Exhibit 10.2


 


FORM OF MANAGEMENT SERVICES AGREEMENT


 




    	 



    	 



    



 


MANAGEMENT SERVICES AGREEMENT


 


BY AND AMONG


 


AECP MANAGEMENT, LLC,

an Oklahoma Limited Liability Company


 


AMERICAN ENERGY CAPITAL PARTNERS, LP

a Delaware Limited Partnership


 


AND


 


AECP OPERATING COMPANY, LLC

a Delaware Limited Liability Company and

Wholly Owned Subsidiary of AECP LP


 


Dated [●], 2014


 




    	 



    	 



    

 


TABLE OF CONTENTS


 





	ARTICLE I Defined Terms, Interpretation	1
	 	 	 
	Section 1.1	Defined Terms	1
	 	 	 
	Section 1.2	References and Titles	12
	 	 	 
	ARTICLE II Management Services	12
	 	 	 
	Section 2.1	Engagement of Manager	12
	 	 	 
	Section 2.2	Direction of Result of Management Services	12
	 	 	 
	Section 2.3	Management Standards	13
	 	 	 
	Section 2.4	Records; Financial Reports; Instruments of Service	13
	 	 	 
	Section 2.5	Certain Limitations on Management Services	14
	 	 	 
	Section 2.6	Well Operations	14
	 	 	 
	ARTICLE III Financial Administration	14
	 	 	 
	Section 3.1	Budget.	14
	 	 	 
	Section 3.2	Cash Management	15
	 	 	 
	Section 3.3	Revenues and Joint Interest Billings	15
	 	 	 
	Section 3.4	Manager Payments	16
	 	 	 
	Section 3.5	Payment to Owner	16
	 	 	 
	ARTICLE IV Contract Administration; Power of Attorney	16
	 	 	 
	Section 4.1	Contract Administration	16
	 	 	 
	Section 4.2	Purchases for the Owner	16
	 	 	 
	Section 4.3	Affiliate Transactions	16
	 	 	 
	Section 4.4	Power of Attorney	17
	 	 	 
	ARTICLE V Compensation and Expenses	17
	 	 	 
	Section 5.1	Management Fee	17
	 	 	 
	Section 5.2	Reimbursement of Organization and Offering Expenses; Reimbursement of Out-of-Pocket Expenses	18
	 	 	 
	Section 5.3	Acquisition Fee and Acquisition Expenses	20
	 	 	 
	Section 5.4	Disposition Fee and Disposition Expenses	21
	 	 	 
	Section 5.5	Financing Coordination Fee	22
	 	 	 
	ARTICLE VI Representations, Warranties and Covenants	22
	 	 	 
	ARTICLE VII Additional Agreements of Manager; Restrictions on Manager	23
	 	 	 
	Section 7.1	Compliance with Laws	23
	 	 	 
	Section 7.2	Compliance with Obligations	23


 




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	Section 7.3	Prohibited Acts	23
	 	 	 
	Section 7.4	Emergencies	25
	 	 	 
	Section 7.5	Manager’s Insurance	25
	 	 	 
	ARTICLE VIII Personnel Administration	26
	 	 	 
	Section 8.1	General	26
	 	 	 
	Section 8.2	Responsibility	26
	 	 	 
	ARTICLE IX Investment Opportunities	26
	 	 	 
	Section 9.1	Investment Opportunities.	26
	 	 	 
	Section 9.2	Initial Budget; Revisions to Budget.	27
	 	 	 
	ARTICLE X Term; Termination	27
	 	 	 
	Section 10.1	Term	27
	 	 	 
	Section 10.2	Termination	28
	 	 	 
	Section 10.3	Transition Services	29
	 	 	 
	Section 10.4	Effect of Termination	29
	 	 	 
	ARTICLE XI Indemnification; Liability of the Parties	29
	 	 	 
	Section 11.1	Indemnification	29
	 	 	 
	Section 11.2	EXTENT OF INDEMNIFICATION; EXPRESS NEGLIGENCE RULE	30
	 	 	 
	Section 11.3	Indemnification Procedure	30
	 	 	 
	Section 11.4	Limitation on Consequential and Other Damages	30
	 	 	 
	Section 11.5	Manager Liability	31
	 	 	 
	Section 11.6	Conspicuous	31
	 	 	 
	ARTICLE XII Force Majeure	31
	 	 	 
	ARTICLE XIII Miscellaneous	32
	 	 	 
	Section 13.1	Time	32
	 	 	 
	Section 13.2	Independent Contractor	32
	 	 	 
	Section 13.3	Notices	32
	 	 	 
	Section 13.4	Cooperation	33
	 	 	 
	Section 13.5	No Third Party Beneficiaries	34
	 	 	 
	Section 13.6	Cumulative Remedies	34
	 	 	 
	Section 13.7	Governing Law; Jurisdiction; Waiver of Jury Trial	34
	 	 	 
	Section 13.8	Entire Agreement	34
	 	 	 
	Section 13.9	Assignment	34
	 	 	 
	Section 13.10	Amendment	35
	 	 	 
	Section 13.11	Severability	35


 




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	Section 13.12	Waiver	35
	 	 	 
	Section 13.13	Counterparts; Facsimiles; Electronic Transmission	35
	 	 	 
	Section 13.14	Corporate Opportunity	35
	 	 	 
	Section 13.15	Joint Acknowledgement	36
	 	 	 
	EXHIBITS:	 	 
	 	 	 
	Exhibit A	Scope of Services	A-1
	 	 	 
	Exhibit B	Insurance	B-1
	 	 	 
	Exhibit C	Cost Reimbursement	C-1
	 	 	 
	Exhibit D	Operating Agreement	D-1


 




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MANAGEMENT SERVICES AGREEMENT


 


This MANAGEMENT SERVICES
AGREEMENT (this “Agreement”), dated as of [•] [•], 2014 and effective for all purposes as of
the [___] day of ____________, 2014 (the “Effective Date”), is by and among AECP
MANAGEMENT, LLC, an Oklahoma limited liability company (the “Manager”), American
Energy CAPITAL PARTNERS, LP, a Delaware limited partnership (“AECP LP”), and AECp
OPERATING COMPANY, LLC, a Delaware limited liability company and a wholly owned subsidiary of AECP LP (the “Owner”).
The Manager, AECP LP and Owner are referred to herein individually as a “Party,” and collectively as
the “Parties.” Capitalized terms used but not defined herein shall have the meanings assigned to such
terms in Article I.


 


BACKGROUND:


 


A.           AECP
GP is the sole general partner of AECP LP; and


 


B.           The
Owner is engaged in the Business; and


 


C.           The
Manager is experienced and skilled in the conduct of business in the oil and gas acquisition, exploration, development and production
industry, and has the ability to provide technical, commercial, financing and management services that may be necessary or useful
to the Owner; and


 


D.           The
Owner desires to engage the Manager to perform and provide, and the Manager desires to perform and provide for and on behalf of
the Owner, the Services as set forth herein and in accordance with the terms and conditions hereof.


 


NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:


 


ARTICLE
I

Defined Terms, Interpretation


 


Section 1.1           Defined
Terms. As used in this Agreement, each of the following terms has the meaning given in this Section 1 as follows:


 


“Acquisition
Expenses” means any and all expenses, including but not limited to legal fees and expenses, travel and communications
expenses, financial advisory fees, brokerage fees, costs of appraisals, engineering fees and expenses, nonrefundable option payments
on property not acquired, accounting fees and expenses, title insurance premiums and the costs of performing due diligence (including,
without limitation, title, environmental and similar due diligence), but excluding Acquisition Fees, in each case incurred by AECP
LP, the Owner, the Manager or any of their Affiliates in connection with the selection, evaluation, acquisition, origination, making
or development of any Property Acquisition, whether or not acquired.


 


“Acquisition
Fee” means the fee payable to the Manager pursuant to Section 5.3.


 




    	 



    	 



    

 


“AECP
GP” means American Energy Capital Partners, GP LLC, a Delaware limited liability company and the general partner
of AECP LP.


 


“AECP
LP” has the meaning specified in the introductory paragraph.


 


“Affiliate”
means, with respect to any Person, each other Person that directly or indirectly (through one or more intermediaries or otherwise)
controls, is controlled by, or is under common control with such Person, provided, however, that the Parties specifically
acknowledge and agree that for purposes of this Agreement neither AECP GP nor the Owner is an Affiliate of the Manager.


 


“Agreement”
means this Agreement, as amended, supplemented or modified from time to time.


 


“Approved
Credit Facility” means a revolving or other credit facility entered into by AECP LP, the Owner or a Subsidiary of
the Owner.


 


“Assets”
means (a) the Leases; (b) the Wells; (c) all royalty, overriding royalty, production payments, net profits interests and other
interests in oil and gas properties owned by the Owner and its Subsidiaries; (d) all tangible personal property, equipment,
machinery, inventory, supplies, spare parts, fixtures and improvements that are a part of any Lease or Well or are owned by or
in the possession of the Owner and its Subsidiaries; and (e) all files, records and business data that relate to any Lease or Well
or any of the business of the Owner and its Subsidiaries.


 


“Bankruptcy”
means, with respect to any Person, the occurrence of any of the following events, conditions or circumstances: (i) such Person
shall file a voluntary petition in bankruptcy or shall be adjudicated as bankrupt or insolvent, or shall file any petition or answer
or consent seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself
under the United States Bankruptcy Reform Act of 1978 (the “Bankruptcy Code”) or any present or future
applicable federal, state or other statute or Law relating to bankruptcy, insolvency, reorganization or other relief for debtors,
or shall seek or consent to, or acquiesce in, the appointment of any trustee, receiver, conservator or liquidator of such Person
or of all or any substantial part of its properties (the term “acquiesce,” as used in this definition, includes the
failure to file a petition or motion to vacate or discharge any order, judgment or decree within 20 days, after entry of such order,
judgment or decree); (ii) an involuntary case or other proceeding shall be commenced against such Person seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief with respect to such Person or its debts under
the Bankruptcy Code or any present or future applicable federal, state or other statute or Law relating to bankruptcy, insolvency,
reorganization or other relief for debtors, or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed
or unstayed for a period of 90 consecutive days, (iii) a court of competent jurisdiction shall enter an order, judgment or decree
approving a petition filed against such Person seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under the Bankruptcy Code, or any other present or future applicable federal, state or other statute or law relating
to bankruptcy, insolvency, reorganization or other relief for debtors, and such Person shall acquiesce in the entry of such order,
judgment or decree or such order, judgment or decree shall remain unvacated and unstayed for an aggregate of 90 days (whether or
not consecutive) from the date of entry thereof, or any trustee, receiver, conservator or liquidator of such Person or of all or
any substantial part of its property shall be appointed without the consent or acquiescence of such Person and such appointment
shall remain unvacated and unstayed for an aggregate of 90 days (whether or not consecutive); (iv) such Person shall admit in writing
its inability to pay its debts as they mature or shall generally not be paying its debts as they become due; or (v) such Person
shall make a general assignment for the benefit of creditors or take any other similar action for the protection or benefit of
creditors.


 




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“Basket
Amount” means the following: (i) prior to 90 days following the second Fiscal Year after the occurrence of the Full
Investment Date, 2.0% of the aggregate capital contributions to AECP LP made on or before such date, and (ii) after 90 days following
the second Fiscal Year after the occurrence of the Full Investment Date, 2.0% of the after tax present value, discounted at 10%,
of the cash flows attributable to AECP LP’s consolidated estimated net proved reserves as set forth in AECP LP’s financial
statements filed with the Securities and Exchange Commission.


 


“Budget”
means the budget approved pursuant to Section 3.1(a), as amended and revised from time to time in accordance with Section
3.1(b).


 


“Business”
of the Owner and its subsidiaries is (a) to acquire, hold, maintain, renew, drill, develop, operate and sell working interests,
net profits interests, leasehold interests, royalties, and other types of oil and gas interests and/or equity interests in corporate,
limited liability company or partnership entities owning oil and gas interests; (b) to produce, collect, store, treat, deliver,
market, sell, farm-out or otherwise dispose of oil, gas and related hydrocarbons and minerals from its properties and interests;
and (c) to take all such other actions incidental to any of the foregoing as may be necessary or desirable.


 


“Business
Day” means any day other than Saturday or Sunday or any day on which commercial banks in Oklahoma City, Oklahoma
or New York, New York are authorized or required by law to close.


 


“Calendar
Month” means any of the months in the Gregorian calendar.


 


“Calendar
Quarter” means the calendar quarter of each Calendar Year ending March 31, June 30, September 30 and December
31.


 


“Calendar
Year” means a 12 consecutive Calendar Month period commencing on January 1, but the first Calendar Year will begin
on the Effective Date and the last Calendar Year will end on the date Owner is dissolved.


 


“Common
Units” means common units consisting of limited partner interests of AECP LP issued by the Partnership to Investors
in the Offering.


 




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“Company
Agreement” means the First Amended and Restated Limited Liability Company Agreement of AECP GP, as same may be amended,
supplemented or restated during the term of this Agreement.


 


“Contract
Purchase Price” means the total consideration, including any “carried interest” consideration or deferred
or “earn-out” payments when paid by AECP LP or the Owner in connection with the acquisition from any seller(s) of any
Property Acquisition. With respect to any acquisition that consists, in whole or in part, of the contribution to AECP LP or the
Owner by the owner(s) of the property Acquisition in consideration for equity interests of AECP LP, such equity interests shall
be determined to have the fair market value mutually agreed by AECP GP and the Manager.


 


“Contract
Sales Price” means the total consideration, including any “carried interest” consideration or deferred
or “earn-out” payments when received by AECP LP or the Owner for the sale or other disposition of any Assets (other
than sales of oil, gas and other hydrocarbons produced from the Assets in the ordinary course of business). With respect to any
sale or disposition of Assets that consists, in whole or in part, of the receipt by AECP LP or the Owner of non-cash consideration,
such non-cash consideration shall be determined to have the fair market value mutually agreed by AECP GP and the Manager.


 


“Control”
(including collective meanings, “controlling,” “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.


 


“Dealer
Manager” means Realty Capital Securities, LLC, or such other Person selected by AECP GP to act as the dealer manager
of the Offering.


 


“Dealer
Manager Fee” means a fee of three percent (3.0%) of the Gross Proceeds that is payable to the Dealer Manager for
serving as the dealer manager of the Offering.


 


“Default
Amount” has the meaning specified in Section 5.3.


 


“Default
Rate” means, on the date of determination, the Prime Rate (as published in the “Money Rates” table of
the Wall Street Journal, eastern edition) plus an additional 2.0 percentage points (that is, 200 basis points; or, if such rate
is at any time contrary to any applicable Law, then “Default Rate” shall be reduced to mean the maximum
rate permitted by applicable Law).


 


“Development
Activities” means all operations and activities related to the development of the Assets, including the drilling
of any Development Wells, recompletions, workovers and operations subsequent to a well reaching its objective depth on any Lease
or other prospect held by the Owner or its subsidiaries and related proposals, activities and operations required to commence and
sustain production from such well(s), including the design, fabrication or other acquisition, and installation, of a related development
system.


 




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“Development
Well” means a well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon
known to be productive.


 


“Disposition
Expenses” means any and all expenses, exclusive of Disposition Fees, incurred by AECP LP, the Owner, the Manager
or any of their Affiliates in connection with the sale or other disposition, or proposed sale or other disposition, of all or any
portion of the Assets (other than the sale of oil, gas or other hydrocarbons produced from the Assets) , whether or not sold or
otherwise disposed of, including, without limitation, legal fees and expenses, travel and communications expenses, brokerage fees,
costs of appraisals, engineering fees and expenses, accounting fees and expenses, title insurance premiums and the costs of performing
due diligence.


 


“Disposition
Fee” means the fee payable to the Manager pursuant to Section 5.4.


 


“Draft
Budget” has the meaning specified in Section 3.1(a).


 


“DRULPA”
means the Delaware Revised Uniform Limited Partnership Act or any successor statute, as amended from time to time.


 


“Economic
Run” means data and other information, delivered in written or electronic formats, necessary to present a base case,
an upside case and a downside case economic analysis of a Property Acquisition, including, at a minimum and without limitation,
the following:


 


(a)          Cash
flow financial model analysis, including:


 


(i)          a
calculation of the Property Acquisition internal rate of return using such assumptions with respect to leverage, debt amortization
and general and administrative expenses and management fees as Manager and Owner mutually agree at any time and from time to time
are appropriate for financial modeling purposes with respect to Property Acquisitions; and


 


(ii)         projected
financial results from the Property Acquisition;


 


(b)          supporting
property-level reserve reports prepared by either qualified internal or independent reserve engineers as determined by the Manager
in its discretion; and


 


(c)          a
cash flow analysis showing the projected impact of the Property Acquisition on the projected cash flow of the Owner.


 


“Effective
Date” has the meaning specified in the introductory paragraph of this Agreement.


 




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“Emergency”
means any sudden or unexpected event which causes, or risks causing, (a) substantial damage to any Asset or the property of a Third
Party, or (b) death of or injury to any Person, (c) damage or substantial risk of damage to natural resources (including wildlife)
or the environment, (d) safety concerns associated with continued operations or (e) non-compliance with applicable Law, in each
case which event is of such a nature that a response cannot, in the reasonable discretion of Manager, await the decision of Owner.
For the avoidance of doubt, an “Emergency” shall include any release or threatened release of Hazardous Substances
into the environment that requires notification to any Governmental Authority under applicable Law.


 


“Employee”
means each employee or individual independent contractor of Manager.


 


“Expense
Cap” has the meaning specified in Section 5.2(a).


 


“Financing
Coordination Fee” has the meaning specified in Section 5.5.


 


“Force
Majeure Event” means any cause or event not reasonably within the control of the Party whose performance is sought
to be excused thereby including the following causes and events (solely to the extent such causes and events are not reasonably
within the control of the Party claiming suspension), which list of events is not exhaustive: acts of God, strikes, lockouts, or
other industrial disputes or disturbances, acts of the public enemy, wars, blockades, insurrections, civil disturbances and riots,
epidemics, landslides, lightning, earthquakes, fires, tornadoes, hurricanes, storms, floods, washouts, excessive rainfall and warnings
for any of the foregoing which may necessitate the precautionary shut-down of wells, plants, pipelines, gathering systems, or other
related facilities; arrests, orders, directives, restraints and requirements of governments and government agencies, either federal
or state, civil and military; outages (shutdown) for the making of repairs, alterations, relocations or inspections; inability
to secure labor or materials, inclement weather that necessitates extraordinary measures and expense to construct facilities or
maintain operations, or any other causes, whether of the kind enumerated herein or otherwise, not reasonably within the control
of the Party claiming suspension. Such term shall likewise include, in those instances where either Party is required to obtain
servitudes, rights-of-way, grants, permits, or licenses to enable such Party to fulfill its obligations hereunder, the inability
of such Party to acquire, or delays on the part of such Party in acquiring, at reasonable cost and after the exercise of reasonable
diligence, such servitudes, rights-of-way, grants, permits or licenses, and in those instances where either Party hereto is required
to secured permits or permissions from any Governmental Authority to enable such Party to fulfill its obligations hereunder, the
inability of such Party to acquire, or delays on the part of such Party in acquiring, at reasonable cost and after the exercise
of reasonable diligence, such permits and permissions.


 


“Full
Investment Date” means the date on which AECP LP has invested, committed for investment or otherwise spent 90% or
more of the aggregate capital contributions (net of the Dealer Manager Fee, Selling Commissioners, volume discounts, any marketing
expenses, due diligence expenses and Organization and Offering Expenses) received by AECP LP from the Offering.


 


“FWPP”
means the Chesapeake Energy Corporation Founders Well Participation Program, dated as of June 10, 2005.


 




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“FWPP
Assets” shall mean any assets or properties acquired by Aubrey K. McClendon, directly or through any of his Affiliates
or by his spouse, in connection with or pursuant to the FWPP.


 


“FWPP
Opportunity” shall mean any right of Aubrey K. McClendon or any entity of which he is an Affiliate to acquire a working
interest in any oil and gas property pursuant to the FWPP.


 


“GAAP”
means generally accepted accounting principles, as recognized by the U.S. Financial Accounting Standards Board (or any generally
recognized successor).


 


“General
Parameters” means the general parameters for a Property Acquisition as the Manager and Owner may mutually agree at
any time and as same may thereafter be amended, modified or superseded by mutual agreement of the Manager and Owner, which general
parameters shall include, without limitation, general parameters for terms and conditions of Property Acquisitions with respect
to title, environmental, other liabilities, indemnification, gas imbalances, conditions to closing and other matters mutually determined
to be appropriate.


 


“General
Partner” means AECP GP, in its capacity as the general partner of AECP LP.


 


“Governmental
Authority” means any federal, national, regional, state, municipal or local government, any political subdivision
or any governmental, judicial, public or statutory instrumentality, tribunal, court, arbitral panel, or other regulatory bureau,
authority, body or entity having legal jurisdiction over the matter or Person in question.


 


“Gross
Proceeds” means the aggregate sales price of all Common Units issued by AECP LP to Investors in the Offering, without
deduction for the Dealer Manager Fee, Selling Commissions, volume discounts, any marketing expense and due diligence expense reimbursement
or Organization and Offering Expenses.


 


“Hazardous
Substances” means any pollutants, contaminants, toxic or hazardous substances, materials, wastes, constituents, compounds
or chemicals that are regulated by, or may form the basis of liability under any environmental Laws, including asbestos-containing
materials (but excluding any NORM).


 


“Hedging
Policy” means a policy or policy with respect to Hedges that Owner approves as the Hedging Policy of the Owner from
time to time.


 


“Hedges”
means any commodity futures contract, commodity swap, commodity option, commodity forward sale, commodity put, call or collar or
other similar agreement or arrangement designed to protect against fluctuations in the price of oil, gas or other hydrocarbons
used, sold or produced by a person.


 


“Holdings”
means AECP Holdings, LLC, an affiliate of the Manager.


 




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“Initial
Closing” means the initial closing of the purchase of Common Units from AECP LP by Investors pursuant to the Offering.


 


“Initial
Purchase Price” means $20.00, the amount paid by the Investors to AECP LP to purchase Common Units in the Offering.


 


“Initial
Term” has the meaning specified in Section 10.1.


 


“Insured”
has the meaning specified in Section 7.5.


 


“Investors”
means Purchasers of Common Units from AECP LP pursuant to the Offering.


 


“Invoice”
has the meaning specified in Section 5.1.


 


“Joint
Venture” means any partnership, limited partnership or other arrangements with a Person(s) other than AECP LP or
the Owner in which AECP LP or the Owner is a member, partner or co-venturer and which is established to own, operate or develop
Property Acquisitions.


 


“Law”
means any and all applicable laws, statutes, ordinances, permits, decrees, rulings, writs, injunctions, orders, codes, judgments,
principles of common law, rules or regulations which are promulgated, issued or enacted by a Governmental Authority having jurisdiction.


 


“Lease
Operations” means all necessary or useful lease and land administration services and maintaining all land, lease
and other related records (including title to the Owner’s Assets and the maintenance and curing of the same) and all technical,
regulatory, permitting and marketing supervision and oversight determined by the Manager to be necessary or appropriate to assure
that the Owner’s Assets are being explored, developed, produced, gathered and operated in accordance with this Agreement,
including the Exhibits hereto, and applicable contracts and agreements.


 


“Leases”
means the oil, gas and mineral leases and operating rights now owned or hereafter participated in or acquired by the Owner as of
the date of determination.


 


“Listing
Date” has the meaning assigned to such term in the Partnership Agreement.


 


“Loan(s)”
means any indebtedness or obligation in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters
of credit, volumetric production payments, or similar instruments, including secured loans and mezzanine loans.


 


“Management
Services” has the meaning specified in Exhibit A.


 


“Manager”
has the meaning specified in the introductory paragraph of this Agreement.


 




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“Manager
Indemnified Parties” has the meaning specified in Section 11.1.


 


“Manager
Personnel” means the officers and employees of the Manager, the officers and employees of Affiliates of the Manager,
and all other persons otherwise engaged by the Manager for the provision of the Management Services hereunder.


 


“Material
Adverse Effect” shall mean any event, circumstance, change or effect (a) that is material and adverse to the business,
assets, properties, liabilities, financial condition or results of operations of AECP, the Owner and any subsidiaries thereof,
determined on a consolidated basis, if applicable.


 


“Material
Commitment” means any agreement, contract or other arrangement binding on Owner or any of its subsidiaries which
could reasonably be expected to result in payments by the Owner or any of its subsidiaries of more than the Basket Amount then
in effect or that AECP GP or Owner advises the Manager would otherwise qualify as a material contract under Regulation S-K of the
Securities Act of 1933.


 


“Monthly
Management Fee” has the meaning specified in Section 5.1.


 


“NASAA
Guidelines” means the guidelines adopted September 22, 1976 by the North American Securities Administrators Association,
Inc. relating to the registration of Oil and Gas Programs, as amended and in effect at the time the determination is made pursuant
to this Agreement.


 


“Offering”
means the best efforts registered public offering of Common Units consisting of (i) a minimum offering of 100,000 Common Units
at the Initial Purchase Price per Common Unit for Gross Proceeds of $2.0 million at the Initial Purchase and (ii) a maximum
offering of 100.0 million Common Units for Gross Proceeds of up to $2.0 billion.


 


“Operating
Agreement” means (i) the operating agreements, gas balancing agreements, and participation agreements
(including the applicable Accounting Procedures) which relate to the Assets or any of the Leases and other agreements
governing the drilling and operation of and accounting for the Leases, and (ii) with respect to Leases owned entirely by the
Owner and not already subject to an operating agreement at the time of acquisition by the Owner, the form of
operating agreement attached as Exhibit D with such additions or modifications thereto as the Manager determines to be necessary or appropriate
for the particular Assets to be subject thereto or for the operations to be conducted thereon.


 


“Operator”
means the person appointed as Operator of any Asset owned by Owner pursuant to an Operating Agreement, which shall be (a) the Manager
or an Affiliate of the Manager with respect to Assets operated by the Manager or an Affiliate of Manager pursuant to Section
2.7 and (b) the Third Party designated as operator with respect to Assets not operated by the Manager or an Affiliate of the
Manager.


 


“Operating
Services” has the meaning specified in Exhibit A.


 




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“Organization
and Offering Expenses” means all costs and expenses of organizing and selling the Offering (other than the Selling
Commissions and the Dealer Manager Fees) paid by AECP LP, AECP GP or the Manager in connection with the Offering, including, but
not limited to, fees of the underwriters' attorneys, expenses for printing, engraving, mailing, filing, salaries of employees while
engaged in sales activity, charges of transfer agents, registrars, trustees, escrow holders or escrow agent, depositaries, engineers
and their experts, expenses of qualification of the sale of the Common Units under Federal and State law, including taxes and fees,
accountants' and attorneys' fees and other front-end fees, charges incurred by or on behalf of AECP GP or the Manager in connection
with the formation of AECP LP, the Owner and the Manager, the preparation, negotiation, and execution of the Partnership Agreement,
this Agreement, any dealer manager or soliciting dealer agreement, escrow agent agreement subscription agreement and any other
agreement in connection with or relating to the Offering, issuance of Common Units in the Offering and reimbursement of AECP LP,
AECP GP or the Manager for costs in connection with preparing supplemental sales materials.


 


“OrgOff
Reimbursement Amount” has the meaning specified in Section 5.2(a).


 


“Out-of-Pocket
Expenses” has the meaning specified in Section 5.2(c).


 


“Owner”
has the meaning specified in the introductory paragraph of this Agreement and, unless the context otherwise requires, includes
the subsidiaries of the Owner.


 


“Owner
Agreement” means the First Amended and Restated Limited Liability Company Agreement of Owner, as same may be amended,
supplemented or restated during the term of this Agreement.


 


“Owner
Indemnified Parties” has the meaning specified in Section 11.2.


 


“Parties”
has the meaning specified in the introductory paragraph.


 


“Partnership
Agreement” means the First Amended and Restated Agreement of Limited Partnership of AECP LP, as same may be amended,
supplemented or restated during the term of this Agreement.


 


“Permitted
Investment” means (a) any evidence of indebtedness, maturing not more than one (1) year after such time, issued or
guaranteed by the United States Government, (b) commercial paper, maturing not more than nine (9) months from the date of
issue, which is issued by a corporation (other than an Affiliate of the Manager) organized under the laws of any state of the United
States or of the District of Columbia and rated A-l by Standard & Poor's Ratings Group, or any successor thereto, or P-l by
Moody's Investors Service, Inc., (c) any certificate of deposit or bankers acceptance, maturing not more than one (1) year
after such time, which is issued by a commercial banking institution that is a member of the U.S. Federal Reserve System and has
a combined capital and surplus and undivided profits of not less than $500,000,000, or (d) any repurchase agreement entered
into with any commercial banking institution of the stature referred to in clause (c) which (i) is secured by a fully
perfected security interest in any obligation of the type described in any of clauses (a) through (c), and (ii) has
a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such
commercial banking institution thereunder.


 




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“Permits”
has the meaning specified in Exhibit A.


 


“Person”
(whether or not capitalized) means any natural person, corporation, company, limited or general partnership, joint stock company,
joint venture, association, limited liability company, trust, bank, trust company, land trust, business trust or other entity or
organization, whether or not a Governmental Authority.


 


“Property
Acquisition” means any acquisition or proposed acquisition of developed and undeveloped producing or non-producing
oil and gas properties (generally consisting of Leases and Wells) where such properties are located onshore in the United States,
but excluding any FWPP Opportunity.


 


“Proposal”
has the meaning specified in Section 9.1(c).


 


“Reasonably
Prudent Operator” means conducting the applicable activities as a reasonably prudent operator, in a good and workmanlike
manner, with due diligence and dispatch, in accordance with good oilfield practice, and in compliance with applicable law and regulation,
but with no liability for losses sustained or liabilities incurred, except as such may result from gross negligence or willful
misconduct.


 


“Records”
has the meaning specified in Section 2.4.


 


“Rejected
Proposal” has the meaning specified in Section 9.1(b).


 


“Selling
Commission(s)” means the fee(s) payable to the Dealer Manager and reallowable to Soliciting Dealers with respect
to Common Units sold by them in the Offering.


 


“Services”
has the meaning set forth in Section 2.1.


 


“Soliciting
Dealers” means broker-dealers that are members of the Financial Industry Regulatory Authority Inc., or that are exempt
from broker-dealer registration, and that, in either case, have executed soliciting dealer or other agreements with the Dealer
Manager to sell Common Units in the Offering.


 


“Term”
has the meaning specified in Section 10.1.


 


“Third
Party” means any Person other than a Party to this Agreement or any Affiliate of a Party to this Agreement.


 


“Utica
Shale Formation” means the Utica Shale Formation in Ohio, West Virginia and Pennsylvania.


 


“Wells”
means all oil, gas and other hydrocarbon wells now owned or hereafter participated in or acquired by the Owner.


 




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Section 1.2           References
and Titles. All references in this Agreement to Exhibits, Schedules, Sections, paragraphs, subsections and other subdivisions
refer to the corresponding Exhibits, Schedules, Sections, paragraphs, subsections and other subdivisions of or to this Agreement
unless expressly provided otherwise. The words “this Agreement,” “herein,” “hereby,” “hereunder”
and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular Section, subsection
or other subdivision unless expressly so limited. The word “including” (in its various forms) means including without
limitation. All references to “$” or “dollars” shall be deemed references to United States Dollars. Titles
appearing at the beginning of any Sections, subsections or other subdivisions of this Agreement are for convenience only, do not
constitute any part of this Agreement, and shall be disregarded in construing the language hereof. The words “this Agreement,”
“here,” “hereby,” “hereunder’’ and “hereof,” and words of similar import,
refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The words “this Section”
and “this subsection,” and words of similar import, refer only to Section or subsection hereof in which such words
occur. The word “or” is not exclusive, and the word “including” (in its various forms) means including
without limitation. Each accounting term not defined herein, and each accounting term partly defined herein to the extent not defined,
will have the meaning given to it under GAAP. Exhibits and Schedules referred to herein are attached to and by this reference incorporated
herein for all purposes. Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender,
and words, terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and
vice versa, unless the context otherwise requires. References to any Law or agreement (or contract) means such Law or agreement
(or contract) as it may be amended from time-to-time. If an ambiguity, question of intent or question of interpretation arises,
this Agreement must be construed as if drafted jointly, and there must not be any presumption, inference or conclusion drawn against
either Party by virtue of the fact that its representatives have authored this Agreement or any of its terms. Any reference to
an agreement or contract herein shall include any amendment, modification or replacement thereof that is in accordance with the
provisions of this Agreement.


 


ARTICLE
II

Management Services


 


Section 2.1           Engagement
of Manager. Commencing on the Effective Date, the Owner hereby appoints, retains and authorizes the Manager, and the Manager
hereby accepts and agrees, to perform the Management Services and Operating Services (collectively, the “Services”)
during the Term at all times in accordance with the terms and conditions set forth in this Agreement.


 


Section 2.2           Direction
of Result of Management Services. Except with respect to the means or method by which the Manager performs the Services (which
shall be subject to the good faith direction or control of the Manager), the provision of the Services hereunder shall at all
times be subject to the direction of the Owner, including, without limitation, the Owner’s right, subject to Section
3.5, to direct the Manager with respect to funds held in any Owner’s account(s) managed by the Manager. The Parties
acknowledge that the Owner’s need for and scope of the Services may change from time to time depending on the nature, number
and size of the interests comprising the Assets held by the Owner at any given time, and Owner reserves the right to change the
scope of the Services consistent with Exhibit A from time to time by mutual agreement with the Manager.


 






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Section 2.3           Management
Standards. Subject to the terms hereof, the Manager will act in compliance with the provisions of this Agreement and, where
this Agreement does not specifically establish a particular obligation or standard, (a) with respect to Assets subject to an Operating
Agreement of which Manager is the Operator (and if the Owner or any of its subsidiaries is designated as the Operator of any Assets
Owner shall take such actions as are necessary or appropriate to cause the Manager to be designated as the Operator of same) in
compliance with the terms of such Operating Agreement as they apply to the Assets; (b) with respect to Assets subject to an
operating agreement of which the Manager is not the Operator, as a Reasonably Prudent Operator consistent with generally acceptable
standards for non-operated properties in the oil and gas business based on information regarding such operations furnished or otherwise
obtained by the Manager and (c) with respect to Assets or business of the Owner not subject to an Operating Agreement, in a manner
consistent with generally acceptable standards in the oil and gas business. The Manager shall have no obligation to advance funds
for the account of the Owner or to pay any sums of its own in connection with the performance of the actions which it is authorized
or required to take on behalf of the Owner hereunder.


 


Section 2.4           Records;
Financial Reports; Instruments of Service. At all times during the Term, the Manager shall maintain complete books of account,
receipts, disbursements, Permits and all other records relating to the Services performed hereunder (the “Records”),
and all accounting Records shall be maintained in accordance with GAAP. The Manager shall deliver (i) monthly financial and operating
reports to Owner in respect of the most recently ended Calendar Month in a form requested and as may be required by Owner, but
in any event no later than 30 days after the end of each Calendar Month, and (ii) quarterly cash flow forecasts for Owner as may
be required by Owner, but in any event no later than 15 days prior to the start of the applicable Calendar Quarter. Further, the
Manager shall prepare and submit to Owner a monthly management report in respect of the most recently ended Calendar Month with
such information as Owner may request, as well as any other information (without regard to whether relating to such Calendar Month)
that Owner may request. Owner and/or any representatives designated by Owner may at any time during normal business hours, upon
not less than two (2) Business Days’ advance notice, examine and/or make and retain copies of said Records. Upon the request
from Owner to the Manager given at any time or from time to time, the Manager shall furnish to Owner a report setting forth the
borrowing, hedging transactions and intangible drilling costs made or incurred during the preceding six-month period and such other
information as Owner may reasonably request and as is available to the Manager in order to permit Owner to comply with the reporting
requirements of the NASAA Guidelines as then in effect.


 




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Section 2.5           Certain
Limitations on Management Services. It is the intent of Owner and the Manager to maintain the separate corporate existence
of both entities, to hold themselves out to others as separate corporate entities and to conduct their respective businesses in
a manner which respects and preserves their separate identities. Owner and the Manager also acknowledge and agree that AECP LP,
as the sole member of Owner, is relying on the establishment and maintenance of the separate corporate entity of Owner. Accordingly,
the Manager will provide the Management Services, and the Owner will operate its business, consistent with this intent. Without
limiting the foregoing, the Manager, to the extent applicable when providing Management Services on behalf of Owner, shall (i)
maintain proper books and records that show the assets, liabilities, and transactions of the Owner separate from those of any other
person and prepare financial statements for Owner in the same manner, (ii) not commingle the funds received by the Manager on behalf
of the Owner with any other person’s funds, including those of the Manager, (iii) pay liabilities and expenses invoiced directly
to the Owner or its Assets only out of the Owner’s own funds maintained by or on behalf of Owner, and (iv) maintain separate
bank accounts belonging only to, or maintained by the Owner. Nothing in this Agreement shall prohibit the Manager and Owner from
acknowledging to third parties their status as parties to this Agreement.


 


Section
2.6           Well Operations. If the interest of the Owner in
a Lease (together with any interest owned by the Manager and its Affiliates) entitle the Owner to appoint the Operator of the
property, the Manager (or its designated Affiliate) shall use its reasonable commercial efforts to assist the Owner to take
the actions necessary to designate the Manager as the Operator of such property, which designation shall be pursuant to
either (i) the operating agreement currently in effect with respect to a property acquired by the Owner or (ii) if any of
such properties are not currently operated pursuant to an operating agreement, an operating agreement (including COPAS) in
the form attached hereto as Exhibit D, with such additions or modifications thereto as the Manager determines to be necessary or appropriate for the particular Assets to be subject
thereto or for the operations to be conducted thereon. To the extent any of the Services described herein are duplicative of services to be provided by the
Manager or any of its Affiliates under any joint operating agreement or other agreement, then the Manager shall so advise
Owner of such duplicative services, and, unless Owner and the Manager otherwise mutually agree, no additional obligations
will be incurred or implied by any of the terms of this Agreement, and such joint operating agreements or other agreement
(and not this Agreement) will govern the terms of such services.


 


ARTICLE
III

Financial Administration


 


Section 3.1           Budget.


 


(a)          Annual
Budget Process. The Manager shall prepare and submit to Owner at least 45 days before the beginning of each Calendar Year after
the first Property Acquisition by Owner, a budget (“Draft Budget”) detailing the Development Activities
planned to be commenced during the relevant Calendar Year, which shall specify the amounts expected to be spent by the Owner during
such Calendar Year to conduct such Development Activities, and to otherwise own its Assets and conduct the Business during such
Calendar Year; provided that in connection with the first acquisition made by the Owner, the Manager shall deliver a Draft Budget
to Owner in connection with such acquisition as contemplated by Section 9.2(a). The Owner shall approve or disapprove the
Draft Budget no later than 15 days prior to the start of the Calendar Year; provided that the first Draft Budget shall be approved
as provided in Section 9.2(a). If the Owner approves the Draft Budget, the Draft Budget shall be deemed the Budget
for purposes of this Agreement, until revised in accordance with Section 3.1(b) below. If the Owner fails to approve a Draft
Budget by the commencement of a Calendar Year, then until a Draft Budget for such Calendar Year is approved, the Manager is authorized
to pay from the Owner’s account the costs and expenses incurred in the ordinary course of business in amounts materially
consistent with, and for Development Activities and other activities set forth in, the prior Calendar Year’s Budget as adjusted
for supplements to such Budget attributable to any subsequent Property Acquisition(s), including in respect of costs and expenses
to the extent incurred pursuant to the contractual obligations of the Owner, including any Material Commitments, and other costs
and expenses approved as provided in this Agreement.


 




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(b)          Approval
of Additional Activities. From time to time prior to the termination of this Agreement, the Manager may present to Owner supplemental
Development Activities or other activities that the Manager proposes to be undertaken by the Owner and that are not included in
the applicable approved Budget for such Calendar Year, and revisions to a previously approved Budget that the Manager recommends
be adopted by Owner. If Owner approves such revised Budget, the revised Budget shall be deemed the Budget as used in this Agreement.
In addition, the Budget shall be deemed to be amended as provided in Section 9.2(b).


 


(c)          Cooperation.
Prior to and in respect of any proposals made by the Manager to Owner pursuant to Section 3.1(b), the Manager and Owner
agree to use good faith efforts (1) to exchange information regarding such proposals and proposed activities to be undertaken in
connection with any such proposal or potential alternatives to any such proposal and (2) to ensure an efficient and expedient review
and decision-making process in respect of such proposals. In addition, upon the reasonable request of Owner to the Manager, which
may be submitted no more frequently than once each Calendar Quarter, the Owner will have the right to review with the Manager the
current year’s Budget against expenditures incurred to date during the Calendar Year covered by such Budget.


 


(d)          Permitted
Overruns. Whenever any provision of this Agreement permits the Manager to make an expenditure or conduct a Development Activity
or other operation as provided in the Budget, the Manager will be deemed to have made such expenditure or conducted such Development
Activity or other operation as contemplated by the Budget if (1) the aggregate expenditures during any Budget period do not
exceed the amount set forth in the approved Budget for such Budget period for such Development Activity or other operation by more
than 10.0% (provided that the Manager shall advise Owner of such excess(es) within ten (10) Business Days after it is incurred)
or (2) the expenditure(s) are determined by the Manager to be required in connection with an Emergency.


 


Section 3.2           Cash
Management. The Manager shall implement a cash management system for the cash and cash equivalents of the Owner, the Manager
shall not commingle Owner’s funds with those of the Manager or its Affiliates, and funds of the Owner held by the Manager
shall be employed or applied for the exclusive benefit of Owner. The Manager shall invest any cash held on behalf of the Owner
only in Permitted Investments and shall hold all such Permitted Investments and any cash in trust on behalf of the Owner. The Manager
shall as promptly as commercially practicable deposit all cash and Permitted Investments held on behalf of Owner in excess of 50%
of the then remaining unexpended portion of the approved Budget as directed by Owner in one or more accounts of Owner.


 


Section 3.3           Revenues
and Joint Interest Billings. The Manager shall receive all revenues and joint interest billings for the account of the Owner
and promptly credit or charge, as the case may be, the Owner with the Owner’s net revenue and joint interest billings with
respect to its properties, on a property-by-property basis.


 




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Section 3.4           Manager
Payments. From time to time, Manager shall pay, unless otherwise instructed by Owner, from the Owner’s funds administered
by the Manager, as and to the extent required by any applicable contract, or Law and, to the Manager’s knowledge, to the
extent not previously paid by any purchaser, operator or Third Party, in each case to the extent such liability is attributable
to the Owner’s interest in a property or otherwise an obligation of Owner, all taxes, royalties, overriding royalties, delay
rentals, operating expenses and other charges under operating agreements, debt service on the Owner’s debts, the OrgOff Reimbursement
Amount, the Monthly Management Fee, Acquisition Fee, Disposition Fee, Financing Fee and Incentive Performance Fee (which shall
be paid to the Manager in accordance with Article V) and other debts and obligations of the Owner (including the costs to
be reimbursed to the Manager pursuant to Section 5.2).


 


Section 3.5           Payment
to Owner. As contemplated pursuant to Section 2.2, the Owner may, from time to time, direct the Manager to transfer
to an account specified by the Owner funds in accounts maintained for Owner by the Manager that the Owner and the Manager mutually
agree are not necessary for the conduct of the Owner’s business as contemplated by the Budget then in effect (for purposes
of determining the funds necessary to be retained, taking into account, among other items, funds required in accordance with the
Budget then in effect for working capital purposes, reserves for capital expenditures, reserves for payments due to the Manager
pursuant to Article V and reserves for an approved Property Acquisition; provided, however, that if in accordance
with the direction by Owner of the Manager in accordance with Section 2.2 or Section 3.4 or otherwise an activity
contemplated in the Budget then in effect and for which funds are retained is not consummated, then any remaining funds reserved
therefor will then be transferred to the Owner pursuant to this Section 3.5).


 


ARTICLE
IV

Contract Administration; Power of Attorney


 


Section 4.1           Contract
Administration. The Services shall include negotiating, administering and terminating contracts,
by and on behalf of the Owner, in the ordinary course of Business, but in all cases in compliance with the Budget. All such contracts
shall be executed by the Manager in the name of the Owner, pursuant to the power of attorney granted herein.


 


Section 4.2           Purchases
for the Owner. The day-to-day operations and management of the Owner’s Business shall
include the purchase (or lease) of such equipment, supplies and other goods necessary for the efficient operation of the Owner’s
Business and as shall be consistent with the Budget. Purchases shall be made only at reasonable costs.


 


Section 4.3           Affiliate
Transactions. The Manager shall not make or cause the Owner to make any contract (other than
an Operating Agreement as provided herein) with or purchase or sell goods or services from or to the Manager or any Affiliate of
the Manager, unless such contract or purchase or sale is specifically identified as an Affiliate transaction in the Budget, or
with the prior written approval of Owner. Nothing in this Section 4.3 shall be construed to limit or restrict the right
of the Manager to engage, or require Owner’s prior approval of the engagement by Manager of, any Affiliate of Manager to
perform any of the Services on behalf of the Manager so long as the Affiliate of Manager is not entitled to any payment by Owner
for providing such Services.


 




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Section 4.4           Power
of Attorney. (a) By execution of this Agreement, the Owner does hereby make, constitute and
appoint the Manager, and its successors, with full power of substitution, as its true and lawful attorney and agent with full power
and authority in its name, place and stead to execute, swear to, acknowledge, deliver, file, record in the appropriate public offices
and publish any and all contracts, agreements, instruments, conveyances, mortgages, deeds, notes and other documents of any kind
or nature related to, arising out of or in connection with the Manager's performance of this Agreement.


 


(b)          During
the Term of this Agreement, the power of attorney granted in this Section 4.4 shall survive the Bankruptcy, dissolution
or other termination of the Owner, shall extend and be binding upon the Owner's successors and assigns and shall continue in full
force and effect regardless of the occurrence of any of the foregoing. The Owner hereby agrees to be bound by any such contracts,
agreements, instruments, conveyances, mortgages, deeds, notes and other documents executed or otherwise entered into by the attorney
and agent acting in good faith pursuant hereto and pursuant to such power of attorney, and hereby waives any and all defenses that
may be available to contest, negate, or disaffirm any action of the attorney and agent taken under such power of attorney, except
in cases of bad faith, gross negligence, willful misconduct or material breach of this Agreement.


 


ARTICLE
V

Compensation and Expenses


 


Section
5.1           Management Fee. In consideration for the
performance by the Manager of Management Services, Owner shall pay to the Manager monthly, in advance, an amount rounded to
the nearest $10.00 (such amount, the “Monthly Management Fee”), which amount is equal to the
product of (a) until and including the Calendar Month of termination of the Offering, 0.291667%, and thereafter, 0.333333%,
times (b) the sum of (i) the Gross Proceeds determined as of the last day of the preceding Calendar Month and (ii) the
average outstanding indebtedness of AECP LP (determined on a consolidated basis) during the preceding Calendar Month. A
Monthly Management Fee shall not be payable for any period prior to the Initial Closing. On or before the 20th day of the
Calendar Month immediately preceding the Calendar Month in which the Management Services are to be provided, the Manager
shall furnish to Owner in writing its calculation of the Monthly Management Fee that is payable in respect of the next
succeeding Calendar Month. The Monthly Management Fee payable to the Manager by Owner will be in addition to all fixed rate
charges under any joint operating agreements in which the Manager or its Affiliates act as operator and the Owner owns a
working interest. Each Calendar Month after the Initial Closing and prior to the end of the Term, the Manager will deliver,
together with its calculation of the Monthly Management Fee to be paid by Owner for the succeeding Calendar Month as provided
in the second preceding sentence, a summary of the costs and expenses to be reimbursed to the Manager in accordance with the
immediately preceding sentence (each such written calculation and summary, an “Invoice”). At any
time that is not less than ten (10) days following the date that Owner receives an Invoice, the Manager may apply any funds
that it holds on behalf of Owner to payment of the amount specified in the Invoice less any amount(s) to which Owner has
reasonably objected in writing during such 10-day period. If the Owner timely objects to any amount in an Invoice, Owner and
Manager shall use their reasonable commercial efforts to resolve such dispute amicably, and promptly after the resolution of
such matter Manager may apply any funds that it holds on behalf of Owner to payment of the amount determined to be owing to
the Manager. If the funds that the Manager holds on behalf of Owner are insufficient to pay in full when due the amounts due
to the Manager pursuant to this Section 5.1, then Owner will promptly make payment to the Manager of the amount
due and unpaid in immediately available funds by wire transfer to an account specified by the Manager to Owner. Pursuant to
Section 7.2(i) of the Partnership Agreement, AECP LP will pay to AECP GP a management fee commencing with a payment for the
first Calendar Month after termination of the Offering, which fee shall be payable in cash monthly after termination of the
Offering concurrently with payment by Owner to the Manager of the Monthly Management Fee pursuant to this Section
5.1 and shall be in an amount equal to the product of (a) 0.083333% times (b) the Gross Proceeds determined as of the
last day of the preceding month.


 






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Section 5.2           Reimbursement
of Organization and Offering Expenses; Reimbursement of Out-of-Pocket Expenses. (a) The Manager and the General Partner expect
that Organization and Offering Expenses, including Organization and Offering Expenses consisting of fees and expenses paid to third
parties, that they incur on behalf of the Partnership and the Owner will be incurred in a ratio approximately one-third (1/3rd)
by the Manager and two-thirds (2/3rds) by the General Partner, and if such ratio is not maintained then the Manager and the General
Partner will take such actions prior to the Initial Closing or any subsequent closing of the Offering, as the case may be, as may
be necessary to return to such ratio with respect to the Organization and Offering Expenses as of each of the Initial Closing and
each subsequent closing. At or promptly after (in any event not later than five (5) Business Days after) the Initial Closing and
each subsequent closing of the issuance of Common Units in the Offering, (i) the Manager will determine the total Organization
and Offering Expenses it has incurred prior to such closing that have not been previously reimbursed by AECP LP or the Owner and
will prepare and submit to AECP LP an invoice therefor accompanied by reasonable supporting documentation; and (ii) AECP LP or
the Owner will promptly reimburse the Manager for the amount specified in such invoice subject to a maximum reimbursement amount
of one-half percent (0.5%) of the Gross Proceeds for all Common Units issued in the Initial Closing and each such subsequent closing
of the Offering. The Organization and Offering Expenses to be reimbursed by AECP LP or the Owner to the Manager shall not exceed
one-half percent (0.5%) of the aggregate Gross Proceeds raised in the Offering (such maximum amount, the “Expense Cap”).
To the extent that the Manager incurs Organization and Offering Expenses in excess of the Expense, the Manager shall not be reimbursed
for such expenses. Amounts required to be paid by AECP LP and the Owner pursuant to this Section 5.2(a) at the Initial Closing
and each subsequent closing of the Offering are referred to as the “OrgOff Reimbursement Amount”.


 


(b)          Except
as set forth in this Section 5.2, in no event will the Manager be entitled to reimbursement from AECP LP or the Owner, nor
will AECP LP or the Owner be obligated to reimburse the Manager, for any Organization and Offering Expenses incurred by the Manager
and its Affiliates. The Manager may apply any funds that it holds on behalf of AECP LP or the Owner to payment of the OrgOff Reimbursement
Amount then due to the Manager pursuant to this Section 5.2(a), but if the funds that the Manager holds on behalf of AECP
LP or the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.2,
then AECP LP or the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds
by wire transfer to an account specified by the Manager to AECP LP or the Owner. The OrgOff Reimbursement Amount that is payable
to the Manager by AECP LP or the Owner pursuant to Section 5.2(a) will be in addition to all fixed rate charges under any
joint operating agreements in which the Manager or its Affiliates act as operator and the Owner owns a working interest. Pursuant
to the Partnership Agreement, AECP LP will reimburse AECP GP at or promptly after the Initial Closing and each subsequent closing
of the issuance of Common Units in the Offering for the Organization and Offering Expenses it incurs up to a maximum of one percent
(1.0%) of the Gross Proceeds raised in the Offering, which reimbursement shall be made concurrently with each payment to the Manager
of the OrgOff Reimbursement Amount.


 




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(c)          The
Manager shall pay all reasonable out-of-pocket expenses (excluding for purposes of this Section 5.2 Organization and Offering
Expenses, Acquisition Expenses and Disposition Expenses) of the Manager and its Affiliates, agents and consultants (“Out-of-Pocket
Expenses”), pursuant to the policies and procedures established by the Manager and approved by the Owner and in accordance
with the Budget, and consistent with the allocations set forth in Exhibit C hereto, for the payment or reimbursement of
such costs with respect to activities conducted for the Owner pursuant to this Agreement. The Owner shall reimburse the Manager
for all such Out-of-Pocket Expenses paid by the Manager on behalf of the Owner or in connection with the Business of the Owner
and for which the Manager has not been previously reimbursed, and on or before the 20th day after each Calendar Month in which
the Manager incurs Out-of Pocket Expenses the Manager will invoice the Owner for such Out-of Pocket Expenses incurred during the
preceding month accompanied by reasonable supporting detail. At any time that is not less than ten (10) days following the date
that Owner receives an invoice for Out-of-Pocket Expenses pursuant to this Section 5.2(b), the Manager may apply any funds
that it holds on behalf of Owner to payment of the amount specified in such invoice less any amount(s) to which Owner has reasonably
objected in writing during such 10-day period. If the Owner timely objects to any amount in any such invoice, Owner and Manager
shall use their reasonable commercial efforts to resolve such dispute amicably, and promptly after the resolution of such matter
the Manager may apply any funds that it holds on behalf of Owner to payment of the amount determined to be owing to the Manager.
If the funds that the Manager holds on behalf of Owner are insufficient to pay in full when due the amounts due to the Manager
pursuant to this Section 5.2(b), then Owner will promptly make payment to the Manager of the amount due and unpaid in immediately
available funds by wire transfer to an account specified by the Manager to Owner. Any amounts payable to the Manager by Owner pursuant
to this Section 5.2(b) will be in addition to all fixed rate charges under any joint operating agreements in which the Manager
or its Affiliates act as operator and the Owner owns a working interest.


 




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Section 5.3           Acquisition
Fee and Acquisition Expenses. The Owner shall pay an Acquisition Fee to the Manager as compensation for its Management Services
rendered in connection with the investigation, selection and acquisition (by purchase, contribution, investment or exchange) of
any Property Acquisition. The Manager shall be entitled to an Acquisition Fee for any Property Acquisition acquired after the termination
of this Agreement for which a contract for any such Property Acquisition had been entered into at or prior to such termination.
The total acquisition fee (the “Acquisition Fee”) payable to the Manager for each Property Acquisition
shall equal two percent (2.0%) of the Contract Purchase Price of each Property Acquisition, payable in cash. The purchase price
allocable for an Investment held through a Joint Venture shall equal the product of (i) the Contract Purchase Price of the Property
Acquisition and (ii) the direct or indirect ownership percentage in the Joint Venture held directly or indirectly by AECP LP or
the Owner. For purposes of this Section 5.3, “ownership percentage” shall be the percentage of capital stock,
membership interest, partnership interest or other equity interests held by the AECP LP or the Owner, without regard to classification
of such equity interests. Owner shall pay to the Manager the Acquisition Fee promptly upon the closing of each Property Acquisition,
unless Owner and the Manger mutually agree the defer payment of such Acquisition Fee in respect of any Property Acquisition, in
which event it shall be paid in accordance with such mutual agreement. In addition to the Acquisition Fee payable to the Manager
pursuant to this Section 5.3, AECP LP or the Owner shall pay directly or reimburse the Manager for all Acquisition Expenses
incurred in connection with the selection, evaluation, acquisition, origination, making or development of any Property Acquisition;
provided, however, in no event shall the sum of the Acquisition Fee and the Acquisition Expenses required to be paid
or reimbursed by AECP LP or the Owner pursuant to this Section 5.3 in respect of any Property Acquisition exceed three percent
(3.0%) of the Contract Purchase Price of such Property Acquisition. AECP LP or the Owner shall pay the Acquisition Fee and reimburse
the Manager for Acquisition Expenses payable pursuant to this Section 5.3 within ten (10) days following each date AECP
LP or the Owner receives an invoice for the amount of the Acquisition Fee payable and Acquisition Expenses reimbursable to the
Manager pursuant to this Section 5.3, provided that such invoice shall be furnished no earlier than two (2) Business Days
before the closing of any Property Acquisition or, in the case of Acquisition Expenses in respect of any proposed acquisition that
has been unsuccessful, the cessation of the efforts by AECP LP or the Owner to acquire such Property Acquisition; subject, however,
to any mutual agreement by Owner and the Manager to defer payment of the Acquisition Fee in respect of any Property Acquisition.
The Manager may apply any funds that it holds on behalf of the Owner to payment of the amount specified in such invoice less any
amount(s) to which the Owner has reasonably objected in writing during the 10-day period commencing on receipt of such invoice.
If the Owner timely objects to any amount in any such invoice, the Owner and the Manager shall use their reasonable commercial
efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any funds that
it holds on behalf of the Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager holds
on behalf of the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.3,
then the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds by wire transfer
to an account specified by the Manager to the Owner. Any amounts payable to the Manager by the Owner pursuant to this Section
5.3 will be in addition to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates
act as operator and the Owner owns a working interest.


 




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Section 5.4           Disposition
Fee and Disposition Expenses. As compensation to the Manager for its Management Services rendered in connection with the sale
or other disposition by AECP LP or the Owner of all or any portion of the Assets (other than the sale or other disposition in the
ordinary course of business of oil, gas or other hydrocarbons produced from the Assets), the Owner shall pay to the Manager the
Disposition Fee. The Manager shall be entitled to a Disposition Fee for any Asset(s) sold or otherwise disposed of by AECP LP or
the Owner after such termination for which the applicable contract(s) to sell or otherwise dispose of such Asset had been entered
into at or prior to such termination date. The total disposition fee (“Disposition Fee”) payable in cash
to the Manager shall equal one-half percent (0.5%) of the Contract Sales Price of such Asset(s). In addition to the Disposition
Fee payable to the Manager pursuant to this Section 5.4, AECP LP or the Owner shall pay directly or reimburse the Manager
for all Disposition Expenses incurred in connection with the any sale or other disposition or proposed sale or other disposition.
AECP LP or the Owner shall pay the Disposition Fee and reimburse the Manager for the Disposition Expenses payable pursuant to this
Section 5.4 in connection with the sale or disposition of Assets within ten (10) days following each date AECP LP or the
Owner receives an invoice for the amount of the Disposition Fee so payable to the Manager pursuant to this Section 5.4,
which invoice shall be furnished in connection with the closing of any sale or other disposition or, in the case of Disposition
Expenses in respect of any sale or other disposition that has been unsuccessful, the cessation of the efforts to sell or otherwise
dispose of the applicable Asset(s); provided, however, that if Owner and the Manager mutually agree to defer payment
of the Disposition Fee in respect of the sale of any Assets such Disposition Fee shall be paid in accordance with such mutual agreement.
The Manager may apply any funds that it holds on behalf of the Owner to payment of the amount specified in such invoice less any
amount(s) to which the Owner has reasonably objected in writing during the 10-day period commencing on receipt of such invoice.
If the Owner timely objects to any amount in any such invoice, the Owner and the Manager shall use their reasonable commercial
efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any funds that
it holds on behalf of the Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager holds
on behalf of the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.4,
then the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds by wire transfer
to an account specified by the Manager to the Owner. Any amounts payable to the Manager by the Owner pursuant to this Section
5.4 will be in addition to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates
act as operator and the Owner owns a working interest. Notwithstanding anything to the contrary in this Section 5.4, in
no event shall any Disposition Fee be payable by AECP LP or the Owner pursuant to this Section 5.4 in connection with the
sale or exchange in the ordinary course of business by AECP LP or the Manager of oil, natural gas or other hydrocarbons produced
from the Assets. Pursuant to the Partnership Agreement, AECP LP will pay to AECP GP a disposition fee in connection with the sale
or other disposition by AECP LP or the Owner of all or any portion of the Assets (other than the sale or other disposition in the
ordinary course of business of oil, gas or other hydrocarbons produced from the Assets), which fee shall be payable in cash concurrently
with payment by the Owner to the Manager of the Disposition Fee pursuant to this Section 5.4 in respect of such disposition
of Asset(s) and shall be in an amount equal to one-half percent (0.5%) of the Contract Sales Price of such Asset(s).


 




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Section 5.5           Financing
Coordination Fee. As compensation to the Manager for its Management Services rendered in connection with the financing by AECP
LP or the Owner of any Property Acquisition or Asset, the assumption by AECP LP or the Owner of any Loan(s) with respect to any
Property Acquisition or Asset or refinancing by AECP LP or the Owner of any Loan, the Owner shall pay the Manager a fee, payable
in cash (the “Financing Coordination Fee”), equal to one-half percent (0.5%) of the principal account
incurred by AECP LP or the Owner, as the case may be, or outstanding under any such Loan. AECP LP or the Owner shall pay the Financing
Coordination Fee payable pursuant to this Section 5.5 at or promptly after (and in any event within two (2) Business Days
after) the closing of the Loan that is the subject of the Financing Coordination Fee then due or each draw down by the Partnership
of any principal amount of any Loan, as the case may be; provided, however, that if Owner and the Manager mutually
agree to defer payment of any Financing Coordination Fee, then such Financing Coordination Fee shall be paid in accordance with
such mutual agreement. The Manager may apply any funds that it holds on behalf of Owner to payment of the amount of any Financing
Coordination Fee then due and payable to the Manager pursuant to this Section 5.5 less any amount(s) to which Owner
has reasonably objected in writing prior to the closing of the Loan that is the subject of the applicable Financing Coordination
Fee. If the Owner timely objects to any amount of any Financing Coordination Fee, Owner and Manager shall use their reasonable
commercial efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any
funds that it holds on behalf of Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager
holds on behalf of Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.5,
then Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds by wire transfer
to an account specified by the Manager to Owner. Any amounts payable to the Manager by Owner pursuant to this Section 5.5
will be in addition to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates act as
operator and the Owner owns a working interest. Pursuant to the Partnership Agreement, AECP LP will pay to AECP GP a financing
coordination fee in connection with the financing by AECP LP or the Owner of any Property Acquisition or Asset, the assumption
by AECP LP or the Owner of any Loan(s) with respect to any Property Acquisition or Asset or refinancing by AECP LP or the Owner
of any Loan, which fee shall be payable in cash concurrently with payment by Owner to the Manager of the Financing Coordination
Fee pursuant to this Section 5.5 in respect of such financing transaction and shall be in an amount equal to one-quarter
percent (0.25%) of the principal account incurred by AECP LP or the Owner, as the case may be, or outstanding under any such Loan.


 


ARTICLE
VI

Representations, Warranties and Covenants


 


The Manager represents,
warrants and covenants to the Owner and AECP LP as follows:


 


(a)          Organization,
Good Standing, Etc. The Manager is a limited liability company duly formed, validly existing and in good standing under the
laws of the State of Oklahoma. Before commencing operations in any State where Leases are located the Manager will be duly qualified
and/or licensed to the extent and as may be required, and in good standing in such State.


 


(b)          Authority;
Enforceable Agreement. The Manager has taken all necessary action to authorize the execution, delivery and performance of this
Agreement and has adequate power, authority and legal right to enter into, execute, deliver and perform this Agreement. This Agreement
is legal, valid and binding with respect to the Manager and is enforceable in accordance with its terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally.


 


(c)          Legal
Requirements. The Manager has, or before commencing activities in any State or other jurisdiction will have, all requisite
power, approvals, authorizations, consents, licenses, orders, franchises, rights, registrations and permits of all Governmental
Authorities of such State or other jurisdiction required for the Manager to provide the Management Services in such jurisdiction;
each of the foregoing is or will be in full force and effect and has been duly and validly issued; and at the time Management Services
are performed the Manager will be in compliance in all material respects with all terms and conditions of each of the foregoing.


 




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(d)          No
Consent. No permit, consent, approval, authorization or order of, and no notice to or filing with, any Governmental Authority
or third party is required in connection with the execution, delivery or performance by the Manager of this Agreement or to consummate
any transactions contemplated hereby and thereby.


 


(e)          Manager’s Activities During the Term. The Manager covenants and agrees
that during the Term (excluding any period after a Termination Notice has been received by Manager as contemplated by Section 10.2(a)
during which the Manager performs transition services in accordance with Section 10.3) the Manager’s business and activities
will be limited to serving as the manager pursuant to this Agreement and activities ancillary thereto; provided, however,
that the foregoing covenant is not intended, nor shall it be construed, to restrict or limit the Manager’s ability to serve
as a manager or in a similar capacity pursuant to a management services or similar agreement to one or more partnerships or other
entities that may be formed after the Effective Date by, or that is affiliated with, AR Capital, LLC, AR Capital Energy Holdings,
LLC or any of their affiliates to acquire, own, operate, develop or dispose of oil and gas properties.


 




  


 


ARTICLE
VII

Additional Agreements of Manager; Restrictions on Manager


 


Section 7.1           Compliance
with Laws. In the performance of Services pursuant to this Agreement, the Manager shall comply
in all material respects with applicable Law relative to the use, operation, development and maintenance of the Business and the
Assets. The Manager shall use its reasonable commercial efforts to remedy any violation of any such applicable Law that comes to
its attention. The Manager shall promptly notify the Owner of any material violation of applicable Law in the performance of the
Services pursuant to this Agreement, and the Manager shall transmit promptly to the Owner a copy of any citation or other communication
received by the Manager setting forth any such violation.


 


Section 7.2           Compliance
with Obligations. The Manager, to the extent such matters are reasonably within its control,
shall use diligent and reasonable efforts to cause compliance in all material respects with all terms and conditions contained
in any contract, agreement, judicial, administrative or governmental order, law or ruling, lease, mortgage, deed of trust or other
contractual or security instrument affecting the Business or any of the Assets; provided, however, that, except as otherwise
set forth herein, the Manager shall not be required to make any payment or incur any liability on account thereof. The Manager
shall promptly notify the Owner in writing of any material violation of any such instrument or agreement in any material respect.


 


Section 7.3           Prohibited
Acts. Notwithstanding anything to the contrary, express or implied, in this Agreement, without
the consent of Owner the Manager shall not:


 


(a)          Affect
Title. Other than by way of a pledge, mortgage, deed of trust or trust indenture in connection with the terms of an Approved
Credit Facility or a farmout, joint operating agreement, participation agreement or other similar arrangement, sell, assign, surrender
or relinquish, farm out, encumber, hypothecate, mortgage, burden, or otherwise alter or impair the Owner’s title in, to,
or under, or that may be derived from, any of the Assets, or take any act that has the natural and foreseeable consequence of causing
any of the foregoing. The prohibition in the immediately preceding sentence does not apply, however, to any loss, alteration, or
impairment of title resulting (i) from the abandonment of any well, cessation of operations, non-commencement of the drilling of
any well or any other operations, or non-payment of delay rentals, advance royalties, shut-in well payments, or any other payments
when done with the Owner’s written consent or in accordance with the other terms of this Agreement; (ii) by virtue of
the non-consent, non-participation, or non-performance of any Third Party under any Operating Agreement; (iii) from the pooling,
unitization, or communitization of all or any part of the Owner’s interest in a property; (iv) from the sale or disposition
of worn out or obsolete equipment or spare parts; (v) from the sale of natural gas, crude oil, natural gas liquids, condensate,
other products and other hydrocarbons produced from the Assets; or (vi) from causes or circumstances beyond Manager's reasonable
control.


 




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(b)          Borrow
Funds. Except in accordance with Section 7.4, borrow any funds on behalf of the Owner (other than trade accounts payable
in the ordinary course of business).


 


(c)          Litigation
Matters. (i) Except for the filing or prosecution of any lawsuits for the collection of any monies owed to the Owner in the
ordinary course of business, file or prosecute any lawsuit, or (ii) confess any judgment or compromise or settle any pending,
threatened, or asserted claim or litigation, in each case with respect to or on behalf of the Owner or any of the Assets.


 


(d)          Resign
as Operator. Resign as Operator of any operated Asset except in accordance with this Agreement.


 


(e)          Tax
Status. Take any action which would cause the Owner not to be classified and treated as a partnership (and not as an association)
for federal income tax purposes.


 


(f)          Approved
Credit Facility. Amend or waive any provision of the Approved Credit Facility or take any actions which would result in a default
by the Owner under an Approved Credit Facility (but the foregoing shall not be construed to require the expenditure of any funds
by the Manager).


 


(g)          Expenditures.
Except in accordance with Article III, Section 4.3, and Article V, Section 7.1, Section 7.2
or Section 7.4, make or approve any expenditure for the Owner’s account, or obligate the Owner to make any expenditure,
other than for operating expenses (including any Operating Agreement then in effect) made pursuant to operating agreements covering
the Owner’s Assets or as provided in the Budget.


 


(h)          Activities;
Budget. Conduct for the Owner’s account, or consent to or obligate the Owner, to engage in any activity, other than an
activity provided for in the approved Budget or determined by the Manager to be required in connection with an Emergency.


 


(i)          Acquisitions
and Joint Ventures. Cause or obligate the Owner to enter into any business combination transaction, including any merger, consolidation,
equity exchange, acquisition, sale joint venture, partnership or similar arrangement, or acquire any assets (including any Property
Acquisition(s)), properties or rights, including leasehold and working interests.


 


(j)          Hedging.
Cause the Owner to adopt, revise or waive compliance with, the Hedging Policy, or cause the Owner to enter into or become obligated
under any Hedges that are not in accordance with the Hedging Policy.


 


(k)          Material
Commitment. Enter into any contract or agreement on behalf the Owner, or otherwise obligate the Owner under any contract or
agreement, that would reasonably be expected to constitute a Material Commitment.


 




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(l)          Affiliate
Transactions. Except in compliance with Section 4.3, cause the Owner to enter into any contract or other arrangement
or transaction with the Manager or an Affiliate of the Manager.


 


(m)          Amendment
to Agreements; Waiver of Rights. Cause the Owner to enter into or replace or amend, modify or restate or supplement in a manner
adverse to the Owner in any material respect, or cause the Owner to waive or fail to enforce on behalf of the Owner any material
rights of the Owner under, any participation, joint venture, operating, area of mutual interest or other similar agreement to which
the Owner is a party (provided that the restriction set forth in this clause (m) shall not apply to any extension or termination
of any agreement in accordance with its terms).


 


(n)          Certain
Non-Consent Activities. Cause the Owner to make any election or exercise any vote, or cause the Owner not to exercise any vote,
that has the effect of causing the Owner to not participate in any Development Activities or other activities or operations under
an Operating Agreement in which the Manager or an Affiliate of the Manager owns a working interest, unless the Manager or such
Affiliate also declines to participate in such activity or operations, unless Owner’s election or exercise of, or failure
to elect or exercise, any such vote is a result of Owner’s voluntary election or Owner’s inability or refusal to fund
the cost of the applicable Development Activities or other activities or operation, as the case may be, in which event neither
Manager nor any Affiliate shall be required to decline to participate in such activity in respect of its working interest therein.


 


(o)          Directed
Activities. Take on behalf of the Owner or cause the Owner to take any action or commit to any action that is contrary to the
good faith reasonable instructions of the Owner, provided that the foregoing shall not be construed to require the Manager to take
any action in violation of applicable Law or to incur any cost or liability that will not be reimbursed or assumed by the Owner.


 


Section 7.4           Emergencies.
Notwithstanding anything to the contrary in this Agreement, if Manager reasonably believes there is any Emergency, Manager
may, in the sole exercise of its discretion and at Owner’s expense, act for and on behalf of Owner in any manner reasonably
necessary or useful under the circumstances without the necessity of giving prior notice to the Owner or receiving any approval
or consent from the Owner. If Manager takes any such action pursuant to this Section 7.4, Manager shall promptly notify
the Owner of such Emergency and of the actions and/or expenditures approved by Manager as soon thereafter as is reasonably practicable.


 


Section 7.5           Manager’s
Insurance. The Manager shall at all times maintain the insurance coverage described on Exhibit B with financially sound
and reputable insurance companies, together with any other insurance that the Manager generally provides or extends to its subsidiaries.
During the Term of this Agreement, the Manager will, subject to reimbursement by the Owner for the incremental cost thereof, take
the actions necessary to cause the Owner to be Insured, under the insurance policies described, and as indicated, in Exhibit
B. As used herein, the term “Insured” means the Owner will be (i) a named insured to the extent
possible, (ii) in the case of workers’ compensation, named as an alternate employer, or (iii) an additional insured in all
other cases; provided, however, that the Manager will take reasonable commercial efforts to provide for endorsement
of the Owner as a named insured under each policy described in Exhibit B.


 






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ARTICLE
VIII

Personnel Administration


 


Section 8.1           General.
The Manager shall have in its employ or available to it during the Term of Agreement a sufficient number of qualified technical,
operating, land, financial, marketing, accounting, clerical, administrative and field Employees, and other personnel to enable
it to supply all the services as herein provided.


 


Section 8.2           Responsibility.
All matters pertaining to the employment, supervision compensation, promotion and discharge of any Employees or personnel
of the Manager or its Affiliates are the responsibility of the Manager, which is (or its Affiliate is) in all respects
the employer of any such Employees. All such employment arrangements are solely the concern of the Manager and, if applicable,
its Affiliate(s) and, other than as expressly set forth in Exhibit B hereto, the Owner shall have no liability with
respect thereto.


 


ARTICLE
IX

Investment Opportunities


 


Section 9.1           Investment
Opportunities.


 


(a)          Commensurate
with the Gross Proceeds raised by AECP LP from time to time that have not been previously invested in Property Acquisitions or
reserved for Development Activities or other investment in any of the Assets or the payment of fees or expenses pursuant to this
Agreement or the Partnership Agreement, the Manager shall offer to Owner the right to purchase any Property Acquisition that (i)
the Manager identifies in accordance with the performance of Item 14 of its Management Services as described in Exhibit
A or that otherwise becomes available to the Manager and (ii) which the Manager believes may be appropriate for the Owner.


 


(b)          The
Manager shall offer to the Owner any Property Acquisition referred to in Section 9.1(a) in accordance with the terms of
Section 9.1(c). Upon receipt of any Proposal, Owner shall decide in accordance with Section 9.1(d) whether or not
to approve the Property Acquisition that is the subject of such Proposal. If Owner determines not to approve or otherwise fails
to approve such Property Acquisition within five (5) Business Days after the Owner’s receipt of a Proposal (a “Rejected
Proposal”), then the Manager or any of its Affiliates may pursue and, if successful in such pursuit, participate
in such Property Acquisition.


 




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(c)          If
the Manager proposes to refer a Property Acquisition or other acquisition of oil and gas properties to the Owner, the Manager shall
submit a written report (“Proposal”) to Owner for its consideration. Such Proposal shall be in the form
or format that the Manager generally uses, or will have used when presenting any such Property Acquisition or other acquisition
of oil and gas properties to Owner and shall contain the Economic Run for the Property Acquisition or other acquisition of oil
and gas properties, the initial Budget or any revisions to the Budget as provided in Section 9.2, and all other information
determined by the Manager or requested by Owner as necessary or appropriate to describe the terms, economics, oil and gas reserve
information, and other information requested by Owner as necessary or appropriate to evaluate and consider the Proposal. Additionally,
if the Manager or an Affiliate of the Manager has an existing economic interest in more than 5% of the properties that are the
subject of the Proposal, the Manager shall disclose this fact to Owner in the Proposal. Information submitted to Owner in the Proposal
shall include, without limitation, the Economic Run data with respect to the acquisition that is the subject of the Proposal authorization(s)
for expenditure, budgeting information, a recommendation with respect to the amount of indebtedness to be incurred pursuant to
the Approved Credit Facility, key terms related to such Proposal, including, without limitation, whether such terms deviate or,
to Manager’s knowledge, are expected to deviate from the General Parameters, if applicable, and any other available information
determined by the Manager to be relevant to Owner’s investment decision or requested by Owner. In addition, if the Seller of a proposed Property Acquisition that is the subject of a Proposal is an
Affiliate(s) of the Manager, the offer price for the acquisition by the Owner of such Property Acquisition from such Affiliate(s)
shall not exceed the lesser of (i) the costs incurred by such Affiliate(s) to acquire, own, operate and develop such Property Acquisition
(which shall be supported by reasonable documentation included in the Proposal) or (ii) the fair market value of such Property
Acquisition as determined by mutual agreement of the Manager and Owner in such manner as the Manager and Owner mutually determine
to be appropriate under the circumstances.


 


(d)          Upon
receipt of a Proposal, Owner shall have five (5) Business Days to notify the Manager of Owner’s intent to make the Property
Acquisition as described in the Proposal. If Owner does not provide such notice to the Manager within such time, Owner shall be
deemed to have rejected the Property Acquisition that is the subject of the Proposal and such Proposal shall thereafter constitute
a Rejected Proposal.


 


Section 9.2           Initial
Budget; Revisions to Budget.


 


(a)          Initial
Budget. In connection with the first Property Acquisition, the Manager shall prepare a Draft Budget for operation of the properties
proposed to be acquired and submit such Draft Budget to Owner with the Proposal as contemplated by Section 9.1. If the Owner
approves the Property Acquisition, Owner shall be deemed to have approved the Draft Budget and such Draft Budget shall then constitute
the approved Budget as contemplated by Section 3.1.


 


(b)          Revised
Budgets. In connection with each Property Acquisition following the first Property Acquisition, the Manager may prepare an
amendment to the then existing approved Budget to reflect the additional costs and expenses associated with the ownership of the
Assets proposed to be acquired and submit such proposed revision to the Owner as contemplated by Section 9.1. If the Owner
approves the Property Acquisition, Owner shall be deemed to have approved the revision to the Budget and such revised Budget shall
then constitute the approved Budget as contemplated by Section 3.2.


 


ARTICLE
X

Term; Termination


 


Section 10.1         Term.
The initial term of this Agreement will begin on the Effective Date and, subject to earlier termination in accordance with Section
10.2, shall continue for so long as the Owner holds any Assets (the “Initial Term”), and so long
after the Initial Term as the Parties may mutually agree; provided, however, that following the Initial Term, either
Party may terminate this Agreement upon not less than 30 days’ prior written notice to the other (the Initial Term together
with any such extension thereafter, the “Term”). Except as expressly provided herein, the expiration
or earlier termination of this Agreement shall not relieve any Party of any obligation or liability arising prior to such expiration
or termination.


 




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Section 10.2         Termination.


 


(a)          This
Agreement shall terminate (the “Termination Date”) on the first to occur of (i) the date on which
the Parties mutually agree to terminate this Agreement and (ii) the termination date set forth on any notice given in accordance
with Section 10.2(b) or Section 10.2(c) (each, a “Termination Notice”). Each Termination
Notice shall be provided in writing and set forth in reasonable detail the basis for the termination and the Termination Date.
If requested by Owner, the Manager, following its receipt of a Termination Notice, shall continue to perform the Services in accordance
with this Agreement for a period not to exceed 120 days of such notice and, in such event, the date on which such continued Services
are no longer necessary (as specified by Owner in the Termination Notice) will be considered the Termination Date for purposes
hereof.


 


(b)          Owner
may terminate this Agreement by delivery of a Termination Notice to the Manager following the occurrence of any of the following
events:


 


		(i)	the dissolution and liquidation of AECP LP in connection
with the sale of all or substantially all of the Owner’s assets;



 


		(ii)	during the Bankruptcy of the Manager;



 


		(iii)	at any time during the 30 days after a breach by the
Manager of its obligations hereunder that has had or, if continued, is reasonably likely to have a Material Adverse Effect, which
breach remains uncured 60 days following the receipt by the Manager of written notice of such breach by the Owner;



 


		(iv)	at any time within 15 Business Days following (A) the
determination by a court of competent jurisdiction that the Manager has defrauded AECP LP or Owner or stolen or misappropriated
any of the Assets or funds of Owner and (B) such circumstances have not been cured or remedied (which may include a cash payment)
by Manager within 30 days following such judicial determination; or



 


		(v)	the General Partner is removed as the general partner
of AECP LP by the majority vote of the Common Units and the General Partner did not vote in favor of or otherwise approve such
removal.



 


(c)          The
Manager may terminate this Agreement by delivery of a Termination Notice to Owner (i) during or following the Bankruptcy of the
Owner or (ii) upon a material breach by Owner of its obligations hereunder that remains uncured 30 days following the receipt by
Owner of notice of such breach by the Manager.


 




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Section 10.3         Transition
Services. The Manager shall, until the Termination Date, continue to provide the Management Services in accordance with this
Agreement and upon request from Owner will reasonably cooperate with Owner in the transition of such services to a new manager
appointed by Owner by (i) turning over Owner’s books and records and any other relevant information reasonably requested
of the Manager, (ii) if applicable, assigning to Owner all of the Manager’s rights under subcontracts and other contractual
arrangements entered into by the Manager in connection with the performance of the Services and (iii) facilitating the transfer
of Well operations and the management of the Owner’s Assets to the successor manager. At the end of the Term, the Manager
shall deliver to Owner the Records. Following the termination of this Agreement, Owner shall have the right to appoint any other
Person as manager to perform the Management Services by whatever method Owner may deem expedient or appropriate. Following the
termination of this Agreement, the Manager shall have no further rights under this Agreement (except as provided in Section
10.4) and shall not be entitled to receive any further payments under this Agreement.


 


Section 10.4         Effect
of Termination. The termination of this Agreement shall not relieve any Party from any expense, liability or other obligation
or remedy therefor that has accrued or attached prior to the Termination Date and the following provisions of this Agreement shall
survive such termination: this Section 10.4, each of the indemnity obligations, the limitation on consequential and other
damages under this Section 12.4 and the provisions of Article XII, which provisions shall survive indefinitely. To
the extent this Agreement is terminated by the Owner pursuant to Section 10.2(b)(iv) hereof, then pursuant to Section 5.8 of the
Partnership Agreement, Holdings shall forfeit any incentive distribution rights it holds as of the date of such termination.


 


ARTICLE
XI

Indemnification; Liability of the Parties


 


Section 11.1         Indemnification.
From and after the Effective Date, the Parties will indemnify each other as follows:


 


(a)          Owner
Indemnification. The Owner shall indemnify, defend, reimburse and hold harmless the Manager and its Affiliates and their respective
officers, managers, representatives, agents, members, employees (together with the Manager, the “Manager Indemnified
Parties”) from and against and in respect of any and all claims, liabilities, losses, costs, expenses (including
reasonable attorneys’ fees and costs of investigation) or damages (collectively, “Liabilities”)
incurred or suffered by a Manager Indemnified Party in connection with, arising out of, or relating to, directly or indirectly,
its performance of the Management Services and or Operating Services hereunder, EVEN IF SUCH LIABILITIES AROSE IN WHOLE OR IN PART
FROM THE ACTIVE, PASSIVE, SOLE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF A MANAGER INDEMNIFIED PARTY, except
that such indemnity will not apply in cases in which any such Liabilities are determined by a final and non-appealable judgment
of a court of competent jurisdiction to have resulted from the gross negligence, or intentional misconduct of the Manager or any
other Manager Indemnified Party.


 


(b)          Manager
Indemnification. The Manager shall indemnify, defend and hold harmless AECP GP, AECP LP, the Owner, its Subsidiaries and Affiliates
and their respective officers, directors, representatives, agents, members and employees (collectively, “Owner Indemnified
Parties”) from and against and in respect of any and all Liabilities incurred or suffered by (a) an Owner Indemnified
Party in connection with, arising out of, or relating to, the gross negligence, reckless or intentional misconduct of the Manager
or another Manager Indemnified Party in the Manager’s performance of the Management Services.


 




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Section 11.2         EXTENT
OF INDEMNIFICATION; EXPRESS NEGLIGENCE RULE. WITHOUT LIMITING OR ENLARGING THE SCOPE OF THE INDEMNIFICATION, DEFENSE AND
ASSUMPTION PROVISIONS SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY LAW, AN INDEMNIFIED PARTY SHALL BE ENTITLED
TO INDEMNIFICATION HEREUNDER IN ACCORDANCE WITH THE TERMS OF SECTION 11.1 REGARDLESS OF WHETHER THE ACT, OCCURRENCE OR CIRCUMSTANCE
GIVING RISE TO ANY SUCH INDEMNIFICATION OBLIGATION IS THE RESULT OF THE SOLE, ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE,
STRICT LIABILITY, BREACH OF DUTY (STATUTORY OR OTHERWISE) OR OTHER FAULT OR VIOLATION OF ANY LAW OF OR BY ANY SUCH OWNER INDEMNIFIED
PARTY, PROVIDED, HOWEVER, THAT NO SUCH INDEMNIFICATION SHALL BE APPLICABLE TO THE EXTENT OF ANY GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTY.


 


Section 11.3         Indemnification
Procedure. If any indemnified party discovers or otherwise becomes aware of an indemnification claim arising under this Agreement,
such party will give written notice to the indemnifying Party, specifying such claim, and may thereafter exercise any remedies
available to such indemnified party under this Agreement; provided, however, the failure of any indemnified party
to give notice as provided herein will not relieve the indemnifying Party of any obligations hereunder, to the extent the indemnifying
Party is not materially prejudiced thereby. Further, promptly after receipt by an indemnified party hereunder of written notice
of the commencement of any action or proceeding with respect to which a claim for indemnification may be made against the indemnifying
Party, the indemnified party will give written notice to the indemnifying Party of the commencement of such action, accompanied
by a copy of all papers, if any, served with respect to the action or proceeding; provided, however, the failure
of any indemnified party to give notice as provided herein will not relieve the indemnifying Party of any obligations hereunder,
to the extent the indemnifying Party is not materially prejudiced thereby.


 


Section 11.4         Limitation
on Consequential and Other Damages.


 


(a)          NEITHER
PARTY shall be entitled to recover from THE OTHER Party, or such Party’s respective Affiliates any indirect, consequential,
punitive or exemplary damages or damages for lost profits of any kind arising under or in connection with this Agreement or the
transactions contemplated hereby, except to the extent any such Party suffers such damages (including costs of defense and reasonable
attorney’s fees incurred in connection with defending of such damages) to a Third Party, which damages (including costs of
defense and reasonable attorneys’ fees incurred in connection with defending against such damages) shall not be excluded
by this provision as to recovery hereunder. Subject to the preceding sentence, each Party, on behalf of itself and each of its
Affiliates waives any right to recover punitive, special, exemplary and consequential damages, including damages for lost profits,
arising in connection with or with respect to this Agreement or the transactions contemplated hereby.


 




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(b)          The
amount of damages for which an indemnified Party is entitled to indemnity under this Article XII shall be reduced by the
amount of insurance proceeds received by the indemnified Party or its Affiliates with respect to such damages (net of any collection
costs and net of any increase in premiums resulting from claims with respect to such damages), and, to the extent insurance coverage
for such damages is available under insurance policies of the indemnified Party and not under the insurance policies of the indemnifying
Party, the indemnified Party will use commercially reasonable efforts to assert claims under such insurance coverage with respect
to such damages.


 


Section 11.5         Manager
Liability. Subject to the rights of the Owner to terminate this Agreement, in no event shall the Manager or its Affiliates
have any liability under this Agreement, any Operating Agreement or applicable Law, with respect to the provision of the Services
under this Agreement or acting as contract operator for any claim, damage, loss or liability sustained or incurred in connection
with its operations with respect to the Assets or the provision of the Services or any breach of any provision of this Agreement
regarding the standard of performance of the Manager in performing the Services or operations under this Agreement (including any
breach of Section 3.2) or any Operating Agreement, except to the extent (and only to the extent) such liability is attributable
to or arises from the gross negligence or intentional misconduct of any Manager Indemnified Parties, and the Owner, on its own
behalf and on behalf of its Affiliates, releases the Manager and its Affiliates from such liability, except to the extent (and
only to the extent) such liability is attributable to or arises from the gross negligence or intentional misconduct of any Manager
Indemnified Party. Nothing in this Section 11.5 shall be deemed to be a release by the Owner or any of its Affiliates
of any claims against the Manager arising from a breach by the Manager of its obligation to pay amounts owing to the Owner pursuant
to the terms hereof.


 


Section 11.6         Conspicuous.
THE PARTIES AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE OR ENFORCEABLE, THE PROVISIONS IN THIS AGREEMENT
IN ALL-CAPS FONT ARE “CONSPICUOUS” FOR THE PURPOSE OF ANY APPLICABLE LAW.


 


ARTICLE
XII

Force Majeure


 


If a Party is rendered
unable, wholly or in part, by reason of a Force Majeure Event to perform its obligations under this Agreement, other than obligations
to make payments or provide indemnification or defense when due hereunder, then such Party’s obligations shall be suspended
to the extent affected by the Force Majeure Event. Any Party claiming any Force Majeure Event shall provide prompt written notice
thereof to the other Party including full particulars of such Force Majeure Event.


 




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ARTICLE
XIII

Miscellaneous


 


Section 13.1         Time.
The Parties agree that time is of the essence in the performance of this Agreement.


 


Section 13.2         Independent
Contractor. The Manager and the Owner are independent contractors and this Agreement shall not be construed as one of partnership,
agency, joint venture, or employment between the Manager and the Owner, and the rights, duties, obligations and liabilities of
each of the Parties under this Agreement shall be individual, not collective or joint. As between the Parties, (a) it is not the
intention of the Parties to create, nor shall this Agreement be deemed or construed to create, a mining or other partnership, joint
venture, association or trust, (b) the Manager is not the actual or implied agent for Owner, and (c) subject to the other express
provisions of this Agreement and the right of the Owner to direct the Manager with respect to the ends to be accomplished, the
Manager shall have the exclusive (i) authority to control and direct the specific means, method and manner of performance
of the details of the Management Services to be provided hereunder, and (ii) responsibility and liability for (A) the direction
and supervision of its personnel, (B) the salary, employee benefits, other compensation and related costs of such Manager
personnel and (C) the collection and payment of any payroll taxes or contributions or taxes for unemployment insurance, workers’
compensation, pensions and social security for the Manager personnel that are imposed by any Governmental Authority.


 


Section 13.3         Notices.
All notices and communications required or permitted under this Agreement shall be in writing addressed as indicated below, and
any communication or delivery hereunder shall be deemed to have been duly delivered upon the earliest of: (a) actual receipt by
the Party to be notified; (b) if sent by U.S. certified mail, postage prepaid, return receipt requested, then the date shown as
received on the return notice; (c) if by facsimile transmission, then upon confirmation by the recipient of receipt; (d) if by
email, then upon an affirmative reply by email by the intended recipient that such email was received (provided that, for the avoidance
of doubt, an automated response from the e-mail account or server of the intended recipient shall constitute an affirmative reply);
or (e) if by Federal Express overnight delivery (or other reputable overnight delivery service), the date shown on the notice of
delivery. Addresses for all such notices and communication shall be as follows:


 


	To the Manager:	
        AECP Management, LLC

        301 N.W. 63rd Street

        Suite 600

        Oklahoma City, Oklahoma 73116

        Attention:  Robert W. Kelly II

        General Counsel

        Phone: (405) 818-8000

        Fax:  (405) 818-8040

        Email: bob.kelly@aep-lp.com



 




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	With a copy to:	
        AECP Management, LLC

        301 N.W. 63rd Street

        Suite 600

        Oklahoma City, Oklahoma 73116

        Attention: Scott R. Mueller

        Phone: (405) 818-8000

        Fax:  (405) 818-8040

        Email: scott.mueller@aep-lp.com

	 	 
	To AECP LP:	American Energy Capital Partners, LP
	 	c/o AECP GP LLC
	 	405
Park Avenue



	 	 
	 	New York, NY 10022	 	 
	 	Attention:	General Counsel	 
	 	Phone:	 	(212) 415-6500	 
	 	Fax:	 	(212) 415-	 
	 	Email:	 	 	 
	 	 	 	 	 
	With a copy to:	Kunzman & Bollinger, Inc.	 
	 	5100 N. Brookline	 
	 	Suite 600	 
	 	Oklahoma City, Oklahoma 73112	 
	 	Attention: Gerald Bollinger	 
	 	Phone: (405) 942-3501	 
	 	Fax: (405) 942-3527	 
	 	E-mail: gbollinger@kunzboll.net	 
	 	 
	To Owner:	AECP Operating Company, LLC]
	 	405 Park Avenue	 
	 	New York, NY 10022	 
	 	Attention:	General Counsel	 
	 	Phone:	 	(212) 415-6500	 
	 	Fax:	 	(212) 415-	 
	 	Email:	 	 	 
	 	 	 	 	 
	With a copy to:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 


 


Either Party may, upon written notice to
the other Party, change the address(es) and person(s) to whom such communications are to be directed.


 


Section 13.4         Cooperation.
Prior to termination of this Agreement and at all times following the consummation of this Agreement, the Parties agree to execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered, such documents and instruments and do, or cause to
be done, such other acts and things as may reasonably be requested by any Party to this Agreement, or are otherwise necessary or
advisable, to assure that the benefits of this Agreement are realized by the Parties and that the Parties carry out their obligations
under this Agreement and any document or other instrument delivered pursuant hereto.


 




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Section 13.5         No
Third Party Beneficiaries. Except for the indemnification rights under Article XI, nothing in this Agreement, express
or implied, is intended to confer upon anyone, other than the Parties hereto and their respective successors and assigns, any rights
or remedies under or by reason of this Agreement or to constitute any Person a Third Party beneficiary of this Agreement.


 


Section 13.6         Cumulative
Remedies. Subject to the other provisions hereof, no failure on the part of any Party to this Agreement to exercise and no
delay in exercising any right hereunder will operate as a waiver thereof, nor will any single or partial exercise by any Party
hereto of any right hereunder preclude any other or further right of exercise thereof or the exercise of any other right.


 


Section 13.7         Governing
Law; Jurisdiction; Waiver of Jury Trial. THE VALIDITY, CONSTRUCTION, INTERPRETATION AND EFFECT OF THIS AGREEMENT SHALL BE GOVERNED
BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO CONFLICTS RULES WHICH WOULD OTHERWISE APPLY
THE LAWS OF ANOTHER JURISDICTION. EACH PARTY AGREES THAT IT SHALL BRING ANY ACTION OR PROCEEDING IN RESPECT OF ANY CLAIM ARISING
OUT OF OR RELATED TO THIS AGREEMENT, WHETHER IN TORT OR CONTRACT OR AT LAW OR IN EQUITY, EXCLUSIVELY IN ANY U.S. FEDERAL OR STATE
COURT IN THE STATE OF TEXAS AND (A) IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS, (B) WAIVES ANY OBJECTION TO LAYING
VENUE IN ANY SUCH ACTION OR PROCEEDING IN SUCH COURTS, (C) WAIVES ANY OBJECTION THAT SUCH COURTS ARE AN INCONVENIENT FORUM
OR DO NOT HAVE JURISDICTION OVER IT AND (D) AGREES THAT SERVICE OF PROCESS UPON IT MAY BE EFFECTED BY MAILING A COPY THEREOF POSTAGE
PREPAID, REGISTERED OR CERTIFIED WITH RETURN RECEIPT REQUESTED AT THE ADDRESS SPECIFIED IN SECTION 13.3. THE FOREGOING CONSENTS
TO JURISDICTION AND SERVICE OF PROCESS SHALL NOT CONSTITUTE GENERAL CONSENTS TO SERVICE OF PROCESS IN THE STATE OF TEXAS FOR ANY
PURPOSE EXCEPT AS PROVIDED HEREIN AND SHALL NOT BE DEEMED TO CONFER RIGHTS ON ANY PERSON OTHER THAN THE PARTIES. FURTHER, EACH
PARTY HEREBY KNOWINGLY AND INTENTIONALLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
UNDER, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.


 


Section 13.8         Entire
Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, supersedes
any prior agreements with respect to the subject matter hereof and there are no agreements, understandings, warranties or representations
except as set forth herein.


 


Section 13.9         Assignment.
Neither Party may assign any of its rights or delegate any of its duties under this Agreement without the express written consent
of the other Party, except that the Manager may assign any such rights or delegate any such duties to any of its Affiliates. Any
assignment of rights or delegation of duties under this Agreement in violation of this section shall be void ab initio.


 




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Section 13.10         Amendment.
Neither this Agreement, nor any of the provisions hereof can be changed, waived, discharged or terminated, except by an instrument
in writing hand-signed by the Party against whom enforcement of the change, waiver, discharge or termination is sought. In addition,
each of AECP LP and AECP GP covenant and agree that, without the prior written consent of the Manager, it shall not amend, modify
or restate the Partnership Agreement if the effect thereof would be likely to adversely affect the Manager or any of its Affiliates
or the rights of the Manager or any such Affiliate under this Agreement or the Partnership Agreement and any amendment, modification
or restatement effected without such prior written consent of the Manager shall be void and of no force or effect with respect
to the Manager; provided, however, that the prior written consent of the Manager shall not be required in respect
of any amendment made to the Partnership Agreement (even if it would be likely to adversely affect the Manager or any of its Affiliates)
pursuant to Section 13.13(vi) of the Partnership Agreement that is made without the approval of AECP GP and is effected by approval
of a majority in interest of the holders of Common Units.


 


Section 13.11         Severability.
If any clause or provision of this Agreement is illegal, invalid or unenforceable under any present or future law, the remainder
of this Agreement will not be affected thereby. It is the intention of the Parties that if any such provision is held to be illegal,
invalid or unenforceable, there will be added in lieu thereof a provision as similar in terms to such provisions as is possible
to make such provision legal, valid and enforceable.


 


Section 13.12         Waiver.
Waiver of performance of any obligation or term contained in this Agreement by any Party, or waiver by one Party of the other’s
default hereunder, will not operate as a waiver of performance of any other obligation or term of this Agreement or a future waiver
of the same obligation or a waiver of any future default.


 


Section 13.13         Counterparts;
Facsimiles; Electronic Transmission. This Agreement may be executed in multiple counterparts, each of which will be an original
instrument, but all of which will constitute one agreement. The execution and delivery of this Agreement by any Party may be evidenced
by facsimile or other electronic transmission (including scanned documents delivered by email), which shall be binding upon all
Parties.


 


Section 13.14         Corporate
Opportunity. AECP LP and the Owner acknowledge and agree that the Manager and its Affiliates engage and intend to continue
to engage in the exploration, development, production, acquisition and disposition of oil and gas properties in North America
and the marketing of production from such properties, which activities may be in competition with the Business of AECP LP and
the Owner. AECP LP and the Owner acknowledge, covenant and agree that except for the obligation set forth in Article IX
of this Agreement, notwithstanding anything to the contrary in this Agreement or any implied duty under applicable Law, in equity
or otherwise, (a) none of the Manager or any of its Affiliates that acquire knowledge of a potential oil and gas lease, acquisition,
or investment opportunity, or exploration or development transaction involving oil and gas properties and that may be an opportunity
for AECP LP or the Owner shall have any duty to communicate or offer such opportunity to AECP LP or the Owner, (b) it shall be
deemed not to be breach of any duty or any other obligation of any type whatsoever, express or implied, under this Agreement or
applicable Law, of the Manager or any of its Affiliates to not communicate or offer such opportunity to AECP LP or the Owner,
and (c) none of the Manager or any of its Affiliates shall be liable to AECP LP or the Owner or any other Person by reason
of the fact that the Manager or any of its Affiliates pursues or acquires for itself or its Affiliates, or otherwise directs,
any such opportunity to another Person or does not communicate such opportunity or information to AECP LP or the Owner.


 






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Section 13.15         Joint
Acknowledgement. This written Agreement represents the final agreement between the Parties and may not be contradicted by evidence
of prior, contemporaneous or subsequent oral agreements of the Parties. There are no unwritten oral agreements between the Parties.


 


[Remainder of
Page Intentionally Left Blank


Signature Pages Follow]


 




    	36



    	 



    

 


IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the Effective Date.


 


	 	MANAGER:
	 	 	 
	 	AECP Management, LLC
	 	an Oklahoma limited liability company
	 	 	 
	 	By:	 
	 	 	Robert W. Kelly II
	 	 	General Counsel
	 	 	 
	 	AECP LP
	 	 	 
	 	American Energy Capital Partner, LP
	 	a Delaware limited partnership
	 	 	 
	 	By:	American Energy Capital Partners GP, LLC
	 	 	its General Partner
	 	 	 
	 	By:	Edward M. Weil, Jr.
	 	 	Chief Executive Officer and President
	 	 	 	 
	 	OWNER:
	 	 	 
	 	AECP Operating Company, LLC
	 	a Delaware limited liability company
	 	 	 
	 	By:	 
	 	 	 


 




    	 



    	 



    

 


EXHIBIT A

SCOPE OF SERVICES


 


The “Services”
shall mean general management, administrative and operating services reasonably requested by and at the direction of Owner and
shall include, collectively, the Management Services and the Operating Services performed on behalf of the Owner and any Subsidiary,
and other service or activity agreed by Owner and the Manager. At all times, the Manager’s provision of the Management Services
and Operating Services shall be subject to the limitations set forth in this Agreement, and any other limits or restrictions mutually
agreed by Owner and the Manager.


 


The following services
shall constitute “Management Services”:


 


1.          General.
The Manager shall (a) execute and carry out any lawful decisions or courses of action that have been approved by Owner in writing,
(b) maintain the files and records for engineering, design, accounting, tax, regulatory, land and such other matters as are generally
necessary for the conduct of the business of the Owner, (c) assist and support Owner in general planning and budgeting activities
and (d) coordinate and manage the Owner’s reporting requirements for regulatory, tax, environmental or local compliance purposes.


 


2.          Overhead
Services. Manager will provide all general and administrative overhead services required for the Owner to conduct their respective
business and operations.


 


3.          Management.
The Manager shall provide services in respect of the management of the Owner’s business and its Assets as may be requested
by Owner, including (a) services necessary to satisfy the Owner’s contractual obligations and obligations under applicable
Law and permits and Annual Budgets, (b) making recommendations relating to the improvement of the Owner’s operations and
maintenance (including major maintenance) of its assets and (c) the management and administration of the Owner’s contracts
and liaising with any Person that is party to a material contract with the Owner.


 


4.          Liens.
The Manager shall assist Owner in keeping the Owner’s Assets free and clear of all liens and encumbrances excluding liens
and encumbrances arising in the ordinary course of business.


 


5.          Funds
and Funds Management. The Manager shall (a) supervise all disbursements from, and to the extent of the availability of, funds
provided by the Owner necessary to pay its debts and obligations and (b) open accounts in the name of the Owner and deposit, withdraw
and maintain funds provided by Owner or its members, in banks, savings and loan associations or other financial institutions. The
Manager shall not under any circumstances commingle any funds received for the Owner or held for the account of the Owner with
the Manager’s or any other Person’s funds.


 


6.          Tax
and Accounting Services. The Manager shall (a) provide and oversee financial and tax reporting (including all tax work necessary
for Grant Thornton LLP to fulfill its obligations as “tax matters partner” under the Company Agreement or the Partnership
Agreement) and cash management services, (b) monitor the Owner’s compliance with its debt and financing documents and
(c) perform such other accounting services as Owner may reasonably request.


 




    	Exhibit A - 1



    	 



    

 


7.          IT
Services. The Manager shall provide (or cause to be provided) information technology services that are necessary for the Owner
to perform and otherwise complete its business activities, including services for (a) the management and maintenance of computer
networks and databases, technology systems, and phone networks and plans, (b) the development and implementation of plans and standards
relating to information technology and procurement, (c) the development and implementation of security policies and systems for
the computer databases and technology systems of the Owner and (d) the procurement and acquisition of any other information technology
services requested by Owner.


 


8.          Third
Party Services. The Manager shall (a) engage and manage outside legal, accounting and tax services for the Owner including,
at Owner’s request and direction, providing Owner with legal, accounting or tax counseling or recordkeeping as to the Owner’s
business activities, and at Owner’s request and direction, initiating, maintaining, investigating and defending any claims,
actions or proceedings to which the Owner is a party, (b) engage and manage engineering, operations and other technical consulting
services as required in connection with the Owner’s business and (c) engage environmental consulting services, including
services (i) advising and counseling Owner with respect to environmental compliance issues, including researching applicable environmental
Laws and (ii) assisting Owner in obtaining and maintaining compliance with any and all necessary environmental permits, registrations,
authorizations, licenses, approvals or consents from relevant organizations and governmental authorities.


 


9.          Regulatory.
The Manager shall (a) engage and manage regulatory consultants and cause the admission of Owner into regional and industry associations
if such admission would, in the judgment of Owner, be required or desirable for the operations of the Owner’s business, and
(b) with the approval of Owner, engage and manage representation in lobbying, studies, special or extraordinary sessions determined
to involve or be in the interest of the Owner, including assisting Owner in its dealings with governmental, semi-governmental,
administrative, fiscal or judicial bodies, departments, commissions, authorities, agencies or other entities having jurisdiction
or regulatory power over the Owner’s business activities.


 


10.         Insurance.
At the request of the Owner and at the Owner’s expense, the Manager shall procure the insurance required to be maintained
by the Owner under the NASAA Guidelines. The Manager shall make recommendations to Owner in respect of the types, amounts and content
of insurance necessary or desirable for Owner and its business or the business and Assets of the Owner. At the direction of Owner,
the Manager shall procure on behalf of Owner or the Owner insurance policies providing the coverage and in the amounts specified
by Owner, and maintain such policies in full force and effect. The Manager shall be named as an additional insured in respect of
all liability insurance policies maintained by the Owner, with waiver of subrogation.


 


11.         Supervision.
The Manager shall provide supervisory services for Owner or the Owner’s contractors and operators in connection with the
operation of the Owner’s business and Assets.


 




    	Exhibit A - 2



    	 



    

 


12.         Staffing.
As authorized, coordinated and approved by Owner (including pursuant to an Annual Budget), the Manager will contract out those
services most effectively and efficiently provided by third parties on behalf of the Owner.


 


13.         Compliance
with Credit Documentation. Upon the reasonable request by the Owner at any time or from time to time the Manager will assist
the Owner in the negotiation of an Approved Credit Facility subject to any applicable limitations thereon set forth in the Partnership
Agreement that the Manager has been notified by Owner apply in respect of such Approved Credit Facility. The Manager shall provide
a statement indicating the compliance, or failure to comply, of the Owner with any financial covenants, cash flow requirements,
maintenance ratios and reserve balances in any Approved Credit Facility for the periods covered by such financial statements.


 


14.         Business
Development. The Manager will use reasonable commercial efforts to identify Property Acquisitions for the Owner to directly
or indirectly acquire that the Manager believes may be an appropriate opportunity for the Owner. If the Owner elects in accordance
with Section 9.1 to pursue a Property Acquisition, Manager will use its commercially reasonable efforts to negotiate with
the Seller and submit to Owner for execution, a Purchase and Sale Agreement and other applicable transaction documents which, to
the extent reasonably possible, shall comply with the General Parameters. The Manager will provide Owner with each Proposal for
any Property Acquisition the information specified in Section 9.1(c), copies of all title reports and environmental reports
obtained by the Manager with respect to such Property Acquisitions and such other information that is available to the Manager
and that is reasonably requested by the Owner regarding such Property Acquisition, and upon the Owner’s request will meet
with the Owner and its advisors to discuss the evaluation any Property Acquisition pursued by the Owner.


 


15.         Sale
Preparation. At Owner’s request, the Manager will take such actions to prepare (and arrange for) all or any portion of
the Owner’s Assets to be sold or otherwise disposed of or liquidated (including through a dissolution or winding up of the
Owner).


 


16.         Financing
Coordination. At Owner’s request, at any time or from time to time, the Manager will take such actions (a) to investigate
and evaluate financing alternatives for (i) any Property Acquisition, (ii) the ownership, development and operation
of any portion of the Owner’s Assets, or (iii) any refinancing of the foregoing, (b) will advise the Owner of financing alternatives
that the Manager believes to be appropriate under the circumstances for Owner’s consideration, and (c) at Owner’s request
will assist Owner in negotiating the final definitive terms of any Loan documents for execution by Owner and any of its affiliates
subject to any applicable limitations thereon set forth in the Partnership Agreement that the Manager has been notified by Owner
apply in respect of such Loan documents.


 


The following services
shall constitute “Operating Services”:


 


1.          Lease
Operations. The Manager shall perform all Lease Operations in accordance with the Standards set forth in Section 2.3.
The Manager shall manage the progress, evaluation and implementation of all projects (including multi-well drilling, workover and
recompletion projects and secondary/tertiary recovery projects) being carried out in connection with the performance of Lease Operations.


 




    	Exhibit A - 3



    	 



    

 


2.          The
Manager shall apply, pay for (subject to reimbursement by the Owner as set forth herein), obtain, and maintain in a timely manner
all approvals, authorizations, licenses and permits necessary or advisable for or in connection with the Owner’s ownership
of the Assets and operation of its Business (the “Permits”).


 


3.          Authorizations.
The Manager shall provide the oversight to assure that the operator of the Owner’s Assets acquires all permits, consents,
approvals, surface or other rights that may be required for or in connection with the conduct of the Lease Operations.


 


4.          Technical
Evaluation. The Manager shall provide the oversight to assure that the operator of the Owner’s Assets performs the technical,
geological, petroleum engineering and related evaluations that are necessary or appropriate under the Standards set forth in Section 2.3
to perform the Lease Operations and to evaluate proposed acquisitions of oil and gas properties by the Owner.


 


5.          Marketing
and Transportation. The Manager shall provide the oversight to assure that the operator of the Owner’s Assets arranges
for the purchase, transportation and storage of all hydrocarbons and all supplies, materials and equipment needed in order to perform
the Lease Operations.


 


6.          Safety.
The Manager shall provide the oversight to assure that the operator of the Owner’s Assets takes customary measures consistent
with the Standards set forth in Section 2.3 for the protection of life, health, the environment and property in the case
of an emergency.


 


7.          Releases.
The Manager shall provide the oversight necessary or appropriate to assure that the operator of the Owner’s Assets reports
any spill and environmental releases to the appropriate state or federal regulatory agencies as required by applicable Law.


 


8.          Information.
The Manager shall maintain the following data and reports as they are produced or compiled from Lease Operations: (a) copies of
all logs and surveys furnished by the operator(s) of the Owner Assets; (b) regular drilling, workover or similar operations reports
furnished by the operator(s) of Owner’s Assets; (c) copies of all plugging reports; (d) copies of all geological and
geophysical maps and reports; (e) well tests, completion and similar operations reports furnished by the operator(s) of Owner’s
Assets; (f) if prepared, engineering studies, development schedules and annual progress reports on development projects; (g) field
and well performance reports, including reservoir studies and reserve estimates; (h) lease documents, contracts, agreements, title
instruments and title files; and (i) such additional information as would be maintained by a Reasonably Prudent Operator.


 




    	Exhibit A - 4



    	 



    

 


EXHIBIT B

INSURANCE


 




    	Exhibit B



    	 



    

 


EXHIBIT C


 


COST REIMBURSEMENT


 


In addition to the payment of costs and
expenses incurred in connection with the provision of Services under this Agreement as expressly set forth in Section 5.2
of this Agreement, the Manager shall be responsible to pay without reimbursement of any kind from the Owner, all of the following:


 


Personnel salaries and bonuses


Personnel burdens and benefits


Pension, retirement and insurance
plans


Unemployment, payroll and other
taxes


Administrative contractors or
consultants


Office rent and occupancy costs


Office equipment and rentals


Office supplies


Office utilities


Data processing


Office maintenance and repairs


Employee parking


Telephone and communications


Postage and delivery expense


Business meals


Professional dues and subscriptions


Training expenses


Club memberships


Computer and software support


Payroll and other fees


Banking and industry relationships


General land services (unless
associated with a Proposal and other than contract land services)


 


Except to the extent that the following
Services are included within the items for which the Manager is responsible as provided above, the Manager shall be entitled to
reasonable reimbursement in accordance with Section 5.2 of the Management Agreement for the following out-of-pocket expenses
to the extent such costs and expenses are incurred in accordance with the terms of the Agreement and any applicable joint operating
agreement or applicable law:


 


Audit expense


Independent geological, geophysical
and engineering services


Tax return services


Investor reporting expense


Legal services (other than legal
services for prosecuting or defending claims regarding breach of this Agreement or claims brought by employees, consultants, officers,
directors or agents or in formation of the Manager)


Outsourced accounting services


 




    	Exhibit C - 1



    	 



    

 


Contract land services


Acquisition and due diligence
costs - engineering, title, general land services associated with a Proposal, third-party consultants, environmental, broker fees,
travel, meals and lodging directly related to Producing Property Acquisitions for the Owner


Divestiture costs ‒ engineering,
title, third-party consultants, financial advisors, environmental, broker fees, travel, meals and lodging directly related to Assets
of the Owner


Formation and offering costs
of the Owner


Travel costs associated with
Owner meetup or meeting with any Investors


Bank services, including without
limitation, the Approved Credit Facility and any amendment, restatement or replacement thereof and any waiver thereunder


COPAS overhead fees and standard
district office expenses rebillable under the applicable operating agreement


Insurance


Franchise or state taxes


Third Party marketing fees


Risk management expenses


 




    	Exhibit C - 2



    	 



    

 


EXHIBIT D

OPERATING AGREEMENT


 



    	Exhibit D