Document:

abio-ex101_6.htm

Exhibit 10.1

 

AMENDMENT NO. 1 TO Capital on DemandTM SALES AGREEMENT

April 6, 2021

 

JonesTrading Institutional Services LLC

757 Third Avenue, 23rd Floor

New York, NY 10017

 

Ladies and Gentlemen:

 

ARCA biopharma, Inc., a Delaware corporation (the “Company”), together with JonesTrading Institutional Services, Inc. (the “Agent”), are parties to that certain Capital on DemandTM Sales Agreement dated July 22, 2020 (the “Original Agreement”). All capitalized terms not defined herein shall have the meanings ascribed to them in the Original Agreement.  The Company and the Agent desire to amend the Original Agreement as set forth in this Amendment No. 1 thereto (this “Amendment) as follows:

1.With respect to issuances of Placement Shares that occur on or after the date this Amendment becomes effective, reference to the “Registration Statement” in the Original Agreement shall refer to the registration statement on Form S-3 (333-254585), as amended, filed with the Securities and Exchange Commission on March 22, 2021 and declared effective on March 30, 2021 (“New Registration Statement”).

 

2.The second paragraph of Section 1 is hereby deleted and replaced as follows:

 

“As of the date hereof, the Company has filed or will file a registration statement on Form S-3, in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder (the “Securities Act Regulations”), with the Commission, including a base prospectus, relating to certain securities, including the Placement Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder (the “Exchange Act Regulations”). The Company has prepared or will prepare a prospectus included as a part of such registration statement or prospectus supplement to the base prospectus included as part of such registration statement, specifically relating to the Placement Shares (the “Prospectus Supplement”). The Company will furnish to the Agent, for use by the Agent, copies of the prospectus included as part of such registration statement, as supplemented by the Prospectus Supplement, relating to the Placement Shares. Except where the context otherwise requires, such registration statement, including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act Regulations or any subsequent registration statement on Form S-3 filed pursuant to Rule 415(a)(6) under the Securities Act by the Company to cover 

 

 

any securities registered pursuant the Current Registration Statement, including any Placement Shares, as a result of the end of the three-year period described in Rule 415(a)(5) of the Securities Act, is herein called the “Registration Statement.” The base prospectus, including all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented by the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations, together with any then issued Issuer Free Writing Prospectus (defined below), is herein called the “Prospectus.” Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein.”

 

3.Section 13 is hereby amended to replace:

 

“ARCA biopharma, Inc.

11080 CirclePoint Road

Suite 140

Westminster, CO 80020

Attn: Brian Selby”

 

With,

 

“ARCA biopharma, Inc.

10170 Church Ranch Way, Suite 100

Westminster, Colorado 80021

Attn: Brian Selby”

 

4.All references to “July 22, 2020” set forth in Schedule 1 and Exhibit 7(l) of the Original Agreement are revised to read “July 22, 2020 (as amended by Amendment No. 1, dated April 6, 2021)”.

 

5.Except as specifically set forth herein, all other provisions of the Original Agreement shall remain in full force and effect.

 

6.This Amendment together with the Original Agreement (including all exhibits attached hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. Neither this Amendment nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Agent.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained 

2

 

 

herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Amendment. All references in the Original Agreement to the “Agreement” shall mean the Original Agreement as amended by this Amendment; provided, however, that all references to “date of this Agreement” in the Original Agreement shall continue to refer to the date of the Original Agreement.

 

7.EACH OF THE COMPANY (ON ITS BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS AND AFFILIATES) AND THE AGENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

8.THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF, THE STATE OF NEW YORK WITHOUT REGARD TO ITS CHOICE OF LAW PROVISIONS. 

 

9.Each of the Company and the Agent agrees that any legal suit, action or proceeding arising out of or based upon this Amendment or the transactions contemplated hereby (“Related Proceedings”) shall be instituted in (i) the federal courts of the United States of America located in the City and County of New York, Borough of Manhattan or (ii) the courts of the State of New York located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”), and irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any Specified Court, as to which such jurisdiction is non-exclusive) of the Specified Courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to a party’s address set forth in Section 14 of the Original Agreement, as amended by this Amendment, shall be effective service of process upon such party for any suit, action or proceeding brought in any Specified Court. Each of the Company and the Agent irrevocably and unconditionally waives any objection to the laying of venue of any suit, action or proceeding in the Specified Courts and irrevocably and unconditionally waives and agrees not to plead or claim in any Specified Court that any such suit, action or proceeding brought in any Specified Court has been brought in an inconvenient forum.

 

10.This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed amendment by one party to the other may be made by facsimile transmission or electronic transmission (e.g., PDF).

 

 

[Remainder of Page Intentionally Blank]

 

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If the foregoing correctly sets forth the understanding between the Company and the Agent, please so indicate in the space provided below for that purpose, whereupon this Amendment shall constitute a binding amendment to the Original Agreement between the Company and the Agent.  

Very truly yours,

 

JONESTRADING INSTITUTIONAL SERVICES LLC

 

 

By:      _/s/ Trent McNair_____________

Name:  Trent McNair

Title:  CFO

 

 

[Signature Page to Amendment No. 1 to Capital on DemandTM Sales Agreement]

 

ACCEPTED as of the date

first-above written:

 

ARCA BIOPHARMA, INC.

 

 

By:    _/s/ Brian Selby_____________

Name:  Brian Selby

Title:  Vice President, Finance

 

 

[Signature Page to Amendment No. 1 to Capital on DemandTM Sales Agreement]Exhibit
4.1

 

EXHIBIT B

 

THIS
NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON

CONVERSION
OF THE NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. NEITHER
THE NOTE NOR SUCH SHARES OF COMMON STOCK MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, SATISFACTORY
TO THE COMPANY, THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

 

INFINITY
ENERGY RESOURCES, INC.

 

3%
CONVERTIBLE PROMISSORY NOTE

 

$[•]

 

FOR
VALUE RECEIVED, Infinity Energy Resources, Inc., a Delaware corporation (the “Company”), promises to pay to [•],
whose address is ________________________________________________ or registered assigns (the “Holder”), the sum of
________ ($[•]) in lawful money of the United States of America on or before the Maturity Date as defined herein, with
all Interest thereon as defined and specified herein.

 

This
Note is issued in connection with a Debt Settlement Agreement between Holder and the Company.

 

1.
Interest and Fees. This Note shall bear
interest (“Interest”) equal to three percent (3%) per annum. Interest will be calculated on a three hundred sixty-five
(365) day year. The Company shall pay the Interest on or before the Maturity Date, as defined below. In no event shall the rate
of Interest payable on this Note exceed the maximum rate of interest permitted to be charged under applicable law.

 

2.
Payments. All payments under this
Note shall be made by the Company hereunder, whether on account of principal or Interest, without set-off or counterclaim and
shall first be credited against costs and expenses provided for in this Note, second to the payment of any penalties, third to
the payment of accrued and unpaid Interest, if any, and the remainder shall be credited against principal. All payments due hereunder
shall be payable in legal tender of the United States of America, and in same day funds delivered to Holder by cashier’s
check, certified check, or bank wire transfer to the mailing address provided below, or at such other place as Holder shall designate
in writing for such purpose from time to time made prior to noon, Kansas City, Kansas time, on the Maturity Date. If a payment
under this Note otherwise would become due and payable on a Saturday, Sunday or legal holiday (any other day being a “Business
Day”), the due date of the payment shall be extended to the next succeeding Business Day, and Interest, if any, shall be
payable thereon during such extension.

 

    	 

    	 

    

 

3.
Maturity Date. This Note shall be due
and payable in full, including all accrued Interest thereon, on March 30, 2026 (“Maturity Date”), subject to
Paragraph 4, “Pre-Payments.”

 

4.
Pre-Payments. At any time prior to the
Maturity Date, the Company shall have the right to prepay this Note, in whole or in part without penalty, on ten (10) days’
advance notice to Holder. On such prepayment date, the Company will pay in respect of this Note cash equal to the face amount
plus accrued Interest on the Note (or portion thereof) being prepaid.

 

5.
Conversion of Note

 

5.1
Conversion of Note/Conversion Price. This Note is convertible as to principal and any accrued Interest, at the option of
Holder, into shares of the company’s Common Stock (the “Common Stock”) at any time after the issue Date and
prior to the close of business on the Business Day preceding the Maturity Date at the rate of Fifty Cents ($0.50) per share
(the “Conversion Price”), subject to adjustment as hereinafter provided. The Company will provide written notice of
its intent to prepay the Note in whole or in part prior to the Maturity Date. In such case, Holder will have five (5) Business
Days following the date on which Holder receives such written notice to determine whether Holder will convert all or part of the
Note into Common Stock. No fractional shares will be issued. In lieu thereof, the Company will pay cash for fractional share amounts
equal to the fair market value of the Common Stock as quoted as the closing bid price of the Common Stock on the date of conversation.

 

5.2
Adjustment to Conversion Price.

 

5.2.1
The Conversion Price shall be adjusted if the Company shall at any time (i) pay a stock dividend on the Common Stock; (ii) subdivide
its outstanding Common Stock into a greater number of shares; (iii) combine its outstanding Common Stock into a smaller number
of shares; (iv) issue by reclassification of its Common Stock any other special capital stock of the Company; or (v) distribute
to all holders of Common Stock evidences of indebtedness or assets (excluding cash dividends) or rights or warrants to subscribe
for Common Stock (other than those mentioned above). No adjustment of the Conversion Price will be required until cumulative adjustments
amount to One Dollar ($1.00) per Note or more. Upon the occurrence of an event requiring adjustment of the Conversion Price, and
thereafter, Holder, upon surrender of this Note for conversion, shall be entitled to receive the number of shares of Common Stock
or other capital stock of the Company that Holder would have owned or have been entitled to receive after the happening of any
of the events described above had this Note been converted immediately prior to the happening of such event.

 

5.3
Adjustment Based Upon Merger or Consolidation. In case of any consolidation or merger to which the Company is a party (other
than a merger in which the Company is the surviving entity and which does not result in any reclassification of or change in the
outstanding Common Stock of the Company), or in case of any sale or conveyance to another person, firm, or corporation of the
property of the Company as an entirety or substantially as an entirety, Holder shall have the right to convert this Note into
the kind and amount of securities and property (including cash) receivable upon such consolidation, merger, sale or conveyance
by Holder of the number of shares of Common Stock into which such Note might have been converted immediately prior thereto.

 

    	-2-

    	 

    

 

5.4
Exercise of Conversion Privilege.

 

5.4.1
The Conversion Privilege provided for in this Note shall be exercisable by Holder by written notice to the Company or its successor
and the surrender of this Note in exchange for the number of shares (or other securities and property, including cash, in the
event of an adjustment of the Conversion Price) into which this Note is convertible based upon the Conversion Price.

 

5.4.2
Holder’s conversion right set forth in this Paragraph 5.4 may be exercised at any time and from time to time but prior to
payment in full of the principal amount of the accrued interest on this Note. Conversion rights will expire at the close of business
on the Business Day prior to the Maturity Date or redemption date of this Note.

 

5.4.3
Holder may exercise the right to convert all or any portion of the principal amount and accrued Interest on this Note by delivery
of (i) this Note and (ii) a completed Conversion Notice in the form attached as Exhibit A on a Business Day to the Company’s
principal executive offices. Such conversion shall be deemed to have been made immediately prior to the close of business on the
Business Day of such delivery a conversion notice (the “Conversion Date”), and Holder shall be treated for all purposes
as the record holder of the shares of Common Stock into which this Note is converted as of such date.

 

5.4.4
Upon conversion of the entire principal amount and accrued Interest of this Note and the delivery of shares of Common Stock upon
conversion of this Note, except as otherwise provided in Paragraph 21, “Representations and Warranties to Survive Closing,”
the Company shall be forever released from all of its obligations and liabilities under this Note.

 

5.5
Corporate Status of Common Stock to be Issued. All Common Stock (or other securities in the event of an adjustment of the
Conversion Price) which may be issued upon the conversion of this Note shall, upon issuance, be fully paid and nonassessable.

 

5.6
Issuance of Certificates. Upon the conversion of this Note, the Company shall, within five (5) Business Days of such conversion,
issue to Holder a certificate or certificates representing the number of shares of the Common Stock (or other securities in the
event of an adjustment of the Conversion Price) to which the conversion relates.

 

6.
Unsecured Indebtedness. This Note is unsecured.

 

7.
Status of Holder of Note. This Note shall
not entitle Holder to any voting rights or other rights as a shareholder of the Company or to any rights whatsoever except the
rights herein expressed, and no dividends shall be payable or accrue in respect of this Note or the securities issuable upon the
conversion hereof unless and until this Note shall be converted. Upon the conversion of this Note, Holder shall, to the extent
permitted by law, be deemed to be the holder of record of the shares of Common Stock issuable upon such conversion, notwithstanding
that the stock transfer books of the Company shall then be closed or that the certificates representing such shares of Common
Stock shall not then be actually delivered.

 

    	-3-

    	 

    

 

8.
Reserve of Shares of Common Stock. The
Company shall reserve out of its authorized shares of Common Stock, and other securities in the event of an adjustment of the
Conversion Price, a number of shares sufficient to enable it to comply with its obligation to issue shares of Common Stock, and
other securities in the event of an adjustment of the Conversion Price, upon the conversion of this Note.

 

9.
Transfer Restrictions; Exemption from Registration.

 

9.1
Holder is an Accredited Investor, as such term is defined Rule 501(a) of Regulation D under the Securities Act of 1933, as amended
(the “Act”). Holder has conducted its own due diligence regarding this investment and the Company. Holder understands
and can bear the risks associated with this investment, including the loss of its entire investment in the Note and the underlying
Common Stock. Holder agrees that (i) this Note and the shares of Common Stock issuable in payment of Interest and upon conversion
have not been registered under the Act and may not be sold or transferred without registration under the Act or unless an exemption
from such registration is available; (ii) Holder has acquired this Note and will acquire the Common Stock for its own account
for investment purposes only and not with a view toward resale or distribution; and (iii) if a registration statement that includes
the Common Stock is not effective at the time Common Stock is issued to Holder upon conversion under this Note, and the Common
Stock is not exempt from registration under Rule 144, then the Common Stock shall be inscribed with the following legend:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

9.2
If an opinion of counsel of Holder provides that registration is not required for the proposed conversion or transfer of this
Note or the proposed transfer of the shares of Common Stock issuable upon conversion and that the proposed conversion or transfer
in the absence of registration would require the Company to take any action including executing and filing forms or other documents
with the Securities and Exchange Commission (the “SEC”) or any state securities agency, or delivering to Holder any
form or document in order to establish the right of Holder to effectuate the proposed conversion or transfer, the Company agrees
promptly, at its expense, to take any such action; and provided, further, that the Company will reimburse Holder in full for any
expenses (including but not limited to the fees and disbursements of such counsel, but excluding brokers’ commissions) incurred
by Holder or owner of shares of Common Stock on his, her or its behalf in connection with such conversion or transfer of the Note
or transfer of the shares of Common Stock.

 

    	-4-

    	 

    

 

10.
Rule 144. If the Company has registered
a class securities under Section 12 of the Exchange Act and has filed reports under Section 13 or 15(d) of the Exchange Act. At
the request of Holder, when Holder proposes to sell securities in compliance with Rule 144 of the SEC, the Company will (i) forthwith
furnish to Holder a written statement of compliance with the filing requirements of the SEC as set forth in Rule 144, as such
rules may be amended from time to time and (ii) make available to the public and Holder such information and take such other action
as is requested by Holder to enable Holder to make sales pursuant to Rule 144.

 

11.
Registration Rights. If, at any time during
the five (5) year period commencing on the Issue Date of this Warrant, the Company proposes to file a registration statement under
the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable
for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company for their account,
other than a registration statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an
exchange offer or offering of securities solely to the Company’s existing shareholders, (iii) for an offering of debt that
is convertible into equity securities of the Company or (iv) for a dividend reinvestment plan, then the Company shall (x) give
written notice of such proposed filing to the holder(s) of this Warrant and any Warrant Shares as soon as practicable but in no
event less than ten (10) days before the anticipated filing date, which notice shall describe the amount and type of securities
to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing underwriter or
underwriters, if any, of the offering, and (y) offer to the holder(s) of this Warrant and any Warrant Shares in such notice the
opportunity to register the sale of such number of Warrant Shares (the “Registrable Securities”) as such holders
may request in writing within five (5) days following receipt of such notice (a “Piggy-Back Registration”).
The Company shall cause such Registrable Securities to be included in such registration statement and shall cause the managing
underwriter or underwriters of a proposed underwritten offering to permit the Registrable Securities requested to be included
in a Piggy-Back Registration on the same terms and conditions as any similar securities of the Company and to permit the sale
or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All holders
of Registrable Securities proposing to distribute their securities through a Piggy-Back Registration that involves an underwriter
or underwriters shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for
such Piggy-Back Registration. If the managing underwriter or underwriters for a Piggy-Back Registration that is to be an underwritten
offering advises the Company in writing that the dollar amount or number of shares of Registrable Securities which the holder(s)
thereof desire to sell, taken together with all other securities which the Company desires to sell and all other securities, if
any, as to which registration has been requested pursuant to written contractual piggy-back registration rights which the holders
thereof desire to sell, exceeds the maximum dollar amount or maximum number of shares that can be sold in such offering without
adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering,
then the Company may remove from such registration statement any Registrable Securities that the managing underwriters shall reasonably
request. Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities
in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness
of the registration statement. The Company (whether on its own determination or as the result of a withdrawal by persons making
a demand pursuant to written contractual obligations) may withdraw a registration statement at any time prior to the effectiveness
of the registration statement. The Company shall bear all fees and expenses attendant to registering the Registrable Securities,
including the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable
Securities, but the Holders shall pay any and all underwriting commissions related to the Registrable Securities.

 

    	-5-

    	 

    

 

12.
Representations and Warranties of the Company.
The Company represents and warrants as follows:

 

12.1
The Company is duly existing and in good standing as a corporation in its jurisdiction of formation and is qualified and licensed
to do business and is in good standing in any other jurisdiction in which the conduct of its business or ownership of property
requires that it to be qualified, except where the failure to do so could not reasonably be expected to have a material adverse
effect on the Company’s business.

 

12.2
The execution, delivery and performance by the Company of this Note and the Warrant has been duly authorized, and do not (i) conflict
with any of the Company’s organizational documents; (ii) contravene, conflict with, constitute a default under or violate
any material law applicable to the Company; (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction,
decree, determination or award of any governmental authority by which the Company or any of its Subsidiaries or any of their property
or assets may be bound or affected; (iv) require any action by, filing, registration, or qualification with, or governmental approval
from any governmental authority (except such governmental approvals which have already been obtained and are in full force and
effect); or (v) constitute an event of default under any material agreement by which the Company is bound.

 

12.3
There are no material actions or proceedings pending or threatened by or against the Company, except as set forth in the Company’s
annual report on Form 10-K for the year ended December 31, 2019, its report on Form 10-Q for the quarter ended September 30, 2021
and any Form 8-K filed with the Securities and Exchange Commission (the “SEC Reports”).

 

12.4
All financial statements of the Company contained in its SEC Reports fairly present in all material respects the Company’s
financial position and the Company’s results of operations as of the dates thereof, and for the periods indicated therein,
subject in the case of the unaudited financial statements to normal year-end audit adjustments.

 

12.5
The Company’s SEC Reports, as of their respective dates or, if amended, as of the date of the last such amendment, did not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

13.
Covenants of the Company. The Company
will use the proceeds it receives from this Note for general working capital and such other purposes as the Company may deem appropriate.

 

14.
Default. The Company shall perform its
obligations and covenants hereunder and in each and every other agreement between the Company and Holder pertaining to the Indebtedness
evidenced hereby. The following provisions shall apply upon failure of the Company so to perform.

 

    	-6-

    	 

    

 

14.1
Event of Default. Any of the following events shall constitute an “Event of Default” hereunder:

 

14.1.1
Failure by the Company to pay principal of the Note when due and payable on the Maturity Date, provided that if the Note is not
otherwise in default, the Company shall have a fifteen (15) day extension of the Maturity Date (the “Extension Period”)
to pay the Note in full. If not paid within such Extension Period, such failure to pay will be an Event of Default and the date
of the Event of Default under this Paragraph 13.1.1 shall be as of the Maturity Date;

 

14.1.2
Failure of the Company to pay Interest when due hereunder, which failure continues for a period of fifteen (15) days after the
due date of the amount involved; or

 

14.1.3
Except for Events of Default set forth in Paragraphs 13.1.1 and 13.1.2, failure of the Company to perform any of the other covenants,
conditions, provisions or agreements contained herein, which failure continues for a period of fifteen (15) days after notice
of default has been given to the Company by Holder; provided, however, that if the nature of the Company’s obligation is
such that more than fifteen (15) days are required for performance, then an Event of Default shall not occur if the Company commences
performance within such fifteen (15) day period and thereafter diligently prosecutes the same to completion; or

 

14.1.4
The entry of an order for relief under Federal Bankruptcy Code as to the Company or entry of any order appointing a receiver or
trustee for the Company or approving a petition in reorganization or other similar relief under bankruptcy or similar laws in
the United States of America or any other competent jurisdiction, and if such order, if involuntary, is not satisfied or withdrawn
within sixty (60) days after entry thereof; or the filing of a petition by the Company seeking any of the foregoing, or consenting
thereto; or the filing of a petition to take advantage of any debtor’s act; or making a general assignment for the benefit
of creditors; or admitting in writing inability to pay debts as they mature.

 

14.2
Acceleration. Upon any Event of Default (in addition to any other rights or remedies provided for under this Note), at
the option of Holder, all sums evidenced hereby, including all principal, Interest, fees and all other amounts due hereunder,
shall become immediately due and payable. If an Event of Default in the payment of principal or Interest should occur and be continuing
with respect to the Note, Holder may declare the principal, Interest, fees and all other amounts due hereunder to be immediately
due and payable.

 

14.3
Notice by Company. Upon the happening of any Event of Default specified in this paragraph that is not cured within the
respective periods prescribed above, the Company will give prompt written notice thereof to Holder of this Note.

 

14.4
No Waiver. Failure of Holder to exercise any option hereunder shall not constitute a waiver of the right to exercise the
same in the event of any subsequent Event of Default, or in the event of continuance of any existing Event of Default after demand
or performance thereof.

 

    	-7-

    	 

    

 

14.5
Default Interest and Fees. Default Interest will accrue on an unpaid principal or Interest due hereunder at the rate of
sixteen percent (16%) per annum upon the occurrence of any Event of Default until the Event of Default is cured. Default Interest
shall be payable monthly basis commencing thirty (30) days after the Default Interest has begun accruing. Default Interest will
be computed on a three hundred sixty-five (365) day year.

 

15.
Assignment, Transfer or Loss of the Note.

 

15.1
Holder may not assign, transfer, hypothecate or sell all or any part of this Note or in any way alienate or encumber the Note
without the express written consent of the Company, the granting or denial of which shall be within the absolute discretion of
the Company; provided, however, the Holder may assign all or any portion of this Note to any of its Affiliates.
Any attempt to effect such transfer without the consent of the Company shall be null and void. The Company has not registered
this Note under the Act or the applicable securities laws of any state in reliance on exemptions from registration. Such exemptions
depend upon the investment intent of Holder at the time he acquires his Note. Holder is acquiring this Note for his own account
for investment purposes only and not with a view toward distribution or resale of such Note within the meaning of the Act and
the applicable securities laws of any state. The Company shall be under no duty to register the Note or to comply with an exemption
in connection with the sale, transfer or other disposition under the applicable laws and regulations of the Act or the applicable
securities laws of any state. The Company may require Holder to provide, at his expense, an opinion of counsel satisfactory to
the Company to the effect that any proposed transfer or other assignment of the Note will not result in a violation of the applicable
federal or state securities laws or any other applicable federal or state laws or regulations.

 

15.2
Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Note and,
in the case of any such loss, theft or destruction of any Note, upon delivery of an indemnity bond in such reasonable amount as
the Company may determine (or, in the case of any Note held by the original Noteholder, of an indemnity agreement reasonably satisfactory
to the Company), or, in the case of any such mutilation, upon the surrender of such Note to the Company at is principal office
for cancellation, the Company at its expense will execute and deliver, in lieu thereof, a new Note of like tenor, dated the date
to which interest hereunder shall have been paid on such lost, stolen, destroyed or mutilated Note.

 

15.3
Subject to Subparagraph 10.1 above, Holder may, at his option, either in person or by duly authorized attorney, surrender this
Note for registration of transfer at the principal office of the Company and, upon payment of any expenses associated with the
transfer, receive in exchange therefor a Note or Notes, dated as of the date to which interest has been paid on the Note so surrendered,
each in the principal amount of $1,000 or any multiple thereof, for the same aggregate unpaid principal amount as the Note so
surrendered and registered as payable to such person or persons as may be designated by Holder. Every Note surrendered for registration
of transfer shall be duly endorsed or shall be accompanied by a written instrument of transfer duly executed by Holder or his
attorney duly authorized in writing. Every Note, so made and delivered by the Company in exchange for any Note surrendered, shall
in all other respects be in the same form and have the same terms as the Note surrendered. No transfer of any Note shall be valid
unless made in such manner at the principal office of the Company.

 

    	-8-

    	 

    

 

15.4
The Company may treat the person in whose name this Note is registered as the owner and Holder of this Note for the purpose of
receiving payment of all principal of and all Interest on this Note, and for all other purposes whatsoever, whether or not such
Note shall be overdue and, except for transfers effected in accordance with this subparagraph, the Company shall not be affected
by notice to the contrary.

 

16.
Notices. All notices provided for herein
shall be validly given if in writing and delivered personally or sent by certified mail, postage prepaid, or sent via an express
delivery service, such as Federal Express or United Parcel Service, to the office of the Company or such other address as the
Company may from time to time designate in writing sent by certified mail, postage prepaid, to Holder at his address set forth
below or such other address as Holder may from time to time designate in writing to the Company by certified mail, postage prepaid
or otherwise as designated in writing by Holder.

 

17.
Usury. All Interest, Default Interest,
fees, charges, goods, things in action or any other sums or things of value, or other contractual obligations (collectively, the
“Additional Sums”) paid by the Company hereunder, whether pursuant to this Note or otherwise, with respect to the
Indebtedness evidenced hereby, or any other document or instrument in any way pertaining to the Indebtedness, which, under the
laws of the State of Delaware may be deemed to be Interest with respect to such loan or Indebtedness, shall, for the purpose of
any laws of the State of Delaware, which may limit the maximum amount of Interest to be charged with respect to such loan or Indebtedness,
be payable by the Company as, and shall be deemed to be, Interest and for such purposes only, the agreed upon and contracted rate
of Interest shall be deemed to be increased by the Additional Sums. Notwithstanding any provision of this Note to the contrary,
the total liability for payments in the nature of Interest under this Note shall not exceed the limits imposed by applicable law.
The Company shall not assert a claim, and shall actively resist any attempts to compel it to assert a claim, respecting a benefit
under any present or future usury laws against any Holder of this Note.

 

18.
Binding Effect. This Note shall be binding
upon the parties hereto and their respective heirs, executors, administrators, representatives, successors and permitted assigns.

 

19.
Collection Fees. The Company shall pay
all costs of collection, including reasonable attorneys’ fees and all costs of suit and preparation for such suit (and whether
at trial or appellate level), in the event the unpaid principal amount of this Note, or any payment of Interest is not paid when
due, or in the event Holder is made party to any litigation because of the existence of the Indebtedness evidenced by this Note,
or if at any time Holder should incur any attorneys’ fees in any proceeding under the Federal Bankruptcy Code (or other
similar laws for the protection of debtors generally) in order to collect any Indebtedness hereunder or to preserve, protect or
realize upon any security for, or guarantee or surety of, such Indebtedness whether suit be brought or not, and whether through
courts of original jurisdiction, as well as in courts of appellate jurisdiction, or through a bankruptcy court or other legal
proceedings.

 

20.
Construction. This Note shall be governed
as to its validity, interpretation, construction, effect and in all other respects by and in accordance with the laws and interpretations
thereof of the State of Delaware. Unless the context otherwise requires, the use of terms in singular and masculine form shall
include in all instances singular and plural number and masculine, feminine and neuter gender.

 

    	-9-

    	 

    

 

21.
Severability. In the event any one or
more of the provisions contained in this Note or any future amendment hereto shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this
Note or such other agreement, and in lieu of each such invalid, illegal or unenforceable provision there shall be added automatically
as a part of this Note a provision as similar in terms to such invalid, illegal or unenforceable provision as may be possible
and be valid, legal and enforceable.

 

22.
Entire Agreement. This Note represents
the entire agreement and understanding between the parties concerning the subject matter hereof and supersede all prior and contemporaneous
agreements, understandings, representations and warranties with respect thereto.

 

23.
Governing Law; Jurisdiction; Jury Trial. All
questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by the internal
laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of Delaware or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in Kansas City, Kansas for the adjudication of any dispute hereunder or in connection herewith or therewith, or with any transaction
contemplated hereby or discussed herein, or in any manner arising in connection with or related to the transactions contemplated
hereby or involving the parties hereto whether at law or equity and under any contract, tort or any other claim whatsoever and
hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing or faxing a copy thereof to such party at the address
for such notices as listed in this Note and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

24.
Representations and Warranties to Survive
Closing. All representations, warranties and covenants contained herein shall survive the execution and delivery of this Note
and the issuance of any Conversion Shares upon the conversion hereof.

 

25.
Headings. The headings used in this Note
are used for convenience only and are not to be considered in construing or interpreting this Note.

 

    	-10-

    	 

    

 

26.
Definitions.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, “control” when used with respect to
any specified Person means the power to direct the management and policies of such Person directly or indirectly, whether through
the ownership of Voting Stock, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Board
of Directors” means, with respect to any Person, the Board of Directors of such Person or any committee of the Board
of Directors of such Person duly authorized to act on behalf of the Board of Directors of such Person.

 

“Capital
Stock” means, with respect to any Person, any and all shares, interests, equity participations or other equivalents
(however designated) of corporate stock or partnership interests and any and all warrants, options and rights with respect thereto
(whether or not currently exercisable), including each class of common stock and preferred stock of such Person.

 

“GAAP”
means generally accepted accounting principles as in effect in the United States of America as of the Issue Date.

 

“Holder”
means a Person in whose name a Note is registered on the Company’s books.

 

“Indebtedness”
means, without duplication, with respect to any Person, (a) all obligations of such Person (i) in respect of borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such person or only to a portion thereof); (ii) evidenced
by bonds, notes, debentures or similar instruments; (iii) representing the balance deferred and unpaid of the purchase price of
any property or services (other than accounts payable or other obligations arising in the ordinary course of business); (iv) evidenced
by bankers’ acceptances or similar instruments issued or accepted by banks, (v) for the payment of money relating to a capitalized
lease obligation under GAAP; or (vi) evidenced by a letter of credit or a reimbursement obligation of such Person with respect
to any letter of credit; (b) all net obligations of such Person under interest rate swap obligations and foreign currency hedges;
(c) all liabilities of others of the kind described in the preceding clauses (a) or (b) that such Person has guaranteed or that
are otherwise its legal liability; (d) Indebtedness (as otherwise defined in this definition) of another Person secured by lien
on any asset of such Person, whether or not such Indebtedness is assumed by such Person, the amount of such obligations being
deemed to be the lesser of (1) the full amount of such obligations so secured, and (2) the fair market value of such asset, as
determined in good faith by the Board of Directors of such Person, which determination shall be evidenced by a board resolution;
and (e) any and all deferrals, renewals, extensions, refinancings and refundings (whether direct or indirect) of, or amendments,
modifications or supplements to, any liability of the kind described in any of the preceding clauses (a), (b), (c), (d) or this
clause (e), whether or not between or among the same parties.

 

“Insolvency
Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors,
or proceedings seeking reorganization, arrangement, or other relief.

 

    	-11-

    	 

    

 

“Issue
Date” means the date on which the Note is originally issued.

 

“Maturity
Date” means March 30, 2026, or a later date if the original Maturity Date is extended by the Company under the
terms of this Note.

 

“Person”
means any individual, corporation, partnership, joint venture, trust, estate, unincorporated organization or government or
any agency or political subdivision thereof.

 

A
“subsidiary” of any Person means (i) a corporation a majority of whose Voting Stock is at the time, directly
or indirectly, owned by such Person, by one or more subsidiaries of such Person or by such Person and one or more subsidiaries
of such Person, (ii) a partnership in which such Person or a subsidiary of such Person is, at the date of determination, a general
or limited partner of such partnership, but only if such Person or its subsidiary is entitled to receive more than fifty percent
(50%) of the assets of such partnership upon its dissolution, or (iii) any other Person (other than a corporation or partnership)
in which such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest
or (y) the power to elect or direct the election of a majority of directors or other governing body of such Person.

 

“Subsidiary”
means any subsidiary of the Company.

 

“Voting
Stock” means, with respect to any Person, securities of any class or classes of Capital Stock in such Person entitling
the holders thereof, whether at all times or only so long as no senior class of stock has voting power by reason of any contingency
to vote in the election of members of the Board of Directors or other governing body of such Person.

 

27.
Miscellaneous. Except as otherwise provided
herein, the Company waives demand, diligence, presentment for payment and protest, notice of extension, dishonor, maturity and
protest. Time is of the essence with respect to the performance of each and every covenant, condition, term and provision hereof.
This Note may be executed by facsimile signature, which signature shall be deemed to be binding upon the Company.

 

    	-12-

    	 

    

 

IN
WITNESS WHEREOF, this Note has been issued as of the 31 st day of March, 2021.

 

	 	INFINITY
    ENERGY RESOURCES, INC.
	 	 	 
	 	By
    	           
	 	 	 
	 	Its	

 

Mailing
Address of Holder:

______________________

______________________

 

Mailing
Address of Company:

______________________

______________________

 

    	-13-

    	 

    

 

EXHIBIT
A

 

CONVERSION
NOTICE

 

(To
be signed only upon conversion of this Note)

 

TO:
INFINITY ENERGY RESOURCES, INC.

 

The
undersigned, the registered holder of the Convertible Note (the “Note”) of INFINITY ENERGY RESOURCES, INC. (the
“Company”), hereby surrenders the Note for conversion into shares of Common Stock of the Company (the “Common
Stock”) to the extent of $_______ unpaid principal amount of the Note and $_______ unpaid accrued Interest due under the
Note, all in accordance with the provisions of such Note. The undersigned requests (i) that a certificate representing shares
of Common Stock, bearing the appropriate legends, be issued to the undersigned, and (ii) if the unpaid principal amount so converted
is less than the entire unpaid principal amount of the Note, that a new substitute note representing the portion of said unpaid
principal amount that is not so converted be issued in accordance with the provisions of the Note.

 

________________________________________

(Signature
and name of the registered holder)

 

________________________________________

Print
Name

 

Dated:
___________________________________

 

    	-14-

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