shall diligently and faithfully serve the Corporation
and use the Executive’s best efforts to promote the interests and goodwill of the Corporation.

 

2.2
Full Time and Attention. The Executive shall devote 50% of the Executive’s business time to the Executive’s duties hereunder,
provided, however, that the Executive may serve as a member of the board of directors of an entity if the Board, or an appropriate committee
thereof, determines in its sole discretion that such membership is not adverse to the interests of the Corporation.

 

    	 

    	 

    

 

ARTICLE
3

 

COMPENSATION
AND BENEFITS

 

3.1
Compensation. The base salary rate of the Executive shall be $50,000.00 per year payable bi weekly on the 1st and 15th
of the month. The Corporation shall review the Executive’s base salary rate annually. In its sole discretion, the Corporation
may increase this base salary rate or give a performance bonus and stock options to the Executive. The Corporation may withhold from
any amounts payable under this Employment Agreement such federal or provincial taxes and other statutory remittances as shall be required
by law to be so withheld.

 

3.2
Benefits. The Corporation shall provide the Executive (including the Executive’s immediate family) with group health, medical
and disability insurance benefits.

 

3.3
Vacation. The Executive shall be entitled to take three weeks of vacation per calendar year.

 

3.4
Incentive Bonus. The Executive shall be eligible for a discretionary cash bonus up to 100% of annual salary and a discretionary grant
of stock options pursuant to the Corporation’s stock option plan. The amount of such discretionary cash bonus and discretionary
grant of stock options, if any, is subject to the discretion of the board of directors of the Corporation.

 

ARTICLE
4

 

TERMINATION
AND RESIGNATION

 

4.1
Termination for Cause. The Corporation may immediately terminate the employment of the Executive at any time for cause by written
notice to the Executive. Without limiting the foregoing, any one or more of the following events shall constitute cause:

 

	 	(a)	theft,
    dishonesty, or other similar behaviour by the Executive;
	 	 	 
	 	(b)	any
    serious neglect of duty or serious misconduct of the Executive to the material detriment of the Corporation in discharging any of
    the Executive’s duties and responsibilities hereunder that is not cured within 10 days of written notification thereof to the
    Executive by the Corporation;
	 	 	 
	 	(c)	any
    conduct of the Executive which, in the opinion of the Board, is materially detrimental or embarrassing to the Corporation;
	 	 	 
	 	(d)	any
    serious default of the Executive’s obligations under this Employment Agreement to the material detriment of the Corporation
    that is not cured within 10 days of written notification thereof to the Executive by the Corporation;

 

    	 

    	 

    

 

	 	(e)	any
    failure of or refusal by the Executive to comply with the policies, rules and regulations of the Corporation that is not cured by
    the Executive within 10 days of written notification thereof to the Executive by the Corporation; or
	 	 	 
	 	(f)	any
    material misrepresentation by the Executive regarding the Executive’s background, educational, professional or other qualifications
    that the Company becomes aware of at any time during the term of this Agreement.

 

If
the Corporation terminates the employment of the Executive for cause under this Section 4.1, the Corporation shall not be obligated to
make any further payments under this Employment Agreement except amounts due and owing pursuant to Article 3 at the time of the termination.

 

4.2
Resignation by Executive. The Executive shall give the Corporation not less than two weeks notice of the resignation of the Executive’s
employment hereunder and, subject to the following sentence, the Executive’s employment shall terminate on the date specified in
the notice. Upon receipt of the Executive’s notice of resignation, or at any time thereafter, the Corporation shall have the right
to elect to pay the Executive’s salary for the remainder of the notice period and a reasonable amount in lieu of the Executive’s
benefits for that period in lieu of such notice, and if the Corporation so elects, the Executive’s employment shall terminate immediately
upon such payment.

 

4.3
Termination Without Cause. The Corporation may terminate the Executive’s employment at any time without cause by providing
the Executive with a notice in writing and compensation in lieu of notice as follows:

 

	 	(a)	the
    Corporation shall pay the Executive all outstanding and accrued base salary under Section 3.1 and vacation pay, earned and owing
    up to the last day of the Period of Active Employment, and shall reimburse the Executive for all proper expenses incurred by the
    Executive in connection with the Corporation’s business prior to the last day of the Period of Active Employment;
	 	 	 
	 	(b)	the
    Corporation shall pay the Executive an amount equal to two months base salary;
	 	 	 
	 	(c)	the
    Corporation shall continue the Executive’s benefit coverage if applicable for a period of two months, or alternatively, if
    it is unable to continue the Executive’s participation in one or more of its benefit plans, the Corporation shall pay the Executive
    an amount equal to the premium cost or contributions the Corporation would otherwise have made in respect of the Executive’s
    participation in the relevant plan(s) for two months.

 

The
Corporation shall make the payments required by Section 4.3(a) within 30 days after the last day of the Period of Active Employment.
The Corporation shall have the option of making the payments required by Section 4.3(b) in either in lump sum within 30 days after the
last day of the Period of Active Employment or in two equal monthly instalments commencing 30 days after the last day of the Period of
Active Employment. The Corporation shall make the payments and continue to provide the benefits required by this Section 4.3 whether
or not the Executive finds or seeks alternate employment. The Executive acknowledges and agrees that the severance compensation provided
for in this Section 4.3 is fair and reasonable and is the result of negotiation between the parties.

 

    	 

    	 

    

 

4.4
Disability. In this Employment Agreement, “Disability” means a physical or mental incapacity of the Executive
that has prevented the Executive from performing the duties customarily assigned to the Executive for 180 days, whether or not consecutive,
out of any 12 consecutive months and that in the opinion of the Corporation, acting on the basis of advice from a duly qualified medical
practitioner, is likely to continue to a similar degree. If the Corporation determines that the Executive has suffered a Disability that
cannot be accommodated, the Corporation may terminate the Executive’s employment by notice given to the Executive. If the Executive’s
employment terminates by reason of notice given under this Section 4.4, the Executive shall receive, in lieu of all amounts otherwise
payable hereunder (except for amounts earned but not yet paid to the Executive through the date of such Disability), compensation at
the Executive’s base salary rate for a period of six months following the date of Disability or such greater amount as is required
by applicable law.

 

4.5
Death. In the event of the Executive’s death, the Executive’s employment shall be deemed to have terminated on the date
of the Executive’s death and the Corporation shall pay the Executive’s estate the amounts specified in Section 4.3(a).

 

4.6
Results of Termination. Upon termination of the Executive’s employment, the Corporation shall have no further obligations or
responsibilities to the Executive hereunder or under any of the Corporation’s Executive benefit programs except as expressly provided
under Article 4, and nothing herein contained shall be construed to limit or restrict in any way the Corporation’s ability to pursue
any remedies it may have at law or equity pursuant to the provisions of this Employment Agreement.

 

ARTICLE
5

 

REPRESENTATIONS
AND WARRANTIES

 

5.1
Representations and Warranties. The Executive represents and warrants to the Corporation that the execution and performance of this
Employment Agreement will not result in or constitute a default, breach, or violation, or an event that, with notice or lapse of time
or both, would be a default, breach, or violation, of any understanding, agreement or commitment, written or oral, express or implied,
to which the Executive is a party or by which the Executive or the Executive’s property is bound. The Executive shall defend, indemnify
and hold the Corporation harmless from any liability, expense or claim (including solicitor’s fees incurred in respect thereof
and other legal fees on a full indemnity basis, without reduction for tariff rates or similar reductions) by any person in any way arising
out of, relating to, or in connection with any incorrectness of breach of the representations and warranties in this Section 5.1.

 

    	 

    	 

    

 

ARTICLE
6

 

MISCELLANEOUS
COVENANTS

 

6.1
Notices.

 

(1)
Any notice required or permitted to be given hereunder shall be in writing and shall be effectively given if (i) delivered personally,
(ii) sent by prepaid courier service or mail, or (iii) sent by e-mail or other similar means of electronic communication as follows:

 

	 	(a)	if
    to the Corporation, to:

 

Permex
Petroleum Corporation

 

500
– 666 Burrard Street, Vancouver BC V6C 2X8

 

Attention:
Mehran Ehsan

 

E-mail:

 

	 	(b)	if
    to the Executive, to:

 

Gregory
S. Montgomery

 

E-mail:
gregorysmontgomery@gmail.com

 

(2)
Any such communication given or made in any other manner shall be deemed to have been given or made and to have been received only upon
actual receipt. Any notice so given shall be deemed conclusively to have been given and received when so personally delivered or sent
by e-mail, or other electronic communication or on the second day following the sending thereof by private courier or mail. Any party
hereto may change any particulars of its address for service by notice to the other in the manner stated above.

 

(3)
Any party may from time to time change its address under this Section 6.4 by notice to the other party given in the manner provided by
this section.

 

6.2
Time of Essence. Time shall be of the essence of this Employment Agreement in all respects.

 

6.3
Entire Agreement. This Employment Agreement constitutes the entire agreement between the parties pertaining to the subject matter
of this Employment Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written.
There are no conditions, warranties, representations or other agreements between the parties in connection with the subject matter of
this Employment Agreement (whether oral or written, express or implied, statutory or otherwise) except as specifically set out in this
Employment Agreement.

 

    	 

    	 

    

 

6.4
Amendment. No amendment of this Employment Agreement shall be effective unless made in writing and signed by the Parties.

 

6.5
Waiver. Any purported waiver of any default, breach or non-compliance under this Employment Agreement shall not be effective unless
in writing and signed by the party to be bound by the waiver. No waiver shall be inferred from or implied by any failure to act or delay
in acting by a party in respect of any default, breach or non-observance or by anything done or omitted to be done by the other party.
The waiver by a party of any default, breach or non-compliance under this Employment Agreement shall not operate as a waiver of that
party’s rights under this Employment Agreement in respect of any continuing or subsequent default, breach or non-observance (whether
of the same or any other nature).

 

6.6
Severability. Any provision of this Employment Agreement that is prohibited or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of the prohibition or unenforceability and shall be severed from the balance of this Employment
Agreement, all without affecting the remaining provisions of this Employment Agreement or affecting the validity or enforceability of
such provision in any other jurisdiction.

 

6.7
Currency. All references to monetary amounts in this Employment Agreement are references to United States dollars, unless otherwise
stated.

 

6.8
Governing Law. This Employment Agreement shall be governed by and construed in accordance with the laws of the Province of British
Columbia and the laws of Canada applicable in that Province and shall be treated, in all respects, as a British Columbia contract.

 

6.9
Successors and Assigns. This Agreement shall enure to the benefit of, and be binding on, the parties and their respective heirs,
administrators, executors, successors and permitted assigns. The Corporation shall have the right to assign this Employment Agreement
to any successor (whether direct or indirect, by purchase, amalgamation, arrangement, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Corporation provided only that the Corporation must first require the successor to expressly assume
and agree to perform this Employment Agreement in the same manner and to the same extent that the Corporation would be required to perform
it if no such succession had taken place. The Executive by the Executive’s signature hereto expressly consents to such assignment.
The Executive shall not assign or transfer, whether absolutely, by way of security or otherwise, all or any part of the Executive’s
rights or obligations under this Employment Agreement without the prior consent of the Corporation, which may be arbitrarily withheld.

 

    	 

    	 

    

 

ARTICLE
7

 

EXECUTIVE’S
ACKNOWLEDGEMENT

 

7.1
Acknowledgment.

 

The
Executive acknowledges that: the Executive has had sufficient time to review this Employment Agreement thoroughly;

 

	 	(a)	the
    Executive has read and understands the terms of this Employment Agreement and the obligations hereunder;
	 	 	 
	 	(b)	the
    Executive has been given an opportunity to obtain independent legal advice concerning the interpretation and effect of this Employment
    Agreement; and,
	 	 	 
	 	(c)	the
    Executive has received a fully executed original copy of this Employment Agreement.

 

IN
WITNESS WHEREOF the parties have executed this Employment Agreement.

 

	 	 	/s/
    Gregory S. Montgomery
	 	 	GREGORY
    S. MONTGOMERY

 

	 	PERMEX
    PETROLEUM CORPORATION
	 	 	 
	 	By:	/s/
    Mehran Ehsan
	 	Name:	Mehran
    Ehsan 
	 	Title:	CEO
    & President

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