Document:

tat-ex103_8.htm

 

Exhibit 10.3

PLEDGE AGREEMENT

THIS PLEDGE AGREEMENT (this “Agreement”) is entered into as of this 19th day of April 2016, by and between TRANSATLANTIC PETROLEUM LTD., an exempted company incorporated with limited liability under the laws of Bermuda (“Secured Party”), and DALEA PARTNERS, LP, an Oklahoma limited partnership (“Pledgor”).

RECITALS

A.Reference is made to that certain Amended and Restated Promissory Note dated as of the date hereof between Pledgor, as payor, and Secured Party, as payee (as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, from time to time, the “Amended Note”).  The Amended Note amends and restates that certain Promissory Note dated June 13, 2012 between Pledgor, as payor, and Secured Party, as payee.

B.Pledgor is controlled by N. Malone Mitchell, 3rd (“Guarantor”).  The obligations of Pledgor under the Amended Note are guaranteed by Guarantor, pursuant to the Guaranty dated as of June 13, 2012 (the “Guaranty”).

C.Pledgor is the record and beneficial owner of $2,050,000 principal amount of those certain 13% Convertible Notes Due 2017 issued by Secured Party (the “13% Convertible Notes”) pursuant to the Indenture dated as of February 20, 2015, between Secured Party, as Issuer, and U.S. Bank National Association, as Trustee (the “Indenture”).  

D.The pledge made hereunder is intended to be an inducement to Secured Party to execute, deliver and accept the terms of the Amended Note and the other documents related thereto and Secured Party is relying upon this Agreement in entering into the Amended Note with Pledgor.

Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and as an inducement for Secured Party to enter into and accept the terms of the Amended Note, the parties hereto, intending to be legally bound, do hereby agree as follows:

SECTION 1
DEFINITIONS

1.1.Definitions and Rules of Construction.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the UCC (as defined herein) in effect on the date hereof.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, 

 

	
 
	
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instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified, (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time, (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to the restrictions contained in the applicable document), (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of any time period, the word “from” means “from and including” and the word “to” means “to and including” and (f) any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement.  No provision of this Agreement shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. 

1.2.Defined Terms.  In this Agreement, the following terms shall mean as follows:

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in Texas are authorized or required by law to remain closed.

“Collateral” shall mean, collectively and each individually, (i) the 13% Convertible Notes (and the certificates, if any, representing such notes); (ii) all rights of the holder of the 13% Convertible Notes under the Indenture and all principal, interest, premiums, securities of Secured Party and other property from time to time received, receivable or otherwise distributed or paid in respect of or in exchange for any or all of the foregoing; and (iii) any and all replacements, products and proceeds of, or with respect to, any of the foregoing.  

“Default” shall mean any event, fact, circumstance or condition that, with the giving of applicable notice or passage of time or both, would constitute, be or result in an Event of Default hereunder.

“Event of Default” shall mean the occurrence of any event set forth in Section V.

“Person” shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority or other entity.

“UCC” shall mean the Uniform Commercial Code, as in effect from time to time, of the State of Texas or of any other state the laws of which are required as a result thereof to be applied in connection with the attachment, perfection or priority of, or remedies with respect to, Secured Party’s lien on any Collateral.

 

	
 
	
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SECTION 2
COLLATERAL

2.1.Pledge of Collateral.

(a)As security for the due and punctual payment and performance by Pledgor of all of its obligations under the Amended Note, Pledgor hereby pledges and assigns to Secured Party and grants to Secured Party a continuing first priority security interest in and lien on, the Collateral and all proceeds thereof and all of its right, title and interest in and to the foregoing.

(b)Pledgor has delivered to Secured Party, all certificates representing the Collateral described in clause (i) of the definition of Collateral, and Pledgor will deliver to Secured Party, all certificates representing or evidencing the Collateral described in clauses (ii) and (iii) of the definition of Collateral within three (3) Business Days after such Collateral becomes evidenced by one or more certificates, in each case registered in the name of Pledgor, duly endorsed in blank or accompanied by a bond power or similar instrument duly executed by Pledgor in blank, in form and substance satisfactory to Secured Party, with any and all documentary tax stamps and other documents necessary to cause Secured Party to have a good, valid and perfected continuing first priority pledge of and lien on the Collateral (free and clear of any other liens), including, without limitation, any necessary notations in the organizational or other records or books of Secured Party or the Trustee, Definitive Custodian, Registrar or Paying Agent under the Indenture (the “Trustee”).  At any time following the occurrence of an Event of Default at the option of Secured Party, the Collateral or any part thereof may be registered in the name of Secured Party or of its nominees, and Pledgor covenants that, upon demand by Secured Party, Pledgor shall, and shall take such action as is necessary to enable the Secured Party, or cause the Trustee and any other Person, to effect such registration.

(c)Secured Party shall have the right, but not the obligation, to pay any taxes or levies on or relating to the Collateral and any costs to preserve the Collateral, which payments shall be made for the account of Pledgor and shall constitute a part of the obligations secured hereby.

(d)Pledgor will not permit the Collateral or any portion thereof to be held in a securities account unless Secured Party has been given “control” (within the meaning of Section 8-106 and/or Section 9-106 of the UCC, as applicable) over such securities account and the Collateral therein; provided that such “control” shall not be required until five (5) Business Days after the date hereof with respect to any Collateral held in a securities account on the date hereof. 

(e)Within three (3) Business Days of any request by Secured Party, Pledgor, at its own cost and expense, will duly execute and deliver to Secured Party such financing statements, continuation statements, assignments, certificates and/or such other agreements, assignments, instructions or documents as Secured Party may reasonably request relating to the Collateral or otherwise to enable Secured Party to create, maintain and perfect or from time to time renew the security interests granted hereby or to create, 

 

	
 
	
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maintain and perfect a security interest in any and all additions to and/or replacements, products and proceeds of any of the Collateral, all in form and substance reasonably satisfactory to Secured Party.  Pledgor will pay all reasonable costs associated therewith, including without limitation, the cost of filing any of the foregoing in all public offices or other locations wherever Secured Party deems filing to be necessary or reasonably desirable in order to perfect its security interest in the Collateral.  Pledgor irrevocably grants Secured Party the right, at Secured Party’s option, to file any or all of the foregoing pursuant to the UCC and otherwise without Pledgor’s signature, and Pledgor irrevocably appoints Secured Party as Pledgor’s attorney in fact to execute any of the foregoing in Pledgor’s name and to perform all other acts that are required to perfect and continue the security interests conferred by this Agreement. 

2.2.Voting Rights, Certain Permitted Transactions, Interest and Principal.

(a)So long as no Event of Default shall have occurred and be continuing or would result from or be caused by the following, Pledgor shall be entitled to exercise any and all voting and/or consensual rights and powers given to “Securityholder” under the Indenture or the organizational documents of the Secured Party relating or pertaining to the Collateral or any part thereof, subject to the terms hereof.  Upon the occurrence of an Event of Default, all rights of Pledgor to exercise voting and/or consensual rights and powers that Pledgor is entitled to exercise and/or receive pursuant to this Section 2.2 shall cease immediately upon written notice by Secured Party to Pledgor, and all such rights thereupon shall become vested solely and exclusively in Secured Party, automatically without any action by any Person.  Pledgor hereby appoints Secured Party its attorney-in-fact, with full power of substitution, which appointment as attorney-in-fact is irrevocable and coupled with an interest, to take all such actions upon or after the occurrence of an Event of Default, whether in the name of Secured Party or Pledgor, as Secured Party may consider necessary or desirable for the purpose of exercising such rights.

(b)So long as no Event of Default shall have occurred and be continuing or would result from or be caused by the following, Pledgor may cause the Collateral consisting of the 13% Convertible Notes to be exchanged or converted, or permit such Collateral to be redeemed; provided, however, that Pledgor may only exchange or convert such Collateral or permit such Collateral to be redeemed if the consideration received for, or resulting from, such exchange, conversion or redemption consists solely of cash and/or other equity or debt securities of Secured Party (“Permitted Consideration”); and provided further, however, that:

	
 
	
(1)
	
Any Permitted Consideration consisting of cash shall be immediately paid to Secured Party and applied by Secured Party as a prepayment by Pledgor of the outstanding principal balance of the Amended Note until the outstanding principal balance of the Amended Note is paid in full; thereafter, any remaining Permitted Consideration consisting of cash shall be applied by Secured Party as payment by Pledgor of any interest on the Amended Note then accrued and unpaid.  Any Permitted Consideration consisting of cash remaining after indefeasible payment in full of all amounts 

 

	
 
	
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outstanding under the Amended Note and this Agreement shall be promptly returned by Secured Party to Pledgor, unless otherwise required by law. 

	
 
	
(2)
	
Any Permitted Consideration consisting of securities of Secured Party shall be retained by Secured Party, or, if delivered to Pledgor, shall be held in trust for the benefit of Secured Party and forthwith delivered to Secured Party, and shall be considered as part of the Collateral for all purposes of this Agreement.

(c)Any amount paid as interest on the Collateral and any other distributions made on the Collateral (such as dividends on Collateral consisting of securities of Secured Party) shall be immediately paid to Secured Party (1) and applied by Secured Party as a prepayment by Pledgor of the outstanding principal balance of the Amended Note; and (2) after payment in full of the outstanding principal balance of the Amended Note, any remaining amount shall be applied as payment by Pledgor of any interest on the Amended Note that is then accrued and unpaid.

(d)Any interest, principal, dividends and other distributions paid or made on or in respect of the Collateral, and any and all cash and other property received in exchange therefor and/or redemption of any Collateral, delivered to Pledgor shall be held in trust for the benefit of Secured Party and forthwith shall be delivered to Secured Party to be held and applied in accordance with this Agreement.

SECTION 3
REPRESENTATIONS, WARRANTIES AND COVENANTS

3.1.Collateral.  Pledgor hereby represents and warrants to Secured Party as of the date hereof (which representations and warranties shall survive the execution and delivery of this Agreement) as follows:  

(a)Pledgor is, or, with respect to the Collateral described in clauses (ii) and (iii) of the definition of Collateral, will be, the direct record and beneficial owner of each note, share, security and other interest that comprises the Collateral, and Pledgor has and will have good title thereto, free and clear of all liens other than those created by this Agreement; 

(b)All of the Collateral has been, or, with respect to the Collateral described in clauses (ii) and (iii) of the definition of Collateral, will be, duly and validly issued, fully paid and nonassessable; 

(c)The Collateral is and will be duly and validly pledged to Secured Party in accordance with law, and upon Secured Party having (i) taken possession of all certificates representing the Collateral, in each case registered in the name of Pledgor, duly endorsed in blank or accompanied by a bond power or similar instrument duly executed by Pledgor in blank and (ii) properly filed a UCC financing statement with the secretary of state of the State of Oklahoma, the state in which Pledgor is organized, and 

 

	
 
	
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maintaining the effectiveness of that filing, Secured Party has and will have a good, valid and perfected first priority lien on and security interest in the Collateral and the proceeds thereof subject to no other liens, and no filing or other action will be necessary to perfect or protect such lien other than delivery of certificates representing the Collateral to Secured Party and the filing of appropriate UCC financing statements; and  

(d)The Collateral is certificated and is classified as “securities” under the terms of Article 8 of the UCC. Pledgor has full legal authority and power to own the Collateral and to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereunder, and Pledgor is under no legal restriction, limitation or disability that would prevent any of the foregoing.  No financing statement relating to any of the Collateral is on file in any public office, except those in favor of Secured Party.

3.2.Authorization.  Pledgor is duly formed, validly existing and in good standing under the laws of the State of Oklahoma and is qualified and has full legal capacity and all requisite power, right and authority to (a) own the Collateral, (b) execute, deliver and perform this Agreement, (c) pledge the Collateral, and (d) grant the security interests and liens in the Collateral pursuant to this Agreement and otherwise consummate the transactions contemplated under this Agreement.  This Agreement has been duly executed and delivered by Pledgor and constitutes the legal, valid and binding obligation of Pledgor, enforceable against Pledgor in accordance with its terms.  No approval, consent, authorization of, filing registration or qualification with, or other action by, Pledgor or any other Person or governmental authority is or will be necessary to permit the valid execution, delivery and performance of this Agreement by Pledgor or the consummation of the transactions or creation of the liens and security interests contemplated hereby other than delivery of certificates representing the Collateral to Secured Party and the filing of appropriate UCC financing statements in the State of Oklahoma.

3.3.No Conflicts.  The execution, delivery and performance by Pledgor of this Agreement and the consummation of the transactions contemplated hereby and the creation and granting of the security interests and liens contemplated hereby do not and will not (a) conflict with or violate any provision of any applicable law, statute, rule, regulation, ordinance, license or tariff or any judgment, decree or order of any court or other governmental authority binding on or applicable to Pledgor or any of its properties or assets; (b) conflict with, result in a breach of, constitute a default of or an event of default under, or an event, fact, condition or circumstance that, with notice or passage of time, or both, would constitute or result in a conflict, breach, default or event of default under, require any consent not obtained under, or result in or require the acceleration of any indebtedness pursuant to, any indenture, agreement or other instrument to which Pledgor is a party or by which it, or any of its properties or assets are bound or subject; (c) conflict with any agreement by and between Pledgor and the shareholders or noteholders of Secured Party or among any such shareholders or noteholders; or (d) result in the creation or imposition of any lien of any nature whatsoever upon any of the properties or assets of Pledgor (except as contemplated herein).

 

	
 
	
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3.4.Non-Subordination.  Except to the extent required by applicable law, the obligations of Pledgor under this Agreement are not subordinated in any way to any other obligation of Pledgor or to the rights of any other Person, and Pledgor is not a party to or bound by any other agreement, document or instrument that otherwise relates to the Collateral (other than this Agreement). 

3.5.Litigation and Compliance; Other Agreements.

(a)There is no action, suit, proceeding or investigation pending or, to Pledgor’s knowledge, threatened against or affecting the Collateral, Pledgor, this Agreement or the transactions contemplated hereby that could reasonably be expected to prevent the validity of this Agreement or the right or ability of Pledgor to enter into this Agreement or to consummate the transactions contemplated hereby.

(b)Pledgor is not a party to any judgment, order or decree or any agreement, document or instrument, or subject to any restriction, that would adversely affect its ability to execute and deliver, or perform under, this Agreement.

3.6.Covenants.

(a)Pledgor shall cause each Person whose securities or other ownership interests constitute part of the Collateral to, take all reasonably necessary and appropriate actions to ensure that this Agreement and the liens and pledges created hereby are and remain enforceable against Pledgor in accordance with their terms and that Pledgor complies with each of its obligations hereunder.

(b)Pledgor (i) shall (A) maintain at all times the pledge of the Collateral to Secured Party and Secured Party’s perfected first priority lien on the Collateral; and (B) defend the Collateral and Secured Party’s perfected first priority lien thereon and pledge thereof against all valid claims and demands of all Persons at any time and pay all reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) and (ii) except as permitted by Section 2.2(b), shall not sell, lease, transfer, pledge, encumber, restrict, assign or otherwise dispose of any of the Collateral or any interest therein or create, incur, assume or suffer to exist any lien on the Collateral or any interest therein (except pursuant hereto or with Secured Party’s prior written consent).

(c)Pledgor shall (i) keep true, complete and accurate records with respect to the Collateral and (ii) not knowingly take any action in connection with the Collateral or otherwise that would impair in any material respect the value of the interests or rights of Pledgor or Secured Party therein.

(d)Pledgor shall promptly, and in any event within ten (10) Business Days thereafter, notify Secured Party of any change of its state of organization or legal name.

(e)Pledgor shall furnish to Secured Party such additional information regarding the Collateral as Secured Party may reasonably request from a credit or security perspective or otherwise from time to time.

 

	
 
	
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(f)Pledgor will not permit the Collateral or any portion thereof to be held in a securities account unless Secured Party has been given “control” (within the meaning of Section 8-106 and/or Section 9-106 of the UCC, as applicable) over such securities account and the Collateral therein; provided that such “control” shall not be required until five (5) Business Days after the date hereof with respect to any Collateral held in a securities account on the date hereof. 

(g)Within three (3) Business Days after the date of this Agreement, Pledgor will irrevocably instruct the Trustee and the Paying Agent (with a copy to Secured Party) to deliver to Secured Party any amounts paid to Trustee or the Paying Agent in respect of the Collateral and any other distributions received by the Trustee or the Paying Agent in respect of the Collateral (such as dividends on Collateral consisting of securities of Secured Party), which amounts and distributions shall be applied by the Secured Party in accordance with Section 2.2.  Pledgor hereby appoints Secured Party its attorney-in-fact, with full power of substitution, which appointment as attorney-in-fact is irrevocable and coupled with an interest, to take all such actions, whether in the name of Secured Party or Pledgor, as Secured Party may consider necessary or desirable for the purpose of instructing the Trustee and the Paying Agent as aforesaid.

3.7.No Third Party Beneficiary.  No rights are intended to be created under this Agreement for the benefit of any third party donee, creditor or incidental beneficiary of Pledgor.

SECTION 4
EVENTS OF DEFAULT

The occurrence of any one or more of the following shall constitute an “Event of Default” under this Agreement: (a) Pledgor shall be in violation, breach or default of, or shall fail to perform, observe or comply with any covenant, obligation or agreement set forth in this Agreement and such failure shall not be cured within the applicable cure period, if any; (b) any Event of Default (as defined in the Amended Note) shall occur and be continuing which shall not have been waived by Secured Party in writing; (c) Guarantor fails to perform or comply with any of its obligations under the Guaranty or the Guaranty ceases to be in full force and effect; or (d) if prior to termination of this Agreement pursuant to Section 6.10 hereof, this Agreement shall cease to be in full force and effect or any lien created hereunder shall cease to constitute a valid perfected first priority lien on any of the Collateral or Secured Party otherwise ceases to have a valid perfected first priority lien on and security interest in any of the Collateral.

SECTION 5
RIGHTS AND REMEDIES

5.1.Rights and Remedies.

(a)In addition to the provisions set forth in this Agreement, upon the occurrence and during the continuation of an Event of Default, Secured Party shall have all rights, powers, options and remedies provided for in the Amended Note and/or in this Agreement, under the UCC or at law or in equity, including, without limitation, to the fullest extent permitted by applicable law, the right to, which Pledgor agrees to be 

 

	
 
	
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commercially reasonable, (i) apply the Collateral to reduce the obligations of the Pledgor under the Amended Note, (ii) foreclose the liens created hereunder, (iii) realize upon, take possession of and/or sell the Collateral, with or without judicial process, at public or private sales or at any broker’s board or on any securities exchange or otherwise with or without a disclaimer of warranties as to the Collateral sold, (iv) exercise all rights and powers with respect to the Collateral as Pledgor might exercise in its sole discretion, including, without limitation, to (1) relinquish or abandon any Collateral or any lien thereon, (2) vote all or any part of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof, (3) settle, adjust, compromise and arrange all claims and demands whatsoever in relation to all or any part of the Collateral, (4) execute all such contracts, agreements, deeds, documents and instruments, bring, defend and abandon all such actions, suits and proceedings, and take all actions in relation to all or any part of the Collateral, and/or (5) appoint managers, sub-agents and officers for any of the purposes mentioned in the foregoing provisions of this Section and dismiss the same, and/or (v) collect and send notices regarding the Collateral, with or without judicial process.  Secured Party shall have the right in its sole discretion to determine which rights and/or remedies Secured Party may at any time pursue, relinquish, subordinate or modify, and such determination will not in any way modify or affect any of Secured Party’s rights, liens or remedies under the Amended Note, this Agreement, applicable law or equity.  The enumeration of any rights and remedies in this Agreement is not intended to be exhaustive, and all rights and remedies of Secured Party described in this Agreement are cumulative and are not alternative to or exclusive of any other rights or remedies that Secured Party otherwise may have.  The partial or complete exercise of any right or remedy shall not preclude any other further exercise of such or any other right or remedy. 

(b)Notwithstanding any provision of this Agreement, Secured Party, in its sole discretion, shall have the right, but not the obligation, at any time that Pledgor fails to do so, to discharge taxes, levies or liens on any of the Collateral that are in violation of this Agreement unless Pledgor is in good faith with due diligence by appropriate proceedings contesting those items.  Such expenses and advances shall be added to the obligations of the Pledgor under the Amended Note until reimbursed to Secured Party and shall be secured by the Collateral, and such payments by Secured Party shall not be construed as a waiver by Secured Party of any Event of Default or any other rights or remedies of Secured Party.

 

	
 
	
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(c)Pledgor agrees that notice received by it at least ten (10) calendar days before the time of any intended public sale, or the time after which any private sale or other disposition of Collateral is to be made, shall be deemed to be reasonable notice of such sale or other disposition.  At any sale or disposition of Collateral, Secured Party may (to the extent permitted by applicable law) (i) purchase all or any part thereof free from any right of redemption by Pledgor or any other Person, which right is hereby waived and released, (ii) restrict the number of prospective bidders or purchasers and/or further restrict such prospective bidders or purchasers to Persons who will represent and agree that they are purchasing for their own account, for investment and not with a view to the distribution or resale of the Collateral, and (iii) otherwise require that such sale be conducted subject to restrictions as to such other matters as Secured Party may deem necessary in order that such sale may be effected in such manner as to comply with all applicable state and federal securities and other laws. 

(d)Pledgor hereby acknowledges that (i) notwithstanding that a higher price might be obtained for the Collateral at a public sale than at a private sale or sales, the making of a public sale of the Collateral may be subject to registration requirements under applicable securities laws and other legal restrictions, compliance with which would require such actions on the part of Pledgor, would entail such expenses and would subject Secured Party, any underwriter through whom the Collateral may be sold or any controlling person of any of the foregoing to such liabilities, as would make a public sale of the Collateral impractical, and accordingly, Pledgor hereby agrees that private sales made by Secured Party in good faith in accordance with the provisions of this Agreement may be at prices and on other terms less favorable to the Pledgor than if the Collateral were sold at a public sale, and that Secured Party shall not have any obligation to take any steps in order to permit the Collateral to be sold at a public sale, such a private sale being considered or deemed to be a sale in a commercially reasonable manner; and (ii) Secured Party is hereby authorized to comply with any limitation or restriction in connection with such sale that may be necessary in order to avoid any violation of applicable law or in order to obtain any required approval of the purchaser(s) by any governmental authority, officer or court.

5.2.Rights of Secured Party to Appoint Receiver.  Without limiting and in addition to any other rights, options and remedies Secured Party has hereunder or under the Amended Note, the UCC, at law or in equity, upon the occurrence and during the continuation of an Event of Default, Secured Party shall have the right to apply for a receiver appointed by a court of competent jurisdiction in any action taken by Secured Party to enforce its rights and remedies in order to manage, protect and preserve the Collateral and to collect all revenues and profits thereof and apply the same to the payment of all expenses and other charges of such receivership including the compensation of the receiver and to the payments as aforesaid until a sale or other disposition of such Collateral shall be finally made and consummated.

 

	
 
	
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SECTION 6
MISCELLANEOUS

6.1.No Waiver of Defaults; Waiver.

(a)No course of action or dealing, renewal, waiver, release or extension of any provision of the Amended Note or this Agreement, or single or partial exercise of any such provision, or delay, failure or omission on Secured Party’s part in enforcing any such provision shall affect the liability of Pledgor or operate as a waiver of such provision or preclude any other or further exercise of such provision.  No waiver by Secured Party of any one or more defaults by any other party in the performance of any of the provisions of the Amended Note or this Agreement shall operate or be construed as a waiver of any future default, whether of a like or different nature, and each such waiver shall be limited solely to the express terms and provisions of such waiver.

(b)Except as expressly provided for herein, Pledgor hereby waives setoff, counterclaim, demand, presentment, protest, all defenses with respect to any and all instruments and all notices and demands of any description (including, without limitation, notice of acceptance hereof, credit extended, collateral received or delivered) and the pleading of any statute of limitations as a defense to any demand under the Amended Note, it being the intention that Pledgor shall remain liable under the Amended Note until the Amended Note has been fully repaid in accordance with its terms, notwithstanding any act, omission or anything else which might otherwise operate as a legal or equitable discharge of Pledgor.  Pledgor hereby waives any and all defenses and counterclaims it may have or could interpose in any action or procedure brought by Secured Party to obtain an order of court recognizing the assignment of, or lien of Secured Party in and to, any Collateral.

6.2.Entire Agreement.  This Agreement constitutes the entire agreement between Pledgor and Secured Party with respect to the subject matter hereof and thereof, and supersedes all prior agreements and understandings, if any, relating to the subject matter hereof or thereof.  Any promises, representations, warranties or guarantees not herein contained and hereinafter made shall have no force and effect unless in writing signed by the parties hereto.  Each party hereto acknowledges that it has been advised by counsel in connection with the negotiation and execution of this Agreement and is not relying upon oral representations or statements inconsistent with the terms and provisions hereof.

6.3.Amendment.  No provision of this Agreement may be changed, modified, amended, restated, waived, supplemented, discharged, canceled or terminated orally or by any course of dealing or in any other manner other than by a written agreement signed by Secured Party and Pledgor. This Agreement may not be amended or restated, or released (other than as set forth in the terms hereof) without the prior approval of a majority of those directors of Secured Party who are not also officers or employees of Secured Party.

6.4.Notices.  Any notice or request under this Agreement shall be given to any party hereto in accordance with the notice provision set forth in the Amended Note at the address set forth on the signature page hereto.

 

	
 
	
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6.5.Governing Law; Jurisdiction; Construction.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Texas without giving effect to its choice of law provisions.  To the extent permitted by law, Pledgor and Secured Party agree that any judicial proceeding with respect to any of the Collateral or this Agreement shall be brought in any federal or state court of competent jurisdiction located in Dallas County in the State of Texas.  By execution and delivery of this Agreement, to the extent permitted by law, each of Pledgor and Secured Party (a) accepts the jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any judgment rendered thereby, (b) waives personal service of process, (c) agrees that service of process upon it may be made by certified or registered mail, return receipt requested, pursuant to Section 6.4 hereof, and (d) waives any objection to jurisdiction and venue of any action instituted hereunder and agrees not to assert any defense based on lack of jurisdiction, venue, convenience or forum non conveniens.  Nothing shall affect the right of Secured Party or Pledgor to serve process in any manner permitted by law. 

6.6.Severability; Captions; Counterparts; Facsimile Signature.  If any provision of this Agreement is adjudicated to be invalid under applicable laws or regulations, such provision shall be inapplicable to the extent of such invalidity without affecting the validity or enforceability of the remainder of this Agreement which shall be given effect so far as possible.  The captions in this Agreement are intended for convenience and reference only and shall not affect the meaning or interpretation of this Agreement.  This Agreement may be executed in one or more counterparts (which taken together, as applicable, shall constitute one and the same instrument) and by facsimile or electronic transmission, which such signatures shall be considered original executed counterparts.  Each party to this Agreement agrees that it will be bound by its own facsimile or electronic signature and that it accepts the facsimile or electronic signature of each other party.

6.7.Successors and Assigns.  All provisions contained in this Agreement shall be binding upon, inure to the benefit of and be enforceable by the successors and assigns of the parties hereto to the same extent as if each such successor and assign were named as a party hereto.

6.8.Waiver of Jury Trial.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION ARISING HEREUNDER OR IN ANY WAY CONNECTED WITH OR INCIDENTAL TO THE DEALINGS OF THE PARTIES WITH RESPECT HERETO OR THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES TO THE WAIVER OF THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY.

6.9.Expenses.  Pledgor shall pay to Secured Party all costs and expenses incurred by Secured Party and reasonable attorneys’ fees and expenses (a) in any effort to enforce this Agreement against Pledgor, (b) in defending or prosecuting any actions, claims or proceedings 

 

	
 
	
12
	
Pledge Agreement

 

 

by or against Pledgor arising out of or relating to this Agreement and/or the Collateral and (c) arising in any way out of the taking or refraining from taking by Secured Party of any action requested by Pledgor. 

6.10.Termination.  This Agreement shall continue in full force and effect until full performance and payment in full in cash of all obligations under the Amended Note.  The liens granted to Secured Party hereunder and any financing statements filed pursuant hereto and the rights and powers of Secured Party shall continue in full force and effect until full performance and payment in full in cash of all obligations under the Amended Note.

6.11.Release of Collateral.  Promptly following the payment in full in cash of all obligations under the Amended Note, the liens created hereby shall automatically terminate and Secured Party shall execute and deliver such documents as are necessary or desirable to release its liens in the Collateral and shall return the Collateral to Pledgor.

6.12.Guarantor Acknowledgment. The Guarantor hereby (i) acknowledges and agrees that its obligations in respect of the Guaranty are not released, diminished, waived, modified, impaired or affected in any manner by this Agreement or any of the provisions contemplated herein and (ii) agrees to take any and all such further actions as may be necessary to cause Pledgor to perform all its obligations to Secured Party pursuant to the terms of this Agreement. 

[Remainder of page intentionally left blank; signature page follows]

 

 

	
 
	
13
	
Pledge Agreement

 

 

IN WITNESS WHEREOF, each of the parties hereto has duly executed this Pledge Agreement as of the date first written above.

PLEDGOR:

 

DALEA PARTNERS, LP

By: Dalea Management, LLC, its 

General Partner

 

 

 

By: /s/ N. Malone Mitchell, 3rd

Name: N. Malone Mitchell, 3rd

Title: Manager

 

Address:

16803 North Dallas Parkway

Addison, TX  75001

 

 

 

 

 

	
 
	
Signature Page
	
Pledge Agreement

 

 

SECURED PARTY:

 

TRANSATLANTIC PETROLEUM LTD.

 

 

 

By:  /s/ Chad D. Burkhardt
Name: Chad D. Burkhardt
Title: Vice President 

 

Address:

 

16803 North Dallas Parkway

Suite 200

Addison, Texas  75001

 

	
 
	
Signature Page
	
Pledge Agreement

 

 

The foregoing Pledge Agreement

is hereby acknowledged and accepted

as of the date first above written

 

GUARANTOR

 

By: /s/ N. Malone Mitchell, 3rd_________

N. Malone Mitchell, 3rd

 

		
	
Address:
	
  16803 North Dallas Parkway

	
 
	
  Addison, TX  75001

 

 

 

	
 
	
Signature Page
	
Pledge AgreementAGREEMENT
AND PLAN OF MERGER

 

 

AGREEMENT AND PLAN OF MERGER
(this “Agreement”) dated as of April 22, 2016 by and among Opulent Acquisition, Inc., a Delaware corporation
(“Ihealthcare-Delaware”), Ihealthcare, Inc., a Florida corporation ( “Ihealthcare-Florida”)
in accordance with Sections 251& 252 of the General Corporation Law of the State of Delaware (the “DGCL”) and
Section 617.1107 of the Florida Business Corporations Act, (“FLBCA”), together the “Constituent Corporations”
and each a “Constituent Corporation”. The effective date of the Merger
(“Effective Time”) shall be upon acceptance of the Articles of Merger for filing with the Delaware Secretary
of State.

 

RECITALS:

 

WHEREAS  Ihealthcare-Florida
is a corporation organized on September 8, 2015 and existing and in good standing under the laws of the State of Florida.

 

The total
number of shares of all classes of capital stock that Ihealthcare-Florida has authority to issue is 10,000 shares, consisting
of: 10,000 shares of Common Stock, no par value per share (“Ihealthcare-Florida Common Stock”). There are 10,000
shares of Ihealthcare-Florida Common Stock issued and outstanding and held by the following shareholders, (“Founding
Shareholders”):

 

NAME
                 No. Shares

 

	 	1)	Noel Mijares               
    6,250 

	 	2)	David A. Bingaman     3,750 

 

WHEREAS Ihealthcare-Delaware
is a corporation organized on November 25, 2014 and existing and in good standing under the laws of the State of Delaware.

 

The total number of shares
of all classes of capital stock that Ihealthcare-Delaware has authority to issue is 520,000,000, consisting of: 500,000,000 shares
of common stock, $.0001 par value per share, (“Ihealthcare-Delaware Common Stock”) and 20,000,000 shares of
preferred stock, $.0001 par value per share, (“Ihealthcare-Delaware Preferred Stock”). There are 20,000,000
shares of Ihealthcare-Delaware Common Stock issued and outstanding and held by Ihealthcare-Florida.

 

WHEREAS
Mr. Noel Mijares is the Chairman of the Board of Directors, Chief Executive Officer, and President of Ihealthcare-Delaware
and Ihealthcare-Florida. Mr. David
A. Bingaman is the Chief Operating Officer, Vice President, and Secretary of Ihealthcare-Delaware and Ihealthcare-Florida. Mr.
Noel Mijares will remain as the Chairman of the Board of Directors, Chief Executive Officer, and President and Mr. David A. Bingaman
will remain as the Chief Operating Officer, Vice President, and Secretary of Ihealthcare-Delaware at the Effective Time of Merger.

 

WHEREAS the respective
board of directors of each Constituent Corporation and majority shareholders of each Constituent Corporation has approved this
Agreement after careful consideration and declared it advisable, and in the best interests of the Constituent Corporations, and
their respective shareholders that Ihealthcare-Florida merge with and into Ihealthcare-Delaware with Ihealthcare-Delaware as the
Surviving Corporation.

 

WHEREAS the requisite
vote of the majority shareholders of each of the Constituent Corporations have approved the terms and conditions set forth in
this agreement by unanimous consent at a shareholder meeting pursuant to DGCL and FLBCA.

 

NOW THEREFORE, in consideration
of the promises, the mutual covenants herein contained and other good and valuable consideration the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree that Ihealthcare-Florida shall be merged with and into Ihealthcare-Delaware
(the “Merger”) upon the terms and conditions set forth below.

 

ARTICLE
1

 

PRINCIPAL
TERMS OF THE MERGER 

 

1.1
 Merger. At the Effective Time, Ihealthcare-Florida shall be merged with
and into Ihealthcare-Delaware, and the separate existence of Ihealthcare-Florida shall cease. Ihealthcare-Delaware shall be the
surviving corporation, (sometimes herein referred to as the “Surviving Corporation”) in the Merger by virtue
of, and shall be governed by, the laws of the state of Delaware.

 

 

 

                                          GOVERNANCE
AND OTHER MATTERS

 

1.2
Certificate of Incorporation. At the Effective Time, the Certificate of Incorporation
of Ihealthcare-Delaware shall be restated as set forth in EXHIBIT A attached hereto (the “Restated Certificate of
Incorporation”) and shall be filed with the Secretary of State of the State of Delaware. As set forth therein, the Surviving
Corporation shall be renamed “IHEALTHCARE, INC.” upon the filing of the Certificate of Incorporation.

 

1.3
Bylaws. At the Effective Time, the Bylaws of Ihealthcare-Delaware shall be as set forth in EXHIBIT B attached
hereto (the “Bylaws”), and shall be adopted as such by the Board of Directors of Ihealthcare-Delaware. Thereafter,
the Bylaws may be amended by the Board of Directors or stockholders of Ihealthcare-Delaware as provided in the Bylaws and, as
applicable, the Certificate of Incorporation.

 

1.4
Directors and Officers. The members of the Board of Directors and the officers of Ihealthcare-Delaware immediately
prior to the Effective Time shall continue in office following the Effective Time as directors and officers of Ihealthcare-Delaware,
respectively, until the expiration of their respective terms of office and until their successors have been duly elected and have
qualified, or until their earlier death, resignation or removal. After the Effective Time, Ihealthcare-Delaware and its Board
of Directors shall take any necessary actions to cause each of such individuals to be appointed or to confirm such appointments.

 

1.5
Shareholders Agreement of Ihealthcare-Florida. The Shareholders Agreement of Ihealthcare-Florida shall continue
to be as in effect and deemed to be assumed by Ihealthcare-Delaware at the Effective Time without change unless and until amended
or repealed in accordance with applicable law.

 

 

 

ARTICLE
2

 

CONVERSION,
CERTIFICATES AND PLANS 

 

 

2.1. Effect of the Conversion
on the Common Stock of Ihealthcare-Florida. Subject to the terms and conditions of this merger, at the Effective Time, automatically
by virtue of the merger and without any further action on the part of Ihealthcare-Florida, Ihealthcare-Delaware or any shareholder
or stockholder thereof, respectively, each share of common stock, par value $0.0001 per share of Ihealthcare-Delaware held by
Ihealthcare-Florida immediately before the Effective Time shall be cancelled.

 

Each share issued and outstanding
of Ihealthcare-Florida held by the Founding Shareholders shall convert into one hundred validly issued, fully paid and nonassessable
shares of common stock, par value $0.0001 per share of Ihealthcare-Delaware.

 

Ihealthcare-Delaware shall
not issue fractional shares with respect to the conversion. Any fractional share of Ihealthcare-Delaware Common Stock that would
otherwise be issued as a result of the conversion will be rounded up to the nearest whole share.

 

Following the Effective Time,
all Ihealthcare-Florida Common Stock held by the Founding Shareholders shall no longer be outstanding and shall automatically
be canceled and retired and shall cease to exist, and each holder of Ihealthcare-Florida’s common stock immediately prior
to the Effective Time shall cease to have any rights with respect thereto.

     
            

 

 

 2.2
Reorganization. For United States federal income tax purposes, the Merger is intended to constitute a tax-free reorganization
within the meaning of section 368(a) of the Internal Revenue Code of 1986, as amended. The parties to this Agreement hereby adopt
this Agreement as a “plan of reorganization” within the meaning of sections 1.368-2(g) and 1.368-3(a) of the United
States Treasury Regulations.

 

2.3 Stock Certificates.
From and after the Effective Time, all of the outstanding certificates that prior to that time represented shares of Ihealthcare-Florida’s
common stock shall be deemed for all purposes to evidence ownership of and to represent the shares of Ihealthcare-Delaware’s
Common Stock into which the shares represented by such certificates have been converted as provided herein. The registered owner
on the books and records of Ihealthcare-Delaware or its transfer agent of any such outstanding stock certificate shall, until
such certificate shall have been surrendered for transfer or conversion or otherwise accounted for to Ihealthcare-Delaware or
its transfer agent, have and be entitled to exercise any voting and other rights with respect to and to receive any dividend and
other distributions upon the shares of Ihealthcare-Delaware evidenced by such outstanding certificate as provided above.

 

2.4 . Employee Benefit
and Compensation Plans. At the Effective Time, each employee benefit plan, incentive compensation plan, stock purchase
plan, stock option agreement and other similar plans and agreements to which Ihealthcare-Florida is then a party shall be automatically
assumed by, and continue to be the plan of Ihealthcare-Delaware, without further action by Ihealthcare-Florida or Ihealthcare-Delaware
or any other party thereto. To the extent any employee benefit plan, incentive compensation plan, stock option agreement or other
similar plan provides for the issuance or purchase of, or otherwise relates to Ihealthcare-Florida’s common stock, after
the Effective Time, such plan or agreement shall be deemed to provide for the issuance or purchase of, or otherwise relate to,
the common stock of Ihealthcare-Delaware.

 

2.5 Outstanding Awards.
At the Effective Time, all outstanding stock options, purchase rights, restricted stock awards and other stock awards relating
to Ihealthcare-Florida Common Stock shall, by virtue of the Conversion and without any further action on the part of Ihealthcare-Florida,
Ihealthcare-Delaware or the holder thereof, continue on the same terms and conditions and be assumed by Ihealthcare-Delaware,
provided that all such awards shall be deemed to provide for the issuance or purchase of, or otherwise relate to, the the common
stock of Ihealthcare-Delaware.

 

2.6
Filings, Licenses, Permits, Etc. As necessary, following the Effective Time, Ihealthcare-Delaware shall apply for new qualifications
to conduct business (including doing business as a foreign corporation), licenses, permits and similar authorizations on its behalf
and in its own name in connection with the merger if Ihealthcare-Delaware is to conduct business in the state of Florida or other
foreign jurisdiction to reflect the fact that it is a Delaware corporation.

 

 

ARTICLE
3

 

TRANSFER
AND CONVEYANCE OF ASSETS AND ASSUMPTION OF LIABILITIES 

 

3.1 Effects
of the Merger. At the Effective Time, the Merger shall have the effects specified in Sections 251 & 252 of the DGCL.
Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, the Surviving Corporation shall
possess all the rights, privileges, immunities, and franchises, as well of a public as of a private nature, of each of the merging
corporations; and all property, real, personal, and mixed, all debts due on whatever account, including subscriptions to shares,
all other choses in action, and all and every other interest of or belonging to or due to each of the corporations merged, is
taken and deemed to be transferred to and vested in Ihealthcare-Delaware without further act or deed; and the title to any real
estate, or any interest in real estate, vested in any of the constituent corporations does not revert or is in any way impaired
because of the merger.

 

The Surviving Corporation
is subsequently responsible and liable for all the liabilities and obligations of each of the constituent corporations merged
or consolidated; and any claim existing or action or proceeding pending by or against any of the constituent corporations may
be prosecuted as if the merger had not taken place, or the Surviving Corporation may be substituted in its place. Neither the
rights of creditors nor any liens upon the property of any constituent corporation is impaired by the merger.

 

3.2 Additional
Actions. If, at any time after the Effective Time of the Merger, the Surviving Corporation shall consider or be advised
that any further assignments or assurances in law or any other acts are necessary or desirable (a) to vest, perfect or confirm,
of record or otherwise, in the Surviving Corporation, title to and possession of any property or right of Ihealthcare-Florida
or as a result of, the Merger, or (b) otherwise to carry out the purposes of this Agreement, the Surviving Corporation may execute
and deliver all such proper deeds, assignments and assurances in law and to do all acts necessary or proper to vest, perfect or
confirm title to and possession of such property or rights in the Surviving Corporation and otherwise to carry out the purposes
of this Agreement.

  

ARTICLE
4

 

AMENDMENTS;
EFFECTIVE DATE 

 

4.1
Approval. This Agreement and the Merger contemplated hereby have been approved by the requisite vote of the majority
of the shareholders by written consent at a shareholder meeting of the Constituent Corporations stockholders in accordance with
the DGCL and FLBCA and compliance with the requirements of law, including the securities laws of the United States. As promptly
as practicable after the later of (a) approval of this Agreement by the Constituent Corporations stockholders in accordance with
applicable law, the Constituent Corporations chief executive officer Mr. Noel Mijares or secretary, Mr.
David A. Bingaman shall promptly make and execute the Articles of Merger and shall cause
such documents as necessary to be filed with the Secretary of State of Florida in accordance with the FLBCA and Secretary of State
of Delaware in accordance with DGCL. The execution and delivery hereof by the constituent corporations shall constitute the approval
and adoption of, and consent to, the Merger Agreement and the transactions contemplated thereby.

 

4.2
Amendments. The president or secretary of each Constituent Corporation may amend this Agreement at any time before
the Effective Time, provided, however, that an amendment made subsequent to the approval of the Merger by the stockholders of
the Constituent Corporations shall not (a) alter or change the amount or kind of shares to be received in exchange for or on conversion
of all or any of the shares of Ihealthcare-Florida, (b) alter or change any term of the Articles of Incorporation of Ihealthcare-Florida,
except to cure any ambiguity, defect or inconsistency or (c) alter or change any of the terms and conditions of this Agreement
if such alteration or change would adversely affect the holders of Ihealthcare-Florida’s stock. 

  

ARTICLE
5

 

MISCELLANEOUS

 

5.1 Termination.
This Agreement may be terminated and the Merger abandoned at any time before the filing of this Agreement with Delaware Secretary
of State, whether before or after stockholder approval of this Agreement, by the consent of the secretary of the Constituent Corporations.

 

5.2 Captions
and Section Headings. As used herein, captions and section headings are for convenience only and are not a part of this
Agreement and shall not be used in construing it.

 

5.3 Entire
Agreement. This Agreement and the other documents delivered pursuant hereto and thereto, or incorporated by reference
herein, contain the entire agreement between the parties hereto concerning the transactions contemplated herein and supersede
all prior agreements or understandings between the parties hereto relating to the subject matter hereof. 

 

5.4 Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be considered to be an original instrument.

 

5.5 Severability.
If any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity,
legality or enforceability of the remaining provisions of this Agreement shall not be affected thereby. To the extent permitted
by applicable law, each party waives any provision of law which renders any provision of this Agreement invalid, illegal or unenforceable
in any respect.

 

5.6 Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

 

5.7 No
Third Party Beneficiaries. This Agreement is not intended to confer upon any person other than the parties hereto any
rights or remedies hereunder.

 

5.8 Governing
Law. This Agreement shall be construed in accordance with the laws of the state of Florida and Delaware.

 

IN WITNESS WHEREOF,
the Constituent Corporations have duly executed this Agreement as of April 22, 2016.

 

	 	 	 
	Opulent 
    Acquisition, Inc., a Delaware corporation
	 	 
	By:	 	/s/ Noel Mijares
	Name:	 	Noel
    Mijares
	Title:	 	Chief
    Executive Officer

 

	 	 	 
	Ihealthcare,
    Inc., a Florida corporation
	 	 
	By:	 	/s/ Noel Mijares
	Name:	 	Noel
    Mijares
	Title:	 	Chief
    Executive Officer

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