Document:

mmex_ex101.htm

EXHIBIT 10.1
  
 PROJECT AGREEMENT
  
 This Project Agreement (the “Agreement”), effective as of March 19, 2021 (the “Effective Date,” is by and between V Engineering & Consulting, LLC, a Delaware limited liability company (“VEC”) and MMEX Resources Corporation, a Nevada corporation (“MMEX”) (each, individually a “Party” and, collectively, the “Parties”).
  
 WHEREAS, the Parties are each experienced in developing, operating and financing energy infrastructure projects;
  
 WHEREAS, the Parties desire to develop, construct and operate a hydrogen and gas-to-liquids facility in Pecos County, Texas; and
  
 WHEREAS, the Parties further desire to define each Party’s responsibilities and interests in the Project;
  
 NOW, THEREFORE, for and in consideration of the mutual promises and covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
  
 ARTICLE 1
  
 DEFINITIONS AND GENERAL PROVISIONS
  
 Section 1.1 Definitions. The initially capitalized terms set forth in this Agreement, including those contained in the foregoing recitals, and not otherwise defined shall have the following meanings:
  
 “Affiliate” or “affiliate” of any specified Person means any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person. For purposes of this definition, “control” when used with respect to any particular Person means the power to direct, or cause the direction of, the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling”, “controlled” and “under common control” have meanings correlative to the foregoing.
  
 	 
	1
	

	 

  
 “Agreement” has the meaning set forth in the preamble. 
  
 “Applicable Laws” means all applicable laws (including common law), rules, regulations, statutes, treaties, codes and ordinances (including zoning and land use regulations) of any Governmental Authority, and applicable judgments, decrees, injunctions, writs, orders or like action of any court, arbitration board, administrative, judicial or quasi-judicial tribunal or agency of competent jurisdiction. 
  
 “Bankruptcy Event” shall be deemed to occur, with respect to any Person, if that Person shall institute a voluntary case seeking liquidation or reorganization under Title 11, United States Code, or any other state or federal insolvency, reorganization, moratorium or similar law for the relief of debtors, or any successor statute, or shall consent to the institution of an involuntary case thereunder against it; or such Person shall file a petition or consent or shall otherwise institute any similar proceeding under any other applicable federal or state law, or shall consent thereto; or such Person shall apply for, or consent or acquiesce to, the appointment of, a receiver, administrator, administrative receiver, liquidator, sequestrator, trustee or other officer with similar powers for itself or any substantial part of its assets; or such Person shall make a general assignment for the benefit of its creditors; or such Person shall admit in writing its inability to pay its debts generally as they become due; or if an involuntary case shall be commenced seeking liquidation or reorganization of such Person under applicable bankruptcy laws or any similar proceedings shall be commenced against such Person under any other applicable federal or state law and (a) the petition commencing the involuntary case is not timely disputed, (b) the petition commencing the involuntary case is not dismissed within sixty (60) days of its filing, (c) an interim trustee is appointed to take possession of all or a portion of the property, and/or to operate all or any part of the business of such Person and such appointment is not vacated within sixty (60) days or (d) an order for relief has been issued or entered therein; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, administrator, administrative receiver, liquidator, sequestrator, trustee or other officer having similar powers, over such Person or all or a part of its property has been entered; or any other similar relief shall be granted against such Person under Title 11, United States Code, and any other state or federal insolvency, reorganization, moratorium or similar law for the relief of debtors, or any successor statute.
  
 “Common Units” or “Units” shall mean the units of membership interest described in Section 2.1.
  
 “Day” or “day” means, unless otherwise indicated, a calendar day.
  
 “Effective Date” has the meaning set forth in the Preamble.
  
 “Facility” means the hydrogen and gas to liquids plant to be constructed and operated in Pecos County, Texas.
  
 “Financial Closing” shall mean the date the Project Company executes the definitive Project Financing documents.
  
 “Governmental Authority” means the federal government of the United States, and any state, county, municipal or local government or regulatory department, body, political subdivision, commission, agency, instrumentality, ministry, court, judicial or administrative body, taxing authority, or any authority thereof (including any corporation or other entity owned or controlled by any of the foregoing). 
  
 “Indemnified Parties” means VEC and MMEX as applicable, including all of the current and former Affiliates of each, along with each Party’s and each of its Affiliate’s respective officers, directors, partners, managers, members, agents, employees, successors, and assigns.
  
 	 
	2
	

	 

   
 “Losses” means all costs, liabilities, penalties, fines, forfeitures, demands, claims, causes of action, suits, and costs and expenses incidental thereto (including costs of defense, settlement, and reasonable attorney’s fees).
   
 “Party” has the meaning set forth in the preamble.
   
 “Person” means any natural person, corporation, cooperative, partnership, limited liability company, joint venture, joint-stock company, firm, association, trust, unincorporated organization, government or political subdivision thereof, governmental agency or any other entity, whether acting in an individual, fiduciary or other capacity. 
  
 “Project” means the construction and operation of a hydrogen and gas to liquids plant in Pecos County, Texas.
   
 “Project Company” has the meaning set forth in Section 2.1(a).
   
 “Project Contracts” has the meaning set forth in Section 2.1(d).
   
 “Project Financing” has the meaning set forth in Section 4.1.
   
 “Site” has the meaning set forth in Section 2.1(b).
  
 Section 1.2 Rules of Interpretation. In this Agreement, unless otherwise provided or the context otherwise requires:
   
 (a) the terms set forth in Section 1.1 shall have the meanings therein provided;
   
 (b) any term defined in Section 1.1 by reference to another document, instrument or agreement shall continue to have the meaning ascribed thereto regardless of whether such document, instrument or agreement is in effect;
   
 (c) words in the singular include the plural and vice versa;
   
 (d) words referring to a gender include any gender;
   
 (e) a reference to a part, clause, section, paragraph, article, Party, annex, appendix, exhibit, schedule or other attachment is a reference to a part, clause, section, paragraph, or article of, or a Party, annex, appendix, exhibit, schedule or other attachment to, this Agreement; 
  
 (f) a reference to any statute, regulation, proclamation, ordinance or law includes all statutes, regulations, proclamations, ordinances or laws varying, consolidating or replacing the same from time to time, and a reference to a statute includes all regulations, policies, protocols, codes, proclamations and ordinances issued or otherwise applicable under that statute unless, in any such case, otherwise expressly provided in any such statute or in this Agreement; 
  
 (g) a definition of or reference to any document, instrument or agreement includes each amendment or supplement to, or restatement, replacement, substitution, successor, modification or novation of, any such document, instrument or agreement unless otherwise specified in such definition or in the context in which such reference is used;
  
 	 
	3
	

	 

   
 (h) a reference to a particular section, paragraph or other part of a particular statute shall be deemed to be a reference to any other section, paragraph or other part substituted therefor from time to time unless otherwise specified;
   
 (i) a reference to any Person (as above defined) includes such Person’s successors and permitted assigns;
   
 (j) words such as “hereunder,” “hereto,” “hereof” and “herein” and other words of similar import shall, unless the context requires otherwise, refer to the whole of the applicable document and not to any particular article, section, subsection, paragraph or clause thereof; and 
  
 (k) a reference to “include,” “includes,” “including” or other variations thereof means including without limiting the generality of any description preceding such term.
  
 ARTICLE 2
  
 THE PROJECT
  
 Section 2.1 Description of the Project. The Parties shall use good faith commercial efforts to construct, operate, maintain and finance a hydrogen and gas-to-liquids plant in Texas. To this end, the Parties agree to the following:
  
 	  
	 (a) 
	The Parties shall form a limited liability company, registered to do business in the State of Texas, as a special purpose entity (the “Project Company”) to construct, operate, maintain and own the Facility. 
	  
	  
	  

	  
	 (b) 
	Prior to the Financial Closing, VEC and MMEX shall be the initial holders of all Common Units as follows: 

   
 	  
	 (i) 
	VEC-60%
	  
	  
	  

	  
	 (ii) 
	MMEX-40%

    
 	 
	4
	

	 

  
 (c) The Facility shall be constructed and installed on property owned or controlled by MMEX and described more fully in Annex A hereto (the “Site”). The land shall be free of any liens.
   
 (d) MMEX shall be the leading party for filing of all permits, licenses and authorizations from Governmental Authorities necessary or required to construct and operate the Facility.
   
 (e) The Project Company shall enter into various ancillary contracts including an engineering, procurement and construction agreement for the fabrication of Facility components and installation of the Facility; a feedstock supply agreement for the long-term supply of a sufficient quantity of gas for the facility to operate at its rated capacity; one or more off-take agreements for the sale of the products; an operations and maintenance agreement; and such other agreements, all on mutually acceptable terms and conditions, as the Project Company may determine to be necessary (the “Project Contracts”). The Parties agree and consent that neither MMEX or its Affiliates nor members of VEC shall be excluded from contracting with the Project Company to provide services to the Project Company and the Project.
  
 ARTICLE 3
  
 RESPONSIBILITIES OF THE PARTIES
  
  
 Section 3.1 VEC Responsibilities. VEC shall manage the following:
   
 (a) Project design;
   
 	 
	5
	

	 

  
 (b) financial modeling and arranging for financing;
   
 (c) investor and industrial relations;
   
 (d) preliminary engineering for the Facility; and
   
 (e) technology licensing.
   
 VEC and Project Company shall enter into a development services agreement further detailing VEC’s responsibilities and deliverables.
   
 Section 3.2 MMEX Responsibilities. MMEX shall manage the following: 
  
 (a) providing Site and any required easements, free of liens, for the Facility;
   
 (b) all required and necessary permits, permissions and authorizations from applicable Governmental Authorities to construct and operate the Facility on the Site;
   
 (c) feedstock and offtake agreements for the adequate supply of feedstock to the Facility and the continued sales of products from the Facility;
  
 (d) regional knowledge of the market for, among other things, the supply of feedstock and the market for the Facility’s products;
   
 (e) operational capability for facilities of this size and nature, including the various components that comprise the Facility; and,
   
 (f) administration of the Project Company, pursuant to an Administration Agreement.
   
 Section 3.3 Third Parties. The Parties may engage and contract with third parties in meeting the responsibilities above. 
  
 	 
	6
	

	 

  
 ARTICLE 4
  
 PROJECT FINANCING
  
 Section 4.1 Project Financing. VEC shall use good faith efforts to arrange for and manage third-party financing for the Project including providing for development costs. In doing so, VEC may and is authorized to engage third parties of its choosing to assist with arranging such financing. Such engagements shall be by written Agreement and on terms that are usual and customary for such engagements. MMEX may provide VEC with its financial contacts for consideration. In connection with the Financial Closing, definitive agreements relating to the ownership and governance of the Project Company will be entered into by the parties.
  
 ARTICLE 5
  
 REPRESENTATIONS
  
 As of the Effective Date, each Party represents to the other Party the following:
  
 (a) Standing. If a corporation, limited liability company or partnership, such Party is a duly organized or formed, validly existing and in good standing under the laws of its State or country of organization or formation and is qualified to do business in all other jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure to qualify would have a material adverse effect on its financial condition, operations, prospects or business.
   
 (b) Authority. Such Party has all necessary power and authority to execute, deliver and perform its obligations under this Agreement; the execution, delivery and performance by it of this Agreement have been duly authorized by all necessary action on its part; and this Agreement has been duly and validly executed and delivered by it and constitutes thee legal, valid and binding obligation of such Party enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or moratorium or similar laws relating to the enforcement of creditors’ rights generally and by general equitable principle.
  
 (c) No Governmental Consents. No authorization, consent or approval of, notice to or filing with, any Governmental Authority is required for the execution, delivery and performance by such Party of this Agreement, subject to customary authorizations, consents or approvals, pursuant to permits or otherwise, applicable to the performance of this Agreement. 
  
 (d) No Breach. None of the execution and delivery of this Agreement, the consummation of the transactions herein contemplated or compliance with the terms and provisions hereof will conflict with or result in a breach of, or require any consent under, organizational documents of such Party, or any Applicable Law or regulation, or any order, writ, injunction or decree of any court, or any agreement or instrument to which such Party is a party or by which it is bound or to which it or its property is subject, or constitute a default under any such agreement or instrument, subject in each case to customary authorizations, consents or approvals, pursuant to permits or otherwise, applicable to the performance of this Agreement.
  
 	 
	7
	

	 

   
 (e) No Violation or Litigation. Such Party is not in violation of any Applicable Law which, individually or in the aggregate, would affect its performance of any obligations under this Agreement. There are no legal or arbitration proceedings or any proceeding by or before any Governmental Authority, now pending or (to the best knowledge of such Party) threatened against it which, if adversely determined, could reasonably be expected to have a material adverse effect on its financial condition, operations, prospects or business or its ability to perform under this Agreement.
  
 ARTICLE 6
  
 ADDITIONAL COVENANTS
  
 Section 6.1 Governance of the Project Company. Prior to the Financial Closing, each of MMEX and VEC shall be entitled to designate two Managers, comprising a four person board of Managers. All decisions of the Project Company shall be approved by a majority of the Board of Managers. In the event of no majority vote, then Ardour Capital Investments, LLC shall cast the majority vote and the Project Company shall be bound thereby.
   
 Section 6.2 Compliance with Laws. Each Party shall, and shall cause its Affiliates to, comply with all Applicable Laws in its or their performance of its respective obligations hereunder and otherwise in connection with or relating to the Project.
   
 Section 6.3 Expenses. Except as otherwise provided in Section 4.1, all internal and external costs and expenses incurred in connection with this Agreement and the Project Contracts contemplated hereby shall be paid by the Party incurring such expenses.
   
 Section 6.4 Confidentiality. As used herein, “Confidential Information” shall mean all confidential information and trade secrets of each Party, whether now existing or hereafter acquired or developed, including, but not limited to, this Agreement, information relating to software, technical processes and formulas, source codes, product designs, sales, costs and other unpublished financial information, product and business plans, business strategies, methodologies, pricing, materials, processes, programs, names of and relationships with vendors, customer or client lists, customer information, licensee names, contractual arrangements and similar other non-public or otherwise confidential, sensitive or proprietary information. The Party disclosing any of its Confidential Information is herein referred to as the “Disclosing Party” and the Party receiving the other Party’s Confidential Information is herein referred to as the “Receiving Party.” However, Confidential Information shall not include (a) information that is publicly available, or hereafter becomes publicly available through the actions of parties other than the Receiving Party (b) information which becomes part of the public domain by publication or otherwise (except by a violation of this Agreement by the Receiving Party or its representatives); (c) information which was in the possession of the Receiving Party at the time of disclosure; (d) information which was independently developed by the Receiving Party without use of the Confidential Information of the Disclosing Party; and (e) information which the Receiving Party received from a third party, provided that such information was not known by the Receiving Party to have been obtained by such third party unlawfully or in breach of any confidentiality obligation.
  
 	 
	8
	

	 

   
 Each Receiving Party shall keep strictly confidential all Confidential Information communicated or otherwise made available by the Disclosing Party and shall use its best efforts to provide protection for the Disclosing Party’s Confidential Information, including measures at least as strict as those the Receiving Party uses to protect its own Confidential Information. Except as required by law, neither Receiving Party shall reveal any of the Disclosing Party’s Confidential Information to any third person (other than any of the Receiving Party’s or its affiliates’ employees, consultants, agents and advisors who are made aware of and have agreed to protect the confidential nature of such information) without the prior written consent of the Disclosing Party. In the event that either Receiving Party is required to disclose any of the Disclosing Party’s Confidential Information subject to the rules of a court having competent jurisdiction, such Receiving Party shall use its diligent efforts to communicate such disclosure requirement promptly by written notice to the Disclosing Party in order to enable the Disclosing Party, at its sole discretion, to attempt to secure a protective order covering the Disclosing Party’s Confidential Information prior to the required disclosure. At the termination of this Agreement, any Confidential Information provided to a Receiving Party by a Disclosing Party under this Section 6.3 is to be returned, upon request, to the Disclosing Party; however, the Receiving Party may retain one copy of the Disclosing Party’s Confidential Information only for purposes of this Agreement and shall exercise the customary degree of care that it exercises in protecting its own confidential and proprietary information.
  
 ARTICLE 7
  
 RELEASE AND INDEMNIFICATION
  
 Each Party shall release, indemnify, defend and hold harmless the other Party, and all of its Indemnified Parties, from and against any and all Losses, which any or all of them may hereafter suffer, incur, be responsible for or pay as a result of any negligent act or omission or willful misconduct, or a breach of the representations and warranties, or any violation or alleged violation of Applicable Laws, by such indemnifying Party or its Affiliates, directors, officers, employees, agents or subcontractors.
  
 ARTICLE 8
  
 TERM AND TERMINATION
  
 Section 8.1 Term. This Agreement shall commence on the Effective Date and shall continue in full force and effect until the first to occur of the following:
  
 (a) the date on which all Project Contracts for the Project have been fully executed and delivered;
  
 (b) the date of termination of this Agreement by either Party as a result of a breach of the terms and provisions of this Agreement (“Event of Default”) and such breach remains uncured for thirty (30) days ; 
  
 (c) the date of a written notice from either Party in accordance with Section 8.2;
   
 (d) the date of a written notice from one Party to the other if, after the notice and cure periods set forth therein, the other Party (or its Affiliate) remains in default under any material term of a Project Contract;
   
 (e) the date of a written notice from one Party to the other if, as of the second anniversary of the Effective Date, all of the principal Project Contracts for the Project have not been executed by the Parties;
   
 (f) termination for convenience by either Party with thirty (30) days’ notice; or
   
 (g) a Bankruptcy Event occurs with respect to either Party. 
  
 Section 8.2 Termination for Lapse in Development Activities. Either Party may terminate this Agreement by written notice to the other Party, if the Parties have not executed principal Project Contracts for one Project within 12 months following the effective date of this Agreement . 
   
 Section 8.3 Consequences of Termination. Subject to this Article 8 in the event of a termination of this Agreement upon an Event of Default, upon any termination of this Agreement in accordance with this Article 8, all of the Parties’ rights, obligations and liabilities arising under this Agreement shall automatically terminate and cease to be effective, except as set forth in Section 13.8 .
  
 	 
	9
	

	 

  
 ARTICLE 9
  
 CERTAIN TRANSFERS
  
 9.01 Transfers Generally. Any Transfer of a Common Unit, other than a Permitted Transfer, shall be made in compliance with the provisions of Sections 9.02 or 9.03 or shall be null and void and without force or effect. A Member may make a Permitted Transfer without the consent of the other Members. A Permitted Transfer shall not relieve the transferor from any of its obligations under this Agreement. In the case of an inter vivos Transfer, the Company may require the transferee to deliver to the other Members an irrevocable power of attorney appointing the Member transferring such Common Units as the attorney-in fact for said transferee with full power and authority to deal in any way with such Common Units. The parties expect that the provisions of this Article 9 will likely be amended and restated in connection with the negotiation of the Project Financing and the formation of the Project Company, and that this Article 9 will be applicable solely to the period prior to the Financial Closing.
  
 9.02 Right of First Refusal 
   
 (a) A Member (the “Selling Member”) shall, prior to any sale by such Member to a third party that is not a Permitted Transferee (a “Third Party Sale”) of any Common Units owned by such Selling Member, provide a written notice whereby such Member shall offer (the “Offer”) to the other Member(s) (the “Non-selling Members”) the right, for a period of 60 days from the date of such notice, to purchase all of such Common Units in such Third Party Sale for an amount equal to the price or other consideration for which such Units are to be sold. A “Permitted Transferee” shall be any other Member or any Affiliate of the Selling Member. 
  
 (b) The Selling Member shall provide written notice of the Offer to the Company and the Non-selling Members at the same time, which notice shall set forth (i) the Common Units proposed to be sold, (ii) the number, price and payment and all other closing terms and (iii) the name of the purchaser. Within 20 days after receipt of the Offer, the Non-selling Members and/or (to the extent the Non-selling Members do not purchase all such Units) the Company may indicate its interest in purchasing up to the number of Common Units subject to the Offer by written notice thereof given to the Selling Member. If the Non-selling Members and the Company, in the aggregate, propose to purchase the number of or more than the full number of Common Units offered by the Selling Member, then (i) the first allocation of such Common Units shall be made to the Non-selling Members with respect to the full number of Common Units it has proposed to purchase, as set forth in its notice to the Company (if there is more than one Non-selling Member desiring to purchase such Common Units, they each shall be entitled to acquire up to their pro rata portion of such Common Units, based upon their proportional holdings of Common Units, relative to any other participating Members), and then (ii) to the extent that such amount does not exhaust the number of Common Units to be purchased, any remaining Common Units shall be allocated to the Company. Within 60 days after the receipt of the Offer, the Selling Member shall promptly sell and the Non-selling Members and the Company (to the extent the Non-selling Members do not purchase all such Units) shall promptly buy, upon the terms specified, the number of Common Units agreed to be purchased by the Non-selling Members and the Company, as applicable.
   
 	 
	10
	

	 

  
 (c) If the Non-selling Members and the Company do not purchase Common Units pursuant to Section 9.02(b) above within the 60-day period referenced therein, the Selling Member may at any time during the 60-day period, thereafter, sell to the third party or parties set forth in its notice of the Third-Party Sale the number of such Common Units proposed to be sold, at a price and on payment terms no less favorable to the Selling Member than those specified in such notice. However, if such Third-Party Sale is not consummated within such 60-day period, the Selling Member shall not sell any Units not purchased within such period without again complying with this Section 9.02.
   
 9.03 Buy Sell Provisions. In the event that MMEX or VEC (hereinafter the “Bidder”) offers to acquire 100% of the Common Units held by the other Member (hereinafter the “Receiving Party”), the Receiving Party shall have the option either to sell its Common Units to the Bidder or acquire 100% of the Common Units held by the Bidder for the same price per Unit proposed at first by the Bidder, provided, however, that this provision does not come into effect until the following two conditions are met: (i) it is not effective until 18 months from date of Financial Closing and (ii) the offering price has to exceed US$25,000,000.
  
 9.04 Drag Along Rights. In the event that a third party offers to acquire 100% of the Common Units of the Company, and if either Member (in such capacity, the “Tendering Member”) wishes to accept the third party offer, the Tendering Member may require that each other Member sell its Common Units in the proposed transaction, provided that (i) the non-tendering Member does not exercise the Right of First Refusal under paragraph 9.02 and (ii) the aggregate purchase price offer for 100% of the Common Units of the Company is greater than US$ 50,000,000. 
  
 9.05 Transferees. Any transferee to whom any Common Units may be transferred pursuant to this Agreement shall take such Common Units subject to all of the terms and conditions of this Agreement applicable to the transferor and shall not be considered to have title thereto until said transferee shall have accepted and assumed the terms and conditions of this Agreement as aforesaid by a written agreement to that effect delivered to the Company, at which time such transferee shall be admitted as a substitute Member and shall succeed to all rights and obligations of its transferor except as such rights may be otherwise limited by other provisions of this Agreement. The transferee of any Common Unit shall reimburse the Company for all costs incurred by the Company resulting from such Transfer.
   
 ARTICLE 10
  
 REMEDIES
  
 In addition to a termination right under Section 8.2, upon the occurrence and during the continuation of an event of default, the non-defaulting Party may, subject to Article 11, pursue any other recourse, right or remedy available to such Party under this Agreement or under Applicable Laws or equity, all of which shall be cumulative.
  
 ARTICLE 11
  
 DISPUTE RESOLUTION
  
 Section 11.1 This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to the principles of conflicts of law. Any dispute arising in any manner, under or relating to, this Agreement must be brought or commenced in federal or state court located in Dallas County, Texas, and not in any other state or federal court in the United States of America, or any court in any other country. 
  
 	 
	11
	

	 

  
 ARTICLE 12
  
 NOTICE
  
 Section 12.1 Writing. Any notice, invoice, demand, offer or other instrument or communication required or permitted to be given pursuant to this Agreement shall be in writing signed by the Party giving such notice and shall, to the extent reasonably practicable, be sent by telefax, and if not reasonably practicable to send by telefax, then by email with return receipt, hand delivery, overnight courier, or registered mail, to the other Party at the address set forth below:
  
 	 Notices to VEC: 
	  
	 Notices to MMEX:

	 c/o Mencey – SFO PARTNERS
	  
	 3616 Far West Blvd., #117-321

	 Rue Céard 13, PO Box 3524, 1211 Geneva 3, 
	  
	  

	 Switzerland 
	  
	 Austin, Texas 78731 

	 Attn: Jorge Ruiz Del Vizo 
	  
	 Attn: Jack W. Hanks

	 Telephone: +41 76 787 8008 
	  
	 Telephone: +1 

	 Facsimile: +41 22 349 7837 
	  
	 Facsimile: +1 

	 E-mail: j.ruizdelvizio@blacktreecp.com 
	  
	 E-Mail: jack.hanks@mmexresources.com

    
 Each Party shall have the right to change the place to which notice shall be sent or delivered or to specify one additional address to which copies of notices may be sent, in either case by similar notice sent or delivered in like manner to the other Party.
   
 Section 12.2 Timing of Receipt. Without limiting any other means by which a Party may be able to prove that a notice has been received by the other Party, a notice shall be deemed to be duly received:
   
 (a) if delivered by hand or overnight courier, the date when received at the address of the recipient;
   
 (b) if sent by registered mail or email, the date of the return receipt ; or
   
 (c) if sent by telefax, upon receipt by the sender of an acknowledgment or transmission report generated by the machine from which the telefax was sent indicating that the telefax was sent in its entirety to the recipient’s telefax number.
   
 In any case hereunder in which a Party is required or permitted to respond to a notice from the other Party within a specified period, such period shall run from the date on which the notice was deemed received as above provided, and the response shall be considered to be timely given if given as above provided by the last day of such period.
  
 ARTICLE 13
  
 MISCELLANEOUS
  
 Section 13.1 Relationship of the Parties. The Parties agree and understand that this Agreement shall not constitute or create a joint venture, partnership or legal entity of any kind or any other similar arrangement between the Parties. Each of the Parties shall act hereunder only as independent contractors to one another, on an individual and several basis, and shall not be authorized to act as agent or representative of the other Party, nor have the power or authority to bind the other Party for any purpose. No Party shall so bind the other Party, or represent to anyone that it has the authority to bind such other Party, or make any other representation about or on behalf of such other Party.
  
 	 
	12
	

	 

   
 Section 13.2 Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the Parties as of the Effective Date with respect to the subject matter hereof and supersedes any and all prior negotiations, agreements, understandings and representations relating thereto. This Agreement may not be amended, modified or changed except as mutually agreed in a writing executed by all Parties intended to be an amendment to this Agreement.
   
 Section 13.3 Joint Effort. Preparation of this Agreement has been a joint effort of the Parties and the resulting document shall not be construed more severely against one of the Parties than against the other.
   
 Section 13.4 Captions. The captions contained in this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained herein.
   
 Section 13.5 Severability. The invalidity of one or more phrases, sentences, clauses, Sections or Articles contained in this Agreement shall not affect the validity of the remaining portions of this Agreement so long as the material purposes of this Agreement can be determined and effectuated. 
  
 Section 13.6 No Waiver. Any failure of either Party to enforce any of the provisions of this Agreement or to require compliance with any of its terms at any time during the term of this Agreement shall in no way affect the validity of this Agreement, or any part hereof, and shall not be deemed a waiver of the right of such Party thereafter to enforce any and each of such provisions.
   
 Section 13.7 Counterparts. This Agreement may be signed in any number of counterparts and each counterpart shall represent a fully executed original as if signed by all Parties.
   
 Section 13.8 Survival. The provisions of Sections 6.2 and 6.3 and Articles 7 through 12, inclusive, shall survive the expiration or earlier termination of this Agreement.
    
 Section 13.9 Further Assurances. Each Party agrees to execute and deliver all further instruments and documents, and take all further action not inconsistent with the provisions of this Agreement that may be reasonably necessary to complete performance of the Parties’ obligations hereunder and to effectuate the purposes and intent of this Agreement.
   
 Section 13.10 Third Parties. Except as provided in this Agreement with respect to indemnified persons and Affiliates or as otherwise expressly provided herein, nothing in this Agreement shall be construed to create any duty to, standard of care with respect to, or any liability to any Person who is not a Party to this Agreement. 
  
 Section 13.11 Assignment; Change of Control. Neither Party may sell, assign or otherwise transfer, voluntarily or by operation of law, all or any part of its rights under this Agreement.  
  
 Section 13.12 Time is of the Essence. Time is of the essence of this Agreement.
  
 Signature Pages to Follow
  
 	 
	13
	

	 

  
 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.
   
 	 V Engineering & Consulting, LLC 
	  
	 MMEX Resources Corporation 
	  

	    
		  
	  
		  

	 By:
	 /s/ JORGE RUIZ DEL VIZO V 
	  
	 By:
	 /s/ JACK W. HANKS
	  

	 Name:
	 Jorge Ruiz Del Vizo V 
	  
	 Name:
	 Jack W. Hanks
	  

	 Title:
	 Director 
	  
	 Title:
	 President and CEO
	  

  
 	 
	14Exhibit
4.1

 

DESCRIPTION
OF CAPITAL STOCK

 

Overview

 

POWER
Reit has two (2) classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”): (i) common shares of beneficial interest, $0.001 par value per share (the “Common Shares”), and (ii)
7.75% Series A Cumulative Redeemable Perpetual Preferred Stock, Liquidation Preference $25 per Share (the “Series A Preferred
Stock”).

 

References
to the “Company,” “we,” “us,” and “our” herein, unless the context otherwise indicates,
refers to Power REIT, a Real Estate Investment Trust organized under the laws of the State of Maryland.

 

The
following description of our Common Shares and Series A Preferred Stock is a summary of the detailed provisions of our Declaration
of Trust (the “Declaration of Trust” or “Charter”) and By-laws governing the terms of these securities.
These statements do not purport to be complete, or to give full effect to the provisions of applicable statutory and common law,
and are subject to, and qualified in their entirety by reference to, the terms of our Declaration of Trust and By-Laws.

 

Pursuant
to our Declaration of Trust, we are currently authorized to issue 100,000,000 Common Shares or such other class of shares
as may be determined by the Board of Trustees. Our Board of Trustees, without any action by our shareholders, may amend our Declaration
of Trust from time to time to issue securities of any type, class or series and increase or decrease the aggregate number of authorized
Common Shares or other securities of any type, including without limitation any class or series of securities. Other than our
Common Shares and our Series A Preferred Stock we do not currently have any other class of stock issued and outstanding.

 

Pursuant
to our Declaration of Trust, the Board of Trustees may authorize, without approval of any shareholder, the issuance from time
to time of shares of any class or series or securities or rights convertible into shares of any class or series for such consideration
(whether in cash, property, past or future services, obligation for future payment or otherwise) as the Board of Trustees may
deem advisable (or without consideration in the case of a share dividend or share split).

 

Except
as may be provided by the Board of Trustees in setting the terms of any particular securities that we may issue, no holder of
shares of our stock or other securities has any preemptive right to purchase or subscribe for any additional shares of our stock
or other securities.

 

Power
to Reclassify Shares of Our Stock

 

Our
Board of Trustees may classify any unissued shares of preferred stock, and reclassify any unissued shares of Common Shares or
any previously classified but unissued shares of preferred stock, into other classes or series of stock, including one or more
classes or series of stock that have priority over our Common Shares with respect to voting rights, distributions or upon liquidation,
and authorize us to issue the newly classified shares. Prior to the issuance of shares of each class or series, our Board is required
by the Maryland General Corporation Law, and our Charter to set, subject to the provisions of our Charter regarding the restrictions
on ownership and transfer of our stock, the preferences, conversion or other rights, voting powers, restrictions, limitations
as to dividends and other distributions, qualifications and terms and conditions of redemption for each such class or series.
These actions can be taken without shareholder approval, unless shareholder approval is required by applicable law, the terms
of any other class or series of our stock or the rules of any stock exchange or automated quotation system on which our securities
may be listed or traded.

 

Power
to Increase Authorized Stock and Issue Additional Shares of Our Common Shares and Preferred Stock

 

We
believe that the power of our Board to amend our Charter from time to time to increase the aggregate number of authorized shares
of stock and the number of shares of stock of any class or series that we have the authority to issue, to issue additional authorized
but unissued shares Common Shares or preferred stock and to classify or reclassify unissued our Common Shares or preferred stock
into other classes or series of stock and thereafter to cause us to issue such classified or reclassified shares of stock will
provide us with flexibility in structuring possible future financings and acquisitions and in meeting other needs which might
arise. Shares of additional classes or series of stock, as well as additional shares of Common Shares, will be available for issuance
without further action by our shareholders, unless shareholder consent is required by applicable law or the rules of any stock
exchange or automated quotation system on which our securities are then listed or traded.

 

    	1

    	 

    

 

Restrictions
on Transfer and Ownership of Stock

 

In
order for us to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), our Common Shares
must be owned by 100 or more persons during at least 335 days of a taxable year of 12 months (other than the first year for which
an election to be taxed as a REIT has been made) or during a proportionate part of a shorter taxable year. Also, under Section
856(h) of the Code, a REIT cannot be “closely held.” In this regard, not more than 50% of the value of the outstanding
shares of stock may be owned, directly or indirectly, by five or fewer individuals (as defined in the Code to include certain
entities) during the last half of a taxable year (other than the first year for which an election to be a REIT has been made).

 

Our
Charter contains restrictions on the ownership and transfer of our Common Shares and other outstanding shares of stock. The relevant
sections of our Charter provide that, subject to the exceptions described below, no person or entity may own, or be deemed to
own, by virtue of the applicable constructive ownership provisions of the Code, more than 9.9% in value of the aggregate of our
outstanding Common Shares or more than 9.9% (in value or in number of shares, whichever is more restrictive) of any class or series
of our shares of stock; we refer to these limitations as the “ownership limits.” On April 28, 2014, our Board of Trustees
granted an exemption to Hudson Bay Partners, LP, on behalf of itself, and its affiliates, including David H. Lesser from the 9.9%
ownership limit.

 

The
constructive ownership rules under the Code are complex and may cause shares of stock owned actually or constructively by a group
of related individuals or entities to be owned constructively by one individual or entity. As a result, the acquisition of less
than 9.9% in value of the aggregate of our outstanding shares of stock or 9.9% (in value or in number of shares, whichever is
more restrictive) of any class or series of our Common Shares (or the acquisition of an interest in an entity that owns, actually
or constructively, shares of our stock by an individual or entity), could, nevertheless, cause that individual or entity, or another
individual or entity, to violate the ownership limits.

 

Common
Shares

 

General

 

All
of our issued and outstanding Common Shares are fully paid and nonassessable.

 

Voting
Rights

 

Each
holder of Common Shares is entitled to one vote for each share registered in such holder’s name on our books on all matters
submitted to a vote of shareholders. The holders of our Common Shares do not have cumulative voting rights. As a result, the holders
of Common Shares entitled to exercise more than 50% of the voting rights in an election of trustees can elect 100% of the trustees
to be elected if they choose to do so. In such event, the holders of the remaining Common Shares voting for the election of trustees
will not be able to elect any persons to our Board of Trustees. The Company’s quorum requirements for the election of trustees
and for other general matters submitted to a vote of shareholders, is 33% unless otherwise specified by statute or in our governing
documents. Our trustees are elected to serve for one-year terms and are re-elected annually at the annual shareholders’
meeting.

 

Dividend
Rights

 

Holders
of Common Shares are entitled to such dividends as our Board of Trustees may declare out of funds legally available therefore.
Debt agreements or preferred stock agreements that we enter into may contain restrictions on certain payments by us, including
dividends.

 

    	2

    	 

    

 

Liquidation
Rights and Other Preferences

 

Subject
to the prior rights of creditors and any preferred stock outstanding, the holders of the Common Shares are entitled in the event
of liquidation, dissolution or winding up to share pro rata in the distribution of all remaining assets. There are no preemptive
or conversion rights or redemption or sinking fund provisions in respect of the Common Shares.

 

Maryland
Law permits a Maryland real estate investment trust to include in its declaration of trust a provision limiting the liability
of its trustees and officers to the trust and its shareholders for money damages except for liability resulting from (a) actual
receipt of an improper benefit or profit in money, property or services or (b) active or deliberate dishonesty established in
a judgment or other final adjudication to be material to the cause of action. Our Declaration of Trust contains a provision that
limits the liability of our trustees and officers to the maximum extent permitted by Maryland law.

 

Listing

 

The
Common Shares are listed on the NYSE American under the ticker “PW.”

 

Transfer
Agent and Registrar

 

The
Transfer Agent and Registrar for our Common Shares is Broadridge Corporate Issuer Solutions, Inc.

 

Certain
Restrictions on Size of Holdings and Transferability

 

In
order to assist us in complying with the limitations on the concentration of ownership of REIT stock imposed by the Code , among
other purposes, our Declaration of Trust provides that no person or entity may own, directly or indirectly, more than 9.9% in
economic value of the aggregate of the outstanding Common Shares of Power REIT. However, our Charter authorizes our Board of Trustees
to exempt from time to time the ownership limits applicable to certain named individuals or entities. This provision or other
provisions in our Declaration of Trust or By-laws, or provisions that we may adopt in the future, may limit the ability of our
shareholders to sell their shares at a premium over then-current market prices by discouraging a third party from seeking to obtain
control of us. On April 28, 2014, our Board of Trustees granted an exemption to Hudson Bay Partners, LP, on behalf of itself,
and its affiliates, including David H. Lesser from the 9.9% ownership limit.

 

Our
Charter also prohibits any person from (1) beneficially or constructively owning shares of our capital stock that would result
in our being “closely held” under Section 856(h) of the Code at any time during the taxable year, (2) transferring
shares of our capital stock if such transfer would result in our stock being beneficially or constructively owned by fewer than
100 persons and (3) beneficially or constructively owning shares of our capital stock if such ownership would cause us otherwise
to fail to qualify as a REIT.

 

Preferred
Stock

 

General

 

Our
Board of Trustees has the power under our Charter to classify and reclassify any unissued Common Shares into one or more classes
or series of preferred stock, set the terms of each such class or series and authorize us to issue the newly classified or reclassified
shares. Each such class or series of preferred stock will have such designations, preferences, conversion or other rights, voting
powers, restrictions, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption
as shall be determined by the Board of Trustees.

 

The
Board of Trustees has reclassified and designated 175,000 shares of our Common Shares of beneficial interest as Series A Preferred
Stock, and the current authorized capital stock of the Company consists of 100,000,000 shares, classified as 99,825,000 Common
Shares and 175,000 shares of Series A Preferred Stock.

 

    	3

    	 

    

 

Additional
shares of preferred stock may be issued in one or more series from time to time by our Board of Trustees, and the Board of Trustees
is expressly authorized to fix the designations and the powers, preferences and rights, and the qualifications, limitations and
restrictions of each series. Subject to the determination of our Board of Trustees, any shares of preferred stock that may be
issued in the future would generally have preferences over our Common Shares with respect to the payment of dividends and the
distribution of assets in the event of any liquidation, dissolution or winding up of Power REIT.

 

Preferred
stock may be issued independently or together with any other securities and may be attached to or separate from the securities.
The statements below describing the preferred stock are in all respects subject to and qualified in their entirety by reference
to the applicable provisions of our Charter and bylaws setting forth the terms of a class or series of preferred stock. The issuance
of preferred stock could adversely affect the voting power, dividend rights and other rights of holders of Common Shares. Although
our Board of Trustees does not have this intention at the present time, it or a duly authorized committee could establish another
class or series of preferred stock, that could, depending on the terms of the series, delay, defer or prevent a transaction or
a change in control of our company that might involve a premium price for the Common Shares or otherwise be in the best interest
of the holders thereof.

 

Below
is a description of our Series A Preferred Stock:

 

Series
A Preferred Stock

 

Ranking

 

The
Series A Preferred Stock, as to dividend rights and rights upon our liquidation, dissolution or winding-up, ranks:

 

	 	●	senior
    to our Common Shares and to all other equity securities ranking junior to the Series A Preferred Stock with respect to dividend
    rights and rights upon our liquidation, dissolution or winding up;
	 	 	 
	 	●	equal
    to any class or series of equity securities ranking equal to the Series A Preferred Stock with respect to dividend rights
    or rights upon our liquidation, dissolution or winding up; and
	 	 	 
	 	●	junior
    to any class or series of equity securities ranking senior to the Series A Preferred Stock with respect to dividend rights
    or rights upon our liquidation, dissolution or winding up.

 

The
term “equity securities” does not include convertible debt securities, which would rank senior to the Series A Preferred
Stock prior to conversion (and whose ranking after conversion would depend on the specific terms of the post-conversion securities).
In addition, the Series A Preferred Stock ranks junior to all our current and future indebtedness and the indebtedness of our
subsidiaries.

 

Dividends

 

Holders
of outstanding shares of the Series A Preferred Stock are entitled to receive, out of funds legally available for the payment
of dividends, cumulative cash dividends in the amount of $1.9375 per share each year, which is equivalent to the rate of 7.75%
of the $25.00 liquidation preference per share of Series A Preferred Stock per annum.

 

Liquidation
Preference

 

Upon
any voluntary or involuntary liquidation, dissolution or winding up of our affairs, the holders of Series A Preferred Stock will
be entitled to be paid out of our assets legally available for distribution to our shareholders a liquidation preference of $25.00
per share, plus an amount equal to any accrued and unpaid dividends (whether or not declared) to, but not including, the date
of payment, before any distribution or payment may be made to holders of Common Shares or any other class or series of our equity
stock ranking, as to liquidation rights, junior to the Series A Preferred Stock. If, upon our voluntary or involuntary liquidation,
dissolution or winding up, our available assets are insufficient to pay the full amount of the liquidating distributions on all
outstanding shares of Series A Preferred Stock and the corresponding amounts payable on all shares of each other class or series
of stock ranking, as to liquidation rights, equal to the Series A Preferred Stock, then the holders of the Series A Preferred
Stock and the shares of each such other class or series of stock ranking, as to liquidation rights, equal to the Series A Preferred
Stock will share ratably in any distribution of assets in proportion to the full liquidating distributions to which they would
otherwise be respectively entitled.

 

    	4

    	 

    

 

Our
consolidation or merger with or into any other person or entity or the sale, lease, transfer or conveyance of all or substantially
all of our property or business will not be deemed to constitute our liquidation, dissolution or winding up.

 

Optional
Redemption

 

Notwithstanding
any other provision relating to redemption or repurchase of the Series A Preferred Stock, we may currently redeem any or all of
the Series A Preferred Stock at any time, at a redemption price of $25.00 per share plus all dividends accrued and unpaid (whether
or not declared), if our board of trustees determines that such redemption is necessary to preserve our status as a REIT for federal
income tax purposes.

 

If
less than all of the outstanding Series A Preferred Stock is to be redeemed, the shares to be redeemed will be determined pro
rata, by lot or in such other equitable manner as prescribed by our Board of Trustees that will not result in a violation of the
ownership limits and restrictions on transfer of our stock contained in our Charter.

 

Notwithstanding
the foregoing, unless full cumulative dividends on all outstanding Series A Preferred Stock have been or contemporaneously are
declared and paid in cash or declared and a sum sufficient for the cash payment of the dividends has been set apart for payment
for all past dividend periods, no shares of Series A Preferred Stock may be redeemed unless all outstanding shares of Series A
Preferred Stock are simultaneously redeemed.

 

Special
Optional Redemption

 

During
any period of time that both (i) the Series A Preferred Stock is not listed on the NYSE MKT, the NYSE, NASDAQ or an exchange or
quotation system that is a successor to the NYSE MKT, the NYSE or NASDAQ and (ii) we are not subject to the reporting requirements
of the Exchange Act, but any Series A Preferred Stock is outstanding (such combination of circumstances a “Delisting Event”),
we will have the option to redeem the outstanding Series A Preferred Stock, in whole and not in part, within 90 days after any
such Delisting Event, for a redemption price of $25.00 per share plus all dividends accrued and unpaid (whether or not declared)
to, but not including, the redemption date (unless the redemption date is after a record date for a Series A Preferred Stock declared
dividend payment and prior to the corresponding Series A Preferred Stock dividend payment date, in which case no additional amount
for such accrued and unpaid dividend will be included in the redemption price), upon the giving of notice, as provided below.

 

In
addition, upon the occurrence of a Change of Control (as defined below), we may, at our option, redeem the Series A Preferred
Stock, in whole and not in part, and within 120 days after any such Change of Control occurred, by paying $25.00 per share plus
all dividends accrued and unpaid (whether or not declared) on the Series A Preferred Stock to, but not including, the date of
redemption (unless the redemption date is after a record date for a Series A Preferred Stock declared dividend payment and prior
to the corresponding Series A Preferred Stock dividend payment date, in which case no additional amount for such accrued and unpaid
dividend will be included in the redemption price). If, prior to the Delisting Event Conversion Date or Change of Control Conversion
Date (each as defined below), as applicable, we provide notice of redemption with respect to the Series A Preferred Stock (whether
pursuant to our optional redemption right or our special optional redemption right), Series A Preferred Stockholders will not
have the conversion right described below under “—Conversion Rights.”

 

Notwithstanding
the foregoing, we shall not have the right to redeem the Series A Preferred Stock (x) upon any Delisting Event occurring in connection
with a transaction set forth in the first bullet point of the definition of Change of Control unless such Delisting Event also
constitutes a Change of Control or (y) with respect to any Delisting Event or Change of Control occurring in connection with a
transaction (an “Affiliate Transaction”) with, or by, any person who prior to such transaction is an affiliate of
the Company.

 

If
(i) we have given a notice of redemption, (ii) we have set aside sufficient funds for the redemption of the shares of Series A
Preferred Stock called for redemption and (iii) irrevocable instructions have been given to pay the redemption price and all applicable
accrued and unpaid dividends, then from and after the redemption date, those shares of Series A Preferred Stock will no longer
be outstanding, no further dividends will accrue on them and all other rights of the holders of those shares of Series A Preferred
Stock will terminate, except the right to receive the redemption price, without interest.

 

    	5

    	 

    

 

A
“Change of Control” occurs when, after the original issuance of the Series A Preferred Stock, the following have occurred
and are continuing:

 

	 	●	the
    acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of
    the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction
    or series of purchases, mergers or other acquisition transactions of shares of our stock entitling that person to exercise
    more than 50% of the total voting power of all outstanding shares of our stock entitled to vote generally in the election
    of trustees (except that such person will be deemed to have beneficial ownership of all securities that such person has the
    right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition);
    and
	 	 	 
	 	●	following
    the closing of any transaction referred to in the bullet point above, neither we nor the acquiring or surviving entity has
    a class of common securities (or ADRs representing such securities) listed on the NYSE MKT, the NYSE, NASDAQ or an exchange
    or quotation system that is a successor to the NYSE MKT, the NYSE or NASDAQ.

 

Redemption
at Option of Holder upon a Change of Control/Delisting Event

 

Upon
the occurrence of a Change of Control during a continuing Delisting Event at any time the Series A Preferred Stock is outstanding,
then each holder of shares of Series A Preferred Stock shall have the right, at such holder’s option, to require us to redeem
for cash any or all of such holder’s shares of Series A Preferred Stock, on a date specified by us that can be no earlier
than 30 days and no later than 60 days following the date of delivery (the “Change of Control/Delisting Redemption Date”)
of the Change of Control/Delisting Company Notice, at a redemption price equal to 100% of the liquidation preference of $25.00
per share plus an amount equal to all accrued but unpaid dividends (whether or not authorized or declared), to and including the
Change of Control/Delisting Redemption Date; provided, a holder shall not have any right of redemption with respect to any shares
of Series A Preferred Stock being called for redemption pursuant to our optional redemption as described above under “Description
of Capital Stock-Preferred Stock-Series A Preferred Stock-Optional Redemption,” or our special optional redemption as described
above under “Description of Capital Stock-Preferred Stock-Series A Preferred Stock-Special Optional Redemption to the extent
we have delivered notice of our intent to redeem on or prior to the date of delivery of the Change of Control/Delisting Company
Notice.

 

Conversion
Rights

 

Upon
the occurrence of a Delisting Event or a Change of Control, as applicable, each holder of Series A Preferred Stock will have the
right, unless prior to the Delisting Event Conversion Date or Change of Control Conversion Date, as applicable, we provide notice
of our election to redeem such shares of Series A Preferred Stock as described under “— Optional Redemption”
or “—Special Optional Redemption,” to convert all or part of the shares of Series A Preferred Stock held by
such holder (the “Delisting Event Conversion Right” or “Change of Control Conversion Right”, as applicable)
on the Delisting Event Conversion Date or Change of Control Conversion Date, as applicable, into a number of shares of Common
Shares per share of Series A Preferred Stock (the “Common Share Conversion Consideration”) equal to the lesser of:

 

	 	●	the
    quotient obtained by dividing (i) the sum of the $25.00 liquidation preference per share of Series A Preferred Stock to be
    converted plus the amount of any accrued and unpaid dividends (whether or not declared) to, but not including, the Delisting
    Event Conversion Date or Change of Control Conversion Date, as applicable (unless the Delisting Event Conversion Date or Change
    of Control Conversion Date, as applicable, is after a record date for a Series A Preferred Stock declared dividend payment
    and prior to the corresponding Series A Preferred Stock dividend payment date, in which case no additional amount for such
    accrued and unpaid dividend to be paid on such dividend payment date will be included in this sum), by (ii) the Common Share
    Price, as defined below (such quotient, the “Conversion Rate”); and
	 	 	 
	 	●	5,
    which we refer to as the “Share Cap.”

 

 

    	6

    	 

    

 

The
Share Cap is subject to pro rata adjustments for any share splits (including those effected pursuant to a Common Shares dividend),
subdivisions or combinations (in each case, a “Share Split”) with respect to shares of our Common Shares as follows:
the adjusted Share Cap as the result of a Share Split will be the number of shares of our Common Shares that is equivalent to
the product of (i) the Share Cap in effect immediately prior to such Share Split multiplied by (ii) a fraction, the numerator
of which is the number of shares of our Common Shares outstanding after giving effect to such Share Split and the denominator
of which is the number of shares of our Common Shares outstanding immediately prior to such Share Split.

 

In
the case of a Delisting Event or Change of Control pursuant to, or in connection with, which shares of our Common Shares will
be converted into cash, securities or other property or assets (including any combination thereof) (the “Alternative Form
Consideration”), a holder of shares of Series A Preferred Stock will receive upon conversion of such Series A Preferred
Stock the kind and amount of Alternative Form Consideration which such holder would have owned or been entitled to receive had
such holder held a number of shares of our Common Shares equal to the Common Shares Conversion Consideration immediately prior
to the effective time of the Delisting Event or Change of Control (the “Alternative Conversion Consideration”; and
the Common Shares Conversion Consideration or the Alternative Conversion Consideration, as may be applicable to a Delisting Event
or Change of Control, is referred to as the “Conversion Consideration”).

 

Voting
Rights

 

Except
as described below, holders of Series A Preferred Stock have no voting rights. On any matter in which the Series A Preferred Stock
may vote (as expressly provided in our Charter), each share of Series A Preferred Stock shall entitle the holder thereof to cast
one vote.

 

If
dividends on the Series A Preferred Stock are not paid, whether or not declared, for six or more quarterly periods, whether or
not these quarterly periods are consecutive, holders of Series A Preferred Stock (voting separately as a class with any other
series of preferred stock ranking equal to the Series A Preferred Stock as to dividends and upon liquidation and upon which like
voting rights have been conferred and are exercisable, which we refer to as “voting preferred stock”) will be entitled
to vote, at any special meeting called by our secretary at the request of holders of record of at least 10% of the outstanding
shares of Series A Preferred Stock and any such series of voting preferred stock (unless such request is received fewer than 90
days before our next annual meeting of shareholders at which such vote shall occur) and at each annual meeting of shareholders,
for the election of two additional trustees to serve on our Board of Trustees. The right of holders of Series A Preferred Stock
to vote in the election of such trustees will terminate when all dividends accumulated on the outstanding shares of Series A Preferred
Stock for all past dividend periods shall have been fully paid or declared and a sum sufficient for the cash payment thereof set
aside for payment. Unless the number of our trustees has previously been increased pursuant to the terms of any series of voting
preferred stock with which the holders of Series A Preferred Stock are entitled to vote together as a single class in the election
of such trustees, the number of our trustees will automatically increase by two at such time as holders of Series A Preferred
Stock become entitled to vote in the election of two additional trustees. Unless shares of voting preferred stock remain outstanding
and entitled to vote in the election of such trustees, the term of office of such trustees will terminate, and the number of our
trustees will automatically decrease by two, when all dividends accumulated for past dividend periods on the Series A Preferred
Stock have been fully paid or declared and a sum sufficient for the cash payment thereof set aside for payment. If the rights
of holders of Series A Preferred Stock to elect the two additional trustees terminate after the record date for the determination
of holders of shares of Series A Preferred Stock entitled to vote in any election of such trustees but before the closing of the
polls in such election, holders of Series A Preferred Stock outstanding as of such record date will not be entitled to vote in
such election of trustees. The right of the holders of Series A Preferred Stock to elect the additional trustees will again vest
if and whenever dividends are not paid for six quarterly periods, as described above. In no event will the holders of Series A
Preferred Stock be entitled to nominate or elect an individual as a trustee, and no individual shall be qualified to be so nominated
for election or to so serve as a trustee, if the individual’s service as a trustee would cause us to fail to satisfy a requirement
relating to director independence of any national securities exchange on which any class or series of our stock is listed. In
class votes with shares of other series of voting preferred stock, shares of different classes or series shall vote in proportion
to the liquidation preference of the shares. shareholders Any trustee elected by the holders of Series A Preferred Stock and any
series of voting preferred stock may be removed only by a vote of the holders of a majority of the outstanding shares of Series
A Preferred Stock and all series of voting preferred stock with which the holders of Series A Preferred Stock are entitled to
vote together as a single class in the election of such trustees. At any time that the holders of Series A Preferred Stock are
entitled to vote in the election of the two additional trustees, holders of Series A Preferred Stock will be entitled to vote
in the election of a successor to fill any vacancy on our Board of Trustees that results from the removal of such a trustee.

 

    	7

    	 

    

 

At
any time that holders of Series A Preferred Stock have the right to elect two additional trustees as described above but such
trustees have not been elected, our secretary must call a special meeting for the purpose of electing the additional trustees
upon the written request of the holders of record of 10% of the outstanding shares of Series A Preferred Stock and all series
of voting preferred stock with which the holders of Series A Preferred Stock are entitled to vote together as a single class with
respect to the election of such trustees, unless such a request is received less than 90 days before the date fixed for the next
annual meeting of our shareholders, in which case, the additional trustees may be elected at such annual meeting.

 

Any
amendment, alteration, repeal or other change to any provision of our Charter, including the supplementary articles setting forth
the terms of the Series A Preferred Stock (whether by merger, consolidation, transfer or conveyance of all or substantially all
of our assets or otherwise) that would materially and adversely affect the rights, preferences, privileges or voting powers of
the Series A Preferred Stock must be approved by the affirmative vote of at least 66 2/3% of the votes entitled to be cast by
the holders of Series A Preferred Stock and any other series of voting preferred stock entitled to vote together with the holders
of Series A Preferred Stock on the matter, voting together as a single class. In addition, the creation, issuance or increase
in the authorized number of shares of any class or series of stock having a preference as to dividends or other distributions,
whether upon liquidation, dissolution or otherwise, that is senior to the Series A Preferred Stock (or any equity securities convertible
or exchangeable into any such shares) requires approval by the affirmative vote of at least 66 2/3% of the votes entitled to be
cast by the holders of Series A Preferred Stock and any other series of voting preferred stock entitled to vote together with
the holders of Series A Preferred Stock on the matter, voting together as a single class.

 

The
following actions will not be deemed to materially and adversely affect the rights, preferences, privileges or voting powers of
the Series A Preferred Stock:

 

	 	●	any
    increase or decrease in the number of authorized shares of Common Shares or preferred stock of any series or the classification
    or reclassification of any unissued shares, or the creation or issuance of equity securities, of any class or series ranking,
    as to dividends or liquidation preference, equal to, or junior to, the Series A Preferred Stock; or
	 	 	 
	 	●	any
    amendment, alteration or repeal or other change to any provision of our Charter, including the supplementary articles setting
    forth the terms of the Series A Preferred Stock, as a result of a merger, consolidation, transfer or conveyance of all or
    substantially all of our assets or other business combination, if the Series A Preferred Stock (or stock into which the Series
    A Preferred Stock has been converted in any successor person or entity to us) remain outstanding with the terms thereof unchanged
    in all material respects or are exchanged for stock of the successor person or entity with substantially identical rights,
    taking into account that, upon the occurrence of an event described in this bullet point, we may not be the surviving entity.
    Furthermore, if the holders of the Series A Preferred Stock receive the greater of the full trading price of the Series A
    Preferred Stock on the last date prior to the first public announcement of an event described in this bullet point or the
    $25.00 liquidation preference per share of Series A Preferred Stock plus accrued and unpaid dividends (whether or not declared)
    to, but not including, the date of such event, pursuant to the occurrence of any of the events described in this bullet point
    (other than an Affiliate Transaction), then such holders will not have any voting rights with respect to the events described
    in this bullet point.

 

The
voting provisions above will not apply if, at or prior to the time when the act with respect to which the vote would otherwise
be required would occur, we have redeemed or called for redemption upon proper procedures all outstanding shares of Series A Preferred
Stock.

 

No
Maturity, No Sinking Fund

 

The
Series A Preferred Stock has no stated maturity date and will not be subject to any sinking fund.

 

    	8

    	 

    

 

Ownership
Limits and Restrictions on Transfer

 

In
order to allow us to maintain our qualification as a REIT for federal income tax purposes, ownership and transfer by any person
of our outstanding equity securities is restricted in our Charter. To qualify as a REIT under the Code, we must satisfy a number
of statutory requirements, including a requirement that no more than 50% in value of our outstanding shares of stock may be owned,
actually or constructively, by five or fewer individuals (as defined by the Code to include certain entities) during the last
half of a taxable year. Our capital stock must also be beneficially owned by 100 or more persons during at least 335 days of a
taxable year of twelve months or during a proportionate part of a shorter taxable year.

 

Under
our Charter, the trustees may redeem shares or restrict transfers of shares when the trustees, in good faith, believe that such
redemption or restriction is necessary to prevent disqualification of REIT status. Additionally, our Charter prohibits any transfer
of shares of our stock or any other change in our capital structure that would result in:

 

	 	●	any
    person directly or indirectly acquiring beneficial or constructive ownership of more than 9.9% (in value or number of shares,
    whichever is more restrictive) of the outstanding shares of our stock;
	 	 	 
	 	●	outstanding
    shares of our stock being beneficially owned by fewer than 100 persons;
	 	 	 
	 	●	us
    being “closely held” within the meaning of Section 856 of the Code; or
	 	 	 
	 	●	us
    otherwise failing to qualify as a REIT under the Code.

 

Our
Charter requires that any person who acquires or attempts to acquire shares of our stock, in violation of these restrictions,
which we refer to as the ownership limits, give at least 15 days’ prior written notice to us. If any person attempts to
affect a transfer of shares of our stock, or attempts to cause any other event to occur that would result in a violation of the
ownership limits, then:

 

	 	●	(i)
    that number of shares the beneficial ownership or constructive ownership of which otherwise would cause such person to violate
    the ownership limits shall be automatically transferred to a Charitable Trust for the benefit of a Charitable Beneficiary,
    as described in our Charter, effective as of the close of business on the business day prior to the date of such transfer,
    and such person shall acquire no rights in such shares; or (ii) if the transfer to the Charitable Trust described in clause
    (i) of this sentence would not be effective for any reason to prevent the violation of the ownership limits, then the transfer
    of that number of shares that otherwise would cause a violation of the ownership limits shall be void ab initio, and
    the intended transferee shall acquire no rights in such shares.
	 	 	 
	 	●	our
    board of trustees may take any action it deems advisable to refuse to give effect to, or to prevent, any such attempted transfer
    or other event, including, without limitation, causing us to redeem the shares, refusing to give effect to such transfer on
    our books or instituting proceedings to enjoin such transfer or other event; provided however, than any transfer or attempted
    transfer in violation of the ownership limits shall automatically result in the transfer to the Charitable Trust described
    above and, where applicable, such Transfer (or other event) shall be void ab initio as provided above irrespective
    of any action (or non-action) by the board of trustees or a committee thereof.

 

Shares
held by the Charitable Trustee shall be issued and outstanding shares of ours. The violating transferee shall have no rights in
the shares held by the Charitable Trustee. The violating transferee shall not benefit economically from ownership of any shares
held in trust by the Charitable Trustee, shall have no rights to dividends or other distributions and shall not possess any rights
to vote or other rights attributable to the shares held in the Charitable Trust. The violating transferee shall have no claim,
cause of action, or any other recourse whatsoever against the purported transferor of such shares.

 

Every
holder of more than 2% of the number or value of outstanding shares of our Series A Preferred Stock must give written notice to
us stating the name and address of such owner, the number of shares of stock beneficially or constructively owned and a description
of the manner in which the shares are owned. Our board of trustees may, in its sole and absolute discretion, exempt certain persons
from the ownership limitations contained in our Charter if ownership of shares of capital stock by such persons would not disqualify
us as a REIT under the Code.

 

    	9

    	 

    

 

Further
Issuances

 

We
may create and issue additional shares of Series A Preferred Stock ranking equally with the Series A Preferred Stock, so that
such additional shares of Series A Preferred Stock will form a single series with the Series A Preferred Stock offered and will
have the same terms.

 

Conversion

 

The
Series A Preferred Stock will not be convertible into or exchangeable for any other property or securities, except as provided
under “—Conversion Rights.”

 

Preemptive
Rights

 

No
holders of Series A Preferred Stock shall, as a result of his, her or its status as such holder, have any preemptive rights to
purchase or subscribe for our Common Shares or any of our other securities.

 

Book-Entry
Form

 

The
Series A Preferred Stock were issued and maintained in book-entry form registered in the name of the nominee of DTC. Shares of
Series A Preferred Stock are eligible for the Direct Registration System service offered by the DTC and may be represented in
the form of uncertificated or certificated shares, provided, however, that any holder of certificated shares of Series A Preferred
Stock and, upon request, every holder of uncertificated shares of Series A Preferred Stock is entitled to have a certificate for
shares of Series A Preferred Stock signed by, or in the name of, the Company in accordance with the articles supplementary relating
to the Series A Preferred Stock.

 

Listing

 

The
Series A Preferred Stock issue listed on the NYSE American under the ticker “PW.A.”

 

Registrar,
Transfer Agent and Disbursing Agent

 

The
registrar, transfer agent and disbursing agent for dividends and other distributions in respect of our Series A Preferred Stock
is Broadridge Corporate Issuer Solutions, Inc.

 

    	10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}]]