FORM OF CONVERTIBLE NOTERoyale Energy Inc • August 5th, 2016 • Crude petroleum & natural gas • California
THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO HOLDER THAT SUCH REGISTRATION IS NOT REQUIRED.
SUBSCRIPTION AGREEMENTSubscription Agreement • August 5th, 2016 • Royale Energy Inc • Crude petroleum & natural gas • New York
This Subscription Agreement (this “Agreement”) is being delivered to the purchaser identified on the signature page to this Agreement (the “Subscriber”) in connection with its investment in Royale Energy Inc., a California corporation (the “Company”). The Company is conducting a private placement (the “Offering”) of “Units”, each Unit comprised of one share of the Company’s common stock (the “Common Stock”) and a 2 year warrant to purchase one fifth of a share of the Company’s Common Stock at an exercise price of $0.80 per share, at a purchase price (the “Purchase Price”) of $0.40 per Unit.
ROYALE ENERGY, INC. COMMON STOCK WARRANTRoyale Energy Inc • August 5th, 2016 • Crude petroleum & natural gas • California
THIS CERTIFIES THAT, for value received, [________] or its assigns (the “Holder”) is entitled to purchase, and Royale Energy, Inc., a California corporation (the “Company”), promises and agrees to sell and issue to the Holder, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the “Initial Exercise Date” listed above, and on or prior to the close of business on the two (2) year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, up to [_________] shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock, no par value per share (the “Common Stock”), of the Company, at the Exercise Price. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 1.
