Document:

EX-10.2

 Exhibit 10.2 

LOAN AGREEMENT 
 This LOAN
AGREEMENT (this “Agreement”) is dated as of January 1, 2023 (the “Effective Date”), between Peoples Gas System, Inc., a Florida corporation (the “Borrower”), and Tampa
Electric Company, a Florida corporation (the “Lender”). 
 WHEREAS, effective as of the Effective Date, the Lender
has transferred to the Borrower the assets and liabilities of its Peoples Gas Division pursuant to a Contribution Agreement dated as of the Effective Date (the “Contribution Agreement”) between the Borrower and the Lender
pursuant to which the Lender transferred the assets and liabilities of its Peoples Gas Division to the Borrower, and the Borrower will continue the operations of the former Peoples Gas Division as a separate company; immediately thereafter the
Lender will transfer the shares of the Borrower to TECO Energy, Inc., a Florida corporation (the “Parent”), and the Parent then intends to contribute the shares of the Borrower to the Parent’s wholly-owned subsidiary
TECO Gas Operations, Inc., a Florida corporation; and 
 WHEREAS, the Lender has, prior to the date hereof, incurred indebtedness for
borrowed money for the benefit of its Peoples Gas Division (as herein defined, the “Existing Indebtedness”); and 

WHEREAS, in connection with the Contribution Agreement, the Borrower has entered into a term loan with Lender in the principal amount of
$670,000,000 and an initial revolving loan in the principal amount of $66,000,000, collectively representing the principal amount of the Existing Indebtedness on the Effective Date; and 

WHEREAS, the Borrower has requested the Lender to make additional loans to the Borrower to support its operations until the Borrower can
arrange its own financing; 
 WHEREAS, the Lender is willing to incur additional indebtedness for borrowed money in order to make the
additional loans to the Borrower, provided, that the Borrower agrees to reimburse the Lender for its costs to fund the loans on the terms set forth herein; and 

WHEREAS, this Agreement is being entered into pursuant to the authority granted by the Florida Public Service Commission to the parties in
Order No. PSC-2022-0363-FOF-PU, issued on October 25, 2022 in Docket No.
20220146-PU; 
 NOW, THEREFORE, in consideration of the foregoing and the agreements contained
herein, the parties hereby agree as follows: 
 1. Definitions. As used in this Agreement, the following terms have the meanings set
forth below: 
 “Additional Revolving Loans” has the meaning set forth in Section 2(b) herein. 

“Availability Period” means the period beginning on the Effective Date and ending on the Maturity Date. 

 “Banking Day” means any day, other than a Saturday, Sunday or other
day on which banks are or are authorized to be closed in New York, New York, and on which the Lender may borrow under the Credit Agreement and issue Commercial Paper. 

“Bankruptcy Law” means 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. 
 “Borrower Account” means the
deposit account or accounts of the Borrower from which the Borrower has authorized the Lender to make payments in accordance with Section 4(d) hereof. 

“Commercial Paper” means the commercial paper issued from time to time by the Lender under its commercial paper
program, as the same may be amended, supplemented or replaced from time to time. 
 “Default Rate” means,
(a) with respect to any Obligation for which the rate is specified, a rate per annum equal to two percent (2%) in excess of the rate otherwise applicable thereto, and (b) with respect to an Obligation for which a rate is not specified or
available, a rate per annum equal to the prime rate as published from time to time in The Wall Street Journal, or if such rate is not published or available, such similar rate as determined by the Lender from time to time. 

“Existing Indebtedness” means (i) the Existing Term Indebtedness and (ii) the Borrower’s allocable
share, as of the Effective Date, of the principal amount of the indebtedness outstanding under the Revolving Credit Agreement or Commercial Paper, as applicable, as set forth on Schedule 1 hereto. 

“Existing Term Indebtedness” means Borrower’s allocable share, as of the Effective Date, of the principal amount
of (i) the Long Term Notes, and (ii) the Term Loans, in each case as set forth on Schedule 1 hereto. 

“Event of Default” has the meaning specified in Section 6(a) hereof. 

“Indenture” means the Indenture dated as of July 1, 1998, as amended by the Third Supplemental Indenture dated as
of June 15, 2001, and the Tenth Supplemental Indenture dated as of September 19, 2012, between the Lender and The Bank of New York Mellon, as trustee, as the same has been further supplemented and as may be supplemented and amended from
time to time. 
 “Initial Revolving Loan” means the loan entered into hereunder with a principal amount equal to the
Borrower’s allocable share, as of the Effective Date, of the principal amount of the indebtedness outstanding under the Revolving Credit Agreement or Commercial Paper, as applicable, as set forth on Schedule 1 hereto.

 “Initial Term Loan” means the installment term loan entered into hereunder with a principal amount equal to the
principal amount of the Existing Term Indebtedness 
 “Loans” mean, collectively, the initial Revolving Loan and the
Initial Term Loan entered into by the Borrower hereunder as of the Effective Date and the Additional Revolving Loans made to the Borrower by the Lender hereunder. 

  
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 “Long Term Notes” means the Borrower’s share of the notes
issued by the Lender for the benefit of the Lender’s Peoples Gas Division pursuant to the Indenture and the Supplemental Indentures identified on Schedule 1 hereto. 

“Maturity Date” means December 29, 2023. 

“Obligations” means, collectively, the Loans and all other obligations of the Borrower to the Lender arising under
this Agreement, in each case whether fixed, contingent, now existing or hereafter arising. 
 “Other Comprehensive
Income” means the Borrower’s portion of the unamortized gains or losses on the termination of hedges entered into upon the issuance of Long Term Notes. 

“Revolving Commitment” means, initially, the commitment of the Lender up to the amount of $300,000,000 to make
Revolving Loans to the Borrower, as such amount may be adjusted from time to time by agreement of the parties. 
 “Revolving
Credit Agreement” means the Seventh Amended and Restated Credit Agreement dated as of December 17, 2021, among the Lender, as borrower, the lenders party thereto, each LC Issuing Bank party hereto and Wells Fargo Bank, National
Association, as Administrative Agent, as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time. 

“Revolving Loans” means the Initial Revolving Loan incurred by the Borrower on the Effective Date pursuant to
Section 2(a) and any Additional Revolving Loans made to the Borrower by the Lender during the Availability Period pursuant to Section 2(b) hereunder. 

“Short Term Debt Facility Fees” means the unamortized portion of the Borrower’s share of the fees and costs paid
by the Lender for the establishment of the Revolving Credit Agreement. 
 “Supplemental Indenture” refers to each of
the Supplemental Indentures between the Lender and The Bank of New York Mellon, as trustee, identified in Schedule 1 hereto relating to the Long Term Notes. 

“Term Loans” means the Borrower’s share of the term loans of the Lender outstanding under the Term Loan Agreement
as of the Effective Date. 
 “Term Loan Agreement” means the Amended and Restated Credit Agreement dated as of
December 14, 2022, among the Lender as borrower, the lenders party thereto and Wells Fargo Bank, National Association as Administrative Agent, as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time.

 “Unamortized Debt Discount” means the unamortized portion of the Borrower’s share of initial issuance
discount on the Long Term Notes. 
 “Unamortized Debt Issuance Costs” means the unamortized portion of the
Borrower’s share of (i) the costs of issuance of the Long Term Notes and (ii) the fees and costs paid by the Lender for the establishment of the Term Loan Agreement. 

  
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 2. Revolving Loans. 

(a) Initial Revolving Loan. On or prior to the Maturity Date, the Borrower agrees to pay the Lender the principal amount of the
Initial Revolving Loan in an amount equal to $66,000,000, which is equal to Borrower’s share of the loans borrowed by the Lender under the Revolving Credit Agreement or debt incurred through the issuance of Commercial Paper as set forth on
Schedule 1 hereto. The Borrower agrees to reimburse the Lender for the Borrower’s proportionate amount of all interest, prepayment premiums and costs incurred by the Lender to fund the Initial Revolving Loan, when and as such amounts are
payable by the Lender in accordance with the Revolving Credit Agreement or Commercial Paper, as applicable. 
 (b) Additional
Revolving Loans. In addition to the Initial Revolving Loan, and subject to the terms and conditions set forth herein, the Lender agrees to make additional Revolving Loans (the “Additional Revolving Loans”) to the
Borrower upon request from the Borrower, from time to time, on any Banking Day during the Availability Period, in an aggregate amount for all Revolving Loans outstanding not to exceed at any time the amount of the Lender’s Revolving Commitment.

 (c) Changes in Revolving Commitment. The Borrower may, from time to time during the Availability Period, upon written
notice to the Lender, permanently reduce a portion of, or cancel in its entirety, the unused portion of the Revolving Commitment. The Borrower may, from time to time during the Availability Period by written request to the Lender, request an
increase in the Revolving Commitment, which the Lender may grant or decline in its sole discretion. 
 (d) Interest and Fees; Cost of
Funding. The interest rate on each Revolving Loan will be equal to the cost of borrowing that the Lender incurs to fund the amount of the Revolving Loan, as calculated by the Lender, and shall include interest at the Default Rate on any
amount not paid when due. The cost of funding the Revolving Loans will be calculated by Lender in accordance with the obligations of the Lender under the Revolving Credit Agreement or the Commercial Paper, as applicable, issued to fund the Revolving
Loans, and shall include a proportionate cost of commitment and other fees incurred by the Lender under the Revolving Credit Agreement and Commercial Paper program, the payment terms of which are hereby incorporated herein, payable when and as such
obligations are payable by the Lender in accordance with the Revolving Credit Agreement or Commercial Paper, as applicable. 
 3. Initial
Term Loan. 
 (a) Initial Term Loan. On or prior to the Maturity Date, the Borrower agrees to pay the Lender the principal
amount of the Initial Term Loan in an amount equal to $670,000,000, with interest thereon as set forth herein. 
 (b) Interest and
Fees. The outstanding principal balance of the Initial Term Loan shall bear interest in an amount equal to the Borrower’s proportionate amount of all interest incurred by Lender with respect to the Existing Term Indebtedness, treating
any prepayments of the Initial Term Loan as a prepayment of the Existing Term Indebtedness, payable when and as interest on such obligations are payable by the Lender in accordance with the Indenture and the related Supplemental Indentures, in the
case of the Long Term Notes, and in accordance with the Term 

  
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Loan Agreement, in the case of the Term Loans. Interest on the Initial Term Loan shall include interest at the Default Rate on any amount not paid when due. In addition, Borrower agrees to
reimburse the Lender for the Borrower’s proportionate amount of all prepayment premiums and costs (excluding Unamortized Debt Issuance Costs) incurred by the Lender with respect to the Borrower’s share of the Long Term Notes and Term
Loans, when and as such obligations are payable by the Lender in accordance with the Indenture and the related Supplemental Indentures with respect to the Long Term Notes, and in accordance with the Term Loan Agreement with respect to the Term
Loans. The payment terms of Existing Term Indebtedness are incorporated herein. 
 4. Payment of Obligations. 

(a) Revolving Loans. The Borrower may prepay any Revolving Loans at any time without penalty, provided, however, if the
Lender incurs any break-funding or other costs for prepayment upon prepayment of any borrowings funding such Revolving Loans, the Borrower shall reimburse the Lender for its share of such costs. Revolving Loans prepaid during the Availability Period
may be reborrowed in accordance with the provisions of Section 2(b) hereof. The Borrower shall repay all Revolving Loans to the Lender in full on the Maturity Date, including all principal, interest, costs and fees (excluding the
Borrower’s allocation of unamortized Short Term Debt Facility Fees, which shall be paid by the Lender to the Borrower) payable on the Maturity Date. 

(b) Initial Term Loan. The Borrower may prepay all or any portion of the Initial Term Loan at any time without penalty,
provided, however, if the Lender incurs any make-whole, break funding or other costs as a result of the prepayment of all or any portion of the Initial Term Loan as a result of the prepayment of any Long Term Notes or Term Loans, the Borrower
shall reimburse the Lender for its share of such costs. Any portion of the Initial Term Loan that is prepaid before the Maturity Date may not be reborrowed. The Borrower shall repay to the Lender all Obligations of the Borrower to the Lender
relating to all of the Initial Term Loan in full on the Maturity Date. Upon each prepayment before the Maturity Date and upon repayment in full on the Maturity Date of the Initial Term Loan, the Borrower shall pay principal, net of the
Borrower’s share of Unamortized Debt Discount on the Long Term Notes existing at the time of payment, interest to the date of payment, costs (excluding Borrower’s allocation of Unamortized Debt Issuance Costs, which shall be paid by the
Lender to the Borrower), the Other Comprehensive Income allocable to the payment, and fees payable on the date of payment. 
 5.
Representations and Warranties. The Borrower hereby represents and warrants to the Lender that (a) its execution, delivery and performance of this Agreement (i) have been duly authorized by all necessary corporate action on the part
of the Borrower, (ii) will not violate any applicable law or regulation or the organizational documents of the Borrower, (iii) will not violate or result in a default under any indenture, agreement or other instrument binding on the
Borrower, and (iv) do not require any consent, waiver, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or any person which has not been made or obtained; and (b) it
has duly executed and delivered this Agreement. 

  
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 6. Events of Default and Remedies. 

(a) Events of Default. The occurrence of any of the following events shall constitute an event of default (“Event of
Default”) hereunder: 
 i. Payments. Borrower shall fail to pay, in accordance with the terms of this
Agreement, any principal, interest, fee, cost, charge or any other sum due under this Agreement on the date such sum is due. 

ii. Bankruptcy; Insolvency. Borrower shall institute a voluntary case seeking liquidation or reorganization under any
Bankruptcy Law, or shall consent to the institution of an involuntary case thereunder against it; or shall apply for, or by its consent or acquiescence there shall be an appointment of, a receiver, liquidator, sequestrator, trustee or other officer
with similar powers for itself or any substantial part of its assets; or shall make a general assignment for the benefit of its creditors; or if an involuntary case shall be commenced seeking liquidation or reorganization of the Borrower under a
Bankruptcy Law and (A) the petition commencing the involuntary case is not timely controverted, (B) the petition commencing the involuntary case is not dismissed within 30 days of its filing, (C) an interim trustee is appointed to
take possession of all or a substantial portion of the property, and/or to operate all or any material part of the business of the Borrower and such appointment is not vacated within 30 days, or (D) an order for relief shall have been issued or
entered therein; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee or other officer having similar powers, over the Borrower or all or a substantial part of its
property shall have been entered; or any other similar relief shall be granted against the Borrower under any applicable federal or state law. 

(b) Remedies. Upon the occurrence and during the continuation of an Event of Default, the Lender may, without further notice of
default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any kind, all such notices and demands other than notices required by this Agreement being waived (to the extent permitted by
applicable law), exercise any or all of the following rights and remedies, in any combination or order that the Lender may elect, in addition to such other rights or remedies as the Lender may have hereunder, or at law or in equity, as follows. 

i. The Lender may refuse and shall not be obligated to make any Additional Revolving Loans, and the Revolving Commitment may be
terminated; provided that in the event of an Event of Default occurring under Section 6(a)(ii), the foregoing shall take effect immediately and without further act of the Lender. 

ii. The Lender may declare and make all sums of accrued and outstanding principal and accrued but unpaid interest remaining
under this Agreement together with all unpaid fees, costs and charges due hereunder, immediately due and payable and require Borrower immediately, without presentment, demand, protest or other notice of any kind, all of which Borrower hereby
expressly waives, to pay the Lender an amount in immediately available funds equal to the aggregate amount of any outstanding Loans and other Obligations; provided that in the event of an Event of Default occurring under
Section 6(a)(ii), all such amounts shall become immediately due and payable without further act of the Lender. 

  
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 7. Miscellaneous. 

(a) Notices. Any communications between the parties hereto or notices provided herein to be given shall be given to the
following addresses: 
  

			
	 If to the Borrower:
	  	 Peoples Gas System, Inc.
 702 North Franklin
Street
 Tampa, FL 33602
 Attention: Corporate Secretary

Telephone No.: (813) 228-1429

Telecopy No.: (813) 228-1328

		
	 If to the Lender:
	  	 Tampa Electric Company
 702 North Franklin
Street
 Tampa, FL 33602
 Attention: Corporate Secretary

Telephone No.: (813) 228-1429

Telecopy No.: (813) 228-1328

 All notices or other communications required or permitted to be given hereunder shall be in writing and shall be considered as
properly given (a) if delivered in person, (b) if sent by overnight delivery service, (c) if mailed by first class United States Mail, postage prepaid, registered or certified with return receipt requested or (d) if sent by
facsimile or e-mail. Either party shall have the right to change its address for notice hereunder to any other location by giving notice to the other party in the manner set forth above. 

(b) Costs, Expenses and Attorneys’ Fees. Borrower will pay to the Lender all of its reasonable costs and expenses in
connection with the enforcement of this Agreement in connection with an Event of Default including in the case of a restructuring or other workout or negotiation of the Loans hereunder in connection with the bankruptcy or insolvency of Borrower or
any amendments to Agreement requested by the Borrower. Borrower shall not be responsible for any counsel fees of the Lender other than as set forth above. 

(c) Governing Law; Successors and Assigns. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED UNDER, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 (d)
Severability. In case any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby. 

  
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 (e) Interpretation. Paragraph headings have been inserted in this Agreement as
a matter of convenience for reference only; such paragraph headings are not a part of this Agreement and shall not be used in the interpretation of any provision of this Agreement. In this Agreement, unless a contrary intention is specifically set
forth, (i) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision and
(ii) reference to any Article or Section means such Article or Section hereof. No provision of this Agreement shall be interpreted or construed against any Party solely because such Party or its legal representative drafted such provision. 

(f) Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which, when executed and
delivered, shall be an original, but all counterparts shall together constitute one instrument. Delivery of an executed counterpart of a signature page of this Agreement by facsimile transmission or electronic transmission (in .pdf format) will be
effective as delivery of a manually executed counterpart hereof. 
 [Signature Page Follows] 

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

			
	BORROWER
	
	PEOPLES GAS SYSTEM, INC.
		
	By:	 	/s/ Helen Wesley
		 	Helen Wesley
		 	President
		
	By:	 	/s/ Rachel Parsons
		 	Rachel Parsons
		 	Vice President of Finance and Planning
	
	LENDER:
	
	TAMPA ELECTRIC COMPANY
		
	By:	 	/s/ Archibald Collins
		 	Archibald Collins
		 	President and Chief Executive Officer
		
	By:	 	/s/ Jeffrey S. Chronister
		 	Jeffrey S. Chronister
		 	Vice President-Finance and Controller

  

  
 [Signature Page to
Loan Agreement]ex_460093.htm

Exhibit 10.1

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT (the “Agreement”), dated as of December 31. 2022, is made by and between Alpha Energy, Inc., a Colorado corporation (the “Company”), and the holder (the “Holder”) of the Company’s 7.25% Senior Secured Convertible Notes due February 24, 2024 (the “Old Notes”).

 

WHEREAS, pursuant to that certain Contractual Investment Agreement (the “Purchase Agreement”), dated as of February 25, 2022, by and between the Company and the Holder for the Purchase of the Old Notes and transaction documents associated therewith (collectively, the “Released Agreements”), Holder purchased the Old Notes from the Company in the form attached to the Purchase Agreement which Notes are convertible into shares of Company Common Stock, par value $0.001 per share (the “Common Stock”) in accordance with the terms thereof;

 

WHEREAS, the Holder holds the amount of Old Notes as set forth on Schedule A hereto, and the Company is current in all payments and obligations under the Old Notes through the date hereof;

 

WHEREAS, the Company has authorized a new Note Purchase Agreement (“NPA”), an amended 7.25% Convertible Secured Note (the “New Note”), and Security Agreement the “Security Agreement” and together with the New Note and the Security Agreement, the “New 7.25% Agreements”) in the form attached hereto as Exhibit A which New Note shall be convertible into the Company’s Common Stock, in accordance with the terms of the New Note;

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to exchange with the Holder, and the Holder desires to exchange with the Company, the Old Note for the New Note, which shall in all respects be governed pursuant to the New 7.25% Agreements, and release the Company from the Released Agreements.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and Holder agree as follows:

 

1.         Terms of the Exchange. The Company and Holder agree that the Holder will exchange the Old Note and will relinquish any and all other rights he may have under the Released Agreements in exchange for such amount of New Note as governed by the New 7.25% Agreements.

 

2.         Closing. Closing shall occur on the date hereof at the principal offices of the Company, or such other location as the parties shall mutually agree. At closing, Holder shall deliver the Old Note for the New Note as indicated on Schedule A annexed hereto. Upon closing, any and all obligations of the Company to Holder under the Released Agreements shall be fully satisfied, the Old Note shall be cancelled and Holder will have no remaining rights, powers, privileges, remedies or interests under the Old Note or the Released Agreements.

 

3.         Further Assurances

 

Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

1

 

 

4.         Representations and Warranties of the Holder. The Holder represents and warrants as of the date hereof and as of the closing to the Company as follows:

 

a.   Authorization; Enforcement. The Holder has the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of this Agreement by the Holder and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Holder and no further action is required by the Holder.  This Agreement has been (or upon delivery will have been) duly executed by the Holder and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

b.   Tax Advisors. The Holder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. With respect to such matters, the Holder relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

c.   Information Regarding Holder. Holder is an “accredited investor”, as such term is defined in Rule 501 of Regulation D promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Holder to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Holder has the authority and is duly and legally qualified to purchase and own the Securities. Holder is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

 

d.    Legend. The Holder understands that the Note and Common Stock into which the Note is convertible (the “Securities”) will pursuant to an exemption from registration or qualification under the Securities Act and applicable state securities laws, and except as set forth below, shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

	 	[NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN][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 MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.	 

 

2

 

 

e.   Removal of Legends. Certificates evidencing the Securities shall not be required to contain the legend set forth in Section 4(d) above or any other legend (i) while a registration statement covering the resale of such Securities is effective under the Securities Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an affiliate of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 and the Subscriber is not an affiliate of the Company (provided that the Holder provides the Company with reasonable assurances that such Securities are eligible for sale, assignment or transfer under Rule 144 which shall not include an opinion of the Holder’s counsel), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that the Holder provides the Company with an opinion of counsel to the Holder, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the Securities Act or (v) if such legend is not required under applicable requirements of the Securities Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) business days following the delivery by the Holder to the Company or the transfer agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from the Holder as may be required above in this Section 4(e), as directed by the Holder, either: (A) provided that the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer Program and such Securities are Shares or Conversion Shares, credit the aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the Holder, a certificate representing such Securities that is free from all restrictive and other legends, registered in the name of the Holder or its designee. The Company shall be responsible for any transfer agent fees or DTC fees with respect to any issuance of Securities or the removal of any legends with respect to any Securities in accordance herewith, including, but not limited to, fees for the opinions of counsel rendered to the transfer agent in connection with the removal of any legends.

 

f.    Restricted Securities. The Holder understands that: (i) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Holder, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

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5.         Representations and Warranties of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

a.    Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the “Exchange Documents”) and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors of the Company or the Company’s stockholders in connection therewith, including, without limitation, the issuance of the Common Stock, and the reservation for issuance and issuance of Common Stock upon conversion of the Note have been duly authorized by the Company's Board of Directors and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders.  This Agreement and any Other Agreement (as defined herein) have been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

b.   Organization and Qualification. Each of the Company and its subsidiaries (the “Subsidiaries”) are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company to perform any of its obligations under any of the New 7.25% Agreements. Other than its Subsidiaries, there is no Person (as defined below) in which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest. “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department or agency thereof.

 

4

 

 

c.   No Conflict. The execution, delivery and performance of the New 7.25% Agreements by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities and reservation for issuance and issuance of the Common Stock) will not (i) (i) result in a violation of the Certificate of Incorporation (as defined below) or other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or Bylaws (as defined below) of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of the OTC Markets (the “Principal Market”) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably be expected to have a Material Adverse Effect.

 

d.    No Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by the Exchange Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date of this Agreement, and neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Exchange Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.

 

e.    Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Holder contained herein, the offer and issuance by the Company of the Securities is exempt from registration under the Securities Act. The offer and issuance of the Securities is exempt from registration under the Securities Act pursuant to the exemption provided by Section 3(a)(9) thereof. The Company covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving, has any agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in connection with the transactions contemplated by the New 7.25% Agreements.

 

f.    Issuance of Securities. The issuance of the Securities are duly authorized and upon issuance in accordance with the terms of the New 7.25% Agreements. shall be validly issued, fully paid and non-assessable and free from all taxes, liens, charges and other encumbrances with respect to the issue thereof. Upon issuance or conversion in accordance with the Note, the Common Stock, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.

 

g.   Transfer Taxes. As of the date of this Agreement, all share transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance of the Securities to be exchanged with the Holder hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

5

 

 

h.   Equity Capitalization. Except as disclosed in the Company’s SEC Documents (as defined below): (i) none of the Company’s or any Subsidiary’s capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company or any Subsidiary; (ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there are no financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (v) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act; (vi) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (vii) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (viii) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the in the Company’s filings with the SEC (the “SEC Documents”) which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse Effect. The Company has furnished to the Holder true, correct and complete copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all securities convertible into, or exercisable or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto that have not been disclosed in the SEC Documents.

 

(i) (i)         Shell Company Status. The Company is not and has never been an issuer identified in Rule 144(i)(1) of the Securities Act. The Company is, and has been for a period of at least 90 days, subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act.

 

6.        Additional Acknowledgments. The Holder and the Company confirm that the Company has not received any consideration for the transactions contemplated by this Agreement. Pursuant to Rule 144 promulgated by the Commission pursuant to the Securities Act and the rules and regulations promulgated thereunder as such Rule 144 may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule 144, the holding period of the Securities (including the Common Stock upon conversion of the Notes) tacks back to February 22, 2022, the issue date of the Old Notes. The Company agrees not to take a position contrary to this paragraph.

 

7.           Release by the Holder; Termination of Released Agreements; Waiver of Registration Rights.

 

a.    In consideration of the foregoing, Holder releases and discharges Company, Company’s officers, directors, principals, control persons, past and present employees, insurers, successors, and assigns (“Company Parties”) from all actions, cause of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, claims, and demands whatsoever, in law, admiralty or equity, which against Company Parties ever had, now have or hereafter can, shall or may, have for, upon, or by reason of any matter, cause or thing whatsoever, whether or not known or unknown, arising under the Released Agreements.  It being understood that this Section shall be limited in all respects to only matters arising under or related to the Released Agreements shall under no circumstances constitute a release, waiver or discharge with respect to the New Note or New 7.25% Agreement or limit the Holder from taking action for matters with respect to the New Note, the New 7.25% Agreements or events that may arise in the future.

 

6

 

 

b.   As further consideration of the foregoing, Holder and the Company hereby acknowledge and agree that the Purchase Agreement, and all rights, covenants, agreements and obligations contained therein, is hereby terminated and of no further force or effect. The Holder and the Company hereby agree and confirm that the Holder’s agreement to terminate the Company’s obligations under the Purchase Agreement shall constitute an agreement to terminate pursuant to Section 9 of the Purchase Agreement and, upon the Company independently obtaining similar agreements from such Other Holders as would constitute all of the Holders of the Old Notes, such termination shall be considered a termination of the Purchase Agreement with respect to all parties thereto.

 

c.    As further consideration of the foregoing, Holder hereby waives, only on behalf of itself, any rights under any Registration Rights Agreement, by and between the Company and the Holder, as amended from time to time and any restriction on the Company’s ability to grant additional registration rights to Holder or any other person or entity, providing the parties thereto with any notice relating to the filing of any additional registration statements by the Company and requiring that the Company include any Registrable Securities (as defined therein) in any future registration statement filed by the Company. The Holder and the Company hereby agree and confirm that the Holder’s agreement to waive the Company’s obligations under any Registration Rights Agreement shall constitute a waiver pursuant to Section 9 of the Purchase Agreement and, upon the Company independently obtaining similar waivers from such Other Holders as would constitute all the Holders” (as defined in the Registration Rights Agreement), such waiver shall be considered a waiver of the Company’s obligations under any Registration Rights Agreement with respect to all parties thereto.

 

8.         Miscellaneous.

 

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

 

b.    Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed under the laws of the State of New York without regard to the choice of law principles thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York located in The City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or therewith or with any transaction contemplated hereby or thereby, and hereby irrevocably waives any objection that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. 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 WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

c.    Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

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d.   Counterparts/Execution. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains an electronic file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or electronic file signature page (as the case may be) were an original thereof.

 

e.    Notices. Any notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered or sent (i) postage prepaid by registered mail, return receipt requested, or (ii) by facsimile, to the respective parties as set forth below, or to such other address as either party may notify the other in writing.

 

If to the Company, to:         

 

If to the Company:

 

Alpha Energy, Inc.

14143 Denver West Parkway, Suite 100,

Golden, CO 80401

800-819-0604

Jay Leaver, Pres.

Jleaver@alpha-energy.us

 

 

With a copy to:

 

Law Office of Harvey Kesner

500 Fifth Avenue

Suite #938

New York, NY 10036

646-678-2543

Harvey@hkesnerlaw.com

 

If to Holder, to the address set forth on the signature page of the Holder         

 

f.    Expenses. The parties hereto shall pay their own costs and expenses in connection herewith.

 

g.    Entire Agreement; Amendments. This Agreement constitutes the entire agreement between the parties with regard to the subject matter hereof and thereof, superseding all prior agreements or understandings, whether written or oral, between or among the parties. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

 

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

 

i.    Independent Nature of the Holder’s Obligations and Rights. The obligations of the Holder under the New 7.25% Agreements are several and not joint with the obligations of any other holder of New Notes Warrants (each, an “Other Holder”) under any other agreement to exchange Old Notes for New Notes (each, an “Other Agreement”), and the Holder shall not be responsible in any way for the performance of the obligations of any Other Holders under any Other Agreement. Nothing contained herein or in any Other Agreement, and no action taken by the Holder pursuant hereto or any Other Holder pursuant to any Other Agreement, shall be deemed to constitute the Holder or any Other Holder as, and the Company acknowledges that the Holder and the Other Holders do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Holder and any Other Holder are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by the Exchange Documents, any other agreement or any matters, and the Company acknowledges that the Holder and the Other Holders are not acting in concert or as a group or entity, and the Company shall not assert any such claim, with respect to such obligations or the transactions contemplated by the Exchange Documents and any Other Agreement. The decision of the Holder to acquire the Securities pursuant to the Exchange Documents has been made by the Holder independently of any Other Holder. The Holder acknowledges that no Other Holder has acted as agent for the Holder in connection with the Holder making its acquisition hereunder and that no Other Holder will be acting as agent of the Holder in connection with monitoring the Holder’s Securities or enforcing its rights under the Exchange Documents. The Company and the Holder confirm that the Holder has independently participated with the Company in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any of the Other Agreements, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose. To the extent that any of the Other Holders and the Company enter into the same or similar documents, all such matters are solely in the control of the Company, not the action or decision of the Holder, and would be solely for the convenience of the Company and not because it was required or requested to do so by the Holder or any Other Holder. For clarification purposes only and without implication that the contrary would otherwise be true, the transactions contemplated by the Exchange Documents include only the transaction between the Company and the Holder and do not include any other transaction between the Company and any Other Holder.

 

j.    Most Favored Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any Other Holder in any Other Agreement, is or will be more favorable to such Other Holder than those of the Holder and this Agreement. If, and whenever on or after the date hereof, the Company desires to enter into an Other Agreement, then (i) the Company shall provide prior written notice thereof to the Holder and (ii) upon execution by the Company and such Other Holder of such Other Agreement, the terms and conditions of this Agreement, the Other Agreement and the Securities (other than any limitations on conversion set forth therein) shall be, without any further action by the Holder or the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Other Agreement, provided that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Agreement or the Securities (as the case may be) shall apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the Holder.

 

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k.   Reporting Status. Until the date on which none of the Securities are outstanding, the Company shall timely file all reports required to be filed with the SEC pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Company shall continue to timely file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would otherwise no longer require or permit such filings.

 

l.    Listing. The Company shall use reasonable best efforts to promptly secure the listing or designation for quotation (as the case may be) of all of the Common Stock into which the New Note is convertible upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be) (subject to official notice of issuance) (but in no event later than the date of conversion of the Notes) and shall use reasonable best efforts to maintain such listing or designation for quotation (as the case may be) of all Common Stock from time to time issuable under the terms of this Agreement on such national securities exchange or automated quotation system. The Company shall maintain the Common Stock’s listing or authorization for quotation (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE MKT, the AMEX, the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market (each, an “Eligible Market”) after approval for listing on such market. Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 8(l).

 

m.  Pledge of Securities. The Company acknowledges and agrees that the Securities may be pledged by the Holder in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and if the Holder effects a pledge of Securities it shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any Other Agreement. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by the Holder.

 

(Signature Pages Follow)

 

10

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

 

	ALPHA ENERGY, INC.	 
	 	 	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name:  Jay Leaver	 
	 	Title:    President	 
	 	 	 
	 	 	 
	HOLDER: 20 SHEKELS, INC.	 
	 	 	 
	 	 	 
	 	 	 
	By:	 	 
	Name:	       Jay Leaver	 
	Title:	       President	 

 

 

	Address for Notices:	 
	 	 
	 	 
	 	 
	 	 
	 	 
	Address for delivery of Securities:	 
	 	 
	 	 
	 	 
	 	 

 

11

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

 

	ALPHA ENERGY, INC.	 
	 	 	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name:  Jay Leaver	 
	 	Title:    President	 
	 	 	 
	 	 	 
	 	 	 
	HOLDER: AEI MANGEMENT, INC.	 
	 	 	 
	 	 	 
	 	 	 
	By:	 	 
	Name:	       Harry McMillan	 
	Title:	       President	 

 

	Address for Notices:	 
	 	 
	 	 
	 	 
	 	 
	 	 
	Address for delivery of Securities:	 
	 	 
	 	 
	 	 
	 	 

 

12

 

 

SCHEDULE A

 

 

 

 

	
			Name of Holder

				
			7.25% Old

			Note Amount

			Outstanding

			
	
			20 Shekels, Inc.

				
			$906,754

			
	
			AEI Management, Inc.

				
			$413,206

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