SEC Contract Filing

Filing Date: 2022-01-05

Document Content:
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>7
<FILENAME>cei_ex105.htm
<DESCRIPTION>PROMISSORY NOTE
<TEXT>
<html><head><title>cei_ex105.htm</title><!--Document created using EDGARMaster--></head><body style="TEXT-ALIGN: justify; FONT: 10pt times new roman; MARGIN-LEFT: 7%; MARGIN-RIGHT: 7%"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; text-align:right;"><strong>EXHIBIT 10.5</strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; text-align:center;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; text-align:center;"><strong><u>PROMISSORY NOTE</u></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; text-align:center;">&nbsp;</p> <table style="border-spacing:0;font-size:10pt;text-align:left;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:50%;"> <p style="margin:0px">$23,750,000.00</p></td> <td> <p style="MARGIN: 0px; text-align:right;">December 31, 2022</p></td></tr></table> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; TEXT-INDENT: 0.5in; text-align:justify;">FOR VALUE RECEIVED, the borrower whose name appears on the signature page hereto (&#8220;<strong>Borrower</strong>&#8221;), promises to pay to the order of Camber Energy, Inc., a Nevada corporation (&#8220;<strong>Lender</strong>&#8221;), the principal sum of $23,750,000.00, together with interest thereon, as follows:</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in; text-align:justify;"><strong>1. </strong><strong><u>Agreement</u></strong>. This Promissory Note (&#8220;<strong>Note</strong>&#8221;), is issued by Borrower as partial consideration, along with concurrent payment of $1,250,000.00 (one fourth of $5,000,000.00) in cash by wire transfer of immediately available funds, for the issuance by Lender of 2,636 shares of Series G Convertible Preferred Stock (&#8220;<strong>Preferred Shares</strong>&#8221;) of Lender pursuant to that certain Stock Purchase Agreement (&#8220;<strong>Agreement</strong>&#8221;) dated December 30, 2021, which is incorporated herein by reference. Capitalized terms not otherwise defined herein will have the meanings defined in the Agreement and Transaction Documents. </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in; text-align:justify;"><strong>2. </strong><strong><u>Interest</u></strong>. The principal balance outstanding from time to time under this Note will bear interest from and after the date hereof at the rate of 1.2% per annum. Interest will be calculated on a simple interest basis and the number of days elapsed during the period for which interest is being calculated. Borrower will have the right to prepay all or any part of the principal balance of this Note at any time without penalty or premium. All payments on this Note will be first applied to reduce the outstanding principal balance hereof, and then to satisfaction of any accrued but unpaid interest.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in; text-align:justify;"><strong>3. </strong><strong><u>Payments</u></strong><strong>.</strong> If not sooner paid, the unpaid principal balance, interest thereon and any other charges due and payable under this Note will be due and payable on the date first set forth above; <u>provided however</u>, that, notwithstanding the foregoing or any other provision of any Transaction Document, Borrower&#8217;s payment obligation will be tolled and no payment will be due during any period of time that the Registration Statement is not effective and/or all Equity Conditions under the Certificate of Designations with respect to the Preferred Shares are not met. As soon as the Registration Statement is declared effective and all Equity Conditions are met, Borrower&#8217;s payment obligation will resume and continue from that point forward. Payments of interest will be due in arrears on the maturity date and the amount of interest not paid will be added to the principal balance of this Note and such amount will thereafter accrue interest at the rate set forth above. The outside maturity date for all principal and interest due under this Note will be the Trading Day immediately preceding the Dividend Maturity Date under the Certificate of Designations with respect to the Preferred Shares. </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in; text-align:justify;"><strong>4. </strong><strong><u>Full Recourse Note</u></strong><strong>.</strong> This is a full recourse promissory note. Accordingly, notwithstanding that Borrower&#8217;s obligations under this Note are secured by the Collateral, in the event of a Default hereunder, Lender will have full recourse to the Collateral and all the other assets of Borrower. Moreover, Lender will not be required to proceed against or exhaust any Collateral, or to pursue any Collateral in any particular order, before Lender pursues any other remedies against Borrower or against any of Borrower&#8217;s assets.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">&nbsp;</p> <table style="border-spacing:0;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td class="hpbhr">&nbsp;</td></tr> <tr st