Document:

ycbd_ex10-1

Exhibit
10.1

 

ADDENDUM NO. 1

TO THE

AGREEMENT AND PLAN OF MERGER

 

THIS ADDENDUM NO. 1 TO THE AGREEMENT AND PLAN
OF MERGER (the “Agreement”)
is made and entered into as of the date of the last signatory
hereto by and among cbdMD, Inc., a North Carolina corporation with
its principal place of business located at 8845 Red Oak Boulevard,
Charlotte, NC 28217 (the “Corporation”)
and the holders of the Remaining Earnout Rights (as defined herein)
set forth on the signature pages hereto (each a “Holder”
and collectively the “Holders”).
The Corporation and the Holders are sometimes referred to as the
“Parties.”
This Agreement shall be effective upon the execution hereof by all
Parties hereto.

 

W I T N E S S E T H:

 

WHEREAS, on December 3, 2018, the
Corporation, its wholly-owned subsidiaries and Cure Based
Development, LLC, a North Carolina limited liability company
(“Cure Based
Development”) entered into that certain Agreement and
Plan of Merger (the “Merger
Agreement”).

 

WHEREAS, on December 20, 2018 the
transactions contemplated by the Merger Agreement closed (the
“Closing
Date”).

 

WHEREAS, pursuant to the terms of the
Merger Agreement CBD Holding, LLC, a North Carolina limited
liability company (“CBDH”)
received as partial consideration for the transactions contemplated
by the Merger Agreement contractual rights (the “Earnout
Rights”) to receive up to 15,250,000 shares of the
Corporation’s common stock (the “Earnout
Shares”) upon the achievement of certain earnout
targets as set forth in the Merger Agreement.

 

WHEREAS, on February 26, 2020, CBDH, in
connection with its liquidation, distributed the Remaining Earnout
Rights to the Holders.

 

WHEREAS, following the issuance of the
First Marking Period Earnout Shares in February 2020 and the
issuance of the Second Marking Period Earnout Shares in March 2021,
Earnout Rights (the “Remaining Earnout
Rights”) for the possible issuance of up to an
aggregate of 6,773,953 Earnout Shares (the “Remaining Earnout
Shares”) remain under the terms of the Merger
Agreement.

 

WHEREAS, the Parties hereto desire to
amend certain terms of the Merger Agreement as hereinafter set
forth.

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained in this Agreement, the
Parties hereto agree as follows:

 

1.           

Recitals.
The foregoing recitals are true and correct and are incorporated
herein by such reference. All terms not otherwise defined herein
shall have the same meaning as in the Merger
Agreement.

 

 

 

 

2.           

Amendment to Third
Marking Period. The Third Marking Period is
hereby measured as follows:

 

(a) The
determination of the Aggregate Net Revenues within the Third
Marking Period shall be made on a quarterly basis for each of the
six fiscal quarters within the Third Marking Period (the
“Fiscal Quarter
Third Marking Periods”) instead of following Third
Marking Period End Date. The Fiscal Quarter Third Marking Periods
are as follows:

 

	

First
Fiscal Quarter Third Marking Period:

	

January
1, 2021 through March 31, 2021

	

Second
First Quarter Third Marking Period:

	

April
1, 2021 through June 30, 2021

	

Third
Fiscal Quarter Third Marking Period:

	

July 1,
2021 through September 30, 2021

	

Fourth
Fiscal Quarter Third Marking Period:

	

October
1, 2021 through December 31, 2021

	

Fifth
Fiscal Quarter Third Marking Period:

	

January
1, 2022 through March 31, 2022

	

Sixth
Fiscal Quarter Third Marking Period:

	

April
1, 2022 through June 30, 2022

 

(b) The Corporation
shall prepare a Net Revenue Certificate within 45 days following
the end of each of such fiscal quarter within the Third Marking
Period instead of following the end of the Third Marking Period
(the “Quarterly Net
Revenue Certificate”).

 

(c) Following the
determination of the portion of the Third Earnout Shares which
shall have been earned in each of the Fiscal Quarter Third Marking
Periods, the Corporation shall issue such shares to the Holders
pursuant to the terms of the Merger Agreement.

 

(d) Except as set
forth herein with respect to the measure dates within the Third
Marking Period, all other terms and conditions of the Merger
Agreement with respect to the Earnout Rights and the Earnout Shares
remain in full force and effect.

 

3.

Representations and
Warranties of the Holders. Each Holder hereby represents and
warrants to the Corporation as follows:

 

(a)
Power and
Authority. The execution and delivery of this Agreement and
each instrument required hereby to be executed and delivered by
each Holder, the performance of the Holder’s obligations
hereunder, and the consummation by the Holder of the transactions
contemplated hereby have been duly and validly authorized by all
necessary action on the part of the Holder, and no other
proceedings on the part of the Holder us necessary to authorize
this Agreement or to consummate the transactions contemplated
hereby. This Agreement has been duly and validly executed by the
Holder,
and, assuming this Agreement has been duly executed by the
Corporation, this Agreement constitutes a valid and binding
agreement of the Holder, enforceable against the Holder in
accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, and similar laws of general applicability
relating to or affecting creditors' rights and to general equity
principles.

 

(b)
Ownership of Earnout
Rights. The Holder is the sole record and beneficial owner
of the Remaining Earnout Rights in the percentage set forth on the
signature page hereof, which such Remaining Earnout Rights are
owned free and clear of all liens and encumbrances, and have not
been sold, pledged, assigned or otherwise transferred.

  

 

2

 

 

(c)
Consents and
Approvals. The execution and performance of this Agreement
does not, and the consummation of the transactions contemplated
hereby and compliance with the provisions of this Agreement will
not (a) conflict with or violate any statute, ordinance, rule,
regulation, judgment, order, writ, injunction, decree or law
applicable to the Holder, or (b) by which the Holder or its
properties or assets may be bound or affected, or result in a
violation or breach of or constitute a default (or an event which
with or without notice or lapse of time or both would become a
default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in any loss
of any benefit under, any contract, agreement or arrangement to
which the Holder is a party. No
consent, approval, order or authorization of, or registration,
declaration or filing with, any governmental entity, is required in
connection with the execution of this Agreement by the Holder or
the consummation by it of the transactions contemplated
hereby.

 

4.

Representations and
Warranties of the Corporation. The Corporation hereby
warrants and represents to Holders as follows:

 

(a)
Organization and Good
Standing. The Corporation is an entity duly incorporated,
validly existing and in good standing under the laws of the State
of North Carolina, with full corporate power and authority to own,
lease and operate its business and properties and to carry on its
business in the places and in the manner as presently conducted or
proposed to be conducted.

 

(b)
Authority and
Enforcement. The Corporation has all requisite corporate
power and authority to execute and deliver this Agreement, and to
consummate the transactions contemplated hereby. The Corporation
has taken all corporate action necessary for the execution and
delivery of this Agreement and the consummation of the transactions
contemplated hereby, and this Agreement constitutes the valid and
binding obligation of the Corporation, enforceable against it in
accordance with its terms, except as may be affected by bankruptcy,
insolvency, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and subject to the
qualification that the availability of equitable remedies is
subject to the discretion of the court before which any proceeding
therefor may be brought.

 

(c)
No Conflicts or
Defaults. The execution and delivery of this Agreement by
the Corporation and the consummation of the transactions
contemplated hereby do not and shall not (a) contravene its
articles of incorporation or bylaws, or (b) with or without the
giving of notice or the passage of time (i) violate, conflict with,
or result in a material breach of, or a material default or loss of
rights under, any covenant, agreement, mortgage, indenture, lease,
instrument, permit or license to which
it is a party or by which it is bound, or any judgment, order or
decree, or any law, rule or regulation to which it is subject, (ii)
result in the creation of, or give any party the right to create,
any lien upon any assets or properties of the Corporation, or (iii)
terminate or give any party the right to terminate, amend, abandon
or refuse to perform, any material agreement, arrangement or
commitment relating to which the Corporation is a
party.

 

 

3

 

 

5.

Miscellaneous.

 

(a)
Expenses. Except as otherwise expressly
provided herein, all costs and expenses, including, without
limitation, fees and disbursements of counsel, financial advisors
and accountants, incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party
incurring such costs and expenses.

 

(b)
Notices. All
notices, requests, consents, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to
have been given: (i) when delivered by hand (with written
confirmation of receipt); (ii) when received by the addressee if
sent by a nationally recognized overnight courier (receipt
requested); (iii) on the date sent by facsimile or e-mail of a .PDF
document (with confirmation of transmission) if sent during normal
business hours of the recipient, and on the next business day if
sent after normal business hours of the recipient; or (iv) on the
third (3rd) day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such
communications must be sent to the respective parties at the
following addresses (or at such other address for a party as shall
be specified in a notice given in accordance with this Section
5(b):

 

	

If to
the Corporation:

	

cbdMD,
Inc.

8845
Red Oak Boulevard

Charlotte,
NC 28217

Attention:
T. Ronan Kennedy,

Chief
Financial Officer

email:
ronan.kennedy@cbdMD.com

	
 

	
 

	

with a
copy to:

	

Pearlman
Law Group LLP

200 S.
Andrews Avenue

Suite
901

Fort
Lauderdale, FL 33301

Attention:
Brian A. Pearlman, Esq.

email:
brian@pslawgroup.net

	
 

	
 

	

If to
the Holders:

	

To the
names, addresses and email addresses set forth on the signature
page hereof

 

(c)
Headings. The
headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement.

 

(d)
Severability. If
any term or provision of this Agreement is invalid, illegal or
unenforceable in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other term or provision of
this Agreement or invalidate or render unenforceable such term or
provision in any other jurisdiction. Upon such determination that
any term or other provision is invalid, illegal or unenforceable,
the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that
the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.

 

 

4

 

 

(e)
Entire Agreement.
This Agreement constitutes the entire agreement of the parties to
this Agreement with respect to the subject matter contained herein,
and supersedes all prior and contemporaneous understandings and
agreements, both written and oral, with respect to such subject
matter.

 

(f)
Successors and
Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective
successors and permitted assigns. No party may assign its rights or
obligations hereunder without the prior written consent of the
other parties, which consent shall not be unreasonably withheld or
delayed.

 

(g)
No Third-party
Beneficiaries. This Agreement is for the sole benefit of the
parties hereto and their respective successors and permitted
assigns and nothing herein, express or implied, is intended to or
shall confer upon any other person or entity any legal or equitable
right, benefit or remedy of any nature whatsoever under or by
reason of this Agreement.

 

(h)
Amendment and
Modification; Waiver. This Agreement may only be amended,
modified or supplemented by an agreement in writing signed by each
party hereto. No waiver by any party of any of the provisions
hereof shall be effective unless explicitly set forth in writing
and signed by the party so waiving. No waiver by any party shall
operate or be construed as a waiver in respect of any failure,
breach or default not expressly identified by such written waiver,
whether of a similar or different character, and whether occurring
before or after that waiver. No failure to exercise, or delay in
exercising, any right, remedy, power or privilege arising from this
Agreement shall operate or be construed as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or
privilege.

 

(i)
Specific
Performance. The parties agree that irreparable damage would
occur if any provision of this Agreement were not performed in
accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition
to any other remedy to which they are entitled at law or in
equity.

 

(j)
Counterparts. This
Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall be deemed to be
one and the same agreement. A signed copy of this Agreement
delivered by facsimile, e-mail or other means of electronic
transmission shall be deemed to have the same legal effect as
delivery of an original signed copy of this Agreement.

 

(k)
Jurisdiction and Governing
Law. This Agreement and all disputes or controversies
arising out of or relating to this Agreement or the transactions
contemplated hereby shall be governed by, and construed in
accordance with, the internal laws of the State of North Carolina,
without regard to the laws of any other jurisdiction that might be
applied because of the conflicts of laws principles of the State of
North Carolina. Each of the parties
hereto expressly and irrevocably: (1) agree that any legal suit,
action or proceeding arising out of or relating to this Agreement
will be instituted exclusively in United States District Court for
the Western District of North Carolina; (2) waive any objection
they may have now or hereafter to the venue of any such suit,
action or proceeding; and (3) consent to the in personam
jurisdiction of United States District Court for the Western
District of North Carolina in any such suit, action or proceeding.
Each of the parties hereto further agrees to accept and acknowledge
service of any and all process which may be served in any such
suit, action or proceeding in the United States District Court for
the Western District of North Carolina and agree that service of
process upon it mailed by certified mail to its address will be
deemed in every respect effective service of process upon it, in
any such suit, action or proceeding.

 

 

5

 

 

(l)
Role of Counsel.
The Parties acknowledge their understandings that this Agreement
was prepared at the request of the Corporation by Pearlman Law
Group LLP, its counsel, and that such firm did not represent the
Holders in conjunction with this Agreement or any of the related transactions. The
Holder, as further evidenced by its signature below, acknowledges
that it has had the opportunity to obtain the advice (including
advice relating to tax matters) of independent counsel of its
choosing prior to its execution of this Agreement and that it has
availed itself of this opportunity to the extent it deemed
necessary and advisable.

 

 

 

6

 

 

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

 

	

Dated:
March 31, 2021

	

cbdMD, Inc.

	
 

	
 

	
 

	
 

	

By:

	

/s/ T.
Ronan Kennedy

	
 

	
 

	

T.
Ronan Kennedy, Chief Financial Officer

	
 

	
 

	
 

	

Holders:

	
 

	
 

	
 

	

Dated:
March 30, 2021

	

COFFMAN FAMILY OFFICE, LLC, a North Carolina limited
liability company

	
 

	

By:
Coffman Management, LLC, its Manager

	
 

	
 

	
 

	

By:

	

/s/ R.
Scott Coffman

	
 

	
 

	

R.
Scott Coffman, Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest - 65.65%

	
 

	
 

	
 

	

Dated:
March 30, 2021

	

JUSTICE FAMILY OFFICE, LLC, a North Carolina limited
liability company

	
 

	
 

	
 

	
 

	

By:

	

/s/
Shannon L. Justice

	
 

	

Shannon
L. Justice, Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest – 10.84%

	
 

	
 

	
 

	

Dated:
March 30, 2021

	

SUMICHRAST 2017 FAMILY TRUST

	
 

	
 

	
 

	
 

	

By:

	

/s/
Martin A. Sumichrast

	
 

	
 

	

Martin
A. Sumichrast, Trustee

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest – 9.0%

	
 

	
 

	
 

 

 

7

 

 

	

Dated:
March 30, 2021

	

BCEZ INVESTMENTS, LLC, a North Carolina limited liability
company

	
 

	
 

	
 

	
 

	

By:

	

/s/
Caryn Dunayer

	
 

	
 

	

Caryn
Dunayer, Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest – 5.0%

	
 

	
 

	
 

	

Dated:
March 31, 2021

	

CBD NOW, LLC, a North Carolina limited liability
company

	
 

	
 

	
 

	
 

	

By:

	

/s/
Thomas E. Wicker

	
 

	
 

	

Thomas
E. Wicker, Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest – 4.75%

	
 

	
 

	
 

	

Dated:
March 30, 2021

	

A NEW TANK, LLC, a North Carolina limited liability
company

	
 

	
 

	
 

	
 

	

By:

	

/s/
Cameron S. Coffman

	
 

	

Cameron
S. Coffman, Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest – 3.0%

	
 

	
 

	
 

	

/s/
Paul G. Porter

	

Dated:
March 30, 2021

	

Paul G. Porter

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest – 1.0%

	
 

	
 

	
 

	

Dated:
March 30, 2021

	

W61, LLC, a South Carolina limited liability
company

	
 

	
 

	
 

	
 

	

By:

	

/s/
Linnie Manos

	
 

	
 

	

Linnie
Manos, Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Remaining
Earnout Rights Interest – 0.76%

 

 

8EXHIBIT
10.1

SECURITIES
PURCHASE AGREEMENT

 

2200
South Utica Place

Suite
150

Tulsa,
Oklahoma 74114

(539)
444-8002 

 

February
__, 2021

 

 

	TO:		____________________
	 	 	________________
	 	 	________________

 

The
undersigned, Empire Petroleum Corporation, a Delaware corporation (the “Company”), hereby agrees with you as follows,
effective as of the date above written:

 

	1.		Authorization
and Sale of the Securities.

 

1.1       
   Authorization. The Company represents that it has authorized the issuance to you pursuant to the terms and conditions
hereof of:

		(a)	_________
                                         shares of its common stock, par value $0.001 per share (the “Common Stock”);
                                         and

 

		(b)	a
                                         warrant (the “Warrant”) to purchase ________ shares of the Company’s
                                         Common Stock (“Warrant Shares”) in accordance with the terms set forth in
                                         the form of the Common Share Warrant Certificate attached hereto as Exhibit A; each Warrant
                                         entitles the Warrant Holder to purchase Common Stock at $0.50 per share until December
                                         31, 2022. The Warrants are callable as described in Exhibit A.

 

The
shares of Common Stock and Warrant to be purchased pursuant to the terms of this Agreement are collectively referred to herein
as the “Securities”.

 

1.2           Sale.
Subject to the terms and conditions hereof, on the Purchase Date (as defined Section 2 below), the Company shall issue and sell
to you and you shall purchase from the Company, the Securities for an aggregate purchase price of $_______ (the “Purchase
Price”).

 

 

 

     

     

    

 

	2.		Payment
of Purchase Price; Delivery.

Upon
the execution of this Agreement, you shall deliver to the Company wire funds or a check payable to the Company in the amount of
the Purchase Price. Upon receipt of the Purchase Price from you (the “Purchase Date”), the Company shall promptly issue
and deliver to you the Securities. 

 

Bank
of Oklahoma

One
Williams Center

Tulsa,
Oklahoma 74172

(918)
588-6435

 

Routing
Number: 103900036

FBO:
Empire Petroleum Corporation

Account
Number: 209976221

2200
South Utica Place, Suite 150

Tulsa,
Oklahoma 74114

 

	3.		Representations
and Warranties of the Company.

The
Company hereby represents and warrants to you as follows:

 

3.1          Organization
and Standing; Articles and Bylaws. The Company is a corporation duly organized and existing under, and by virtue of, the laws
of the State of Delaware and is in good standing under such laws. The Company is qualified, licensed or domesticated as a foreign
corporation in all jurisdictions where the nature of its business conducted or the character of its properties owned or leased
makes such qualification, licensing or domestication necessary at this time except in those jurisdictions where the failure to
be so qualified or licensed and in good standing does not and will not have a materially adverse effect on the Company, the conduct
of its business or the ownership or operation of its properties. The Company’s Certificate of Incorporation, as amended,
and Bylaws, which have been filed as attachments to the Company reports it files with Securities and Exchange Commission, are
true, correct and complete, and contain all amendments through the date of this Agreement (the “SEC”).

 

3.2          Corporate
Power. The Company has the requisite corporate power to own and operate its properties and assets, and to carry on its business
as presently conducted and as proposed to be conducted. The Company has now, and will have at the Purchase Date, all requisite
legal and corporate power to enter into this Agreement, to sell the Securities hereunder, and to carry out and perform its obligations
under the terms of this Agreement.

 

3.3          Capitalization.
The authorized capital stock of the Company consists of 150,000,000 shares of common stock, par value $0.001 per share. There
are issued and outstanding approximately 24,892,277 shares of common stock. The issued and outstanding shares of common stock
are fully paid and nonassessable. Except as disclosed in the Disclosure Materials (as defined in Section 4.1 below), there
are no outstanding options, warrants or other rights, including preemptive rights, entitling the holder thereof to purchase or
acquire shares of common stock of the Company.

 

    -2- 

     

    

 

3.4          Authorization.

 

(a)       All
corporate action on the part of the Company, its officers, directors and shareholders necessary for the sale and issuance of the
Common Stock pursuant hereto and the performance of the Company’s obligations hereunder has been taken or will be taken
prior to the Purchase Date. This Agreement is a legal, valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting enforcement of creditors’ rights, and except as limited by application of legal principles affecting
the availability of equitable remedies.

 

(b)       The
Securities, when issued in compliance with the provisions of this Agreement, will be validly issued, fully paid and nonassessable,
and will be free of any liens or encumbrances; provided, however, that such Securities and the Warrant Shares will be subject
to restrictions on transfer under state and/or Federal securities laws, and as may be required by future changes in such laws.

 

(c)       No
shareholder of the Company has any right of first refusal or any preemptive rights in connection with the issuance of the Securities
or of any other capital stock of the Company.

 

3.5          Compliance
with Instruments. The Company is not in violation of any terms of its Certificate of Incorporation, as amended, or Bylaws,
or, to the knowledge of the Company, any judgment, decree or order applicable to it. The execution, delivery and performance by
the Company of this Agreement, and the issuance and sale of the Securities pursuant hereto, will not result in any such violation
or be in conflict with or constitute a default under any such term, or cause the acceleration of maturity of any loan or material
obligation to which the Company is a party or by which it is bound or with respect to which it is an obligor or guarantor, or
result in the creation or imposition of any material lien, claim, charge, restriction, equity or encumbrance of any kind whatsoever
upon, or, to the knowledge of the Company, give to any other person any interest or right (including any right of termination
or cancellation) in or with respect to any of the material properties, assets, business or agreements of the Company.

 

3.6          Litigation,
etc. There are no actions, proceedings or, to the knowledge of the Company, investigations pending which might result in any
material adverse change in the business, prospects, conditions, affairs or operations of the Company or in any of its properties
or assets, or in any impairment of the right or ability of the Company to carry on its business as proposed to be conducted, or
in any material liability on the part of the Company, or which question the validity of this Agreement or any action taken or
to be taken in connection herewith.

 

3.7          Governmental
Consent, etc. Except as may be required in connection with any filings required under the Federal securities laws and/or the
securities laws of any state due to the offer and sale of the Securities pursuant to this Agreement, no consent, approval or authorization
of, or designation, declaration or filing with, any governmental unit is required on the part of the Company in connection with
the valid execution and delivery of this Agreement, or the offer, sale or issuance of the Securities or the consummation of any
other transaction contemplated hereby.

 

    -3- 

     

    

 

3.8          Securities
Registration and Filings. The outstanding shares of the Company’s Securities are registered pursuant to Section 12(g)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company has filed all reports required
by Section 13 or 15(d) of the Exchange Act during the last two fiscal years. All of such reports were, at the time they were filed,
complete and accurate in all material respects and did not include an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading.

 

	4.		Representations
and Warranties of Purchaser and Restrictions on Transfer Imposed by the Securities Act.

4.1          Representations
and Warranties by Purchaser. You represent and warrant to the Company as follows:

 

(a)       You
have reviewed the following copies of the Company’s (all of which is collectively referred to as the “Disclosure Materials”):

 

		(i)	Current
                                         Report on Form 8-K/A filed on January 6, 2021 located at 

https://www.sec.gov/Archives/edgar/data/887396/000107261321000008/emp_8k-18455.htm

 

		(ii)	Quarterly
                                         Report on Form 10Q for quarter ended November 16, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000378/form10q093020.htm

 

		(iii)	Current
                                         Report on Form 8-K filed on October 6, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000331/emp_8k-18436.htm

 

		(iv)	Quarterly
                                         Report on Form 10Q for quarter ended August 14, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000282/form10q063020.htm

 

		(v)	Current
                                         Report on Form 8-K filed on August 11, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000267/emp_8k-18423.htm

 

		(vi)	Current
                                         Report on Form 8-K filed on August 11, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000266/emp_8k-18422.htm

 

		(vii)	Current
                                         Report on Form 8-K/A filed on June 23, 2020 located at 

https://www.sec.gov/Archives/edgar/data/887396/000107261320000208/emp_8ka-18407.htm

 

		(viii)	Current
                                         Report on Form 8-K filed on June 23, 2020 located at 

https://www.sec.gov/Archives/edgar/data/887396/000107261320000207/emp_8k-18407.htm

 

		(ix)	Quarterly
                                         Report on Form 10Q for quarter ended March 31, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000180/form10q33120.htm

 

		(x)	Current
                                         Report on Form 8-K filed on April 17, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000164/emp_8k-18389.htm

 

		(xi)	Current
                                         Report on Form 8-K filed on April 10, 2020 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000157/emp_8k-18389.htm

 

		(xii)	Annual
                                         Report on Form 10-K for year ended December 31, 2019 located at

https://www.sec.gov/Archives/edgar/data/887396/000107261320000149/form10k123119.htm

 

 

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You
have also reviewed the Company’s Certificate of Incorporation, as amended, and Bylaws.

 

(b)       You
are experienced in evaluating and investing in companies such as the Company. Further, you understand that the Securities purchased
hereby is of a highly speculative nature and could result in the loss of your entire investment.

 

(c)       You
have been furnished by the Company with all information requested concerning the proposed operations, affairs and current financial
condition of the Company. Such information and access have been available to the extent you consider necessary and advisable in
making an intelligent investment decision. In addition, you have received and reviewed copies of the Disclosure Materials and
have had the opportunity to discuss the Company’s business, management and financial affairs with its Chief Executive Officer,
President or Board of Directors Chairman. You understand that such discussions, as well as the Disclosure Materials and any other
written information issued by the Company, were intended to describe certain aspects of the Company’s business and prospects
which it believes to be material but were not necessarily a thorough or exhaustive description.

 

(d)       The
Securities to be acquired by you will be acquired, solely for your account, for investment purposes only and not with a view to
the resale or distribution thereof, are not being purchased for subdivision or fractionalization thereof, and you have no contract,
undertaking, agreement or arrangement with any person to sell or transfer such Securities to any person and do not intend to enter
into such contract or arrangement.

 

(e)       You
understand that the Securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
nor are they registered or qualified under the blue sky or securities laws of any state, by reason of their issuance in a transaction
exempt from the registration and prospectus delivery requirements of the Securities Act pursuant to Sections 3(b) or 4(2) of the
Securities Act and available exemptions from the registration requirements of any applicable state securities laws. You further
understand that the Securities must be held by you indefinitely and you must therefore bear the economic risk of such investment
indefinitely, unless a subsequent disposition thereof is registered under the Securities Act or is exempt from registration.

 

(f)       You
have the full right, power and authority to enter into and perform this Agreement, and this Agreement constitutes a legal, valid
and binding obligation upon you, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
of general application affecting enforcement of creditors’ rights, and except as limited by application of legal principles
affecting the availability of equitable remedies.

 

(g)       You
are able to bear the full economic risk of your investment in the Securities, including the risk of a total loss of your investment
in connection therewith. You are an accredited investor as that term is defined in Rule 501(a) of Regulation D promulgated by
the SEC. 

 

 

 

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By
initialing one of the categories below, the undersigned represents and warrants that the undersigned comes within the category
so initialed and has truthfully set forth the factual basis or reason the undersigned comes within that category. ALL INFORMATION
IN RESPONSE TO THIS PARAGRAPH WILL BE KEPT STRICTLY CONFIDENTIAL. The undersigned agrees to furnish any additional information
which the Company deems necessary in order to verify the answers set forth below.

 

Category
I __________                          The undersigned is an individual (not a partnership, corporation, etc.) whose individual net worth, or
joint net worth with the undersigned's spouse, presently exceeds U.S. $1,000,000.

Explanation.
In calculation of net worth the undersigned may not include equity in the undersigned’s primary residence, however the undersigned
can include equity in all other real estate. The calculation of net worth may also include the undersigned’s personal property,
cash, short term investments, stocks and securities. Equity in personal property and real estate should be based on the fair market
value of such property less debt secured by such property. Any debt that secures the undersigned’s primary residence can
be excluded from liabilities in calculating the undersigned’s net worth, as long as the debt does not exceed the fair market
value of the property (except that if the amount of such debt outstanding at the time of the undersigned’s purchase of the
Shares exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence,
the amount of such excess shall be included as a liability). If, however, the amount of the debt exceeds the fair market
value of the primary residence and the mortgagee or other lender has recourse to the undersigned personally for any
deficiency, that excess liability should be deducted from the undersigned's net worth.

Category
II _________                           The undersigned is an individual (not a partnership, corporation, etc.) who had an individual income in excess of U.S.
$200,000 in each of the two most recent years, or joint income with the undersigned's spouse in excess of $300,000 in each of
the two most recent years, and has a reasonable expectation of reaching the same income level in the current year.

Category
III  ________                            The undersigned otherwise meets the definition of “Accredited Investors” as defined in Section 230.501(a)
of the Act.

 

(h)       You
were not offered the Securities by means of general solicitations, publicly disseminated advertisements or sales literature.

 

 

 

 

 

 

 

 

 

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4.2          Legends.
The instrument representing the Securities and the Warrant Shares shall be endorsed with the legend set forth below:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY
STATE SECURITIES ACT. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED
UNLESS (I) THEY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES ACT, OR
(II) THE COMPANY SHALL HAVE BEEN FURNISHED AN OPINION OF COUNSEL, SATISFACTORY TO COUNSEL FOR THE COMPANY, THAT REGISTRATION IS
NOT REQUIRED UNDER ANY OF SUCH ACTS.

 

In
addition, the instrument representing the Securities and the Warrant Shares shall be endorsed with any other legend required by
any state securities laws. The Company need not register a transfer of legended Securities and the Warrant Shares, and may also
instruct its transfer agent not to register the transfer of the Securities and the Warrant Shares, unless one of the conditions
specified in each of the foregoing legends is satisfied.

 

	5.		Indemnification
by Purchaser.

You
acknowledge and understand that the Company has agreed to offer and sell the Securities to you based upon the representations
and warranties made by you in this Agreement, and you hereby agree to indemnify the Company and to hold the Company and its incorporators,
officers, directors and professional advisors harmless against all liability, costs or expenses (including attorneys’ fees)
arising by reason of or in connection with any misrepresentation or any breach of such representations and warranties by you,
or arising as a result of the sale or distribution of any Securities by you in violation of the Securities Act or other applicable
law.

 

	6.		Miscellaneous.

6.1          Successors
and Assigns. All the provisions of this Agreement by or for the benefit of the parties shall bind and inure to the benefit
of respective successors and permitted assigns of each party.

 

6.2          Notices.
All notices and other communications required or permitted hereunder shall be in writing
and shall be mailed by first class mail, postage prepaid, addressed (a) if to you, at your address set forth on the first
page hereof, or at such other address as you shall have furnished to the Company in writing, or (b) if to the Company, at
its address set forth on the first page hereof, or at such other address as the Company shall have furnished to you in writing
in accordance with this Section 6.2.

 

6.3         Waivers;
Amendments. Any provision of this Agreement may be amended or modified with (but only with) the written consent of the Company
and you. Any amendment, modification or waiver effected in compliance with this Section 6.3 shall be binding upon the Company
and you. No failure or delay of the Company or you in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereon or the exercise of any other right or power. The rights
and remedies of the Company and you hereunder are cumulative and not exclusive of any rights or remedies which each would otherwise
have.

 

 

 

    -7- 

     

    

 

6.4         Separability.
In case any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

6.5         Governing
Law. This Agreement shall be construed and enforced in accordance with the laws of the state of Oklahoma without regard to
principles of conflicts of law, except as otherwise required by mandatory provisions of law.

 

6.6         Section
Headings. The section headings used herein are for convenience of reference only and shall not be construed in any way to
affect the interpretation of any provisions of this Agreement.

 

6.7          Entire
Agreement. This Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding and
agreement between the parties hereto with regard to the subjects hereof and thereof.

 

6.8          Finder’s
Fees. You represent and warrant to the Company that no finder or broker has been retained by you in connection with the transactions
contemplated by this Agreement and you hereby agree to indemnify and to hold the Company and its respective officers, directors
and controlling persons, harmless of and from any liability for any commission or compensation in the nature of a finder’s
fee to any broker or other person or firm (and the costs and expenses of defending against such liability or asserted liability)
for which you, or any of your employees or representatives, are responsible. The Company hereby agrees to indemnify and to hold
you, and your respective officers, directors and controlling persons, harmless of and from any liability for any commission or
compensation in the nature of a finder’s fee to any broker or other person or firm (and the costs and expenses of defending
against such liability or asserted liability) for which it, or any of its employees or representatives, are responsible.

 

6.9          Other
Documents. The parties to this Agreement shall in good faith execute such other and further instruments, assignments or documents
as may be necessary or advisable to carry out the transactions contemplated by this Agreement.

 

6.10        Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall
constitute one instrument, and which shall become effective when there exist copies signed by the Company and by you.

 

[Signatures
on Next Page]

 

 

 

 

 

 

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IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by their duly authorized representatives effective
as of the date set forth on the first page hereof.

 

 

 

EMPIRE
PETROLEUM CORPORATION

 

 

 

By:   ______________________     

       Thomas W. Pritchard, CEO

 

 

By:   ______________________     

        Michael
R. Morrisett, President

 

 

 

Accepted
and agreed to this ______ day of _____________, 2021.

 

 

BUYER

 

 

By:                    ______                            

Name:
______________________

Title: ____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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