# EDGAR Filing Document

**Accession Number:** 0002104882
**File Stem:** 0001193125-26-159367
**Filing Date:** 2026-4
**Character Count:** 2818601
**Document Hash:** 1b9ddae202f83c96040cc6d15087e8ac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-159367.hdr.sgml**: 20260416

**ACCESSION NUMBER**: 0001193125-26-159367

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 72

**FILED AS OF DATE**: 20260416

**DATE AS OF CHANGE**: 20260416

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EagleRock Land, LLC
- **CENTRAL INDEX KEY:** 0002104882
- **STANDARD INDUSTRIAL CLASSIFICATION:** OIL ROYALTY TRADERS [6792]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 413142321
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-295113
- **FILM NUMBER:** 26868614

**BUSINESS ADDRESS:**
- **STREET 1:** 600 N MARIENFELD ST., SUITE 800
- **CITY:** MIDLAND
- **STATE:** TX
- **ZIP:** 79701
- **BUSINESS PHONE:** (347) 547-5330

**MAIL ADDRESS:**
- **STREET 1:** 600 N MARIENFELD ST., SUITE 800
- **CITY:** MIDLAND
- **STATE:** TX
- **ZIP:** 79701

##### [**Table of Contents**](#toc)
**As filed with the U.S. Securities and Exchange Commission on April 16, 2026.** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## EagleRock Land, LLC
**(Exact Name of Registrant as Specified in its Charter)** 

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| | | |
|:---|:---|:---|
| **Texas** | **6792** | **41-3142321** |
| **(State or other jurisdiction<br>of incorporation or organization)** | **(Primary Standard Industrial<br>Classification Code Number)** | **(I.R.S. Employer<br>Identification No.)** |

---

**9655 Katy Freeway, Suite 375** 

**Houston, Texas 77024** 

**(713) 280-7002** 

**(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)** 

**Greg Pipkin Jr.** 

**Chief Executive Officer** 

**9655 Katy Freeway, Suite 375** 

**Houston, Texas 77024** 

**(713) 280-7002** 

**(Name, address, including zip code, and telephone number, including area code, of agent for service)** 

***Copies to:***

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| | |
|:---|:---|
| **Michael S. Telle**<br> **Scott D. Rubinsky**<br> **Vinson & Elkins L.L.P.**<br> **845 Texas Avenue, Suite 4700**<br> **Houston, Texas 77002**<br> **(713) 758-2222** | **Ryan J. Maierson**<br> **John J. Slater**<br> **Latham & Watkins LLP**<br> **811 Main Street, Suite 3700**<br> **Houston, Texas 77002**<br> **(713) 546-5400** |

---

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment that specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this Registration Statement shall become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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The information in this preliminary prospectus is not complete and may be changed. We may not sell the securities described herein until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell such securities, and it is not soliciting an offer to buy such securities, in any state or jurisdiction where the offer or sale is not permitted.

Subject to Completion, Preliminary Prospectus Dated , 2026

**Preliminary Prospectus**![LOGO](g37594g65v32.jpg)

**EagleRock Land, LLC** 

Class A Shares

Representing Limited Liability Company Interests

This is the initial public offering of Class A shares representing limited liability company interests ("Class A shares") of EagleRock Land, LLC, a Texas limited liability company ("EagleRock," the "Company," "we," "us," or "our"). We have elected to be treated as a corporation for U.S. federal income tax purposes.

We expect that the public offering price for our Class A shares will be between $ and $ per Class A share. We intend to apply to list our Class A shares on the New York Stock Exchange (the "NYSE") and NYSE Texas, Inc. ("NYSE Texas") under the symbol "EROK."

Following this offering, we will have two classes of authorized equity securities outstanding: Class A shares and Class B shares representing limited liability company interests ("Class B shares" and, together with Class A shares, "common shares"). Our Class B shares have no economic rights but entitle holders to one vote per Class B share on all matters to be voted on by shareholders generally. Holders of Class A shares and Class B shares will vote together as a single class on all matters presented to our shareholders for their vote or approval, except as otherwise required by applicable law or by our LLC Agreement (as defined herein). Our outstanding Class A shares and Class B shares will represent approximately % and %, respectively, of the total voting power of our outstanding common shares immediately following this offering, assuming no exercise of the underwriters' option to purchase additional Class A shares, with our affiliates owning approximately % of such total voting power, without giving effect to any purchases that any of our affiliates may make through the directed share program.

We are an "emerging growth company" and a "smaller reporting company" under applicable federal securities laws and, as such, we have elected to take advantage of certain reduced public company reporting requirements for this prospectus and future filings. Please see the sections titled "Risk Factors" and "Summary—Emerging Growth Company and Smaller Reporting Company Status." Immediately following this offering, our Existing Owners (as defined herein) will collectively own approximately % of the total voting power of our outstanding common shares (or approximately % if the underwriters exercise their option to purchase additional Class A shares in full), and will agree with us, pursuant to the terms of Voting Agreements (as defined herein), to vote in favor of all director nominees recommended for election by our board of directors. As a result, we expect to be a "controlled company" within the meaning of the NYSE and NYSE Texas rules and will qualify for and intend to rely on exemptions from certain corporate governance requirements. See "Management—Status as a Controlled Company" for additional information.

*Investing in our Class A shares involves risks. See "[Risk Factors](#rom37594_2)" beginning on page 50 of this prospectus to read about factors you should consider before investing in our Class A shares.* 

**Neither the U.S. Securities and Exchange Commission ("SEC") nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.** 

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| | | |
|:---|:---|:---|
|  | Per Class A share | Total |
|  Public offering price | $| $|
|  Underwriting discount<sup>(1)</sup> | $| $|
|  Proceeds to EagleRock (before expenses) | $| $|

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(1) See "Underwriting" for a description of compensation payable to the underwriters.

We have granted the underwriters the option to purchase, exercisable within 30 days from the date of this prospectus, up to additional Class A shares from us, at the public offering price less the underwriting discounts.

At our request, the underwriters will reserve up to % of the Class A shares for sale at the public offering price through a directed share program to certain individuals associated with us. See "Underwriting—Directed Share Program."

The underwriters expect to deliver the Class A shares to purchasers on or about , 2026 through the book-entry facilities of The Depository Trust Company.

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| | | | |
|:---|:---|:---|:---|
| **Goldman Sachs & Co. LLC** | **Barclays** |  | **J.P. Morgan** |
| **Piper Sandler** |  |  | **Raymond James** |
| **KeyBanc Capital Markets** | **Pickering Energy Partners** | **Stephens Inc.** | **Texas Capital Securities** |

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Prospectus dated , 2026.

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##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  | Page |
|  [Summary](#rom37594_1) | 1 |
|  [Risk Factors](#rom37594_2) | 50 |
|  [Cautionary Note Regarding Forward-Looking Statements](#rom37594_3) | 110 |
|  [Use of Proceeds](#rom37594_4) | 113 |
|  [Dividend Policy](#rom37594_5) | 115 |
|  [Capitalization](#rom37594_6) | 116 |
|  [Dilution](#rom37594_7) | 118 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#rom37594_8) | 120 |
|  [Business](#rom37594_9) | 141 |
|  [Management](#rom37594_10) | 180 |
|  [Executive Compensation](#rom37594_11) | 186 |
|  [Corporate Reorganization](#rom37594_12) | 197 |
|  [Security Ownership of Certain Beneficial Owners and Management](#rom37594_13) | 199 |
|  [Certain Relationships and Related Party Transactions](#rom37594_14) | 201 |
|  [Description of Shares](#rom37594_15) | 209 |
|  [Our LLC Agreement](#rom37594_16) | 212 |
|  [Shares Eligible for Future Sale](#rom37594_17) | 222 |
|  [Material U.S. Federal Income Tax Considerations for Non-U.S. Holders](#rom37594_18) | 225 |
|  [Certain ERISA Considerations](#rom37594_19) | 230 |
|  [Underwriting](#rom37594_20) | 233 |
|  [Legal Matters](#rom37594_21) | 241 |
|  [Experts](#rom37594_22) | 241 |
|  [Where You Can Find More Information](#rom37594_23) | 242 |
|  [Glossary of Certain Industry Terms](#rom37594_24) | A-1 |
|  [Index to Financial Statements](#rom37594_25) | F-i |

---

You should rely only on the information contained in this prospectus and any free writing prospectus prepared by us or on our behalf or the information to which we have referred you. Neither we nor the underwriters have authorized anyone to provide you with information or to make any representations different from those contained in this prospectus and any free writing prospectus. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We and the underwriters are offering to sell Class A shares and seeking offers to buy Class A shares only under circumstances and in jurisdictions where such offers and sales are lawful. The information in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the Class A shares. Our business, liquidity position, financial condition, prospects or results of operations may have changed since the date of this prospectus.

This prospectus contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. See the sections titled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements."

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**BASIS OF PRESENTATION** 

This is the initial public offering of Class A shares of EagleRock. We were formed on December 1, 2025 by Lea & Eddy Holdings, LLC ("L&E") and have not conducted and will not conduct any material business operations prior to the completion of the transactions described under "Corporate Reorganization" (such transactions, the "Corporate Reorganization") other than certain activities related to this offering. Following the Corporate Reorganization, EagleRock will be a holding company, the sole material asset of which will consist of membership interests ("OpCo Units") in EagleRock Land Operating, LLC, a Texas limited liability company ("OpCo"). EagleRock will also be the sole managing member of OpCo. As part of the Corporate Reorganization, (i) L&E will contribute all its subsidiaries, other than Hydrosource Logistics, LLC ("Hydrosource" or the "Excluded Assets") to OpCo (the "L&E Contribution"), (ii) Double Eagle IV Midco, LLC ("Double Eagle") will contribute DE IV Flow, LLC ("DE Flow") to OpCo (the "DE Flow Contribution") and (iii) the existing owners of the Shallow Valley Ranch (the "Shallow Valley Owners") will contribute the entities that own Shallow Valley Ranch ("Shallow Valley") to OpCo (the "Shallow Valley Contribution").

The Corporate Reorganization is expected to be effected immediately prior to, and conditioned upon, the consummation of this offering. All steps comprising the Corporate Reorganization are expected to occur in connection with the closing of this offering and will be completed substantially concurrently with, but in any event prior to, the issuance of the Class A shares to the public shareholders. If this offering is not consummated, the Corporate Reorganization will not be completed. The sequencing and completion of the steps in the Corporate Reorganization may be adjusted for administrative or technical reasons, including the receipt of required consents and approvals, but such adjustments will not alter the substantive outcomes described under "Corporate Reorganization."

Our organizational structure following the Corporate Reorganization will allow us to retain a direct equity ownership in OpCo, which will be classified as a partnership for U.S. federal income tax purposes following the offering. Investors in this offering will, by contrast, hold a direct economic and voting ownership interest in us in the form of Class A shares, and an indirect ownership interest in OpCo through our ownership of OpCo Units. Although we were formed as a limited liability company, we have elected to be taxed as a corporation for U.S. federal income tax purposes.

Pursuant to our LLC Agreement and the OpCo LLC Agreement (both, as defined herein), our capital structure and the capital structure of OpCo will generally replicate one another and will provide for customary antidilution mechanisms in order to maintain the one-for-one exchange ratio between the OpCo Units and our Class A shares. In connection with the Corporate Reorganization and this offering, each holder of OpCo Units (other than EagleRock) will receive one Class B share representing a non-economic voting limited liability company interest in us for each OpCo Unit that it holds. Accordingly, holders of the OpCo Units will have a number of votes in us equal to the aggregate number of OpCo Units that they hold. Class B shares cannot be transferred except in connection with a permitted transfer of a corresponding number of OpCo Units. Following this offering, under the OpCo LLC Agreement, each holder of OpCo Units (other than EagleRock) will, subject to certain limitations, have the right to redeem its OpCo Units (together with the cancellation of a corresponding number of Class B shares) for the same number of Class A shares, as described in more detail under "Summary—Redemption Right." Holders of Class A shares and Class B shares will vote together as a single class on all matters presented to our shareholders for their vote or approval, except as otherwise required by applicable law or by our LLC Agreement.

For additional information, please see "Corporate Reorganization" and "Certain Relationships and Related Party Transactions—OpCo LLC Agreement."

Throughout this prospectus, we present operational and financial information regarding the business of OpCo. This information is generally presented on an enterprise-wide basis. However, the

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Class A shares to be issued to the public shareholders in this offering will initially represent a minority economic interest in OpCo. We expect that our Existing Owners and the TCW Entities will initially hold a majority of the economic interest in OpCo, as non-controlling interest holders, through their ownership of a majority of the OpCo Units and Class A shares outstanding immediately following the closing of this offering. Immediately following this offering, our Existing Owners and the TCW Entities will directly control us and, as a result, will indirectly control OpCo through their ownership of Class B shares representing greater than a majority of our outstanding equity interests. Because the Class A shares issued in this offering will initially indirectly represent a minority economic interest in OpCo, prospective investors should therefore evaluate performance metrics and financial information in this prospectus accordingly. To the extent that OpCo Units (along with a corresponding number of our Class B shares) are redeemed for our Class A shares (or, at our election, for cash) over time, the relative economic interest of EagleRock and our public shareholders in OpCo's economic results will increase relative to that of our Existing Owners and the TCW Entities.

**Financial and Operating Data Presentation** 

References to "EagleRock," "we," "our," "us" or like terms refer collectively to (i) L&E (other than the Excluded Assets), Shallow Valley and DE Flow, together with their consolidated subsidiaries, before the completion of the Corporate Reorganization and (ii) EagleRock Land, LLC and its consolidated subsidiaries, including L&E, Shallow Valley and DE Flow, as of and following the completion of the Corporate Reorganization. Unless otherwise indicated, the historical financial information presented in this prospectus is that of L&E, our predecessor for accounting purposes.

In certain instances in this prospectus, we present financial data on a "pro forma" or "pro forma, as adjusted" basis, as applicable. As used herein and as applicable based on the periods presented, unless otherwise indicated, these references have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the term "pro forma" refers to the historical financial data of our predecessor, as adjusted to give effect to
(i) L&E's acquisition of the equity interests of Accelerated Water Resources, LLC on April 14, 2025 (such entity, "Accelerated" and such acquisition, the "Accelerated Acquisition"), (ii) the exclusion of
the Excluded Assets that are not being conveyed to EagleRock, (iii) the Shallow Valley Contribution and (iv) the DE Flow Contribution (collectively, the "Pro Forma Transactions"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the term "pro forma, as adjusted" refers to the historical financial data of our predecessor, as adjusted to
give effect to (i) the Pro Forma Transactions, (ii) the Up-C Reorganization (as defined herein) and (iii) this offering and the application of the net proceeds therefrom as described in
"Use of Proceeds" (collectively, the "Pro Forma As Adjusted Transactions").

Unless otherwise indicated, (i) pro forma financial data for the year ended December 31, 2025 gives effect to the Pro Forma Transactions as if each transaction had been consummated on January 1, 2025, and (ii) pro forma, as adjusted financial data for the year ended December 31, 2025 gives effect to the Pro Forma As Adjusted Transactions as if such transactions had been consummated on January 1, 2025, except that the pro forma and pro forma, as adjusted balance sheet data has not been adjusted for the Accelerated Acquisition because the predecessor balance sheet as of December 31, 2025 fully reflects the Accelerated Acquisition, which was completed on April 14, 2025. Pro forma and pro forma, as adjusted financial data contain certain reclassification adjustments to conform the historical L&E, Accelerated, Shallow Valley and DE Flow financial statement presentation to the Company's financial statement presentation, as applicable.

The pro forma and pro forma, as adjusted financial data is presented for illustrative purposes only and should not be relied upon as an indication of the financial condition or the operating results that

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would have been achieved if the Pro Forma Transactions or the Pro Forma As Adjusted Transactions had taken place on the specified dates. In addition, future results may vary significantly from the results reflected in such pro forma and pro forma, as adjusted data and should not be relied on as an indication of future results. Please refer to our Unaudited Pro Forma Condensed Consolidated Financial Statements and the related notes thereto included elsewhere in this prospectus for additional information.

Unless otherwise indicated, all operational data in this prospectus is presented on a pro forma basis.

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**INDUSTRY DATA** 

Certain market and industry data and other statistical information used throughout this prospectus have been obtained from Enverus, an independent industry source, as well as from research reports prepared for other purposes. Some market data and statistical information contained in this prospectus are also based on management's estimates and calculations, which are derived from our review and interpretation of publicly available industry publications, our internal research and our knowledge of the markets in which we currently operate and, as of the date of this prospectus, anticipate operating in the future. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such information. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and uncertainties as the other forward-looking statements in this prospectus. While we are not aware of any misstatements regarding our industry data presented herein, our estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed under the headings "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in this prospectus.

**TRADEMARKS AND TRADE NAMES** 

We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks, trade names or products in this prospectus is not intended to, and does not, imply a relationship with us or endorsement or sponsorship by or of us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the <sup>®</sup>, TM or SM symbols, but the omission of such references is not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable owner or licensor to these trademarks, service marks and trade names.

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**SUMMARY** 

**Our Company** 

Access to land, resources and infrastructure is fundamental for critical industries like energy and technology to thrive. We are a land management company that owns or controls approximately 236,000 acres in the heart of the Delaware and Midland sub-basins within the prolific Permian Basin. In addition, we have an interest in up to approximately 70,000 acres pursuant to an acreage dedication related to our Midland Basin water infrastructure assets (the "DE Acreage Dedication"). Our acreage is vital to the efficient development of oil and natural gas resources in the Permian Basin and is strategically located to support the growing surface, resource, infrastructure and related commercial development needs of the power and other emerging industries in the Permian Basin.

Our assets are situated in the most active oil and natural gas development and production areas in Texas and New Mexico. The Permian Basin is regarded as the premier region for oil and gas development due to its prolific remaining resource, low break-even costs and robust network of service and infrastructure companies that support oil and gas development. The depth and quality of the remaining resource has attracted large, public and well-capitalized producers who have largely consolidated the core of the Midland and Delaware sub-basins. In turn, the abundance of economic and highly reliable energy has underpinned a number of emerging industries within the Permian Basin, including traditional and renewable power generation, transmission and storage and data centers. Our strategically located portfolio of assets provides the land and ability to construct infrastructure required for producing oil and natural gas, as well as supporting these emerging industries, which we believe will support growing and enduring revenue streams and cash flow.

Our assets are uniquely tailored to meet the needs of our customers in the distinct regulatory and operational environments in each sub-basin of the Permian Basin. Our Delaware Basin acreage sits in productive development corridors in the Permian Basin and supports water supply for drilling activity and produced water offtake, handling and recycling services to support the emerging beneficial reuse markets, generating activity-based revenue streams and royalties tied to recycled water. This position also provides abundant pore space capacity for sour gas and carbon dioxide injection ("AGI"), helping our customers mitigate the potential impact of local sour gas refining constraints and reducing flaring required by operators. In the Midland Basin, where geologic conditions are more favorable and regulatory conditions are more consistent for subsurface produced water disposal, we have valuable pore space capacity for produced water disposal in areas not affected by seismicity and over-pressurization concerns. Our acreage may also support future CO<sub>2</sub> pipeline development in conjunction with our pore space, which is well suited for large scale CCUS. Our Midland Basin assets also include one of the largest produced water handling and disposal systems in the Permian Basin that, under a long-term agreement with DEF Operating, LLC ("DEF Operating"), an affiliate of Double Eagle Energy Holdings IV, LLC ("Double Eagle"), one of our operating partners, underpins our ability to monetize produced water handling, disposal, recycling and beneficial reuse activities across our footprint.

We seek to create value for our shareholders by growing and diversifying our revenue streams through a proven strategy of organic growth and accretive land acquisitions that complement our strategy, strengthen our competitive advantages and provide opportunities for our experienced management team to drive incremental organic growth. Our proactive land management strategy has driven organic growth by supporting the full life cycle of oil and gas operations, including drilling, completion, production, offtake, treatment, processing and handling and responsible waste management and disposal activities, to enhance efficient oil and gas development with minimal

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operating costs or capital expenditures by us. We intend to apply this same proactive approach to attract development by emerging industries on our land. We also seek to grow organically through the expansion of existing infrastructure and operations carried out on our acreage, as well as through the identification and exploitation of new and novel uses of our land to attract new customers and strategic partners. In turn, existing and additional development on our land augments our ability to attract further incremental activities and uses, as new customers are able to utilize existing infrastructure.

Our land holdings benefit from a number of strategic contractual arrangements that provide durable revenue streams and consistent demand from our customers. These agreements are characterized by long tenors, minimum payment obligations, minimum use commitments, inflation-linked fee escalators and exclusivity provisions. For example, we are party to surface use agreements and surface use and royalty agreements (each, an "SUA") with a number of customers that have operations on our land. Our SUAs typically include 5 to 10-year initial terms, subject to renewal, and provide us with a fee when the SUA is executed, fixed monthly or annual fees that typically escalate annually based on the Consumer Price Index ("CPI"), and often include additional fees at the beginning of each renewal period. Our SUAs also typically include pre-defined terms for additional fees that we will receive for our customers' development and use of drilling sites, new and existing roads, pipeline easements and electric transmission easements. Many of our SUAs require our customers to use rights-of-way ("ROWs") and easements on our land as well as the resources from our land, such as water and caliche, for their operations on our land, for which we receive additional fees. Production of oil and natural gas from the reservoirs underlying our land is expected to continue for many decades and, as a result, we expect these contracts to be renewed for an extended period of time. Furthermore, our SUAs typically include provisions that require our customers to remove their assets from and remediate our land if such agreements are not renewed, providing an incentive for our customers to continue to renew their existing agreements with us.

In addition, our Midland Basin assets include an integrated water infrastructure system (the "DE Flow System") from which we will generate royalty revenues from the activities of our operating partner, DEF Operating, under a Water System Management Agreement (the "DE Flow WSMA"), which we will enter into in connection with this offering. The DE Flow WSMA will have an initial 10-year term, include a minimum annual royalty commitment, and will be supported by the DE Acreage Dedication. Our produced water infrastructure is capable of handling up to approximately 400 MBbls/d of produced water under long-term contracts, and includes produced water gathering systems, saltwater disposal wells ("SWDs"), water sourcing and delivery pipelines and recycling facilities.

In connection with this offering, we will also enter into a long-term produced water recycling rights agreement (the "Hydrosource Recycling Agreement") with Hydrosource, our other operating partner, pursuant to which we will receive a royalty for, among other things, each barrel of produced water Hydrosource treats and recycles for oil and gas customers on our land and within certain designated areas outside of our land. Under the Hydrosource Recycling Agreement, Hydrosource will provide treated, blended and recycled water to customers across certain parts of our acreage. The Hydrosource Recycling Agreement will have a 10-year term with a five-year minimum royalty commitment. The Company and Hydrosource have access to supplemental off-ranch water, and the Company's surface pipeline has the capacity to move approximately 100 MBbls/d, or approximately 36.5 MMBbls per year, of off-ranch water from Texas to its land in New Mexico. Additionally, Hydrosource has a long-term agreement that provides it with access to up to 3 MMBbls/d of produced water that can be recycled from one of the largest water disposal companies' produced water pipeline system in New Mexico (the "Hydrosource Recycled Water Supply Agreement"), as well as other water infrastructure on our land.

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As a land management company, we charge fees and royalties based on our customers' usage of our land, assets and resources. The cost of developing our land and operating the assets in which we own interests is primarily borne by our customers and operating partners, allowing us to deploy little to no capital of our own while benefitting from the increasing use of our land, assets and resources. To promote our strategy, we collaborate commercially with our customers to support robust and efficient use of our resources to maximize returns for our shareholders. We generate revenue from multiple sources, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Resource Sales and Royalties:** We receive fees when customers purchase our resources, such as water and caliche mined
from our land for use in their operations. The development of oil and natural gas resources requires significant quantities of water, which are typically obtained from commercial water wells or recycling of produced water, as well as caliche for the
construction of drilling pads, roads and production batteries. Under many of our SUAs, our customers are required to purchase from us or our operating partners the resources used in their operations at negotiated fees. We source water to fulfill our
customers' needs from commercial water wells on our fee lands, our operating partners and other third-party sources. Our commercial water wells in New Mexico, water infrastructure in Texas and off-ranch water from third party sources allow us to produce and sell in excess of 200 MMBbls of water per year. We sell caliche from 29 caliche mines on our land.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Surface Use Royalties and Revenues**: We receive fees when customers use our surface acreage. Under our SUAs, we
charge customers fees for land activity, including the construction of well pads, wellbores, central tank batteries, existing and new roads, electrical infrastructure, buried pipelines and reuse and frac ponds. Under our SUAs, we also generate
revenue from the use of easements and ROWs by our customers. We also expect to generate long-term royalty revenue under the DE Flow WSMA from produced water handling activities in and adjacent to our land in the Midland Basin. Our produced water
handling and disposal infrastructure has multiple SWD wells with significant valuable pore space in more stable geologic areas for the development of additional locations across our Midland Basin assets that our customers will be able to use for
such disposal activities. Through Hydrosource and the Hydrosource Recycling Agreement, we have access to up to 3 MMBbls/d of produced water for treatment and recycling by Hydrosource and sold to customers on and off our land, from which we generate
royalty revenue. We also expect to generate long-term royalty revenue under the DE Flow WSMA through its water supply and recycling activities in and adjacent to our land in the Midland Basin. In addition to generating royalty revenue from
water-related activities, we have also experienced increased demand for our pore space for AGI wells in the Delaware Basin, from which we expect to generate royalty revenue. Our first AGI well is already contracted and projected to commence revenue
activities within the next two years. Our largely contiguous acreage position underpins our ability to capture incremental revenue streams from sand mines, solid waste disposal facilities and other surface optimization opportunities, as well as
serving as a location for development by emerging industries.

The diagram below depicts the activities that generate certain of our existing and potential future revenue streams and royalties on our surface. We do not currently engage in the activities identified as potential future activities. These activities represent opportunities we may pursue in the future but for which we have no binding agreements, committed capital or definitive development timelines. There can be no assurance that we will pursue any of these activities or that, if pursued, they will generate material revenues. Our ability to pursue these activities is subject to numerous risks and uncertainties, including regulatory approvals, market conditions, customer demand, competition, technological developments and our ability to negotiate favorable commercial terms. See "Risk Factors—Risks Related to Our Business and Operations—We may not be successful in pursuing additional commercial opportunities on our land from non-traditional energy production and other users."

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**EagleRock Land Revenue**![LOGO](g37594g63c79.jpg)

Our business model focuses on monetizing our land, resources and water infrastructure assets through the exclusive nature of our SUAs and royalty-based strategy that minimizes our exposure to operating costs and risks and under which our customers and operating partners assume substantially all operating and capital expenditures associated with activities on our land. This structure supports the generation of significant, sustainable Free Cash Flow. The following table summarizes our financial performance for the periods shown:

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| | | | |
|:---|:---|:---|:---|
|  | **Predecessor** | **Predecessor** | **Pro Forma** |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Total revenues | $17701 | $72173 | $|
|  Net (loss) income | (1075) | (73071) |  |
|  Adjusted EBITDA<sup>(1)</sup> | 7350 | 35533 |  |
|  Cash flows from operating activities | 907 | 14138 |  |
|  Capital expenditures<sup>(2)</sup> | (1482) | (5252) |  |
|  Free Cash Flow<sup>(1)</sup> | 5868 | 30281 |  |
|  Acreage at end of period | 122132 | 193875 |  |

---

(1) Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See
"—Summary Consolidated Financial and Other Data" and "—Non-GAAP Financial Measures" for more information regarding these non-GAAP measures and reconciliations to the most comparable measures calculated and presented in accordance with GAAP.

(2) Capital expenditures include costs incurred, inclusive of changes in accounts payable related to capital expenditures,
for corporate office furniture and office equipment and costs incurred to install and maintain modest ancillary assets, such as ponds and pits, we own on our land.

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**Our Proactive Management Strategy** 

We believe that maximizing the efficient utilization and cash flow generation of our assets is critical to creating long-term value for our shareholders. Our proactive management strategy seeks to optimize the amount of long-term activity utilizing the same surface acreage through our land and SUAs, which entitle us to diverse revenue streams while requiring our customers and operating partners to be responsible for most operating costs and capital expenditures. We actively seek to further our operating partners' and customers' development of our land through the expansion of existing infrastructure and operations carried out on our land, as well as identifying novel uses of our land to attract new customers and strategic partners. Existing and additional development on our land augments our ability to attract further incremental activities as new customers are able to utilize existing infrastructure. We expect to enter into SUAs or similar agreements with new or existing customers for any incremental or novel project on our surface acreage, from which we expect to receive surface use or similar fees and other payments in connection with the use of our land or resources. In addition, we generally do not expect to own or operate any such projects or expect to incur any significant capital expenditures in connection with such projects.

We consistently evaluate opportunities to expand the uses of our land to attract customers across a variety of industries. By entering into agreements with our customers and operating partners, such as the Hydrosource Recycling Agreement and the DE Flow WSMA, our land is utilized to address new and existing customers' needs and monetize our land and resources. For example, these arrangements allow us to scale the existing produced water disposal infrastructure on our land, with the goal of supporting the increasing demands of operators. We recently entered into an AGI and pore space lease and royalty arrangement on our land under which our customer agreed to fund the construction of the AGI wells and lease our pore space in exchange for payment of lease and royalty fees. Additionally, we believe that our large land footprint will allow us to partner with new customers to meet the growing surface, resource, infrastructure and related commercial development needs of the power and other emerging industries in the Permian Basin, which will result in incremental high margin royalty-based cash flows.

**Surface Access to Land and its Resources is Critical to Efficiently Develop Energy Assets** 

Access to land is fundamental to upstream oil and gas development. In addition, oil and gas development and production activities consume and produce large amounts of water and utilize other land resources, such as caliche and sand. During the drilling and completion process, water is used to lubricate and cool the drill bit and remove drilling mud and rock debris. During hydraulic fracturing operations, water is mixed with sand and chemicals and pumped downhole under high pressure to fracture the producing formation. Once a well is completed and begins producing, produced water must be safely and reliably separated, transported and disposed of to maintain production continuity. Using our surface acreage, water and other land resources and produced water infrastructure, we and our operating partners are able to provide the critical resources and infrastructure needed by our customers for the efficient and reliable development of their oil and gas assets in the Permian Basin.

Our land is situated in the prolific Permian Basin, which includes both the Delaware and Midland Basins and is regarded as the premier region for oil and gas development, primarily due to its vast remaining hydrocarbon resources and low break-even costs. Our land sits atop some of the most productive areas in the Delaware and Midland Basins presenting significant oil and natural gas development potential and many decades of remaining inventory for our customers. We believe the location of our land will contribute to durable revenue streams and consistent demand from our customers. The chart below depicts the estimated remaining oil resource and basin resource life of the Delaware Basin, the Midland Basin and other notable basins, according to the U.S. Geological Survey.

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**Basin Resource Life Comparison**![LOGO](g37594g01k96.jpg)

*Source: USGS, Enverus \| Note: (1) Resource Life is calculated by dividing USGS Remaining Resource estimate by the trailing twelve-month production rate for the applicable basin or play. (2) Weighted average of the Resource Life of the Delaware Basin (37 years) and Midland Basin (28 years). (3) 2024/25 USGS Remaining Resource Estimates (MMBbl). (4) Other Rockies includes Powder River Basin, DJ and Uinta basins.* 

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Oil and natural gas development in the Permian Basin generates significant and growing volumes of produced water that must be transported, treated, recycled or disposed of to sustain ongoing operations. As activity across the Permian Basin has expanded, produced water volumes have increasingly outpaced available handling and disposal capacity, creating logistical constraints that can impact drilling and completion schedules, operating costs and development efficiency. The chart below illustrates historical and forecasted Permian Basin produced water volumes relative to basin-wide operational handling capacity, underscoring the importance of surface access, infrastructure siting and proximity to disposal and recycling solutions in supporting continued development across the Permian Basin.

**Permian Basin Water Volumes by Handling Method vs. Operational Produced Water Handling Capacity**![LOGO](g37594g01k99.jpg)

*Source: B3 Insights and Pickering Energy Partners analysis as of June 30, 2025. \| Note: Assumes a 20% decrease in basin-wide operational produced water handling capacity to account for logistical inefficiencies within the Permian Basin. Based on the 2023-2024 average number of new produced water handling facilities per year. Sub-plays are limited to two total produced water handling facilities and shallow production wells per section, and there are assumed to be no new shallow production wells drilled. Assumes zero new deep production wells will be drilled.* 

As depicted below, our land in the Delaware and Midland Basins sits atop multiple layers of stacked oil and natural gas formations, presenting significant oil and natural gas development potential and many decades of remaining inventory for our customers. These horizons represent decades of undeveloped energy resources. Successful and efficient development of these resources will be dependent on access to our land, resources and infrastructure, which allows operators to efficiently drill and complete new wells and manage high-volume produced-water throughput from those wells. We

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believe that our portfolio of land, resources and infrastructure will allow us to capture significant revenues through the life cycle of our customers' oil and gas wells.

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| | |
|:---|:---|
| **Delaware Basin Subsurface Diagram** | **Midland Basin Subsurface Diagram** |
| ![LOGO](g37594g60w51.jpg) | ![LOGO](g37594g60w51.jpg) |

---

*Source: Enverus \| Note: WOR = Water to Oil Ratio. This ratio compares the amount of produced water relative to the amount of produced oil.* 

In addition to the large quantities of water needed during drilling and completion of a well, the production phase, which spans multiple years, requires significant produced water handling and disposal infrastructure to safely and reliably separate, transport and dispose produced water in order to maintain production continuity. The oil produced in and around our Midland Basin acreage is accompanied by significant volumes of produced water, averaging approximately 4 barrels of water per barrel of oil, or approximately 80% of total liquids produced from a typical well, according to the New Mexico Oil Conservation Division (the "NMOCD"). This water must be reliably handled in order for these wells to be brought online and remain in production, driving ongoing demand for water handling on acreage in close proximity to the operations of producers. We believe that our land resources and produced water infrastructure are well-situated to handle these large volumes of produced water.

Our produced water handling and disposal infrastructure is operated by our operating partner, DEF Operating, and underpinned by a minimum annual royalty commitment under a long-term contract with a 10-year initial term. Our produced water infrastructure is largely located in the Midland Basin, which benefits from a consistent and favorable regulatory environment and advantaged geologic conditions as compared to the Delaware Basin. Development of produced water disposal wells is regulated at the state level and is required to meet guidelines imposed by the relevant state agencies. Because the Delaware Basin is situated across the Texas–New Mexico state border, the planning, permitting and building of produced water infrastructure is dependent upon the laws and regulations of either Texas or New Mexico. Inconsistent regulations governing produced water reinjection between Texas and New Mexico

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have resulted in the transmission of significant quantities of produced water from New Mexico to reinjection locations in Texas, which has led to pore space constraints and geologic issues, such as seismicity and over-pressurization, in certain areas of the Texas Delaware Basin. Meanwhile, the Midland Basin's location entirely in Texas provides a consistent regulatory environment in addition to advantaged geologic characteristics, which results in a more evenly distributed system for reinjecting produced water across the Midland Basin. Our Midland Basin acreage is located in areas with abundant pore space, low seismicity and reduced over-pressurization concerns, and we believe that the combination of favorable geological characteristics and a consistent regulatory environment complements our existing, permitted and future produced water disposal assets.

At the same time, through our Hydrosource Recycling Agreement, we will facilitate our customers' sustainability goals through providing treated, blended and recycled water for their operations. Through the Hydrosource Recycled Water Supply Agreement, Hydrosource has access to up to 3 MMBbls/d of produced water from one of the largest water disposal company's produced water pipeline system in New Mexico. Through these activities, produced water that would otherwise require reinjection is treated, blended and recycled for further use in our customers' activities. In addition to those activities, as emerging technologies develop, we believe there will be future opportunities for the beneficial reuse of water in residential and municipal, agricultural, industrial and technology, aquifer replenishment and lithium extraction applications, which could provide us with additional revenue opportunities. We evaluate new opportunities on an ongoing basis, and we believe that we are well positioned to take advantage of such opportunities given our extensive infrastructure network.

**Our Assets** 

The map below shows our controlled acreage and selected assets in the Delaware Basin and Midland Basin.

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**EagleRock Assets**

![LOGO](g37594g02k01.jpg)

*Source: Enverus, US Department of Transportation* 

The table below contains information regarding our acreage and assets in each of the Delaware Basin and Midland Basin as of December 31, 2025.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Combined<br>Acres<br>Owned/<br>Controlled** | **Commercial<br>Water Rights<br>and Supply<br>Capacity<br>(Bbls/y)** | **Current<br>Above<br>Ground<br>Storage<br>Capacity<br>(Bbls)** | **Mining<br>Sites** | **SWDs** | **Produced<br>Water<br>Handling<br>Capacity<br>(MBbls/d)** |
|  Delaware Basin | 193875 | 44337513 | 11375000 | 26 |  |  |
|  Midland Basin | 112261<sup>(1)</sup> | 167802272<sup>(2)</sup> | 16930739 | 3 | 21<sup>(3)</sup> | 400 |

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(1) Includes up to approximately 70,000 acres in which we will have an interest pursuant to an acreage dedication related to
our Midland Basin water infrastructure assets.

(2) Consists of commercial on-ranch water supply of approximately 101,802,272 Bbls
and sourced off-ranch water supply of 66,000,000 Bbls annually.

(3) Total SWDs consist of 3 in-service off-ranch, 4 permitted off-ranch, 13 royalty-only on-ranch, and 1 permitted royalty-only on-ranch.

We own or control approximately 236,000 total surface acres across the Permian Basin, the most active oil and natural gas development and production region in the United States. In addition, we have an interest in up to approximately 70,000 acres pursuant to an acreage

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dedication related to our Midland Basin water infrastructure assets. We do not own the mineral interests that underlie our surface acreage. Our surface acreage is concentrated in two sub-basins of the Permian Basin, the Delaware Basin in New Mexico and the Midland Basin in Texas. Our critical acreage mass in these prolific sub-basins affords us with broader diversification and optionality to access unique trends in each region while also providing multiple avenues to further grow our platform. Through our land position and integrated infrastructure assets, we generate revenue and royalties from completion and production-based activities, including surface damages, ROWs, easements, commercial water supply and produced water recycling, handling and disposal and other surface and subsurface related activities by leading operators on our owned and controlled acres. As of January 2026, many of the most active operators in the Delaware and Midland Basins were actively drilling or have permits to drill on our surface acreage, including Chevron Corporation, ConocoPhillips Company, Devon Energy Corporation, Diamondback Energy, Inc., Double Eagle, EOG Resources, Inc., ExxonMobil Corporation, Matador Resources Company, Occidental Petroleum Corporation and Permian Resources Corporation. We believe these and other operators have significant remaining inventory of drilling locations to drill on our surface acreage based on information from Enverus.

The table below represents current sources of revenue for our assets in the Delaware and Midland Basins.

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| | | |
|:---|:---|:---|
| **Activity** | **Region** | **Fee / Royalty Type** |
|  **Oil & Gas Drilling and Production** | **Oil & Gas Drilling and Production** | **Oil & Gas Drilling and Production** |
|  Produced and recycled water handling and storage\* | All regions | Fixed fee, volume-based royalty |
|  Water sales\* | All regions, Off-Ranch | Per barrel fee / royalty |
|  Salt water disposal wells | All regions | Volume-based royalty / surface fee |
|  Sour gas treating | Delaware | Volume-based royalty / surface fee |
|  Roads, pads and access easements | All regions | One-time + recurring fee |
|  Caliche | All regions | Cubic yard-based royalty |
|  **Other Land Uses** |  |  |
|  Agricultural grazing leases | All regions | Lease, fixed fee, royalty |
|  Commercial real estate leases | All regions | Lease |

---

\* Prior to this offering, produced and recycled water handling and storage have been handled by Hydrosource and DE Flow. Following this offering, water sales handling revenue will be generated through the Hydrosource Recycling Agreement and the DE Flow WSMA. Integrated water handling revenue generated from off-ranch pipeline in the Midland Basin. 

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The table below represents selected potential future sources of revenue for our assets in the Delaware and Midland Basins.

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| | | |
|:---|:---|:---|
| **Potential Future Activities\*** | **Region** | **Fee / Royalty Type** |
|  **Oil & Gas Drilling and Production** | **Oil & Gas Drilling and Production** | **Oil & Gas Drilling and Production** |
|  Sand mining | All regions | Per unit royalty |
|  Solid waste disposal | All regions | Royalty |
|  **Other Land Uses** |  |  |
|  Behind the meter power generation | All regions | Lease, royalty |
|  Wind farm leases | All regions | Lease, royalty |
|  Solar farm leases | All regions | Lease, royalty |
|  Battery storage & microgrids | All regions | Lease, royalty |
|  Data centers | All regions | Lease |
|  Transmission lines | All regions | One-time + recurring fee |
|  Beneficial reuse | All regions | Lease, royalty |
|  CO<sub>2</sub> sequestration | All regions | Lease, royalty |
|  Cryptocurrency mining | All regions | Lease, royalty |

---

\* We do not currently engage in the activities identified as potential future activities. These activities represent opportunities we may pursue in the future but for which we have no binding agreements, committed capital or definitive development timelines. There can be no assurance that we will pursue any of these activities or that, if pursued, they will generate material revenues. Our ability to pursue these activities is subject to numerous risks and uncertainties, including regulatory approvals, market conditions, customer demand, competition, technological developments and our ability to negotiate favorable commercial terms. See "Risk Factors—Risks Related to Our Business and Operations—We may not be successful in pursuing additional commercial opportunities on our land from non-traditional energy production and other users." 

**Delaware Basin Assets** 

***Delaware Basin Land***

As of December 31, 2025, we owned or controlled approximately 194,000 acres in and near the core of the Delaware Basin in New Mexico. Our acreage spans across four parcels in Lea and Eddy Counties, New Mexico, which we refer to as the Desert Ram North, Desert Ram South, Limestone and Basin Ranches.

Our Delaware Basin acreage is shown below, together with the estimated ultimate recovery ("EUR") per foot of lateral length ("EUR/ft") of producing wells, according to Enverus, as of January 2026. EUR is the total amount of oil and natural gas expected to be recovered over the life of active wells. For comparability purposes, we show EUR/ft because lateral lengths vary, and wells with longer lateral lengths tend to have higher EUR/ft.

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**Estimated Ultimate Recovery (EUR)**![LOGO](g37594g02k03.jpg)

*Source: Enverus*

Our Delaware Basin acreage encompasses approximately 37,000 acres of fee land, approximately 64,000 acres of state leased land and approximately 92,000 acres of federal leased land for a total of approximately 194,000 combined acres. This largely contiguous acreage position provides us control to support customers and their operations and allows us to optimize our revenues within the perimeter of the controlled acreage.

Our Delaware Basin land generates revenue primarily by charging fees and royalties for resource sales and surface use and damages. Under our SUAs with operators, substantially all customers that operate on our fee acreage, and in certain instances our controlled surface acres, are obligated to purchase all available resources from us, including water and caliche. In addition, our Delaware Basin acreage has substantial mining operations, including 26 sites for selling caliche and topsoil to various oilfield service providers.

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On our Delaware Basin land, we have access to up to 80.8 MMBbls of water per year from various sources. Our commercial water permits with the state of New Mexico permit us to produce and sell up to 44.3 MMBbls of commercial water per year. Our Delaware Basin land possesses a unique geologic water feature under the San Simon Sink, which holds substantial water reserves, and we have an existing lay-flat pipeline from the Texas border to one of our Delaware Basin land positions, along with additional storage infrastructure, that allows us to access an additional 36.5 MMBbls of commercial water per year. Furthermore, we have access to purchase similar off-ranch water volumes from several other suppliers, including the right to obtain up to 3 MMBbls/d of produced water, that may be treated, recycled and supplied to customers. Our Delaware Basin land has approximately 11.4 MMBbls of above ground water storage capacity and operates several trucked water stations that can constantly be refreshed from our water wells, helping us maintain efficiency and flowrate to our customers.

Additionally, our Delaware Basin land has a permit for what would be the fourth largest solid waste facility in the Permian Basin with over 21 million cubic yards of capacity, strategically located in an area of the Delaware Basin that has extensive development opportunities and many decades of remaining inventory, which we believe has the potential to drive future organic revenue growth for us. Under our Hydrosource Recycling Agreement, Hydrosource will have the exclusive right for two years following this offering to develop that facility and, if developed, we expect to receive a royalty equal to approximately 10% of the facility's revenues. Furthermore, we believe our Delaware Basin land has a significant amount of commercially potent frac sand in areas proximate to upstream development, thereby reducing transportation costs and associated risks.

Activity on our Delaware Basin acreage has remained resilient and continues to capture a growing share of Lea and Eddy Counties' drilling activity, even as commodity prices have declined. The chart below shows the percentage of total rigs operating in Lea and Eddy Counties that are located on EagleRock acreage each quarter. For example, in the fourth quarter of 2025, approximately 91 rigs were active across Lea and Eddy Counties, of which 20 rigs were operating on EagleRock acreage, representing approximately 22% of total regional activity. Notably, EagleRock's share of active rigs increased from the mid-teens to over 20% during the last four quarters, demonstrating sustained and growing operator activity on our acreage even during commodity price downturns.

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**EagleRock Share of Rigs in Lea & Eddy Counties**![LOGO](g37594g02p04.jpg)

*Source: Enverus, EIA* 

We believe our Delaware Basin land has significant potential for future activity, supported by 558 active horizontal drilling permits from various operators on our controlled acreage. According to NSAI, as of December 22, 2025, approximately 12,743 identified well locations across four formations exist within a 10-mile radius of our surface acreage in our Delaware Basin land. We own approximately 37,000 acres of fee land in New Mexico, and we control approximately 157,000 acres of land through our grazing and mining leases with the State of New Mexico and the Bureau of Land Management ("BLM"). Our leasehold interests in New Mexico state lands are generally grazing and mining leases that grant us rights with respect to the surface for periods ranging from one to five years from inception, and are renewable on an annual basis at our discretion. Under New Mexico law, the holder of an easement or right-of-way is required to compensate the lessee for the reasonable value of any measurable damage incurred upon improvements or other property belonging to the lessee. As the agricultural lessee, we have leased possession and use of the grazing interest. When the surface is excavated or occupied by a surface use implemented by a third party, we receive payments to compensate us for the impairment of value and costs to repair the physical damage. Additionally, our leasehold interests in federal lands with the BLM are

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generally grazing leases that grant us rights with respect to the surface for a period of approximately 10 years from inception. As part of our land management strategy, we leverage our total acreage footprint in driving our resource sales through our SUAs to our customers. Where our SUAs grant exclusive rights for commercial resources over land we control, the terms of those SUAs extend to leased land, and our customers are obligated to purchase resources such as water and caliche from us.

***Delaware Basin Infrastructure***

Our Delaware Basin infrastructure consists of a number of pipelines, pits, ponds and other storage systems used to facilitate our resource sales at strategic points within and around our Delaware Basin acreage. Additionally, our acreage contains significant third-party infrastructure, which facilitates our customers' activity on our land. The map below illustrates our owned and controlled acreage and infrastructure in the Delaware Basin, and other oil and gas activities in the Delaware Basin.

**EagleRock Delaware Basin Assets**![LOGO](g37594g02p06.jpg)

*Source: Enverus* 

The Delaware Basin is characterized by high water production and high water to oil ratios ("WORs") across formations, which results in significantly more produced water as a byproduct of production activities. Produced water originating in New Mexico generally must be transported to reinjection locations in Texas for disposal or recycled for use in drilling and completion activities. Our Hydrosource Recycling Agreement will position us to meet our customers' demand for treated, blended and recycled water through Hydrosource's water recycling infrastructure. Under the Hydrosource Recycling Agreement, we will earn a royalty for each barrel of produced water Hydrosource treats and recycles for oil and gas customers on our land. Our Delaware Basin water infrastructure assets are proximate to areas of high WORs, as depicted in the map below.

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**Water to Oil Ratios in the Delaware Basin**![LOGO](g37594g02k08.jpg)

*Source: Enverus* 

In addition to oil and gas activity, we believe our Delaware Basin land has significant potential for future electricity transmission development, which we believe will attract new customers to our land as access to electricity increases. For instance, Oncor Electric Delivery Company ("Oncor") is in the process of developing a 765kV transmission line that is expected to traverse portions of our Delaware Basin acreage, which we anticipate will result in fees for the related easement across our land. In addition, we believe the availability of reliable power connectivity will further expand the uses of our land and allow us to attract new customers. Oncor anticipates the transmission line, if approved by regulators, will be energized by December 2028.

Additionally, the United States Department of Energy is considering designating land that crosses our acreage as a National Interest Electric Transmission Corridor (the "Transmission Corridor"). The map below shows the Transmission Corridor's extent in Lea and Eddy County with proximity to our Delaware Basin land. We believe any future development of the Transmission Corridor could significantly increase the value and alternative uses of our surface.

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**EagleRock Delaware Basin Acreage and Transmission Corridor**![LOGO](g37594g02k09.jpg)

**Midland Basin Assets** 

***Midland Basin Land***

As of December 31, 2025, we owned approximately 42,000 acres in the Midland Basin, which is further supplemented by the DE Acreage Dedication. The Midland Basin benefits from a favorable regulatory environment, extensive midstream connectivity and access to power and transportation infrastructure, which, together with its extensive, deep inventory of drilling locations, make the Midland Basin one of the most prolific areas for ongoing energy development and infrastructure investment. Our Midland Basin acreage spans across owned parcels in Martin, Howard, Reagan, Glasscock and Upton Counties in Texas.

Our Midland Basin land generates recurring revenue from long-term SUAs, water resources and produced water handling and disposal, caliche royalties, surface leases and infrastructure easements supporting upstream, midstream, downstream and power development, and it complements our Delaware Basin acreage by adding scale, geographic balance and exposure to geologic formations that are more conducive to produced water reinjection as compared to our Delaware Basin acreage. Our Midland Basin land has approximately 300 MBbls of refresh flowrate per day or approximately 102 MMBbls per year of commercial water, and a water storage capacity of 16.9 MMBbls, including 5.5 MMBbls of off-ranch storage capacity. Our Midland Basin acreage also benefits from its proximity to Midland and Odessa, Texas, its proximity to the Interstate 20 corridor and several contiguous development corridors. Our Midland Basin land hosts critical ROWs, easements and fee tracts that support ongoing pad development, pipeline construction, power transmission and data infrastructure buildout for both energy and industrial applications in Texas.

Our Midland Basin land also hosts wind lease options with a potential combined 379 MW build-out, which would be supported by a base lease rate and royalty structure, with minimum

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projected lease revenue terms of 36 years. Additional income sources from our Midland Basin land include resource sales to customers operating within a certain mile-radius from our land and incremental royalty revenues from our infrastructure in and adjacent to our Midland Basin land that are operated by our operating partner, DEF Operating.

***Midland Basin Infrastructure***

Our Midland Basin assets also include water supply and produced water infrastructure in and adjacent to our Midland Basin land. Our infrastructure consists of a number of SWDs, water storage facilities, water wells and water pipelines used to facilitate delivery of water for drilling and completion activities, and the handling and disposal of produced water. Our water infrastructure that is adjacent to our Midland Basin acreage position is operated by one of our operating partners, DEF Operating, from which we receive royalty revenue under a long-term contract with a 10-year term and minimum annual royalty commitments. We also expect to receive royalties from Hydrosource in connection with its recycling of produced water sold in and around our land in the Midland Basin. Our produced water infrastructure, with peak handling capacity of approximately 400 MBbls/d, is strategically located in the Midland Basin, which benefits from access to abundant pore space, a favorable regulatory environment and advantaged geologic characteristics. Our supply water and produced water infrastructure portfolio serves numerous major operators, including large, well-capitalized producers with durable development programs, and is supported by 42,000 of our owned acres and the DE Acreage Dedication. The presence of these operators underscores the strategic importance of our assets and presents opportunities to capture incremental revenue streams as development activity continues.

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The map below illustrates our acreage and material assets in the Midland Basin.

**EagleRock Midland Basin Assets**![LOGO](g37594g24d22.jpg)

*Source: Enverus* 

The Midland Basin is also characterized by high levels of water production across formations. While the Midland Basin's primary producing formations generally have lower water production and WORs, its upside formations have comparatively higher water production and WORs, which would result in significantly more produced water as a byproduct of production activities over time. Our produced water handling and disposal infrastructure has multiple SWD wells with significant valuable pore space in more stable geologic areas for the development of additional locations across our Midland Basin assets, which will enable us to meet customers' growing demands for produced water disposal. Our Midland Basin water infrastructure assets are proximate to areas of high WORs, as depicted in the map below.

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**Water to Oil Ratios in the Midland Basin**![LOGO](g37594g02k13.jpg)

The Midland Basin is also distinguished by its consistent well productivity. EUR/ft benchmarking highlights Upton and Reagan Counties as among the highest-performing areas in the Permian Basin, with well results that support extended-reach laterals, dense development spacing and multi-zone economic viability across the Spraberry and Wolfcamp formations. Our Midland Basin land is concentrated within these high-quality geologic corridors, positioning us to benefit from continued development activity and long-term inventory depth in one of the most attractive oil-weighted regions in North America. The graphic below depicts the EUR/ft of lateral length from oil and natural gas wells on and near our land position, according to Enverus, as of January 2026.

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**Estimated Ultimate Recovery (EUR)**![LOGO](g37594g01p39.jpg)

*Source: Enverus* 

**Our Business Model** 

We focus on royalty-based opportunities with minimal capital expenditure exposure, high margins and minimal operating costs and risks that generate substantial Free Cash Flow, with limited exposure to commodity price changes. Our land management strategy is to actively increase the amount of revenue-generating activities on our land through resource sales, surface and pore space leases and royalties and alternative land uses beyond oil and gas development, underpinned by SUAs with a diversified group of large, well-capitalized producers and customers. We believe our predominantly fee-based SUAs, along with long-term royalty agreements with minimum annual revenue commitments, will facilitate stable cash flows through a variety of commodity price cycles.

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**Our Relationship with Our Operating Partners** 

Our relationships with our operating partners, DEF Operating and Hydrosource, allow us to focus on our land management strategies while we continue to realize the benefits of the available resources and long-term development opportunities on and around our land.

The DE Flow WSMA and Hydrosource Recycling Agreement described below are new agreements that will be entered into in connection with this offering. While the businesses we are acquiring (including DE Flow and Shallow Valley Ranch) have historically generated revenues from water-related activities, the royalty revenue structure described in this prospectus reflects the terms of these new agreements, which will supersede any prior arrangements and govern our relationship with DEF Operating and Hydrosource on a go-forward basis.

***Double Eagle***

Double Eagle is an independent oil and natural gas company focused on development and production throughout the Permian Basin. The company is backed by equity capital commitments from EnCap Investments L.P. ("EnCap"), Double Eagle Management and other strategic investors. Double Eagle continues to pursue acquisitions and ambitious development programs in the Permian Basin, supported by its strategic partnership with EnCap, strong cash flows through operations, as well as available debt facilities. Additionally, Double Eagle has historically maintained consistent drilling activity through a variety of commodity price cycles, supported by its private ownership structure and flexible capital base.

DEF Operating is a subsidiary of Double Eagle and will be a key operating partner of ours focused on providing critical water infrastructure across all phases of oil and gas development for Double Eagle and neighboring operators. Our DE Flow WSMA will be structured to provide long-term, predictable, largely commodity price-insulated cash flows through fixed-fee and royalty constructs tied to oil and gas activity on the Double Eagle operated acreage footprint. Our relationship will be anchored by a long-term agreement with an initial term of 10 years and minimum annual royalty commitments, which is expected to provide predictable cash flows. DEF Operating's activities on and around our acreage have historically supported recurring surface royalties under long-term contracts with acreage dedications from the operators.

***Hydrosource***

Hydrosource is focused on water management and permitting solutions. Our relationship with Hydrosource will support land development, including management of water logistics for completions, recycling and other strategic long-term capital investments that will further optimize the development of our acreage. As our strategic water recycling partner, Hydrosource will promote and manage the sale of treated, blended and recycled water across our land and area of mutual interest to meet the demands of customers, from which we will earn royalties. Additionally, Hydrosource has access to up to 3 MMBbls/d of produced water under the Hydrosource Recycled Water Supply Agreement with one of the largest, well-capitalized produced water disposal companies in New Mexico through 300 access points along such company's midstream assets co-located on our acreage. Hydrosource currently maintains 1 MMBbls/d of water recycling capacity, and the modular design of its recycling system allows it to move assets and expand capacity.

**Our Competitive Strengths** 

We believe that the following competitive strengths will allow us to successfully execute our business strategies and achieve our business objectives.

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***Balanced portfolio with strategically located assets in both the Delaware and Midland sub-basins.***

Our diversified portfolio is balanced across the Permian Basin's two prolific sub-basins, the Delaware Basin in New Mexico and the Midland Basin in Texas, which are the most active and inventory-rich development basins in North America. During the fourth quarter of 2025, oil and gas production from the Permian Basin represented approximately 46% of U.S. lower 48 states production. Large, well-capitalized public and private operators, including Chevron Corporation, ConocoPhillips Company, Devon Energy Corporation, Diamondback Energy, Inc., Double Eagle, EOG Resources, Inc., ExxonMobil Corporation, Matador Resources Company, Occidental Petroleum Corporation and Permian Resources Corporation, operate numerous locations and have a large undrilled inventory of locations on our land, and numerous other large operators frequently utilize our water infrastructure assets, both of which generate royalty revenue streams and contribute to the strength of our portfolio and durability of our revenue streams. Our expansive land footprint and available resource offerings across the Permian Basin also position us to take advantage of future growth opportunities in emerging industries such as power generation, transmission and storage, data centers and associated infrastructure.

Our Delaware Basin surface acreage is located in the core of the Delaware Basin's lowest cost and most prolific remaining oil and natural gas resources and is primarily operated by large, well-capitalized public operators. The nature of our SUAs and other similar agreements and largely contiguous acreage positions us to benefit from the ongoing development of these resources through royalties that are not directly impacted by commodity prices. Our primary revenue streams on our Delaware Basin land are not directly dependent on access to SWD wells and produced water takeaway systems that may be impacted by potential constraints, including produced water pore space limitations, over-pressurization of subsurface reservoirs and regulatory risks. Instead, a meaningful portion of our Delaware Basin revenue streams result from water and resource sales, including from the beneficial reuse of produced water following treatment and recycling by Hydrosource, with the potential for our pore space to be utilized for AGI.

On our Midland Basin acreage, where regulatory and geologic conditions are more favorable, we have abundant pore space to support our existing SWDs and the development of multiple additional SWDs to support our customers' growing produced water demand. Our Midland Basin assets also offer diversified exposure to future upstream development through both water resources supply and produced water handling as well as non-oil and gas revenue streams, including potentially from wind leases with a combined 379 MW build-out. Among upstream-related activities, these assets derive a significant portion of their revenue from many large, well-capitalized operators and have balanced exposure to both production and development activity. In addition, our Midland Basin land generates royalties from power infrastructure and other supporting infrastructure development on our land.

***Diverse revenue streams underpinned by a large percentage of fee-based royalties and surface use agreements.***

Our business model is built on recurring, contracted, long-term, fee-based revenue streams with a diverse group of large, well-capitalized producers and other customers tied to surface use of our land. We generate revenue from granting ROWs, easements and rights to conduct surface use activities, sourcing and delivering water for completions, handling, transporting, recycling and disposing of produced water, AGI pore space leases and providing access to mining sites for the sale of caliche and topsoil to customers. Many of our SUAs allow us to be the exclusive provider of our resources to upstream operators on our fee land, as well as select lands we control. We will also generate revenue under our Hydrosource Recycling Agreement and DE Flow WSMA when our customers utilize our and

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our operating partners' water infrastructure assets, which, in the Midland Basin, will be supported by long-term acreage dedications. These activities support multiple sources of revenue, which are not directly impacted by commodity price volatility and require minimal ongoing operating or maintenance expenditures from us.

Hydrosource's long-term contracted access to produced water and technical expertise positions us for significant long-term value creation. While beneficial reuse of produced water remains in the conceptual and early-development phase, we believe it holds meaningful economic potential over the coming years. Emerging applications include residential and municipal use, agricultural irrigation, industrial and technology-sector demand, aquifer replenishment and lithium extraction. Together, these opportunities represent a transformative pathway for converting produced water into a scalable, revenue-generating resource.

***Multiple potential uses of land, including power and technology, to create long-term revenue streams.***

Industrial activity on our land requires the development of infrastructure, which in turn can be used to support a variety of uses beyond the current activity. Our proactive management strategy seeks to optimize the amount of activity utilizing the same surface acreage on our land over the long-term. As a land management company, we facilitate development of our land and resources by seeking to expand existing infrastructure and operations on our land through frequent engagement with our customers, identifying novel uses of our land and resources and attracting potential customers and operating partners to develop new projects on our properties. Additionally, we believe our land is well suited for our entrepreneurial management team to work with customers to provide dedicated surface acres for data center infrastructure, power generation, transmission and storage facilities and related commercial development, which will improve our high margin royalty-based cash flows. In turn, the development on our land augments our ability to attract incremental activities as new customers make use of existing infrastructure. For example, as roads, power and other infrastructure are developed on our acreage, subsequent development by other customers is facilitated.

We generate a significant portion of our cash flows under long-term contracts with customers and operating partners. In the Midland Basin, we expect to generate significant cash flows under our DE Flow WSMA with DEF Operating that will provide for minimum annual royalty payments from our water infrastructure system, which will include supply water sales and produced water handling and disposal. This system is supported by long-term acreage dedications with Double Eagle, which continues to be one of the most active private operators in the Midland Basin. Double Eagle has a proven track record of continuing to develop oil and gas assets in a variety of commodity price environments due to its private ownership structure and flexible capital base. The expansive DE Flow water system allows connections with third parties for continued growth as well. Our Midland Basin water infrastructure system is located in an area with low seismicity, which allows the water infrastructure system to maintain its quality through consistent water sales and produced water handling and disposal. We believe there is significant remaining inventory with attractive break-even economics that will continue to support this asset and our royalty-based revenue stream for the long term. Similarly, our Hydrosource Recycling Agreement will generate consistent revenue and cash flow from the sale of water to producers across all of our acreage and will include a five-year minimum royalty commitment.

In addition to the commercial uses of our land, we retain three partners to oversee an over 1,150 head cattle grazing operation on our land in New Mexico. As a part of these operations, we seek to operate to benefit our land and its wildlife and to partner with local government and other groups to further these goals.

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***We have an entrepreneurial management team with a track record of building businesses and creating value.***

Our management team has several decades of combined experience in the energy industry, with a proven history of value creation specifically in the Permian Basin.

Our management team has sought, and continues to seek, opportunities to efficiently commercialize and optimize our land position. Since commencement of our operations in 2024, our management team has successfully acquired and/or integrated approximately 200,000 acres and the related land management operations, while actively unlocking incremental value by increasing the overall combined profitability of those operations, while also creating or identifying new sources of revenue with minimal capital investment. In addition, we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidated fragmented SUAs with various customers while renegotiating key commercial terms that increased revenue
activities on our land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased our revenue stream through the 15-year, Hydrosource Recycled Water Supply
Agreement between Hydrosource and one of the largest produced water disposal companies in New Mexico that allows us and our operating partners access to up to 3 MMBbls/d of produced water that can be treated and/or recycled by Hydrosource and sold
to customers on and off our land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased our land footprint to approximately 236,000 acres across the Permian Basin, which is further supplemented by the
DE Acreage Dedication, through the strategic combination of the L&E, Shallow Valley and Double Eagle assets as part of this offering, with the goal of developing one of the largest land management companies that supports oil and gas development
in the Permian Basin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• achieved the above strategies while maintaining a strong balance sheet.

**Our Business Strategies** 

Our principal business objective is maximizing risk-adjusted total return to our shareholders by growing Free Cash Flow with minimal capital expenditures and operational risks. We intend to pursue the following business strategies to achieve this objective.

***Increase cash flow per share and generate differentiated returns for our shareholders.***

We intend to sustainably grow cash flow per share for our shareholders. Because our business model is largely fee-based and capital-light, we expect to generate significant Free Cash Flow relative to our capital investment needs. We believe focusing on per-share cash flow, rather than simply growing volume, aligns our strategy with long-term shareholder returns. We intend to grow per-share cash flow by pursuing high return growth opportunities. We also intend to seek to return capital to our shareholders through dividends, although we have not established a formal dividend policy.

***Promote efficient development of our assets through both existing and novel approaches to utilize our land and resources.***

We will continue to actively manage and develop our acreage to maximize revenue and identify higher and better uses of our land. We intend to continue to grow our existing diversified revenue streams, which currently include royalties and fees from upstream operations on our acreage, royalties from water recycling and produced water handling and treatment and revenues from the sale of surface resources such as caliche. In addition, through the combination of L&E, Shallow Valley and

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Double Eagle assets as part of this offering, we will pursue new opportunities to enhance the use of our resources both across the combined footprint and among our operating partners. We also believe revenue generation opportunities exist from ancillary surface use activities, such as sand mining, solid waste disposal and pore space leases. We believe that our ability to offer a single commercial interface for land access, water sourcing and produced water logistics is a competitive advantage that reduces downtime and cost for operators, making our acreage the preferred platform for multi-year development programs for operators. Additionally, the water recycling services offered by our operating partners on our land provide our operators with access to a commercial solution to assist them with managing increasing produced-water volumes, as well as the ability to meet their individual sustainability goals. We will also seek to further develop and grow our non-oil and gas revenue streams, which we believe include traditional and renewable power generation, transmission and storage and data center infrastructure. Our goal is to efficiently increase revenue by maximizing fee-generating activities on the same land while minimizing permitting friction for our customers.

***Pursue accretive acquisitions to enhance our asset base.***

We intend to reinvest our cash flow accretively into our business by evaluating and pursuing selective acquisitions, potentially including acquisitions from the Existing Owners, that are complementary to our strategy and pursuing our capital-light development strategy on acquired acreage to increase our stable cash flow base. For example, Hydrosource recently acquired approximately 50,000 surface acres in Lea County, New Mexico that is proximate to our existing land holdings in the Delaware Basin. While no agreement or understanding exists between us and Hydrosource with respect to our acquisition of that acreage and no assurance can be given that any such agreement may be reached in the future, we may seek to acquire such acreage from Hydrosource. We intend to target opportunities that create near-term cash flow from the use of our surface acreage and can be quickly commercialized through our existing contract structure without significant incremental capital. We believe disciplined expansion of our land position can unlock new revenue opportunities and strengthen our strategic positioning in the sector. We intend to remain selective and pursue transactions that we believe will be accretive to cash flow per share.

***Maintain a prudent balance sheet with capital flexibility.***

We intend to maintain a prudent financial profile to preserve strategic flexibility. Our asset-light model allows us to support customer activity without large upfront capital requirements to support development of our acreage. We expect to maintain our balance sheet strength to continue investing in commercializing and optimizing our existing land position, pursue strategic, high-return bolt-on opportunities and return capital to shareholders, including through payment of dividends and/or opportunistic repurchases. Our strategy will continue to focus on growing our land position, a non-depreciable asset, with significant economic cash flow generation for multiple years. We believe maintaining balance sheet discipline positions us to act opportunistically in a basin where surface access, water logistics rights and ROW control are increasingly valuable to operators.

***Capitalize on our relationship with Hydrosource and DEF Operating to increase revenue.***

Our operating partners, Hydrosource and DEF Operating, operate integrated water midstream systems in the Delaware Basin and Midland Basin. These assets include over 140 miles of pipeline and 6 produced water handling facilities capable of handling over 400 MBbls/d of produced water. Additionally, Hydrosource has access to up to 3 MMBbls/d of produced water under the Hydrosource Recycled Water Supply Agreement.

Our DE Flow System is designed for operational redundancy, customer flow assurance and recycling and redelivery across our Midland Basin position, and we believe it is a leader among the

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next generation of water handling facilities, including water recycling, enhanced evaporation and desalination facilities, which could potentially provide incremental surface use revenues and water sales royalties to us.

Our relationships with DEF Operating and Hydrosource allow us to focus on our land management strategies while we continue to realize the benefits of the available resources and long-term development opportunities on and around our land. We expect to grow organically alongside Hydrosource and DEF Operating as they increase operational capacities on our surface acreage. For each incremental barrel of sourced or produced water recycled by Hydrosource on our land, we will earn additional revenue while investing minimal capital. We have also been issued a permit to place a solid waste facility on our land, and Hydrosource has a two-year option to develop that facility. Additionally, should we choose to acquire additional surface acreage, we may be able to enhance returns by entering into additional commercial agreements with Hydrosource and/or Double Eagle when our respective business interests align.

**Corporate Reorganization** 

EagleRock was formed as a Texas limited liability company by L&E on December 1, 2025. EagleRock has elected to be treated as a corporation for U.S. federal income tax purposes. EagleRock has not conducted and will not conduct any material business operations prior to the completion of the Corporate Reorganization, other than certain activities related to this offering.

Following the Corporate Reorganization, EagleRock will be the sole managing member of OpCo, will be responsible for all operational, management and administrative decisions relating to OpCo's business and will consolidate financial results of OpCo and its subsidiaries. OpCo will own all of the outstanding membership interests in our operating subsidiaries and will operate our assets through these various subsidiaries.

In connection with the completion of this offering, the following transactions have occurred, or will occur, in substantially the following order, which are collectively referred to in this prospectus as our "Corporate Reorganization":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OpCo will be formed by EagleRock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each of L&E, the Shallow Valley Owners and Double Eagle (collectively, the "Existing Owners") will
contribute cash to EagleRock in exchange for     Class B shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• L&E will contribute all of its subsidiaries (other than the Excluded Assets) to OpCo in exchange for
    OpCo Units and OpCo's assumption of the Predecessor Credit Facility (as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each of the Shallow Valley Owners and Double Eagle will contribute certain of their subsidiaries to OpCo in exchange for
    OpCo Units and     OpCo Units, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each of EagleRock's and OpCo's operating agreements will be amended and restated to facilitate this offering
(the transactions set forth in this and the second bullet point above being the "Up-C Reorganization");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to a Warrant Exercise Agreement (the "Warrant Exercise Agreement"), each holder of L&E Warrants
(including funds and accounts managed by TCW Asset Management Company LLC ("TCW")), CCLF Holdings (D41) LLC and AWC Aqua, LLC (collectively, the "TCW Entities") will exercise a portion of its L&E Warrants to purchase
L&E units (the "Exercised Warrants") and forfeit the remaining portion of such warrants (the "Forfeited Warrants"), which will be irrevocably cancelled, immediately following which (i) L&E will distribute
    OpCo

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Units and a corresponding number of Class B shares to the TCW Entities in redemption of the L&E units received in respect of the Exercised Warrants, (ii) each Warrant Agreement will terminate and (iii) certain of such TCW Entities (the "Rollover TCW Entities") will merge with one or more newly formed subsidiaries of EagleRock and receive one Class A share in exchange for each OpCo Unit (and Class B share) it holds; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EagleRock will issue     Class A shares in this offering to the public, representing 100% of the
economic rights in EagleRock, in exchange for the net proceeds of this offering at a price of $ per Class A share (the midpoint of the price range set forth on the cover page of this prospectus);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EagleRock will contribute all of the net proceeds from this offering (including any net proceeds from the exercise of the
underwriters' option to purchase additional Class A shares) to OpCo in exchange for a number of OpCo Units equal to the number of Class A shares issued in this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OpCo will use the net proceeds (including any net proceeds from the exercise of the underwriters' option to purchase
additional Class A shares) from this offering, as described in "Use of Proceeds."

To the extent the underwriters' option to purchase additional Class A shares is exercised in full or in part, EagleRock will contribute the net proceeds therefrom to OpCo in exchange for an additional number of OpCo Units equal to the number of Class A shares issued pursuant to the underwriters' option. OpCo intends to use such proceeds as described in "Use of Proceeds."

After giving effect to the Corporate Reorganization, this offering and assuming the underwriters' option to purchase additional Class A shares is not exercised:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Existing Owners and the TCW Entities will own all      of our Class B shares (with
    ,    ,     and     Class B shares held by L&E, Double Eagle, the Shallow Valley Owners and the TCW Entities, respectively), and the TCW Rollover
Entities will own     % of our Class A shares, representing     % of our common shares (or     %,     %,    % and
    % held by L&E, Double Eagle, the Shallow Valley Owners and the TCW Entities, respectively);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investors in this offering will own     of our Class A shares, representing
    % of our common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EagleRock will own an approximate     % interest in OpCo; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Existing Owners and the TCW Entities will own an approximate     % interest in OpCo, including
the indirect interest in OpCo owned by the Rollover TCW Entities (or     %,     %,     % and     % held by L&E, Double Eagle, the Shallow
Valley Owners and the TCW Entities, respectively).

The diagrams under "—Organizational Structure" below depict a simplified version of our organization and ownership structure immediately before and after giving effect to this offering and the Corporate Reorganization.

For further details regarding the L&E Warrants, please see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Predecessor Liquidity and Capital Resources—L&E Warrants."

For further details on our agreements with OpCo and its affiliates, please see "Certain Relationships and Related Party Transactions."

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**Recent Developments** 

***Preliminary First Quarter 2026 Financial Results***

The following preliminary financial information presents our estimated financial results on a pro forma basis for the three months ended March 31, 2026. This presentation includes ranges for these preliminary financial results because closing procedures for the three months ended March 31, 2026 are not yet complete. These estimated ranges are preliminary and unaudited and are thus inherently uncertain and subject to change.

As customary quarterly close and review procedures as of and for the three months ended March 31, 2026 are completed, there can be no assurance that the final results for this period will not differ from the estimates presented below. During the course of the preparation of our consolidated financial statements and related notes as of and for the three months ended March 31, 2026, we may identify items that could cause our final reported results to be materially different from the preliminary financial estimates presented below. For a discussion of important factors that could cause actual results to differ from our preliminary estimates, see "Risk Factors," "Cautionary Note Regarding Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations."

These estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with GAAP. In addition, these preliminary estimates are for informational purposes only and are not necessarily indicative of the results to be achieved as of any future date or for any future period. The preliminary estimated unaudited financial results included in this prospectus have been prepared by, and are the responsibility of, our management. Our independent registered public accounting firm, Deloitte & Touche LLP, has not audited, reviewed, compiled or performed any procedures with respect to the preliminary financial results. Accordingly, Deloitte & Touche LLP does not express an opinion or any other form of assurance with respect thereto.

Set forth below is a range of estimates of our preliminary financial results for the three months ended March 31, 2026 on a pro forma basis:

---

| | |
|:---|:---|
| **Pro Forma** | **Pro Forma** |
| **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| **Low** | **High** |

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**Our Common Shares** 

Our Second Amended and Restated Company Agreement (the "LLC Agreement") will provide for two classes of common shares, Class A shares and Class B shares, representing limited liability company interests in us. Only our Class A shares will have economic rights and entitle holders thereof to participate in any dividends our board of directors may declare. Each holder of a Class A share will be entitled to one vote on all matters to be voted on by our shareholders generally. We intend to apply to list our Class A shares on the NYSE and NYSE Texas under the symbol "EROK."

Class B shares will not be entitled to participate in any dividends our board of directors may declare but will be entitled to vote on the same basis as the Class A shares. Holders of Class A shares and Class B shares will vote together as a single class on all matters presented to our shareholders for

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their vote or approval, except as otherwise required by applicable law or by our LLC Agreement. We do not intend to list the Class B shares on any stock exchange. All of our Class B shares will initially be owned by our Existing Owners and the TCW Entities. For a description of the rights and privileges of shareholders under our LLC Agreement, including voting rights, please see "Description of Shares" and "Our LLC Agreement."

**Our Operating Partners** 

While our relationship with Hydrosource and Double Eagle is a significant strength, it is also a source of potential conflicts. Please see "—Conflicts of Interest" and "Risk Factors."

Following the completion of this offering, our Existing Owners and the TCW Entities will retain a significant interest in us through their ownership of Class B shares (and a corresponding number of OpCo Units) and Class A shares, representing a % voting interest in us. Our Existing Owners and the TCW Entities may purchase Class A shares in the offering.

**Conflicts of Interest** 

Although we have established certain policies and procedures designed to mitigate and resolve conflicts of interest, no assurance can be given that these measures will be effective in identifying, eliminating or mitigating all conflicts. These measures rely on, among other things, disclosures, supervisory oversight and information barriers that are inherently limited and may be circumvented or prove ineffective. It is possible that actual, potential or perceived conflicts of interest could give rise to investor dissatisfaction, litigation or regulatory enforcement actions, monetary penalties, reputational harm, restrictions on our activities and adverse effects on our results of operations and financial condition. Conflicts may result in decisions that are not aligned with, or that are less favorable than, those that might have been made absent such conflicts.

Our LLC Agreement will provide that our Existing Owners and their respective affiliates are not restricted from owning assets or prohibited from engaging in other businesses or activities, including those that might be in direct competition with us. In addition, our Existing Owners and their respective affiliates may compete with us for investment opportunities and may own an interest in entities that compete with us. We will not have priority rights to any opportunities identified by our Existing Owners or their affiliates, and we may receive a reduced allocation of, or be excluded entirely from, opportunities that they pursue. Any allocation policies or procedures may be discretionary, may change without notice, and may not require our consent. Our LLC Agreement will also provide that we renounce any interest or expectancy in, or in being offered, an opportunity to participate in, any business opportunity that may from time to time be presented to our Existing Owners and their respective affiliates that would otherwise be subject to a corporate opportunity or other analogous doctrine under the TBOC other than any business opportunity that we establish by a preponderance of the evidence resulted from our or our subsidiaries' confidential information. Our Existing Owners and their respective affiliates and certain of our directors may become aware, from time to time, of certain business opportunities (such as acquisition opportunities) and may direct such opportunities to other businesses in which they have invested, in which case we may not become aware of or otherwise have the ability to pursue such opportunity. In addition, our directors, officers and employees may have competing demands on their time and attention as a result of their roles with our Existing Owners and their affiliates, which may adversely affect the time devoted to our business. Our Existing Owners and their affiliates may also possess material non-public information with respect to issues or opportunities that, due to legal or contractual constraints or internal information barriers, they cannot share with us. As a result, we may be restricted from pursuing, or may pursue such opportunities without the benefit

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of, such information. These affiliates may have meaningful access to capital, which may change over time depending upon a variety of factors, including available equity capital and debt financing, market conditions and cash on hand. They may also have different return profiles, fee structures, tax considerations, regulatory constraints, or investment horizons that create incentives to favor their own accounts or other vehicles over us, including through differing pricing, timing, structure, or terms of transactions.

Our key agreements, including our LLC Agreement and the First Amended and Restated Company Agreement of OpCo (the "OpCo LLC Agreement"), were negotiated among related parties, and their respective terms, including fees and other amounts payable, may not be as favorable to us as terms negotiated at an arm's-length basis with unaffiliated parties. We and our affiliates may enter into additional related-party transactions from time to time, including service, financing, lease, hedging, or other commercial arrangements, and amendments or waivers under existing related-party agreements. Approvals of such matters may be made by persons or bodies that have interests that differ from, or conflict with, those of unaffiliated equityholders, and the standard of review for these determinations may be contractual rather than fiduciary in nature. Fees, expense allocations, and other economic arrangements under related-party agreements may incentivize our affiliates in ways that are not aligned with us. There can be no assurance that any conflicts in connection with related-party transactions will be resolved in our favor.

**Redemption Right** 

Following this offering, under the OpCo LLC Agreement, each holder of an OpCo Unit (other than EagleRock) will, subject to certain limitations, have the right (the "Redemption Right") to cause OpCo to acquire all or a portion of its OpCo Units (along with the cancellation of a corresponding number of our Class B shares) for, at OpCo's election, (i) Class A shares at a redemption ratio of one Class A share for each OpCo Unit redeemed, subject to conversion rate adjustments for equity splits, dividends and reclassifications and other similar transactions ("applicable conversion rate adjustments"), or (ii) cash in an amount equal to the Cash Election Amount (as defined herein) of such Class A shares. Redemptions are subject to minimum volume requirements, including that each redemption must involve at least 150,000 OpCo Units (or all OpCo Units then held by the redeeming holder, if less than 150,000), and may generally be exercised no more frequently than once per calendar quarter (subject to exceptions for redemptions in connection with a registered offering pursuant to the Registration Rights Agreement or a Rule 10b5-1 trading plan approved by the Managing Member). Redemptions will also be subject to the conditions, timing, notice and other procedural requirements set forth in the OpCo LLC Agreement and applicable law, which may include blackout periods or other restrictions to ensure compliance with securities and other regulatory requirements. OpCo will determine whether to issue Class A shares or pay cash in an amount equal to the Cash Election Amount in lieu of the issuance of Class A shares based on facts in existence at the time of the decision, which we expect would include the relative value of the Class A shares (including the trading price for the Class A shares at the time), the cash purchase price, the availability of other sources of liquidity (such as an issuance of additional common shares) to acquire the OpCo Units and alternative uses for such cash. Alternatively, upon the exercise of the Redemption Right, we (instead of OpCo) will have the right (the "Call Right") to, for administrative convenience, acquire each tendered OpCo Unit directly from the redeeming holder of OpCo Units ("OpCo Unitholder") for, at our election, (x) one Class A share, subject to applicable conversion rate adjustments, or (y) cash in an amount equal to the Cash Election Amount of such Class A shares. We may exercise the Call Right only if an OpCo Unitholder first exercises its Redemption Right, and an OpCo Unitholder may exercise its Redemption Right beginning immediately following the consummation of this offering, subject to certain limitations in the OpCo LLC Agreement and the expiration of lock-up restrictions. As the sole managing member of OpCo, our decision to pay

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the Cash Election Amount upon an exercise of the Redemption Right or Call Right may be made by a conflicts committee consisting solely of independent directors. In connection with any redemption of OpCo Units pursuant to the Redemption Right or acquisition of OpCo Units pursuant to the Call Right, a corresponding number of Class B shares held by the redeeming OpCo Unitholder will be automatically cancelled. Redemptions and exchanges will reduce the number of OpCo Units held by persons other than us, increase our direct ownership in OpCo and, to the extent settled in Class A shares, increase the number of publicly traded Class A shares outstanding and the public float.

Our acquisition (or deemed acquisition for U.S. federal income tax purposes) of OpCo Units pursuant to an exercise of the Redemption Right or the Call Right is expected to result in adjustments to the tax basis of the tangible and intangible assets of OpCo, and such adjustments will be allocated to us. These adjustments would not have been available to us absent our acquisition or deemed acquisition of OpCo Units and are expected to reduce the amount of cash tax that we would otherwise be required to pay in the future. The amount and timing of any such tax benefits will depend on a number of factors, including the price at which exchanges occur, the timing of redemptions, the nature and fair market value of the underlying assets at the time of the exchanges and applicable tax rates, and may vary significantly from period to period. The expected tax benefits are subject to the risk that the U.S. Internal Revenue Service could challenge all or part of the tax basis adjustments or the timing or amount of related deductions, and we may not prevail in any such challenge. Any realization of tax benefits may also be affected by future changes in tax law.

Our LLC Agreement will contain provisions effectively linking each OpCo Unit with one of our Class B shares such that Class B shares cannot be transferred without transferring an equal number of OpCo Units and vice versa. Accordingly, transfers, redemptions and exchanges will require corresponding transfers or cancellations, as applicable, and will be subject to the transfer restrictions, consents and other requirements set forth in the OpCo LLC Agreement and our LLC Agreement, as well as applicable securities laws. OpCo Unitholders may be required to provide customary representations and comply with procedural and timing requirements in connection with any redemption or exchange, and may be restricted from effecting redemptions or exchanges during lock-up periods, blackout windows or at times when they are in possession of material non-public information.

For additional information, please see "Certain Relationships and Related Party Transactions—OpCo LLC Agreement."

**Holding Company Structure** 

Our post-offering organizational structure will allow our Existing Owners to retain a direct equity ownership in OpCo, which will be classified as a partnership for U.S. federal income tax purposes following the offering. Investors in this offering will, by contrast, hold a direct equity ownership in us in the form of Class A shares, and an indirect ownership interest in OpCo through our ownership of OpCo Units. Although we were formed as a limited liability company, we have elected to be taxed as a corporation for U.S. federal income tax purposes.

Pursuant to our LLC Agreement and the OpCo LLC Agreement, our capital structure and the capital structure of OpCo will generally replicate one another and will provide for customary antidilution echanisms in order to maintain the one-for-one exchange ratio between the OpCo Units and our Class A shares.

For additional information, please see "—Organizational Structure" and "Certain Relationships and Related Party Transactions—OpCo LLC Agreement."

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**Organizational Structure** 

The following diagram reflects our simplified organizational structure immediately following the completion of this offering and the transactions described under "—Corporate Reorganization" (assuming that the underwriters' option to purchase additional Class A shares is not exercised).

![LOGO](g37594g26k26.jpg)

\* This diagram is provided for illustrative purposes only and has been simplified by not depicting (i) each individual operating subsidiary and (ii) the Class A shares owned by the Rollover TCW Entities. See "—Corporate Reorganization." 

The Class A shares to be issued to the public in this offering will initially represent an indirect minority interest in OpCo. Our Existing Owners and the TCW Entities will initially own approximately % of the economic interests in OpCo through their ownership of OpCo Units and Class A shares, and our Existing Owners and the TCW Entities will control us and OpCo through their ownership of approximately % of our outstanding common shares. See "*—*Basis of Presentation" and "—Conflicts of Interest."

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Concurrently with the closing of this offering, we will enter into (i) the DE Flow WSMA with DEF Operating, which will govern our royalty revenue arrangements with respect to the integrated water infrastructure system in the Midland Basin, and (ii) the Hydrosource Recycling Agreement with Hydrosource, which will govern our royalty revenue arrangements with respect to recycled water activities on our land. These agreements are not depicted in the above graphic but are conditions to closing of this offering.

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**Summary Risk Factors** 

**Risks Related to Our Business and Operations** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our revenues are substantially dependent on ongoing oil and natural gas exploration, development and production activity on
or around our land.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The willingness of companies to engage in drilling, completion and production activities on and around our land is
substantially influenced by the market prices of oil, natural gas and NGLs, which are highly volatile due to factors beyond our control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business is difficult to evaluate because we have a limited operating history.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future land acquisitions would expose us to risks associated with acquisitions and the commercialization of additional
acreage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Because a significant portion of our future revenue growth is expected to be derived from our operating partners, any
development that materially and adversely affects their business, operations or financial condition could have a material adverse impact on us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our acreage is located in the Permian Basin, making us vulnerable to risks associated with geographic concentration in a
single geographic area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be successful in pursuing additional commercial opportunities on our land from non-traditional energy production and other users.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A significant portion of our acreage is held by us through leases from the Bureau of Land Management and the State of New
Mexico. If we are unable to renew these leases in the future on similar or favorable terms, or at all, our business and financial condition could be materially and adversely impacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The construction by customers of new infrastructure on and around our land is subject to regulatory, construction, supply
chain and other risks common in the development and operation of facilities and other infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This offering is conditioned on the occurrence of the Corporate Reorganization, but completion of the Corporate
Reorganization and the contributions contemplated in connection with this offering may not occur as currently expected, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rapid or sustained technological change in well completions, water sourcing, recycling and produced-water management could decrease demand for our water sales and produced-water transportation, recycling and handling on or around our land and require us or our
operating partners to invest in new or unproven technologies at significant cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Competition in the energy industry is intense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sand operations are subject to operating risks that are often beyond the control of the mine operator. These risks can
adversely affect production levels and costs, which could adversely affect sand production from our land.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our insurance coverage may not fully cover our losses, and we may in the future encounter increased costs related to, and
lack of availability of, insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have identified material weaknesses in our predecessor's internal controls over financial reporting, and the
failure to achieve and maintain effective internal controls over financial reporting could harm our business and negatively impact the value of our Class A shares. If we are unable to remediate these material weaknesses in a timely manner, we
could be required to restate financial statements, delay or file late our periodic reports, incur increased audit and

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compliance costs, face regulatory scrutiny or litigation, and experience an adverse impact on our reputation, liquidity and cost of capital.

**Risks Related to Environmental and Regulatory Matters** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Oil, natural gas and NGLs operations are subject to various governmental laws and regulations. We generally do not control
our customers' operations on our surface acreage and cannot ensure their compliance with applicable requirements, which may increase our residual exposure notwithstanding contractual indemnities and insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legislation or regulatory initiatives intended to address seismic activity, over-pressurization or subsidence could
restrict drilling, completion and production activities, as well as our operating partners' ability to handle produced water gathered from its customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current and future restrictions on our customers' operations intended to protect certain species of wildlife may
adversely affect their ability to expand certain existing operations and/or limit their ability to use our land.

**Risks Related to Our Financial Condition** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to interest rate risk, which may cause our debt service obligations to increase significantly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our obligations under our Credit Facility will be secured by a first priority security interest in substantially all of our
assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to counterparty credit risk, including nonpayment or nonperformance by our customers.

**Risks Related to this Offering, Our Corporate Structure and Our Class A Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The requirements of being a public company may increase our costs and divert management's attention from other
business concerns, and we may be unable to comply with these requirements in a timely or cost-effective manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investors in this offering will experience immediate and substantial dilution of $ per
Class A share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any decision to pay cash dividends in the future will be made in the sole discretion of our board of directors. If we do
not pay any cash dividends on our Class A shares following this offering, you may not receive a return on investment unless you sell your Class A shares for a price greater than that which you paid for them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Existing Owners have the ability to direct the voting of a majority of our common shares and control certain decisions
with respect to our management and business. The Existing Owners' interests may conflict with those of our other shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Existing Owners and their respective affiliates are not limited in their ability to compete with us, and may benefit
from opportunities that might otherwise be available to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certain of our directors and officers may have significant duties with, and spend significant time serving, other entities,
including entities that may compete with us in seeking acquisitions and business opportunities, and, accordingly, may have conflicts of interest in allocating time or pursuing business opportunities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The U.S. federal income tax treatment of dividends on our Class A shares to a holder will depend upon our tax
attributes and the holder's tax basis in our Class A shares.

**Emerging Growth Company and Smaller Reporting Company Status** 

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act (the "JOBS Act"). For as long as we are an emerging growth company, unlike other public companies that are not emerging growth companies under the JOBS Act, we are not required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide an auditor's attestation report on management's assessment of the effectiveness of our system of
internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide more than two years of audited financial statements and related management's discussion and analysis of
financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with any new requirements adopted by the Public Company Accounting Oversight Board (the "PCAOB")
requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and our financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide certain disclosure regarding executive compensation required of larger public companies or hold shareholder
advisory votes on executive compensation required by the Dodd-Frank Wall Street Reform and Consumer Protection Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain shareholder approval of any golden parachute payments not previously approved.

We will cease to be an emerging growth company upon the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year in which we have $1.235 billion or more in annual revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we become a "large accelerated filer" (the fiscal year-end on which the total market value of our common equity securities held by non-affiliates is $700 million or more as of June 30 of such year);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we issue more than $1.0 billion of non-convertible debt over
a three-year period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year following the fifth anniversary of our initial public offering.

In addition, Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the "Securities Act"), for complying with new or revised accounting standards. This permits an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of this extended transition period and, as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies.

We are also a "smaller reporting company" as defined under the Securities Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain scaled disclosures available to smaller reporting companies until the fiscal year following the determination that our common shares held by non-affiliates is $700 million or more, as measured on the last business day of our second fiscal quarter, and our annual revenues are

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$100 million or more during the most recently completed fiscal year or our common shares held by non-affiliates is $250 million or more measured on the last business day of our second fiscal quarter.

**Controlled Company Status** 

Because our Existing Owners will initially own OpCo Units and Class B shares, representing approximately % of our combined voting power following the completion of this offering and will agree with us, pursuant to the terms of Voting Agreements (each, a "Voting Agreement" and collectively, the "Voting Agreements"), that it and certain of its transferees will vote in favor of all director nominees recommended for election by our board of directors, we expect to be a controlled company as of the completion of this offering under the NYSE and NYSE Texas rules. A controlled company is not required to have a majority of independent directors on its board of directors or to form an independent compensation or nominating and corporate governance committee. As a controlled company, we will remain subject to the Sarbanes-Oxley Act and the rules of the NYSE and NYSE Texas that require us, subject to certain phase-in periods, to have an audit committee composed entirely of independent directors. Under these rules, we must have an audit committee that has one member that is independent by the date that our Class A shares are first traded on the NYSE and NYSE Texas (the "listing date"), a majority of members that are independent within 90 days of the effectiveness of the registration statement of which this prospectus forms a part (the "effective date") and all members that are independent within one year of the effective date. We expect to have independent directors upon the closing of this offering.

If at any time we cease to be a controlled company, we intend to take all action necessary to comply with the NYSE and NYSE Texas rules, including by appointing a majority of independent directors to our board of directors and establishing a compensation committee and a nominating and corporate governance committee, each composed entirely of independent directors, subject to a permitted "phase-in" period.

**Principal Executive Offices and Internet Address** 

Our principal executive offices are located at 9655 Katy Freeway, Suite 375, Houston, Texas 77024, and our telephone number at that address is (713) 280-7002. Our website is located at *EROK.com*. We expect to make our periodic reports and other information filed with or furnished to the SEC available free of charge through our website as soon as reasonably practicable after those reports and other information are electronically filed with or furnished to the SEC. Information on, or otherwise accessible through, our website or any other website is not incorporated by reference herein and does not constitute a part of this prospectus.

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**The Offering** 

Issuer EagleRock Land, LLC.

Class A shares offered by us Class A shares (or Class A shares if the underwriters' option to purchase additional Class A shares is exercised in full).

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| Option to purchase additional Class A shares  | We have granted the underwriters the option to purchase, exercisable within 30 days from the date of this prospectus, up to additional Class A shares from us, at the same terms and conditions set forth above if the underwriters sell more than Class A shares in this offering. |

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Class A shares to be outstanding immediately after completion of this offering Class A shares (or Class A shares if the underwriters' option to purchase additional Class A shares is exercised in full).

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| Class B shares to be outstanding immediately after completion of this offering  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B shares, or one Class B share for each OpCo Unit held by our Existing Owners and the TCW Entities immediately following this offering. Class B shares vote together as a single class with Class A shares, but do not have any economic rights and holders thereof have no right to receive any dividends. In connection with any redemption of OpCo Units pursuant to the Redemption Right or acquisition of OpCo Units pursuant to the Call Right, a corresponding number of Class B shares will be cancelled. |

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| Voting power of Class A shares after giving effect to this offering  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% (or % if the underwriters' option to purchase additional Class A shares is exercised in full). The voting power of our Class A shares would be 100% if all outstanding OpCo Units were redeemed (along with the cancellation of a corresponding number of our Class B shares) for newly issued Class A shares on a one-for-one basis. |

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| Voting power of Class B shares after giving effect to this offering  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% (or % if the underwriters' option to purchase additional Class A shares is exercised in full). The voting power of our Class B shares would be 0% if all outstanding OpCo Units were redeemed (along with the cancellation of a corresponding number of our Class B shares) for newly issued Class A shares on a one-for-one basis. |

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| Voting rights  | Each Class A share entitles its holder to one vote on all matters to be voted on by shareholders generally. Each Class B share entitles its holder to one vote on all matters to be voted on by shareholders generally. Holders of our Class A shares and Class B shares vote together as a single class on all matters presented to our shareholders for their vote or approval, except as otherwise required by applicable law or by our LLC Agreement. Please see "Description of Shares" and "Our LLC Agreement." |

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Under Shareholder's Agreements that each of our Existing Owners will enter into with us, our Existing Owners will have the right to designate more than a majority of the members of our board of directors for a potentially extended period of time following the completion of this offering, and, under the Voting Agreements, our Existing Owners have agreed with us to vote all of the common shares that they own in favor of all director nominees recommended for election by our board of directors. As a result, investors in this offering will not be able to elect a majority of our board of directors during such time and will, therefore, have a limited ability to influence the direction of our business. See "Certain Relationships and Related Party Transactions—Shareholder's Agreements" and "Certain Relationships and Related Party Transactions—Voting Agreements."

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|:---|:---|
| Use of proceeds  | We expect to receive $ million of proceeds (or $ million if the underwriters' option to purchase additional Class A shares is exercised in full) from this offering based upon the assumed public offering price of $ per Class A share (the midpoint of the price range set forth on the cover page of this prospectus), net of underwriting discounts and estimated offering expenses payable by us. See "Underwriting." |

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We intend to contribute all of the net proceeds from this offering to OpCo in exchange for newly issued OpCo Units at a per-unit price equal to the per share price paid by the underwriters for our Class A shares in this offering. OpCo intends to use the net proceeds from this offering (i) to repay in full, and terminate, the Predecessor Credit Facility, (ii) to distribute approximately $ to our Existing Owners and (iii) for general corporate purposes.

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If the underwriters exercise their option to purchase additional Class A shares in full, we expect to receive approximately $ million of additional net proceeds based upon the assumed public offering price of $ per Class A share (the midpoint of the price range set forth on the cover page of this prospectus). We intend to contribute all of the net proceeds from any exercise of such option to OpCo in exchange for additional OpCo Units. OpCo intends to use such additional net proceeds to increase the amount of proceeds we will use for general corporate purposes. After the application of the net proceeds from this offering, we will own approximately % of outstanding OpCo Units (or approximately % of outstanding OpCo Units if the underwriters' option to purchase additional Class A shares is exercised in full).

Please see "Use of Proceeds" for a more complete description of the intended use of proceeds from this offering.

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|:---|:---|
| Dividend policy  | We intend to seek to pay dividends on our Class A shares in amounts determined from time to time by our board of directors. Please see "Dividend Policy." |

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|:---|:---|
| Redemption Right  | Following this offering, under the OpCo LLC Agreement, each holder of an OpCo Unit (other than EagleRock) will, subject to certain limitations, have a Redemption Right to cause OpCo to acquire all or a portion of its OpCo Units (along with the cancellation of a corresponding number of our Class B shares) for, at OpCo's election, (i) Class A shares at a redemption ratio of one Class A share for each OpCo Unit redeemed, subject to applicable conversion rate adjustments or (ii) cash in an amount equal to the Cash Election Amount of such Class A shares. Each redemption must involve at least 150,000 OpCo Units (or all OpCo Units then held, if less) and may generally be exercised no more frequently than once per calendar quarter, subject to certain exceptions. OpCo will determine whether to issue Class A shares or pay cash in an amount equal to the Cash Election Amount in lieu of the issuance of Class A shares based on facts in existence at the time of the decision, which we expect would include the relative value of the Class A shares (including the trading price for the Class A shares at the time), the cash purchase  |

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price, the availability of other sources of liquidity (such as an issuance of additional common shares) to acquire the OpCo Units and alternative uses for such cash. Alternatively, upon the exercise of the Redemption Right, we (instead of OpCo) will have the Call Right to, for administrative convenience, acquire each tendered OpCo Unit directly from the redeeming OpCo Unitholder for, at our election, (x) one Class A share, subject to applicable conversion rate adjustments, or (y) cash in an amount equal to the Cash Election Amount of such Class A shares. We may exercise the Call Right only if an OpCo Unitholder first exercises its Redemption Right, and an OpCo Unitholder may exercise its Redemption Right beginning immediately following the consummation of this offering, subject to certain limitations in the OpCo LLC Agreement and the expiration of lock-up restrictions. As the sole managing member of OpCo, our decision to pay the Cash Election Amount upon an exercise of the Redemption Right or Call Right may be made by a conflicts committee consisting solely of independent directors. In connection with any redemption of OpCo Units pursuant to the Redemption Right or acquisition of OpCo Units pursuant to the Call Right, a corresponding number of Class B shares held by the redeeming OpCo Unitholder will be automatically cancelled. <br>

The OpCo LLC Agreement and our LLC Agreement will contain provisions effectively linking each OpCo Unit with one of our Class B shares such that Class B shares cannot be transferred without transferring a corresponding number of OpCo Units and vice versa.

For additional information, please see "Certain Relationships and Related Party Transactions—OpCo LLC Agreement."

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|:---|:---|
| Directed share program  | At our request, the underwriters will reserve up to % of the Class A shares being offered by this prospectus for sale at the initial public offering price to our directors, officers, employees and other individuals associated with us and members of their families. The sales will be made by Raymond James & Associates, Inc., an underwriter of this offering, through a directed share program. We do not know if these persons will choose to purchase all or any portion of these reserved Class A shares, but any purchases they do make will reduce the number  |

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of Class A shares available to the general public. Any reserved Class A shares not so purchased will be offered by the underwriters to the general public on the same terms as the other Class A shares. Class A shares purchased by our directors, officers and employees in the directed share program will be subject to lock-up restrictions described in this prospectus. We will agree to indemnify Raymond James & Associates, Inc. against certain liability and expenses, including liabilities under the Securities Act, in connection with the sales of reserved Class A shares. See "Underwriting—Directed Share Program." <br>

Listing and trading symbol We intend to apply for a dual listing of our Class A shares on the NYSE and NYSE Texas under the symbol "EROK."

Risk factors You should carefully read and consider the information set forth under the heading "Risk Factors" and all other information set forth in this prospectus before deciding to invest in our Class A shares.

The information above excludes (i) Class A shares reserved for issuance under our LTIP (as defined herein), which we intend to adopt in connection with the completion of this offering, and (ii) Class A shares reserved for issuance in connection with any exercise of the Redemption Right or the Call Right. Except as otherwise noted, all information in this prospectus assumes (i) no exercise by the underwriters of their option to purchase additional Class A shares and (ii) no purchase of Class A shares by our directors, officers, employees and other individuals associated with us and members of their families through the directed share program.

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**Summary Consolidated Financial and Other Data** 

The following table shows summary historical, pro forma and pro forma, as adjusted financial data for each of the periods indicated. The summary historical consolidated financial data set forth below as of and for the years ended December 31, 2025 and 2024 have been derived from the audited consolidated financial statements of L&E, our predecessor, included elsewhere in this prospectus. The unaudited summary pro forma and pro forma, as adjusted financial data set forth below as of and for the year ended December 31, 2025 has been derived from our Unaudited Pro Forma Condensed Consolidated Financial Statements, which have been prepared in accordance with Article 11 of Regulation S-X, included elsewhere in this prospectus.

The unaudited pro forma statement of operations data set forth below gives effect to the Accelerated Acquisition, the exclusion of the Excluded Assets, the Shallow Valley Contribution and the DE Flow Contribution as if each transaction had occurred on January 1, 2025. The unaudited pro forma balance sheet data set forth below gives effect to the exclusion of the Excluded Assets, the Shallow Valley Contribution and the DE Flow Contribution as if each transaction had occurred on December 31, 2025.

The unaudited pro forma, as adjusted statement of operations data set forth below gives effect to the Accelerated Acquisition, the exclusion of the Excluded Assets, the Shallow Valley Contribution, the DE Flow Contribution, the Up-C Reorganization and this offering and the use of proceeds therefrom as described in "Use of Proceeds" as if each transaction had occurred on January 1, 2025. The pro forma, as adjusted information assumes an initial public offering price of $ per share, the midpoint of the price range set forth on the cover of this prospectus, reflects the deduction of underwriting discounts and commissions and estimated offering expenses payable by us, and assumes no exercise of the underwriters' option to purchase additional shares. The unaudited pro forma, as adjusted balance sheet data set forth below gives effect to the exclusion of the Excluded Assets, the Shallow Valley Contribution, the DE Flow Contribution, the Up-C Reorganization and this offering and the use of proceeds therefrom as described in "Use of Proceeds" as if each transaction had occurred on December 31, 2025.

The unaudited pro forma and pro forma, as adjusted financial data is presented for illustrative purposes only and is not necessarily indicative of the financial position that would have existed or the financial results that would have occurred if the applicable Pro Forma Transactions or the Pro Forma As Adjusted Transactions had been consummated on the dates indicated, nor are they necessarily indicative of the financial position or results of our operations in the future. The pro forma adjustments, as described in the notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements, are preliminary and based upon currently available information and certain assumptions that our management believes are reasonable. The summary historical consolidated financial data is qualified in its entirety by, and should be read in conjunction with, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section included in this prospectus and the consolidated financial statements and related notes and other financial information included in this prospectus. Historical results are not necessarily indicative of results that may be expected for any future period.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Predecessor<sup>(1)</sup>** | **Predecessor<sup>(1)</sup>** | **Pro<br>Forma<sup>(2)</sup>** | **Pro<br>Forma, as<br>Adjusted<sup>(3)</sup>** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2025** | **2025** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  **Statement of Operations Data:** |  |  |  |  |
|  **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $14120 | $55179 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource royalties |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues | 3120 | 13667 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties | 461 | 3327 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues<sup>(4)</sup>** | $17701 | $72173 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | $4873 | $20863 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party cost of sales | 3438 | 10207 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 2600 | 9834 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party general and administrative expense | 198 | 235 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 3944 | 14984 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plants and equipment, net | (4954) | (2067) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | $10099 | $54056 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating Income (Loss)** | $7602 | $18117 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense—related party | (8703) | (21185) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt |  | (70001) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from operations before taxes** | $(1101) | $(73069) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | (26) | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss)** | $(1075) | $(73071) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) margin | (6.1)% | (101.2)% |  |  |
|  **Statement of Cash Flows Data**: |  |  |  |  |
|  Net cash provided by (used in): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $907 | $14138 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | $(64556) | $(204963) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | $64711 | $199090 |  |  |
|  Operating cash flow margin<sup>(5)</sup> | $5.1% | $19.6% |  |  |
|  **Supplementary Non-GAAP Financial and Operating Data**: |  |  |  |  |
|  Adjusted EBITDA<sup>(6)</sup> | $7350 | $35533 | $— | $— |
|  Adjusted EBITDA Margin<sup>(6)</sup> | 41.5% | 49.2% | % | % |
|  Free Cash Flow<sup>(6)</sup> | $5868 | $30281 |  |  |
|  Free Cash Flow Margin<sup>(6)</sup> | 33.2% | 42.0% |  |  |
|  Surface Use Efficiency<sup>(7)</sup> | $202.3 | $415.6 |  |  |
|  Total Water Volumes (MMBbls)<sup>(8)</sup> | 19.2 | 73.0 |  |  |
|  **Selected Balance Sheet Data (at end of period)**: |  |  |  |  |
|  Cash and cash equivalents | $1062 | $9042 | $— | $— |
|  Total assets | $86694 | $282010 | $— | $— |
|  Non-current liabilities | $77521 | $306594 | $— | $— |
|  Total liabilities | $87769 | $323725 | $— | $— |
|  Member's deficit | $(1075) | $(41715) | $— | $— |

---

(1) 2024 and 2025 Resource sales referenced above consists of $10.9 million and $50.3 million reported as "Water
sales," $1.4 million and $0.5 million reported as "Related party water sales" and $1.8 million and $4.3 million of mined caliche resource sales reported as "Surface and other revenues," respectively, on

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our predecessor's Consolidated Statement of Operations. The remaining revenues reported on our predecessor's Consolidated Statement of Operations have been disaggregated between Surface use royalties and Surface use related revenues above.

(2) Unless otherwise indicated, "pro forma" information reflects the historical financial data of our
predecessor, adjusted to give effect to the Pro Forma Transactions. For the year ended December 31, 2025, pro forma statement of operations data give effect to the Pro Forma Transactions as if they had occurred on January 1, 2025; pro
forma balance sheet data give effect to the relevant Pro Forma Transactions as if they had occurred on December 31, 2025. See "Unaudited Pro Forma Condensed Consolidated Financial Statements" and the related notes for additional
information.

(3) Unless otherwise indicated, "pro forma, as adjusted" information reflects the Pro Forma As Adjusted
Transactions. For the year ended December 31, 2025, pro forma, as adjusted statement of operations data give effect to these transactions as if they had occurred on January 1, 2025; pro forma, as adjusted balance sheet data give effect to
these transactions as if they had occurred on December 31, 2025. See "Unaudited Pro Forma Condensed Consolidated Financial Statements" and the related notes for additional information.

(4) Refer to the Unaudited Pro Forma Condensed Consolidated Financial Statements included elsewhere in this prospectus for
additional information on the reclassification of revenues included in the Predecessor's 2025 financial statements to conform to the line items above.

(5) Operating cash flow margin is calculated by dividing net cash provided by operating activities by total revenues.

(6) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are Non-GAAP financial measures. See "—Non-GAAP Financial Measures" below for more information regarding these non-GAAP measures and reconciliations to the most comparable measures calculated and presented in accordance with GAAP.

(7) Surface Use Efficiency is calculated by dividing total revenue by weighted average total surface acreage. See
"Management's Discussion and Analysis of Financial Condition and Results of Operations—How We Evaluate Our Operations" below for more information on the calculation and use of this metric.

(8) See "Management's Discussion and Analysis of Financial Condition and Results of Operations—How We
Evaluate Our Operations" below for more information on the use of this metric.

**Non-GAAP Financial Measures** 

We use certain non-GAAP financial measures to evaluate current and past performance and prospects for the future to supplement our financial information presented in accordance with GAAP. These measures are important indicators used by management to monitor our operating results, evaluate trends, benchmark performance against peers, and inform capital allocation decisions. We also believe these measures are useful to investors, research analysts and others because they provide additional insight into the underlying trends of our business. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, the corresponding GAAP measures, and may be defined or calculated differently by other companies. We compensate for the limitations of these non-GAAP measures by relying primarily on our GAAP results and by using the non-GAAP measures only as supplemental information.

We present the most directly comparable GAAP measures with equal or greater prominence to the corresponding non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure are provided below for the periods indicated.

***Adjusted EBITDA and Adjusted EBITDA Margin***

Adjusted EBITDA and Adjusted EBITDA Margin are used by our management and by external users of our financial statements, such as investors, research analysts and others, to assess the

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financial performance of our assets over the long term to generate sufficient cash to return capital to equity holders or service indebtedness. We define Adjusted EBITDA as net income (loss) minus interest, taxes, depreciation, amortization, depletion and accretion, which we refer to as "EBITDA" and from which we further deduct share-based compensation, non-recurring transaction-related expenses and other non-cash or non-recurring expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.

Management believes Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period, and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA and Adjusted EBITDA Margin because these amounts can vary substantially from company to company within our industry, depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired.

The following table sets forth a reconciliation of net income (loss) as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Predecessor** | **Predecessor** | **Pro<br>Forma** | **Pro<br>Forma, as<br>Adjusted** |
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2024** | **2025** | **2025** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Net income (loss) | $(1075) | $(73071) | $— | $— |
|  Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion, amortization and accretion | 3944 | 14984 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 8703 | 21185 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | (26) | 2 |  |  |
|  EBITDA | $11546 | $(36900) | $— | $— |
|  Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction-related expenses<sup>(1)</sup> | 758 | 4299 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt<sup>(2)</sup> |  | 70001 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(3)</sup> | (4954) | (1867) |  |  |
|  Adjusted EBITDA | $7350 | $35533 | $— | $— |
|  Net income (loss) margin | (6.1)% | (101.2)% | % | % |
|  Adjusted EBITDA Margin | 41.5% | 49.2% | % | % |

---

(1) Transaction-related expenses consist of nonrecurring professional services expenses, including banker fees, legal and
professional fees and integration costs directly attributable to completed or contemplated transactions. We do not adjust for ongoing integration or optimization costs unless they are incremental, non-recurring and directly attributable to the transaction.

(2) Loss on extinguishment of debt consists of a nonrecurring, noncash loss that resulted from the increase in the size of
our Predecessor Credit Facility in April 2025.

(3) Other consists primarily of nonrecurring gain on sale of property, plant and equipment, net and other nonrecurring
transactions.

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***Free Cash Flow and Free Cash Flow Margin***

Free Cash Flow and Free Cash Flow Margin are performance measures used by our management and by external users of our financial statements, such as investors, research analysts and others, to assess our ability to generate cash from operations to repay our indebtedness, return capital to our shareholders and fund potential acquisitions without access to external sources of financing for such purposes. To calculate Free Cash Flow, net income is adjusted by the same items discussed above for EBITDA and Adjusted EBITDA and then further adjusted by deducting incurred capital expenditures, which includes changes in accounts payable related to capital expenditures. Free Cash Flow Margin is calculated as Free Cash Flow divided by total revenues.

Management believes Free Cash Flow and Free Cash Flow Margin are useful because they allow for an effective evaluation of both our operating and financial performance, as well as the capital intensity of our business, and subsequently the ability of our operations to generate cash flow that is available to distribute to our shareholders, reduce leverage or support acquisition activities.

The following table sets forth a reconciliation of cash flows from operating activities as determined in accordance with GAAP to Free Cash Flow and Free Cash Flow Margin, respectively, for the periods indicated.

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| | | |
|:---|:---|:---|
|  | **Predecessor** | **Predecessor** |
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
|  Net income (loss) | $(1075) | $(73071) |
|  Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion, amortization and accretion | 3944 | 14984 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 8703 | 21185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | (26) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction-related expenses<sup>(1)</sup> | 758 | 4299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt<sup>(2)</sup> |  | 70001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(3)</sup> | (4954) | (1867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (1206) | (5279) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in accounts payable related to capital expenditures | (276) | 27 |
|  Free Cash Flow | $5868 | $30281 |
|  Net income (loss) margin | (6.1)% | (101.2)% |
|  Free Cash Flow Margin | 33.2% | 42.0% |

---

(1) Transaction-related expenses consist of nonrecurring professional services expenses, including banker fees, legal and
professional fees and integration costs directly attributable to completed or contemplated transactions. We do not adjust for ongoing integration or optimization costs unless they are incremental, non-recurring and directly attributable to the
transaction.

(2) Loss on extinguishment of debt consists of a nonrecurring, noncash loss that resulted from the increase in the size of
our Predecessor Credit Facility in April 2025.

(3) Other consists primarily of nonrecurring gain on sale of property, plant and equipment, net and other nonrecurring
transactions.

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**RISK FACTORS** 

*Investing in our Class A shares involves a significant degree of risk. The risks described below as well as all other information in this prospectus, including the historical and pro forma financial statements and the notes thereto and the matters addressed under the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Cautionary Note Regarding Forward-Looking Statements," should be considered carefully before deciding to invest in our Class A shares. The risks and uncertainties described below are not the only ones we face. Additional risks not presently known to us or that we currently deem immaterial may also materially affect our business. The occurrence of any of the following risks or additional risks and uncertainties that are currently deemed immaterial or unknown could have a material and adverse effect on our business, financial condition, liquidity, results of operations, cash flows and prospects. In such an event, the trading price of our Class A shares could decline, and you may lose all or part of your investment.* 

**Risks Related to Our Business and Operations** 

***Our revenues are substantially dependent on ongoing oil and natural gas exploration, development and production activity on or around our land. If E&P companies do not maintain drilling, completion and production activities on or around our land, the demand for the use of our land and resources, as well as the royalties we receive from activities on our land, could be reduced, which could have a material adverse effect on our results of operations, cash flows and financial position.***

We are not an E&P company and have limited physical operations on our land. As a result, we have limited ability to influence or control the operation or future development of, or on, our properties. We are dependent on our customers to develop our properties, construct infrastructure and commence other operations on and around our land. Revenue is tied to E&P development intensity and midstream connectivity; delays in drilling, completions, takeaway or recycling demand can reduce volumes and fees. Contract renewals or new surface/easement grants may be delayed or repriced, impacting continuity and economics. We therefore remain exposed to our customers' development pacing and capital allocation decisions, which we do not control.

The willingness and ability of companies to continue operations and development activities on and around our land is dependent on a variety of factors that are outside of their and our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the demand for and supply of oil, natural gas and NGLs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prevailing oil, natural gas and NGL prices, and expectations regarding future oil, natural gas and NGL prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• capital expenditures, including costs required for drilling, completion and production activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to access, and cost of, capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of supplies and resources, including suitable drilling equipment, production and transportation
infrastructure and qualified operating personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidation in the oil and gas industry, which may result in lower overall drilling and completion activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the producers' expected return on investment on projects and in wells drilled on or around our land as compared to
opportunities in other areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the terms of our agreements, which often include renewal and termination provisions that could be exercised adversely,
reducing revenues, interrupting operations or increasing costs;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trade policies of domestic and foreign governments, including the imposition of tariffs and other levies on cross-border
movement of goods and services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory developments, including, but not limited to, permitting timelines and outcomes for surface-disturbing
activities, air and water authorizations and produced-water handling and disposal.

Many of our SUAs require our customers to use resources from our land, such as caliche, water and sand, for their operations on our land, for which we receive fees. As such, we are substantially dependent on our customers' operations and/or drilling, completion and production activities by companies on or around our acreage. Similarly, the services our operating partners provide from which we earn royalties and fees are substantially dependent on those same activities. If companies do not maintain such activities on or around our land, their demand for the use of our land and resources and our operating partners' services will decline, negatively impacting our results of operations, cash flows and financial position. In addition, customers may satisfy obligations through recycling or alternative handling pathways that reduce demand for water or shift produced-water flows away from higher-royalty configurations on our land.

Demand for the use of our land and resources, as well as the services provided by our operating partners, depends substantially on capital spending by producers to construct and maintain infrastructure on and around our acreage and explore for, develop and produce oil, natural gas and NGLs in the area. These expenditures are generally dependent on such producers' overall financial position, capital allocation priorities and ability to access capital, and their views of future demand for, and prices of, oil, natural gas and NGLs. Volatility in oil, natural gas or NGLs prices (or the perception that oil, natural gas or NGLs prices will decrease) affects such producers' capital expenditures and willingness to pursue development activities. This, in turn, could lead to lower demand for the use of our land and resources or our operating partners' services, delays in payment of, or nonpayment of, amounts that are owed to us and cause lower rates and lower utilization of our land. As a result, a significant decrease in the price of oil, natural gas and NGLs or decrease in levels of production of oil, natural gas and NGLs on and around our land could adversely affect our results of operations, cash flows and financial position. Moreover, our agreements generally allow customers discretion over the pace and scope of development, which may accentuate these impacts during periods of commodity price weakness. For additional discussion of commodity price exposure, see "—The willingness of companies to engage in drilling, completion and production activities on and around our land is substantially influenced by the market prices of oil, natural gas and NGLs."

For the year ended December 31, 2025, on an actual basis, we received revenue from approximately 75 customers, and our top ten customers represented approximately 77.2% of our total revenues. For the year ended December 31, 2025, on a pro forma basis, we received revenue from customers, and our top ten customers represented % of our total revenues. While we expect these revenue streams to be recurring, our contracts with our significant customers, which represent a large portion of our revenues, often are structured as surface-use and royalty arrangements; however, many of these contracts do not include minimum commitments for land use or water volumes, and where such provisions exist, they may be subject to caps, carve-outs or other limitations. In particular, our Hydrosource Recycling Agreement will include a minimum annual royalty, and also entitle us to per-barrel royalties on certain volumes Hydrosource sells across the Permian Basin, which mitigates, but does not eliminate, volume risk under that agreement. In addition, certain Midland Basin water-infrastructure revenues are supported by long-term acreage dedications and minimum-volume commitments, which will include a minimum annual royalty under our DE Flow WSMA with DEF Operating, an affiliate of Double Eagle. These features mitigate, but do not eliminate, volume risk, and actual activity levels and volumes on or around our acreage will continue to drive our revenues.

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As a result, our revenues are dependent on ongoing demand from these customers, which may decrease due to factors beyond our control. Our producers make all decisions as to investments in, and production from, their wells, and our revenues are dependent upon decisions made by such producers, among other factors. For example, we cannot control whether a producer chooses to develop a property or the success of drilling and development activities, which depend on a number of factors under the control of such producer. There can be no assurance that such producers will take actions or make decisions that will be beneficial to us, which could result in adverse effects on our results of operations, cash flows and financial position.

We also depend on operating partners to construct and operate certain water management and related systems on or adjacent to our acreage, including Hydrosource in the Delaware and Midland Basins and DEF Operating in portions of the Midland Basin, and any reduction in activity by their upstream customers, failure to obtain or maintain permits or inability to access ROWs and pore space, could reduce volumes handled on or around our land and adversely affect the royalties and fees we receive.

Although many of our SUAs include long tenors, exclusivity for certain resources and specified fee schedules for surface uses, development pacing, commodity-driven spending, regulatory changes and permitting outcomes can still materially impact customer activity and the timing and level of payments to us. In Texas and New Mexico, state regulators have, at times, limited produced-water handling through Seismic Response Area ("SRA") measures and permit actions, and future actions could disrupt produced-water handling on or near our land and reduce customer activity levels. Although our acreage is not currently included in any SRA, there can be no assurance this will remain the case. More broadly, permits for produced-water handling and disposal, air emissions, dredge and fill activities and surface-disturbing construction are subject to heightened scrutiny, evolving technical standards and more frequent third-party challenges, which can extend timelines, increase costs or result in permit denials or revocations after issuance. Limitations on obtaining or renewing necessary permits or accessing suitable pore space and rights-of-way near our acreage could divert volumes to areas where we do not earn royalties and materially and adversely affect our results of operations, cash flows and financial position.

***The willingness of companies to engage in drilling, completion and production activities on and around our land is substantially influenced by the market prices of oil, natural gas and NGLs, which are highly volatile due to factors beyond our control. A substantial or extended decline in commodity prices may adversely affect our business, financial condition, results of operations and cash flows.***

Historically, the markets for oil, natural gas and NGLs have been volatile, and they are likely to continue to be volatile. For example, political instability or armed conflicts in oil and gas producing regions have contributed to significant increases and volatility in the price for oil, natural gas and NGLs. Wide fluctuations in oil, natural gas and NGLs prices may result from relatively minor changes in the supply of or demand for oil, natural gas and NGLs, market uncertainty and other factors that are beyond our and our customers' control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• worldwide and regional economic conditions, including the potential for a recession in the U.S. or worldwide, elevated
interest rates and associated policies of the U.S. Federal Reserve Board ("Federal Reserve");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the supply and demand for oil, natural gas and NGLs, including a potential increase in Venezuelan oil supply and any
related impact on global oil prices and domestic oil production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in seasonal temperatures, including the number of heating degree days during winter months and cooling degree days
during summer months;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. federal, state and local and foreign governmental regulation, including U.S. and international trade policies and any
resultant tariffs, and taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• supply chain disruptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of oil, natural gas and NGLs exploration, development and production activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of oil, natural gas and NGLs inventories;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prevailing prices, and expectations regarding future prices, on local price indexes in the areas near our acreage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the proximity, capacity, cost and availability of gathering and transportation facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• localized and global supply and demand fundamentals and transportation availability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of exploring for, developing, producing and transporting oil, natural gas and NGLs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• weather conditions, such as severe storms, earthquakes and flooding, and other natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technological advances affecting energy consumption, including those related to new and emerging technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development, price and availability of alternative fuels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculative trading in oil, natural gas and NGLs derivative contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased end-user conservation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political and economic conditions in or affecting oil and gas producing regions or countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions of the Organization of Petroleum Exporting Countries ("OPEC" and collectively with its allies,
"OPEC+"), including the ability and willingness of the members of OPEC+ and other exporting nations to agree to and maintain oil price and production controls, including any anticipated increases in supply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expectations about future commodity prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility of terrorist or physical, electronic and cybersecurity breaches and the consequences of any such attacks or
breaches.

These factors and the volatility of the energy markets make it extremely difficult to predict future oil, natural gas and NGLs price movements with any certainty. From the beginning of 2022 through December of 2025, NYMEX WTI ranged from $55.44 to $123.64 per Bbl, and the NYMEX Henry Hub price of natural gas has ranged from $1.21 to $13.20 per MMBtu. The war in Ukraine, the war between the U.S. and Israel against Iran, the U.S. engagement in Venezuela, elevated interest rates, global supply chain disruptions, concerns about a potential economic downturn or recession, recent measures to combat persistent inflation and actions taken by OPEC+ all continue to contribute to economic and oil and natural gas price volatility. In particular, crude oil prices have risen significantly during the spring of 2026 as a result of concerns over supply-related constraints resulting from the war in the Middle East between the U.S., Israel and Iran. As a result of this conflict, significant production shut-ins have occurred and global shipping of crude oil and NGLs has been disrupted. However, the duration of that conflict and the longer term impact on crude oil prices remains uncertain. If the prices of oil, natural gas and NGLs decline, our operations and financial condition may be materially and adversely affected through a reduction in the use of our land and its resources and/or our operating partners' services. Moreover, while U.S. natural gas prices are correlated with global oil price movements, they are also affected by local weather, transportation and consumption patterns. Further, NGLs are made up of ethane, propane, isobutane, normal butane and natural gasoline, all of which have different uses and different pricing characteristics, which adds further volatility to the pricing of NGLs.

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We cannot reasonably predict whether production levels will remain at current levels or the impact the full extent of the events above may have on our industry and our business. In addition, oil, natural gas and NGLs prices may reduce the amount of oil, natural gas and NGLs that can be produced economically by operators on or around our land, which may reduce their willingness to develop our properties and/or use our or our operating partners' services. Operators on and around our land could also determine during periods of low commodity prices to shut in or curtail production from wells on our properties. In addition, they could determine during periods of low commodity prices to plug and abandon marginal wells that otherwise may have been allowed to continue to produce for a longer period under conditions of higher prices. Specifically, they may abandon any well if they reasonably believe that the well can no longer produce oil, natural gas and NGLs in commercially paying quantities. Other significant factors that are likely to continue to affect commodity prices in future periods include, but are not limited to, the effect of U.S. energy, monetary and trade policies, U.S. and global economic conditions and political developments, including the current U.S. administration's trade, energy and environmental policies, all of which are beyond our control. Our business may also be adversely impacted by any future government rule, regulation or order that may impose production limits, as well as pipeline capacity, storage constraints and transportation delays.

***Our business is difficult to evaluate because we have a limited operating history.***

Although our predecessor commenced operations in early 2024, we were formed in December 2025 to facilitate this offering and certain transactions related thereto, and our business going forward will be a combination of newly acquired assets from multiple sources. In addition, our predecessor consummated two significant acquisitions since its formation—the Desert Ram Acquisition and the Accelerated Acquisition. As a result, our prior operating history and historical financial statements may not be a reliable basis for evaluating our business prospects or the future value of our Class A shares and may make it difficult to assess our ability to operate profitably. Our future results will be dependent on, among other things, a number of factors and trends discussed in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section and elsewhere in this prospectus and the risks discussed elsewhere in this "Risk Factors" section, as well as our ability to execute our business model. Our business model may not be successful, and if unsuccessful, we may be unable to modify it in a timely and successful manner.

Because of our limited operating history, our business model and the attractiveness of our land and resources to our customers, as well as the performance of any other future assets, are not yet proven. As a result, it may be difficult to evaluate our business and results of operations to date and to assess our future prospects.

In addition, we may encounter risks, liabilities and difficulties experienced by companies whose performance is dependent upon newly acquired assets, such as unforeseen liabilities or failing to integrate, or realizing the expected benefits of, such assets. As a result of the foregoing, we may be less successful in achieving a consistent revenue base capable of generating cash flows from operations compared with a company that has a longer operating history. In addition, we may be less equipped to identify and address risks and hazards in the conduct of our business than those companies that have longer operating histories.

Moreover, our results and cash flows will depend on the development decisions and operating performance of producers and operating partners on and around our acreage, over which we have limited control, and which are affected by factors beyond our control, including commodity price volatility, access to capital, permitting and regulatory developments, supply chain constraints and labor availability. In the Midland Basin, for instance, our produced water handling revenues are supported by long-term arrangements on the DE Flow System with peak handling capacity of approximately 400 MBbls/d; however, producer activity levels, availability of pore space and regulatory constraints on

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injection and recycling could materially affect throughput and related royalties and fees. Similarly, our surface-use and resource revenues on our Delaware Basin acreage are influenced by producer drilling, completion and infrastructure activities, which have historically fluctuated with macroeconomic conditions and commodity pricing.

***Future land acquisitions would expose us to risks associated with acquisitions and the commercialization of additional acreage.***

We may pursue opportunistic future land acquisitions that we expect to complement or expand our current land position. We may not be able to identify attractive acquisition opportunities, and even if we do so, we may not be able to complete the acquisition on commercially acceptable terms, or at all. No assurance can be given that we will be able to identify additional suitable acquisition opportunities, negotiate acceptable terms, obtain financing for acquisitions on acceptable terms, or at all, or successfully acquire such identified acreage.

Additionally, we may potentially pursue selective acquisitions from the Existing Owners in the future. For example, Hydrosource recently acquired approximately 50,000 surface acres in Lea County, New Mexico that is proximate to our existing land holdings in the Delaware Basin and we may consider acquiring such acreage from Hydrosource in the future. However, these properties have not been offered to us by Hydrosource, no negotiations have occurred and no agreement currently exists, and there can be no assurance that any such agreement will be reached in the future or that we would have the capital necessary to acquire these assets in the event they were offered to us. Additionally, if any acquisition from the Existing Owners were to be pursued in the future, such acquisition would require approval from a conflicts committee of our board of directors comprised solely of independent and disinterested directors.

The process of integrating acquired acreage may involve unforeseen risks, liabilities and difficulties and may require a disproportionate amount of our managerial and financial resources. Our failure to realize the anticipated benefits of our acquisitions could have a material and adverse effect on our results of operations, cash flows and financial position. The successful acquisition and integration of acreage requires an assessment of several factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of water and the suitability of the land for produced water handling;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• proximity to recoverable oil, natural gas and NGLs reserves and the level of drilling, completion and production operations
of the target acreage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• presence of minable sand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future oil, natural gas and NGLs prices and their applicable differentials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential environmental and other liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any restrictive covenants or other use restrictions that would prohibit or restrict the ability to engage in certain
activities on the target land; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory, permitting and other similar matters.

The accuracy of these assessments is inherently uncertain. Although we will perform a review of the subject acreage that we believe to be generally consistent with industry practices, the accuracy of these assessments is inherently uncertain and may not reveal all existing or potential problems or fully assess their deficiencies and capabilities. Inspections may not always be performed on the totality of such acreage, and environmental problems are not necessarily observable even when an inspection is undertaken. Even when problems are identified, the seller may be unwilling or unable to provide effective contractual protection against all or part of the problems.

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Even if we consummate acquisitions that we believe will increase our revenues and cash generated from operations, such transactions could nonetheless reduce our Free Cash Flow and cash flow per share, at least in the near term, and may limit our ability to return capital to shareholders or fund organic growth on our acreage. Any acquisition involves potential risks, including, among other things: the validity of our assumptions regarding surface-related revenues and royalties, including fees and rates under our SUAs, ROWs and easements, and water sourcing, produced water handling, recycling and disposal activities; a decrease in our liquidity from deploying a significant portion of cash generated from operations or borrowing capacity to finance acquisitions; a significant increase in our interest expense or financial leverage if we incur debt to fund acquisitions; the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate; inaccurate assumptions about our overall cost of equity or debt; our ability to obtain satisfactory title to, or adequately defend, the surface estates, ROWs, easements and pore space rights we seek to acquire; constraints on our ability to integrate newly acquired acreage into our commercial framework with operating partners; challenges in hiring, training or retaining qualified personnel to manage and operate a larger platform; and other significant changes, such as impairments of acquired assets, goodwill or other intangibles, asset devaluation or restructuring charges.

***Because a significant portion of our future revenue growth is expected to be derived from our operating partners, any development that materially and adversely affects their business, operations or financial condition, including insolvency or bankruptcy proceedings, inability to obtain sufficient financing, mandated regulatory curtailments or suspensions or failure to perform under our agreements, could have a material adverse impact on us.***

Our operating partners are expected to play an important role in our financial performance over the long term, and we are indirectly subject to the business risks they face. As a result, any development that materially and adversely affects an operating partner's business, operations or financial condition, including reductions in upstream customer activity, inability to access capital on acceptable terms, or at all, regulatory delays or denials, loss of key permits, labor or supply chain constraints or counterparty defaults, could reduce volumes handled on or near our acreage, diminish demand for the use of our land and resources, delay or reduce payments owed to us and otherwise have a material adverse impact on our results of operations, cash flows and financial position. Because oil and natural gas wells exhibit declining production profiles, surface activity and associated fees tied to those wells will naturally decline over time, requiring us to proactively backfill demand by repositioning corridors and other surface rights for alternative and non-traditional uses and by structuring our agreements to allow for multiple uses over the life of the acreage.

In particular, we depend on operating partners to construct and operate water management and related systems on or adjacent to our acreage, and any reduction in activity by their upstream customers, failure to obtain or maintain required permits, or inability to access ROWs and pore space, could reduce throughput on such systems and adversely affect the royalties and fees we receive. As wells mature, are shut-in or plugged and abandoned, portions of our land may transition from drilling and completion activities to reclamation or repurposing, which can change the mix and timing of royalties and fees and necessitate incremental remediation or permitting before reuse. Although many of our surface use agreements include long terms, elements of exclusivity and specified fee schedules for surface uses, development pacing, commodity-driven spending, regulatory changes and permitting outcomes can materially impact customer activity and the timing and level of payments to us.

Our operating partners do not own all of the land on which their infrastructure is located, and certain portions of such infrastructure are subject to third-party leases, ROWs and easements. If an operating partner were to lose these rights or be required to relocate its infrastructure, our business could be materially and adversely affected through service interruptions or higher costs that reduce activity levels or delay projects on or around our land. In addition, if our operating partners are unable

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to enter into favorable commercial arrangements, obtain sufficient financing, or to obtain necessary regulatory and land use approvals on favorable terms and timelines, they may be unable to construct, expand or operate assets as anticipated, or at all, which could negatively affect our results of operations, cash flows and financial position.

Further, produced water handling and related activities depend on sufficient and reliable access to injection capacity and pore space, as well as regulatory approvals that are subject to change. Constraints in pore space availability, reservoir over-pressurization, seismicity-related curtailments, or new restrictions on injection, recycling or the cross-border movement of produced water, could limit our operating partners' ability to handle produced water volumes, in turn reducing activity on or around our land and adversely affecting our revenues tied to such activity. These risks may be compounded by commodity price volatility and consolidation among upstream producers, which can alter development plans in our areas and materially affect throughput and surface utilization underlying our fee and royalty streams. In addition, temporary or permanent moratoria, suspensions or other regulatory actions affecting injection or produced water recycling—including induced-seismicity response measures or changes or revocations to existing permits or changes to future permitting regimes—could further constrain throughput and materially affect the timing and level of our fee and royalty streams.

Although our contracts with operating partners and customers may include features such as acreage dedications, specified fee schedules, and minimum-royalty commitments, these provisions do not eliminate the volume, timing and counterparty risks associated with dependence on operating partners and their and our customer base, and contractual protections may include caps, carve-outs or other limitations. Certain contractual protections may also be limited by bankruptcy or insolvency laws, and counterparties may seek to reject, renegotiate or fail to assume our agreements in such proceedings, which could diminish expected volumes and payments notwithstanding such protections. In addition, under a put option agreement between Double Eagle and Hydrosource, Double Eagle has the right to sell, and Hydrosource has the obligation to purchase, DEF Operating if Double Eagle undergoes certain change of control events or at any time following five years from the date of this offering. If Double Eagle exercises such put right, it would cease to be one of our operating partners and we would lose the benefits of that relationship, and Hydrosource, our other operating partner, would become the owner of DEF Operating, which is the party to the DE Flow WSMA and the minimum royalty obligation thereunder. As a result, sustained reductions in operating partner activity, loss of land access rights, inability to obtain or maintain permits or sufficient financing, regulatory or geologic constraints or other adverse developments affecting our operating partners could have a material adverse effect on our business, financial condition, results of operations and cash flows.

***We rely on a small number of key individuals whose absence or loss could adversely affect our business, and difficulty attracting and retaining experienced personnel and qualified directors could reduce our competitiveness and prospects for future success.***

The successful operation and growth of our business depends to a large extent on a small number of key individuals to whom many integral responsibilities within our business have been assigned. We rely on our key personnel for their knowledge of the energy industry, relationships within the industry and experience in operating a business in our areas of operation. In particular, we depend on the continued services of our senior management team, including our Chief Executive Officer, Greg Pipkin Jr., our President and Chief Financial Officer, Neal H. Shah, and our General Counsel, Robert W. Hunt Jr. The loss of the services of one or more of these key personnel, directors or management team members, including Mr. Pipkin, Mr. Shah or Mr. Hunt, and the inability to recruit or retain additional key personnel, could have an adverse effect on our business. Further, we do not currently have a succession plan for the replacement of, and do not maintain "key-person" life insurance policies on, such key personnel.

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In addition, our business and the success thereof is also dependent, in part, on our ability to attract and retain qualified personnel. Acquiring and keeping these personnel could prove more difficult or cost substantially more than estimated due to competition within the broader energy industry. Other companies may be able to offer better compensation and benefits packages to attract and retain such personnel. If we cannot retain experienced personnel or attract additional experienced personnel, our ability to compete in our industry could be harmed, which could have a material adverse effect on our results of operations, cash flows and financial position.

***Our acreage is located in the Permian Basin, making us vulnerable to risks associated with geographic concentration in a single geographic area.***

Our acreage is located in the Permian Basin in Texas and New Mexico, making us vulnerable to risks associated with geographic concentration in that basin. In particular, we and our customers may be disproportionately exposed to the impact of regional supply and demand factors, delays or interruptions of production from oil and natural gas wells in this area, availability of equipment, facilities, personnel or services, market limitations, governmental regulation and political activities, processing or transportation capacity constraints, natural disasters, adverse weather conditions, water shortages or other drought related conditions or interruption of the processing or transportation of produced water, oil, natural gas and NGLs. For example, state regulators in Texas and New Mexico have, at times, limited produced-water handling through SRA measures and permit actions (including the NMOCD's July 2024 administrative cancellation of pending UIC Class II applications within the 10-mile County Line SRA), and similar actions in the future could disrupt produced-water handling on or near our land and reduce customer activity levels. Although our acreage is not currently included in any SRA, there can be no assurance that this will remain the case. These types of regional regulatory responses-and the underlying induced-seismicity concerns they seek to address-concentrate risk for operators within the Permian Basin relative to other basins.

In addition, the effect of fluctuations on supply and demand may become more pronounced within specific geographic oil and natural gas producing areas such as the Midland Basin and Delaware Basin, which may cause these conditions to occur with greater frequency or magnify the effects of these conditions. For instance, producer activity on and around our Midland Basin surface position ties directly to water infrastructure throughput contracts and any slowdown in development pacing, access to pore space, or permitting outcomes could reduce volumes that ultimately flow across our land and impact associated royalties and fees. In the Delaware Basin, localized seismicity management measures and differences between Texas and New Mexico produced-water permitting regimes can similarly affect development cadence on and around our surface position. Additionally, our water sales and other resource royalties may be adversely affected by risks associated with our geographic concentration, including the presence of a limited number of potential customers on or near our land, competition with adjacent landowners to provide an attractive development site for such resources, particularly if such landowners are closer to the location of oil and natural gas development activity, and legislation or regulatory initiatives limiting the utilization or transportation of water and other resources in the Permian Basin. In addition, our Hydrosource Recycling Agreement will include per-barrel royalties tied to recycled-water sales (with minimum annual volumes), such that any region-specific slowdowns or restrictions in the Permian Basin may directly impact our royalty receipts even when activity occurs off-ranch.

***Our operations depend upon access to available pore space in subsurface geologic formations for AGI wells and disposal of produced water. Our inability to acquire new pore space or our loss of existing pore space may negatively impact our ability to service new and existing customers.***

Our customers handle produced water generated during oil and natural gas operations by constructing produced water handling facilities and injecting such produced water into porous

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subsurface geologic formations. We have also experienced increased demand for our pore space for AGI wells, with the first AGI well contracted and projected to commence revenue activities within the next 12 months. The amount of subsurface pore space that is capable of permanently storing injected produced water or acid gas and carbon dioxide is finite. As third parties inject produced water or acid gas and carbon dioxide on our land, we may exhaust the geologic or technical limits of the subsurface strata. In addition, produced-water injection in parts of the Permian Basin has been subject to SRA measures and targeted permit actions, which can reduce or suspend injection in affected areas. For example, on July 11, 2024, the NMOCD administratively canceled 75 pending Class II permit applications within the 10-mile County Line SRA due to seismicity concerns. Although our acreage is not currently within an SRA, similar actions in the future could constrain injection alternatives near our land and heighten competition for available pore space.

Any loss of pore space or injection capacity on our land for technical, geological or regulatory reasons could require our customers to spend significant time and capital to locate, apply for, permit, drill, complete and place into service new produced water handling facilities and to build pipeline infrastructure to transport produced water to such new facilities. Our customers may also look for pore space on land we do not own or control. Permits for new produced water handling facilities could be challenged for a variety of reasons by our customers' competitors, oil and natural gas producers, landowners or non-governmental organizations. Such regulatory challenges could be successful and prevent our customers from being able to secure access to additional pore space on our land. By way of example, Texas regulators have previously suspended or declined to issue certain deep-zone disposal permits within designated SRAs in response to seismicity, and New Mexico protocols require rate limits and other curtailments after qualifying seismic events; outcomes that can delay or displace new injection capacity even where subsurface pore space exists. While our SWD footprint is concentrated on Midland Basin acreage in Texas, where permitting has generally been more favorable and seismicity lower than in New Mexico, pore-space and pressure limitations still ultimately cap injection capacity and may necessitate recycling or longer-haul solutions if disposal is constrained.

***Identified drilling locations, which are scheduled out over many years, are susceptible to uncertainties that could materially alter the occurrence or timing of their drilling.***

As of December 22, 2025, operators for the acreage associated with our properties have advised us that they have identified more than 3,144 gross horizontal drilling locations across our acreage. These drilling locations represent a significant part of our growth strategy. The ability of operators on our properties to drill and develop identified potential drilling locations will depend on a number of factors, including the availability of capital, seasonal conditions, regulatory changes and approvals, negotiation of agreements with third parties, commodity prices, costs, the generation of additional seismic or geological information, the availability of drilling rigs, drilling results, construction of infrastructure, inclement weather and lease expirations.

Further, identified potential drilling locations are in various stages of evaluation, ranging from locations that are ready to drill to locations that will require substantial additional analysis of data. We will not be able to predict in advance of drilling and testing whether any particular drilling location will yield production in sufficient quantities for operators to recover drilling or completion costs or to be economically viable. Even if sufficient amounts of oil or natural gas reserves exist, the potentially productive hydrocarbon bearing formation may be damaged or mechanical difficulties may develop while drilling or completing the well, possibly resulting in a reduction in production from the well or abandonment of the well. If operators drill dry holes in our current and future drilling locations, our business may be materially harmed. We cannot assure you that the analogies drawn from available data from other wells, more fully explored locations or producing fields will be applicable to our drilling locations. Further, initial production rates reported by us or our operators in our areas of operations may not be indicative of future or long-term production rates.

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Because of these uncertainties, we do not know if the potential drilling locations identified on our acreage will ever be drilled or if oil or natural gas reserves will be able to be produced from these or any other potential drilling locations, and we have little or no control over the timing of future drilling with respect to our acreage. As such, actual drilling activities with respect to our acreage may materially differ from those presently identified, which could adversely affect our business, financial condition, results of operations and cash available for distribution.

***We may not be successful in pursuing additional commercial opportunities on our land from non-traditional energy production and other users.***

One of our strategies is to expand the use of our land and sources of revenue beyond what is traditionally associated with oil and gas development. For example, we intend to pursue new potential revenue sources from wind and solar farm leases, battery storage and microgrids, behind the meter power generation, electric transmission lines, data centers, beneficial reuse, cryptocurrency mining and commercial real estate leases. We do not have experience developing many of these commercial opportunities and our efforts to do so may not be successful. We may not be able to correctly identify such commercial opportunities or may be unsuccessful in attracting industry participants to develop projects on our land or to use our resources. The rapidly evolving and competitive nature of many of the industries we are targeting for such development makes it difficult to evaluate the future prospects of these projects. In addition, we have limited insight into emerging trends that may adversely affect the development of such projects on our land, the use of our resources or otherwise, and many of these potential customers, if they were to materialize, would encounter the risks and difficulties frequently experienced by growing companies and project developers in rapidly changing industries, including unpredictable and volatile revenues, increased expenses, an uncertain regulatory environment, novel litigation and corresponding outcomes and changes in business conditions. The viability of this business strategy and the resulting demand for the use of our land and resources by such potential customers will be affected by many factors outside of our control and may not be successful.

***A significant portion of our acreage is held by us through leases from the Bureau of Land Management and the State of New Mexico. If we are unable to renew these leases in the future on similar or favorable terms, or at all, or if the activities we and our customers are permitted to conduct on our lands are materially changed or limited, our business and financial condition could be materially and adversely impacted.***

As of December 31, 2025, a substantial portion of our land portfolio was held through leases with the Bureau of Land Management (the "BLM") and the State of New Mexico. As of that date, we owned or controlled approximately 236,000 acres across Texas and New Mexico, including approximately 194,000 acres in the Delaware Basin, of which approximately 157,000 acres are controlled through grazing and mining leases with the State of New Mexico and the BLM, and approximately 37,000 acres are fee acreage. Our leasehold interests on New Mexico state lands are generally grazing and mining leases that grant us certain rights with respect to the surface for initial lease periods ranging from one to five years from inception. Our leasehold interests on federal lands with the BLM are generally grazing leases that grant us rights with respect to the surface for initial lease periods of approximately 10 years from inception. We anticipate renewing each of our existing leases, and any future additional leases, with the BLM and the State of New Mexico in accordance with the terms of each respective instrument; however, there can be no assurance we will be successful in procuring such renewals at all or on attractive terms. These leases do not convey permanent property rights and may be modified, repriced, suspended or not renewed by the issuing agencies based on changes to environmental standards, land use plans or other regulatory criteria.

As the agricultural lessee, we have leased possession and use of the grazing interest of the lands that are subject to the lease. When the surface is excavated or occupied by a surface use implemented

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by a third party, we receive payments to compensate us for the impairment of value and costs to repair the physical damage. Additionally, under New Mexico law, the holder of an easement or right-of-way is required to compensate the lessee for the reasonable value of any measurable damage incurred upon improvements or other property belonging to the lessee. These leases form the basis through which we are able to generate fees from our customers that operate on or use our land, as well as generate revenues from the sale of resources present on the acreage we control. On renewal, agencies may impose additional environmental mitigation measures, increase lease rental rates, restrict the timing, area or intensity of permissible activities or alter land use stipulations, any of which could increase our costs or constrain operations. Administrative appeals or litigation challenging agency decisions regarding our leases, rights of way or related approvals could delay planned activities, create uncertainty and result in higher legal and compliance costs. While New Mexico law requires holders of easements or rights of way to compensate the lessee for the reasonable value of measurable damage to the lessee's improvements or other property, any such compensation may be uncertain, delayed or insufficient to offset lost surface use fees, royalties or broader impacts to our operations.

Our ability to monetize our lands also depends on our customers obtaining and maintaining rights of way and easements, constructing and operating infrastructure and purchasing resources such as water and caliche on or across our acreage. Material restrictions or increased costs on renewal could reduce surface use fees, resource sales and volumetric or other royalty revenues and could require us or our customers to seek alternative locations or permits, increasing costs and delaying projects.

Our surface position is concentrated in the Delaware Basin in southeastern New Mexico, and our leased state and federal tracts are intermingled with our fee acreage and adjacent to third party operations. Constraints or loss of access on leased tracts could reduce utilization of adjacent fee tracts, limit our ability to offer contiguous corridors for rights of way and diminish the value or throughput of infrastructure located on or connected to our lands.

Renewal, modification or assignment of our leases may depend on evolving land use management plans and environmental standards. Changes in political priorities or public policy, including habitat conservation initiatives, drought management measures or greenhouse gas reduction goals, could result in cancellation, suspension or material modification of leases or permits affecting surface disturbing activities, including activities conducted by our customers.

If we are unable to renew our leases with the BLM and the State of New Mexico or applicable state or federal policy or rules regarding land use were to alter the rights granted by such leases, we would lose control of the underlying acreage and the associated fees and royalty revenues generated therefrom, which could adversely impact our business and financial condition. Additionally, if the activities that we and our customers are permitted to conduct on our leased lands are materially changed or limited, our ability to retain existing customers and attract new customers to further develop our surface holdings could be negatively impacted and our business, results of operations and financial condition could be materially and adversely affected as a result.

***The construction by customers of new infrastructure on and around our land is subject to regulatory, construction, supply chain and other risks common in the development and operation of facilities and other infrastructure.***

We intend to receive a portion of our revenues through agreements pursuant to which our customers develop infrastructure on our land. These infrastructure projects involve numerous regulatory, environmental, political and legal uncertainties, including political opposition by environmental groups, local groups and other advocates. Such opposition can take many forms, including the delay or denial of required governmental permits, organized protests, attempts to block or sabotage operations on or around our land, intervention in regulatory or administrative proceedings

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related to our customers' permitting efforts or otherwise involving their assets, or lawsuits or other actions designed to prevent, disrupt or delay the operation of our customers' assets or their business. There can be no assurance that such infrastructure will be developed at all or that these projects will be completed on schedule or at an economical cost, and we may not realize the anticipated benefits of such projects.

Our customers may also encounter technical difficulties during the construction of such infrastructure, leading to a reduction in capacity or a shorter useful life. Moreover, our customers may undertake expansion projects to capture anticipated future growth that does not materialize or for which they are unable to acquire new customers. As a result, the new facilities and infrastructure developed by our customers on our acreage may not be able to attract enough demand to achieve their expected investment return, which could materially and adversely affect our results of operations, cash flows and financial position.

In addition, acts of sabotage or eco-terrorism could cause significant damage or injury to people, property or the environment or lead to extended interruptions of operations. Moreover, governmental authorities exercise considerable discretion in the timing and scope of permit issuance, and the public may engage in the permitting process, including through intervention in the courts. Broader supply-chain disruptions, driven by changing trade policies, embargoes or customs restrictions, global conflicts, labor unrest or epidemics, can delay materials and equipment availability for pipeline construction and other infrastructure, increasing costs and extending schedules. Negative public perception or changes in governmental policies, priorities or direction could cause the permits our customers require to conduct their operations on and around our land to be withheld, delayed or burdened by requirements that restrict their ability to profitably conduct their business. Any such event that delays or otherwise interrupts the revenues generated by operations on and around our land, or which causes them to make significant expenditures not covered by insurance, could adversely affect payments to us in respect of use of existing infrastructure as well as future development of infrastructure on and around our land.

***This offering is conditioned on the occurrence of the Corporate Reorganization, but completion of the Corporate Reorganization and the contributions contemplated in connection with this offering may not occur as currently expected, or at all, which could materially and adversely affect our structure, strategy and the information presented in this prospectus.***

The Corporate Reorganization, including the L&E Contribution, the DE Flow Contribution and the Shallow Valley Contribution (collectively, the "Contributions"), is expected to be effected immediately prior to, and is conditioned upon, the consummation of this offering; if this offering is not consummated, the Corporate Reorganization will not be completed. The sequencing and completion of the steps in the Corporate Reorganization may be adjusted for administrative, technical or other reasons, including the timing of required consents and approvals, and remain subject to uncertainties and contingencies outside our control. In addition, actions or decisions by the relevant boards or equityholders of the contributing parties (including withholding or conditioning approvals, changing transaction terms or terminating transaction steps where permitted) could delay, alter or prevent completion of some or all of the Contributions. If any of the Contributions are delayed, altered or fail to occur, our organizational structure, asset base, governance and economic arrangements could differ materially from those described in this prospectus, our pro forma financial information and related disclosures would be rendered inaccurate or require revision and we may need to pursue alternative transactions or strategies, any of which could adversely affect our results of operations, cash flows and financial position.

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***We have identified material weaknesses in our predecessor's internal controls over financial reporting, and the failure to achieve and maintain effective internal controls over financial reporting could harm our business and negatively impact the value of our Class A shares. If we are unable to remediate these material weaknesses in a timely manner, we could be required to restate financial statements, delay or file late our periodic reports, incur increased audit and compliance costs, face regulatory scrutiny or litigation, and experience an adverse impact on our reputation, liquidity and cost of capital.***

In connection with the audit of our predecessor's consolidated financial statements as of and for the year ended December 31, 2025, we identified material weaknesses in our predecessor's internal control over financial reporting that we are currently working to remediate, which relate to: (a) insufficient segregation of duties in the financial statement reporting and general information technology processes; (b) a lack of sufficient levels of staff with public company, technical accounting, and general information technology experience to maintain proper control activities inclusive of detailed account analysis and reconciliations, and perform risk assessment and monitoring activities; and (c) insufficient general information technology controls, including access, security, and change management controls. A "material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. We have concluded that these material weaknesses in our predecessor's internal control over financial reporting occurred because our predecessor did not have the necessary business processes, personnel and related internal controls to operate in a manner to satisfy the accounting and financial reporting timeline requirements of a public company.

Effective internal controls are necessary for us to provide reliable financial reports, prevent fraud and operate successfully as a public company. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results would be harmed. Weaknesses affecting our financial close, complex/non-routine transactions (including acquisitions and equity-based compensation), income tax accounting, or information technology general controls could increase the risk of errors in our financial statements that may require correction or restatement and could impair management's ability to certify the effectiveness of disclosure controls and procedures. As a result of being a public company, we will be required, under Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting beginning in the year following our first annual report required to be filed with the SEC. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. While, as an "emerging growth company," we are not initially required to obtain an auditor attestation report under Section 404(b), we must still perform a management assessment under Section 404(a) and maintain effective disclosure controls under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), Exchange Act Rules 13a-15 and 15d-15. If we later cease to qualify for exemptions, we will be subject to auditor attestation, which could further increase costs and scrutiny. We will take steps to improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a continuous reporting and improvement process for our internal control over financial reporting. If we identify one or more material weaknesses in our internal control over financial reporting during the evaluation and testing process, we may be unable to conclude that our internal controls are effective. There can be no assurance as to when we will remediate the identified material weaknesses, that our remediation plans will be effective, or that additional material weaknesses will not be identified in the future.

We are focused on designing and implementing effective internal control measures to improve our evaluation of disclosure controls and procedures, including internal control over financial reporting and remediating the material weaknesses identified in our predecessor's internal controls over financial reporting. We plan to migrate from multiple legacy systems (including QuickBooks) to a new Oracle

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NetSuite ERP; implementation challenges may disrupt operations, delay reporting or create control deficiencies. While our remediation plan includes (i) recruiting additional qualified financial reporting and accounting personnel following the completion of this offering to enhance our financial reporting capabilities; (ii) establishing a SOX compliance program and internal audit function (in-house and/or co-sourced) with direct reporting to the audit committee; (iii) enhancing our financial close and reporting processes, policies and controls, including formal documentation, risk assessment and monitoring; (iv) implementing and enforcing information technology general controls over user access, security, change management, backups and logging, and periodic user access reviews; (v) implementing or upgrading enterprise resource planning and related sub-ledger systems and strengthening IT application controls; (vi) enhancing governance over non-routine and complex transactions (including business combinations, equity awards and income taxes) through technical accounting reviews and documented control approvals; and (vii) increasing oversight of and obtaining third-party SOC 1 reports (or equivalent assurance) for critical outsourced service providers and implementing complementary user controls, we cannot assure you that these measures will prevent or avoid potential future material weaknesses. Further, additional weaknesses in our disclosure controls and internal controls over financial reporting may be discovered in the future. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could limit our ability to prevent or detect a misstatement of our accounts or disclosures that could result in a material misstatement of our annual or interim financial statements. In such a case, we may be unable to maintain compliance with securities law requirements regarding the timely filing of periodic reports, in addition to the listing requirements of the NYSE and NYSE Texas, and investors may lose confidence in our financial reporting, and our stock price may decline as a result. In addition, control deficiencies could increase audit fees and advisory costs, strain management resources, adversely affect our ability to access the capital markets on acceptable terms, and, in severe cases, lead to debt covenant issues, regulatory investigations, shareholder litigation or delisting risk.

***Rapid or sustained technological change in well completions, water sourcing, recycling and produced-water management could decrease demand for our water sales and produced-water transportation, recycling and handling on or around our land, require us or our operating partners to invest in new or unproven technologies at significant cost, and adversely affect our results of operations, cash flows and financial position.***

Wide-scale adoption of higher-intensity recycling, beneficial reuse or alternatives to water-based hydraulic fracturing could reduce water demand for completions on our acreage, lower produced-water transport and handling volumes on systems located on or adjacent to our land, or redirect those volumes to infrastructure located off our land. These developments could reduce activity-based surface revenues and per-barrel royalties we receive from our operating partners and customers, including under arrangements that do not include minimum commitments or that are subject to caps, carve-outs or other limitations.

Several operators and service providers are investing in enhanced water recycling and reuse, including treatment of flowback and produced water for recompletion or other industrial uses, and in non-water fracturing techniques utilizing fluids such as propane, carbon dioxide, or nitrogen. If producers on or around our acreage were to shift completions toward higher-recycle designs or waterless fracturing at scale, the demand for our water sales could decline materially, and produced-water gathering and disposal patterns could shift away from facilities on or adjacent to our land, adversely affecting related royalties and fees.

Emerging beneficial-reuse concepts, such as treatment of produced water for industrial processes, non-consumptive agriculture, aquifer or reservoir recharge or technology-sector demand, may, over time, redirect volumes to third-party systems or uses that do not traverse our land or that reduce injection, transportation or handling activity associated with our royalty base, even if such concepts expand the overall market for treated produced water. While we believe beneficial reuse

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could create incremental commercial opportunities in the future, the pace, permitting pathways and economics of these applications are uncertain, and commercialization in our areas of operation may not benefit our assets or revenue mix.

Regulatory and permitting dynamics may amplify these technology shifts. In areas affected by seismicity-related constraints, regulators have suspended or limited produced-water injection and established SRAs, which can curtail disposal capacity and accelerate recycling investments by operators. Expanded recycling in response to injection constraints could reduce disposal throughput and associated fees or royalties on systems located on or proximate to our acreage, and prompt producers to re-route volumes to facilities located on third-party lands. In Texas and New Mexico, regulators have implemented protocols and permitting initiatives aimed at addressing seismicity, and additional measures could be adopted in the future that further restrict disposal locations, depths, rates or total volumes. Any of these actions could alter the economics of produced-water handling on our land and increase customers' incentive to adopt lower-water or waterless completion technologies.

Even where demand persists, our ability to participate in future water-technology trends may depend on access to permits, pore space, ROWs, and long-lead infrastructure. The finite nature of subsurface pore space and evolving preferences for acid-gas or carbon-dioxide injection could compete with or crowd out produced-water disposal, requiring our operating partners to develop alternative facilities on or off our land at higher cost, with extended lead times, or subject to third-party land control. If suitable pore space, ROWs, or permits cannot be obtained on favorable terms near our acreage, volumes could migrate to areas where we do not earn royalties, and our revenues could decline.

Our commercial arrangements mitigate, but do not eliminate, these risks. Certain Midland Basin water-infrastructure revenues are supported by acreage dedications, minimum-volume commitments and long-term agreements, and our Hydrosource Recycling Agreement will include a minimum annual royalty. However, not all agreements contain minimums, and those that do may include caps or other limitations. Even under dedicated or minimum-volume frameworks, customers may satisfy commitments through recycling or alternative handling pathways that reduce brackish water demand or shift produced-water flows away from higher-royalty configurations on our land.

If producers in our areas of operation broadly adopt higher-recycle completions, waterless fracturing or other completion technologies that reduce water intensity, our brackish water sales could decline, potentially on short notice and without compensation under our agreements. Likewise, if produced-water throughput to facilities on or adjacent to our acreage decreases due to seismicity-driven operating limits, beneficial-reuse programs, permitting delays or denials or competition for pore space from other subsurface uses, our surface-use revenues and per-barrel royalties from gathering, transportation, recycling and disposal could be adversely affected. In each case, we and our operating partners could face pressure to invest in new treatment, recycling, desalination or delivery technologies to remain competitive, and such investments may require significant capital, involve execution and permitting risk or fail to generate returns commensurate with the cost. Any of these outcomes could have a material adverse effect on our results of operations, cash flows and financial position.

***Inadequate water supplies could have a material adverse effect on our revenues.***

One of our significant sources of revenue is the sale of water for use in oil, natural gas and NGLs drilling and completion operations. Our ability to meet the existing and future demand for water depends on an adequate supply of such water from our acreage. Additionally, regulatory restrictions on the use of water and the development of water wells, lack of available water rights, drought, overuse of sources of water, protection of threatened species or habitats or other factors may limit the availability of water. No assurance can be given that we will be able to produce enough water to fully satisfy future customer demand.

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If we are unable to produce adequate water supplies, our results of operations, cash flows, and financial position may be adversely affected by, among other things, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a reduction in the amount of water we sell and reduced revenues therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in operating costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in capital expenditures associated with building pipelines to connect to alternative sources of water supply,
new wells to replace those that are no longer in service or are otherwise inadequate to meet the needs of customers, and reservoirs and other facilities to conserve or reclaim water.

We may or may not be able to recover increased operating and capital costs as a result of water shortages on a timely basis, or at all.

***Competition in the energy industry is intense, which may adversely affect our and our customers' and operating partners' ability to succeed.***

The energy industry is intensely competitive, and our customers and operating partners (including Hydrosource and Double Eagle) compete with other companies that may have greater resources. Many of these companies explore for and produce oil, natural gas and NGLs, conduct midstream and refining operations, engage in the recycling and reuse of produced water, and market petroleum and other products on a regional, national or worldwide basis. In addition, these companies may have a greater ability to continue operational activities during periods of low oil, natural gas and NGLs market prices. Our customers' and operating partners' larger and better capitalized competitors may be able to absorb the burden of present and future federal, state, local and other laws and regulations more easily than they can, which would adversely affect their competitive position. Our customers and operating partners may have fewer financial and human resources than many companies in their industry and may be at a disadvantage in bidding for developmental, transportation, gathering or exploratory prospects, conducting water recycling activities, expanding water recycling infrastructure, and producing or servicing oil, natural gas and NGLs properties. Furthermore, the oil and natural gas industry has experienced recent consolidation amongst some operators, which has resulted in certain instances of combined companies with larger resources. Such combined companies may compete against our customers or, in the case of consolidation amongst our customers, may choose to focus their operations on areas outside of our properties. In addition, our ability to acquire additional properties upon which potential customers may operate in the future will be dependent upon our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. Other risks as a result of competition and evolving markets may include but are not limited to: pricing pressure driven by new competition; volatile and/or unexpected operating and maintenance costs; lack of sufficient customers or loss of significant customers for the new line of business; increased regulation, including with respect to environmental and geological uses and impacts on industry operations; and uncertainty regarding outsourced third-parties, including our operating partners, providing water treatment recycling services.

***Sand operations are subject to operating risks that are often beyond the control of the mine operator. These risks can adversely affect production levels and costs, which could adversely affect sand production from our land.***

We do not operate the sand mines on our land, but certain of our customers may do so in the future. Customers who conduct such operations may be subject to risks normally encountered in the mining industry generally and the sand mining industry in particular. These risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the price and availability of transportation, natural gas or electricity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated ground, grade or water conditions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unforeseen issues with sand quality or suitability for use in oil and gas completion operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unusual or unexpected geological formations or pressures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pit wall failures or surface rock falls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inclement or hazardous weather conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental hazards contamination and industrial accidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in applicable laws and regulations (or the interpretation thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to maintain necessary permits or mining or water rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on blasting operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to obtain necessary mining or production equipment or replacement parts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fires, explosions or industrial accidents or other accidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technical difficulties or key equipment failures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• labor disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• late delivery of supplies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• facility shutdowns in response to environmental regulatory actions.

Any of these risks could result in damage to mining properties or production facilities, personal injury, environmental damage, delays in mining or processing, losses or possible legal liability. Any prolonged downtime or shutdowns of mining properties or production facilities could have a material adverse effect on our results of operations, cash flows and financial position.

In addition, transportation and related logistics costs are a significant component of the total delivered cost of sand for oil and natural gas operations. As a result, the cost of transporting sand to the well site is a key factor in our customers' purchasing decisions. The development of additional in-basin sand mines that are closer to areas of drilling activity could reduce demand for sand produced from our land. For example, a number of companies have announced plans to develop or acquire, are currently developing or expanding, or have recently acquired or completed sand mine projects in the Permian Basin that may be closer to ongoing development activity. Any such reduction in demand for sand from our land could materially affect our results of operations, cash flows and financial position.

***Interruption of our customers' supply chains could negatively impact our business and operations as well as reduce our revenues.***

Our business model depends on the timely execution of drilling, completion, water management, midstream buildout and other infrastructure and extraction activities conducted by our customers and operating partners on and around our acreage in the Permian Basin. Any material interruption in our customers' supply chains, including shortages, delays or increased costs for critical inputs and services, could reduce activity levels on or around our land, delay construction and development and decrease the royalties and fees we earn, thereby adversely affecting our results of operations, cash flows and financial position. Our customers rely on third party goods and services to drill and complete wells and to construct and operate gathering, produced water handling, recycling and disposal systems, power and grid interconnections and other infrastructure on our land, including drilling and completion equipment, pipe, pumps, electrical gear, chemicals, sand and proppant, caliche and road materials, heavy construction equipment and trucking and pipeline services, as well as skilled labor. Disruptions can arise from interruptions in service by third party providers or common carriers, congestion in regional logistics networks, tariffs and other trade restrictions, embargoes or customs

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rules, social or labor unrest, natural disasters, epidemics or pandemics, and political disputes or military conflicts, any of which can materially disrupt our customers' supply chains. If these materials and services are unavailable when needed, are delayed, or can only be procured at uneconomic prices, our customers may defer, curtail or resequence operations, which would negatively impact payments to us under our surface use agreements, water sales, produced water royalties and other revenue streams.

Because a substantial portion of our revenues is activity linked, arising from surface use fees, easements and rights of way, brackish water sales, produced water transportation, recycling and disposal royalties and resource sales such as caliche, extended procurement delays or shortages for our customers can directly reduce the number, pace or scale of projects undertaken on our land. Our operating partners' systems and commitments amplify this exposure. In the Midland Basin, our DE Flow System has peak handling capacity of approximately 400 MBbls/d and is backed by long-term acreage dedications and minimum volume commitments, but sustained supply chain constraints affecting pipeline, pump, electrical or disposal well equipment could limit throughput growth, delay tie ins or expansions or require reprioritization of projects, thereby reducing royalties and fees we expect to receive. Our Hydrosource Recycling Agreement will include a minimum annual royalty, and it will entitle us to per barrel royalties on certain recycled-water volumes sold across the Permian Basin, but equipment shortages, permitting delays, or inability to procure chemicals, power, trucking or commissioning services at reasonable rates could still defer or diminish activity and related payments to us. Regulatory and permitting constraints, including seismic response plans in Texas and New Mexico and produced water permitting practices, can further slow system adjustments, and weather and natural disasters can restrict site access, damage infrastructure or disrupt power and transportation networks, which together can delay construction and reduce handled volumes and near term revenues.

For example, a frac crew may be deferred because high pressure pumps or replacement parts are unavailable, which would reduce contemporaneous water sales and related surface use fees. Likewise, a delay in procuring electric transformers or switchgear needed to energize a water recycling facility could postpone ramp up of produced water handling volumes and associated royalties, and a shortage of pipe and valves could delay a produced water lateral tie in across our rights of way, deferring throughput and payments under our customers' contracts. In addition, trade policy actions by the U.S. federal government or foreign governments, including tariffs, sanctions or other restrictions on cross-border movement of equipment and materials, and retaliatory measures, can increase costs, reduce availability and dampen activity levels and demand for the use of our land and resources, while macroeconomic volatility, including interest rates, commodity prices and consolidation among upstream operators, can influence capital allocation and procurement in ways that intensify constraints or extend lead times. Although our agreements often include fee schedules, exclusivity on resources or minimum commitments for certain services, none of these terms fully insulates us from the timing and volume impacts that follow extended supply chain disruptions, and prolonged or severe disruptions could materially and adversely affect our results of operations, cash flows and financial position.

***Operational disruptions on or around our land from weather, natural disasters, terrorism or other similar causes could impact our results of operations, cash flows and financial position.***

Operational disruptions on or around our land may arise from a wide range of acute and chronic events, including severe weather and climate-related events (such as extreme heat, winter storms and freezes, drought, heavy rainfall and flooding, hail and high winds and tornadoes), geologic events (including earthquakes), wildfires and smoke, power grid instability and outages, cyber-physical attacks, terrorism, sabotage, vandalism, civil unrest or other similar causes. These events could damage or destroy infrastructure located on or near our land, including roads, pad sites, electric transmission and distribution lines, water sourcing and disposal systems, communications networks

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and our customers' gathering, processing and transportation infrastructure, and could result in evacuation orders, road closures, curtailments and extended downtime, any of which could disrupt operations on or around our land.

Additionally, our land is located in the Permian Basin, which is susceptible to periods of extreme heat, high winds and dust storms, intense thunderstorms, hail, flash flooding and winter freezes, as well as seismicity that may be associated with regional subsurface activities. These conditions could limit access to our land or facilities for extended periods, interrupt utility service (including electricity and water) and damage or otherwise impair our customers' wells, tanks, gathering lines, processing facilities and other infrastructure. In addition, emergency response constraints, workforce safety stand-downs, third-party force majeure declarations and supply chain interruptions (including shortages of steel, sand, chemicals, fuel and replacement parts) could extend related downtime and increase repair costs. Such disruptions could materially and adversely affect our results of operations, cash flows and financial position.

Broader regional or global incidents—such as public health emergencies, pandemics or epidemics; prolonged power or telecommunications outages; or geopolitical conflicts—could similarly disrupt our or our customers' businesses by restricting access to our land, reducing workforce availability, limiting contractor and supplier capacity, constraining the availability or increasing the cost of critical materials and services and curtailing demand or timing for our customers' production and development activities.

Any such destruction of or damage to infrastructure or interruptions of operations could materially and adversely affect our results of operations, cash flows and financial position. Moreover, insurance may not be available, sufficient or collectable to cover all resulting losses or increased costs (including higher deductibles, exclusions for certain perils or premium increases upon renewal). Repeated or severe events could also prompt changes in laws, regulations, permitting practices or land-use restrictions applicable to our land or our customers' operations, which could increase their costs, impose additional operational constraints or delay development. Finally, prolonged disruptions could adversely affect our relationships with customers and counterparties and could lead to disputes or litigation over performance, access, remediation obligations or force majeure, each of which could further impact our financial condition and results of operations.

***We or our customers may be unable to obtain and renew permits necessary for operations, which could materially and adversely affect our results of operations, cash flows and financial position.***

Our or our customers' ability to conduct operations is subject to a variety of required permits from various governmental authorities, which may limit such operations, including those associated with oil and natural gas drilling, completion and production activities, disposal or transport of produced water and other hazardous materials or wastes, construction, stormwater, water use, air emissions, mining, and other activities that may be conducted in association with operations on our land. The public often has the right to comment on permit applications and otherwise participate in the permitting process, including through court intervention. In addition, governmental authorities at the federal, state and local levels often retain significant discretion over these types of permits and may exercise that discretion based on shifting governmental policies, priorities and direction. Accordingly, permits required to conduct our or our customers' operations may not be issued, maintained or renewed, may not be issued or renewed in a timely fashion or may involve requirements that restrict our or our customers' ability to economically conduct operations. Limitations on our or our customers' ability to conduct operations due to the inability to obtain or renew necessary permits or similar approvals could materially and adversely affect our results of operations, cash flows and financial position.

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In particular, permits for produced water handling and disposal, air emissions, dredge and fill activities and surface-disturbing construction have become subject to heightened scrutiny, evolving technical standards and more frequent third-party challenges, which can extend timelines, increase costs or result in permit denials or revocations after issuance. In Texas and New Mexico, regulators have adopted seismic response measures and other directives that restrict or suspend certain produced water injection activities within designated areas, and future expansions of these measures could materially limit operations on or around our land, even where facilities previously operated in compliance with prior permits and practices. Moreover, changes in federal and state species-protection regimes and habitat designations, as well as local land-use controls, can impose additional permit conditions, seasonal timing restrictions or area-specific prohibitions that constrain drilling, infrastructure development and waste-handling activities on or adjacent to our acreage. Agencies also retain broad discretion to require enhanced monitoring, mitigation and reporting, or to reopen permits based on new information or policy priorities, which can increase compliance costs and delay development schedules for projects that are integral to our revenue streams. Finally, citizen suits, administrative appeals and other litigation can stay, overturn or narrow permits and approvals, even where applicants have satisfied all regulatory prerequisites, resulting in interruptions to operations, increased legal and consulting expenses and the need to redesign projects or seek alternative sites and ROWs.

***The deterioration of the financial condition of our customers could adversely affect our business, and the termination of activities on or around our land by one or more significant customers could materially and adversely affect our results of operations, cash flows and financial position.***

For the year ended December 31, 2025, on a pro forma basis, revenues from each of , and individually comprised more than 10% of our total revenues and collectively represented % of our total revenues. , and individually each comprised %, % and % of accounts receivable and collectively represented % of our outstanding accounts receivables at such date on a pro forma basis. For the year ended December 31, 2024, our predecessor's revenues from Matador Production Company, Coterra, Permian Resources Operating LLC and EOG Resources Inc. each individually comprised more than 10% of our total revenues and collectively represented 68% of our total revenues. Matador Production Company and Texas Pacific Water Resources LLC individually each comprised approximately 59% and 10% of accounts receivable and collectively represented approximately 69% of our outstanding accounts receivables at December 31, 2024. No other customer accounted for more than 10% of our total revenues or outstanding accounts receivable.

We expect to continue to depend on key customers to support our revenues for the foreseeable future, and although most of our customers on our land are under long-term contracts, each of these customers has the right to reduce or cease operations on our acreage at their sole discretion under certain circumstances, as our contracts with such customers generally do not contain minimum commitment provisions for land use or brackish water volumes to be purchased. See "Business—Customers; Material Contracts and Marketing" for further information on our agreements with these customers. The loss of revenue derived from any of these customers' operations on our land could adversely affect our results of operations, cash flows and financial position. During times when the oil and natural gas markets weaken, our customers are more likely to experience financial difficulties, including generating less cash flow due to lower oil and natural gas prices and being unable to access or receive favorable terms in connection with debt or equity financing, which could result in a reduction in our customers' activities on or around our land. Furthermore, the determination by a customer to initiate or maintain activities on or around our land largely depends on the location of our surface acreage relative to the nature and location of such customer's operations and such customer's need for the use of our land and resources. Our customers are limited to entities operating on and around our acreage in the Permian Basin.

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We cannot assure you that any of our customers will continue to do business with us. If these customers do not maintain their activities on or around our land, their demand for use of our land and resources will be reduced. The loss of revenue from key customers, failure to renew contracts upon expiration, or a sustained decrease in demand by key customers could result in a substantial loss of revenues and could materially and adversely affect our results of operations, cash flows and financial position.

***The unavailability, high cost or shortages of equipment, raw materials, supplies or personnel may restrict or result in increased costs for our customers related to their operations on and around our land.***

The energy industry is cyclical, which can result in shortages of equipment, raw materials, supplies and personnel. When shortages occur, the costs and delivery times of equipment and supplies increase and demand for, and incentive costs and wage rates of, qualified personnel also rise with increases in demand. In addition, capital and operating costs in the energy industry have generally risen during periods of increasing commodity prices as operators seek to increase production to capitalize on higher commodity prices. We cannot predict whether these conditions will exist in the future and, if so, what their timing and duration will be. In accordance with customary industry practice, the operators on and around our land rely on independent third-party service providers to provide many of the services and equipment necessary to drill new wells. The cost of oilfield services typically fluctuates based on demand for those services, and the increase in commodity prices and supply constraints due to tariffs, the conflicts in Ukraine and the Middle East, elevated interest rates and associated policies of the Federal Reserve or otherwise, have increased the cost of oilfield services. While we believe the operators on and around our land currently have strong relationships with the oilfield service companies they contract with, there is no assurance that such operators will be able to contract for such services on a timely basis or that the cost of such services will remain at a satisfactory or affordable level. If such operators are unable to secure the equipment and supplies they require at reasonable costs, our financial condition and results of operations could suffer.

Because a substantial portion of our revenues is activity-linked, extended procurement delays or shortages for our customers can directly reduce the number, pace or scale of projects undertaken on or around our land and diminish the royalties and fees we earn, even where we have long-term agreements, acreage dedications or minimum commitments. For example, a frac crew may be deferred because high-pressure pumps or replacement parts are unavailable, which would reduce contemporaneous water sales and related surface-use fees; a delay in procuring electric transformers or switchgear needed to energize a water recycling facility could postpone ramp-up of produced-water handling volumes and associated per-barrel royalties; and a shortage of pipe and valves could delay a produced-water lateral tie-in across our rights of way, deferring throughput and payments under our customers' contracts. Broader supply-chain disruptions, including tariffs, sanctions or other trade restrictions, embargoes or customs rules, social or labor unrest, natural disasters, epidemics or pandemics, and political disputes or military conflicts, can materially disrupt our customers' supply chains and elevate costs, further dampening activity levels and demand for the use of our land and resources. Although our commercial arrangements often include specified fee schedules, exclusivity on certain resources and, in some cases, minimum-volume commitments, these provisions do not eliminate the timing and volume risks associated with supply-chain constraints, and prolonged or severe disruptions could materially and adversely affect our results of operations, cash flows and financial position.

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***We may experience delays in the payment of royalties and fees and be unable to replace customers or operators on our land that do not make required payments to us, and we may not be able to terminate our agreements with defaulting customers or operators that declare bankruptcy.***

We may experience delays in receiving royalties, fees and other payments from our customers or operators on our land. A failure on the part of a customer or operator to make royalty payments typically gives us the right to enforce payment obligations under the agreement and/or terminate the agreement. With respect to a customer or operator that is subject to a proceeding under Title 11 of the United States Code (the "Bankruptcy Code"), our right to enforce or terminate the agreement for any defaults, including nonpayment, may be substantially delayed or otherwise impaired. In general, in a proceeding under the Bankruptcy Code, the bankrupt customer or operator would have a substantial period of time to decide whether to ultimately reject or assume our agreement, which could prevent the execution of a new agreement or the assignment of the existing agreement to another customer or operator. In the event that the customer or operator rejected the agreement, our ability to collect amounts owed would be substantially delayed, and our ultimate recovery may be only a fraction of the amount owed or nothing. In addition, if we are able to enter into a new agreement with a new customer or operator, the replacement customer or operator may not achieve the same levels of activity on or around our land at the same price as the customer or operator it replaced.

Additionally, we are subject to the risk of loss resulting from nonpayment or nonperformance by our customers of their respective obligations. Although we maintain policies and procedures to limit such risks, our credit procedures and policies may not be adequate to fully eliminate customer credit risk. If we fail to adequately assess the creditworthiness of existing or future customers or unanticipated deterioration in their creditworthiness, any resulting increase in nonpayment or nonperformance by them of their respective obligations, and our inability to collect on outstanding receivables or find substitute customers could have an adverse effect on our results of operations, cash flows and financial position. A decline in oil, natural gas and NGLs prices could negatively impact the financial condition of our customers and sustained lower prices could impact their ability to meet their obligations to us. Further, our contract counterparties may not perform or adhere to our existing or future contractual arrangements. To the extent one or more of our contract counterparties is in financial distress or commences bankruptcy proceedings, contracts with these counterparties may be subject to renegotiation or rejection under applicable provisions of the Bankruptcy Code. Any material nonpayment or nonperformance by our contract counterparties due to inability or unwillingness to perform or adhere to contractual arrangements could adversely affect our results of operations, cash flows and financial position.

***The fees charged to customers under our agreements for the gathering, transportation or handling of all our resources may not escalate sufficiently to cover increases in costs.***

Though we incorporate inflation escalators in most of our long-term customer contracts, contractual provisions providing for inflation escalators in certain contracts are subject to caps, which may limit the amount of any single pricing increase, and may also vary as to the commencement date of such increases and the timing and calculation of the applicable adjustment. As a result, inflation may outpace the revenue adjustments provided by those provisions. Our customers may also experience supply chain constraints, due to international trade policies or otherwise, and inflationary pressure on their cost structures, which could impact the revenues we receive from them. Our customers also may face shortages of equipment, raw materials, supplies, commodities, labor and services, which may prevent them from executing their development plans on or around our land. These supply chain constraints, trade policies and inflationary pressures may continue to adversely impact our customers' operating costs and, if they are unable to manage their supply chain, it may impact their ability to procure materials and equipment in a timely and cost-effective manner, if at all, which could materially

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and adversely affect the revenues received in respect of our customers' operations on or around our land and consequently our business, results of operations and financial condition.

***We and our customers may be subject to claims for personal injury and property damage, catastrophic events, and those related to contamination resulting from our customers' operations, which could have a material and adverse effect on our results of operations, cash flows and financial position.***

We and our customers may be subject to hazards and operational risks associated with their operations, which include, or may in the future include, oil and natural gas drilling, completion and production activities, sand mining, production and distribution of water, water handling, waste disposal, construction and operation of non-hazardous oilfield reclamation and solid waste facilities, power storage, microgrids, fuel stations, battery, wind and/or solar facilities, and any other operations, including our associated operations, that may occur on our properties now or in the future. These hazards may include the risk of fire, explosions, blowouts, seismic events, surface cratering, uncontrollable flows of oil, natural gas, NGLs and produced water, pipe or pipeline failures, abnormally pressured formations and pore spaces, casing collapses and environmental hazards such as oil and NGL spills, natural gas leaks and ruptures or discharges of toxic gases, release of hazardous materials into the environment and worker health and safety issues. The occurrence of any of these events could result in interruption of our customers' operations or substantial losses to us and our customers due to injury or loss of life, severe damage to or destruction of property, natural resources and equipment, pollution or other environmental damage, clean-up responsibilities, regulatory investigations and penalties, suspension of operations and repairs required to resume operations, which could have a material adverse effect on our results of operations, cash flows and financial position.

Litigation arising from operations on our properties may cause us to be named as a defendant in lawsuits asserting potentially large claims, including claims for defense, indemnity, and exemplary damages. Our business entails frequent interaction with landowners, regulators and E&P counterparties that can give rise to disputes, including access, damages or environmental claims. We generally seek indemnity from our customers for liabilities arising from their operations on our land, and we maintain what we believe is customary and reasonable insurance to protect our business against these potential losses, but such indemnity and insurance may not be adequate to cover our liabilities, and we are not fully protected or insured against all risks.

Subject to certain exceptions, our customers assume responsibility for, including control and removal of, all other pollution or contamination that may result from their operations on our properties. We may have liability in such cases if we are grossly negligent or commit willful acts, or as owners of the land under laws that impose strict, joint and several liability for pollution clean-up, such as CERCLA (as defined herein). Our customers generally agree to indemnify and defend us against claims relating to contamination resulting from their operations and related closure and remedial obligations, damage or loss of a well, reservoir, geological formation, underground strata or water resources, or the loss of oil, natural gas, mineral or water, but sometimes such indemnity and defense is subject to exceptions for claims for gross negligence or willful misconduct, and we may not be able to collect under these indemnities if the applicable customer is in financial distress. Our customers also generally assume responsibility for claims arising from their employees' personal injury or death, or the damage or loss of their property, to the extent that their employees are injured or their properties are damaged by operations on our properties, but sometimes such indemnity and defense is subject to exceptions for claims resulting from our gross negligence or willful misconduct, and we may not be able to collect under these indemnities if the applicable customer is in financial distress. Further, we might not succeed in enforcing such contractual risk allocation or might incur an unforeseen liability falling outside the scope of such risk allocation.

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The occurrence of any of these events could result in interruption of our customers' operations or substantial losses to us or our customers, which could materially and adversely affect our results of operations, cash flows and financial position.

***Our insurance coverage may not fully cover our losses, and we may in the future encounter increased costs related to, and lack of availability of, insurance.***

While we maintain insurance coverage at levels that we believe are reasonable and prudent for a Permian Basin-focused land management company, our policies are subject to deductibles, self-insured retentions, exclusions and sublimits, including for pollution, cyber, named storms and seismic events, and certain risks may be uninsurable or uneconomic to insure at desired limits. We can provide no assurance that our current levels of insurance will be sufficient to cover any losses that we have incurred or may incur in the future, whether due to these retentions, coverage challenges or other limitations, and proceeds, if any, may not be paid in a timely manner. Moreover, we may not be able to maintain adequate insurance in the future at rates or on other terms we consider commercially reasonable, including as insurers raise rates or reduce capacity for traditional energy-related risks.

Our business model depends heavily on activities conducted by our customers and operating partners on and around our surface acreage, and although our contracts generally require them to carry specified insurance, name us as an additional insured on a primary and non-contributory basis, provide waivers of subrogation and furnish evidence of coverage, such obligations are subject to carve-outs (including for our gross negligence or willful misconduct), counterparty credit risk and claims-made program limitations. As a result, we cannot guarantee continuous compliance or that such policies will respond to all losses. We also generally seek indemnities from customers for liabilities arising from their operations, but those indemnities may be limited or unenforceable and, if a counterparty is in financial distress, may not be collectible.

Because our acreage is located in the Permian Basin, our exposure to extreme weather and natural hazards, such as storms, floods, tornadoes, droughts, wildfires and seismic events, can increase the likelihood of property damage and operational interruptions that may fall within policy exclusions, sublimits or elevated deductibles, or for which insurance may be unavailable. In addition, our growing reliance, and that of our customers and vendors, on information technology systems supporting activities such as produced water handling, sourcing and delivery, and rights-of-way administration exposes us to cyber incidents. While we maintain commercially reasonable safeguards, cyber risks are evolving and may exceed available insurance, particularly where policies include cyber sublimits or exclusions. If a significant event were to occur and its consequences were not covered by insurance or not fully insured, or if payment of a major insurance claim were significantly delayed or denied, our results of operations, cash flows and financial position could be materially and adversely affected.

***Cyber incidents or attacks targeting systems and infrastructure used by the energy and infrastructure sectors, or systems we and third-parties use to administer surface access, SUAs, easements, ROWs and water midstream activities on and around our acreage, may adversely impact our operations, and a cyber incident or systems failure could result in information theft, data corruption or operational disruption and our results of operations, cash flows and financial position may be adversely impacted.***

We and our customers increasingly rely on uninterrupted information technology systems and digital technologies to operate our respective businesses. This reliance extends to the majority of our and our customers' operations, from monitoring and managing critical infrastructure to processing and storing proprietary and sensitive information, including systems supporting activities on and around our acreage, such as produced water gathering and disposal (including SWDs), water sourcing and

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delivery, recycling facilities, pipeline and power transmission ROWs, wind leases and other infrastructure. Our information technology systems and networks, and those of our customers, vendors and other business partners, are subject to damage or interruption from cyberattacks, power outages, computer and telecommunications failures, catastrophic events, such as natural disasters or acts of war or terrorism, usage errors by our employees or other personnel and other events unforeseen or generally beyond our control. Damage or interruption to information technology systems could result in significant costs and may lead to significant liability, loss of critical data, reputational damage and disruptions to services or operations.

Threats to information technology systems associated with cybersecurity risks and cyber incidents or attacks continue to grow. Cyber incidents, including deliberate attacks, have increased in frequency globally, with energy-related assets particularly at risk. Due to the critical nature of these assets, any such attack on energy infrastructure could result in widespread service disruptions and challenges in maintaining public trust. The U.S. government has issued public warnings that specifically indicate energy assets could be targets of cybersecurity threats. Our technologies, systems and networks, and those of our customers, affiliates, vendors and other business partners, may become the target of cyberattacks or information security breaches that could result in the unauthorized access, release, gathering, monitoring, corruption, misuse or destruction of proprietary, personal and other information, or other disruption of business operations. Any such event could lead to significant liability, loss of critical data, reputational damage and disruptions to our services or operations.

While we have implemented and maintain commercially reasonable security measures and safeguards, such security measures and safeguards may not be sufficient to protect against an attack. We do not own or operate most of the infrastructure on our land, which increases our dependence on the cybersecurity and operational resilience of third parties. Attackers are increasingly using advances in technologies, such as artificial intelligence and encryption bypasses that may evade our efforts. Emerging artificial intelligence technologies may improve or expand the capabilities of malicious third parties in a way we cannot predict at this time, including being used to develop new hacking tools, exploit vulnerabilities, obscure malicious activities and increase the difficulty of detecting threats. Moreover, some of our networks and systems are managed by third-party service providers and are not under our direct control. We regularly enter into transactions with third parties, some of whom may have less sophisticated electronic systems or networks and may be more vulnerable to cyberattacks. Our reliance on these third parties means that any vulnerability in their systems could propagate to our own systems, increasing our risk exposure despite our internal controls.

In addition, certain cyber incidents, such as surveillance, ransomware, deepfake-based social engineering attacks, and credential stuffing, may remain undetected for some period of time, and cybersecurity incidents and attacks are continually evolving and unpredictable. As cyber incidents and attacks continue to evolve, we may be required to expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate any vulnerability to cyber incidents. While we utilize various procedures and controls to reduce the risk of the occurrence of cyber incidents, there can be no assurance that our business, finances, systems and assets will not be compromised in a cyber incident. Any failure or perceived failure to detect or respond effectively to a cybersecurity incident could lead to significant liability, undermine shareholder and stakeholder trust and negatively impact business continuity. Furthermore, we are subject to an evolving regulatory landscape, including state, federal and international data privacy laws that require rigorous cybersecurity standards and standards relating to artificial intelligence. Compliance with various data privacy and cybersecurity regulations may impose significant costs, and any perceived or actual failure to comply could result in regulatory penalties, litigation and reputational harm.

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***The Unaudited Pro Forma Condensed Consolidated Financial Statements, and any other pro forma data, included herein are based on a number of preliminary estimates and assumptions and our actual results of operations, cash flows and financial position may differ materially.***

The Unaudited Pro Forma Condensed Consolidated Financial Statements, and any other pro forma or pro forma, as adjusted information included in this prospectus, are based on numerous preliminary estimates and assumptions and are presented for illustrative purposes only. Our actual results of operations, cash flows and financial position following the contemplated transactions may differ materially and adversely from such pro forma or pro forma, as adjusted information. The pro forma and pro forma, as adjusted presentations reflect the effects of specific transactions and structuring steps, including the Accelerated Acquisition, the exclusion of the Excluded Assets, the Shallow Valley Contribution, the DE Flow Contribution, the Up-C Reorganization and this offering, as well as the application of the net proceeds therefrom as described under "Use of Proceeds," and are not necessarily indicative of the results that would have been achieved had those transactions occurred on the dates assumed, nor are they indicative of our future results. Our pro forma information is derived from historical financial statements of L&E (our predecessor), and incorporates transaction accounting and reclassification adjustments to conform presentations across L&E, Accelerated, DE Flow and Shallow Valley. These adjustments are preliminary, based on currently available information and management assumptions that we believe are reasonable, but actual purchase accounting and conforming adjustments could differ materially once final valuations and alignments are completed. The Unaudited Pro Forma Condensed Consolidated Financial Statements have been prepared with the predecessor as the accounting acquirer under GAAP using the acquisition method in accordance with ASC 805 and fair value concepts under ASC 820, and reflect preliminary estimates of the fair value of assets to be acquired and liabilities to be assumed. These estimates are subject to change during the measurement period (which may extend up to one year from each acquisition date) as additional information becomes available, and any such changes could materially affect future depreciation, amortization, deferred taxes, goodwill, intangible asset values and related expenses.

Because the pro forma, as adjusted presentations assume this offering and the Up-C Reorganization occurred at specified dates, they embed assumptions regarding corporate structure, equity ownership and non-controlling interest that may not reflect our actual post-offering capitalization over time, particularly as OpCo Unitholders exercise redemption or exchange rights and our relative interest in OpCo increases, which may reduce comparability with historical or pro forma periods. The pro forma, as adjusted information assumes an application of net offering proceeds that includes repayment and termination of our Predecessor Credit Facility, distributions to Existing Owners and funding for general corporate purposes. Changes in actual offering size, pricing, exercise of the underwriters' option to purchase additional Class A shares, timing of closing or changes in the planned uses of proceeds would result in material differences from the pro forma balance sheet, capitalization and earnings profiles presented. Our pro forma, as adjusted tax provision reflects an assumed blended statutory tax rate associated with our election to be taxed as a corporation. Actual effective tax rates may differ due to changes in tax laws, regulations, apportionment, state mix, valuation allowances, permanent differences or the final purchase accounting for acquired assets and liabilities. The pro forma presentations necessarily exclude various incremental operating expenses and one-time costs, including certain public company costs, integration and transition costs and systems alignment expenses associated with combining the contributed assets and entities. Our actual results after the Pro Forma Transactions will reflect such costs and may therefore be less favorable than the unaudited pro forma information. The Accelerated Acquisition financing, warrant issuances and subsequent modifications, as well as any fair value changes for liability-classified warrants, could result in earnings volatility or differences from pro forma assumptions if accounting conclusions or fair value measurements differ from preliminary estimates.

Our pro forma results incorporate adjustments related to the exclusion of the Excluded Assets and the inclusion of the DE Flow Contribution and Shallow Valley Contribution. If the final terms,

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closing dates, fair value determinations, asset performance or integration outcomes differ from the assumptions reflected in the pro forma information, our actual revenues, margins, depreciation and amortization and cash flows could vary materially. Pro forma presentations rely on historical carve-out financial statements for certain contributed businesses and on reclassification adjustments to align accounting policies and presentation. Inaccuracies, limitations or subsequent updates to such historical financial statements, or differences in finalized policy alignments, could materially change the effects reflected in our unaudited pro forma financial information. In addition, assumptions embedded in our pro forma liquidity and capitalization, including the availability and expected use of our Credit Facility, our anticipated cash needs and our projected ability to fund operations and potential dividends from Free Cash Flow, are inherently uncertain and depend on factors outside our control, including activity on our acreage and broader market conditions. Adverse developments could require different financing strategies than those reflected in the pro forma presentations. For these reasons, investors should not place undue reliance on the Unaudited Pro Forma Condensed Consolidated Financial Statements or other pro forma, or pro forma, as adjusted information. Future results may differ from the pro forma information and the differences may be material and adverse.

***Title to the properties in which we have an interest may be impaired by title defects.***

Title defects can arise in numerous ways that may not be apparent from public records or typical broker-level examinations, including gaps or breaks in the chain of title; conflicting conveyances and reservations of mineral, royalty, overriding royalty or non-participating royalty interests; unrecorded liens or claims; heirship, probate or estate matters; survey or boundary discrepancies; prior lease terminations or expirations; pooling, unitization or spacing irregularities; and failures to properly record, authorize or index instruments in applicable counties or agencies. Any such defect may result in challenges to our ownership, curative costs, delays in development on or around our land, or the loss or dilution of our interests. Even when defects are identified, curative actions may be impracticable, costly or time-consuming, and there is no assurance we will be able to obtain satisfactory remedies. Curing title defects can require additional title work, new conveyances, ratifications, stipulations, corrective instruments, quiet title actions or other litigation, consents from third parties or governmental authorities, and payment of consideration to adverse claimants, any of which may delay commercial arrangements and increase transaction or operating costs. Moreover, sellers may be unwilling or unable to provide effective indemnities or other protection against all or part of identified problems, and title insurance may be unavailable or limited in scope. Our operations depend on a mosaic of surface and easement interests assembled over time; defects, competing claims, restrictive terms or challenges by counterparties could interrupt operations, increase costs or reduce revenues. Disputes regarding surface damages, access or use restrictions can be frequent and costly in our operating areas, and an adverse outcome could affect service availability or pricing. Title deficiencies can directly affect our revenues and liquidity.

***New trade policies, such as tariffs, could adversely affect our operations, costs, and business.***

There is currently significant uncertainty regarding the future relationship between the United States and various other countries arising from changes that may be implemented by the current presidential administration, including with respect to trade policies, treaties, tariffs, taxes, and other limitations on cross-border operations. Any actions taken by the United States' federal government that restrict or otherwise impact the economics of trade—including tariffs, trade barriers, or other similar measures—could have the potential to disrupt existing supply chains and trigger retaliatory efforts by other countries, including the imposition of tariffs, raising taxation, setting foreign exchange or capital controls, or establishing embargos, sanctions, or other import/export restrictions, thereby negatively impacting our business, both directly and indirectly. These developments, or the perception that more of them could occur, may materially adversely affect the global economy and stability of global financial markets, potentially reducing trade and depressing economic activity. Such changes in international

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trade policies may result in direct impact to our business or that of our operators through increased costs, changes in business prospects or operating results, which could adversely affect our financial condition. The extent of such impacts cannot be predicted at this time.

**Risks Related to Environmental and Regulatory Matters** 

***Oil, natural gas and NGLs operations are subject to various governmental laws and regulations. Compliance with these laws and regulations can be burdensome and expensive for our customers, and failure to comply could result in our customers incurring significant liabilities, either of which may impact our customers' willingness to operate on our surface acreage and may subject us to strict, as well as joint and several, liability for contamination resulting from such failure, even if we do not have control over such operations. We generally do not control our customers' operations on our surface acreage and cannot ensure their compliance with applicable requirements, which may increase our residual exposure notwithstanding contractual indemnities and insurance.***

The value of the revenues we receive from the use of our surface acreage and resources by our customers is substantially based on the level of oil and natural gas drilling and production and transportation and gathering activities with respect thereto. Our customers' level of activities on our surface acreage is subject to various federal, state and local governmental laws and regulations that may change from time to time in response to economic and political conditions. Matters subject to these laws and regulations include drilling operations, production, gathering, transportation and distribution activities, water sourcing and disposal, air emissions, discharges or releases of pollutants or wastes, storage, plugging and abandonment of wells, maintenance and decommissioning of other facilities, the spacing of wells, unitization and pooling of properties and taxation. From time to time, regulatory agencies have imposed price controls and limitations on production by restricting the rate of flow of oil and natural gas wells below actual production capacity to conserve supplies of oil, natural gas and NGLs. More recently, certain state agencies have implemented seismic-response measures and permitting constraints that affect produced-water injection and related recycling, which can curtail drilling and completion cadence on or around our acreage.

In addition, the production, handling, storage, gathering and transportation of oil, natural gas and NGLs as well as the remediation, emission and disposal of oil, natural gas and NGLs wastes, by-products thereof and other substances and materials produced or used in connection with oil, natural gas and NGLs operations are subject to regulation under federal, state and local laws and regulations primarily relating to protection of worker safety and health, natural resources and the environment. Failure to comply with these laws and regulations may result in the assessment of sanctions on our customers, including administrative, civil or criminal penalties, permit, license or authorization revocations or suspensions, requirements for additional pollution controls, imposition of cleanup and site restoration costs and liens, and injunctions limiting or prohibiting some or all of our customers' operations on our properties. Moreover, these laws and regulations have generally imposed increasingly strict requirements related to water use and disposal, air pollution control, species protection and waste management, among other matters.

Laws and regulations governing E&P activities may also affect production levels. Certain of our customers must comply with federal, state and local laws and regulations governing conservation matters, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provisions related to the unitization or pooling of oil and natural gas properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the establishment of maximum rates of production from wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the spacing of wells;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the plugging and abandonment of wells; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the removal of related production equipment.

Additionally, federal and state regulatory authorities may expand or alter applicable pipeline-safety laws and regulations. The Pipeline and Hazardous Materials Safety Administration has completed several regulatory actions over the last few years, consistent with the Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020, which significantly expanded reporting and safety requirements for operators of gas gathering pipelines, including previously unregulated pipelines. Compliance with such regulations may require increased capital costs for third-party oil, natural gas and NGLs transporters. These transporters may attempt to pass on such costs to our customers, which in turn could affect the profitability of our surface acreage. Our customers must also comply with laws and regulations prohibiting fraud and market manipulations in energy markets. To the extent our customers are shippers on interstate pipelines, they must comply with the tariffs of those pipelines and with federal policies related to the use of interstate capacity.

Moreover, under certain environmental laws that impose strict as well as joint and several liability, we may be required to remediate contaminated properties owned by us even if a customer's operations caused the contamination. In addition, our customers may be liable for the remediation of contamination at currently or formerly operated facilities and facilities of third parties that received waste generated by our customers' operations, regardless of whether such contamination resulted from the conduct of others or from consequences of actions that were in compliance with all applicable environmental laws at the time those actions were taken. In addition, claims for damages to persons or property, including natural resources, may result from the environmental, safety and health impacts of the operations of our customers. While we seek to mitigate any potential liability we may have through indemnification, customary insurance policies and remediation activities, in each case, required under our contracts, as well as reliance on state funded programs (such as the Texas Railroad Commission's (the "TRRC") Orphan Well Program) for coverage of plugging and abandonment liabilities, if any of our customers declared bankruptcy or if our insurance policies did not fully cover such liabilities, we may not be fully protected. Additionally, although we generally have rights to inspect our property and the operations thereon, we may not become aware of all environmental, safety and health matters. The trend of more expansive and stringent environmental legislation and regulations applied to extractive industries, such as those in which our customers engage, could continue, resulting in increased costs of doing business and consequently affecting profitability. To the extent laws are enacted or other governmental actions are taken that restrict our customers' operations or impose more stringent and costly operating requirements, our customers' operations could face increased costs and potential curtailment of operations, which consequently could indirectly materially and adversely affect our business, cash flows, prospects, financial condition or results of operations. Please read "Business—Regulation of Environmental and Occupational Safety and Health Matters" for a description of the laws and regulations that affect our customers and that may affect us.

***Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could cause certain of our customers to incur increased costs, additional operating restrictions or delays and a reduction in potential drilling locations. Any such impacts could, in turn, reduce activity levels and related payments on or around our surface acreage.***

Certain of our customers engage in hydraulic fracturing. Hydraulic fracturing is an important and common practice that is used to stimulate production of oil, natural gas and NGLs from dense subsurface rock formations. The process involves the injection of water, sand or alternative proppant and chemicals under pressure into targeted geological formations to fracture the surrounding rock and stimulate production. We do not operate our customers' wells and therefore have limited ability to influence their compliance with evolving hydraulic fracturing requirements.

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Currently, hydraulic fracturing (other than that using diesel) is generally exempt from regulation under the Underground Injection Control ("UIC") program of the U.S. Safe Drinking Water Act (the "SDWA") and is typically regulated by state oil and gas commissions or similar agencies. While our customers engaged in hydraulic fracturing do not currently use diesel fuels in their hydraulic fracturing fluids, they may become subject to federal permitting under the SDWA if their fracturing formula changes and may incur significant costs to comply with disposal requirements for hydraulic fracturing fluids and produced water. In addition, the U.S. Congress ("Congress") from time to time has considered legislation to amend the SDWA to remove the exemption currently available to hydraulic fracturing, which would place additional regulatory burdens on hydraulic fracturing operations including requirements to obtain a permit prior to commencing operations adhering to certain construction requirements, to establish financial assurance and to require reporting and disclosure of the chemicals used in those operations. If enacted, these changes could require permit acquisition prior to completions, redesign of job plans and equipment, and extended timelines to obtain or modify authorizations. This legislation has not been enacted.

Several federal agencies have asserted regulatory authority over certain aspects of the process. For example, the U.S. Environmental Protection Agency (the "EPA") has published an effluent limit guideline final rule prohibiting the discharge of wastewater from onshore unconventional oil and gas extraction facilities to publicly owned wastewater treatment plants. In addition, the BLM finalized two rules in April and May 2024, increasing royalty rates, rentals and minimum bids, and updating the agency's interpretation of its mandate that conservation is a use of federal land on par with mineral extraction and other uses ("Public Lands Rule"). In September 2025, the Department of the Interior announced its proposal to rescind the Public Lands Rule. Further, in May 2025, the BLM announced a policy designed to expedite the oil and gas leasing process on public lands. In July 2025, the One Big Beautiful Bill Act ("OBBB Act") was signed into law, which included provisions directing expanded and expedited oil and gas leasing, removing restrictions on leasing and decreasing the royalty rate. Also, from time to time, legislation has been introduced, but not enacted, in Congress to provide for federal regulation of hydraulic fracturing and to require disclosure of the chemicals used in the hydraulic fracturing process. Agency actions and legislative initiatives can be subject to judicial challenges, stays or reversals, creating uncertainty around timing and compliance obligations for operators planning completions.

Moreover, some states, including Texas, have adopted, and other states are considering adopting, regulations that restrict or could restrict hydraulic fracturing in certain circumstances and that require the disclosure of the chemicals used in hydraulic fracturing operations. Further, state and local governmental entities have exercised the regulatory powers to regulate, curtail or in some cases prohibit hydraulic fracturing. In addition to state laws, local land use restrictions, such as city ordinances, may restrict drilling in general and/or hydraulic fracturing in particular. Some jurisdictions have pursued set-back requirements, traffic and noise limitations, or ballot initiatives that effectively limit or preclude completions in proximity to populated or environmentally sensitive areas, which could reduce the number of economic locations near our acreage. Expanded disclosure mandates or registry reporting may also increase compliance costs and raise trade-secret and supply-chain considerations for our customers and their service providers.

Increased regulation and attention given to the hydraulic fracturing process, including the disposal of produced water gathered from drilling and production activities, could lead to greater opposition to, and litigation concerning, oil, natural gas and NGLs production activities using hydraulic fracturing techniques in areas where we own surface acreage and/or mineral and royalty interests. Permitting challenges under environmental review statutes and private litigation seeking injunctive relief can delay or disrupt drilling and completion schedules, which may defer or reduce surface-use payments to us. Additional legislation or regulation could also lead to operational delays or increased operating costs for our customers in the production of oil, natural gas and NGLs, including from the development of

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shale plays, or could make it more difficult for such customers to perform hydraulic fracturing. The adoption of any federal, state or local laws or the implementation of regulations regarding hydraulic fracturing could potentially cause a decrease in certain of our customers' completion of new oil and natural gas wells on our properties and an associated decrease in the production attributable to our interests, which could have a material adverse effect on our business, financial condition and results of operations. In addition, tighter constraints on hydraulic fracturing or related water management could reduce demand for our water sales, ROWs and other surface services even where drilling continues.

***Legislation or regulatory initiatives intended to address seismic activity, over-pressurization or subsidence could restrict drilling, completion and production activities, as well as our operating partners' ability to handle produced water gathered from its customers, which could have a material adverse effect on our results of operations, cash flows and financial position.***

Our operating partners handle produced water in connection with customers' drilling and production operations pursuant to permits issued by governmental authorities overseeing such produced water handling activities. While these permits are issued pursuant to existing laws and regulations, these legal and regulatory requirements are subject to change, which could result in the imposition of more stringent permitting or operating constraints or new monitoring and reporting requirements, owing to, among other things, concerns of the public or governmental authorities regarding such produced water handling activities. For example, there exists a growing concern that the injection of produced water into certain produced water handling facilities triggers seismic activity in certain areas, including New Mexico and Texas, where our surface acreage is located. This has led to the creation of operator-led response plans in certain areas in New Mexico or Texas by the NMOCD and the TRRC, respectively, which can include the TRRC suspending or declining to issue produced water handling permits, restrictions on the amount of material that can be handled or requiring producers to cease disposal in certain produced water handling facilities and in areas within the vicinity of seismic events. Regulators may also require enhanced seismic monitoring, pressure management plans, maximum allowable surface pressures, volumetric caps, step-rate testing, or temporary shut-ins for produced water handling facilities in affected areas. Because we do not operate these facilities, our ability to ensure compliance or to mitigate resulting curtailments is limited, notwithstanding contractual rights and indemnities.

State and federal regulatory agencies are continuing to study the possible linkage between oil and natural gas activity and induced seismicity. The U.S. Geological Survey has identified Texas and New Mexico as two of six states with the most significant hazards from induced seismicity. In addition, a number of lawsuits have been filed in some states alleging that produced water handling operations have caused seismic events, caused damage to neighboring properties or otherwise violated state and federal regulations related to waste disposal. Adverse outcomes in such proceedings, or expanded enforcement, could result in injunctions, monetary penalties, mandatory facility modifications or shutdowns, and increased insurance and compliance costs. In response to these concerns, regulators in some states have imposed, or are considering imposing, additional requirements, including requirements regarding produced water handling permits, to assess the relationship between seismicity and the use of such produced water handling facilities. For example, the TRRC previously published a rule governing permitting or re-permitting of produced water handling facilities that would require, among other things, the submission of information on seismic events occurring within a specified radius of the produced water handling facility location, as well as logs, geologic cross sections and structure maps relating to the water handling area in question. On certain occasions, state regulatory agencies have suspended produced water handling facilities within the boundaries of certain SRAs. Although our acreage is not currently included in any SRA, there can be no assurance that all or a portion of our acreage will not be included in an SRA in the future. Separately, in November 2021, the NMOCD implemented protocols requiring producers to take various actions within a specified proximity of certain seismic activity, including a requirement to limit injection rates if a

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seismic event of a certain magnitude occurs within a specified radius of a produced water handling facility. Further, on July 11, 2024, the NMOCD announced the administrative cancellation of 75 pending permit applications for UIC Class II wells within the 10-mile County Line SRA, due to the potential for increased seismicity within the area. Constraints of this nature can accelerate shifts toward recycling and re-routing of produced water, potentially increasing costs for customers and reducing throughput or activity on or near our acreage. The adoption and implementation of any new laws or regulations that restrict our customers' ability to handle produced water gathered from E&P companies, by limiting volumes, fees, produced water handling facility locations or otherwise, or requiring us to shut down produced water handling facilities, could limit existing operations and future development activity in affected areas by our customers, including Hydrosource, and reduce their demand for the use of our land, resources and water management solutions, which could have a material adverse effect on our results of operations, cash flows and financial position.

Additionally, studies have linked hydraulic fracturing related activities with subsidence and expansion. Both the injection of produced water into produced water facilities and the extraction of water, oil, natural gas or mineral resources from the ground can result in surface subsidence and uplifts caused by changes underground (such as, but not limited to, loss of volume and pressure depletion). Such changes underground have been linked to various geological and environmental hazards, such as alteration of local ecosystems and impacts upon local communities, including a potential increase in seismic activity and the formation of sinkholes. In response, agencies or local authorities may require geotechnical studies, elevation and microseismic monitoring, corrective action plans, bonding or mitigation, or impose site-specific restrictions on injection or extraction activities. Any new laws or regulations that may be adopted and implemented with respect to addressing subsidence and expansion risks may lead to restrictions upon our operations, which could have a material and adverse effect on our results of operations, cash flows and financial position. Even where continued operations are permitted, compliance obligations could delay projects, increase costs or reduce available pore space and ROWs, which may shift volumes and activity off our land.

***Restrictions on the ability of our customers to obtain water may have an adverse effect on our financial condition, results of operations and cash flows.***

Water is an essential component of oil, natural gas and NGLs production during both the drilling and hydraulic fracturing processes. Under many of our SUAs, customers are required to purchase from us or our operating partners the water used in their operations. We source water to fulfill our customers' needs through a variety of rights and agreements, including the Recycled Water Supply Agreement and the Hydrosource Recycling Agreement. Additionally, our commercial water wells in New Mexico, water infrastructure in Texas and off-ranch water from third-party sources allow us to produce and sell in excess of 200 MMBbls of water per year. On certain areas of our ranches, our customers' demand for water has exceeded our annual capacity over the last several years.

There can be no guarantee that we will have access to sufficient amounts of water to meet our customers' needs. If our customers are unable to obtain water to use in their operations from local sources, or if our operators are unable to effectively utilize flowback water, they may be unable to economically drill for, or produce, oil, natural gas and NGLs from our properties, which could have an adverse effect on our financial condition, results of operations and cash flows.

Over the past several years, portions of Texas and New Mexico have experienced drought conditions. As a result of the droughts, some local water districts have begun restricting the use of water subject to their jurisdiction for hydraulic fracturing to protect local water supply. Such conditions may be exacerbated by climate change. Because we generate fee revenue by providing water to our customers, restrictions on the use of water for hydraulic fracturing or other oil and gas operations could have an adverse effect on our financial condition, results of operation and cash flows.

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***Our reliance on revenue generated from water sales and produced water handling operations exposes us to potential financial and regulatory risks.***

There are unique risks associated with handling produced water, and the legal requirements related to handling produced water into a non-producing geologic formation by means of produced water handling facilities are subject to change based on concerns of the public or governmental authorities. In particular, evolving seismic-response measures, pore-space access constraints, and pressure-management directives can limit injection options or require significant operational modifications, even for facilities that previously operated in compliance with permits. There remains substantial uncertainty regarding the handling of produced water by means of produced water handling facilities, the regulation of which could have a material and adverse effect on us, our operating partners or our customers in a manner that cannot be predicted due to such uncertainty. Moreover, not all of our commercial arrangements include minimum-volume commitments or they may be subject to caps or carve-outs, which limits protection against volume and timing risk if customers curtail or re-route water flows. These include liabilities related to the handling, treatment, storage, disposal, transport, release and use of radioactive materials, which could be in produced water, and uncertainties regarding the ultimate, and potential exposure to, technical and financial risks associated with modifying or decommissioning produced water handling facilities. Produced water and related residuals may contain naturally occurring radioactive material and technologically enhanced NORM hydrogen sulfide, or other constituents subject to evolving standards, and any reclassification of certain wastes or tightening of exposure limits could increase compliance and disposal costs and restrict available outlets. Federal or state regulatory agencies could require the shutdown of produced water handling facilities for safety reasons or refuse to permit the restart of any facility after unplanned or planned outages. Agencies may also mandate enhanced monitoring, bonding or financial assurance, corrective action plans, and expanded reporting, which can increase operating costs and extend restart timelines. New or amended safety and regulatory requirements may give rise to additional operational and maintenance costs and capital expenditures. In addition, increased third-party challenges to permits, seismic-event investigations, and citizen suits can delay approvals, impose interim operating limits, or result in permit revocations or narrowed authorizations. Additionally, aging equipment or facilities may require increased capital expenditures to keep produced water infrastructure operating efficiently or in compliance with applicable laws and regulations. Such equipment is also likely to require periodic upgrading and improvement to maintain compliance. Supply-chain constraints, long-lead times for critical components (including pumps, automation, and electrical gear), and grid-power availability can further delay repairs, expansions or recommissioning and increase costs. Although the safety record of produced water handling generally has been very good, accidents and other unforeseen problems have occurred and may occur in the future. Spills, releases or pipeline failures could trigger remediation obligations, third-party claims, regulatory enforcement, and interruption of service, and available insurance may be subject to exclusions, sublimits, higher retentions, or limited availability in affected markets. The consequences of any major incident could be severe and may result in loss of life or property damage. Further, cybersecurity incidents or operational technology failures affecting our operating partners' systems could disrupt produced-water gathering, treatment and disposal activities, delay billing and settlement processes, and increase compliance and remediation costs. Any of these developments, or sustained reductions in handled volumes due to recycling, beneficial reuse or regulatory constraints, could materially and adversely affect our results of operations, cash flows and financial position.

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***A series of risks arising out of the threat of climate change could result in increased operating costs for our customers, limit the areas in which oil, natural gas and NGLs production may occur, and reduce demand for traditional energy sources and the services related to the production and transport thereof, which could have a material adverse effect on their business, which in turn could have a material adverse effect on our business.***

The operations of our customers and their service providers and end-line customers are subject to a series of regulatory, political, litigation and financial risks associated with the threat of climate change, including the production, processing, transportation, gathering and handling of traditional energy sources and the emission of greenhouse gases ("GHGs"). We do not operate our customers' assets and have limited ability to influence their compliance or mitigation strategies.

At the federal level, no comprehensive climate change law or regulation has been implemented to date, though the Inflation Reduction Act of 2022 ("IRA 2022") advances numerous climate related objectives, including funding and incentives for research and development of low-carbon energy production methods, carbon capture and other programs directed at addressing climate change. The IRA 2022 includes a methane emissions reduction program for petroleum and natural gas sources through a methane emissions fee. In November 2024, the EPA promulgated a rule implementing the methane emissions fee, although in February 2025, Congress voted to eliminate the rule under the Congressional Review Act. Additionally, in the OBBB Act, Congress delayed the implementation of the methane emission charge until 2034. We cannot predict if the Trump Administration and/or Congress may take further action to repeal or revise this requirement of the IRA 2022; however, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas projects and increase our customers' costs of development, which could be significant. Related legislative and agency actions are subject to change and legal challenge, creating planning uncertainty and potential delays for projects on or around our land.

In addition, the EPA has adopted new rules under the federal Clean Air Act (the "CAA"). In December 2023, the EPA issued a final rule that established Subpart OOOOb implementing more stringent rules for GHG (in the form of a limitation on emissions of methane) and volatile organic compound ("VOC") emissions for new, modified and reconstructed facilities in the crude oil and natural gas source category and Subpart OOOOc as first-time existing source standards of performance for methane and VOC emissions for the oil and natural gas source category. However, in March 2025, the EPA announced plans to reconsider Subparts OOOOb and OOOOc, in line with the Trump Administration's deregulatory agenda. In July 2025, the EPA extended the compliance deadlines for certain provisions provided in Subparts OOOOb and OOOOc. Litigation challenging EPA's interim final rule extending such compliance deadlines for new and existing oil and gas sources remains pending. Even where certain deadlines have been extended, operators may still incur material monitoring, repair and equipment costs and face enforcement exposure.

Various states and groups of states have adopted or are considering adopting legislation, regulations or other regulatory initiatives that are focused on such areas as GHG cap and trade programs, carbon taxes, reporting and tracking programs and restriction of GHG emissions. Certain measures may also tighten air permitting or flaring limits, affecting completion timing and costs. Although it is not possible at this time to predict how new laws or regulations that may be adopted or issued to address GHG emissions would impact our business or our customers' operations, any such future laws, regulations or legal requirements imposing reporting or permitting obligations on, or limiting emissions of GHGs from, our or our customers' equipment and operations could require us or our customers to incur costs to reduce emissions of GHGs associated with operations, as well as delay or restrict the ability to permit GHG emissions from new or modified sources. In addition, substantial limitations on GHG emissions could adversely affect the demand for natural gas, oil and NGLs, which may also adversely affect our operations and financial results. Prolonged drought or flooding can

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constrain water sourcing, damage roads and ROWs and delay surface-use activities that generate our fees and royalties.

Furthermore, we and our customers have been and could be impacted in the future by the effects of weather volatility. Climate variability predictions have forecasted increases in the frequency and duration of droughts, extreme temperature variability, decreases in water supply and changes in water usage patterns, increases in the frequency and severity of extreme weather events (including storms, wildfires and other natural disasters) and the costs to reduce risks associated therewith and changes in meteorological and hydrological patterns, all of which could adversely impact our and our customers operations and involve various risks of physical damage. For example, in the winter of 2022, many oil and gas operators were impacted by abnormal winter conditions that temporarily adversely affected production. In addition, weather-related forced stoppages at processing, storage and pipeline facilities operated by our customers or counterparties with which our customers contract for services may also adversely affect our operations and financial results.

***Increased attention to sustainability-related matters and conservation measures may impact our business or the business of our operators.***

Increased attention to climate change, conflicting societal expectations on companies to address climate change and other environmental and social impacts, investor and societal expectations regarding voluntary sustainability disclosures and consumer demand for alternative forms of energy may result in increased costs, reduced demand for our and our customers' products and services, reduced profits, increased investigations and litigation and negative impacts on our or our customers' suppliers and customers, which may ultimately have adverse impacts on our or our customers' business, such as our and our customers' access to the capital markets as well as the value of our Class A shares. Increased attention to climate change and environmental conservation, for example, may result in demand shifts from oil and natural gas products and services to alternative forms of energy outside the scope of our customers' businesses. To the extent that societal pressures or political or other factors are involved, it is possible that such liability could be imposed without regard to our and our customers' causation of, or contribution to, the asserted damage, or to other mitigating factors.

Some organizations that provide information to investors on corporate governance and related matters have developed rating and proxy voting recommendation processes for evaluating companies on their approach to sustainability concerns. Such ratings and proxy advisory services are used by some investors to inform their investment and voting decisions. While such ratings do not impact all investors' investment or voting decisions, unfavorable ratings and any activism directed at shifting funding away from companies with traditional energy-related assets could lead to increased negative investor sentiment toward us, our customers and our industry as a whole and to the diversion of investment to other industries, which could have a negative impact on our access to, and costs of, capital. Several states either proposed or passed new laws requiring additional disclosure from proxy advisory firms concerning factors influencing their proxy advisory services, especially when those factors extend beyond traditional financial or pecuniary analyses (such as sustainability matters). These new or proposed laws face legal challenges, including Texas SB 2337 providing public companies headquartered or domiciled (or considering redomiciling) in Texas with such additional protections, but enforcement of which by the Texas Attorney General has been enjoined by the U.S. District Court for the Western District of Texas pending trial. Further, institutional lenders may, of their own accord, decide not to provide funding for traditional energy companies based on climate change related concerns, which could affect our or our customers' access to capital for operations. Additionally, insurers may decide to raise rates and/or cease insuring us or our customers based on climate change-related concerns.

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Additionally, certain public statements with respect to sustainability matters, such as emissions reduction goals, other environmental targets, or other commitments addressing certain social issues, are becoming increasingly subject to heightened scrutiny from public and governmental authorities, as well as other parties, related to the risk of potential "greenwashing," in other words, misleading information or false claims overstating potential benefits. Any alleged claims of greenwashing against us or others in our industry may lead to further negative sentiment and diversion of investments.

Certain employment practices and social initiatives are the subject of scrutiny by both those advocating for the continued advancement of such policies, as well as those who believe they should be curbed, including government actors, and the complex regulatory and legal frameworks applicable to such initiatives continue to evolve. We cannot be certain of the impact of such regulatory, legal and other developments on our business. More recent political developments could mean that we face increasing criticism or litigation risks from certain anti-sustainability parties, including various governmental agencies. Consideration of sustainability-related factors in our decision-making could be subject to increasing scrutiny and objection from such anti-sustainability parties. As a result, we may face increased litigation risk from private parties and governmental authorities related to our sustainability-related efforts.

***The results of operations of our customers, as well as producers on or around our land, may be materially impacted by efforts to transition to a lower-carbon economy, which could have a material adverse effect on our business, results of operation, cash flows and financial position.***

Concerns over the risk of climate change have increased the focus by global, regional, national, state and local regulators on GHG emissions, including carbon dioxide emissions, and on transitioning to a lower-carbon future. A number of countries and states have adopted, or are considering the adoption of, regulatory frameworks to reduce GHG emissions. These regulatory measures may include, among others, adoption of cap-and-trade regimes, carbon taxes, increased energy efficiency standards, prohibitions or reductions on the sales of new automobiles with internal combustion engines, and tax credits, incentives or mandates for battery-powered automobiles and/or wind, solar or other forms of alternative energy. These include laws such as the IRA, which appropriates significant federal funding for renewable energy initiatives and amends the federal CAA to impose a first-time fee on the emission of excess methane from sources required to report their GHG emissions to the EPA. In May 2024, the EPA issued a final rule to implement the IRA's 2022 methane fee, however, on March 14, 2025, a joint Congressional resolution disapproved the EPA's 2024 rule, and the rule is no longer in effect. While the future implementation or repeal of all or a portion of the IRA is uncertain at this time, it is possible that additional changes in the future could impact our results of operation and those of our customers. Compliance with changes in laws, regulations and obligations relating to climate change could result in increased costs of compliance for our customers on or around our land or costs of consuming oil and natural gas for such products, and thereby reduce demand for the use of our land and resources, which could reduce our profitability. Changes in laws and regulations may also result in delays or increased costs associated with obtaining permits needed for oil and natural gas operations. Additionally, our customers on or around our land could incur reputational risk tied to changing customer or community perceptions of our customers' or their customers' contribution to, or detraction from, the transition to a lower-carbon economy. These changing perceptions could lower demand for oil and natural gas products, resulting in lower prices and lower revenues as consumers avoid carbon-intensive industries, and could also pressure banks and investment managers to shift investments and reduce lending.

Separately, banks and other financial institutions, including investors, may decide to adopt policies that restrict or prohibit investment in, or otherwise funding, us or our customers on or around our land based on climate change-related concerns, which could affect our and our customers on or around our land's access to and cost of capital for potential growth projects. This trend is, however,

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generally declining. Additionally, insurers may decide to raise rates and/or cease insuring us or our customers on or around our land based on climate change-related concerns.

Approaches to climate change and transition to a lower-carbon economy, including government regulation, company policies and consumer behavior, are continuously evolving. For example, in October 2023, the State of California adopted several laws that require disclosure on various climate risks, targets, and metrics; however, both laws are currently subject to litigation. Any such disclosure or other climate-related requirements like these laws or similar that we may become subject to could require us or our customers to incur significant costs and additional attention from management, including for the establishment of additional controls, given the relatively novel nature of such reporting. At this time, we cannot predict how such approaches may develop or otherwise reasonably or reliably estimate their impact on us or our customers' financial condition, results of operations and ability to compete. However, any long-term material adverse effect on the oil and natural gas industry may affect our results of operations, cash flows and financial position.

***Our business and financial results could be disrupted by natural or human causes beyond our control.***

Our business and financial results could be disrupted by natural or human causes beyond our control. Our revenues depend on natural and environmental conditions affecting operations that result in royalties and utilize our water services, many of which occur on or around our acreage in the Permian Basin. As a result, our business is subject to disruption from natural or human causes beyond our control, including severe storms, flooding, tornadoes, drought and aquifer declines, wildfires, earthquakes (including induced seismicity), system failures and power outages, pipeline disruptions, environmental incidents such as oil and produced-water spills, accidents, terrorism or sabotage, civil unrest, political events, war and epidemics or pandemics. Any of these events could cause material adverse effects on oil and natural gas production and associated infrastructure on or adjacent to our land, which in turn could negatively impact our results of operations, cash flows and financial position. Our geographic concentration in the Permian Basin heightens exposure to regional weather, natural disaster and infrastructure constraints relative to diversified operators.

Physical and regulatory responses to induced seismicity in Texas and New Mexico can disrupt produced-water handling and curtail activity on or near our acreage, including through SRA measures such as suspensions, volumetric limits and rate restrictions for injection. In July 2024, the NMOCD administratively canceled 75 pending UIC Class II permit applications within the 10-mile County Line SRA due to seismicity concerns, and the TRRC has pursued initiatives since 2021 to reduce injection volumes and suspend certain deep injection within SRAs. Although our acreage is not currently within an SRA, there is no assurance this will remain the case, and similar or expanded actions could constrain injection alternatives near our land, increase competition for pore space, and shift volumes away from locations that generate royalties for us. In addition, our customers' ability to conduct activity that generates our revenues depends on access to adequate water supply and pore space and on timely permits for water sourcing, produced-water handling, air emissions and surface-disturbing construction. Prolonged drought, overuse of aquifers, habitat protections and local water-district restrictions can limit availability or increase costs, and heightened regulatory scrutiny can delay, limit or revoke permits, all of which can disrupt operations and payments to us.

Broader operational, supply-chain and power-system disruptions affecting our customers and operating partners can reduce activity levels on or near our land and delay projects that generate surface-use fees, water sales and produced-water royalties. Our indirect exposure to construction, operational and environmental hazards, including fires, explosions, blowouts, seismic events, pipeline failures and spills or releases, as well as cybersecurity risks to energy infrastructure and third-party systems, can cause interruptions, remediation obligations, investigations, penalties, third-party claims

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and increased insurance and compliance costs; insurance may have deductibles, exclusions and sublimits, may not cover all interruptions, and proceeds may be delayed or insufficient. Evolving climate-related physical risks, including increased frequency and severity of storms, droughts, wildfires, flooding and extreme temperature variability, and associated resilience costs may constrain water sourcing, damage infrastructure and increase downtime at midstream and power assets utilized by our customers, reducing the activity levels that drive our revenues.

***Current and future restrictions on our customers' operations intended to protect certain species of wildlife may adversely affect their ability to expand certain existing operations and/or limit their ability to use our land, including the limitation of drilling activities, development of infrastructure and disposal operations.***

In the United States, the Endangered Species Act (the "ESA") and comparable state laws were established to protect endangered and threatened species. Pursuant to the ESA, if a species is listed as threatened or endangered, restrictions may be imposed on activities adversely affecting that species' habitat. Similar protections are offered to migratory birds under the Migratory Bird Treaty Act (the "MBTA"). These measures may include seasonal timing restrictions, buffer zones, survey and monitoring obligations, and participation in Habitat Conservation Plans or Candidate Conservation Agreements with Assurances. To the extent species that are listed or protected under the ESA or the MBTA, respectively, or similar state laws live in the areas where we own surface acreage and/or mineral and royalty interests and our customers operate, our customers' abilities to conduct or expand operations could be limited, or our customers could be forced to incur material additional costs. Because we do not control our customers' operations, our ability to influence their compliance approach or mitigation strategy is limited. For example, in May 2024, the U.S. Fish and Wildlife Service ("FWS") issued a final rule listing the dunes sagebrush lizard as endangered under the ESA, although that listing decision has been challenged. In November 2022, the FWS formally listed two distinct population segments of the lesser prairie-chicken under the ESA, but in March 2025, the U.S. District Court for the Western District of Texas vacated the rule for the northern district population segment. In April 2024, the FWS and the National Marine Fisheries Service ("NMFS") finalized three rules that revise regulations for classifying species and designating critical habitat, interagency cooperation and protecting endangered and threatened species. In April 2025, the FWS and the NMFS proposed a rule to rescind the regulatory definition of "harm" to species under the ESA, which includes habitat modification. In addition, in April 2025, the U.S. Department of the Interior reinstated a 2017 legal opinion that determined that the MBTA's prohibitions on pursuing, hunting, taking, capturing and killing migratory birds do not apply to accidental or incidental taking or killing of migratory birds. Agency policies and judicial decisions in these areas have shifted over time, and certain states maintain their own incidental-take prohibitions, creating additional uncertainty and potential compliance obligations.

The identification or designation of previously unprotected species, or the redesignation of a species from threatened to endangered, in areas on or around our land and/or mineral and royalty interests could cause our customers' operations to become subject to operating restrictions or bans, including restrictions of future development activities in the subject areas, or cause our customers to incur additional costs associated with their operations on our surface acreage or with respect to our mineral and royalty interests, which could have a material adverse effect on our results of operations, cash flows and financial position. Critical habitat designations and federal "consultation" requirements where a federal nexus exists can further delay permits and require compensatory mitigation (including conservation banking or off-site habitat projects), which may limit activity on or near our acreage.

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**Risks Related to Our Financial Condition** 

***We may be unable to generate sufficient cash to service all of our indebtedness and financial commitments and any future indebtedness could adversely affect our financial condition.***

As of December 31, 2025, on an actual basis, we had $265.6 million of total debt outstanding, exclusive of $35.1 million of unamortized debt premium (discount) and issuance costs, net, and on a pro forma, as adjusted basis, we had $ million of total debt outstanding, exclusive of $ million of unamortized debt premium (discount) and issuance costs, net. Our ability to make scheduled payments on, or to refinance, our indebtedness and financial commitments depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions, including financial, business and other factors beyond our control, and may vary significantly from year to year. As a result, the amount of debt that we can manage in some periods may not be appropriate for us in other periods and we may be unable to generate sufficient cash flow to permit us to pay the principal, premium, if any, and interest on our indebtedness. Any insufficiency may impact our business.

If our cash flows and capital resources are insufficient to fund debt and other obligations, we may be forced to reduce or delay capital expenditures, sell assets, seek to raise additional capital or refinance or restructure our indebtedness. Our ability to restructure or refinance indebtedness will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of indebtedness could be on unfavorable terms, including at higher interest rates, and may require us to comply with more restrictive covenants. The terms of our existing or future debt instruments may restrict us from adopting some of these alternatives. We cannot assure you that any refinancing or restructuring would be possible, that any assets, including land, could be sold or that, if sold, the timing of the sales and the amount of proceeds realized from those sales would be favorable to us or that additional financing could be obtained on favorable terms, if at all. In addition, any failure to service our debt, including paying interest or principal on a timely basis, would likely result in a reduction of our credit rating, if any, which could harm our ability to incur additional indebtedness. In addition, if we fail to comply with the covenants or other terms of any agreements governing our debt, our lenders will have the right to accelerate the maturity of that debt and foreclose upon the collateral, if any, securing that debt.

Our indebtedness could have important consequences for you and significant effects on our business, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing our vulnerability to adverse changes in general economic, industry and competitive conditions and limiting our
ability to address such changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requiring us to dedicate a substantial portion of our cash flow from operations to make payments on our indebtedness,
thereby reducing the availability of our cash flow to fund general company and other purposes, including capital expenditures and dividend payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restricting us from exploiting business opportunities and making strategic land acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making it more difficult to satisfy our financial obligations, including payments on our indebtedness, and contractual and
commercial commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disadvantaging us when compared to our competitors that have less debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complying with covenants contained in the documents governing such indebtedness may require us to meet or maintain certain
financial tests, which may affect our flexibility in planning for, and reacting to, changes in our industry, such as being able to take advantage of acquisition opportunities when they arise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing our borrowing costs or otherwise limiting our ability to borrow additional funds for the execution of our
business strategy.

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Finally, the agreements governing our outstanding indebtedness limit our ability to incur additional debt, but such agreements do not prohibit us from doing so. As a result, we could incur more indebtedness in the future, which would exacerbate the foregoing risks.

***We are subject to interest rate risk, which may cause our debt service obligations to increase significantly.***

If interest rates increase, our debt service obligations on the variable rate indebtedness would increase even if the amount borrowed remained the same, and we would be required to devote more of our cash flow to servicing our indebtedness.

In March 2022, the Federal Reserve began, and continued through 2023, to raise interest rates in an effort to curb inflation. Although the Federal Reserve reduced benchmark interest rates three times in 2025, to the extent such rates remain elevated, we may continue to experience further financing cost increases if interest rates on borrowings, credit facilities and debt offerings increase compared to previous levels. Changes in interest rates, either positive or negative, may also affect the yield requirements of investors who invest in our Class A shares, and the elevated interest rate environment could have an adverse impact on the price of our Class A shares or our ability to issue equity or incur debt for acquisitions or other purposes.

***We anticipate entering into a new credit facility following this offering that we expect will be secured by substantially all of our assets. If we fail to comply with the restrictions and covenants in such credit facility or our future debt agreements, there could be an event of default under the terms of such agreements, which could result in an acceleration of payment and the potential loss of those assets.***

We anticipate that we will use a portion of the net proceeds from this offering to repay in full, and terminate, the Predecessor Credit Facility. Following the completion of this offering, we anticipate that OpCo and certain of our other subsidiaries will enter into a new senior secured revolving credit facility (the "Credit Facility") providing up to $200.0 million in revolving credit commitments, which will be administered by JPMorgan Chase Bank, N.A. Our obligations under the Credit Facility will be secured by a first-priority lien on substantially all of the assets of OpCo and the Guarantors (as defined therein), including equity interests in our subsidiaries, subject to customary exceptions and exclusions, and will be guaranteed by all material existing and future direct and indirect wholly owned domestic subsidiaries of OpCo. As a result, substantially all of our acreage, which as of December 31, 2025 consisted of approximately 236,000 surface acres across Texas and New Mexico, and our other assets, including our interests in our water infrastructure and other property, will be encumbered by first-priority mortgages (deeds of trust) and related security interests to secure the Credit Facility.

The Credit Facility will contain certain customary affirmative and negative covenants, which, among other things, will restrict our ability and our restricted subsidiaries' ability, subject to certain exceptions, to incur debt, grant liens, make restricted payments and investments, issue equity, sell or lease assets, dissolve or merge with another entity, enter into transactions with affiliates or restrictive agreements, change our business, prepay debt and amend our organizational and material agreements. In addition, we will be required to comply with certain financial maintenance covenants, including a maximum net total leverage ratio of no greater than 3.50x and a minimum interest coverage ratio of at least 2.75x. The Credit Facility will also contain customary events of default, including for our failure and the failure of other loan parties to comply with the various financial, negative and affirmative covenants under the Credit Facility, subject to the cure provisions set forth therein.

A breach of compliance with any restriction or covenant in our Credit Facility or any of our future debt agreements could result in a default under the terms of the applicable agreement, and our ability

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to comply with such restrictions and covenants may be affected by events beyond our control, including prevailing economic and competitive conditions, changes in commodity prices, changes in law and regulation, and other factors affecting the energy sector. As a result, we cannot assure you that we will be able to comply with these restrictions and covenants. A default could result in acceleration of the indebtedness and a declaration of all amounts borrowed due and payable, which could have an adverse effect on us and negatively impact our ability to borrow. Because our Credit Facility will be secured by substantially all of our and our subsidiaries' assets, in the event of an event of default, the administrative agent may, with the consent of or at the direction of the required lenders, terminate the commitments and declare all outstanding loans and accrued interest and fees under our Credit Facility to be immediately due and payable. In addition, the administrative agent may enforce its security interests over our and our subsidiaries' assets that secure the obligations under our Credit Facility, take control of our assets and business, force us to seek bankruptcy protection, or force us to curtail or abandon our current business plans. The loss of our assets, which constitute substantially all of our property, including the surface acreage and water infrastructure that generate our revenues, would have a material adverse effect on our business, results of operations, cash flows and financial position and could result in the loss of all, or a part of, your investment in our Class A shares.

If an acceleration occurs, we may be unable to make all of the required payments and may be unable to find alternative financing. Even if alternative financing were available at that time, it may not be on terms that are favorable or acceptable to us, including as a result of higher interest rates or more restrictive covenants. Additionally, we may not be able to amend our Credit Facility or such future agreements governing our indebtedness or obtain necessary waivers on satisfactory terms. Our ability to restructure or refinance our indebtedness will depend on the condition of the capital markets and our financial condition at such time, and any refinancing of our indebtedness could be on unfavorable terms.

***Our obligations under our Credit Facility will be secured by a first priority security interest in substantially all of our assets.***

We expect that amounts borrowed pursuant to the terms of our Credit Facility will be secured by substantially all of our and our subsidiaries' present and after-acquired assets. Additionally, we expect that our obligations under our Credit Facility will be jointly and severally guaranteed by us and our material subsidiaries.

As a result of the above, in the event of the occurrence of a default under our Credit Facility, the administrative agent may enforce its security interests (for the ratable benefit of the lenders under our Credit Facility and the other secured parties) over our and/or our subsidiaries' assets that secure the obligations under our Credit Facility, take control of our assets and business, force us to seek bankruptcy protection, or force us to curtail or abandon our current business plans. If that were to happen, you may lose all, or a part of, your investment in our Class A shares.

***Changes to applicable tax laws and regulations, exposure to additional income tax liabilities, changes in our effective tax rates or an assessment of taxes resulting from an examination of our income or other tax returns could adversely affect our results of operations, cash flows and financial position, including our ability to repay our debt.***

We are subject to various complex and evolving U.S. federal, state and local taxes. U.S. federal, state and local tax laws, policies, statutes, rules, regulations or ordinances could be interpreted, changed, modified or applied adversely to us, in each case, possibly with retroactive effect, and may have an adverse effect on our results of operations, cash flows and financial position, including our ability to repay our debt. The passage of tax legislation or other similar changes in U.S. federal income tax laws could adversely affect our results of operations, cash flows and financial position.

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Changes in our effective tax rates or tax liabilities could also adversely affect our results of operations, cash flows and financial position. Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the valuation of our deferred tax assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expected timing and amount of the release of any tax valuation allowances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expansion into future activities in new jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of tax deductions, credits, exemptions, refunds and other benefits to reduce tax liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax effects of share-based compensation.

In addition, an adverse outcome arising from an examination of our income or other tax returns could result in higher tax exposure, penalties, interest or other liabilities that could have an adverse effect on our results of operations, cash flows and financial position.

***We are subject to counterparty credit risk. Nonpayment or nonperformance by our customers could have an adverse effect on our results of operations, cash flows and financial position.***

We are subject to the risk of loss resulting from nonpayment or nonperformance by our customers of their respective obligations. Although we maintain policies and procedures to limit such risks, our credit procedures and policies may not be adequate to fully eliminate customer credit risk. If we fail to adequately assess the creditworthiness of existing or future customers or unanticipated deterioration in their creditworthiness, any resulting increase in nonpayment or nonperformance by them of their respective obligations and our inability to collect on outstanding receivables or find substitute customers could have an adverse effect on our results of operations, cash flows and financial position. A decline in oil and natural gas prices could negatively impact the financial condition of our customers and sustained lower prices could impact their ability to meet their obligations to us. Further, our contract counterparties may not perform or adhere to our existing or future contractual arrangements. To the extent one or more of our contract counterparties is in financial distress or commences bankruptcy proceedings, contracts with these counterparties may be subject to renegotiation or rejection under applicable provisions of the Bankruptcy Code. Any material nonpayment or nonperformance by our contract counterparties due to inability or unwillingness to perform or adhere to contractual arrangements could adversely affect our results of operations, cash flows and financial position.

***We have a history of, and plan for, significant financing transactions; our capital structure includes significant indebtedness the terms of which may constrain us, and we intend to use offering proceeds to repay indebtedness.***

We have incurred and amended material debt facilities to fund acquisitions and operations, including a $72.0 million term loan and a revolving credit facility and a subsequent $204.0 million term financing tied to the Accelerated Acquisition; indebtedness and related covenants may limit flexibility and increase refinancing risk. The incurrence of additional indebtedness would result in increased fixed payment obligations and could also result in certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our ability to acquire additional acreage and other operating restrictions that could adversely impact our ability to conduct our business and may result in liens being placed on our assets. If we were to default on such indebtedness, we could lose such assets. The use of initial public offering proceeds to repay the Predecessor Credit Facility reduces cash available for operations and growth and increases our exposure to market conditions at pricing.

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**Risks Related to this Offering, Our Corporate Structure and Our Class A Shares** 

***The requirements of being a public company, including compliance with the reporting requirements of the Exchange Act, and the requirements of the Sarbanes-Oxley Act, may increase our costs and divert management's attention from other business concerns, and we may be unable to comply with these requirements in a timely or cost-effective manner.***

As a public company, we will need to comply with new laws, regulations and requirements, certain corporate governance provisions of the Sarbanes-Oxley Act, related regulations of the SEC and the NYSE and NYSE Texas rules, with which we are not required to comply as a private company. Complying with these statutes, regulations and requirements will occupy a significant amount of time of our board of directors and management and will significantly increase our costs and expenses. We will need to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• institute a more comprehensive compliance function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with rules promulgated by the NYSE and NYSE Texas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prepare and distribute periodic public reports in compliance with our obligations under the federal securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accurately implement and interpret GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• institute and enforce new internal policies, such as those relating to insider trading; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• involve and retain to a greater degree outside counsel and accountants in the above activities.

Upon becoming a reporting issuer, we will be required to comply with the SEC's rules implementing Sections 302 and 404 of the Sarbanes-Oxley Act, which will require management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of internal controls over financial reporting. Although we will be required to disclose changes made in our internal controls and procedures on a quarterly basis, we will not be required to make our first annual assessment of our internal controls over financial reporting pursuant to Section 404 until the year following our first annual report required to be filed with the SEC. Additionally, we are not required to have our independent registered public accounting firm attest to the effectiveness of our internal controls until our first annual report subsequent to our ceasing to be an "emerging growth company" or a "smaller reporting company" under the applicable federal securities laws. Accordingly, we may not be required to have our independent registered public accounting firm attest to the effectiveness of our internal controls until as late as our annual report for the fiscal year ending December 31, 2031, if we are no longer a "smaller reporting company." Once it is required to do so, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our controls are documented, designed, operated or reviewed. Compliance with these requirements will strain our resources, increase our costs and distract management, and we may be unable to comply with these requirements in a timely or cost-effective manner.

In addition, we expect that being a public company subject to these rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our board of directors or as executive officers. We are currently evaluating these rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.

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***Investors in this offering will experience immediate and substantial dilution of $ per Class A share.***

The initial public offering price of $ per Class A share (the mid-point of the price range set forth on the cover page of this prospectus) exceeds our pro forma net tangible book value of $ per Class A share. Based on the assumed initial public offering price of $ per Class A share, shareholders will incur an immediate and substantial dilution of $ per Class A share in the as adjusted net tangible book value per share. This dilution results primarily because our assets are recorded at their historical cost in accordance with GAAP, and not their fair value. Please see "Dilution."

***Future sales of Class A shares, or the perception that such sales may occur, may depress our share price, and any additional capital raised through the sale of equity or convertible securities may dilute your ownership in us.***

We may in the future issue additional securities. The potential issuance of such additional shares may result in the dilution of the ownership interests of the holders of our Class A shares and may create downward pressure on the trading price of our Class A shares.

In addition, we have granted registration rights to all of our Existing Owners and the TCW Entities which cover all of the Class B shares, and an equal number of OpCo Units, that they will own following this offering. Such Existing Owners and TCW Entities may exercise their rights under the registration rights agreement in their sole discretion, subject to certain restrictions, and sales pursuant to such rights may be material in amount and occur at any time. See "Certain Relationships and Related Party Transactions—Registration Rights Agreement." The sales of substantial amounts of our Class A shares (including Class A shares underlying Class B shares held by the Existing Owners or the TCW Entities) or the perception that these sales may occur could cause the market price of our Class A shares to decline and impair our ability to raise capital. We also may grant additional registration rights in connection with any future issuance of our capital stock.

We cannot predict the size of future issuances of our Class A shares or securities convertible into or redeemable, exercisable or exchangeable for Class A shares or the effect, if any, that future issuances and sales of shares of our Class A shares will have on the market price of our Class A shares.

***Our ability to pay dividends to our shareholders may be limited by our holding company structure, contractual restrictions and regulatory requirements.***

After this offering, we will be a holding company and will have no material assets other than our equity interest in OpCo, and we will not have any independent means of generating revenue. To the extent OpCo has available cash we intend to cause OpCo to make (i) generally pro rata distributions to all OpCo Unitholders, including us, in an amount at least sufficient to allow us to pay taxes, (ii) at the election of certain OpCo Unitholders, additional distributions in an amount generally intended to allow such OpCo Unitholders to satisfy their respective income tax liabilities with respect to their allocable share of the income of OpCo (based on certain assumptions and conventions), which additional distributions may be made on a pro rata basis to all OpCo Unitholders (including us) or a non-pro rata basis to OpCo Unitholders (other than us) in redemption of OpCo Units from such holders and (iii) non-pro rata distributions to us in an amount sufficient to cover our public company and other overhead expenses. In addition, as the sole managing member of OpCo, we would expect to cause OpCo to make pro rata distributions to all of its unitholders, including to us, in an amount sufficient to allow us to fund dividends to our shareholders in accordance with our dividend policy, to the extent our board of directors declares any such dividend. OpCo, however, is a distinct legal entity and may be

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subject to legal or contractual restrictions that, under certain circumstances, may limit our ability to obtain cash from it. If OpCo is unable to make distributions, we may not receive adequate distributions, which could materially and adversely affect our results of operations, cash flows, financial position and ability to fund any dividends.

Although we expect to seek to pay dividends on our Class A shares, we are not obligated to do so. We have not adopted a formal written dividend policy nor have we adopted a dividend policy to pay a fixed amount of cash each quarter in respect of each Class A share or to pay an amount based on the achievement of, or amount derivable based on, any specific financial metrics. Any future dividends are within the absolute discretion of our board of directors. Our board of directors has not declared any dividends and may determine not to declare any dividends in the future. Our board of directors will take into account general economic and business conditions, our financial condition and results of operations, our cash flows from operations and current and anticipated cash needs, our capital requirements, legal, tax, regulatory and contractual restrictions, and implications of such other factors as our board of directors may deem relevant in determining whether, and in what amounts, to pay such dividends. In addition, our debt agreements may limit the amount of distributions that OpCo's subsidiaries can make to OpCo and OpCo can make to us and the purposes for which distributions could be made. Please read "Management's Discussion and Analysis of Financial Condition and Results of Operations—Pro Forma Liquidity and Capital Resources—Pro Forma Debt Instruments" for further discussion of our debt agreements. Accordingly, we may not be able to pay dividends even if our board of directors would otherwise deem it appropriate. Please see "Dividend Policy," "Management's Discussion and Analysis of Financial Condition and Results of Operations—Pro Forma Liquidity and Capital Resources" and "Description of Shares."

***Any decision to pay cash dividends in the future will be made in the sole discretion of our board of directors. If we do not pay any cash dividends on our Class A shares following this offering, you may not receive a return on investment unless you sell your Class A shares for a price greater than that which you paid for them.***

Any decision to declare and pay cash dividends in the future will be made in the sole discretion of our board of directors. We have not adopted a formal written dividend policy. In addition, our ability to pay cash dividends is, and may be, limited by covenants of any current or future outstanding indebtedness we or our subsidiaries incur. Any return on investment in our Class A shares may be solely dependent upon the appreciation of the price of our Class A shares on the open market, which may not occur.

For more information about these restrictions, see "Dividend Policy." There can be no assurance that we will pay dividends in the future or continue to pay any dividends if we do commence paying dividends. Any decision to pay dividends will depend on many factors, including but not limited to our financial condition, earnings, capital requirements, contractual covenants, legal requirements, regulatory constraints, industry practice, ability to access capital markets and other factors deemed relevant by our board of directors. Investors in this offering should make any investment in our Class A shares without reliance on payment of any future dividend.

***The Existing Owners have the ability to direct the voting of a majority of our common shares and control certain decisions with respect to our management and business. The Existing Owners' interests may conflict with those of our other shareholders.***

Upon completion of this offering, the Existing Owners will initially own an aggregate of Class B shares representing % of our voting power (or % of our voting power if the underwriters' option to purchase additional Class A shares is exercised in full). The Existing Owners may also purchase Class A shares through the directed share program, which would increase their voting power.

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The Existing Owners, by virtue of their director designation rights under the Shareholder's Agreements and voting power under the Voting Agreements, each as described below, will be able to control matters requiring shareholder approval, including the election of directors, changes to our organizational documents, approval of acquisition offers and other significant corporate transactions. This concentration of ownership makes it unlikely that any other holder or group of holders of our Class A shares will be able to affect the way we are managed or the direction of our business. The interests of the Existing Owners with respect to matters potentially or actually involving or affecting us, such as future acquisitions, financings and other corporate opportunities and attempts to acquire us, may conflict with the interests of our other shareholders.

Furthermore, prior to the completion of this offering, we expect to enter into Shareholder's Agreements with each of our Existing Owners, providing that our Existing Owners will have the right to designate members of our board of directors. Although none of our Existing Owners will be permitted to individually designate a majority of our board of directors, the terms of the Shareholder's Agreements will result in the Existing Owners being able to collectively designate a majority of our board of directors for a potentially extended period of time following the completion of this offering. The Shareholder's Agreements will provide, subject to compliance with applicable law and NYSE and NYSE Texas rules, for so long as any Existing Owner, and its affiliates and certain transferees, beneficially owns at least 30%, 20% and 10% of our outstanding common shares, such Existing Owner shall be entitled to designate three directors, two directors and one director, respectively, for nomination to our board of directors. If the size of the board of directors is increased or decreased from seven directors, each Existing Owner's nomination rights will be proportionately adjusted. Of the directors designated by each of L&E and Double Eagle, at least two of each such Existing Owner's designees (or if such Existing Owner is designating only one director, such designee) must qualify as "independent" for purposes of serving on the Audit Committee. So long as an Existing Owner is entitled to designate one or more directors and notifies the board of directors of its desire to remove, with or without cause, any director previously designated by it to the board, we are required to take all necessary action to cause such removal.

See "Certain Relationships and Related Transactions—Shareholder's Agreements."

Pursuant to separate Voting Agreements, each Existing Owner will agree with us that it and certain of its transferees will vote all of the common shares that it owns in favor of all director nominees recommended for election by our board of directors. As a result, investors in this offering have a limited ability to influence the direction of our business. See "Certain Relationships and Related Party Transactions—Voting Agreements."

The Existing Owners' substantial ownership of our common shares may have the effect of deterring hostile takeovers, delaying or preventing changes in control or changes in management, or limiting the ability of our other shareholders to approve transactions that they may deem to be in the best interests of our company. Moreover, the Existing Owners' concentration of share ownership may adversely affect the trading price of our Class A shares to the extent investors perceive a disadvantage in owning shares of a company with a significant shareholder.

In addition, the Existing Owners may have different tax positions from us that could influence their decisions regarding whether and when to support the disposition of assets and the incurrence or refinancing of new or existing indebtedness. In addition, the determination of future tax reporting positions, the structuring of future transactions and the handling of any challenge by any taxing authority to our tax reporting positions may take into consideration the Existing Owners' tax or other considerations, which may differ from the considerations of our other shareholders.

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***We engage in transactions with related parties and such transactions present possible conflicts of interest that could have an adverse effect on us.***

We have historically entered into transactions with our operating partners, each of which will be an affiliate of ours following the completion of this offering. Related party transactions create the possibility of conflicts of interest. Although we have established certain policies and procedures designed to mitigate and resolve conflicts of interest, there can be no assurance that these policies and procedures will be effective in doing so. It is possible that a conflict of interest could have a material adverse effect on our liquidity, results of operations and financial condition.

***Our Existing Owners and their respective affiliates are not limited in their ability to compete with us, and may benefit from opportunities that might otherwise be available to us.***

Our LLC Agreement will provide that our officers and directors and their respective affiliates and our Existing Owners and their respective affiliates (each an "Unrestricted Party"), are not restricted from owning assets or prohibited from engaging in other businesses or activities, including those that might be in direct competition with us, and that we renounce any interest or expectancy in any business opportunity that may from time to time be presented to them that would otherwise be subject to a corporate opportunity or other analogous doctrine under the TBOC. In addition, the Unrestricted Parties may compete with us for investment opportunities and may own an interest in entities that compete with us. In particular, our LLC Agreement, subject to the limitations of applicable law, will provide, among other things, that (i) the Unrestricted Parties may conduct business that competes with us and may make investments in any kind of property in which we may make investments, and (ii) if any of the Unrestricted Parties acquire knowledge of a potential business opportunity, transaction or other matter, they have no duty, to the fullest extent permitted by law, to communicate such offer to us, our shareholders or our affiliates.

We may refer any conflicts of interest or potential conflicts of interest involving any of the Unrestricted Parties to a conflicts committee, which must consist entirely of one or more independent directors, for resolution. Additionally, we anticipate that our board of directors will adopt a written related party transactions policy relating to the approval of related party transactions, pursuant to which any such transactions, including transactions with the Unrestricted Parties, will be reviewed and approved or ratified by our Audit Committee or such conflicts committee or pursuant to the procedures outlined in any such policy.

Our Existing Owners may become aware, from time to time, of certain business opportunities (such as acquisition opportunities) and may direct such opportunities to other businesses in which they have invested, in which case we may not become aware of or otherwise have the ability to pursue such opportunities. Furthermore, such businesses may choose to compete with us for these opportunities, possibly causing these opportunities to not be available to us or causing them to be more expensive for us to pursue. Furthermore, our Existing Owners are not required to utilize facilities located on our land in connection with any business opportunities, whether currently existing or arising in the future, and may pursue development opportunities with competing landowners or pursue an alternative land position without informing us of such opportunity or offering such opportunity to us. This renouncing of our interest and expectancy in any business opportunity may create actual and potential conflicts of interest between us and our Existing Owners, and result in less than favorable treatment of us and our shareholders if attractive business opportunities are pursued by our Existing Owners, for their own benefit rather than for ours.

Additionally, our operating partners, which are affiliated with certain of the Existing Owners, may have interests that deviate from ours in the day-to-day operation of their respective businesses. For example, Double Eagle may sell the upstream assets that underlie the DE Acreage Dedication in the

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future in its discretion. If such a sale were to occur, pursuant to the terms of a put option agreement between Double Eagle and Hydrosource, Double Eagle has the right to sell, and Hydrosource has the obligation to purchase, DEF Operating. If Double Eagle exercises such put right, it would cease to be one of our operating partners and we would lose the benefits of that relationship. In addition, our other operating partner, Hydrosource, would become the owner of DEF Operating, which is the party to the DE Flow WSMA and the minimum royalty obligation thereunder. In addition, Double Eagle may exercise the put option at any time following five years from the date of this offering.

***Certain provisions of the TBOC and our LLC Agreement provide additional protections for our officers, directors and affiliates and limit the ability of shareholders to bring derivative claims or submit proposals at our annual meeting. As a result, our shareholders may be disadvantaged as compared to shareholders of Delaware corporations.***

Additionally, pursuant to our LLC Agreement, no shareholder or beneficial owner of shares, or group of shareholders or beneficial owners of shares, may submit a matter for consideration at an annual or special meeting of our shareholders, other than director nominations and procedural resolutions that are ancillary to the conduct of the meeting, unless such shareholder, beneficial owner or group holds a number of common shares, determined as of the date of submission of the proposal, equal to at least (i) $1 million in market value or (ii) 3% of our outstanding common shares. Such shareholder, beneficial owner or group must also have held such number of common shares for a continuous period of at least six months before the date of the meeting, hold such common shares throughout the entire duration of the meeting and solicit the beneficial owners of Class A shares representing at least 67% of Class A shares entitled to vote on the proposal. These requirements are significantly more burdensome than the ownership thresholds applicable to shareholder proposals of Delaware corporations under SEC Rule 14a-8 and may effectively prevent many of our shareholders from submitting proposals for our annual meetings. These provisions of the TBOC and our LLC Agreement may discourage or make it more difficult for our shareholders to pursue legal claims or present proposals for shareholder action, which, taken together, could limit the ability of shareholders to influence our governance.

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***Certain of our directors and officers may have significant duties with, and spend significant time serving, other entities, including entities that may compete with us in seeking acquisitions and business opportunities, and, accordingly, may have conflicts of interest in allocating time or pursuing business opportunities.***

Certain of our directors and officers, who are responsible for managing our business, may hold positions of responsibility with other entities, including those that are in the energy industry. The existing and potential positions held by these directors and officers may give rise to fiduciary or other duties that are in conflict with the duties they owe to us and may also otherwise require attention and time that could otherwise be devoted to our business. Although we expect that our directors and officers will initially spend a significant amount of their time on matters involving our business, we expect that they will also spend time on matters relating to other entities in which they are involved, including the Existing Owners. The ultimate allocation of our directors' and officers' time among us and such other entities will be subject to a variety of factors, including operational and business considerations. These directors and officers may become aware of business opportunities that may be appropriate for presentation to us as well as to the other entities with which they are or may become affiliated. Due to these existing and potential future affiliations, such directors and officers may present potential business opportunities to other entities prior to presenting them to us, which could cause additional conflicts of interest. They may also decide that certain opportunities are more appropriate for other entities with which they are affiliated, and, as a result, they may elect not to present those opportunities to us. These conflicts may not be resolved in our or your best interests.

***A significant reduction by the Existing Owners of their ownership interests in us could adversely affect us.***

We believe that the Existing Owners' ownership interest in us provides them with an economic incentive to assist us in being successful. Upon the expiration of the lock-up restrictions on transfers or sales of our securities following the completion of this offering, the Existing Owners will not be subject to any obligation to maintain their ownership interest in us and may elect at any time thereafter to sell all or a substantial portion of or otherwise reduce their ownership interest in us. If the Existing Owners sell all or a substantial portion of their ownership interests in us, they may have less incentive to assist in our success and its affiliate(s) that are expected to serve as members of our board of directors may resign. Such actions could adversely affect our ability to successfully implement our business strategies, which could adversely affect our results of operations, cash flows and financial position.

***The U.S. federal income tax treatment of dividends on our Class A shares to a holder will depend upon our tax attributes and the holder's tax basis in our Class A shares, which are not necessarily predictable and can change over time, and could cause taxable gain or loss on the sale of our Class A shares to be more or less than expected.***

We have not adopted a formal written dividend policy. Dividend payments of cash or property to holders of our Class A shares, if any, will constitute "dividends" for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent such distribution amounts exceed our current and accumulated earnings and profits, such distributed amount will be treated as a non-taxable return of capital to the extent of a holder's tax basis in our Class A shares and thereafter as capital gain from the sale or exchange of such shares.

If a holder sells its Class A shares, the holder will recognize a gain or loss equal to the difference between the amount realized and the holder's tax basis in such Class A shares. To the extent that the amount of our dividends is treated as a non-taxable return of capital as described above, such dividends will reduce a holder's tax basis in the Class A shares. Consequently, such excess dividends

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will result in a corresponding increase in the amount of gain, or a corresponding decrease in the amount of loss, recognized by the holder upon the sale of the Class A shares or subsequent dividends with respect to such shares. Please read "Material U.S. Federal Income Tax Considerations for Non-U.S. Holders—Gain on Sale or Other Taxable Disposition of Class A Shares" for a further discussion of the foregoing. Additionally, with regard to U.S. corporate holders of our Class A shares, to the extent that a dividend on our Class A shares exceeds both our current and accumulated earnings and profits and such holder's tax basis in such shares, such holders would be unable to utilize the corporate dividends-received deduction (to the extent it would otherwise be applicable to such holder) with respect to the gain resulting from such excess dividend.

Prospective investors in our Class A shares are encouraged to consult their tax advisors regarding the tax consequences of receiving dividends on our Class A shares that are not treated as dividends for U.S. federal income tax purposes.

***The Internal Revenue Service ("IRS") Forms 1099-DIV that our shareholders receive from their brokers may over-report dividend income with respect to our Class A shares for U.S. federal income tax purposes, and failure to report dividend income in a manner consistent with the IRS Forms 1099-DIV may cause the IRS to assert audit adjustments to a shareholder's U.S. federal income tax return. For non-U.S. holders of our Class A shares, brokers or other withholding agents may overwithhold taxes from dividends paid, in which case a shareholder generally would have to timely file a U.S. tax return or an appropriate claim for refund in order to claim a refund of the overwithheld taxes.***

To the extent we make any payments of cash or property to holders of our Class A shares, such payments with respect to our Class A shares will constitute "dividends" for U.S. federal income tax purposes only to the extent of our current and accumulated earnings and profits. Dividends we pay in excess of our earnings and profits will not be treated as "dividends" for U.S. federal income tax purposes; instead, they will be treated first as a tax-free return of capital to the extent of a shareholder's tax basis in their Class A shares and then as capital gain realized on the sale or exchange of such shares. We may be unable to timely determine the portion of our dividends that is a "dividend" for U.S. federal income tax purposes.

For a U.S. holder of our Class A shares, the IRS Forms 1099-DIV may not be consistent with our determination of the amount that constitutes a "dividend" for U.S. federal income tax purposes or a shareholder may receive a corrected IRS Form 1099-DIV (and may therefore need to file an amended federal, state or local income tax return). We will attempt to timely notify our shareholders of available information to assist with income tax reporting (such as posting the correct information on our website). However, the information that we provide to our shareholders may be inconsistent with the amounts reported by a broker on IRS Form 1099-DIV, and the IRS may disagree with any such information and may make audit adjustments to a shareholder's tax return.

For a non-U.S. holder of our Class A shares, "dividends" for U.S. federal income tax purposes will be subject to withholding of U.S. federal income tax at a 30% rate unless an applicable income tax treaty provides for a lower rate or the dividends are effectively connected with conduct of a U.S. trade or business. Please read "Material U.S. Federal Income Tax Considerations for Non-U.S. Holders—Dividends and Other Distributions." In the event that we are unable to timely determine the portion of our dividends that is a "dividend" for U.S. federal income tax purposes, or a shareholder's broker or withholding agent chooses to withhold taxes from dividends in a manner inconsistent with our determination of the amount that constitutes a "dividend" for such purposes, a shareholder's broker or other withholding agent may overwithhold taxes from dividends paid. In such a case, a shareholder generally would have to timely file a U.S. tax return or an appropriate claim for refund in order to obtain a refund of the overwithheld tax.

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***The underwriters of this offering may waive or release parties to the lock-up agreements entered into in connection with this offering, which could adversely affect the price of our Class A shares.***

We, all of our directors, all of our executive officers, the Existing Owners and the TCW Entities, and certain of their respective affiliates, will enter into lock-up agreements pursuant to which we and they will be subject to certain restrictions with respect to the sale or other disposition of our Class A shares or securities convertible into or redeemable, exercisable or exchangeable for Class A shares, including OpCo Units and Class B shares, for a period of 180 days following the date of this prospectus. Please see "Underwriting" for more information on these agreements. If the restrictions under the lock-up agreements are waived, then the Class A shares, subject to compliance with the Securities Act or exceptions therefrom, will be available for sale into the public markets, which could cause the market price of our Class A shares to decline and impair our ability to raise capital.

***For as long as we are an emerging growth company and/or a smaller reporting company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies.***

The JOBS Act contains provisions that, among other things, relax certain reporting requirements for "emerging growth companies," including certain requirements relating to auditing standards and executive compensation disclosure. We are classified as an "emerging growth company" under the JOBS Act, and currently intend to take advantage of the following exemptions. For as long as we are an emerging growth company, which may be up to five full fiscal years, unlike other public companies, we will not be required to, among other things: (i) provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; (ii) comply with any new requirements adopted by the PCAOB requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer; (iii) provide certain disclosures regarding executive compensation required of larger public companies; or (iv) hold nonbinding advisory votes on executive compensation. We currently intend to take advantage of the exemptions described above. We have also elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. We will remain an emerging growth company for up to five years, although we will lose that status sooner if we have more than $1.235 billion of revenues in a fiscal year, have more than $700.0 million in market value of our Class A shares held by non-affiliates, or issue more than $1.0 billion of non-convertible debt over a three-year period.

Additionally, we qualify as a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K under the Securities Act. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, omitting certain executive compensation disclosure and providing only two years of audited financial statements in their periodic reports and registration statements. We will remain a smaller reporting company until the last day of the fiscal year in which: (i) the market value of our common shares held by non-affiliates is $250 million or more as of the end of that fiscal year's second fiscal quarter; or (ii) our annual revenues are $100 million or more during such completed fiscal year and the market value of our common shares held by non-affiliates is $700 million or more as of the end of that fiscal year's second fiscal quarter. To the extent we elect to take advantage of such reduced disclosure obligations, it may also make comparison of our financial statements with other public companies difficult or impossible.

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To the extent that we rely on any of the exemptions available to emerging growth companies and/or smaller reporting companies, you will receive less information about our financial position, executive compensation and internal control over financial reporting than issuers that are not emerging growth companies or smaller reporting companies. Our election to rely on these exemptions may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of such exemptions. If some investors find our Class A shares to be less attractive as a result, there may be a less active trading market for our Class A shares and our Class A share price may be more volatile.

***Because we have elected to take advantage of the extended transition period pursuant to Section 107 of the JOBS Act, our financial statements may not be comparable to those of other public companies.***

Section 107 of the JOBS Act provides that an emerging growth company can use the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This permits an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of this extended transition period and, as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies. Accordingly, our financial statements may not be comparable to those of companies that comply with public company effective dates, and our shareholders and potential investors may have difficulty in analyzing our operating results by comparing us to such companies.

***The market price of our Class A shares may be volatile or may decline regardless of our operating performance, which could cause the value of your investment to decline.***

Even if a trading market develops, the market price of our Class A shares may be highly volatile and could be subject to wide fluctuations. Securities markets in general experience significant price and volume fluctuations that have often been unrelated to the operating performance of particular companies. As such, this market volatility, as well as general economic, market or political conditions, could reduce the value of our Class A shares regardless of our results of operations. In the past, following periods of volatility in the overall market and/or in the value of a company's securities, securities class action litigation has often been instituted against these companies. Such litigation, if instituted against us, could result in substantial costs and a diversion of our management's attention and resources.

The trading market for our Class A shares will also depend in part on the research and reports that securities or industry analysts publish about us or our business. We do not currently have and may never obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of us, the trading price for our Class A shares and other securities would be negatively affected. If such analysts do cover us, they may downgrade our Class A shares due to our operating results being below the expectations of such analysts and investors as a result of a number of potential factors, including variations in our quarterly operating results or dividends, if any, to holders of our Class A shares, additions or departures of key management personnel, failure to meet analysts' earnings estimates, publication of research reports about our industry, litigation and government investigations, changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof affecting our business, adverse market reaction to any indebtedness we may incur or securities we may issue in the future, changes in market valuations of similar companies or speculation in the press or investment community, announcements by our competitors of significant contracts, acquisitions, dispositions, strategic partnerships, joint ventures or capital commitments, adverse publicity about the industries in which we participate or individual scandals, and in response the market price of our Class A shares could decrease significantly. The trading volume of our Class A shares may decline, and you may be unable to resell your shares of Class A shares at or above the initial public offering price.

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***The initial public offering price of our Class A shares may not be indicative of the market price of our Class A shares after this offering. In addition, an active, liquid and orderly trading market for our Class A shares may not develop or be maintained, and our Class A share price may be volatile.***

Prior to this offering, our Class A shares were not traded on any market. After this offering, there will be only publicly traded Class A shares. We do not know the extent to which investor interest will lead to the development of a trading market or how liquid that market might be. Our trading liquidity may also be adversely affected by our structure as a limited liability company, which generally would prevent us from being directly included in certain major stock market indices. Active, liquid and orderly trading markets usually result in less price volatility and more efficiency in carrying out investors' purchase and sale orders. The market price of our Class A shares could vary significantly as a result of a number of factors, some of which are beyond our control. In the event of a drop in the market price of our Class A shares, you could lose a substantial part or all of your investment in our Class A shares. The initial public offering price for our Class A shares will be negotiated between us and the representatives of the underwriters, based on numerous factors which we discuss in "Underwriting," and may not be indicative of the market price of our Class A shares after this offering. The market price of our Class A shares may decline below the initial public offering price. Consequently, you may not be able to sell our Class A shares at prices equal to or greater than the price paid by you in this offering.

The following factors could affect our Class A share price:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• quarterly or annual variations in our financial and operating results, or those of other companies in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the public reaction to our press releases, our other public announcements and our filings with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic actions by us or our competitors, including announcements of significant contracts or acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in revenue or earnings estimates, or changes in recommendations or withdrawal of research coverage, by equity
research analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculation in the press or investment community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the failure of research analysts to cover our Class A shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of our Class A shares by us or other shareholders, or the perception that such sales may occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles, policies, guidance, interpretations or standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures of key management personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions by our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general market conditions, including fluctuations in oil and natural gas prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• domestic and international economic, legal and regulatory factors unrelated to our performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the realization of any risks described under this "Risk Factors" section.

The stock markets in general have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price of our Class A shares. Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company's securities. Such litigation, if instituted against us, could result in very substantial costs, divert our management's attention and resources and harm our results of operations, cash flows and financial position.

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***The market price of our Class A shares could be adversely affected by sales of substantial amounts of our Class A shares in the public or private markets or the perception in the public markets that these sales may occur, including sales by the Existing Owners after the exercise of the Redemption Right.***

After this offering, we will have Class A shares and Class B shares outstanding, assuming no exercise of the underwriters' option to purchase additional Class A shares. The Class A shares sold in this offering will be freely tradable without restriction under the Securities Act, except for any Class A shares that may be held or acquired by our directors, officers or affiliates, which constitute "control securities" under the Securities Act. Any Class A shares purchased by the Existing Owners in this offering pursuant to the directed share program or received by the Existing Owners or the TCW Entities upon their exercise of the Redemption Right will be subject to resale restrictions under a 180 day lock-up agreement with the underwriters and certain additional lock-up restrictions pursuant to the Registration Rights Agreement. Each of the lock-up agreements with the underwriters may be waived in the discretion of certain of the underwriters. Sales by the Existing Owners or the TCW Entities after the exercise of the Redemption Right or sales by other large holders of our Class A shares in the public markets following this offering, or the perception that such sales might occur, could have a material adverse effect on the price of our Class A shares or could impair our ability to obtain capital through an offering of equity securities. In addition, we have agreed to provide registration rights to the Existing Owners and the TCW Entities. Alternatively, we may be required to undertake a future public or private offering of Class A shares and use the net proceeds from such offering to purchase an equal number of OpCo Units, with the cancellation of a corresponding number of Class B shares, from the Existing Owners. Please read "Shares Eligible for Future Sale."

We may sell additional Class A shares in subsequent offerings. Sales of substantial amounts of our Class A shares (including shares issued in connection with an acquisition), or the perception that such sales could occur, may adversely affect prevailing market prices of our Class A shares.

We cannot predict the size of future issuances of our Class A shares or securities convertible into Class A shares or the effect, if any, that future issuances and sales of our Class A shares will have on the market price of our Class A shares.

***We expect to be a "controlled company" within the meaning of the NYSE and NYSE Texas rules and, as a result, will qualify for and intend to rely on exemptions from certain corporate governance requirements.***

Because our Existing Owners will initially own OpCo Units and Class B shares, representing approximately % of our combined voting power following the completion of this offering, and will agree with us, pursuant to the terms of the Voting Agreements, to vote in favor of all director nominees recommended for election by our board of directors, we expect to be a controlled company as of the completion of this offering under the Sarbanes-Oxley Act and the NYSE and NYSE Texas rules. A controlled company is not required to have a majority of independent directors on its board of directors or to form an independent compensation or nominating and corporate governance committee. As a controlled company, we will remain subject to the Sarbanes-Oxley Act and the rules of the NYSE and NYSE Texas that require us, subject to certain phase-in periods, to have an audit committee composed entirely of independent directors. Under these rules, we must have an audit committee that has one member who is independent by the listing date, a majority of members that are independent within 90 days of the effective date and all members that are independent within one year of the effective date. We expect to have independent directors upon the closing of this offering. Further, under these rules, a controlled company may elect not to comply with certain NYSE and NYSE Texas corporate governance requirements, including the requirements that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a majority of the board of directors consists of independent directors as defined under the rules of the NYSE and NYSE
Texas;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the nominating and governance committee be composed entirely of independent directors with a written charter addressing the
committee's purpose and responsibilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the compensation committee be composed entirely of independent directors with a written charter addressing the
committee's purpose and responsibilities.

These requirements will not apply to us as long as we remain a controlled company. A controlled company does not need its board of directors to have a majority of independent directors or to form independent compensation and nominating and governance committees. Following this offering, we intend to utilize some or all of these exemptions. Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the rules of the NYSE and NYSE Texas. Please see "Management" for additional information. If at any time we cease to be a controlled company, we intend to take all action necessary to comply with the Sarbanes-Oxley Act and the NYSE and NYSE Texas rules, including by appointing a majority of independent directors to our board of directors and establishing a compensation committee and a nominating and corporate governance committee, each composed entirely of independent directors, subject to a permitted "phase-in" period.

***Our LLC Agreement, as well as Texas law, will contain provisions that could discourage acquisition bids or merger proposals, which may adversely affect the market price of our Class A shares and could deprive our investors of the opportunity to receive a premium for their shares.***

Our LLC Agreement will authorize our board of directors to issue preferred shares without shareholder approval in one or more series, designate the number of shares constituting any series, and fix the rights, preferences, privileges and restrictions thereof, including dividend rights, voting rights, rights and terms of redemption, redemption prices and liquidation preferences of such series. If our board of directors elects to issue preferred shares, it could be more difficult for a third party to acquire us.

In addition, certain provisions of our LLC Agreement could make it more difficult for a third party to acquire control of us, even if the change of control would be beneficial to our shareholders. Among other things, upon completion of this offering, such provisions of our LLC Agreement include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing that after the Existing Owners no longer have the right, pursuant to the Shareholder's Agreements, to
appoint a majority of our board of directors (the "Trigger Event"), our board of directors will be divided into three classes that are as nearly equal in number as is reasonably possible and each director will be assigned to one of three
classes, with each class of directors elected for a three-year term to succeed the directors of the same class whose terms are then expiring. If at the time of the Trigger Event, any of the directors are designees of Double Eagle, such designees
shall, at Double Eagle's election, be classified as members of the third class of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibiting cumulative voting in the election of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing that after the Trigger Event, the affirmative vote of the holders of not less than 66 2/3% in voting power of all
then-outstanding common shares entitled to vote generally in the election of our board of directors, voting together as a single class, will be required to remove any director from office, and such removal may only be for "cause";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing that after the Trigger Event, all vacancies, including newly created directorships, may, except as otherwise
required by the terms of the Shareholder's Agreements or, if applicable, the rights of holders of a series of preferred shares, only be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum, or by
a sole remaining director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing that after the Trigger Event, shareholders will not be permitted to call special meetings of shareholders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing that after the Trigger Event, our shareholders may not act by written consent and may only act at a duly called
annual or special meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish advance notice procedures with respect to shareholder proposals and nominations of persons for election to our
board of directors, other than nominations made by or at the direction of our board of directors or any committee thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing that a majority of our board of directors is expressly authorized to adopt, or to alter or repeal our LLC
Agreement.

Further, as a Texas limited liability company, we are also subject to provisions of Texas law that may impair a takeover attempt that our shareholders may find beneficial. For additional information, see "Our LLC Agreement—Anti-Takeover Effects of Texas Law and Our LLC Agreement." Any provision of our LLC Agreement or Texas law that has the effect of delaying or preventing a change in control could limit the opportunity for our shareholders to receive a premium for their common shares and could also affect the price that some investors are willing to pay for our Class A shares.

***Our LLC Agreement will designate the Business Court in the Eleventh Business Court Division of the State of Texas as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareholders (excluding claims under the federal securities laws for which the U.S. District Court for the Southern District of Texas will be the sole and exclusive forum), which could limit our shareholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees, other personnel or agents.***

Our LLC Agreement will provide that the Business Court in the Eleventh Business Court Division of the State of Texas will be the exclusive forum for the following types of actions or proceedings under Texas statutory or common law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any derivative action or proceeding brought on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, other employees or
agents to us or our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim against us or any director or officer or other employee of ours arising pursuant to any
provision of the TBOC or our LLC Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim against us or any director or officer or other employee of ours for any other entity claims
(as defined in Section 2.115 of the TBOC).

This choice of forum provision may limit a shareholder's ability to bring a claim in a judicial forum that it finds more favorable for disputes with us or with our directors, officers, other employees or agents, or our other shareholders, which may discourage such lawsuits against us and such other persons, and may result in increased costs for a shareholder to bring a claim. Alternatively, if a court were to find these provisions of our LLC Agreement inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our results of operations, cash flows, and financial position.

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***There are certain provisions in our LLC Agreement regarding fiduciary duties of our directors, exculpation and indemnification of our officers and directors and the approval of conflicted transactions that differ from the TBOC in a manner that may be less protective of the interests of our public shareholders and restricts the remedies available to shareholders for actions taken by our officers and directors that might otherwise constitute breaches of fiduciary duties.***

Our LLC Agreement contains certain provisions regarding exculpation and indemnification of our officers and directors and the approval of conflicted transactions that differ from the TBOC in a manner that may be less protective of the interests of our public shareholders. For example, our LLC Agreement provides that to the fullest extent permitted by applicable law our directors or officers will not be liable to us. In contrast, if we were a corporation formed under the TBOC, a director or officer would be liable to us for (i) breach of the duty of loyalty to us or our shareholders, (ii) an act or omission not in good faith which constitutes a breach of duty or which involves intentional misconduct or knowing violations of the law, (iii) authorization of unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 21.316 of the TBOC, (iv) a transaction from which the director or officer derived an improper personal benefit, or (v) an act or omission for which the liability of a director or an officer is expressly provided for by an applicable statute.

Pursuant to our LLC Agreement and indemnification agreements, we must indemnify our directors and officers for acts or omissions to the fullest extent permitted by law. In contrast, if we were a corporation formed under the TBOC, we could only indemnify directors and officers for acts or omissions if the director or officer acted in good faith and, in the case of conduct in the person's official capacity as a director, in a manner he or she reasonably believed to be in the best interests of the corporation and, in all other cases, that the person reasonably believed his or her conduct was not opposed to the best interests of the corporation and with respect to any criminal action or proceeding, that such person had no reasonable cause to believe his or her conduct was unlawful.

Accordingly, our LLC Agreement may be less protective of the interests of our public shareholders, when compared to the TBOC, insofar as it relates to the exculpation and indemnification of our officers and directors.

***We are a holding company. Our sole material asset after completion of this offering will be our equity interest in OpCo, and accordingly, we will be dependent upon distributions from OpCo to pay taxes and cover our corporate and other overhead expenses.***

We are a holding company and will have no material assets after the completion of this offering other than our equity interest in OpCo. Please see "Corporate Reorganization." We will have no independent means of generating revenue. To the extent OpCo has available cash and subject to the terms of any debt instruments or other applicable agreements, we intend to cause OpCo to make (i) generally pro rata distributions to OpCo Unitholders, including us, in an amount at least sufficient to allow us to pay our taxes, (ii) at the election of certain holders of OpCo Units, additional distributions in an amount generally intended to allow such OpCo Unitholders to satisfy their respective income tax liabilities with respect to their allocable share of the income of OpCo (based on certain assumptions and conventions), which additional distributions may be made on a pro rata basis to all OpCo Unitholders (including us) or a non-pro rata basis to OpCo Unitholders (other than us) in redemption of OpCo Units from such holders and (iii) non pro rata distributions to us in an amount at least sufficient to reimburse us for our corporate and other overhead expenses. In addition, if our board of directors were to determine to pay dividends to holders of Class A shares, we, as the sole managing member of OpCo, would expect to cause OpCo to make pro rata distributions to all of its unitholders, including to us, in an amount sufficient to allow us to fund such dividends to our shareholders in accordance with our dividend policy. Therefore, although we expect to pay dividends on our Class A shares in amounts determined by our board of directors, from time to time, our ability to do so may be limited to the extent

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OpCo and its subsidiaries are limited in their ability to make these and other distributions to us. To the extent that we need funds and OpCo or its subsidiaries are restricted from making distributions under applicable law or under the terms of any current or future financing or other arrangements or are otherwise unable to provide such funds, our results of operations, cash flows and financial position could be materially and adversely affected.

***In certain circumstances, OpCo will be required to make tax distributions to OpCo Unitholders, and such tax distribution may be substantial. To the extent we receive tax distributions in excess of our actual tax liabilities and retain such excess cash, the OpCo Unitholders would benefit from such accumulated cash balances if they exercise their Redemption Right.***

Pursuant to the OpCo LLC Agreement, OpCo will make generally pro rata distributions to the OpCo Unitholders, including us, in an amount sufficient to allow us to satisfy our actual tax liabilities. In addition, to the extent OpCo has available cash, OpCo will be required to make additional pro rata tax distributions to all OpCo Unitholders in an amount generally intended to allow the OpCo Unitholders (other than us) to satisfy their assumed tax liabilities with respect to their allocable share of the income of OpCo (based on certain assumptions and conventions and as determined by OpCo). For this purpose, the determination of available cash will take into account, among other factors, (i) the existing indebtedness and other obligations of OpCo and its subsidiaries and their anticipated borrowing needs, (ii) the ability of OpCo and its subsidiaries to take on additional indebtedness on commercially reasonable terms and (iii) any necessary or appropriate reserves.

The amount of such additional tax distributions will be determined based on certain assumptions, including assumed income tax rates, and will be calculated after taking into account other distributions (including other tax distributions) made by OpCo. Additional tax distributions may significantly exceed the actual tax liability for many of the OpCo Unitholders, including us. If we retain the excess cash we receive from such distributions, the OpCo Unitholders would benefit from any value attributable to such accumulated cash balances as a result of their exercise of the Redemption Right. However, we intend to take steps to eliminate any material excess cash balances, which could include, but are not necessarily limited to, a distribution of the excess cash to holders of our Class A shares or the reinvestment of such cash in OpCo for additional OpCo Units.

In addition, the tax distributions that OpCo may be required to make may be substantial, and the amount of any additional tax distributions OpCo is required to make likely will exceed the tax liabilities that would be owed by a corporate taxpayer similarly situated to OpCo. Funds used by OpCo to satisfy its obligation to make tax distributions will not be available for reinvestment in our business, except to the extent we or certain other OpCo Unitholders use any excess cash received to reinvest in OpCo for additional OpCo Units. In addition, because cash available for additional tax distributions will be determined taking into account the ability of OpCo and its subsidiaries to take on additional borrowing, OpCo may be required to increase its indebtedness in order to fund additional tax distributions. Such additional borrowing may adversely affect our results of operations, cash flows and financial position by, without limitation, limiting our ability to borrow in the future for other purposes, such as capital expenditures, and increasing our interest expense and leverage ratios.

***If OpCo were to become a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, we and OpCo might be subject to potentially significant tax inefficiencies might result.***

Section 7704 of the Internal Revenue Code of 1986, as amended (the "Code"), generally provides that a "publicly traded partnership" will be treated as a corporation for U.S. federal income tax purposes. We intend to operate such that OpCo does not become a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes. A "publicly traded partnership" is a partnership

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the interests of which are traded on an established securities market or are readily tradable on a secondary market or the substantial equivalent thereof. Under certain circumstances, redemptions of OpCo Units pursuant to the Redemption Right (or acquisitions of OpCo Units pursuant to the Call Right) or other transfers of OpCo Units could cause OpCo to be treated as a publicly traded partnership. Applicable U.S. Treasury regulations provide for certain safe harbors from treatment as a publicly traded partnership, and we intend to operate such that redemptions or other transfers of OpCo Units qualify for one or more such safe harbors. For example, we intend to limit the number of OpCo Unitholders, and the OpCo LLC Agreement, which will be entered into in connection with the closing of this offering, will provide for limitations on the ability of OpCo Unitholders to transfer their OpCo Units and will provide us, as the managing member of OpCo, with the right to impose restrictions (in addition to those already in place) on the ability of OpCo Unitholders to redeem their OpCo Units pursuant to the Redemption Right to the extent we believe it is necessary to ensure that OpCo will continue to be treated as a partnership for U.S. federal income tax purposes.

If OpCo were to become a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, significant tax inefficiencies might result for us and for OpCo, including as a result of our inability to file a consolidated U.S. federal income tax return with OpCo. In particular, OpCo would pay U.S. federal (and any applicable state) income tax on its taxable income at the corporate tax rate. Distributions to EagleRock would generally be taxed again as corporate distributions (subject to any applicable corporate dividends received deduction). Because a tax would be imposed on OpCo as a corporation, the amount of cash distributions to us could be substantially reduced, which may cause a substantial reduction in the value of our Class A shares.

***We will incur increased costs as a result of being a publicly traded company.***

As a publicly traded company, we will incur significant legal, accounting, and other expenses that we did not incur prior to this offering. In addition, the Sarbanes-Oxley Act, as well as rules implemented by the NYSE, require publicly traded entities to adopt various corporate governance practices that will further increase our costs. As a result, we expect these requirements will increase our legal and financial compliance costs beyond that reflected in the financial statements included in this prospectus.

***Forecasts and valuation assumptions underlying our initial public offering are preliminary and subject to change; our performance may not meet expectations.***

All financial and operational projections are preliminary management estimates subject to diligence completion and market conditions; actual results and post-initial public offering results may differ materially. We may not achieve targeted margins, utilization or acquisition synergies, and the timing or terms of identified post-initial public offering acquisitions may vary or not occur. If our quarterly or annual operating results fall below the expectations of investors or securities analysts or any forecasts or guidance we may provide to the market, the price of our common shares could decline substantially. Such a share price decline could occur even when we have met any previously publicly stated guidance we may provide. We believe that quarterly or annual comparisons of our financial results are not necessarily meaningful and should not be relied upon as an indication of our future performance.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

Some of the information in this prospectus may contain "forward-looking statements." All statements, other than statements of historical fact, included in this prospectus regarding our strategy, future operations, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this prospectus, words such as "may," "assume," "forecast," "could," "would," "should," "will," "plan," "believe," "anticipate," "intend," "estimate," "expect," "project," "budget" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events at the time such statements were made. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the section titled "Risk Factors" included in this prospectus. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we believe that the forward-looking statements contained in this prospectus are based on reasonable assumptions, you should be aware that many factors could affect our actual results of operations, cash flows and financial position and could cause actual results to differ materially from those in such forward-looking statements, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our customers' demand for and use of our surface, resources and water infrastructure assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to enforce our SUA and other agreements with our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the success of our operating partners in executing their business strategies, including their ability to construct and
operate water infrastructure, attract customers and operate successfully;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our customers' ability to develop our land or potential changes to our customers' development plans, or any
potential acquired acreage to accommodate any future surface use developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the domestic and foreign supply of, and demand for, energy sources, including the impact of actions relating to oil price
and production controls by OPEC+ with respect to oil production levels and announcements of potential changes to such levels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reliance on a limited number of customers and a particular region for substantially all of our revenues, including the
potential conditions of such customers within such region;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to enter into favorable contracts regarding surface uses, access agreements and fee arrangements, including the
prices we are able to charge and the margins we are able to realize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain leases and permits, including our ability to renew leases on state and federal leased land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in state and federal land use policies that change or restrict our right to use state and federal leased land or
increase the cost of such leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our business strategies and our ability to execute thereon, including our ability to attract customers to use our land and
resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commodity price volatility and trends related to changes in commodity prices, and our customers' ability to manage
through such volatility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of competition from other companies, including those offering resources that compete with the resources from our
land;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the price charged to our customers and availability of services necessary for our customers to conduct their
businesses, as a result of oversupply, government regulations or other factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any planned or future expansion projects by us or our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development of advances or changes in energy technologies or practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully implement our growth plans, including through future acquisitions of acreage and/or
introduction of new revenue streams;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential deterioration of our customers' financial condition and their ability to access capital to fund their
development programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the degree to which consolidation among our customers may affect spending on U.S. drilling and completions in the near
term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our customers' ability to obtain necessary supplies, raw materials and other critical components on a timely basis,
or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our and our customers' ability to obtain government approvals or acquire or maintain necessary permits, including
those related to the development and operation of produced water handling facilities, mines and water wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operational disruptions and liability related thereto associated with our customers, including those due to environmental
hazards, fires, explosions, chemical mishandling or other industrial accidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our liquidity and our ability to access the capital markets on favorable terms, or at all, which depends on general market
conditions, including the impact of inflation, elevated interest rates and Federal Reserve policies and potential economic recession;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainty of estimates of resources and minerals, such as oil, natural gas and NGL reserves and production, including
those of our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of changes in general economic, business or industry conditions, market volatility, including as a result of
slowing growth and a potential economic recession, an elevated inflation rate, high interest rates, changes in U.S. and international trade policies and relations, central bank policy and associated liquidity risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of political instability or armed conflict in oil and natural gas producing regions, which may decrease demand
for oil and natural gas or contribute to volatility in the prices for oil and natural gas, which could decrease demand for the use of our land and resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our level of indebtedness and our ability to service our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• title defects in the acreage that we acquire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the markets for real estate in the areas in which we operate and own or plan to own real estate, including pricing
estimates, availability of land and our ability to acquire such land on favorable terms, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to integrate acquired acreage, and any future acquisitions, and manage related growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to recruit and retain, or secure the services of, key management and other personnel and service providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws and regulations (or the interpretation thereof), including those related to hydraulic fracturing, accessing
water, disposing of wastewater, transferring produced water, interstate brackish water transfer, carbon pricing, pipeline construction, taxation or emissions, leasing, permitting or drilling and various other environmental matters;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in effective tax rates, or adverse outcomes resulting from other tax increases or an examination of our income or
other tax returns and tax inefficiencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general domestic and international political and regulatory conditions, including actions taken by the federal, state or
foreign governments, such as executive orders or new or expanded regulations, including U.S. and international trade policies and tax policies, the OBBB Act and its impact on the IRA, and any action related to surface uses and/or development of our
mineral and royalty interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the severity and duration of world health events, natural disasters or inclement or hazardous weather conditions, including
cold weather, droughts, earthquakes, flooding and tornadoes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evolving cybersecurity risks, such as those involving unauthorized access, denial-of-service attacks, malicious software, data privacy breaches by employees, insider or others with authorized access, cyber or phishing-attacks, ransomware, social engineering, physical breaches or
other actions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors discussed elsewhere in this prospectus, including in the section titled "Risk Factors."

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the operation of business in our industry. We disclose important factors that could cause our actual results to differ materially from our expectations under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this prospectus. Should one or more of the risks or uncertainties described in this prospectus occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.

All forward-looking statements, expressed or implied, included in this prospectus are expressly qualified in their entirety by this cautionary note. This cautionary note should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this prospectus.

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**USE OF PROCEEDS** 

We expect to receive $ million of proceeds (or $ million if the underwriters' option to purchase additional Class A shares is exercised in full) from this offering based upon the assumed public offering price of $ per Class A share (the midpoint of the price range set forth on the cover page of this prospectus), net of underwriting discounts and estimated offering expenses payable by us. See "Underwriting."

We intend to contribute all of the net proceeds from this offering to OpCo in exchange for newly issued OpCo Units at a per-unit price equal to the per share price paid by the underwriters for our Class A shares in this offering. OpCo intends to use the net proceeds from this offering (i) to repay in full, and terminate, the Predecessor Credit Facility, (ii) to distribute approximately $ to our Existing Owners and (iii) for general corporate purposes.

The following table illustrates the anticipated use of the proceeds of this offering:

---

| | |
|:---|:---|
| **Source of Funds** | **Uses of Funds** |
| **(in millions)** | **(in millions)** |
|  Gross Proceeds from this offering | $Repayment of Predecessor Credit Facility |
|  | Distribution to our Existing Owners |
|  | General Corporate Purposes |
|  | Underwriting discounts, fees and expenses |
|  Total | $Total |

---

If the underwriters exercise their option to purchase additional Class A shares in full, we expect to receive approximately $ million of additional net proceeds based upon the assumed public offering price of $ per Class A share (the midpoint of the price range set forth on the cover page of this prospectus). We intend to contribute all of the net proceeds from any exercise of such option to OpCo in exchange for additional OpCo Units. OpCo intends to use such additional net proceeds to increase the amount of proceeds we will use for general corporate purposes.

After the application of the net proceeds from this offering, we will own approximately % of outstanding OpCo Units (or approximately % of outstanding OpCo Units if the underwriters' option to purchase additional Class A shares is exercised in full).

Each $1.00 increase or decrease in the assumed public offering price of $ per Class A share (the midpoint of the price range set forth on the cover of this prospectus) would increase or decrease the net proceeds to us from this offering by approximately $ million (or approximately $ million if the underwriters' option to purchase additional Class A shares is exercised in full) and, as a result, would increase or decrease the distribution to our Existing Owners by approximately $ million (or approximately $ million if the underwriters' option to purchase additional Class A shares is exercised in full), assuming that the number of Class A shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and estimated offering expenses payable by us. If the proceeds increase due to a higher public offering price or an increase in the number of Class A shares offered, we intend to contribute the additional net proceeds to OpCo in exchange for additional OpCo Units and OpCo intends to use such additional net proceeds to increase the amount of proceeds we will use for general corporate purposes. If the proceeds decrease due to a lower public offering price or a reduction in the number of Class A shares offered, we would contribute a lesser amount of net

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proceeds to OpCo and receive fewer OpCo Units and OpCo will decrease the amount of proceeds we will use for general corporate purposes.

As of December 31, 2025, we had $265.6 million of outstanding borrowings under our Predecessor Credit Facility, exclusive of $35.1 million of unamortized debt premium (discount) and issuance costs, net, which matures on April 4, 2029. The weighted average interest rate on the total amount of borrowings outstanding under the Predecessor Credit Facility as of December 31, 2025 was 12.83% in the case of revolving credit borrowings and 12.81% in the case of term loan borrowings. We are currently in compliance with all affirmative and negative covenants under the facility.

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**DIVIDEND POLICY** 

We expect to seek to pay dividends on our Class A shares in amounts determined from time to time by our board of directors.

While we expect to seek to pay dividends, we have not adopted a formal written dividend policy to pay any particular amount of dividends based on the achievement of, or derivable from, any specific financial metrics. Furthermore, we are not contractually obligated to pay any dividends and do not have any required minimum dividend amount, and our Credit Facility will limit our ability to pay dividends. If our board of directors determines to pay dividends in the future, the amount of such dividends may vary from quarter to quarter and may be significantly reduced or eliminated entirely. The actual amount of any dividends we pay may fluctuate depending on our cash flow needs, which may be impacted by the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs, potential acquisition opportunities and general industry and business conditions, including the level of use of our land and its resources. Given our reliance on our customers and their activity on our land, we cannot provide any assurance that we will pay dividends in the future. For more information see "Risk Factors—Risks Related to this Offering, Our Corporate Structure and Our Class A Shares—Our ability to pay dividends to our shareholders may be limited by our holding company structure, contractual restrictions and regulatory requirements." The declaration and payment of any dividends by us will be at the sole discretion of our board of directors, which may change our dividend policy or discontinue payment of dividends at any time. In determining whether to pay any dividends and the timing and amount thereof, we expect that our board of directors will consider:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and business conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our cash flows from operations and current and anticipated cash needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our capital requirements, including future acreage acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal, tax, regulatory and contractual (including under our Credit Facility and future financing arrangements) restrictions
and implications on the payment of dividends by us to our shareholders or the payment of distributions by our subsidiaries to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such other factors as our board of directors may deem relevant.

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**CAPITALIZATION** 

The following table sets forth our cash and cash equivalents and capitalization as of December 31, 2025, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis for L&E, our predecessor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma basis to give effect to the exclusion of the Excluded Assets, the Shallow Valley Contribution and the DE
Flow Contribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma, as adjusted basis to give effect to the Pro Forma Transactions and the Up-C Reorganization and this offering at the assumed initial offering price of $ per Class A share (the midpoint of the price range set forth on the cover of this prospectus)
and the application of the net proceeds therefrom as described under the section titled "Use of Proceeds."

The information set forth below is illustrative only and will be adjusted based on the actual public offering price and other final terms of this offering. The table below should be read in conjunction with, and is qualified in its entirety by reference to, the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the historical consolidated financial information of L&E and our unaudited pro forma condensed consolidated financial information for the periods and as of the dates indicated.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Predecessor** | **Pro Forma** | **Pro Forma, as<br>Adjusted** |
|  | **(in thousands, except number of common<br>shares)** | **(in thousands, except number of common<br>shares)** | **(in thousands, except number of common<br>shares)** |
|  **Cash and cash equivalents** | $9042 | $| $|
|  **Long-Term Debt:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Predecessor Credit Facility<sup>(1)</sup> | 265610 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit Facility |  |  |  |
|  **Equity:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common units (2,095 units authorized, 1,195 and 1,000 outstanding as of December 31, 2025 and 2024, respectively) | 14016 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital—members' interests | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital—warrants—related party<sup>(2)</sup> | 18416 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (74146) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A member's equity; no Class A shares issued or outstanding (actual and pro forma); Class A shares issued and outstanding (pro forma, as adjusted) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B member's equity; no Class B shares issued or outstanding (actual and pro forma); Class B shares issued and outstanding (pro forma, as adjusted) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interest<sup>(3)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total capitalization** | $223895 | $| $|

---

(1) The balance of the Predecessor Credit Facility reflects outstanding borrowings as of December 31, 2025, and excludes
$35.1 million of unamortized premium.

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(2) As described in "Corporate Reorganization," in connection with this offering, each TCW Entity will, pursuant
to a Warrant Exercise Agreement, exercise a portion of its L&E Warrants and forfeit the remaining portion, which will be irrevocably cancelled, immediately following which (i) L&E will distribute     OpCo Units and a
corresponding number of Class B shares to the TCW Entities in redemption of the L&E units received in respect of the Exercised Warrants, (ii) each Warrant Agreement will terminate and (iii) each of the Rollover TCW Entities will merge with one
or more newly formed subsidiaries of EagleRock and receive one Class A share in exchange for each OpCo Unit (and Class B share) it holds. As a result, the L&E Warrants will no longer be outstanding following this offering. For further details
regarding the L&E Warrants, please see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Predecessor Liquidity and Capital Resources—L&E Warrants."

(3) On a pro forma, as adjusted basis, includes the OpCo Units not owned by us, which represent
approximately    % of outstanding OpCo Units immediately after this offering. Our Existing Owners will hold a non-controlling economic interest in OpCo. We will hold approximately
    % of outstanding OpCo Units immediately after this offering (or approximately     % of outstanding OpCo Units if the underwriters' option to purchase additional Class A shares is
exercised in full).

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**DILUTION** 

Purchasers of the Class A shares in this offering will experience immediate and substantial dilution in the net tangible book value per Class A share for accounting purposes. Our pro forma, as adjusted net tangible book value as of December 31, 2025, after giving effect to the Pro Forma As Adjusted Transactions, was $, or $ per Class A share. Pro forma net tangible book value per Class A share is determined by dividing our pro forma, as adjusted tangible net worth (tangible assets less total liabilities) by the total number of Class A shares that would have been outstanding immediately prior to the closing of this offering after giving effect to the Pro Forma As Adjusted Transactions other than this offering and the application of the net proceeds therefrom (assuming that 100% of our Class B shares have been cancelled in connection with a redemption of OpCo Units for Class A shares on a one-for-one basis).

After giving effect to the sale of Class A shares in this offering and further assuming the receipt of the estimated net proceeds from this offering (after deducting estimated underwriting discounts and estimated offering expenses payable by us), our pro forma, as adjusted net tangible book value as of , would have been $, or $ per Class A share. This represents an immediate increase in the net tangible book value of $ per Class A share (assuming that 100% of our Class B shares have been cancelled in connection with a redemption of OpCo Units for Class A shares) to our Existing Owners and the TCW Entities and an immediate dilution (i.e., the difference between the offering price and the as adjusted net tangible book value after this offering) to new investors purchasing Class A shares in this offering of $ per Class A share. The following table illustrates the per Class A share dilution to new investors purchasing Class A shares in this offering (assuming that 100% of our Class B shares have been cancelled in connection with a redemption of OpCo Units for Class A shares on a one-for-one basis):

---

| | |
|:---|:---|
|  Public offering price per Class A share | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As adjusted net tangible book value per Class A share as of , (after giving effect to the Pro Forma As Adjusted Transactions) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase per Class A share attributable to this offering and related transactions as described above |  |
|  Pro forma, as adjusted net tangible book value per Class A share (after giving further effect to this offering and the related transactions as described above) |  |
|  Dilution in pro forma, as adjusted net tangible book value per Class A share to new investors in this offering | $|

---

The dilution information discussed in this section is illustrative only and will change based on the actual public offering price and other terms of this offering to be determined at pricing. Each $1.00 increase or decrease in the public offering price of $ per Class A share (the midpoint of the price range set forth on the cover of this prospectus) would increase or decrease the net proceeds to us from this offering by $ million (or $ million if the underwriters' option to purchase additional Class A shares is exercised in full), assuming the number of Class A shares offered by us, as set forth on the cover page of this prospectus, remains the same, after deducting estimated underwriting discounts and estimated offering expenses payable by us.

The following table summarizes, on a pro forma, as adjusted basis as of , , the total number of Class A shares owned by our Existing Owners and the TCW Entities (assuming that 100% of our Class B shares have been cancelled in connection with a redemption of OpCo Units for Class A shares) and to be owned by new investors in this offering, the total consideration paid, and the average price per share paid by our Existing Owners and the TCW Entities and to be paid by new

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investors in this offering at our initial offering price of $ per Class A share, calculated before deduction of estimated underwriting discounts and estimated offering expenses payable by us.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares Acquired** | **Shares Acquired** | **Total<br>Consideration** | **Average<br>Price Per<br>Share** |
|  | **Number** | **Percent** | **Percent** | **Average<br>Price Per<br>Share** |
|  | **(in thousands except share and per share amounts)** | **(in thousands except share and per share amounts)** | **(in thousands except share and per share amounts)** | **(in thousands except share and per share amounts)** |
|  Existing Owners and TCW Entities% |  |  | $nan% | $|
|  New investors in this offering% |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total% |  |  | $nan% | $|

---

The information excludes (i) Class A shares reserved for issuance under our LTIP, which we intend to adopt in connection with the completion of this offering, and (ii) Class A shares reserved for issuance in connection with any exercise of the Redemption Right or the Call Right.

Except as otherwise noted, all information in this prospectus assumes (i) no exercise by the underwriters of their option to purchase additional Class A shares and (ii) no purchase of Class A shares by our directors, officers, employees and other individuals associated with us and members of their families through the directed share program. If the underwriters' option to purchase additional Class A shares is exercised in full, the number of Class A shares held by new investors in this offering will be increased to , or % of the total number of Class A shares outstanding immediately after this offering.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with "Summary—Summary Consolidated Financial and Other Data" and the accompanying financial statements and related notes included elsewhere in this prospectus. Unless otherwise indicated, all references to financial or operating data on a pro forma basis give effect to the Pro Forma Transactions described under "Basis of Presentation" and in the Unaudited Pro Forma Condensed Consolidated Financial Statements included elsewhere in this prospectus. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Factors that could cause or contribute to such differences include, but are not limited to, market prices for oil and natural gas, production volumes, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this prospectus, particularly in the sections titled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements," all of which are difficult to predict. In light of these risks, uncertainties and assumptions, actual results may differ materially from those contained in our forward-looking statements. We assume no obligation to publicly update any of these forward-looking statements except as otherwise required by applicable law.* 

**Overview** 

***Our Business***

We are a land management company that owns or controls approximately 236,000 acres in the heart of the Delaware and Midland sub-basins within the prolific Permian Basin. In addition, we have an interest in up to approximately 70,000 acres pursuant to an acreage dedication related to our Midland Basin water infrastructure assets. Our acreage is vital to the efficient development of oil and natural gas resources in the Permian Basin and is strategically located to support the growing surface, resource, infrastructure and related commercial development needs of the power and other emerging industries in the Permian Basin. We do not own the oil and gas mineral interests that underlie our surface acreage.

Our assets are situated in the most active oil and natural gas development and production areas in Texas and New Mexico. The Permian Basin is regarded as the premier region for upstream development due to its prolific remaining resource, low break-even costs and robust network of service and infrastructure companies that support upstream activity. The depth and quality of the remaining resource has attracted large, public and well-capitalized producers who have largely consolidated the core of the Midland and Delaware sub-basins. In turn, the abundance of economic and highly reliable energy has underpinned a number of emerging industries within the Permian Basin, including traditional and renewable power generation, transmission and storage and data centers.

***Market Condition and Outlook***

Over the last several years, the global economy and the oil and natural gas industry have experienced considerable volatility driven by a range of macroeconomic and geopolitical factors. Global conflicts, ongoing ambiguity surrounding tariffs and international trade policies, domestic political developments, elevated inflation, higher interest rates and changing costs of capital have influenced business activity across the energy sector, contributing to broader economic uncertainty that continues to affect short- and long-term development decisions of energy companies.

These conditions, combined with the war in the Middle East involving the U.S., Israel and Iran, as well as other Middle Eastern countries, the situation in Venezuela, OPEC+ actions and evolving global supply-demand fundamentals, have driven increased volatility in commodity prices. From December 31,

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2024, to December 31, 2025, average WTI oil prices decreased approximately 14.7% year-over-year, while average Henry Hub natural gas prices increased approximately 60.2% over the same period. However, in March 2026, as a result of the escalating Middle East conflict, WTI posted price increased to over $94.0 per barrel or 38.0%, since December 31, 2025 as a result of production shut-ins, interruptions in global shipping routes and other uncertainties. Volatility in oil and natural gas prices may have an impact on customer activity levels on our land. If global oil prices continue to increase or remain high, we believe there could be increased oil and gas development activities in the Permian Basin where our acreage and assets are located. However, sustained higher crude oil prices could result in general price increases and ultimately increased cost inflation, which could adversely impact our and our customers' future profitability if we and they are unable to timely pass-through the cost increases to our customers. Alternatively, resolution of the conflict in the Middle East, particularly if new sources of crude oil supply become available, could result in a decrease in crude oil prices, which could reduce the activity levels of customers on our acreage.

Despite the significant volatility in the global oil market, we believe the outlook for energy and infrastructure development, particularly in the Permian Basin, remains favorable. The focus on energy independence is promoting continued activity in the U.S., which is expected to drive significant investment in infrastructure, especially in the prolific Permian Basin where our land and assets are located. U.S. energy policy developments, including Executive Orders promoting domestic energy production through expedited infrastructure approvals and reduced barriers to resource development, may further support investment and operational activity in the basin. At the same time, federal incentives for alternative and renewable energy technologies may accelerate the broader energy transition. Many of these emerging energy initiatives, similar to traditional oil and gas development, require substantial surface acreage and related infrastructure, positioning companies with significant land and infrastructure assets to benefit from both traditional and renewable energy sources.

**How We Generate Revenue** 

We generate revenue from multiple sources, including the use of our surface acreage, the sale of water and other resources from our land and our water handling infrastructure. The fees, royalty rates, payment structures and other commercial terms under our contracts are negotiated individually, reflecting the specific surface use, type of resource development, anticipated operational intensity and expected production or extraction volumes associated with each agreement. Further, the amount and composition of revenue we receive from a particular customer may vary significantly from period to period based on the nature, timing and scope of that customer's activities on our land. We are focused on actively growing revenue from the use of our surface acreage and the sale of resources from our land. We believe that our largely fee-based SUAs, as well as our strong base of royalty fees, support cash flow stability through commodity price cycles.

The table below summarizes revenues for our predecessor on a historical and Pro Forma basis for the periods indicated:

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| | | | |
|:---|:---|:---|:---|
|  | **Predecessor<sup>(1)</sup>** | **Predecessor<sup>(1)</sup>** | **Pro Forma** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Resource sales and royalties: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $14120 | $55179 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource royalties |  |  |  |
|  Surface use royalties and revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues | 3120 | 13667 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties | 461 | 3327 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues<sup>(2)</sup>** | $17701 | $72173 | $|

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(1) 2024 and 2025 Resource sales referenced above consists of $10.9 million and $50.3 million reported as "Water
sales," $1.4 million and $0.5 million reported as "Related party water sales" and $1.8 million and $4.3 million of mined caliche resource sales reported as "Surface and other revenues," respectively, on our
predecessor's Consolidated Statement of Operations. The remaining revenues reported on our predecessor's Consolidated Statement of Operations have been disaggregated between Surface use royalties and Surface use related revenues above.

(2) Refer to the Unaudited Pro Forma Condensed Consolidated Financial Statements included elsewhere in this prospectus for
additional information on the reclassification of revenues included in the Predecessor's 2025 financial statements to conform to the line items above.

In the early stages of a customer's development program, we typically generate usage-based fees and other revenues related to the installation of infrastructure required to support long-term operations. As development progresses, these revenues generally transition toward royalty or lease revenues and resource sales based on the customer's ongoing use of our land and the extraction of resources to support its oil and gas development activities.

The following table summarizes our revenue streams:

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| | |
|:---|:---|
|  **<u>Resource Sales and Royalties</u>** |  |
|  Resource sales | Water sales based on a fee per barrel and caliche sold to customers at a fixed fee per cubic yard |
|  Resource royalties | Royalties generated from third-parties extracting and/or selling resources from our land |
|  **<u>Surface Use Royalties and Revenue</u>** |  |
|  Surface use royalties | Royalties from produced water takeaway, transportation and disposal, and transportation and sale of recycled water, based on use of our assets |
|  Surface use related revenues | Surface lease and fees based on fixed fees and rates for a variety of activities |

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***Resource Sales and Royalties***

Under our SUAs, we supply water to upstream operators primarily for use in their well completions in exchange for a per barrel fee. These fees are negotiated and vary depending on the delivery point. Our SUAs provide us with the exclusive right to supply water and certain resources to support an operator's completion activities on certain parts of our acreage at a negotiated fixed fee per barrel. Similarly, our customers are required to purchase caliche from us for the construction of access roads and well pads for which we receive a fixed-fee per cubic yard of caliche extracted from our surface acreage as stipulated in such SUAs.

***Surface Use Royalties and Revenue***

Under our SUAs, we receive a royalty based on a percentage of gross revenue derived from the use of our land and/or volumetric use of infrastructure installed on our land in exchange for rights of use of our land, one-time or annual payments and additional fees at each renewal period. We typically receive royalties from such operations under our SUAs throughout the lifecycle of our customers' activities on our land. Surface use royalties include royalties from certain SWDs on and off our ranches

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and lease payments with a base rate from use of our subsurface pore space, third-party sales of recycled water, development and use of drilling sites, new and existing roads, pipeline easements and electric transmission easements.

Under the Hydrosource Recycling Agreement that will be entered into in connection with this offering, we will receive a fee for each barrel of recycled water Hydrosource sells on our land and within certain designated areas outside of our land, and Hydrosource is required to generate minimum annual royalty revenue of $5.0 million from its activities during the initial five years of the agreement. The Company and Hydrosource have access to supplemental off-ranch water (either recycled or brackish water), and the Company's surface pipeline has the capacity to move approximately 100 MBbls/d, or approximately 36.5 MMBbls per year, of off-ranch water from Texas to its land in New Mexico. Under the Hydrosource Recycling Agreement, we may designate to Hydrosource the rights to manage certain of our customer brackish water demand for which we would expect to receive a royalty payment. Additionally, the Hydrosource Recycled Water Supply Agreement provides Hydrosource with access to up to 3 MMBbls/d of produced water for treatment and recycling within certain designated areas in the Permian Basin.

Additionally, we will receive revenue from our integrated water infrastructure system in the Midland Basin, which is operated by DEF Operating. The operating costs and maintenance expenses of these water infrastructure assets, which include produced water gathering systems, SWDs, water sourcing and delivery pipelines and recycling facilities, will be primarily borne by DEF Operating, with minimal operating costs or capital expenditures borne by us.

Our revenues may fluctuate materially from period to period due to variations in producer activity on and around our land, the introduction of new revenue streams, movements in commodity prices, changes in production volumes and the execution of our acquisition strategy, among other factors. Because our business is closely tied to the operational decisions of our customers, shifts in their development plans directly affect our revenue profile and periods of sustained oil and natural gas price declines have historically led customers to reduce activity levels, which would adversely impact our revenues. We expect to evaluate and pursue opportunities to expand and diversify our revenue base, including potential projects related to solar power generation, energy storage, water treatment and desalination, fueling infrastructure, data centers, telecommunications assets and other complementary uses of our land, although there can be no assurance that these initiatives will be successful or that any resulting revenues will materially diversify our overall revenue mix. In addition, we have grown our revenues, Adjusted EBITDA and cash flow through strategic acquisitions, customer pricing and volume improvements enabled by our ability to consolidate acreage with significant oil and gas development activity, and by working collaboratively with customers on and around our controlled surface acreage to sign new agreements and promote increased use of our land and resources. Our ability to source new commercial opportunities for assets we own or have acquired has contributed to strong financial results, and our business model and significant free cash flow generation continue to be underpinned by low or no capital expenditures with minimal operating costs and employee headcount. In addition, our long-term contracts provide predictable, stable cash flows that are protected from commodity price fluctuations.

**Costs of Conducting our Business** 

Our costs consist primarily of the cost of sales and general and administrative expenses. Our business model and significant free cash flow generation continue to be underpinned by low or no capital expenditures with minimal operating costs and headcount. Our principal costs are as follows:

***Cost of Sales.*** Cost of sales consists primarily of expenses incurred to manage our land, and its resources which include our field personnel's compensation and related benefits, third-party water purchases, water treatment and handling costs, including cost of repairs and maintenance of ancillary

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water storage facilities and costs associated with compliance with our leased land obligations. These costs generally fluctuate with changes in volumes and activity levels of our customers. Water sourced from our water wells typically has insignificant lifting costs associated with the pumping and logistics of the water resources. In certain instances, we source and purchase supplemental water from other third parties to meet our incremental customer demands. We pass through the costs of our third-party sourced water and handling costs to our customers at costs plus a markup.

***General and Administrative Expenses.*** General and administrative expenses consist primarily of corporate personnel costs, including salaries, bonuses, service fees, payroll taxes and employee-related insurance. These expenses also include professional services such as legal, consulting and accounting fees, as well as information technology and software costs that support our corporate functions. Office-related expenses, such as rent, office equipment rentals, supplies, communications, bank charges and dues and subscriptions, represent an additional component of our administrative cost structure. We also incur various commercial insurance costs, including general liability, directors and officers insurance, umbrella liability, workers' compensation, auto insurance and property insurance, along with other corporate overhead such as marketing, travel, meals, vehicle lease expenses and miscellaneous administrative expenses. These costs reflect the resources required to manage our business, comply with regulatory and public company requirements and support the organizational infrastructure needed to execute our strategic objectives.

**How We Evaluate Our Operations** 

We use a variety of financial and operational metrics to assess the performance of our business.

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| | | | |
|:---|:---|:---|:---|
|  | **Predecessor<sup>(1)</sup>** | **Predecessor<sup>(1)</sup>** | **Pro Forma** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  **Statement of Operations Data:** |  |  |  |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $14120 | $55179 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource royalties |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues | 3120 | 13667 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties | 461 | 3327 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues<sup>(2)</sup>** | $17701 | $72173 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | $4873 | $20863 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party cost of sales | 3438 | 10207 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 2600 | 9834 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party general and administrative expense | 198 | 235 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 3944 | 14984 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plants and equipment, net | (4954) | (2067) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | $10099 | $54056 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating Income (Loss)** | $7602 | $18117 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense—related party | (8703) | (21185) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt |  | (70001) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from operations before taxes** | $(1101) | $(73069) | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | (26) | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss)** | $(1075) | $(73071) | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) Margin | (6.1)% | (101.2)% |  |

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| | | | |
|:---|:---|:---|:---|
|  | **Predecessor** | **Predecessor** |  |
|  | **Year ended December 31,** | **Year ended December 31,** |  |
|  | **2024** | **2025** |  |
|  | **(in thousands)** | **(in thousands)** |  |
|  **Statement of Cash Flows Data**: |  |  |  |
|  Net cash provided by (used in): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $907 | $14138 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | $(64556) | $(204963) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | $64711 | $199090 |  |
|  Operating cash flow margin | $5.1% | $19.6% |  |
|  **Supplementary Non-GAAP Financial and Operating Data**: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA<sup>(3)</sup> | $7350 | $35533 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA Margin | 41.5% | 49.2% | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Free Cash Flow<sup>(3)</sup> | $5868 | $30281 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Free Cash Flow Margin | 33.2% | 42.0% | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface Use Efficiency<sup>(4)</sup> | $202.3 | $415.6 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Water Volumes (MMBbls)<sup>(5)</sup> | 19.2 | 73.0 |  |
|  **Selected Balance Sheet Data (at end of period)**: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $1062 | $9042 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $86694 | $282010 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current liabilities | $77521 | $306594 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | $87769 | $323725 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Members' deficit | $(1075) | $(41715) | $— |

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(1) 2024 and 2025 Resource sales referenced above consists of $10.9 million and $50.3 million reported as "Water
sales," $1.4 million and $0.5 million reported as "Related party water sales" and $1.8 million and $4.3 million of mined caliche resource sales reported as "Surface and other revenues," respectively, on our
predecessor's Consolidated Statement of Operations. The remaining revenues reported on our predecessor's Consolidated Statement of Operations have been disaggregated between Surface use royalties and Surface use related revenues above.

(2) Refer to the Unaudited Pro Forma Condensed Consolidated Financial Statements included elsewhere in this prospectus for
additional information on the reclassification of revenues included in the Predecessor's 2025 financial statements to conform to the line items above.

(3) See "Summary—Non-GAAP Financial Measures" for a reconciliation
of these measures to the nearest GAAP measure.

(4) Surface Use Efficiency is calculated by dividing revenue by weighted average total surface acreage. See
"—Surface Use Efficiency" below for more information on the calculation and use of this metric.

(5) See "Total Water Volumes" below for more information on the use of this metric.

***Revenue***

Revenue is a key performance indicator for our business. We monitor realized revenue on a monthly, quarterly and annual basis and compare these results to our internal forecasts and budgets. This analysis helps us validate, and when necessary, update, our assumptions regarding the macroeconomic factors influencing our business, the mix of contracts affecting average unit-level revenues, and the level of development activity and commodity pricing associated with our E&P customers, independent of the impact of our operating costs.

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***Surface Use Efficiency***

We calculate surface use efficiency as total revenues divided by our weighted average total surface acreage. Weighted average total surface acreage represents the total surface acreage owned or controlled by the Company, weighted based on the portion of the period during which the acreage was owned or controlled by the Company. The metric quantifies the effectiveness of our active land management strategy by looking at our ability to optimize revenue on our acreage, evaluate accretive acreage acquisition and compare results period over period. Additionally, we believe this metric serves as a benchmark of our team's strategy, as well as the relative value of our surface acreage, compared to peers.

***Total Water Volumes***

Total water volumes sold or handled are an important revenue driver for our business. We generally charge a fixed per-barrel fee for water sales and expect to receive a royalty for water activity under the Hydrosource Recycling Agreement and DE Flow WSMA. Our SUAs provide us with the exclusive right to supply water and certain resources to support an operator's completion activities on certain parts of our acreage. Revenue increases as total water volumes sold or handled increase, and these volumes are an indicator of activity on our land, which can be driven by our customers' drilling and completion schedules. We believe this metric is useful because our revenues increase as total water volumes sold or handled increase. In addition, water volumes are an indicator of activity on our land and give visibility into our customers' drilling and completion schedules, which influence our

financial performance.

***Adjusted EBITDA and Adjusted EBITDA Margin***

Adjusted EBITDA and Adjusted EBITDA Margin are used by our management and by external users of our financial statements, such as investors, research analysts and others, to assess the financial performance of our assets over the long term to generate sufficient cash to return capital to equity holders or service indebtedness and to evaluate our performance relative to our peers. For more information regarding Adjusted EBITDA and Adjusted EBITDA Margin, including reconciliations to the comparable GAAP measure, please read "Summary—Non-GAAP Financial Measures."

***Free Cash Flow and Free Cash Flow Margin***

Free Cash Flow and Free Cash Flow Margin are used by our management and by external users of our financial statements, such as investors, research analysts and others, to assess our ability to repay our indebtedness, return capital to our shareholders, fund potential acquisitions without access to external sources of financing for such purposes and to evaluate our performance relative to our peers. For more information regarding Free Cash Flow and Free Cash Flow Margin, including reconciliations to the comparable GAAP measure, please read "Summary—Non-GAAP Financial Measures."

**Key Factors Affecting our Results of Operations** 

***Dependence on Hydrocarbon Activity and Commodity Prices***

Our results of operations are substantially dependent on the level of oil and natural gas exploration, development and production activity on and around our surface acreage in the Permian Basin, including our properties in the Delaware Basin in New Mexico and the Midland Basin in Texas, which activity is significantly influenced by prevailing and expected commodity prices. Although we are not an E&P company and have limited physical operations, we primarily generate revenues from

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surface use fees, easements and rights-of-way, resource sales, such as brackish water and caliche, and royalties associated with third-party development and infrastructure on or adjacent to our lands, rather than by operating drilling or midstream assets. As a result, any sustained reduction in operator activity on or around our lands could materially reduce our revenues, earnings and cash flows. Periods of lower commodity prices may cause operators to curtail drilling and completion programs, defer or renegotiate commercial arrangements or surrender leases, any of which could reduce demand for surface access, water and other resources sourced from our lands and diminish volumetric royalties tied to produced-water handling and disposal, thereby adversely affecting our ability to realize anticipated revenues from our existing asset base. While certain arrangements, such as our Hydrosource Recycling Agreement and DE Flow WSMA, which include minimum annual royalty revenues can partially mitigate volume risk, these features do not eliminate our exposure to reduced activity levels, delays or cancellations driven by commodity price weakness or volatility.

Our ability to grow also depends on continued demand for access to our lands and associated surface rights by E&P operators, midstream providers and other energy and infrastructure users, which demand is closely linked to commodity price expectations, industry capital spending and basin-level capital allocation. If oil and natural gas prices remain depressed or volatile for an extended period, or if operators reallocate capital away from the Delaware or Midland basins where our properties are concentrated, we could experience slower growth in new surface-use arrangements, reduced renewals or expansions of existing agreements and intensified competition for fewer development opportunities. In particular, throughput and related royalties from our Midland Basin produced-water handling network (operated by DEF Operating and currently designed for peak handling capacity of approximately 400 MBbls/d) depend on producer activity levels and the pace of tie-ins, constraints such as pore-space availability, recycling and injection permitting, supply-chain delays or deferrals of drilling and completion schedules can limit volumetric growth and associated payments to us notwithstanding contractual protections. More broadly, because a substantial portion of our revenues are activity-linked, arising from surface use fees, ROWs and easements, water sales, produced-water transportation, recycling and disposal royalties and resource sales (including caliche), industry slowdowns can directly reduce the number, timing and scale of projects undertaken on our land, negatively affecting our results of operations and our ability to execute our growth strategy.

***Public Company Costs***

Following the completion of this offering, we expect to incur incremental, non-recurring costs associated with our transition to a publicly traded and taxable entity. These transition-related expenses will include offering-related professional fees and other offering costs, as well as the initial design, documentation, implementation and testing of enhanced internal controls over financial reporting under the Sarbanes-Oxley Act. We also anticipate one-time investments in governance structures and policies, board and committee operations, director onboarding and training and upgrades to financial reporting, disclosure and compliance systems necessary to support public company requirements.

In addition to these non-recurring items, we expect to incur significant recurring costs as a public company. These ongoing expenses will include SEC reporting and compliance obligations (including the preparation, review and filing of annual, quarterly and current reports), registrar and transfer agent fees, national securities exchange listing fees, recurring audit and legal fees, investor relations activities and related communications and increased director and officer liability insurance premiums and director compensation. We also expect to incur continuing costs to maintain and periodically test internal controls and disclosure controls and procedures, sustain cybersecurity and data privacy programs appropriate for a public company environment and retain external advisors to support technical accounting, tax compliance and other specialized governance and regulatory matters.

In connection with this offering and our public company readiness efforts, we expect to hire additional employees and engage consultants, including accounting, finance, compliance, internal

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audit, tax and legal personnel, to support the operational, reporting and compliance requirements of being a publicly traded company. The timing and magnitude of these costs will vary based on the pace of our transition activities, evolving regulatory requirements and market practices, and could increase over time as our operations grow or as standards change. While we believe these investments are necessary to support our long-term strategy as a public entity, they will result in higher general and administrative expenses relative to historical periods.

***Corporate Reorganization***

We were formed solely to serve as the issuer in this offering and, other than activities related to this offering, have not conducted any material business operations to date. As a result, the historical consolidated financial statements and other historical financial information included in this prospectus reflect the results of our accounting predecessor, Lea & Eddy Holdings, LLC, and not our results as the post-reorganization public company. The Corporate Reorganization will be effected immediately prior to, and will be conditioned upon, the consummation of this offering. If the offering is not completed, the Corporate Reorganization will not occur. Accordingly, the historical consolidated financial data may not indicate what our results would have been had the Corporate Reorganization been completed at the beginning of the periods presented, nor what our future results are likely to be. See "Corporate Reorganization" for a detailed description of these steps.

Following the Corporate Reorganization, we will be a holding company and the sole managing member of OpCo, consolidating OpCo for financial reporting purposes while initially reflecting a noncontrolling interest for OpCo Units not owned by us. Our structure is commonly referred to as an "Up C," in which public investors hold our Class A shares and thereby an indirect interest in OpCo, while our Existing Owners and the TCW Entities initially hold a majority of OpCo Units paired with our Class B shares. Our and OpCo's capital structures will generally mirror one another to maintain a one-for-one exchange ratio between OpCo Units and our Class A shares. Although organized as a limited liability company, we have elected to be taxed as a corporation for U.S. federal income tax purposes. For additional detail regarding the sequencing of the Corporate Reorganization, our governance rights as OpCo's sole managing member and our post-offering ownership and control, see "Corporate Reorganization" and "Certain Relationships and Related Party Transactions—OpCo LLC Agreement."

Because of this structure, investors should carefully consider the basis of presentation used throughout this prospectus. Unless otherwise indicated, historical financial information reflects our predecessor (L&E), whereas certain pro forma and pro forma, as adjusted information gives effect to the Corporate Reorganization, related contributions and exclusions and this offering as described herein. The timing and magnitude of redemptions or exchanges of OpCo Units for our Class A shares over time will change our relative economic interest in OpCo and the amount of noncontrolling interest reflected in our consolidated financial statements, which may affect the comparability of our future results to historical or pro forma periods. For more information, including the illustrative effects of these transactions, see "Basis of Presentation," "Corporate Reorganization," and our Unaudited Pro Forma Condensed Consolidated Financial Statements included elsewhere in this prospectus.

***Acquisitions***

Concurrently with the completion of this offering, we expect to consummate the L&E Contribution, the DE Flow Contribution and the Shallow Valley Contribution, through which we will acquire significant surface acreage and water infrastructure assets that expand our operating footprint and revenue-generating asset base. These transactions will be accounted for in accordance with applicable GAAP, which may result in recognition of identifiable intangible assets and property, plant and equipment of the accounting acquirees at fair value and could include differences in the timing and classification of

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acquisition-related costs depending on the final accounting conclusion. As a result, our post-offering results will reflect a larger asset base and a different mix of revenues and expenses than those presented in our predecessor's financial statements. See the Unaudited Pro Forma Condensed Consolidated Financial Statements included elsewhere in this prospectus for additional information regarding the DE Flow Contribution and the Shallow Valley Contribution and their pro forma effects.

These acquisitions will impact the comparability of our results of operations across periods. In particular, we expect changes in depreciation and amortization expense associated with the fair value step-up in the carrying value of acquired assets (if applicable), incremental operating and maintenance costs tied to the newly acquired water infrastructure and potential changes in revenue composition and margins as utilization ramps and commercial terms across the combined asset base are harmonized. We may also incur one-time integration and transition-related expenses, including costs to align systems, processes and contracts; rationalize overlapping functions; and implement common safety, environmental and operational standards. Accordingly, results in periods following the consummation of these contributions to us may not be comparable to our historical results. See "Risk Factors," and "—Results of Operations" for discussion of the expected effects on our operating metrics and margins.

We may pursue additional acquisitions of surface acreage and related infrastructure in the future where we believe opportunities are strategic and appropriately priced. Any such transactions could further affect period-to-period comparability due to changes in scale, asset mix, contract profile, capital structure and purchase accounting effects, and could require incremental integration efforts and costs. The timing, size, structure and financing of any acquisitions will depend on market conditions, availability of suitable targets and our capital allocation priorities. See "Risk Factors—Risks Related to Our Business and Operations" and "—Pro Forma Liquidity and Capital Resources" for additional information about acquisition-related risks and financing consideration.

***EagleRock Credit Facility***

We anticipate that we will repay in full, and terminate, the Predecessor Credit Facility promptly following this offering, and enter into Credit Facility, which will result in a reduction in the amount of our outstanding indebtedness and a change in our borrowing costs relative to those of our predecessor. See "Pro Forma Liquidity and Capital Resources—Pro Forma Debt Instruments—EagleRock Credit Facility" for more information.

***Long Term Incentive Plan***

In order to incentivize individuals providing services to us or our affiliates, we expect that our board of directors will adopt an LTIP, which will become effective upon the consummation of this offering, for employees and directors. Any individual who is our officer or employee or an officer or employee of any of our affiliates, and any other person who provides services to us or our affiliates, including our directors, may be eligible to receive awards under the LTIP at the discretion of our board of directors or a committee thereof, as applicable. We anticipate that the LTIP will provide for the grant, from time to time, at the discretion of our board of directors, or a committee thereof, of options, share appreciation rights, restricted shares, restricted share units, share awards, dividend equivalents, other share-based awards, cash awards, substitute awards and performance awards intended to align the interests of employees, directors and service providers with those of our shareholders. As such, our historical financial data may not present an accurate indication of what our actual results would have been if we had implemented the LTIP program prior to the periods presented within this prospectus. For more information about our LTIP, see "Executive Compensation—Additional Narrative Disclosure Regarding Executive Compensation Matters."

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***Income Taxes***

Prior to this offering, we and our subsidiaries were primarily entities that were treated as partnerships for federal income tax purposes but were subject to certain minimal Texas franchise taxes.

As a result of our predominantly non-taxable structure historically, income taxes on taxable income or losses realized by the predecessor were generally the obligation of the individual members or of our predecessor. Accordingly, the financial data attributable to the predecessor contains no provision for U.S. federal income taxes or income taxes in any state or locality (other than margin tax in the State of Texas). Although we are a limited liability company, we have elected to be taxed as a corporation and will be subject to U.S. federal income taxes. We estimate that we will be subject to U.S. federal income taxes at a blended statutory rate of % of pre-tax earnings and would have incurred pro forma income tax expense of $ million for the year ended December 31, 2025.

**Pro Forma Liquidity and Capital Resources** 

***Overview***

We intend to contribute all of the net proceeds from this offering to OpCo in exchange for newly issued OpCo Units. OpCo intends to use the net proceeds from this offering (i) to repay in full, and terminate, the Predecessor Credit Facility, (ii) to distribute approximately $ to our Existing Owners and (iii) for general corporate purposes. Following the completion of this offering, we expect our liquidity needs to be met primarily through cash flows from operations and borrowings under the Credit Facility. Our key liquidity requirements are expected to include cost of sales and general and administrative expenses. We currently believe that cash on hand following this offering, together with cash flows from operations, will be sufficient to fund such items as well as our capital expenditures, working capital and other capital requirements over both the short and long term. While we expect to rely on these sources to support our operations, we may also utilize borrowings under our Credit Facility to fund certain operating or investing activities.

We aim to preserve financial flexibility and regularly evaluate potential capital sources, including equity and debt financing, to support our liquidity objectives and capital needs over the longer term. Adverse changes in market conditions, such as a material decline in revenues or an increase in operating costs, could reduce our cash flows and liquidity and may require us to pursue additional financing alternatives.

***Pro Forma Capital Requirements***

We believe that maximizing the efficient utilization and cash flow generation of our assets is critical to create long-term value for our shareholders. Under our long-term commercial agreements, the cost of developing our land and operating the assets we own interests in is primarily borne by our customers and our operating partners, allowing us to deploy little to no capital of our own while benefitting from the increasing use of our land, assets and resources to create Free Cash Flow. Over time, subject to market conditions, board approval and other factors, we intend to prioritize returning capital to shareholders through dividends and/or opportunistic share repurchases while maintaining capacity to pursue high-return growth opportunities. We intend to maintain a prudent financial profile to preserve strategic flexibility. Our asset-light model allows us to support customer activity without large upfront capital requirements. Our strategy will continue to focus on growing our land footprint, a non-depreciable asset, with significant economic cash flow generation for multiple years. We believe maintaining balance sheet discipline positions us to act opportunistically in a basin where surface access, water logistics rights and right-of-way control are increasingly valuable to operators. As a

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landowner, we incur the initial capital investment cost to acquire our acreage, but thereafter we incur modest development capital expenditures and operating expenses as they relate to operations on our land or our sale of our resources, as such expenses are transferred to or borne primarily by our customers and operating partners. As a result, our capital investment strategy will focus on the acquisition of additional surface acreage that is complementary to our business.

The level and allocation of our future acquisition-related capital investments will depend on various factors, including the size and timing of potential acquisition opportunities, cash flows from operating activities and our investing and financing decisions.

While we believe that our cash on hand, together with cash flows from operating activities and borrowings under our Credit Facility, will be sufficient to support the execution of our current strategy, our ability to generate cash is influenced by numerous factors, many of which are outside our control, including commodity prices and broader economic, financial, competitive, legislative and regulatory conditions. If additional capital is needed for acquisitions or other purposes, we may seek to obtain it through other borrowings, the issuance of debt or equity securities or other financing alternatives. Should we be unable to secure financing when required or on acceptable terms, we may be limited in our ability to pursue attractive acquisition opportunities.

If and when our board of directors declares cash dividends to our shareholders, we currently anticipate funding any such dividends with Free Cash Flow. We do not expect to borrow funds or alter our planned capital reinvestment to finance dividends on our shares. The timing, amount and method of financing any dividends will be determined at the discretion of our board of directors following this offering. See "Dividend Policy."

***Pro Forma Debt Instruments***

*EagleRock Credit Facility* 

We plan to use a portion of the proceeds from this offering to repay all borrowings outstanding under, and terminate, the Predecessor Credit Facility.

In connection with the closing of this offering we expect that OpCo and certain of our other subsidiaries will enter into the Credit Facility providing a $200.0 million revolving credit facility which matures on , 2031. The Credit Facility is administered by JPMorgan Chase Bank, N.A., as administrative agent. Our Credit Facility is secured by a first-priority lien on substantially all of the assets of OpCo and the Guarantors, including equity interests in our subsidiaries, subject to customary exceptions and exclusions, and is guaranteed by all material existing and future direct and indirect wholly owned domestic subsidiaries of OpCo. Our Credit Facility includes an accordion feature providing for up to $100.0 million of additional commitments, a letter of credit sublimit of $10.0 million and customary conditions to borrowing.

Outstanding borrowings under our Credit Facility accrue interest at a rate based on the secured overnight financing rate ("SOFR"), plus an applicable margin. Borrowings under our Credit Facility accrue interest based on a four-tiered pricing grid tied to our net total leverage ratio as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the net total leverage ratio is greater than 3.00x, the applicable margin will be 3.00% and the commitment fee on
undrawn amounts will be 0.50%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the net total leverage ratio is less than 3.00x, the applicable margin will be 2.75% and the commitment fee on undrawn
amounts will be 0.50%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the net total leverage ratio is less than 2.50x, the applicable margin will be 2.50% and the commitment fee on undrawn
amounts will be 0.375%; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the net total leverage ratio is less than 2.00x, the applicable margin will be 2.25% and the commitment fee on undrawn
amounts will be 0.375%.

Subject to certain exceptions and materiality qualifiers, our Credit Facility includes certain customary affirmative and negative covenants, which, among other things, restrict our ability and our restricted subsidiaries' ability, subject to certain exceptions, to incur debt, grant liens, make restricted payments and investments, issue equity, sell or lease assets, dissolve or merge with another entity, enter into transactions with affiliates or restrictive agreements, change our business, prepay debt and amend our organizational and material agreements.

Our Credit Facility allows us to make restricted payments, including cash dividends to our shareholders, so long as (i) no default or event of default exists or would result therefrom, (ii) the pro forma net total leverage ratio is less than 3.00x and (iii) pro forma liquidity (defined as cash plus availability under our Credit Facility) is equal to or greater than $50.0 million.

In addition, we are required to comply with the following financial maintenance covenants: (i) a maximum net total leverage ratio of no greater than 3.50x (with maximum cash netting of up to $25.0 million if any loans are outstanding; if no loans are outstanding, all unrestricted cash and cash equivalents on the balance sheet of OpCo and its restricted subsidiaries); and (ii) a minimum interest coverage ratio of at least 2.75x.

Our Credit Facility contains customary events of default, including for our failure and the failure of other loan parties to comply with the various financial, negative and affirmative covenants under our Credit Facility (subject to the cure provisions set forth therein). During the existence of an event of default (as defined under our Credit Facility), the administrative agent, with the consent of or at the direction of the required lenders thereunder, has a right to, among other available remedies, terminate the commitments and/or declare all outstanding loans and accrued interest and fees under our Credit Facility to be immediately due and payable.

**Predecessor Results of Operations** 

***Factors Affecting the Comparability of Our Results of Operations***

*Acquisitions* 

In April 2024, we consummated the acquisition of 100% of the equity interests of Desert Ram South Ranch, Inc. (f/k/a NGL South Ranch, Inc.) and Desert Ram North Ranch, LLC (f/k/a NGL North Ranch, LLC) (such acquisition, the "Desert Ram Acquisition"). We acquired approximately 122,000 acres (of which 14,000 acres consist of fee acreage, while the remaining are leased acres from the State of New Mexico and the BLM) in Lea County and Eddy County, New Mexico.

In April 2025, we consummated the Accelerated Acquisition. Through its subsidiaries, Accelerated owns certain parcels of land or surface acreage with an aggregate of approximately 72,000 acres (of which 23,000 acres consist of fee acreage while the remaining are leased acres from the State of New Mexico and the BLM) in Lea County, New Mexico.

Substantially all of the predecessor's results of operations were generated from its activities in New Mexico.

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***Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Predecessor** | **Predecessor** | **Predecessor** | **Predecessor** |
|  | **For the Year<br>Ended<br>December 31,** | **For the Year<br>Ended<br>December 31,** | **Variance** | **Variance** |
|  | **2024** | **2025** | **Amount** | **Percent** |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
|  **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Water sales | $12346 | $55708 | $43362 | 351.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface and other revenues | 5355 | 16465 | 11110 | 207.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | $17701 | $72173 | $54472 | 307.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | $8311 | $31070 | $22759 | 273.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 2798 | 10069 | 7271 | 259.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 3944 | 14984 | 11040 | 279.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plants and equipment, net | (4954) | (2067) | 2887 | (58.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | $10099 | $54056 | $43957 | 435.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating Income (Loss)** | $7602 | $18117 | $10515 | 138.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense—related party | (8703) | (21185) | (12482) | 143.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt |  | (70001) | (70001) | nm |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from operations before taxes** | $(1101) | $(73069) | $(71968) | 6536.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | (26) | $2 | $28 | (107.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss)** | $(1075) | $(73071) | $(71996) | 6697.3% |

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***Water Sales.*** Water sales increased by $43.4 million in the year ended December 31, 2025, as compared to the year ended December 31, 2024, consisting of a $19.9 million increase in recycled water sales, $16.8 million of incremental revenue from the Accelerated Acquisition, a $2.7 million increase in brackish water sales (excluding the impact of the Accelerated Acquisition) and an additional $4.0 million of water transfer and logistics revenue charged to customers for the delivery of water to locations different from the point of sale. The increase in water sales was largely driven by an increase in total water volume sold, incremental revenue associated with the Accelerated Acquisition and a full year of revenue activity related to our Desert Ram Acquisition. Total water sold increased by over 250% to approximately 73 MMBbls for year ended December 31, 2025, as compared to the year ended December 31, 2024, which was driven primarily by the sale of 100% of our commercial water allotment, an over 300% increase in recycled water barrels sold to our customers and additional brackish water volume sourced off-ranch from third-party brackish water suppliers.

***Surface and Other Revenues.*** Surface and other revenues increased by $11.1 million in the year ended December 31, 2025, as compared to the year ended December 31, 2024, largely driven by $6.4 million of incremental revenue from the Accelerated Acquisition, which includes $3.2 million of incremental land use revenue relating to access road and easement use and damages easement from customer activities and $1.8 million of surface use royalties from salt-water disposal wells on the Accelerated ranches. Surface and other revenues increase was also driven by a $1.8 million increase in land use revenue, a $1.8 million increase in caliche sales and a $1.0 million increase in surface use royalties, each excluding the impact of the Accelerated Acquisition. These changes were largely attributable to increased customer activity levels on our land and a full year of revenue from the Desert Ram Acquisition.

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***Cost of Sales.*** Cost of sales (exclusive of depreciation and amortization) increased by $22.8 million in the year ended December 31, 2025, as compared to the year ended December 31, 2024, consisting of a $9.4 million increase in the cost of water purchased and treated driven by higher volumes of recycled water and brackish water sourced from third-party suppliers, a $6.1 million increase attributable to the Accelerated Acquisition, a $2.9 million increase of third-party logistics costs incurred for water transfer and logistics to our customers, and $2.6 million increase in equipment costs and employee labor in connection with water handling and logistics. The increase in cost of sales was primarily due to higher customer activity levels on our land resulting from increased demand for our resources and increased cost levels following the expanded growth in our surface acreage and operations from the Accelerated Acquisition during the year 2025.

***General and Administrative Expense.*** General and administrative expenses increased by $7.3 million in the year ended December 31, 2025, as compared to the year ended December 31, 2024, consisting of a $3.7 million increase in professional fees and a $3.6 million increase in employee-related costs and other general and administrative expenses. The increase in professional and transaction expenses was primarily related to costs incurred in connection with our initial public offering, the Accelerated Acquisition and the Desert Ram Acquisition. The increase in employee-related costs and other general and administrative expenses was related to growth of our company following the Accelerated Acquisition in 2025. Our headcount increased by approximately 12 employees as part of the Accelerated Acquisition.

***Depreciation and Amortization Expense.*** Depreciation and amortization expense increased by $11.0 million in the year ended December 31, 2025, as compared to the year ended December 31, 2024, consisting of a $9.0 million increase attributable to assets acquired in the Accelerated Acquisition, a $2.0 million increase driven by a full year of expense from the Desert Ram Acquisition and additional fixed asset purchases during the period. We incurred additional capital expenditures to expand our water storage facilities to support the maintenance of certain water storage facilities and caliche pits.

***Interest Expense.*** Interest expense increased by $12.5 million in the year ended December 31, 2025, as compared to the year ended December 31, 2024. The increase was primarily attributable to debt activity associated with the Desert Ram Acquisition and the Accelerated Acquisition. In 2024, we funded the Desert Ram Acquisition with a $72.0 million term loan and in 2025, we upsized our debt by $204.0 million to fund the Accelerated Acquisition. See "—Predecessor Liquidity and Capital Resources" for additional information regarding our debt instruments and interest expense.

***Loss on Extinguishment of Debt.*** There was no loss on extinguishment of debt during the year ended December 31, 2024. The loss on extinguishment of debt for the year ended December 31, 2025 relates to the upsize of our Predecessor Credit Facility in connection with the Accelerated Acquisition.

**Predecessor Liquidity and Capital Resources** 

***Overview***

Historically, our principal sources of liquidity have included borrowings under the Predecessor Credit Facility as well as capital contributions from our various equity owners. Our predecessor was formed on December 7, 2023, and has made two major acquisitions, the Desert Ram Acquisition and the Accelerated Acquisition. Our predecessor funded these acquisitions with borrowings under the Predecessor Credit Facility. See "—Predecessor Credit Facility." Other than the Desert Ram Acquisition and the Accelerated Acquisition, our predecessor's business required a minimal amount of capital expenditures and was able to support operations with cash on hand.

As of December 31, 2025, our predecessor's working capital, calculated as current assets minus current liabilities, was $14.1 million, and we had cash and cash equivalents of $9.0 million.

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***Predecessor Cash Flows***

The following table summarizes our cash flow for the periods indicated:

***Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Predecessor** | **Predecessor** | **Predecessor** | **Predecessor** |
|  | **For the Year Ended**<br>**December 31,** | **For the Year Ended**<br>**December 31,** | **Variance** | **Variance** |
|  | **2024** | **2025** | **Amount** | **Percent** |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
|  **Consolidated Statement of Cash Flow Data** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | $907 | $14138 | $13231 | 1458.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (64556) | (204963) | (140407) | 217.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 64711 | 199090 | 134379 | 207.7% |
|  **Net increase (decrease) in cash and cash equivalents** | $1062 | $8265 | $7203 | 678.2% |

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***Net Cash Provided by Operating Activities.*** Net cash provided by operating activities increased by $13.2 million to $14.1 million for the year ended December 31, 2025, as compared to $0.9 million for the year ended December 31, 2024. The increase was primarily attributable to a net change in accounts receivable of $16.4 million as a result of increased activity levels and growth in our business following the Accelerated Acquisition. This increase was partially offset by a net decrease of $1.1 million in net income, net of non-cash items, and a $1.4 million decrease in cash flows from working capital accounts for the year ended December 31, 2025, compared to the year ended December 31, 2024.

***Net Cash Used in Investing Activities.*** Net cash used in investing activities increased by $140.4 million to $205.0 million for the year ended December 31, 2025, as compared to $64.6 million for the year ended December 31, 2024. Cash used for acquisitions during the year ended December 31, 2024 was approximately $68.4 million, related to the Desert Ram Acquisition, compared to $191.7 million in the year ended December 31, 2025, related to the Accelerated Acquisition and an $8.0 million deposit made in connection with a prospective acquisition of surface acreage, grazing leases and related water rights. Capital expenditure increased from approximately $1.2 million in the year ended December 31, 2024 to $5.3 million in the year ended December 31, 2025. Capital expenditures in the year ended December 31, 2025 included the installation of water storage ponds as well as maintenance of certain assets acquired in the Accelerated Acquisition. The net change in proceeds from the sale of property, plant and equipment is driven by a $5.0 million divestiture of certain parcels of land during the year ended December 31, 2024.

***Net Cash Provided by Financing Activities.*** Net cash provided by financing activities increased by $134.4 million to $199.1 million for the year ended December 31, 2025, as compared to $64.7 million for the year ended December 31, 2024. The increase in net cash from financing activities was driven by increased borrowings under our Predecessor Credit Facility. We borrowed $72.0 million during the year ended December 31, 2024 to fund the Desert Ram Acquisition, and upsized our debt by an additional $204.0 million during the year ended December 31, 2025 to fund the Accelerated Acquisition. Proceeds from the Predecessor Revolver (as defined below) also increased from $3.9 million during the year ended December 31, 2024 to $11.8 million during the year ended December 31, 2025, primarily driven by our working capital needs and deposits for strategic acquisitions. Our cash proceeds from borrowings were partially offset by higher debt issuance costs of approximately $6.6 million during the year ended December 31, 2025, compared to $3.5 million during the year ended December 31, 2024, as well as $23.8 million of debt repayments during the year ended

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December 31, 2025, compared to $7.7 million during the year ended December 31, 2024. Additionally, during the year ended December 31, 2025, our predecessor received approximately $14.0 million in proceeds from the issuance of common units.

***Predecessor Capital Requirements***

During the years ended December 31, 2024 and 2025, our predecessor invested approximately $68.4 million and $191.7 million, net of cash acquired, in connection with the Desert Ram Acquisition and Accelerated Acquisition, respectively. During the years ended December 31, 2024 and 2025, our predecessor incurred approximately $1.2 million and $5.3 million in capital expenditures for corporate office furniture and equipment as well as for installing and maintaining the modest assets we own on our land.

***Predecessor Credit Facility***

On April 4, 2024, certain subsidiaries of our predecessor entered into a 5-year financing agreement that included a $72.0 million term loan and a revolving credit facility (as amended, the "Predecessor Revolver") with a maximum borrowing base of $5.0 million, both of which mature on April 4, 2029 (as amended, the "Predecessor Credit Facility"). Upon entering into the Predecessor Credit Facility, we borrowed $72.0 million under the Predecessor Credit Facility and $3.9 million under the Predecessor Revolver. Net proceeds from these borrowings were used to pay the purchase price in the Desert Ram Acquisition and support our working capital needs. On February 28, 2025, we amended the Predecessor Credit Facility to increase maximum borrowing base by $7.5 million. On April 14, 2025, in order to fund a portion of the purchase price of the Accelerated Acquisition, we further amended the Predecessor Credit Facility, to increase the maximum Term Loan borrowing base by an additional $204.0 million term. The Predecessor Credit Facility is secured by a first priority lien and security interest in all assets of the predecessor.

The Predecessor Credit Facility includes certain affirmative and restrictive covenants common in such agreements. See "Note 6—Long Term Debt—Related Party" within the notes to our predecessor's consolidated financial statements and included elsewhere in this prospectus for further information with respect to such affirmative and restrictive covenants.

The Predecessor Credit Facility is fully and unconditionally guaranteed by the predecessor. Borrowings under the Predecessor Credit Facility bear interest at the secured overnight financing rate ("SOFR"), plus the applicable margin or certain reference rate, plus the applicable margin, which is set at 8.0%—8.5% depending on the applicable leverage ratio for the most recent four consecutive quarters. Principal amounts borrowed under the Predecessor Revolver may be repaid from time to time without penalty. Any principal amounts outstanding on the maturity date, July 3, 2027, become due and payable on such date. Borrowings under the Predecessor Credit Facility are secured by a first priority lien and security interest in all assets of the predecessor.

As of December 31, 2025, we had $265.6 million of total outstanding borrowings consisting of $7.0 million of revolving credit borrowings and $258.6 million of term loan borrowings and excluding $35.1 million of unamortized premium. The weighted average interest rate on the total amount of borrowings outstanding under the Predecessor Credit Facility as of December 31, 2025 was 12.83% in the case of revolving credit borrowings, and 12.81% in the case of term loan borrowings. We are currently in compliance with all affirmative and negative covenants under the facility.

***L&E Warrants***

In connection with its entry into the Predecessor Credit Facility, the predecessor issued the L&E Warrants, which are exercisable for equity interests in our predecessor, to the TCW Entities. In connection with the amendment to the Predecessor Credit Facility in April 2025 referenced above, the

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predecessor issued L&E Warrants to a new creditor and modified the terms of the original L&E Warrants. The net effect of the issuance and modification reduced the total number of L&E Warrants outstanding from 1,001 to 900. See "Note 6—Long Term Debt—Related Party" within the notes to our predecessor's consolidated financial statements and included elsewhere in this prospectus for further information with respect to the warrants. The L&E Warrants are obligations of our predecessor and are not obligations of EagleRock or OpCo. As described in "Corporate Reorganization," in connection with this offering, each TCW Entity will, pursuant to a Warrant Exercise Agreement, exercise a portion of its L&E Warrants and forfeit the remaining portion, which will be irrevocably cancelled, immediately following which (i) L&E will distribute OpCo Units and a corresponding number of Class B shares to the TCW Entities in redemption of the L&E units received in respect of the Exercised Warrants, (ii) each Warrant Agreement will terminate and (iii) each of the Rollover TCW Entities will merge with one or more newly formed subsidiaries of EagleRock and receive one Class A share in exchange for each OpCo Unit (and Class B share) it holds. As a result, the L&E Warrants will no longer be outstanding following this offering, and investors in this offering will not experience dilution from any future exercise of the L&E Warrants.

**Quantitative and Qualitative Disclosure about Market Risk** 

We are exposed to market risks, which include the effects of adverse changes in commodity prices and counter-party and customer credit risks and interest rate risk as described below. The primary objective of the following information is to provide quantitative and qualitative information about our potential exposure to market risks. The term "market risk" refers to the risk of loss arising from adverse changes in commodity prices and counter-party and customer credit and interest rate risk. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures.

***Commodity Price Risk***

A significant portion of our market risk is tied to the prices our customers receive for oil and natural gas produced from or serviced on our land. The market for the use of our land and its resources is indirectly affected by fluctuations in commodity prices, to the extent that such fluctuations influence drilling, completion and production activity, and consequently, the operational levels of our customers in the exploration, production and oilfield services sectors. Realized prices are primarily determined by prevailing oil and natural gas prices in the United States. However, we believe that our largely fee-based and surface use contracts, as well as our strong base of royalty fees support cash flow stability through commodity price cycles. Our commercial agreements are usually multi-year agreements that may contain acreage dedications and annual minimum revenue amounts, insulating us against fluctuations in commodity prices. Additionally, many of our SUAs stipulate that customers who have access to our land are required to use our resources, such as water or caliche, for their operations, further insulating us from fluctuations in commodity prices.

As of December 31, 2025, the Henry Hub spot price of natural gas was $3.35 per MMBtu and the WTI posted price was $57.95 per barrel. Declines in commodity prices can reduce our revenues because they may reduce customer activity levels by limiting the volumes of oil and natural gas that our customers can economically produce or service. We expect these markets to remain volatile, and a substantial or prolonged decline in commodity prices could materially adversely affect our results of operations, cash flows and financial condition.

We do not currently hedge our indirect exposure to commodity price risk. In the future, however, we may enter into derivative instruments, such as collars, swaps and basis swaps, to partially mitigate the impact of commodity price volatility. These hedging arrangements could help reduce, but would not eliminate, the potential effects of fluctuations in oil and natural gas prices on our operating cash flows.

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***Market Risk***

Demand for the use of our land and resources is largely driven by activity levels in the energy industry within the Permian Basin. These activity levels are influenced by numerous factors outside of our control, including the supply of and demand for oil and natural gas; current prices and expectations for future prices; costs associated with exploring, developing, producing and delivering oil and natural gas; rates of decline in existing production; the discovery of new reserves; available pipeline, rail and other transportation capacity; weather conditions; domestic and global economic conditions; political instability both in the U.S. and in oil-producing regions; environmental regulations; technological advances affecting energy consumption; the ongoing transition to a low-carbon economy; the price and availability of alternative fuels; advancements in alternative energy production; the ability of energy companies to secure equity or debt financing; and consolidation, merger and divestiture activity within the energy sector. U.S. energy production, including oil and natural gas development, has historically been volatile.

A prolonged or significant decline in oil and natural gas prices could reduce development and production activity, which in turn may decrease demand for oil and natural gas and the use of our land and resources. Any material reduction in commodity prices or Permian Basin activity could have an adverse impact on our results of operations, cash flows and financial condition.

***Counter Party and Customer Credit Risk***

We are exposed to the risk of financial loss if our counterparties, including our operating partners or customers, fail to fulfill their contractual obligations. Our primary credit risk arises from receivables generated by the activities of our customers and operating partners on our land. The inability or failure of significant customers or our operating partners to meet their obligations, or their insolvency or liquidation, could adversely impact our financial results.

To manage this risk, we assess the creditworthiness of each counterparty and customer and continuously monitor our exposure through credit analysis and monitoring procedures, including reviewing credit ratings, financial statements and payment history. For the year ended December 31, 2025, three customers accounted for 22%, 15% and 11% of our total revenues, respectively. For the year ended December 31, 2024, four customers represented 28%, 14%, 13% and 12% of total revenues, respectively. No other customer accounted for more than 10% of total revenues. Based on these assessments, we believe the credit risk associated with our counterparties and customers is within an acceptable range.

***Interest Rate Risk***

Our ability to borrow, as well as the interest rates available to us, may be adversely affected by deterioration in the credit markets or a decline in our credit profile or credit rating. Under our Credit Facility, any outstanding borrowings accrue interest based on the SOFR, plus an applicable margin, which exposes us to interest rate risk on any outstanding borrowings.

As of December 31, 2025, our predecessor had $265.6 million of total outstanding borrowings, consisting of $7.0 million in revolving credit borrowings and $258.6 million in term loan borrowings and excluding $35.1 million of unamortized premium. The weighted average interest rate on these borrowings was 12.83% for the revolving credit borrowings and 12.81% for the term loan borrowings. Assuming no change in the principal amount outstanding, a 1% increase or decrease in the weighted average interest rate would impact interest expense by approximately $2.7 million annually. We do not currently have, and do not plan to enter into, any derivative instruments to hedge against fluctuations in interest rates applicable to our outstanding debt. See "—Predecessor Credit Facility."

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**Critical Accounting Estimates** 

The preparation of our financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. We consider certain accounting estimates to be critical because they involve significant judgment and have the potential to materially impact our financial results if the underlying assumptions change. For additional information, see "Note 2—Summary of Significant Accounting Policies" within the notes to our predecessor's consolidated financial statement and included elsewhere in this prospectus for further information with respect to our accounting policies.

*Business Combinations* 

We account for business combinations using the acquisition method of accounting, whereby the identifiable assets and liabilities of the acquired business, including contingent consideration, as well as any non-controlling interest in the acquired business, are recorded at their estimated fair values as of the date that we obtain control of the acquired business. Any purchase consideration in excess of the estimated fair values of the net assets acquired is recorded as goodwill. Significant estimates may be used to determine the fair value of assets acquired and liabilities assumed. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisitions, as additional information about conditions existing at the acquisition date becomes available.

*Warrants* 

The Company accounts for the warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. The determination of the fair value of the warrants at issuance and each reporting period is performed using a third-party valuation specialist and is subject to a variety of estimates.

*Impairment of Long-lived assets* 

Management evaluates property, plant and equipment and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Asset groups are identified at the lowest level for which cash flows are largely independent. The recoverability assessment compares the carrying amount of the asset group to the expected undiscounted future cash flows. If the carrying amount is not recoverable, we measure the impairment loss as the excess of the carrying amount over the asset group's estimated fair value.

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***Recently Issued Accounting Pronouncements***

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280). This guidance requires a public entity, including entities with a single reportable segment, to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. This ASU was effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of this update did not have a material impact on our financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). This guidance further enhances income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We have adopted this guidance and the adoption did not have a material impact on its consolidated financial statements or related disclosures.

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"). The guidance in ASU 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

**Internal Controls and Procedures** 

We are not currently required to comply with the SEC's rules implementing Section 404 of the Sarbanes-Oxley Act and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. Upon becoming a reporting issuer, we will be required to comply with the SEC's rules implementing Section 302 of the Sarbanes-Oxley Act, which will require our management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of our internal control over financial reporting. We will not be required to make our first assessment of the effectiveness of our internal control over financial reporting under Section 404 until our second annual report on Form 10-K after we become a public company.

Further, our independent registered public accounting firm is not required to attest to the effectiveness of our internal controls over financial reporting and will not be required to do so for as long as we are an "emerging growth company" and/or a "smaller reporting company" under applicable federal securities laws. Please see "Summary—Emerging Growth Company and Smaller Reporting Company Status" for more information.

**Off Balance Sheet Arrangements** 

We currently have no material off-balance sheet arrangements.

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**BUSINESS** 

**Our Company** 

Access to land, resources and infrastructure is fundamental for critical industries like energy and technology to thrive. We are a land management company that owns or controls approximately 236,000 acres in the heart of the Delaware and Midland sub-basins within the prolific Permian Basin. In addition, we have an interest in up to approximately 70,000 acres pursuant to an acreage dedication related to our Midland Basin water infrastructure assets. Our acreage is vital to the efficient development of oil and natural gas resources in the Permian Basin and is strategically located to support the growing surface, resource, infrastructure and related commercial development needs of the power and other emerging industries in the Permian Basin.

Our assets are situated in the most active oil and natural gas development and production areas in Texas and New Mexico. The Permian Basin is regarded as the premier region for oil and gas development due to its prolific remaining resource, low break-even costs and robust network of service and infrastructure companies that support oil and gas development. The depth and quality of the remaining resource has attracted large, public and well-capitalized producers who have largely consolidated the core of the Midland and Delaware sub-basins. In turn, the abundance of economic and highly reliable energy has underpinned a number of emerging industries within the Permian Basin, including traditional and renewable power generation, transmission and storage and data centers. Our strategically located portfolio of assets provides the land and ability to construct infrastructure required for producing oil and natural gas, as well as supporting these emerging industries, which we believe will support growing and enduring revenue streams and cash flow.

Our assets are uniquely tailored to meet the needs of our customers in the distinct regulatory and operational environments in each sub-basin of the Permian Basin. Our Delaware Basin acreage sits in productive development corridors in the Permian Basin and supports water supply for drilling activity and produced water offtake, handling and recycling services to support the emerging beneficial reuse markets, generating activity-based revenue streams and royalties tied to recycled water. This position also provides abundant pore space capacity for AGI, helping our customers mitigate the potential impact of local sour gas refining constraints and reducing flaring required by operators. In the Midland Basin, where geologic conditions are more favorable and regulatory conditions are more consistent for subsurface produced water disposal, we have valuable pore space capacity for produced water disposal in areas not affected by seismicity and over-pressurization concerns. Our acreage may also support future CO<sub>2</sub> pipeline development in conjunction with our pore space, which is well suited for large scale CCUS. Our Midland Basin assets also include one of the largest produced water handling and disposal systems in the Permian Basin that, under a long-term agreement with DEF Operating, an affiliate of Double Eagle, one of our operating partners, underpins our ability to monetize produced water handling, disposal, recycling and beneficial reuse activities across our footprint.

We seek to create value for our shareholders by growing and diversifying our revenue streams through a proven strategy of organic growth and accretive land acquisitions that complement our strategy, strengthen our competitive advantages and provide opportunities for our experienced management team to drive incremental organic growth. Our proactive land management strategy has driven organic growth by supporting the full life cycle of oil and gas operations, including drilling, completion, production, offtake, treatment, processing and handling and responsible waste management and disposal activities, to enhance efficient oil and gas development with minimal operating costs or capital expenditures by us. We intend to apply this same proactive approach to attract development by emerging industries on our land. We also seek to grow organically through the expansion of existing infrastructure and operations carried out on our acreage, as well as through the identification and exploitation of new and novel uses of our land to attract new customers and strategic

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partners. In turn, existing and additional development on our land augments our ability to attract further incremental activities and uses, as new customers are able to utilize existing infrastructure.

Our land holdings benefit from a number of strategic contractual arrangements that provide durable revenue streams and consistent demand from our customers. These agreements are characterized by long tenors, minimum payment obligations, minimum use commitments, inflation-linked fee escalators and exclusivity provisions. For example, we are party to SUAs with a number of customers that have operations on our land. Our SUAs typically include 5 to 10-year initial terms, subject to renewal, and provide us with a fee when the SUA is executed, fixed monthly or annual fees that typically escalate annually based on CPI, and often include additional fees at the beginning of each renewal period. Our SUAs also typically include pre-defined terms for additional fees that we will receive for our customers' development and use of drilling sites, new and existing roads, pipeline easements and electric transmission easements. Many of our SUAs require our customers to use ROWs and easements on our land as well as the resources from our land, such as water and caliche, for their operations on our land, for which we receive additional fees. Production of oil and natural gas from the reservoirs underlying our land is expected to continue for many decades and, as a result, we expect these contracts to be renewed for an extended period of time. Furthermore, our SUAs typically include provisions that require our customers to remove their assets from and remediate our land if such agreements are not renewed, providing an incentive for our customers to continue to renew their existing agreements with us.

In addition, our Midland Basin assets include the DE Flow System from which we will generate royalty revenues from the activities of our operating partner, DEF Operating, under the DE Flow WSMA, which we will enter into in connection with this offering. The DE Flow WSMA will have an initial 10-year term, include a minimum annual royalty commitment, and will be supported by the DE Acreage Dedication. Our produced water infrastructure is capable of handling up to approximately 400 MBbls/d of produced water under long-term contracts, and includes produced water gathering systems, SWDs, water sourcing and delivery pipelines and recycling facilities.

In connection with this offering, we will also enter into the Hydrosource Recycling Agreement with Hydrosource, our other operating partner, pursuant to which we will receive a royalty for, among other things, each barrel of produced water Hydrosource treats and recycles for oil and gas customers on our land and within certain designated areas outside of our land. Under the Hydrosource Recycling Agreement, Hydrosource will provide treated, blended and recycled water to customers across certain parts of our acreage. The Hydrosource Recycling Agreement will have a 10-year term with a five-year minimum royalty commitment. The Company and Hydrosource have access to supplemental off-ranch water, and the Company's surface pipeline has the capacity to move approximately 100 MBbls/d, or approximately 36.5 MMBbls per year, of off-ranch water from Texas to its land in New Mexico. Additionally, Hydrosource is party to the Hydrosource Recycled Water Supply Agreement, as well as other water infrastructure on our land.

As a land management company, we charge fees and royalties based on our customers' usage of our land, assets and resources. The cost of developing our land and operating the assets in which we own interests is primarily borne by our customers and operating partners, allowing us to deploy little to no capital of our own while benefitting from the increasing use of our land, assets and resources. To promote our strategy, we collaborate commercially with our customers to support robust and efficient use of our resources to maximize returns for our shareholders. We generate revenue from multiple sources, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Resource Sales and Royalties:** We receive fees when customers purchase our resources, such as water and caliche mined
from our land for use in their operations. The development of oil and natural gas resources requires significant quantities of water, which are typically

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obtained from commercial water wells or recycling of produced water, as well as caliche for the construction of drilling pads, roads and production batteries. Under many of our SUAs, our customers are required to purchase from us or our operating partners the resources used in their operations at negotiated fees. We source water to fulfill our customers' needs from commercial water wells on our fee lands, our operating partners and other third-party sources. Our commercial water wells in New Mexico, water infrastructure in Texas and off-ranch water from third party sources allow us to produce and sell in excess of 200 MMBbls of water per year. We sell caliche from 29 caliche mines on our land. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Surface Use Royalties and Revenues**: We receive fees when customers use our surface acreage. Under our SUAs, we
charge customers fees for land activity, including the construction of well pads, wellbores, central tank batteries, existing and new roads, electrical infrastructure, buried pipelines and reuse and frac ponds. Under our SUAs, we also generate
revenue from the use of easements and ROWs by our customers. We also expect to generate long-term royalty revenue under the DE Flow WSMA from produced water handling activities in and adjacent to our land in the Midland Basin. Our produced water
handling and disposal infrastructure has multiple SWD wells with significant valuable pore space in more stable geologic areas for the development of additional locations across our Midland Basin assets that our customers will be able to use for
such disposal activities. Through Hydrosource and the Hydrosource Recycling Agreement, we have access to up to 3 MMBbls/d of produced water for treatment and recycling by Hydrosource and sold to customers on and off our land, from which we generate
royalty revenue. We also expect to generate long-term royalty revenue under the DE Flow WSMA through its water supply and recycling activities in and adjacent to our land in the Midland Basin. In addition to generating royalty revenue from
water-related activities, we have also experienced increased demand for our pore space for AGI wells in the Delaware Basin, from which we expect to generate royalty revenue. Our first AGI well is already contracted and projected to commence revenue
activities within the next two years. Our largely contiguous acreage position underpins our ability to capture incremental revenue streams from sand mines, solid waste disposal facilities and other surface optimization opportunities, as well as
serving as a location for development by emerging industries.

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The diagram below depicts the activities that generate certain of our existing and potential future revenue streams and royalties on our surface. We do not currently engage in the activities identified as potential future activities. These activities represent opportunities we may pursue in the future but for which we have no binding agreements, committed capital or definitive development timelines. There can be no assurance that we will pursue any of these activities or that, if pursued, they will generate material revenues. Our ability to pursue these activities is subject to numerous risks and uncertainties, including regulatory approvals, market conditions, customer demand, competition, technological developments and our ability to negotiate favorable commercial terms. See "Risk Factors—Risks Related to Our Business and Operations—We may not be successful in pursuing additional commercial opportunities on our land from non-traditional energy production and other users."

**EagleRock Land Revenue**![LOGO](g37594g63c79.jpg)

Our business model focuses on monetizing our land, resources and water infrastructure assets through the exclusive nature of our SUAs and royalty-based strategy that minimizes our exposure to operating costs and risks and under which our customers and operating partners assume substantially all operating and capital expenditures associated with activities on our land. This structure supports the generation of significant, sustainable Free Cash Flow. The following table summarizes our financial performance for the periods shown:

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| | | | |
|:---|:---|:---|:---|
|  | **Predecessor** | **Predecessor** | **Pro Forma** |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Total revenues | $17701 | $72173 | $|
|  Net (loss) income | (1075) | (73071) |  |
|  Adjusted EBITDA<sup>(1)</sup> | 7350 | 35533 |  |
|  Cash flows from operating activities | 907 | 14138 |  |
|  Capital expenditures<sup>(2)</sup> | (1482) | (5252) |  |
|  Free Cash Flow<sup>(1)</sup> | 5868 | 30281 |  |
|  Acreage at end of period | 122132 | 193875 |  |

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(1) Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See
"Summary—Summary Consolidated Financial and Other Data" and "Summary—Non-GAAP Financial Measures" for more information regarding these non-GAAP measures and reconciliations to the most comparable measures calculated and presented in accordance with GAAP.

(2) Capital expenditures include costs incurred, inclusive of changes in accounts payable related to capital expenditures,
for corporate office furniture and office equipment and costs incurred to install and maintain modest ancillary assets, such as ponds and pits, we own on our land.

**Our Proactive Management Strategy** 

We believe that maximizing the efficient utilization and cash flow generation of our assets is critical to creating long-term value for our shareholders. Our proactive management strategy seeks to optimize the amount of long-term activity utilizing the same surface acreage through our land and SUAs, which entitle us to diverse revenue streams while requiring our customers and operating partners to be responsible for most operating costs and capital expenditures. We actively seek to further our operating partners' and customers' development of our land through the expansion of existing infrastructure and operations carried out on our land, as well as identifying novel uses of our land to attract new customers and strategic partners. Existing and additional development on our land augments our ability to attract further incremental activities as new customers are able to utilize existing infrastructure. We expect to enter into SUAs or similar agreements with new or existing customers for any incremental or novel project on our surface acreage, from which we expect to receive surface use or similar fees and other payments in connection with the use of our land or resources. In addition, we generally do not expect to own or operate any such projects or expect to incur any significant capital expenditures in connection with such projects.

We consistently evaluate opportunities to expand the uses of our land to attract customers across a variety of industries. By entering into agreements with our customers and operating partners, such as the Hydrosource Recycling Agreement and the DE Flow WSMA, our land is utilized to address new and existing customers' needs and monetize our land and resources. For example, these arrangements allow us to scale the existing produced water disposal infrastructure on our land, with the goal of supporting the increasing demands of operators. We recently entered into an AGI and pore space lease and royalty arrangement on our land under which our customer agreed to fund the construction of the AGI wells and lease our pore space in exchange for payment of lease and royalty fees. Additionally, we believe that our large land footprint will allow us to partner with new customers to meet the growing surface, resource, infrastructure and related commercial development needs of the power and other emerging industries in the Permian Basin, which will result in incremental high margin royalty-based cash flows.

**Surface Access to Land and its Resources is Critical to Efficiently Develop Energy Assets** 

Access to land is fundamental to upstream oil and gas development. In addition, oil and gas development and production activities consume and produce large amounts of water and utilize other land resources, such as caliche and sand. During the drilling and completion process, water is used to lubricate and cool the drill bit and remove drilling mud and rock debris. During hydraulic fracturing operations, water is mixed with sand and chemicals and pumped downhole under high pressure to fracture the producing formation. Once a well is completed and begins producing, produced water must be safely and reliably separated, transported and disposed of to maintain production continuity. Using our surface acreage, water and other land resources and produced water infrastructure, we and our operating partners are able to provide the critical resources and infrastructure needed by our customers for the efficient and reliable development of their oil and gas assets in the Permian Basin.

Our land is situated in the prolific Permian Basin, which includes both the Delaware and Midland Basins and is regarded as the premier region for oil and gas development, primarily due to its vast remaining hydrocarbon resources and low break-even costs. Our land sits atop some of the most productive areas in the Delaware and Midland Basins presenting significant oil and natural gas development potential and many decades of remaining inventory for our customers. We believe the location of our land will contribute to durable revenue streams and consistent demand from our customers. The chart below depicts the estimated remaining oil resource and basin resource life of the Delaware Basin, the Midland Basin and other notable basins, according to the U.S. Geological Survey.

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**Basin Resource Life Comparison**![LOGO](g37594g01k96.jpg)

*Source: USGS, Enverus \| Note: (1) Resource Life is calculated by dividing USGS Remaining Resource estimate by the trailing twelve-month production rate for the applicable basin or play. (2) Weighted average of the Resource Life of the Delaware Basin (37 years) and Midland Basin (28 years). (3) 2024/25 USGS Remaining Resource Estimates (MMBbl). (4) Other Rockies includes Powder River Basin, DJ and Uinta basins.* 

Oil and natural gas development in the Permian Basin generates significant and growing volumes of produced water that must be transported, treated, recycled or disposed of to sustain ongoing operations. As activity across the Permian Basin has expanded, produced water volumes have increasingly outpaced available handling and disposal capacity, creating logistical constraints that can impact drilling and completion schedules, operating costs and development efficiency. The chart below illustrates historical and forecasted Permian Basin produced water volumes relative to basin-wide operational handling capacity, underscoring the importance of surface access, infrastructure siting and proximity to disposal and recycling solutions in supporting continued development across the Permian Basin.

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**Permian Basin Water Volumes by Handling Method vs. Operational Produced Water Handling Capacity**![LOGO](g37594g01k99.jpg)

*Source: B3 Insights and Pickering Energy Partners analysis as of June 30, 2025. \| Note: Assumes a 20% decrease in basin-wide operational produced water handling capacity to account for logistical inefficiencies within the Permian Basin. Based on the 2023-2024 average number of new produced water handling facilities per year. Sub-plays are limited to two total produced water handling facilities and shallow production wells per section, and there are assumed to be no new shallow production wells drilled. Assumes zero new deep production wells will be drilled.* 

As depicted below, our land in the Delaware and Midland Basins sits atop multiple layers of stacked oil and natural gas formations, presenting significant oil and natural gas development potential and many decades of remaining inventory for our customers. These horizons represent decades of undeveloped energy resources. Successful and efficient development of these resources will be dependent on access to our land, resources and infrastructure, which allows operators to efficiently drill and complete new wells and manage high-volume produced-water throughput from those wells. We believe that our portfolio of land, resources and infrastructure will allow us to capture significant revenues through the life cycle of our customers' oil and gas wells.

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**Delaware Basin Subsurface Diagram Midland Basin Subsurface Diagram**

![LOGO](g37594g60w51.jpg)

*Source: Enverus \| Note: WOR = Water to Oil Ratio. This ratio compares the amount of produced water relative to the amount of produced oil.* 

In addition to the large quantities of water needed during drilling and completion of a well, the production phase, which spans multiple years, requires significant produced water handling and disposal infrastructure to safely and reliably separate, transport and dispose produced water in order to maintain production continuity. The oil produced in and around our Midland Basin acreage is accompanied by significant volumes of produced water, averaging approximately 4 barrels of water per barrel of oil, or approximately 80% of total liquids produced from a typical well, according to the NMOCD. This water must be reliably handled in order for these wells to be brought online and remain in production, driving ongoing demand for water handling on acreage in close proximity to the operations of producers. We believe that our land resources and produced water infrastructure are well-situated to handle these large volumes of produced water.

Our produced water handling and disposal infrastructure is operated by our operating partner, DEF Operating, and underpinned by a minimum annual royalty commitment under a long-term contract with a 10-year initial term. Our produced water infrastructure is largely located in the Midland Basin, which benefits from a consistent and favorable regulatory environment and advantaged geologic conditions as compared to the Delaware Basin. Development of produced water disposal wells is regulated at the state level and is required to meet guidelines imposed by the relevant state agencies. Because the Delaware Basin is situated across the Texas–New Mexico state border, the planning, permitting and building of produced water infrastructure is dependent upon the laws and regulations of either Texas or New Mexico. Inconsistent regulations governing produced water reinjection between Texas and New Mexico have resulted in the transmission of significant quantities of produced water from New Mexico to reinjection locations in Texas, which has led to pore space constraints and geologic issues, such as seismicity and over-pressurization, in certain areas of the Texas Delaware

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Basin. Meanwhile, the Midland Basin's location entirely in Texas provides a consistent regulatory environment in addition to advantaged geologic characteristics, which results in a more evenly distributed system for reinjecting produced water across the Midland Basin. Our Midland Basin acreage is located in areas with abundant pore space, low seismicity and reduced over-pressurization concerns, and we believe that the combination of favorable geological characteristics and a consistent regulatory environment complements our existing, permitted and future produced water disposal assets.

At the same time, through our Hydrosource Recycling Agreement, we will facilitate our customers' sustainability goals through providing treated, blended and recycled water for their operations. Through the Hydrosource Recycled Water Supply Agreement, Hydrosource has access to up to 3 MMBbls/d of produced water from one of the largest water disposal company's produced water pipeline system in New Mexico. Through these activities, produced water that would otherwise require reinjection is treated, blended and recycled for further use in our customers' activities. In addition to those activities, as emerging technologies develop, we believe there will be future opportunities for the beneficial reuse of water in residential and municipal, agricultural, industrial and technology, aquifer replenishment and lithium extraction applications, which could provide us with additional revenue opportunities. We evaluate new opportunities on an ongoing basis, and we believe that we are well positioned to take advantage of such opportunities given our extensive infrastructure network.

**Our Assets** 

The map below shows our controlled acreage and selected assets in the Delaware Basin and Midland Basin.

**EagleRock Assets**

![LOGO](g37594g02k01.jpg)

*Source: Enverus, US Department of Transportation* 

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The table below contains information regarding our acreage and assets in each of the Delaware Basin and Midland Basin as of December 31, 2025.

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|:---|:---|:---|:---|:---|:---|:---|
|  | **Combined<br>Acres<br>Owned/<br>Controlled** | **Commercial<br>Water Rights<br>and Supply<br>Capacity<br>(Bbls/y)** | **Current<br>Above<br>Ground<br>Storage<br>Capacity<br>(Bbls)** | **Mining<br>Sites** | **SWDs** | **Produced<br>Water<br>Handling<br>Capacity<br>(MBbls/d)** |
|  Delaware Basin | 193875 | 44337513 | 11375000 | 26 |  |  |
|  Midland Basin | 112261<sup>(1)</sup> | 167802272<sup>(2)</sup> | 16930739 | 3 | 21<sup>(3)</sup> | 400 |

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(1) Includes up to approximately 70,000 acres in which we will have an interest pursuant to an acreage dedication related to
our Midland Basin water infrastructure assets.

(2) Consists of commercial on-ranch water supply of approximately 101,802,272 Bbls
and sourced off-ranch water supply of 66,000,000 Bbls annually.

(3) Total SWDs consist of 3 in-service off-ranch, 4 permitted off-ranch, 13 royalty-only on-ranch, and 1 permitted royalty-only on-ranch.

We own or control approximately 236,000 total surface acres across the Permian Basin, the most active oil and natural gas development and production region in the United States. In addition, we have an interest in up to approximately 70,000 acres pursuant to an acreage dedication related to our Midland Basin water infrastructure assets. We do not own the mineral interests that underlie our surface acreage. Our surface acreage is concentrated in two sub-basins of the Permian Basin, the Delaware Basin in New Mexico and the Midland Basin in Texas. Our critical acreage mass in these prolific sub-basins affords us with broader diversification and optionality to access unique trends in each region while also providing multiple avenues to further grow our platform. Through our land position and integrated infrastructure assets, we generate revenue and royalties from completion and production-based activities, including surface damages, ROWs, easements, commercial water supply and produced water recycling, handling and disposal and other surface and subsurface related activities by leading operators on our owned and controlled acres. As of January 2026, many of the most active operators in the Delaware and Midland Basins were actively drilling or have permits to drill on our surface acreage, including Chevron Corporation, ConocoPhillips Company, Devon Energy Corporation, Diamondback Energy, Inc., Double Eagle, EOG Resources, Inc., ExxonMobil Corporation, Matador Resources Company, Occidental Petroleum Corporation and Permian Resources Corporation. We believe these and other operators have significant remaining inventory of drilling locations to drill on our surface acreage based on information from Enverus.

The table below represents current sources of revenue for our assets in the Delaware and Midland Basins.

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| | | |
|:---|:---|:---|
| **Activity** | **Region** | **Fee / Royalty Type** |
|  **Oil & Gas Drilling and Production** | **Oil & Gas Drilling and Production** | **Oil & Gas Drilling and Production** |
|  Produced and recycled water handling and storage\* | All regions | Fixed fee, volume-based royalty |
|  Water sales\* | All regions, Off-Ranch | Per barrel fee / royalty |
|  Salt water disposal wells | All regions | Volume-based royalty / surface fee |
|  Sour gas treating | Delaware | Volume-based royalty / surface fee |
|  Roads, pads and access easements | All regions | One-time + recurring fee |
|  Caliche | All regions | Cubic yard-based royalty |
|  **Other Land Uses** |  |  |
|  Agricultural grazing leases | All regions | Lease, fixed fee, royalty |
|  Commercial real estate leases | All regions | Lease |

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\* Prior to this offering, produced and recycled water handling and storage have been handled by Hydrosource and DE Flow. Following this offering, water sales handling revenue will be generated through the Hydrosource Recycling Agreement and the DE Flow WSMA. Integrated water handling revenue generated from off-ranch pipeline in the Midland Basin. 

The table below represents selected potential future sources of revenue for our assets in the Delaware and Midland Basins.

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| | | |
|:---|:---|:---|
| **Potential Future Activities\*** | **Region** | **Fee / Royalty Type** |
|  **Oil & Gas Drilling and Production** |  |  |
|  Sand mining | All regions | Per unit royalty |
|  Solid waste disposal | All regions | Royalty |
|  **Other Land Uses** |  |  |
|  Behind the meter power generation | All regions | Lease, royalty |
|  Wind farm leases | All regions | Lease, royalty |
|  Solar farm leases | All regions | Lease, royalty |
|  Battery storage & microgrids | All regions | Lease, royalty |
|  Data centers | All regions | Lease |
|  Transmission lines | All regions | One-time + recurring fee |
|  Beneficial reuse | All regions | Lease, royalty |
|  CO<sub>2</sub> sequestration | All regions | Lease, royalty |
|  Cryptocurrency mining | All regions | Lease, royalty |

---

\* We do not currently engage in the activities identified as potential future activities. These activities represent opportunities we may pursue in the future but for which we have no binding agreements, committed capital or definitive development timelines. There can be no assurance that we will pursue any of these activities or that, if pursued, they will generate material revenues. Our ability to pursue these activities is subject to numerous risks and uncertainties, including regulatory approvals, market conditions, customer demand, competition, technological developments and our ability to negotiate favorable commercial terms. See "Risk Factors—Risks Related to Our Business and Operations—We may not be successful in pursuing additional commercial opportunities on our land from non-traditional energy production and other users." 

**Delaware Basin Assets** 

***Delaware Basin Land***

As of December 31, 2025, we owned or controlled approximately 194,000 acres in and near the core of the Delaware Basin in New Mexico. Our acreage spans across four parcels in Lea and Eddy Counties, New Mexico, which we refer to as the Desert Ram North, Desert Ram South, Limestone and Basin Ranches.

Our Delaware Basin acreage is shown below, together with EUR/ft of producing wells, according to Enverus, as of January 2026. EUR is the total amount of oil and natural gas expected to be recovered over the life of active wells. For comparability purposes, we show EUR/ft because lateral lengths vary, and wells with longer lateral lengths tend to have higher EUR/ft.

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**Estimated Ultimate Recovery (EUR)**<br>![LOGO](g37594g02k03.jpg) <br>*Source: Enverus*<br>

Our Delaware Basin acreage encompasses approximately 37,000 acres of fee land, approximately 64,000 acres of state leased land and approximately 92,000 acres of federal leased land for a total of approximately 194,000 combined acres. This largely contiguous acreage position provides us control to support customers and their operations and allows us to optimize our revenues within the perimeter of the controlled acreage.

Our Delaware Basin land generates revenue primarily by charging fees and royalties for resource sales and surface use and damages. Under our SUAs with operators, substantially all customers that operate on our fee acreage, and in certain instances our controlled surface acres, are obligated to purchase all available resources from us, including water and caliche. In addition, our Delaware Basin acreage has substantial mining operations, including 26 sites for selling caliche and topsoil to various oilfield service providers.

On our Delaware Basin land, we have access to up to 80.8 MMBbls of water per year from various sources. Our commercial water permits with the state of New Mexico permit us to produce and sell up to 44.3 MMBbls of commercial water per year. Our Delaware Basin land possesses a unique geologic water feature under the San Simon Sink, which holds substantial water reserves, and we have an existing lay-flat pipeline from the Texas border to one of our Delaware Basin land positions, along with additional storage infrastructure, that allows us to access an additional 36.5 MMBbls of commercial water per year. Furthermore, we have access to purchase similar off-ranch water volumes from several other suppliers, including the right to obtain up to 3 MMBbls/d of produced water, that may be treated, recycled and

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supplied to customers. Our Delaware Basin land has approximately 11.4 MMBbls of above ground water storage capacity and operates several trucked water stations that can constantly be refreshed from our water wells, helping us maintain efficiency and flowrate to our customers.

Additionally, our Delaware Basin land has a permit for what would be the fourth largest solid waste facility in the Permian Basin with over 21 million cubic yards of capacity, strategically located in an area of the Delaware Basin that has extensive development opportunities and many decades of remaining inventory, which we believe has the potential to drive future organic revenue growth for us. Under our Hydrosource Recycling Agreement, Hydrosource will have the exclusive right for two years following this offering to develop that facility and, if developed, we expect to receive a royalty equal to approximately 10% of the facility's revenues. Furthermore, we believe our Delaware Basin land has a significant amount of commercially potent frac sand in areas proximate to upstream development, thereby reducing transportation costs and associated risks.

Activity on our Delaware Basin acreage has remained resilient and continues to capture a growing share of Lea and Eddy Counties' drilling activity, even as commodity prices have declined. The chart below shows the percentage of total rigs operating in Lea and Eddy Counties that are located on EagleRock acreage each quarter. For example, in the fourth quarter of 2025, approximately 91 rigs were active across Lea and Eddy Counties, of which 20 rigs were operating on EagleRock acreage, representing approximately 22% of total regional activity. Notably, EagleRock's share of active rigs increased from the mid-teens to over 20% during the last four quarters, demonstrating sustained and growing operator activity on our acreage even during commodity price downturns.

**EagleRock Share of Rigs in Lea & Eddy Counties**![LOGO](g37594g02p04.jpg)

*Source: Enverus, EIA* 

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We believe our Delaware Basin land has significant potential for future activity, supported by 558 active horizontal drilling permits from various operators on our controlled acreage. According to NSAI, as of December 22, 2025, approximately 12,743 identified well locations across four formations exist within a 10-mile radius of our surface acreage in our Delaware Basin land. We own approximately 37,000 acres of fee land in New Mexico, and we control approximately 157,000 acres of land through our grazing and mining leases with the State of New Mexico and BLM. Our leasehold interests in New Mexico state lands are generally grazing and mining leases that grant us rights with respect to the surface for periods ranging from one to five years from inception, and are renewable on an annual basis at our discretion. Under New Mexico law, the holder of an easement or right-of-way is required to compensate the lessee for the reasonable value of any measurable damage incurred upon improvements or other property belonging to the lessee. As the agricultural lessee, we have leased possession and use of the grazing interest. When the surface is excavated or occupied by a surface use implemented by a third party, we receive payments to compensate us for the impairment of value and costs to repair the physical damage. Additionally, our leasehold interests in federal lands with the BLM are generally grazing leases that grant us rights with respect to the surface for a period of approximately 10 years from inception. As part of our land management strategy, we leverage our total acreage footprint in driving our resource sales through our SUAs to our customers. Where our SUAs grant exclusive rights for commercial resources over land we control, the terms of those SUAs extend to leased land, and our customers are obligated to purchase resources such as water and caliche from us.

***Delaware Basin Infrastructure***

Our Delaware Basin infrastructure consists of a number of pipelines, pits, ponds and other storage systems used to facilitate our resource sales at strategic points within and around our Delaware Basin acreage. Additionally, our acreage contains significant third-party infrastructure, which facilitates our customers' activity on our land. The map below illustrates our owned and controlled acreage and infrastructure in the Delaware Basin, and other oil and gas activities in the Delaware Basin.

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**EagleRock Delaware Basin Assets**![LOGO](g37594g02p06.jpg)

*Source: Enverus* 

The Delaware Basin is characterized by high water production and high WORs across formations, which results in significantly more produced water as a byproduct of production activities. Produced water originating in New Mexico generally must be transported to reinjection locations in Texas for disposal or recycled for use in drilling and completion activities. Our Hydrosource Recycling Agreement will position us to meet our customers' demand for treated, blended and recycled water through Hydrosource's water recycling infrastructure. Under the Hydrosource Recycling Agreement, we will earn a royalty for each barrel of produced water Hydrosource treats and recycles for oil and gas customers on our land. Our Delaware Basin water infrastructure assets are proximate to areas of high WORs, as depicted in the map below.

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**Water to Oil Ratios in the Delaware Basin**![LOGO](g37594g02k08.jpg)

*Source: Enverus* 

In addition to oil and gas activity, we believe our Delaware Basin land has significant potential for future electricity transmission development, which we believe will attract new customers to our land as access to electricity increases. For instance, Oncor is in the process of developing a 765kV transmission line that is expected to traverse portions of our Delaware Basin acreage, which we anticipate will result in fees for the related easement across our land. In addition, we believe the availability of reliable power connectivity will further expand the uses of our land and allow us to attract new customers. Oncor anticipates the transmission line, if approved by regulators, will be energized by December 2028.

Additionally, the United States Department of Energy is considering designating land that crosses our acreage as the Transmission Corridor. The map below shows the Transmission Corridor's extent in Lea and Eddy County with proximity to our Delaware Basin land. We believe any future development of the Transmission Corridor could significantly increase the value and alternative uses of our surface.

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**EagleRock Delaware Basin Acreage and Transmission Corridor**![LOGO](g37594g02k09.jpg)

**Midland Basin Assets** 

***Midland Basin Land***

As of December 31, 2025, we owned approximately 42,000 acres in the Midland Basin, which is further supplemented by the DE Acreage Dedication. The Midland Basin benefits from a favorable regulatory environment, extensive midstream connectivity and access to power and transportation infrastructure, which, together with its extensive, deep inventory of drilling locations, make the Midland Basin one of the most prolific areas for ongoing energy development and infrastructure investment. Our Midland Basin acreage spans across owned parcels in Martin, Howard, Reagan, Glasscock and Upton Counties in Texas.

Our Midland Basin land generates recurring revenue from long-term SUAs, water resources and produced water handling and disposal, caliche royalties, surface leases and infrastructure easements supporting upstream, midstream, downstream and power development, and it complements our Delaware Basin acreage by adding scale, geographic balance and exposure to geologic formations that are more conducive to produced water reinjection as compared to our Delaware Basin acreage. Our Midland Basin land has approximately 300 MBbls of refresh flowrate per day or approximately 102 MMBbls per year of commercial water, and a water storage capacity of 16.9 MMBbls, including 5.5 MMBbls of off-ranch storage capacity. Our Midland Basin acreage also benefits from its proximity to Midland and Odessa, Texas, its proximity to the Interstate 20 corridor and several contiguous development corridors. Our Midland Basin land hosts critical ROWs, easements and fee tracts that support ongoing pad development, pipeline construction, power transmission and data infrastructure buildout for both energy and industrial applications in Texas.

Our Midland Basin land also hosts wind lease options with a potential combined 379 MW build-out, which would be supported by a base lease rate and royalty structure, with minimum projected lease revenue terms of 36 years. Additional income sources from our Midland Basin land include resource sales to customers operating within a certain mile-radius from our land and incremental royalty revenues from our infrastructure in and adjacent to our Midland Basin land that are operated by our operating partner, DEF Operating.

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***Midland Basin Infrastructure***

Our Midland Basin assets also include water supply and produced water infrastructure in and adjacent to our Midland Basin land. Our infrastructure consists of a number of SWDs, water storage facilities, water wells and water pipelines used to facilitate delivery of water for drilling and completion activities, and the handling and disposal of produced water. Our water infrastructure that is adjacent to our Midland Basin acreage position is operated by one of our operating partners, DEF Operating, from which we receive royalty revenue under a long-term contract with a 10-year term and minimum annual royalty commitments. We also expect to receive royalties from Hydrosource in connection with its recycling of produced water sold in and around our land in the Midland Basin. Our produced water infrastructure, with peak handling capacity of approximately 400 MBbls/d, is strategically located in the Midland Basin, which benefits from access to abundant pore space, a favorable regulatory environment and advantaged geologic characteristics. Our supply water and produced water infrastructure portfolio serves numerous major operators, including large, well-capitalized producers with durable development programs, and is supported by 42,000 of our owned acres and the DE Acreage Dedication. The presence of these operators underscores the strategic importance of our assets and presents opportunities to capture incremental revenue streams as development activity continues.

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The map below illustrates our acreage and material assets in the Midland Basin.

**EagleRock Midland Basin Assets**<br>![LOGO](g37594g24d22.jpg) <br>*Source: Enverus*<br>

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The Midland Basin is also characterized by high levels of water production across formations. While the Midland Basin's primary producing formations generally have lower water production and WORs, its upside formations have comparatively higher water production and WORs, which would result in significantly more produced water as a byproduct of production activities over time. Our produced water handling and disposal infrastructure has multiple SWD wells with significant valuable pore space in more stable geologic areas for the development of additional locations across our Midland Basin assets, which will enable us to meet customers' growing demands for produced water disposal. Our Midland Basin water infrastructure assets are proximate to areas of high WORs, as depicted in the map below.

**Water to Oil Ratios in the Midland Basin**![LOGO](g37594g15k15.jpg)

The Midland Basin is also distinguished by its consistent well productivity. EUR/ft benchmarking highlights Upton and Reagan Counties as among the highest-performing areas in the Permian Basin, with well results that support extended-reach laterals, dense development spacing and multi-zone economic viability across the Spraberry and Wolfcamp formations. Our Midland Basin land is concentrated within these high-quality geologic corridors, positioning us to benefit from continued development activity and long-term inventory depth in one of the most attractive oil-weighted regions in North America. The graphic below depicts the EUR/ft of lateral length from oil and natural gas wells on and near our land position, according to Enverus, as of January 2026.

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**Estimated Ultimate Recovery (EUR)**<br>![LOGO](g37594g01p39.jpg) <br>Source: Enverus<br>

**Our Business Model** 

We focus on royalty-based opportunities with minimal capital expenditure exposure, high margins and minimal operating costs and risks that generate substantial Free Cash Flow, with limited exposure to commodity price changes. Our land management strategy is to actively increase the amount of revenue-generating activities on our land through resource sales, surface and pore space leases and royalties and alternative land uses beyond oil and gas development, underpinned by SUAs with a diversified group of large, well-capitalized producers and customers. We believe our predominantly fee-based SUAs, along with long-term royalty agreements with minimum annual revenue commitments, will facilitate stable cash flows through a variety of commodity price cycles.

**Our Relationship with Our Operating Partners** 

Our relationships with our operating partners, DEF Operating and Hydrosource, allow us to focus on our land management strategies while we continue to realize the benefits of the available resources and long-term development opportunities on and around our land.

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The DE Flow WSMA and Hydrosource Recycling Agreement described below are new agreements that will be entered into in connection with this offering. While the businesses we are acquiring (including DE Flow and Shallow Valley Ranch) have historically generated revenues from water-related activities, the royalty revenue structure described in this prospectus reflects the terms of these new agreements, which will supersede any prior arrangements and govern our relationship with DEF Operating and Hydrosource on a go-forward basis.

***Double Eagle***

Double Eagle is an independent oil and natural gas company focused on development and production throughout the Permian Basin. The company is backed by equity capital commitments from EnCap, Double Eagle Management and other strategic investors. Double Eagle continues to pursue acquisitions and ambitious development programs in the Permian Basin, supported by its strategic partnership with EnCap, strong cash flows through operations, as well as available debt facilities. Additionally, Double Eagle has historically maintained consistent drilling activity through a variety of commodity price cycles, supported by its private ownership structure and flexible capital base.

DEF Operating is a subsidiary of Double Eagle and will be a key operating partner of ours focused on providing critical water infrastructure across all phases of oil and gas development for Double Eagle and neighboring operators. Our DE Flow WSMA will be structured to provide long-term, predictable, largely commodity price-insulated cash flows through fixed-fee and royalty constructs tied to oil and gas activity on the Double Eagle operated acreage footprint. Our relationship will be anchored by a long-term agreement with an initial term of 10 years and minimum annual royalty commitments, which is expected to provide predictable cash flows. DEF Operating's activities on and around our acreage have historically supported recurring surface royalties under long-term contracts with acreage dedications from the operators.

***Hydrosource***

Hydrosource is focused on water management and permitting solutions. Our relationship with Hydrosource will support land development, including management of water logistics for completions, recycling and other strategic long-term capital investments that will further optimize the development of our acreage. As our strategic water recycling partner, Hydrosource will promote and manage the sale of treated, blended and recycled water across our land and area of mutual interest to meet the demands of customers, from which we will earn royalties. Additionally, Hydrosource has access to up to 3 MMBbls/d of produced water under the Hydrosource Recycled Water Supply Agreement with one of the largest, well-capitalized produced water disposal companies in New Mexico through 300 access points along such company's midstream assets co-located on our acreage. Hydrosource currently maintains 1 MMBbls/d of water recycling capacity, and the modular design of its recycling system allows it to move assets and expand capacity.

**Our Competitive Strengths** 

We believe that the following competitive strengths will allow us to successfully execute our business strategies and achieve our business objectives.

***Balanced portfolio with strategically located assets in both the Delaware and Midland sub-basins.***

Our diversified portfolio is balanced across the Permian Basin's two prolific sub-basins, the Delaware Basin in New Mexico and the Midland Basin in Texas, which are the most active and

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inventory-rich development basins in North America. During the fourth quarter of 2025, oil and gas production from the Permian Basin represented approximately 46% of U.S. lower 48 states production. Large, well-capitalized public and private operators, including Chevron Corporation, ConocoPhillips Company, Devon Energy Corporation, Diamondback Energy, Inc., Double Eagle, EOG Resources, Inc., ExxonMobil Corporation, Matador Resources Company, Occidental Petroleum Corporation and Permian Resources Corporation, operate numerous locations and have a large undrilled inventory of locations on our land, and numerous other large operators frequently utilize our water infrastructure assets, both of which generate royalty revenue streams and contribute to the strength of our portfolio and durability of our revenue streams. Our expansive land footprint and available resource offerings across the Permian Basin also position us to take advantage of future growth opportunities in emerging industries such as power generation, transmission and storage, data centers and associated infrastructure.

Our Delaware Basin surface acreage is located in the core of the Delaware Basin's lowest cost and most prolific remaining oil and natural gas resources and is primarily operated by large, well-capitalized public operators. The nature of our SUAs and other similar agreements and largely contiguous acreage positions us to benefit from the ongoing development of these resources through royalties that are not directly impacted by commodity prices. Our primary revenue streams on our Delaware Basin land are not directly dependent on access to SWD wells and produced water takeaway systems that may be impacted by potential constraints, including produced water pore space limitations, over-pressurization of subsurface reservoirs and regulatory risks. Instead, a meaningful portion of our Delaware Basin revenue streams result from water and resource sales, including from the beneficial reuse of produced water following treatment and recycling by Hydrosource, with the potential for our pore space to be utilized for AGI.

On our Midland Basin acreage, where regulatory and geologic conditions are more favorable, we have abundant pore space to support our existing SWDs and the development of multiple additional SWDs to support our customers' growing produced water demand. Our Midland Basin assets also offer diversified exposure to future upstream development through both water resources supply and produced water handling as well as non-oil and gas revenue streams, including potentially from wind leases with a combined 379 MW build-out. Among upstream-related activities, these assets derive a significant portion of their revenue from many large, well-capitalized operators and have balanced exposure to both production and development activity. In addition, our Midland Basin land generates royalties from power infrastructure and other supporting infrastructure development on our land.

***Diverse revenue streams underpinned by a large percentage of fee-based royalties and surface use agreements.***

Our business model is built on recurring, contracted, long-term, fee-based revenue streams with a diverse group of large, well-capitalized producers and other customers tied to surface use of our land. We generate revenue from granting ROWs, easements and rights to conduct surface use activities, sourcing and delivering water for completions, handling, transporting, recycling and disposing of produced water, AGI pore space leases and providing access to mining sites for the sale of caliche and topsoil to customers. Many of our SUAs allow us to be the exclusive provider of our resources to upstream operators on our fee land, as well as select lands we control. We will also generate revenue under our Hydrosource Recycling Agreement and DE Flow WSMA when our customers utilize our and our operating partners' water infrastructure assets, which, in the Midland Basin, will be supported by long-term acreage dedications. These activities support multiple sources of revenue, which are not directly impacted by commodity price volatility and require minimal ongoing operating or maintenance expenditures from us.

Hydrosource's long-term contracted access to produced water and technical expertise positions us for significant long-term value creation. While beneficial reuse of produced water remains in the

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conceptual and early-development phase, we believe it holds meaningful economic potential over the coming years. Emerging applications include residential and municipal use, agricultural irrigation, industrial and technology-sector demand, aquifer replenishment and lithium extraction. Together, these opportunities represent a transformative pathway for converting produced water into a scalable, revenue-generating resource.

***Multiple potential uses of land, including power and technology, to create long-term revenue streams.***

Industrial activity on our land requires the development of infrastructure, which in turn can be used to support a variety of uses beyond the current activity. Our proactive management strategy seeks to optimize the amount of activity utilizing the same surface acreage on our land over the long-term. As a land management company, we facilitate development of our land and resources by seeking to expand existing infrastructure and operations on our land through frequent engagement with our customers, identifying novel uses of our land and resources and attracting potential customers and operating partners to develop new projects on our properties. Additionally, we believe our land is well suited for our entrepreneurial management team to work with customers to provide dedicated surface acres for data center infrastructure, power generation, transmission and storage facilities and related commercial development, which will improve our high margin royalty-based cash flows. In turn, the development on our land augments our ability to attract incremental activities as new customers make use of existing infrastructure. For example, as roads, power and other infrastructure are developed on our acreage, subsequent development by other customers is facilitated.

We generate a significant portion of our cash flows under long-term contracts with customers and operating partners. In the Midland Basin, we expect to generate significant cash flows under our DE Flow WSMA with DEF Operating that will provide for minimum annual royalty payments from our water infrastructure system, which will include supply water sales and produced water handling and disposal. This system is supported by long-term acreage dedications with Double Eagle, which continues to be one of the most active private operators in the Midland Basin. Double Eagle has a proven track record of continuing to develop oil and gas assets in a variety of commodity price environments due to its private ownership structure and flexible capital base. The expansive DE Flow water system allows connections with third parties for continued growth as well. Our Midland Basin water infrastructure system is located in an area with low seismicity, which allows the water infrastructure system to maintain its quality through consistent water sales and produced water handling and disposal. We believe there is significant remaining inventory with attractive break-even economics that will continue to support this asset and our royalty-based revenue stream for the long term. Similarly, our Hydrosource Recycling Agreement will generate consistent revenue and cash flow from the sale of water to producers across all of our acreage and will include a five-year minimum royalty commitment.

In addition to the commercial uses of our land, we retain three partners to oversee an over 1,150 head cattle grazing operation on our land in New Mexico. As a part of these operations, we seek to operate to benefit our land and its wildlife and to partner with local government and other groups to further these goals.

***We have an entrepreneurial management team with a track record of building businesses and creating value.***

Our management team has several decades of combined experience in the energy industry, with a proven history of value creation specifically in the Permian Basin.

Our management team has sought, and continues to seek, opportunities to efficiently commercialize and optimize our land position. Since commencement of our operations in 2024, our

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management team has successfully acquired and/or integrated approximately 200,000 acres and the related land management operations, while actively unlocking incremental value by increasing the overall combined profitability of those operations, while also creating or identifying new sources of revenue with minimal capital investment. In addition, we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidated fragmented SUAs with various customers while renegotiating key commercial terms that increased revenue
activities on our land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased our revenue stream through the 15-year, Hydrosource Recycled Water Supply
Agreement between Hydrosource and one of the largest produced water disposal companies in New Mexico that allows us and our operating partners access to up to 3 MMBbls/d of produced water that can be treated and/or recycled by Hydrosource and sold
to customers on and off our land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased our land footprint to approximately 236,000 acres across the Permian Basin, which is further supplemented by the
DE Acreage Dedication, through the strategic combination of the L&E, Shallow Valley and Double Eagle assets as part of this offering, with the goal of developing one of the largest land management companies that supports oil and gas development
in the Permian Basin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• achieved the above strategies while maintaining a strong balance sheet.

**Our Business Strategies** 

Our principal business objective is maximizing risk-adjusted total return to our shareholders by growing Free Cash Flow with minimal capital expenditures and operational risks. We intend to pursue the following business strategies to achieve this objective.

***Increase cash flow per share and generate differentiated returns for our shareholders.***

We intend to sustainably grow cash flow per share for our shareholders. Because our business model is largely fee-based and capital-light, we expect to generate significant Free Cash Flow relative to our capital investment needs. We believe focusing on per-share cash flow, rather than simply growing volume, aligns our strategy with long-term shareholder returns. We intend to grow per-share cash flow by pursuing high return growth opportunities. We also intend to seek to return capital to our shareholders through dividends, although we have not established a formal dividend policy.

***Promote efficient development of our assets through both existing and novel approaches to utilize our land and resources.***

We will continue to actively manage and develop our acreage to maximize revenue and identify higher and better uses of our land. We intend to continue to grow our existing diversified revenue streams, which currently include royalties and fees from upstream operations on our acreage, royalties from water recycling and produced water handling and treatment and revenues from the sale of surface resources such as caliche. In addition, through the combination of L&E, Shallow Valley and Double Eagle assets as part of this offering, we will pursue new opportunities to enhance the use of our resources both across the combined footprint and among our operating partners. We also believe revenue generation opportunities exist from ancillary surface use activities, such as sand mining, solid waste disposal and pore space leases. We believe that our ability to offer a single commercial interface for land access, water sourcing and produced water logistics is a competitive advantage that reduces downtime and cost for operators, making our acreage the preferred platform for multi-year development programs for operators. Additionally, the water recycling services offered by our operating partners on our land provide our operators with access to a commercial solution to assist them with

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managing increasing produced-water volumes, as well as the ability to meet their individual sustainability goals. We will also seek to further develop and grow our non-oil and gas revenue streams, which we believe include traditional and renewable power generation, transmission and storage and data center infrastructure. Our goal is to efficiently increase revenue by maximizing fee-generating activities on the same land while minimizing permitting friction for our customers.

***Pursue accretive acquisitions to enhance our asset base.***

We intend to reinvest our cash flow accretively into our business by evaluating and pursuing selective acquisitions, potentially including acquisitions from the Existing Owners, that are complementary to our strategy and pursuing our capital-light development strategy on acquired acreage to increase our stable cash flow base. For example, Hydrosource recently acquired approximately 50,000 surface acres in Lea County, New Mexico that is proximate to our existing land holdings in the Delaware Basin. While no agreement or understanding exists between us and Hydrosource with respect to our acquisition of that acreage and no assurance can be given that any such agreement may be reached in the future, we may seek to acquire such acreage from Hydrosource. We intend to target opportunities that create near-term cash flow from the use of our surface acreage and can be quickly commercialized through our existing contract structure without significant incremental capital. We believe disciplined expansion of our land position can unlock new revenue opportunities and strengthen our strategic positioning in the sector. We intend to remain selective and pursue transactions that we believe will be accretive to cash flow per share.

***Maintain a prudent balance sheet with capital flexibility.***

We intend to maintain a prudent financial profile to preserve strategic flexibility. Our asset-light model allows us to support customer activity without large upfront capital requirements to support development of our acreage. We expect to maintain our balance sheet strength to continue investing in commercializing and optimizing our existing land position, pursue strategic, high-return bolt-on opportunities and return capital to shareholders, including through payment of dividends and/or opportunistic repurchases. Our strategy will continue to focus on growing our land position, a non-depreciable asset, with significant economic cash flow generation for multiple years. We believe maintaining balance sheet discipline positions us to act opportunistically in a basin where surface access, water logistics rights and ROW control are increasingly valuable to operators.

***Capitalize on our relationship with Hydrosource and DEF Operating to increase revenue.***

Our operating partners, Hydrosource and DEF Operating, operate integrated water midstream systems in the Delaware Basin and Midland Basin. These assets include over 140 miles of pipeline and 6 produced water handling facilities capable of handling over 400 MBbls/d of produced water. Additionally, Hydrosource has access to up to 3 MMBbls/d of produced water under the Hydrosource Recycled Water Supply Agreement.

Our DE Flow System is designed for operational redundancy, customer flow assurance and recycling and redelivery across our Midland Basin position, and we believe it is a leader among the next generation of water handling facilities, including water recycling, enhanced evaporation and desalination facilities, which could potentially provide incremental surface use revenues and water sales royalties to us.

Our relationships with DEF Operating and Hydrosource allow us to focus on our land management strategies while we continue to realize the benefits of the available resources and long-term development opportunities on and around our land. We expect to grow organically alongside Hydrosource and DEF Operating as they increase operational capacities on our surface acreage. For each incremental barrel of sourced or produced water recycled by Hydrosource on our land, we will

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earn additional revenue while investing minimal capital. We have also been issued a permit to place a solid waste facility on our land, and Hydrosource has a two-year option to develop that facility. Additionally, should we choose to acquire additional surface acreage, we may be able to enhance returns by entering into additional commercial agreements with Hydrosource and/or Double Eagle when our respective business interests align.

**Properties** 

As of December 31, 2025, we owned or controlled approximately 236,000 surface acres across Texas and New Mexico. In addition, we have an interest in up to approximately 70,000 acres pursuant to an acreage dedication related to our Midland Basin water infrastructure assets. Substantially all of our acreage and other assets will be encumbered by first-priority mortgages (deeds of trust) and related security interests to secure our Credit Facility. Other than such mortgages and our SUA easements, there are no material liens or encumbrances on our title to the surface estate on our acreage as of December 31, 2025. Acreage figures are approximate, reflect our current mapping and records, and may be subject to adjustment based on surveys, acquisitions or dispositions. We do not own the mineral interests that underlie our surface acreage.

The following table shows by sub-basin of the Permian Basin the surface acreage in which we have an interest as of December 31, 2025:

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| | |
|:---|:---|
| **Location** | **Number of<br>Surface Acres** |
|  Delaware Basin | 193875 |
|  Midland Basin |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Owned Midland Basin | 42156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dedicated Midland Basin<sup>(1)</sup> | 70105 |
|  **Total Acres** | **306136** |

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(1) Consists of up to 70,105 acres in which we will have an interest pursuant to an acreage dedication related to our Midland
Basin water infrastructure assets.

**Customers; Material Contracts and Marketing** 

***Material Contracts and Marketing***

We enter into various agreements with our customers in the ordinary course relating to the use of our land and resources, the fees, royalty rates, payment structure and other related terms under which are negotiated on a case-by-case basis, taking into account the surface use of our land, the type of resources extracted and the amount of use expected to be made of our land and the amount of resources to be produced and/or extracted, among other things. These agreements generally include defined fee schedules for specified surface activities and resource uses, and may provide exclusivity for certain resources within defined areas. We are also party to SUAs with a number of customers that have operations on our land. See "Certain Relationships and Related Party Transactions." For a discussion regarding general market rates for similar uses of land and resources in our industry and geographic area, please see "Management's Discussion and Analysis of Financial Condition and Results of Operations—How We Generate Revenue." Our commercial terms frequently incorporate inflation escalators, audit and measurement rights and customary default and cure regimes. In select arrangements, we also receive royalties tied to volumetric throughput or gross revenues, including for produced water handling, recycling and disposal conducted on or adjacent to our acreage.

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Although our agreements typically do not include minimum commitment provisions for activities on or around our land (for example, water purchase volumes), we may, in certain cases and based on a customer's proposed use, negotiate minimum-use or minimum-volume commitments, acreage dedications, or take-or-pay constructs. Under our contracts, our customers generally bear liability for environmental, health and safety risks, through indemnification of us, mandated insurance coverage and covenants and representations regarding environmental, health and safety compliance for all such risks, in each case, related to their operations on our land. These agreements often include financial assurance or bonding requirements and require customers to name us as an additional insured, with waivers of subrogation where appropriate. Further, our contracts include inspection rights such that we may enter and oversee certain activities on our properties to monitor our customers' compliance with environmental, health and safety requirements, and, following completion of the term of our agreements, our customers typically must remediate our land as close as is reasonably practicable to its state prior to such customers' activities on the land.

Assignments, transfers and change-of-control transactions by customers are commonly subject to our consent, and our agreements may include step-in or suspension rights in the event of uncured breaches or imminent safety or environmental risk. For a description of our SUAs, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—How We Generate Revenue—Surface Use Royalties and Revenue—Surface Use Royalties."

In addition, we are party to the following agreements with our operating partners. The DE Flow WSMA and Hydrosource Recycling Agreement described below are new agreements that will be entered into in connection with this offering. While the businesses we are acquiring (including DE Flow and Shallow Valley Ranch) have historically generated revenues from water-related activities, the royalty revenue structure described in this prospectus reflects the terms of these new agreements, which will supersede any prior arrangements and govern our relationship with DEF Operating and Hydrosource on a go-forward basis.

***Produced Water Recycling Rights Agreement with Hydrosource***

In connection with this offering, we will enter into the Hydrosource Recycling Agreement with Hydrosource, under which Hydrosource has the sole and exclusive right during the term to utilize our acreage to treat, process and recycle water on our land, including the right to construct, own and operate related water recycling infrastructure. The agreement will have an initial term of 10 years with automatic three-year renewals, unless terminated by a party prior to the renewal, and will have a five-year minimum royalty commitment. We will receive a royalty for each barrel of recycled water stored, treated, processed, recycled, disposed, purchased or sold on our land, and a percentage of the gross selling price for each barrel of recycled water sold off of our land, subject to the agreement. The agreement will also grant Hydrosource the exclusive, two-year option to lease a portion of our land and install and operate a solid waste facility. If the option is exercised, Hydrosource must purchase from us, at prevailing rates, all water and other resources needed for the construction and operation of the solid waste facility and will pay us for easements and surface damages associated therewith, as well as a royalty on the facility's gross revenues. The agreement will provide for automatic annual increases in the flat rate royalties that are tied to the lesser of CPI and a fixed percentage, and mutual termination rights in the event of payment or performance defaults, and contains standard confidentiality, indemnification, insurance and change of control provisions.

***Water System Management Agreement with DEF Operating***

In connection with this offering, we will enter into the DE Flow WSMA with DEF Operating, pursuant to which DEF Operating is obligated to operate, maintain, repair, expand and optimize our integrated water infrastructure system. The agreement will have an initial term of 10 years with

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automatic three-year renewals, unless terminated by a party prior to the renewal, and will have a 10-year minimum royalty commitment. Under the agreement, DEF Operating will operate, maintain, repair, expand and optimize the water infrastructure system, and will utilize it to store, transport, treat, process, dispose of, purchase and sell produced water, fresh water, blended water, treated water and recycled water. We will receive monthly royalties on the net proceeds realized by DEF Operating. The agreement will also provide for automatic annual increases in royalties that are tied to the lesser of CPI and a fixed percentage, and mutual termination rights in the event of payment or performance defaults and contains standard confidentiality, indemnification, insurance and change of control provisions.

Pursuant to a put option agreement between Double Eagle and Hydrosource, Double Eagle has the right to sell, and Hydrosource has the obligation to purchase, DEF Operating if Double Eagle undergoes certain change of control events or at any time following five years from the date of this offering. If Double Eagle exercises such put right, Hydrosource would become the owner of DEF Operating, which is the party to the DE Flow WSMA and the minimum royalty obligation thereunder.

**Infrastructure** 

In order to use our surface acreage to, among other things, support all stages of energy development and production to supply growing global demand, we have entered into various SUAs and other agreements through which our customers or operating partners have built and own or are developing infrastructure on our land, including oil, natural gas and produced water gathering pipelines, recycled water pipelines, produced water handling facilities and water recycling ponds, as of December 31, 2025. These agreements typically grant ROWs, easements and defined surface sites and include specified fee schedules for construction, operation and renewal. We also own water wells and ponds on our land. Where applicable, our SUAs provide resource exclusivity on defined tracts and include audit and measurement rights.

Additionally, our Midland Basin assets from which we generate royalty revenue, consist of an integrated produced-water handling and disposal infrastructure system with peak handling capacity of approximately 400 MBbls/d of produced water. This system is supported by long-term contracts, including acreage dedications and, in certain cases, minimum-volume commitments with multiple investment-grade operators, enhancing throughput visibility. Our produced water handling and disposal system is operated by our partner, DEF Operating, and includes pipelines, SWD wells and water storage tanks that enable water management for multiple investment grade operators across the Midland Basin. The system provides reliable, large-scale water handling, recycling and delivery infrastructure that is essential to supporting upstream development activity. Our royalty revenue from our Midland Basin infrastructure, under the DE Flow WSMA, will be underpinned with a long-term contract with a minimum guaranteed royalty commitment for a term of ten years.

In addition to the above infrastructure, improvements with respect to permanent electrical infrastructure, including telecommunication lines, drilling pad sites and roads, among other things, have been constructed on our land that improve reliability and lower operating costs for our customers. Although infrastructure with the ability to increase revenue-generating activities is already present on our surface acreage, we believe that our land presents a multitude of additional opportunities for further commercialization and optimization, including coordinating with potential customers to construct infrastructure relating to traditional and renewable power generation, transmission and storage and data center infrastructure.

**Cyclical Nature of Oil and Natural Gas Industry** 

The oil and natural gas industry is a highly cyclical industry. Demand for the use of our land and its resources depends substantially on activity levels by producers on and around our land. Prevailing

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commodity prices and future demand for, and price of, oil and natural gas and volatility in oil or natural gas prices (or the perception that oil or natural gas prices will decrease) affect such producers' capital expenditures and willingness to pursue development activities. As such, the willingness of our producers to engage in drilling activities on and around our land is substantially influenced by the market prices of oil and natural gas. Producers tend to increase capital expenditures in response to increases in oil and natural gas prices, which would generally be expected to result in greater revenues for us. Increased capital expenditures can also lead to greater production, which historically has resulted in increased supplies of oil and natural gas that can, in turn, reduce prices, thereby leading to a reduction in activity levels. For these reasons, the results of our operations may be cyclical and may fluctuate from quarter to quarter and from year to year, and these fluctuations may distort comparisons of results across periods.

**Seasonality** 

While our business is not necessarily seasonal in nature, revenue from the use of our land and its resources may fluctuate over certain reporting periods due to fluctuations in the prices of oil and natural gas. Generally, but not always, the demand for natural gas, as well as associated production, decreases during the summer months and increases during the winter months, thereby affecting the amount we receive in association with natural gas production and related activities on our land. Seasonal anomalies, such as mild winters or hotter than normal summers, may lessen this fluctuation. Demand for oil has generally not been seasonal. Our other revenue streams, including sales of water, payments from SUAs and other surface-related revenue and sales of resources, may also vary from period to period due to seasonal changes in supply and demand, and a variety of additional seasonal factors that are beyond our control and the control of producers on or around our land.

Our results and business are significantly dependent on our customers and their activities on our land, which are beyond our control. Weather conditions in the Permian Basin generally result in higher drilling activity in the spring, summer and fall months, although summer and fall drilling activity can be restricted due to severe weather conditions. In the fourth quarter, due to inclement weather and the exhaustion of annual drilling and completion capital expenditure budgets, drilling activity typically declines in the Permian Basin. As a result, our results of operations, cash flows and financial position may vary year over year, with particular periods of results not necessarily indicative of our future results.

**Human Capital Resources** 

***Employees and Human Capital Resources***

As of December 31, 2025, L&E had 28 full-time employees. Following the L&E Contribution, we expect to have 21 full time employees. None of L&E's employees are represented by a labor union or party to a collective bargaining agreement.

Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating our existing and new employees, advisors, and consultants. We believe our success depends on our ability to attract, retain, develop, and motivate diverse, highly skilled personnel. In particular, we depend upon the personal efforts and abilities of the principal members of our senior management to partner effectively as a team and to provide strategic direction, develop our business, manage our operations, and maintain a cohesive and stable work environment.

We offer employees a 401(k) plan, and encourage participation as well as financial wellness education. We also offer health benefits, including services focused on emotional and mental health, as well as certain preventative health services related to the early detection of concerns, including breast cancer, diabetes and cardiovascular disease.

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*Personnel Health and Safety* 

Safety is important to us and begins with the protection and safety of our personnel and the communities in which we operate. We value people above all else and remain committed to making safety and health our top priority. We strive to comply with all applicable health and safety laws and regulations and continually seek to maintain and deepen our safety culture by providing a safe working environment that encourages active personnel engagement, including implementing safety programs and continuing education policies to achieve improvements in our safety culture. We intend to continue to develop and administer policies to promote our organizational goals and improve and maintain the safety of our workspace.

**Competition** 

The market in which we operate is competitive due to the location of our land in the Permian Basin in Texas and New Mexico, the concentration of large, well-capitalized operators in our areas, and the services that we offer our customers. Given our geographic concentration in the Permian Basin, we compete with existing landowners in the area to provide an attractive development site for the limited number of potential customers that seek to develop and/or construct infrastructure in Texas and New Mexico to support their various business activities. We also encounter competition from landowners or controlling parties with critical ROWs and easements needed for aggregation corridors, grid interconnects and produced-water handling. We also compete with such landowners over the limited supply of, and demand for, resources, including water, in the area. Furthermore, to the extent any new property owner purchases land located in areas comparable to our surface acreage, such property owner could be a potential competitor. In addition, consolidation among upstream operators can shift development pacing and preferred surface access, intensifying competition for projects on specific corridors. As we continue to grow our business and enter into new business lines, we will experience increasing levels of competition. Competition in our current market is based primarily on the geographic location of land, business reputation, pricing arrangements for the use of the land and its resources and legal and regulatory restrictions, among other factors. Although some of our competitors may have a broader geographic scope, longer operating history and greater financial and other resources than we have, we believe that we are competitively well-positioned due to the premier location of our land, which also provides a multitude of resources and uses and our customer relationships.

**Insurance** 

We maintain insurance coverage at levels that we believe are reasonable and prudent for a Permian Basin-focused land management company; however, as is customary in our industry, we do not fully insure against all risks associated with our business, either because such insurance is not available or because premium costs are considered prohibitive. Our policies are subject to deductibles, self-insured retentions, exclusions, sublimits (including for pollution, cyber, named storms and seismic events) and other limitations, and certain risks may be uninsurable or uneconomic to insure at desired limits. We may not be able to maintain adequate insurance in the future at rates or on other terms we consider commercially reasonable and our actual coverage may not insure against many types of interruptions or events that might occur. In addition, the proceeds of any such insurance may not be paid in a timely manner and may be insufficient if a loss event were to occur. The occurrence of such an event, the consequences of which are either not covered by insurance or not fully insured, or a significant delay in, or denial of, the payment of a major insurance claim, could have a material and adverse effect on our results of operations, cash flows and financial position. Our arrangements with our customers operating on our land require the maintenance of certain levels of insurance and such customers' indemnification of us to protect for such events occurring with respect to their operations, including requirements to name us as an additional insured on specified liability policies on a primary

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and non-contributory basis, provide waivers of subrogation, furnish certificates and endorsements, and maintain financial assurance where appropriate. However, indemnities may be subject to carve-outs (such as for our gross negligence or willful misconduct) and counterparty credit risk, and customer insurance programs (often written on a claims-made basis) may not respond to all losses; we cannot guarantee continuous compliance by counterparties notwithstanding our contractual audit and inspection rights.

**Near Term Business Plan and Capital Needs** 

We generate multiple revenue streams from the use of our surface acreage and the sale of resources from our land. During 2026, we intend to continue our active land management strategy of optimizing the current uses of our land and its resources, while also identifying and developing, or supporting the development of, new uses of and revenues from our land. We do not currently anticipate any significant capital requirements during 2026 associated with research and development or otherwise, although we may pursue any compelling acquisition opportunity that is presented to us.

Under most of our agreements with our customers, our customers bear substantially all of the operating and capital expenditures related to their operations on our land, which minimizes our capital requirements for both current and future commercial opportunities. We intend to contribute all of the net proceeds from this offering to OpCo in exchange for newly issued OpCo Units. OpCo intends to use the net proceeds from this offering (i) to repay in full, and terminate, the Predecessor Credit Facility, (ii) to distribute approximately $ to our Existing Owners and (iii) for general corporate purposes.

Should we seek to grow our land position through acquisitions of additional acreage and additional capital were required in excess of our cash resources, we expect that we would seek to raise such capital through borrowings under our Credit Facility, offerings of debt and equity securities or other similar means.

**Regulation of Environmental and Occupational Safety and Health Matters** 

Our customers' business operations are subject to numerous environmental and occupational health and safety laws and regulations that may be imposed at the federal, regional, state and local levels. The activities that our customers conduct in the course of oil and natural gas exploration and production, produced water handling, sand mining, and other activities are subject to or may become subject to stringent environmental regulation. Our customers are responsible for compliance with various environmental laws and regulations in the course of their operations. Although we generally have the right to inspect our properties and the activities thereon, we typically do not have any control with respect to such activities. For land which we own and lease to a customer, we may be subject to strict, joint and several liability for any spills or contamination on those properties, even though we generally have no control over operations on those properties. For further information, see "Risk Factors—Risks Related to Environmental and Regulatory Matters—Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could cause certain of our customers to incur increased costs, additional operating restrictions or delays and a reduction in potential drilling locations. Any such impacts could, in turn, reduce activity levels and related payments on or around our surface acreage." To mitigate the risk of potential environmental liabilities that may arise in the course of operations on our properties that we do not control, we generally seek to partner with reputable customers and seek indemnification from our customers for liabilities arising from their operations on our land, and we maintain what we believe is customary and reasonable insurance to protect our business against these potential losses. We also typically include covenants relating to compliance with environmental, health and safety regulations and remediation provisions in our

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contracts. Additionally, we may be able to rely on state-funded programs (such as the TRRC's Orphan Well Program) for coverage of certain plugging and abandonment liabilities upon declaration of bankruptcy by any of our customers. However, such actions may not be adequate to cover our liabilities, and we are not fully protected or insured against all risks. There can be no assurance that environmental compliance costs will not be material in the future or that such future compliance will not have a material adverse effect on our results of operations, cash flows and financial position, or on those of our customers.

The more significant of these existing environmental and occupational health and safety laws and regulations include the following U.S. legal standards, as amended from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the CAA, which restricts the emission of air pollutants from many sources and imposes various pre-construction, operational, monitoring and reporting requirements, and which the EPA has historically relied upon as authority for adopting climate change regulatory initiatives relating to GHG emissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Federal Water Pollution Control Act, also known as the Clean Water Act ("CWA"), which regulates discharges
of pollutants into state and federal waters and establishes the extent to which waterways are subject to federal jurisdiction and rulemaking as protected waters of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), which imposes
liability on generators, transporters, and arrangers of hazardous substances at sites where hazardous substance releases have occurred or are threatening to occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Resource Conservation and Recovery Act ("RCRA"), which governs the generation, treatment, storage,
transport, and disposal of solid wastes, including hazardous wastes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Oil Pollution Act of 1990, which subjects owners and operators of onshore facilities, pipelines and other facilities,
as well as lessees or permittees of areas in which offshore facilities are located, that are the site of an oil spill in waters of the United States, to liability for removal costs and damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the SDWA, which ensures the quality of the United States' public drinking water through the adoption of drinking
water standards and control of the injection of waste fluids into below-ground formations that may adversely affect drinking water sources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ESA, which restricts activities that may affect federally identified endangered and threatened species or their
habitats through the implementation of operating restrictions or a temporary, seasonal, or permanent ban in affected areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the National Environmental Policy Act, which requires federal agencies to evaluate major agency actions having the
potential to impact the environment and that may require the preparation of environmental assessments and more detailed environmental impact statements that may be made available for public review and comment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Occupational Safety and Health Act ("OSHA"), which establishes workplace standards for the protection of
the health and safety of employees, including the implementation of hazard communications programs designed to inform employees about hazardous substances in the workplace, potential harmful effects of these substances, and appropriate control
measures.

Texas and New Mexico have similar laws and regulations in many respects. These environmental and occupational health and safety laws and regulations generally restrict the level of substances generated as a result of operations that may be emitted to ambient air, discharged to surface water, and disposed or released to surface and below-ground soils and groundwater. Additionally, there exist state and local jurisdictions in the United States where we operate that also have, or are developing or

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considering developing, similar environmental and occupational health and safety laws and regulations governing many of these same types of activities. Any failure by us, or our customers, to comply with these laws and regulations may result in the assessment of sanctions, including administrative, civil, and criminal fines or penalties; the imposition of investigatory, remedial, and corrective action obligations or the incurrence of capital expenditures; the occurrence of restrictions, delays or cancellations in the permitting, development or expansion of projects; and the issuance of injunctions restricting or prohibiting some or all activities in a particular area. Certain environmental laws also provide for citizen suits, which allow environmental organizations to act in place of the government and sue customers for alleged violations of environmental law. The ultimate financial impact arising from environmental laws and regulations is neither clearly known nor determinable, as existing standards are subject to change and new standards continue to evolve.

Some of our land has been or is now operated by third parties or by previous owners or operators whose treatment and disposal of hazardous substances, wastes, or petroleum hydrocarbons is not under our control. Under environmental laws such as CERCLA and RCRA, we could incur strict, joint and several liability for remediating hydrocarbons, hazardous substances or wastes disposed of or released by us or prior owners or operators. We also could incur costs related to the clean-up of third-party sites to which we sent regulated substances for disposal or to which we sent equipment for cleaning, and for damages to natural resources or other claims related to releases of regulated substances at or from such third-party sites.

***Waste Disposal***. RCRA and comparable state statutes regulate the generation, transportation, treatment, storage, disposal and cleanup of hazardous and nonhazardous wastes. Pursuant to rules issued by the EPA, the individual states administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements. Drilling fluids, produced water, and most of the other wastes associated with the exploration, development, and production of oil or gas, if properly handled, are currently exempt from regulation as hazardous waste under RCRA, and instead are regulated under RCRA's less stringent nonhazardous waste provisions, state laws or other federal laws. However, it is possible that certain oil and natural gas drilling and production wastes now classified as nonhazardous could be classified as hazardous wastes in the future. Any loss of the RCRA exclusion for drilling fluids, produced water and related wastes could result in an increase in our and our oil and natural gas producing operators' costs to manage and dispose of generated wastes, which could have a material adverse effect on our and our customers' results of operations, cash flows and financial position. Texas and New Mexico have received authority from the EPA to administer the RCRA program in their respective jurisdictions, in addition to their own state regulations.

Wastes containing naturally occurring radioactive materials ("NORM") may also be generated in connection with our customers' operations. Certain processes used to produce oil and natural gas may enhance the radioactivity of NORM, which may be present in oilfield wastes. NORM is subject primarily to individual state radiation control regulations. For example, the TRRC and NMOCD generally regulate the management and disposal of NORM from oil and natural gas operations in their own respective jurisdictions. In addition, NORM handling and management activities are governed by regulations promulgated by OSHA. These state and OSHA regulations impose certain requirements concerning worker protection, the treatment, storage and disposal of NORM waste and the management of waste piles, containers and tanks containing NORM, as well as restrictions on the uses of land with NORM contamination.

The CWA and analogous state laws impose restrictions and strict controls with respect to the discharge of pollutants, including spills and leaks of oil and hazardous substances, into state waters and waters of the U.S. The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or an analogous state agency. The CWA and analogous state laws also require individual permits or coverage under general permits for discharges of stormwater runoff from certain types of facilities.

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***Water Regulation***. The CWA also prohibits the discharge of dredge and fill material in regulated waters, including wetlands, unless authorized by permit. There continues to be uncertainty regarding the federal government's applicable jurisdictional reach under the CWA over waters of the U.S., including wetlands, as the EPA and the U.S. Army Corps of Engineers ("Corps") under the Obama, Trump and Biden Administrations have pursued multiple rulemakings since 2015 in an attempt to determine the scope of such reach. In January 2023, the EPA and the Corps issued a final rule founded upon the pre-2015 regulations and incorporated updates based on existing Supreme Court decisions, including considerations based on regional and geographic differences. Additionally, the Supreme Court recently decided Sackett v. EPA, a case relating to the legal tests used to determine whether wetlands should be considered "waters of the United States." A revised waters of the U.S. rule was issued in September 2023, amending the January 2023 rule based on the *Sackett* decision; however, that rule was challenged in multiple courts. Due to the rule's injunction in certain states, the implementation of the September 2023 rule varies by state. In November 2025, however, the EPA and the Corps proposed another rule to further update and narrow the September 2023 definition. To the extent any judicial ruling, administrative rulemaking or other action changes the scope of the CWA's jurisdiction, we, our operating partners and our producers and other customers could face increased costs and delays with respect to obtaining permits for dredge and fill activities in wetland areas. These laws and any implementing regulations provide for administrative, civil and criminal penalties for any unauthorized discharges of crude oil and other substances in reportable quantities and may impose substantial potential liability for the costs of removal, remediation and damages. To the extent that any new final rule or rules issued by the EPA and Corps under the Biden Administration expands the scope of the CWA's jurisdiction in areas where we or our customers conduct operations, such developments could increase compliance expenditures or mitigation costs, contribute to delays, restrictions, or cessation of the development of projects, and also reduce the rate of production of oil and natural gas from producers with whom we have a business relationship and, in turn, have a material adverse effect on our results of operations, cash flows and financial position. Federal and state regulatory agencies can impose administrative, civil and criminal penalties for noncompliance with discharge permits or other requirements of the CWA and analogous state laws and regulations.

***Air Emissions***. The CAA and comparable state laws restrict the emission of air pollutants from many sources through air emissions standards, construction and operating permit programs and the imposition of other compliance standards. These laws and regulations may require us, or our customers, to obtain preapproval for the construction or modification of certain projects or facilities expected to produce or significantly increase air emissions, obtain and strictly comply with stringent air permit requirements or utilize specific equipment or technologies to control emissions of certain pollutants. The need to obtain permits has the potential to delay our projects as well as our customers' development of various types of projects. Over the next several years, our customers may incur certain capital expenditures for air pollution control equipment or other air emissions related issues, which could lead to an increase in our customers' operating costs or a decrease in our or our customers' revenues and limit future development activity by our customers, including our operating partners, thereby reducing their demand for the use of our land and resources. For example, in 2015, the EPA issued a final rule under the CAA, making the National Ambient Air Quality Standard ("NAAQS") for ground level ozone more stringent. Since that time, the EPA has issued attainment/nonattainment designations with respect to ground-level ozone, and in December 2020, the EPA under the first Trump Administration published a final action that, upon conducting a periodic review of the ozone standard in accord with CAA requirements, elected to retain the 2015 ozone NAAQS without revision on a going-forward basis. However, several groups filed litigation over this December 2020 decision, and in October 2021, the Biden Administration announced plans to reconsider the final action in favor of a more stringent ground-level ozone NAAQS. The 2015 NAAQS continue to be implemented at this time. State implementation of the revised NAAQS could also result in the imposition of more stringent requirements through permits issued by the New Mexico Environmental Department or the Texas Commission on Environmental Quality if projects on our land have air emissions above certain

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thresholds set under applicable laws and regulations. Compliance with the NAAQS requirements or other air pollution control and permitting requirements has the potential to delay the development of oil and natural gas and other projects and increase our or our customers' costs of development and production, which costs could reduce demand for our services and have a material adverse impact on our results of operations, cash flows and financial position. In addition, the IRA amends the CAA to impose a fee on the emission of excess methane from sources required to report their GHG emissions to the EPA, including those sources in the onshore petroleum and natural gas production and gathering and boosting source categories. In May 2024, the EPA issued a final rule to implement the IRA's methane fee, although in February 2025, Congress repealed the rule under the Congressional Review Act. Additionally, in the OBBB Act, Congress delayed the implementation of the methane emission charge until 2034. We cannot predict if the Trump Administration and/or Congress may take action to repeal or revise this requirement of the IRA; however, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas projects and increase our customers' cost of development, which costs could be significant, and, indirectly, adversely affect our results of operations, cash flows and financial position.

***Produced Water Handling Facilities***. Water handling via underground injection is regulated pursuant to the UIC program established under the SDWA and analogous state and local laws and regulations. The UIC program includes requirements for permitting, testing, monitoring, recordkeeping and reporting of produced water handling activities, as well as a prohibition against the migration of fluid containing any contaminant into underground sources of drinking water. State regulations require a permit from the applicable regulatory agencies to operate produced water handling facilities. Authority over underground injection and disposal wells has been delegated by the EPA to the TRRC and the NMOCD, respectively. Although our customers monitor the injection process of their facilities, any leakage from the subsurface portions of the produced water handling facilities could cause degradation of groundwater resources, potentially resulting in suspension of our customers' UIC permits, issuance of fines and penalties from governmental agencies, incurrence of expenditures for remediation of the affected resource and imposition of liability by third parties claiming damages for alternative water supplies, property and personal injuries. A change in water handling regulations or the inability to obtain permits for new produced water handling permits in the future may affect our customers' ability to handle produced water and other substances on our land, which could adversely affect our business, results of operations, cash flows and financial position.

Furthermore, in response to seismic events in the past several years near produced water handling facilities used for disposal by injection of produced water resulting from oil and natural gas activities, federal and some state agencies are investigating whether such facilities have caused increased seismic activity, and some states have restricted, suspended or shut down the use of such produced water handling facilities in certain areas prone to increased seismic activity. Developing research suggests that the link between seismic activity and wastewater disposal may vary by region and that only a very small fraction of the tens of thousands of produced water handling facilities have been suspected to be, or have been, the likely cause of induced seismicity. In 2016, the U.S. Geological Survey identified six states with the most significant hazards from induced seismicity, including Oklahoma, Kansas, Texas, Colorado, New Mexico and Arkansas. As a result of these concerns, regulators in some states have imposed, or are considering imposing, additional requirements in the permitting of produced water handling facilities or otherwise to assess any relationship between seismicity and the use of such wells. For example, the TRRC has issued rules for water handling facilities that imposed certain permitting and operating restrictions and reporting requirements on produced water handling facilities in proximity to faults. New Mexico has, in some parts of the state, issued monitoring and reporting guidelines with respect to seismic activity and requires significant spacing between produced water handling facilities.

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States also may issue orders to temporarily shut down or to curtail the injection depth of existing facilities in the vicinity of seismic events. In Texas, the TRRC has pursued several regulatory initiatives since the latter half of 2021 as a result of recent seismic activity in an area of the Midland Basin including: (i) directing operators to pursue voluntary reductions in produced water handling from scores of produced water handling facilities in response to earthquakes; (ii) suspending certain deep produced water handling permits within SRAs: and (iii) suspending all produced water handling permits to inject oil and natural gas waste into deep strata within the boundaries of SRAs. In November 2021, New Mexico implemented protocols requiring operators to take various actions within a specified proximity of certain seismic activity, including a requirement to limit injection rates if a seismic event is of a certain magnitude. Further, in July 2024, New Mexico announced the administrative cancellation of 75 pending permit applications for UIC Class II wells within the 10-mile County Line SRA, due to the potential for increased seismicity within the area. An additional consequence of this seismic activity is lawsuits alleging that produced water handling operations have caused damage to neighboring properties or otherwise violated state and federal rules regulating waste disposal. The adoption and implementation of any new laws, regulations or directives that restrict our customers', including our operating partners', ability to dispose of wastewater on our land by limiting volumes, disposal rates, produced water handling facility locations or otherwise, or requiring our customers to shut down produced water handling facilities, could reduce the demand for use of our land and resources and limit the fees and royalties we receive from the transportation and the handling of produced water on our land, which would have a material adverse effect on our results of operations, cash flows and financial position.

***Hydraulic Fracturing***. Hydraulic fracturing involves the injection of water, sand or other proppants and chemical additives under pressure into targeted geological formations to fracture the surrounding rock and stimulate production. Hydraulic fracturing is an important and common practice that is typically regulated by state oil and natural gas commissions or similar agencies. However, the practice continues to be controversial in certain parts of the country, resulting in increased scrutiny and regulation of the hydraulic fracturing process, including by federal agencies that have asserted regulatory authority or pursued investigations over certain aspects of the hydraulic fracturing process.

Moreover, some state and local governments have adopted, and other governmental entities are considering adopting, regulations that could impose more stringent permitting, disclosure and well construction requirements on hydraulic fracturing operations, including states where our customers operate. For example, Texas, New Mexico and other states have adopted regulations that impose stringent permitting, disclosure, disposal and well construction requirements on hydraulic fracturing operations. The TRRC in 2014, for instance, issued a "well integrity rule" which updated the requirements for drilling, completing and cementing wells. States could also elect to place certain prohibitions on hydraulic fracturing. For example, in recent years, in New Mexico, there have been continued efforts to pause hydraulic fracturing and cease state issuance of permits for a four-year time period, although none of the bills introduced on this topic have yet passed the New Mexico Legislature.

In the event that new federal, state or local restrictions or bans on the hydraulic fracturing process are adopted in areas where our land is located, our customers may incur additional costs or permitting requirements to comply with such requirements that may be significant in nature and our customers could experience added restrictions, delays or cancellations in their exploration, development, or production activities, which would in turn reduce the demand for use of our land and resources and have a material adverse effect on our results of operations, cash flows and financial position.

***Climate Change***. The threat of climate change continues to attract considerable attention from the public and policymakers in the U.S. and around the world. As a result, numerous proposals have been made, and more are likely forthcoming at the international, national, regional and state levels of government to monitor and limit existing emissions of GHGs as well as to restrict or eliminate such future emissions. As a result, our operations as well as the operations of our customers are subject to

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a series of regulatory, political, litigation, and financial risks associated with our and their operations, including those related to the production and processing of fossil fuels and emission of GHGs.

***Endangered Species***. The ESA restricts activities that may affect endangered or threatened species or their habitats. Similar protections are afforded under the MBTA, which prohibits the taking of protected migratory bird species without prior authorization by the FWS. To the degree that species listed under the ESA or similar state laws, or are protected under the MBTA, live in the areas where we or our customers operate, our and our customers' abilities to conduct or expand operations and construct facilities could be limited or we and our customers could be forced to incur material additional costs. Moreover, our customers' drilling activities may be delayed, restricted, or cancelled in protected habitat areas or during certain seasons, such as breeding and nesting seasons. Some of our land and the operations of our customers are located in areas that are designated as habitats for protected species. In addition, the FWS may make determinations on the listing of unlisted species as endangered or threatened under the ESA. The dunes sagebrush lizard and the lesser prairie chicken are examples of species that, if listed as endangered or threatened under the ESA in the future, could impact our or our customers' operations. For example, in November 2022, the FWS listed the northern district population segment of the lesser prairie chicken (encompassing southwest Colorado, southcentral to western Kansas, western Oklahoma and the northeast Texas Panhandle) as threatened under the ESA, and the southern district population segment (covering eastern New Mexico and the southwest Texas Panhandle) as endangered. However, in March 2025, the U.S. District Court for the Western District of Texas vacated the rule for the northern district population segment. The FWS also listed the dunes sagebrush lizard as an endangered species under the ESA in a final rule effective June 20, 2024. However, this rule is also subject to challenge. Critical habitat for the species has not yet been designated, but is expected to occur after a separate rulemaking in the future. The designation of previously unidentified endangered or threatened species could indirectly cause us or our customers to incur additional costs, cause our or our customers' operations to become subject to operating restrictions or bans and limit future development activity in affected areas. The FWS and similar state agencies may designate critical or suitable habitat areas that they believe are necessary for the survival of threatened or endangered species. Such a designation could materially restrict use of, or access to, federal, state, and private lands, including our land. Over time, the trend in environmental and occupational health and safety regulation is to typically place more restrictions and limitations on activities that may adversely affect the environment or expose workers to injury and thus, any changes in environmental or occupational health and safety laws and regulations or reinterpretation of enforcement policies that may arise in the future and result in more stringent or costly waste management or disposal, pollution control, remediation or occupational health and safety-related requirements could have a material adverse effect on our business, results of operations, cash flows and financial position. We may not have insurance or be fully covered by insurance against all environmental and occupational health and safety risks, and we may be unable to pass on increased compliance costs arising out of such risks to our customers. We review regulatory and environmental issues as they pertain to us and we consider regulatory and environmental issues as part of our general risk management approach. For more information on environmental and occupational health and safety matters, see "Risk Factors—Risks Related to Environmental and Regulatory Matters—Legislation or regulatory initiatives intended to address seismic activity, over-pressurization or subsidence could restrict drilling, completion and production activities, as well as our operating partners' ability to handle produced water gathered from its customers, which could have a material adverse effect on our results of operations, cash flows and financial position," "Risk Factors—Risks Related to Environmental and Regulatory Matters—The results of operations of our customers, as well as producers on or around our land, may be materially impacted by efforts to transition to a lower-carbon economy, which could have a material adverse effect on our business, results of operation, cash flows and financial position." "Risk Factors—Risks Related to Our Business and Operations—We and our customers may be subject to claims for personal injury and property damage, catastrophic events, and those related to contamination resulting from our customers' operations, which could have

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a material and adverse effect on our results of operations, cash flows and financial position," "Risk Factors—Risks Related to Our Business and Operations—We or our customers may be unable to obtain and renew permits necessary for operations, which could materially and adversely affect our results of operations, cash flows and financial position" and "Risks Related to Our Business and Operations."

**Legal Proceedings** 

We are periodically party to proceedings and claims incidental to our business. While many of these other matters may not be predicted with certainty, we believe that the liability, if any, ultimately incurred with respect to such other proceedings and claims will not have a material adverse effect on our financial position or on our liquidity, capital resources, future results of operations or cash flows. We will continue to evaluate proceedings and claims involving us on a regular basis and will establish and adjust any estimated reserves as appropriate to reflect our assessment of the then-current status of the matters.

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**MANAGEMENT** 

Set forth below are the names, ages and titles of our executive officers and director nominees:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position with EagleRock Land, LLC** |
|  Greg Pipkin Jr. | 36 | Chief Executive Officer and Director Nominee |
|  Neal H. Shah | 55 | President and Chief Financial Officer |
|  Robert W. Hunt Jr. | 45 | General Counsel |
|  Richard H. Coats | 66 | Chairman |
|  Jeff S. Lott | 64 | Director Nominee |
|  James C. Nelson | 62 | Director Nominee |
|  Stephanie Reed | 43 | Director Nominee |
|  Michael W. Wallace | 63 | Director Nominee |

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**Executive Officers and Director Nominees** 

The following is a biographical summary of the business experience of these executive officers and director nominees:

***Greg Pipkin Jr.—Chief Executive Officer and Director Nominee.*** Mr. Pipkin has served as our Chief Executive Officer since November 2025 and will continue to serve in such role upon the listing of our Class A shares. Prior to this offering, he also served as our sole director. Prior to joining EagleRock, Mr. Pipkin served as Senior Vice President, Corporate Development and Strategy of Infinity Natural Resources ("Infinity") from March 2024 to November 2025. Prior to joining Infinity, he served as Senior Vice President, Permian Asset Team & Finance at Spur Energy Partners ("Spur") from September 2021 to March 2024. While at Spur, Mr. Pipkin had previously held the position of Vice President, Finance & Corporate Development from June 2019 to September 2021. Previously, Mr. Pipkin held engineering roles at Wildhorse Resources Management Company, LLC, Memorial Resource Development Corp. and Halcon Resources Corporation. Mr. Pipkin holds a Bachelor of Science in Petroleum Engineering and a Master of Business Administration from the University of Texas at Austin.

***Neal H. Shah—President and Chief Financial Officer.*** Mr. Shah has served as our President and Chief Financial Officer since December 2025 and will continue to serve in such role upon the listing of our Class A shares. Prior to joining EagleRock, Mr. Shah was elected as Executive Vice President and Chief Financial Officer of Pioneer Natural Resources Company (NYSE: PXD) ("Pioneer"), where he held the role of Chief Financial Officer from January 2021 through June 2024. Under his tenure as Chief Financial Officer, Pioneer's stock price increased from approximately $113 to approximately $270 per share and culminated in Pioneer's $65 billion acquisition by Exxon Mobil Corporation. Mr. Shah joined Pioneer in June 2017 as Vice President, Investor Relations.

Prior to Pioneer, Mr. Shah served as a Senior Equity Research Analyst at Thrivent Asset Management from June 2016 to June 2017 and as a Vice President at Nuveen LLC from March 2006 to June 2016. His deep operational experience is complemented with additional financial roles at Piper Jaffray & Company, RBC Capital Markets, and Goldman Sachs & Co. Mr. Shah holds a Bachelor of Science in Electrical Engineering from Louisiana State University and a Master of Business Administration from The University of Chicago Booth School of Business, where he was named a Siebel Scholar and received the Irwin J. Biederman Leadership Award.

***Robert W. Hunt Jr.—General Counsel.*** Mr. Hunt has served as our General Counsel since January 2026 and will continue to serve in such role upon the listing of our Class A shares. Prior to joining EagleRock, Mr. Hunt served as Chief Legal Officer and Corporate Secretary of Aris Water Solutions, Inc. ("Aris") from February 2024 until Aris' merger with Western Midstream Partners, LP in

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October 2025. Prior to joining Aris, he served as Executive Vice President & General Counsel of Earthstone Energy, Inc. ("Earthstone") from April 2022 until Earthstone's merger with Permian Resources Corporation in November 2023. Prior to joining Earthstone, he served as Senior Vice President, General Counsel and Secretary of Indigo Natural Resources LLC ("Indigo") from August 2016 until Indigo's merger with Southwestern Energy Company in September 2021. From May 2010 until July 2016, Mr. Hunt worked for Cobalt International Energy, Inc., serving most recently as Associate General Counsel focusing primarily on capital markets and major transactions. Mr. Hunt began his career with Vinson & Elkins LLP, practicing corporate and securities law. Mr. Hunt holds a Bachelor of Science in Business Administration and Politics from Washington and Lee University and a Juris Doctor from the University of Texas School of Law.

***Richard H. Coats—Chairman***. Mr. Coats began his career in the oil and gas business in 1984. Since 2006, Mr. Coats has served as the Co-Founder of OGX Resources, LLC, Santa Elena Minerals, LLC, OGX Minerals, LP and OGX Minerals II, LP, entities focused on acquisition and development of oil and natural gas resources in the Permian Basin. Beginning in 2011, Mr. Coats began acquiring surface rights and, as of January 2026, owned approximately 83,000 acres, with 60,000 acres located in the Permian Basin and 23,000 acres located in Utah. Approximately 40,000 of such acreage in the Permian Basin is located in the Midland Basin, where substantial water infrastructure and SWD systems were developed from the ground up.

Prior to 2006, Mr. Coats founded Cactus Energy, Inc., which currently owns non-operated working interests in over 750 wells located primarily in the Permian Basin. Mr. Coats began his oil and gas career at Texas Oil & Gas Corp. after employment as an oil and gas lender at Republic Bank Dallas. Mr. Coats holds a Bachelor's Degree from the University of Texas at Austin.

***Jeff S. Lott—Director Nominee***. Mr. Lott has served as Managing Trustee and co-owner of Lott Mineral Trust for over 29 years. The Lott Mineral Trust comprises approximately 88,000 contiguous net mineral acres in West Texas. In this role, Mr. Lott oversees oil and gas royalties, leasing operations, water resource revenues—including fresh water sales and disposal—and easement and surface use royalties. In addition to his work with Lott Mineral Trust, Mr. Lott has been involved in numerous ventures in the oil and gas industry over the past three decades. From 2011 to 2014, he was Founder and Chief Executive Officer of Permian Basin Sand Haulers, which operated a fleet of over 140 trucks throughout the Permian Basin prior to its sale to Francis Drilling Fluids. From 2009 to 2011, he was co-founder and owner of Tech Management, an oilfield chemical company servicing more than 6,000 wells across West Texas and Eastern New Mexico, until its acquisition by Globe Energy Services. From 2007 to 2011, Mr. Lott served as Founder and Chief Executive Officer of Surpacifico, LLC, which owned and operated oil tankers and drilling assist barges off the coast of Northern Peru. Earlier in his career, beginning in 1986, he owned and operated several companies across Texas providing services in oilfield chemicals, conventional drilling and gas compression. Mr. Lott holds a Bachelor of Business Administration in Management from Texas Tech University.

***James C. Nelson—Director Nominee***. Mr. Nelson serves as President, Chief Executive Officer and Chairman of Warren Equipment Company ("WEC") and as Dealer Principal and President of Warren CAT. Prior to joining WEC, Mr. Nelson spent seven years in the investment industry as a Financial Consultant with Dean Witter Reynolds and Smith Barney, Harris Upham in Dallas, Texas. Mr. Nelson serves as Chairman of The Scharbauer Foundation in Midland, Texas and as a board member of HiVolt Energy. He previously served as Chairman of The Cooperative Association of Tractor Dealers, Inc., and as Chairman and member of the Advisory Council of the Moody College of Communication at The University of Texas. Mr. Nelson holds a bachelor's degree in Finance from Michigan State University.

***Stephanie Reed—Director Nominee***. Ms. Reed has served as Partner of Formentera Partners, where she oversees business development, land, geosciences, and marketing and

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midstream functions, and supports asset management and operations since April 2022. Prior to joining Formentera, Ms. Reed served as Vice President of Oil & Gas Marketing & Midstream at Pioneer. Prior to Pioneer, she spent more than a decade at Parsley Energy, where she most recently served as Senior Vice President of Business Development, Land, Marketing & Midstream. During her tenure, she led business development and integration efforts representing over $20 billion in asset value. Ms. Reed has over 15 years of experience in the oil and gas industry. She holds a Master of Business Administration and a Bachelor of Applied Science from Texas Tech University. In 2019, she was named to Oil and Gas Investor magazine's "Forty Under 40" list.

***Michael W. Wallace—Director Nominee. Mr. Wallace has served as Partner and Manager of Wallace Family Partnership, LP ("Wallace LP"), which holds non-operated working interests in oil and gas leases, midstream assets and other investments since 2010. He previously served on the Board of Directors of RSP Permian, Inc. (NYSE: RSPP), a public oil and gas company, from 2014 to 2018 when it was acquired by Concho Resources (NYSE: CXO) for $9.5 billion. Mr. Wallace served as President, Director and Manager of High Sky Partners LLC, a Midland, Texas-based oil and gas company with operations in the Spraberry Trend of the Permian Basin. Additionally, Mr. Wallace served as Executive Vice President of Production at Patriot Resource Partners LLC from 2007 to 2011. In 2004, he founded Flying W Resources, L.L.C., an independent oil and gas production company. Previously, Mr. Wallace held various technical and managerial roles at Conoco Inc. and ConocoPhillips Company from 2001 to 2004, and earlier in his career, he held roles at Burlington Resources Inc. Mr. Wallace holds a Bachelor of Science in Petroleum Engineering from Texas Tech University and is a member of the Society of Petroleum Engineers.***

**Status as a Controlled Company** 

Upon completion of this offering, our Existing Owners will initially own approximately Class B shares, representing approximately % of our combined voting power. Pursuant to the terms of the Voting Agreements, each Existing Owner will agree with us that it and certain of its transferees will vote its respective Class A shares and Class B shares in favor of each of the director nominees recommended for election by our board of directors. See "Certain Relationships and Related Party Transactions—Voting Agreements." As a result, we expect to be a controlled company as of the completion of this offering under the Sarbanes-Oxley Act and the NYSE and NYSE Texas rules. A controlled company is not required to have a majority of independent directors or to form an independent compensation or nominating and corporate governance committee. As a controlled company, we will remain subject to the Sarbanes-Oxley Act and the rules of the NYSE and NYSE Texas that require us, subject to certain phase-in periods, to have an audit committee composed entirely of independent directors. Under these rules, we must have an audit committee that has one member who is independent by the listing date, a majority of members that are independent within 90 days of the effective date and all members that are independent within one year of the effective date. We expect to have independent directors upon the closing of this offering.

If at any time we cease to be a controlled company, we intend to take all action necessary to comply with the Sarbanes-Oxley Act and the NYSE and NYSE Texas rules, including by appointing a majority of independent directors to our board of directors and establishing a compensation committee and a nominating and corporate governance committee, each composed entirely of independent directors, subject to a permitted "phase-in" period.

**Composition of Our Board of Directors** 

Upon consummation of this offering, our LLC Agreement will provide that our board of directors shall consist of such number of directors as shall be determined from time to time by our board of directors, but shall not consist of less than seven directors. At the closing of this offering, we will have a

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single class of directors, and directors will be subject to re-election on an annual basis at each annual meeting of shareholders. In connection with this offering, we will enter into a Shareholder's Agreement with each of the Existing Owners, which will provide the Existing Owners with the right to designate a certain number of nominees to our board of directors so long as the Existing Owners, and their affiliates and certain transferees, collectively beneficially own a specified amount of the outstanding Class A and Class B shares. See "Certain Relationships and Related Party Transactions—Shareholder's Agreements." After the Trigger Event, our board of directors will be divided into three classes that are as nearly equal in number as is reasonably possible and each director will be assigned to one of the three classes. If at the time of the Trigger Event, any of the directors are designees of Double Eagle, such designees shall, at Double Eagle's election, be classified as members of the third class of directors. After the Trigger Event, at each annual meeting of shareholders, a class of directors will be elected for a three-year term to succeed the directors of the same class whose terms are then expiring. The initial terms of the Class I, Class II and Class III directors will expire at the first, second and third, respectively, annual meeting following the Trigger Event. Upon the date that our Class A shares are first traded on the NYSE and NYSE Texas, we expect to have seven members on our board of directors.

Our LLC Agreement will not provide for cumulative voting in the election of directors, which means that the holders of a majority of our issued and outstanding common shares can elect all of the directors standing for election, and the holders of the remaining common shares will not be able to elect any directors. Our Existing Owners' beneficial ownership of greater than 50% of our voting common shares immediately following this offering means our Existing Owners will be able to control matters requiring shareholder approval, which includes the election of directors.

Our directors hold office until the earlier of their death, resignation, retirement, disqualification or removal or until their successors have been duly elected and qualified.

**Director Independence** 

Our board of directors intends to review the independence of our directors using the independence standards of each of the NYSE, NYSE Texas and the SEC. Currently, we anticipate that our board of directors will determine that each of , and are independent within the meaning of the NYSE and NYSE Texas rules currently in effect and will be independent within the meaning of Rule 10A-3 of the Exchange Act.

**Director Compensation** 

For a discussion of our director compensation arrangements, see "Executive Compensation—Director Compensation."

**Committees of the Board of Directors** 

Following the completion of this offering, we intend to have an audit committee of our board of directors. In addition, our board of directors may establish such other committees as it determines necessary or advisable from time to time. We anticipate that each of the standing committees of the board of directors will have the composition and responsibilities described below. We will rely on the exemptions and phase-in provisions of Rule 10A-3 of the Exchange Act and the NYSE and NYSE Texas transition rules applicable to companies completing an initial listing.

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***Audit Committee***

We are required to have an audit committee of at least three members, and all of its members are required to meet the independence and experience standards established by each of the Exchange Act and the NYSE and NYSE Texas rules, subject to certain transitional relief described below. We will establish an audit committee compliant with each of the SEC and the NYSE and NYSE Texas rules prior to the completion of this offering. We anticipate that following completion of this offering, our audit committee will consist of , and who are independent under the applicable rules of each of the SEC and the NYSE and NYSE Texas. We expect that our board of directors will determine that is an audit committee financial expert as defined by the SEC. We will rely on the phase-in rules of each of the SEC and the NYSE and NYSE Texas with respect to the independence of our audit committee.

The audit committee will oversee, review, act on and report on various auditing and accounting matters to our board of directors, including the selection of our independent accountants, the scope of our annual audits, fees to be paid to the independent accountants, the performance of our independent accountants and our accounting practices. In addition, the audit committee will oversee our compliance programs relating to legal and regulatory requirements and company policies and controls. The audit committee will have the sole authority to (1) retain and terminate our independent registered public accounting firm, (2) approve all auditing services and related fees and the terms thereof performed by our independent registered public accounting firm, and (3) pre-approve any non-audit services and tax services to be rendered by our independent registered public accounting firm. The audit committee will also be responsible for confirming the independence and objectivity of our independent registered public accounting firm. Our independent registered public accounting firm will be given unrestricted access to the audit committee and our management. We expect to adopt an audit committee charter defining the committee's primary duties in a manner consistent with the rules of each of the SEC and the NYSE and NYSE Texas standards.

***Conflicts Committee***

In accordance with the terms of our LLC Agreement, our board of directors may from time to time refer specific matters that may involve conflicts of interest to a conflicts committee. The members of any such conflicts committee cannot be officers or employees of our Existing Owners or their respective affiliates, and must meet the independence and experience standards established by each of the SEC and the NYSE and NYSE Texas to serve on an audit committee of a board of directors. In addition, the members of any such conflicts committee cannot own any interest in our Existing Owners or their respective affiliates, or any interest in us or our subsidiaries other than shares or awards, if any, awarded under the LTIP.

***Compensation Committee***

Because we will be a "controlled company" within the meaning of the NYSE and NYSE Texas rules, we will not be required to, and do not currently expect to, have a compensation committee in the present or foreseeable future.

If and when we are no longer a "controlled company" within the meaning of each of the NYSE and NYSE Texas rules, we will be required to establish a compensation committee compliant with each of the SEC and NYSE and NYSE Texas rules. We anticipate that such a compensation committee would consist of three directors who will be "independent" under the applicable rules of each of the SEC and the NYSE and NYSE Texas. This committee would establish salaries, incentives and other forms of compensation for officers and other employees. Any compensation committee would also administer our incentive compensation and benefit plans. Upon formation of any compensation committee, we would expect to adopt a compensation committee charter defining the committee's primary duties in a manner consistent with the rules of each of the SEC and the NYSE and NYSE Texas.

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***Nominating and Corporate Governance Committee***

Because we will be a "controlled company" within the meaning of the NYSE and NYSE Texas rules, we will not be required to, and do not currently expect to, have a nominating and corporate governance committee in the present or foreseeable future.

If and when we are no longer a "controlled company" within the meaning of the NYSE and NYSE Texas rules, we will be required to establish a nominating and corporate governance committee compliant with SEC and NYSE and NYSE Texas rules. We anticipate that such a nominating and corporate governance committee would consist of three directors who will be "independent" under the applicable rules of the SEC and the NYSE and NYSE Texas. This committee would identify, evaluate and recommend qualified nominees to serve on our board of directors, develop and oversee our internal corporate governance processes and maintain a management succession plan. Upon formation of any nominating and corporate governance committee, we would expect to adopt a nominating and corporate governance committee charter defining the committee's primary duties in a manner consistent with the rules of the SEC and the NYSE and NYSE Texas.

***Guidelines for Selecting Director Nominees***

In evaluating director candidates, we will assess whether a candidate possesses the integrity, judgment, knowledge, experience, skills and expertise that are likely to enhance our board of directors' ability to manage and direct our affairs and business, including, when applicable, to enhance the ability of a committee of the board to fulfill its duties. In particular, we will assess candidates who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have demonstrated notable or significant achievements in business, education or public service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possess the requisite intelligence, education and experience to make a significant contribution to the board of directors
and bring a range of skills, diverse perspectives and backgrounds to its deliberations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have the highest ethical standards, a strong sense of professionalism and intense dedication to serving the interests of
our shareholders.

We will consider a number of additional qualifications in evaluating a person's candidacy for membership on the board of directors. We may require certain skills or attributes, such as financial or accounting experience, to meet specific board needs that arise from time to time, and we will also consider the overall experience and makeup of the board's members to obtain a broad and diverse mix of board members.

**Corporate Code of Business Conduct and Ethics** 

Prior to the completion of this offering, our board of directors will adopt a code of business conduct and ethics applicable, at a minimum, to our employees, directors and officers, in accordance with applicable U.S. federal securities laws and the corporate governance rules of the NYSE and NYSE Texas. Any waiver of this code may be made only by our board of directors and will be promptly disclosed as required by applicable U.S. federal securities laws and the corporate governance rules of the NYSE and NYSE Texas.

**Corporate Governance Guidelines** 

Prior to the completion of this offering, our board of directors will adopt corporate governance guidelines in accordance with the corporate governance rules of the NYSE and NYSE Texas.

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**EXECUTIVE COMPENSATION** 

We are currently considered an "emerging growth company" within the meaning of the Securities Act and the Exchange Act, for purposes of the SEC's executive compensation disclosure rules. In accordance with such rules, we are required to provide a Summary Compensation Table and an Outstanding Equity Awards at Fiscal Year End Table, as well as limited narrative disclosures regarding executive compensation for our last completed fiscal year. Further, our reporting obligations generally extend only to each individual who, during the last completed fiscal year, served in the role of our principal executive officer, and to our two most highly compensated executive officers (such individuals are referred to herein as "Named Executive Officers").

With respect to the year ended December 31, 2025, our Named Executive Officers were as follows:

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| | |
|:---|:---|
| **Name** | **Principal Position** |
|  Gregory Pipkin Jr. | Chief Executive Officer |
|  Neal H. Shah | President and Chief Financial Officer |

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**2025 Summary Compensation Table** 

The following table represents information regarding the total compensation awarded to, earned by or paid to our Named Executive Officers during the fiscal year ended December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br>($)(1)** | **Bonus<br>($)(2)** | **Total ($)** |
|  Gregory Pipkin Jr. (Chief Executive Officer) | 2025 | $40011 | $250000 | $290011 |
|  Neal H. Shah (President and Chief Financial Officer) | 2025 | $19178 | $250000 | $269178 |

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(1) Base salary values reflect amounts paid during the Named Executive Officer's service following his respective hire
date.

(2) The 2025 bonus amount reflected for Mr. Pipkin was paid in February 2026. The 2025 bonus amount reflected for
Mr. Shah was paid in January 2026.

**Outstanding Equity Awards at Fiscal Year End** 

Neither of the Named Executive Officers held any equity awards at 2025 fiscal year-end.

**Additional Narrative Disclosure Regarding Executive Compensation Matters** 

***Employment Agreements and Compensation Arrangements with our Named Executive Officers***

The narrative set forth below reflects compensation awarded to or earned by our named executive officers for the fiscal year ended December 31, 2025. In connection with the Company's preparation for this offering, the employment agreements of Mr. Shah and Mr. Pipkin were amended during 2026 to provide for the assignment of such agreements to the Company automatically upon the completion of this offering, and to clarify the terms of certain incentive awards that may become earned upon the completion of this offering. These amendments did not affect compensation earned by Mr. Shah or Mr. Pipkin for fiscal year 2025.

Each of the following employment agreements was entered into with Hydrosource during 2025. In connection with this offering, the employment agreements will be assigned to the Company. The Named Executive Officers did not receive any compensation from the Company prior to entering into these employment agreements.

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*Employment Agreement with Mr. Gregory Pipkin Jr.* 

Mr. Pipkin's employment agreement provides for an initial two-year term ending November 17, 2027, unless earlier terminated. The employment agreement provides for Mr. Pipkin to serve as our Chief Executive Officer. Under the agreement, the Company may terminate Mr. Pipkin's employment at any time with or without Cause (defined below), and Mr. Pipkin may resign for Good Reason (defined below) or for convenience. Under the terms of his employment agreement, Mr. Pipkin's initial base salary is $500,000, subject to review and adjustment by the Company from time to time. Mr. Pipkin is also eligible for an annual discretionary bonus, as determined by the board of directors, and a one-time initial public offering bonus of $10,000,000 payable in cash or fully vested equity upon the successful completion of this offering, subject to his continued employment through that date, and a potential initial public offering bonus based on valuation multiples. If no initial public offering occurs but the Company or substantially all of its assets are sold, he is eligible for a discretionary one-time cash bonus. The agreement also provides severance benefits of $2,500,000 in the event of a qualifying termination without Cause or resignation for Good Reason (subject to timing limitations and execution of a release).

*Employment Agreement with Mr. Neal H. Shah* 

Mr. Shah's employment agreement provides for a fixed term ending December 31, 2027, unless earlier terminated. The employment agreement provides for Mr. Shah to serve as President and Chief Financial Officer of the Company. Under the agreement, the Company may terminate his employment at any time with or without Cause, and Mr. Shah may resign for Good Reason or for convenience. Under the terms of his employment agreement, Mr. Shah's initial base salary is $500,000, subject to review and adjustment by the Company from time to time. Mr. Shah is also eligible to receive an initial $250,000 signing bonus, an annual discretionary bonus and, upon the completion of this offering, a one-time initial public offering bonus of $10,000,000 and a potential initial public offering additional bonus based on valuation multiples. If a Company sale or asset sale occurs before an initial public offering, he will receive a cash bonus equal to 1% of the sale proceeds (net of specified deductions). The agreement also provides severance benefits of up to $15,000,000 in combined cash and equity in the event of a qualifying termination without Cause or resignation for Good Reason, subject to timing limitations and execution of a release.

***Severance or Change in Control Agreements***

The employment agreements provide for potential severance benefits in the event of a termination of employment for "Cause" or "Good Reason." The employment agreements generally provide that "Cause" means the person's (i) willful failure to substantially perform duties or comply with a lawful directive from the board of directors, (ii) conviction, plea of nolo contendere or imposition of unadjudicated probation for any felony or any crime involving moral turpitude, (iii) unlawful use or possession of illegal drugs on Company premises or while performing duties, (iv) fraud, embezzlement, misappropriation, material misconduct or breach of fiduciary duty with respect to the Company or (v) a material breach of the employment agreement or any other written agreement with the company including a material breach of any representation, warranty or covenant, subject in certain cases to a 30-day cure right, if curable.

The employment agreements generally provide that "Good Reason" means (i) a material reduction in base salary or target bonus opportunity, (ii) a material reduction in title, authority, duties or responsibilities or (iii) relocation of the executive's principal work location by more than 50 miles. For each executive, resignation for "Good Reason" requires written notice within 60 days of the triggering event, a 30-day opportunity for the Company to cure the condition, and, if not cured, resignation within 30 days after the cure period.

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*Gregory Pipkin Jr.* 

Pursuant to the terms of Mr. Pipkin's employment agreement, if his employment is terminated by the Company without Cause, or if he resigns for Good Reason under the conditions described in the agreement, he is entitled to receive a lump-sum severance payment of $2,500,000, subject to his execution of a release and continued compliance with standard restrictive covenants over a one-year period following his employment. If his employment is terminated for Cause, due to death or disability or if he resigns without Good Reason, he is entitled only to accrued but unpaid compensation and benefits.

*Neal H. Shah* 

Pursuant to the terms of Mr. Shah's employment agreement, if his employment is terminated by the Company without Cause, if he resigns for Good Reason, or upon the expiration of the contract term, he is entitled to receive a severance payment consisting of $5,000,000 in cash and $10,000,000 in fully vested equity (subject to a cap), contingent upon his execution of a release and continued compliance with restrictive covenants over a one-year period following his employment. If his employment is terminated for Cause, due to death or disability or if he resigns without Good Reason, he is entitled only to accrued but unpaid compensation and benefits. In the event he receives an initial public offering bonus (and any applicable additional listing bonus), he is not entitled to severance.

**Anti-Hedging Policies** 

We expect to adopt a policy that will prohibit our employees, including all executive officers, and members of our board of directors from engaging in transactions that are considered to hedge or offset the financial impact of holding our Class A shares.

**Clawback Policy** 

We intend to timely adopt an incentive compensation clawback policy that complies with the listing standards of the NYSE and NYSE Texas.

**Director Compensation** 

We did not pay any compensation or grant any equity awards to any non-employee director during the 2025 calendar year. We expect to adopt a director compensation program for non-employee directors on a go-forward basis that will include a significant element of share-based compensation awards from the LTIP described above, in order to align the interests of our directors and our shareholders. However, we are currently in discussions regarding the design of the director compensation program that will become effective upon completion of this offering and have not made any final decisions regarding the details of such a program.

**Compensation Arrangements to be Adopted in Connection with this Offering** 

***Long Term Incentive Plan (the "LTIP")***

In order to incentivize management members following the completion of this offering, we anticipate that our board of directors will adopt an LTIP for employees, consultants and directors. Our Named Executive Officers will be eligible to participate in this plan, which will become effective upon the consummation of this offering. We anticipate that the LTIP will provide for the grant of options, share appreciation rights, restricted shares, restricted share units, share awards, dividend equivalents, other share-based awards, cash awards, substitute awards and performance awards intended to align the interests of service providers (including the Named Executive Officers) with those of our

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shareholders. The description of the LTIP set forth below is a summary of the material anticipated features of the LTIP. This summary does not purport to be a complete description of all of the anticipated provisions of the LTIP and is qualified in its entirety by reference to the LTIP, the form of which will be filed as an exhibit to this registration statement.

*LTIP Share Limits* 

Subject to adjustment in the event of certain transactions or changes of capitalization in accordance with the LTIP, a total of of our Class A shares will initially be reserved for issuance pursuant to awards under the LTIP. The total number of shares reserved for issuance under the LTIP may be issued pursuant to incentive stock options (which generally are stock options that meet the requirements of Section 422 of the Code). Class A shares subject to an award that expires or is cancelled, forfeited, exchanged, settled in cash or otherwise terminated without delivery of shares will again be available for delivery pursuant to other awards under the LTIP; however, shares withheld to pay the exercise price of, or to satisfy the withholding obligations with respect to an award, will not be available for delivery pursuant to other awards under the LTIP. Substitute awards granted in accordance with applicable stock exchange requirements and in substitution or exchange for awards previously granted by a company acquired by us or any of our subsidiaries or with which we or any of our subsidiaries combines will not reduce the number of Class A shares authorized for issuance under the LTIP, nor will Class A shares subject to substitute awards be added to the Class A shares available for issuance under the LTIP.

Additionally, the LTIP limits the value of awards (based on their grant-date fair value) granted to a non-employee director in respect of his or her service as a non-employee director to a maximum of during each calendar year during which the LTIP is in effect, except that, for any calendar year in which a non-employee director first commences service on our board of directors or serves as lead director or chairman of our board of directors, additional awards may be granted under the LTIP in excess of such limit.

*Administration* 

The LTIP will be administered by a committee of two or more directors designated by our board of directors to administer the LTIP, such as our compensation committee, unless our board of directors elects to administer the LTIP (as applicable, the "administrator"). The administrator will have broad discretion to administer the LTIP, including the power to determine the eligible individuals to whom awards will be granted, the number and type of awards to be granted and the terms and conditions of awards. The administrator may also accelerate the vesting or exercise of any award and make all other determinations and to take all other actions necessary or advisable for the administration of the LTIP.

*Eligibility* 

Any individual who is our officer or employee or an officer or employee of any of our affiliates, and any other person who provides services to us or our affiliates, including members of our board of directors, is eligible to receive awards under the LTIP at the discretion of the administrator.

*Stock Options* 

The administrator may grant incentive stock options and options that do not qualify as incentive stock options, except that incentive stock options may only be granted to persons who are our employees or employees of one of our subsidiaries, in accordance with Section 422 of the Code. The exercise price of a stock option generally cannot be less than 100% of the fair market value of our Class A shares on the date on which the option is granted and the option must not be exercisable for longer than 10 years following the date of grant. In the case of an incentive stock option granted to an

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individual who owns (or is deemed to own) at least 10% of the total combined voting power of all classes of our shares, the exercise price of the stock option must be at least 110% of the fair market value of a share of our Class A shares on the date of grant and the option must not be exercisable more than five years from the date of grant.

*Share Appreciation Rights ("SARs")* 

A SAR is the right to receive an amount equal to the excess of the fair market value of our Class A shares on the date of exercise over the grant price of the SAR. The grant price of a SAR generally cannot be less than 100% of the fair market value of our Class A shares on the date on which the SAR is granted. The term of a SAR may not exceed 10 years. SARs may be granted in connection with, or independent of, a stock option. SARs may be paid in cash, Class A shares or a combination of cash and Class A shares, as determined by the administrator.

*Restricted Shares* 

Restricted shares are a grant of our Class A shares subject to the restrictions on transferability and risk of forfeiture imposed by the administrator. In the discretion of the administrator, dividends distributed prior to vesting may be subject to the same restrictions and risk of forfeiture as the restricted share with respect to which the distribution was made.

*Restricted Share Units* 

A restricted share unit is a right to receive cash, our Class A shares or a combination of cash and our Class A shares at the end of a specified period equal to the fair market value of our Class A shares on the date of vesting. Restricted share units may be subject to the restrictions, including a risk of forfeiture, imposed by the administrator.

*Share Awards* 

A share award is a transfer of unrestricted Class A shares on terms and conditions determined by the administrator.

*Dividend Equivalents* 

Dividend equivalents entitle an individual to receive cash, our Class A shares, other awards or other property equal in value to dividends or other distributions paid with respect to a specified number of our Class A shares. Dividend equivalents may be awarded on a free-standing basis or in connection with another award.

*Other Share-Based Awards* 

Subject to limitations under applicable law and the terms of the LTIP, the administrator may grant other awards related to our Class A shares. Such awards may include, without limitation, awards that are convertible or exchangeable debt securities, other rights convertible or exchangeable into our Class A shares, purchase rights for our Class A shares, awards with value and payment contingent upon our performance or any other factors designated by the administrator and awards valued by reference to the book value of our Class A shares or the value of securities of, or the performance of, our affiliates.

*Cash Awards* 

The LTIP will permit the grant of awards denominated in and settled in cash as an element of or supplement to, or independent of, any award under the LTIP.

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*Substitute Awards* 

Awards may be granted in substitution or exchange for any other award granted under the LTIP or any other right of an eligible person to receive payment from us. Awards may also be granted under the LTIP in substitution for similar awards held by individuals who become eligible persons as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or with us or one of our affiliates.

*Performance Awards* 

Performance awards represent awards with respect to which a participant's right to receive cash, our Class A shares, or a combination of both, is contingent upon the attainment of one or more specified performance measures during a specified period. The administrator will determine the applicable performance period, the performance goals and such other conditions that apply to each performance award. The administrator may use any business criteria and other measures of performance it deems appropriate in establishing the performance goals applicable to a performance award.

*Recapitalization* 

In the event of any change in our capital structure or business or other corporate transaction or event that would be considered an equity restructuring, the administrator shall or may (as required by applicable accounting rules) equitably adjust the (i) aggregate number or kind of shares that may be delivered under the LTIP, (ii) the number or kind of shares or amount of cash subject to an award, (iii) the terms and conditions of awards, including the purchase price or exercise price of awards and performance goals and (iv) the applicable share-based limitations with respect to awards provided in the LTIP, in each case to equitably reflect such event.

*Change in Control* 

In the event of a change in control or other changes to us or our Class A shares, all outstanding awards shall immediately vest in full and, to the extent applicable, become exercisable and nonforfeitable, without the consent or approval of any holder and without any action by the administrator, unless otherwise expressly provided in an award agreement. In addition to the foregoing, the administrator, acting in its sole discretion without the consent or approval of any holder, may make any other adjustments to awards that the administrator deems appropriate to reflect the applicable transaction or event.

*No Repricing* 

Except in connection with (i) the issuance of substitute awards granted to new service providers in connection with a transaction or (ii) in connection with adjustments to awards granted under the LTIP as a result of a transaction or recapitalization involving us, without the approval of our shareholders, the terms of outstanding option or SAR may not be amended to reduce the exercise price or grant price or to take any similar action that would have the same economic result.

*Clawback* 

All awards granted under the LTIP are subject to reduction, cancelation or recoupment under any written clawback policy that we may adopt and that we determine must, to the extent required by applicable law, or should apply to awards under the LTIP.

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*Amendment and Termination* 

The LTIP will automatically expire on the tenth anniversary of its effective date. The administrator may amend or terminate the LTIP at any time, subject to shareholder approval if required by applicable law, rule or regulation, including the rules of the stock exchange on which our Class A shares are listed. The administrator may amend the terms of any outstanding award granted under the LTIP at any time so long as the amendment would not materially and adversely affect the rights of a participant under a previously granted award without the participant's consent.

***Change in Control Severance Plan (the "CIC Severance Plan")*** 

*Purpose* 

We intend to adopt the EagleRock Land, LLC CIC Severance Plan in connection with this offering to provide certain members of our management team with severance protection in connection with a change in control of the Company. The purpose of the CIC Severance Plan is to attract and retain talent and to assure the continuity, objectivity, and dedication of management in the event of any change in control, in order to maximize the value of the Company.

*Eligible Participants* 

Members of the management team designated by the Administrator (which is the board or another person or committee appointed by the board) are eligible to participate in the CIC Severance Plan. The Administrator may designate additional participants from time to time. Each participant will receive a participation agreement specifying the participant's individual severance multiplier and COBRA multiplier, which are used to calculate the participant's severance benefits under the CIC Severance Plan.

*Change in Control Protection Period* 

The CIC Severance Plan provides severance protections during the "Change in Control Protection Period," which begins 180 days prior to the consummation of a change in control (the "Closing") and ends on the date that is 18 months following the Closing. The definition of "Change in Control" under the CIC Severance Plan has the same meaning as that term in the Company's LTIP.

*Qualifying Termination* 

A "Qualifying Termination" under the CIC Severance Plan means a termination of the participant's employment by the Company without "Cause" or by the participant for "Good Reason," in each case during the Change in Control Protection Period. A termination due to death or disability does not constitute a Qualifying Termination.

"Cause" generally means, in the absence of a definition in the participant's individual employment or severance agreement: (a) willful failure to substantially perform duties (subject to a cure period); (b) willful failure to comply with a lawful directive of the Board; (c) conviction of, or plea of guilty or nolo contendere to, a felony or crime involving moral turpitude; (d) unlawful use or possession of illegal drugs on Company premises; (e) fraud, embezzlement, or breach of fiduciary duty; or (f) material breach of any agreement with or policy of the Company (subject to a cure period, if curable).

"Good Reason" generally means, in the absence of a definition in the participant's individual employment or severance agreement and without the participant's consent: (a) a material reduction in base salary or target annual bonus opportunity; (b) a material diminution of the participant's title, authority, duties, or responsibilities; or (c) a requirement that the participant relocate more than 50 miles from the participant's then-current principal work location. Good Reason is subject to a notice

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and cure process requiring written notice within 60 days of the initial occurrence of the condition, a 30-day cure period, and resignation within 30 days following expiration of the cure period.

*Severance Benefits* 

Upon a Qualifying Termination, and subject to the participant's execution and non-revocation of a general release of claims, the CIC Severance Plan provides the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Base Salary Severance.*** A lump sum cash payment equal to the participant's Severance Multiplier
multiplied by the participant's annual base salary amount in effect on the Termination Date (or, if the participant separates from service prior to the change in control, the base salary at the time of separation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Prior Year Bonus.*** Payment of the participant's earned but unpaid annual bonus, if any, for the
fiscal year preceding the fiscal year in which the Termination Date occurs, payable on the date when bonuses for such fiscal year are otherwise paid to the Company's executives, but in all events within the fiscal year that includes the
Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Bonus Severance.*** A lump sum cash payment equal to the participant's Severance Multiplier
multiplied by the greater of (x) the participant's target annual cash bonus for the fiscal year in which the Termination Date occurs and (y) the participant's "Lookback Bonus Amount" (which is the highest actual bonus paid to
or earned by the participant with respect to any of the three fiscal years immediately preceding the fiscal year in which the Qualifying Termination or change in control occurs, with any pro-rated bonuses annualized).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Pro-Rata Bonus.*** A lump sum cash payment equal to a pro-rata portion of the greater of (x) the
participant's target annual cash bonus for the fiscal year in which the Termination Date occurs and (y) the participant's Lookback Bonus Amount, pro-rated based on the number of days employed during the fiscal year of
termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***COBRA Benefits.*** If the participant elects COBRA continuation coverage, a lump sum cash payment equal to
the participant's COBRA Multiplier multiplied by the monthly COBRA premiums for the participant and covered dependents (less the applicable active employee contribution), determined as of the Termination Date.

All cash severance payments are generally payable in a lump sum as soon as practicable following the expiration of the release revocation period, but in no event later than ten (10) days following the end of such revocation period.

*Equity Award Acceleration* 

The CIC Severance Plan provides for automatic acceleration of all outstanding and unvested equity incentive awards held by a participant, effective upon the change in control (regardless of whether the participant's employment is terminated). Performance-based awards will be deemed achieved at the maximum possible payout level.

If a participant's employment is terminated without Cause or for Good Reason prior to the consummation of a change in control and such termination results in the forfeiture of unvested equity awards, and a change in control is consummated within 180 days thereafter, the participant will be entitled to receive an additional lump sum payment equal to the value of the forfeited equity awards as if such awards had remained outstanding and vested upon the change in control at the maximum payout level.

Except as modified by the CIC Severance Plan, upon a termination of employment for any reason, all outstanding equity incentive awards will be governed by the terms of the LTIP and the applicable award agreements.

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*Conditions to Benefits* 

A participant's entitlement to severance benefits under the CIC Severance Plan is conditioned on (a) the participant executing and delivering the participation agreement, and (b) the participant executing, and not revoking, a general release of claims in a form acceptable to the Company within the applicable time period.

*Interaction with Other Severance Arrangements* 

Any severance payable under the CIC Severance Plan is in lieu of, and not in addition to, any severance benefits the participant would otherwise be entitled to under any other severance policy, plan, or agreement maintained by the Company (unless such policy, plan, or agreement expressly provides otherwise). Severance under the CIC Severance Plan will be reduced by any severance benefits received under an alternative severance arrangement or by operation of statute.

*Administration, Amendment and Termination* 

The CIC Severance Plan is administered by the Administrator, which has exclusive authority to interpret the CIC Severance Plan and make all determinations regarding eligibility, benefits, and plan administration. The Company reserves the right to amend or terminate the CIC Severance Plan at any time upon at least 90 days' advance written notice to each participant; provided that, notwithstanding anything in the CIC Severance Plan, no amendment or termination that reduces or diminishes a participant's rights will be effective without the written consent of such participant.

***Employee Share Purchase Plan (the "ESPP")***

*Purpose of the ESPP* 

We intend to adopt the EagleRock Land, LLC ESPP in connection with this offering to provide eligible employees of the Company with an opportunity to purchase Class A shares at a reduced price through payroll deductions, thereby strengthening their commitment to the Company, motivating them, and attracting and retaining competent and dedicated persons.

*Summary Features of the ESPP* 

The ESPP is intended to qualify as an "employee share purchase plan" under Code Section 423. During regularly scheduled offering periods under the ESPP, participants will be able to authorize payroll deductions which will be applied to purchase Class A shares at a discount to the market price and in an amount determined in accordance with the ESPP's terms.

*Term* 

The ESPP may be terminated by the board at any time and for any reason, subject to the terms of the ESPP. The ESPP shall automatically terminate upon the purchase by participants of all Class A shares committed to the ESPP, unless the number of shares committed to the ESPP is increased by the board and approved by the shareholders of the Company.

*Eligible Participants* 

The ESPP provides that each employee of the Company who meets the eligibility requirements under the ESPP and are selected for participation by the Administrator (defined below), be eligible to participate with respect to an offering period if they are employed by the Company on the Grant Date (the first day of each of the offering period). Employees hired during an offering period will be eligible to participate in the next offering.

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The Administrator may exclude certain categories of employees from participating in any offering to the extent permitted by Code Section 423, including employees who have been employed less than two years, employees whose customary employment is 20 hours or less per week, employees whose customary employment is for not more than five months in any calendar year, highly compensated employees, and citizens or residents of a foreign jurisdiction where participation is prohibited under the laws of such jurisdiction or where compliance would cause the ESPP to violate the requirements of Code Section 423. In accordance with Code Section 423, no employee may be granted an option under the ESPP if immediately after the grant such employee would own shares possessing more than 5% of the total combined voting power or value of all classes of shares of the Company or any subsidiary.

*Securities Offered and Terms of Participation* 

The maximum number of Class A shares which may be purchased by all employees under the ESPP is , subject to adjustments as provided in the ESPP. Any shares relating to options which are granted but which subsequently lapse, are cancelled or are otherwise not exercised by the final date for exercise, shall be available for future grants of options. As of the date hereof, no rights to purchase Class A shares have been granted under the ESPP.

Eligible employees who elect to participate in the ESPP must authorize deductions from their base compensation prior to the beginning of the applicable offering period in accordance with procedures established by the Administrator. The ESPP is implemented through a series of offering periods, with the duration and frequency of offering periods determined by the Administrator. In no event shall an offering period exceed 27 months. The option price for each offering period will be % of the lesser of (i) the fair market value of a Class A share on the Grant Date or (ii) the fair market value of a Class A share on the Exercise Date (the last trading day of the offering period); provided that the Administrator may establish a higher option price for a given offering. Under the ESPP, each participant will be granted, on the Grant Date, an option to purchase on the Exercise Date, at the option price, the maximum number of whole Class A shares that his or her accumulated payroll deductions on the Exercise Date will pay for at such price. The option will automatically be deemed to be exercised if the employee is still a participant on the Exercise Date.

A participating employee may authorize a payroll deduction of up to % of his or her base compensation received during each offering period. A participant may not change the percentage of payroll deduction during an offering period, and a participant may not make additional payments to his or her account. Further, no employee will be granted an option which permits the employee's right to purchase Class A shares under all qualified employee share purchase plans of the Company to accrue at a rate that exceeds $25,000 in fair market value of the Class A shares (determined at the time the option is granted) for each calendar year in which such option is outstanding at any time.

A participant may, at any time on or before 15 days prior to the applicable Exercise Date (or such other date as may be selected by the Administrator), withdraw from participation in an offering by electing to withdraw all funds credited to the participant's account. Upon such withdrawal, the participant's option for that offering period will terminate, no further payroll deductions may be made for that offering period, and the withdrawn funds will be refunded to the participant without interest.

*Administration and Amendment* 

The ESPP will be administered by the Administrator, which shall be our board of directors or committee consisting of not less than two directors appointed by the board. Subject to the terms of the ESPP, the Administrator will have full and absolute discretion to interpret the ESPP and all options granted under the plan, make such rules as it deems necessary for the proper administration of the

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ESPP, and to make all other determinations necessary or advisable for the administration of the ESPP. The Administrator may delegate some or all of its authority to one or more employees to the extent permitted by applicable law.

The ESPP may be amended by the board at any time and to any extent deemed advisable, including any amendment deemed necessary to ensure compliance with Section 423 of the Code. The board may also suspend the operation of the ESPP for any period. However, no amendment or suspension shall reduce any amounts previously allocated to a participant's account, reduce a participant's rights with respect to Class A shares previously purchased, or adversely affect a participant's outstanding option without the participant's agreement. Any amendment changing the aggregate number of Class A shares committed to the ESPP and any other change for which shareholder approval is required under applicable Treasury regulations must be approved by the shareholders of the Company.

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**CORPORATE REORGANIZATION** 

EagleRock was formed as a Texas limited liability company by L&E on December 1, 2025. EagleRock has elected to be treated as a corporation for U.S. federal income tax purposes. EagleRock has not conducted and will not conduct any material business operations prior to the completion of the Corporate Reorganization, other than certain activities related to this offering.

Following the Corporate Reorganization, EagleRock will be the sole managing member of OpCo, will be responsible for all operational, management and administrative decisions relating to OpCo's business and will consolidate financial results of OpCo and its subsidiaries. OpCo will own all of the outstanding membership interests in our operating subsidiaries and will operate our assets through these various subsidiaries.

In connection with the completion of this offering, the following transactions have occurred, or will occur, in substantially the following order, which are collectively referred to in this prospectus as our "Corporate Reorganization":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OpCo will be formed by EagleRock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each of the Existing Owners will contribute cash to EagleRock in exchange for    Class B shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• L&E will contribute all of its subsidiaries (other than the Excluded Assets) to OpCo in exchange for
    OpCo Units and OpCo's assumption of the Predecessor Credit Facility (as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each of the Shallow Valley Owners and Double Eagle will contribute certain of their subsidiaries to OpCo in exchange for
    OpCo Units and     OpCo Units, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each of EagleRock's and OpCo's operating agreements will be amended and restated to facilitate this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to the Warrant Exercise Agreement, each TCW Entity will exercise a portion of its L&E Warrants and forfeit the
remaining portion, which will be irrevocably cancelled, immediately following which (i) L&E will distribute     OpCo Units and a corresponding number of Class B shares to the TCW Entities in redemption of the L&E
units received in respect of the Exercised Warrants, (ii) each Warrant Agreement will terminate and (iii) each of the Rollover TCW Entities will merge with one or more newly formed subsidiaries of EagleRock and receive one Class A share in exchange
for each OpCo Unit (and Class B share) it holds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EagleRock will issue     Class A shares in this offering to the public, representing 100% of the
economic rights in EagleRock, in exchange for the net proceeds of this offering at a price of $ per Class A share (the midpoint of the price range set forth on the cover page of this prospectus);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EagleRock will contribute all of the net proceeds from this offering (including any net proceeds from the exercise of the
underwriters' option to purchase additional Class A shares) to OpCo in exchange for a number of OpCo Units equal to the number of Class A shares issued in this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OpCo will use the net proceeds (including any net proceeds from the exercise of the underwriters' option to purchase
additional Class A shares) from this offering, as described in "Use of Proceeds."

To the extent the underwriters' option to purchase additional Class A shares is exercised in full or in part, EagleRock will contribute the net proceeds therefrom to OpCo in exchange for an additional

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number of OpCo Units equal to the number of Class A shares issued pursuant to the underwriters' option. OpCo intends to use such proceeds as described in "Use of Proceeds."

After giving effect to the Corporate Reorganization, this offering and assuming the underwriters' option to purchase additional Class A shares is not exercised:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Existing Owners and the TCW Entities will own all      of our Class B shares
(with     ,     ,     and     Class B shares held by L&E, Double Eagle, the Shallow Valley Owners and the TCW Entities, respectively), and the
TCW Rollover Entities will own   % of our Class A shares, representing   % of our common shares (or   %,   %,  % and   % held by L&E, Double Eagle, the Shallow
Valley Owners and the TCW Entities, respectively);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investors in this offering will own   of our Class A shares, representing   % of our common
shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EagleRock will own an approximate     % interest in OpCo; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Existing Owners and the TCW Entities will own an approximate   % interest in OpCo, including the indirect
interest in OpCo owned by the Rollover TCW Entities (or   %,   %,   % and   % held by L&E, Double Eagle, the Shallow Valley Owners and the TCW Entities, respectively).

The diagrams under "Summary—Organizational Structure" below depict a simplified version of our organization and ownership structure immediately before and after giving effect to this offering and the Corporate Reorganization.

For further details regarding the L&E Warrants, please see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Predecessor Liquidity and Capital Resources—L&E Warrants."

For further details on our agreements with OpCo and its affiliates, please see "Certain Relationships and Related Party Transactions."

**Holding Company Structure** 

Our post-offering organizational structure will allow our Existing Owners to retain a direct equity ownership in OpCo, which will be classified as a partnership for U.S. federal income tax purposes following the offering. Investors in this offering will, by contrast, hold a direct equity ownership in us in the form of Class A shares, and an indirect ownership interest in OpCo through our ownership of OpCo Units. Although we were formed as a limited liability company, we have elected to be taxed as a corporation for U.S. federal income tax purposes.

Pursuant to our LLC Agreement and the OpCo LLC Agreement, our capital structure and the capital structure of OpCo will generally replicate one another and will provide for customary antidilution mechanisms in order to maintain the one-for-one exchange ratio between the OpCo Units and our Class A shares.

For additional information, please see "Summary—Organizational Structure" and "Certain Relationships and Related Party Transactions—OpCo LLC Agreement."

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**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT** 

The following table sets forth the beneficial ownership of our common shares that will be issued and outstanding upon the consummation of this offering, the Corporate Reorganization and the related transactions and held by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person or group known to us to be beneficial owners of more than 5% of any class of our outstanding common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each director, director nominee and named executive officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group.

All information with respect to beneficial ownership has been furnished by the respective more than 5% shareholders, directors, director nominees and named executive officers, as the case may be. Unless otherwise noted, the mailing address of each listed beneficial owner is c/o 9655 Katy Freeway, Suite 375, Houston, Texas 77024. The following table does not reflect any of the Class A shares that more than 5% shareholders, directors and named executive officers may purchase in this offering through the directed share program described in "Underwriting—Directed Share Program."

To the extent that the underwriters sell more than Class A shares, the underwriters have the option to purchase up to an additional Class A shares from us. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional Class A shares. The table below does not reflect any shares to be issued pursuant to the LTIP.

The amounts and percentages of common shares beneficially owned are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities. Under the rules of the SEC, a person is deemed to be a "beneficial owner" of a security if that person has or shares voting power, which includes the power to vote or direct the voting of such security, or investment power, which includes the power to dispose of or to direct the disposition of such security. Securities that can be so acquired are deemed to be outstanding for purposes of computing such person's ownership percentage, but not for purposes of computing any other person's percentage. Under these rules, more than one person may be deemed beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest. Except as otherwise indicated in these footnotes, each of the persons or entities listed below has, to our knowledge, sole voting and investment power with respect to all common shares beneficially owned by them, except to the extent this power may be shared with a spouse.

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of Beneficial<br>Owner** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** |
| **Name of Beneficial<br>Owner** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Class A<br>Shares** | **Class A<br>Shares** | **Class B<br>Shares<sup>(1)</sup>** | **Class B<br>Shares<sup>(1)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** | **Class A<br>Shares** | **Class A<br>Shares** | **Class B<br>Shares<sup>(1)</sup>** | **Class B<br>Shares<sup>(1)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** |
| **Name of Beneficial<br>Owner** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** |
|  **5% Shareholders:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Lea & Eddy Holdings, LLC<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Double Eagle IV Midco, LLC<sup>(4)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Richard H. Coats<sup>(5)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Charles R. Wiggins<sup>(6)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  TCW Entities<sup>(7)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of Beneficial<br>Owner** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (No Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** | **Shares Beneficially Owned After this<br>Offering (Full Exercise)** |
| **Name of Beneficial<br>Owner** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Shares Beneficially<br>Owned Before<br>this Offering** | **Class A<br>Shares** | **Class A<br>Shares** | **Class B<br>Shares<sup>(1)</sup>** | **Class B<br>Shares<sup>(1)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** | **Class A<br>Shares** | **Class A<br>Shares** | **Class B<br>Shares<sup>(1)</sup>** | **Class B<br>Shares<sup>(1)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** | **Combined<br>Voting<br>Power<sup>(2)</sup>** |
| **Name of Beneficial<br>Owner** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** |
|  **Directors, Director Nominees and Named Executive Officers:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Greg Pipkin Jr. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Neal H. Shah |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Robert W. Hunt Jr. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Richard H. Coats |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Jeff S. Lott |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  James C. Nelson |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Stephanie Reed |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Michael W. Wallace |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  **Directors, Director Nominees and Executive Officers as a Group (Persons)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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\* Less than 1%. 

(1) Subject to the terms of the OpCo LLC Agreement, OpCo Unitholders (other than us) will have the right to redeem all or a
portion of their OpCo Units for Class A shares (or cash, at OpCo's election) at a redemption ratio of one Class A share for each OpCo Unit redeemed. In connection with any such redemption of OpCo Units, a corresponding number of
Class B shares will be cancelled. Please see "Certain Relationships and Related Party Transactions—OpCo LLC Agreement." Beneficial ownership of OpCo Units is not reflected as beneficial ownership of our Class A shares for
which such OpCo Units may be redeemed.

(2) Represents percentage of voting power of our Class A shares and Class B shares voting together as a single
class. OpCo Unitholders will hold one Class B share for each OpCo Unit that they own. Each Class B share has no economic rights, but entitles the holder thereof to one vote for each OpCo Unit held by such holder. Accordingly, OpCo
Unitholders collectively have a number of votes in us equal to the number of OpCo Units that they hold.

(3) Lea & Eddy Holdings, LLC is managed by a board of managers consisting of Dale Redman, Gregory Mabee, Elo Peter
Omavuezi, Jason Andreotes and Josh Brandt. No single manager has unilateral voting or dispositive authority over the shares held by Lea & Eddy Holdings, LLC, and all material decisions, including decisions regarding voting and disposition of the
Class A shares, require approval by a majority of the board of managers. The address of Lea & Eddy Holdings, LLC is 413 Veterans Airpark Lane, Suite 200, Midland, Texas 79705.

(4) Double Eagle IV Midco, LLC is controlled by its sole member Double Eagle IV Pledgeco, LLC, a Delaware limited liability
company, which is controlled by its sole member, Double Eagle Energy Holdings IV, LLC, a Delaware limited liability company, which is in turn controlled by EnCap Energy Capital Fund XI, L.P., a Texas limited partnership ("EnCap Fund
XI"). EnCap Fund XI is controlled by its general partner, EnCap Equity Fund XI GP, L.P., a Texas limited partnership ("EnCap Fund XI GP LP"), which is controlled by its general partner, EnCap Equity Fund XI GP, LLC, a Delaware
limited liability company ("EnCap Fund XI GP LLC"), which is controlled by its sole member, EnCap Investments L.P., a Delaware limited partnership ("EnCap Investments LP"), which is controlled by its general partner, EnCap
Investments GP, L.L.C., a Delaware limited liability company ("EnCap Investments GP"), which is controlled by its sole member, EnCap Investments Holdings, LLC, a Delaware limited liability company ("EnCap Investments
Holdings"), which is controlled by its managing member, EnCap Partners, LP, a Delaware limited partnership ("EnCap Partners LP"), which is controlled by its general partner, EnCap Partners GP, LLC, a Delaware limited liability
company ("EnCap Partners GP," together with EnCap Partners LP, EnCap Investments Holdings, EnCap Investments GP, EnCap Investments LP, EnCap Fund XI GP LLC, and EnCap Fund XI GP LP, the "EnCap Entities"). EnCap Partners GP is
managed by its managing members, David B. Miller, Gary R. Petersen, D. Martin Phillips, Robert L. Zorich, Jason M. DeLorenzo and Douglas E. Swanson, Jr., each of which may be deemed to beneficially own the listed securities. The address for the
EnCap Entities is 9651 Katy Freeway, Suite 600, Houston, Texas 77024. The address of Double Eagle IV Midco, LLC is 3724 Hulen Street, Fort Worth, Texas 76107.

(5) The address of Richard H. Coats is 400 N. Marienfeld Street, Midland, Texas 79701.

(6) The address of Charles R. Wiggins is 500 W. Illinois Avenue, Suite 620, Midland, Texas 79701.

(7) The funds and accounts managed by TCW include TCW DL HDR LLC, TCW Direct Lending Structured Solutions 2022 LLC, TCW Direct
Lending Structured Solutions 2019 LLC, TCW Brazos Fund LLC, TCW Skyline Lending LP, TCW DL HDR-S LLC, TCW WV Financing LLC, TCW Direct Lending Private Fund VIII LP, Safety National Casualty Corporation, Reliance Standard Life Insurance Company,
Philadelphia Indemnity Insurance Company and TCW Marina SL LLC. Voting and dispositive control of the securities held by each of the TCW Entities is exercised by the investment committee for the Private Credit Group (the "PCG IC") of
TCW. The PCG IC is comprised of Richard Miller, David Wang, Ryan Carroll, Mark Gertzof, Suzanne Grosso, James Synborski and Jim Bold. The PCG IC acts by majority consent and thus, in accordance with the "rule of three," none of the
members of the PCG IC is deemed to be a beneficial owner of the securities held by each of the TCW Entities. TCW disclaims beneficial ownership of the securities held by the TCW Entities except to the extent of any pecuniary interest it may have
therein. The address of TCW Asset Management Company LLC is 200 Clarendon Street, 51<sup>st</sup> Floor, Boston, Massachusetts 02116.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

**OpCo LLC Agreement** 

The OpCo LLC Agreement is filed as an exhibit to the registration statement of which this prospectus forms a part, and the following description of the OpCo LLC Agreement is qualified in its entirety by reference thereto.

Following this offering, under the OpCo LLC Agreement, each holder of an OpCo Unit (other than EagleRock) will, subject to certain limitations, have the Redemption Right to cause OpCo to acquire all or a portion of its OpCo Units (along with the cancellation of a corresponding number of our Class B shares) for, at OpCo's election, (i) Class A shares at a redemption ratio of one Class A share for each OpCo Unit redeemed, subject to applicable conversion rate adjustments, or (ii) cash in an amount equal to the Cash Election Amount of such Class A shares. Each redemption must involve at least 150,000 OpCo Units (or all OpCo Units then held by the redeeming holder, if less than 150,000), and redemptions may generally be exercised no more frequently than once per calendar quarter. More frequent redemptions are permitted in connection with a registered offering pursuant to the Registration Rights Agreement or a Rule 10b5-1 trading plan that has been approved by the Managing Member. Redemptions will also be subject to the conditions, timing, notice and other procedural requirements set forth in the OpCo LLC Agreement and applicable law, which may include blackout periods or other restrictions to ensure compliance with securities and other regulatory requirements. OpCo will determine whether to issue Class A shares or pay cash in an amount equal to the Cash Election Amount in lieu of the issuance of Class A shares based on facts in existence at the time of the decision, which we expect would include the relative value of the Class A shares (including the trading price for the Class A shares at the time), the cash purchase price, the availability of other sources of liquidity (such as an issuance of additional common shares) to acquire the OpCo Units and alternative uses for such cash. Alternatively, upon the exercise of the Redemption Right, we (instead of OpCo) will have the Call Right to, for administrative convenience, acquire each tendered OpCo Unit directly from an OpCo Unitholder for, at our election, (x) one Class A share, subject to applicable conversion rate adjustments, or (y) cash in an amount equal to the Cash Election Amount of such Class A shares. We may exercise the Call Right only if an OpCo Unitholder first exercises its Redemption Right, and an OpCo Unitholder may exercise its Redemption Right beginning immediately following the consummation of this offering, subject to certain limitations in the OpCo LLC Agreement and the expiration of lock-up restrictions. As the sole managing member of OpCo, our decision to pay the Cash Election Amount upon an exercise of the Redemption Right or Call Right may be made by a conflicts committee consisting solely of independent directors. In connection with any redemption of OpCo Units pursuant to the Redemption Right or acquisition of OpCo Units pursuant to the Call Right, a corresponding number of Class B shares held by the redeeming OpCo Unitholder will be automatically cancelled. Redemptions and exchanges will reduce the number of OpCo Units held by persons other than us, increase our direct ownership in OpCo and, to the extent settled in Class A shares, increase the number of publicly traded Class A shares outstanding and, upon the resale of such shares by Existing Owners, the public float.

Our acquisition (or deemed acquisition for U.S. federal income tax purposes) of OpCo Units pursuant to an exercise of the Redemption Right or the Call Right is expected to result in adjustments to the tax basis of the tangible and intangible assets of OpCo, and such adjustments will be allocated to us. These adjustments would not have been available to us absent our acquisition or deemed acquisition of OpCo Units and are expected to reduce the amount of cash tax that we would otherwise be required to pay in the future. The amount and timing of any such tax benefits will depend on a number of factors, including the price at which exchanges occur, the timing of redemptions, the nature and fair market value of the underlying assets at the time of the exchanges and applicable tax rates, and may vary significantly from period to period. The expected tax benefits are subject to the risk that the U.S. Internal Revenue Service could challenge all or part of the tax basis adjustments or the timing

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or amount of related deductions, and we may not prevail in any such challenge. Any realization of tax benefits may also be affected by future changes in tax law.

Our LLC Agreement will contain provisions effectively linking each OpCo Unit with one of our Class B shares such that Class B shares cannot be transferred without transferring an equal number of OpCo Units and vice versa. Accordingly, transfers, redemptions and exchanges will require corresponding transfers or cancellations, as applicable, and will be subject to the transfer restrictions, consents and other requirements set forth in the OpCo LLC Agreement and our LLC Agreement, as well as applicable securities laws. OpCo Unitholders may be required to provide customary representations and comply with procedural and timing requirements in connection with any redemption or exchange, and may be restricted from effecting redemptions or exchanges during lock-up periods, blackout windows or at times when they are in possession of material non-public information.

As the OpCo Unitholders cause their OpCo Units to be redeemed, holding other assumptions constant, our membership interest in OpCo will be correspondingly increased, the number of Class A shares outstanding will be increased, and the number of Class B shares will be decreased.

"Cash Election Amount" means, with respect to the Class A shares to be delivered to the redeeming OpCo Unitholder by OpCo pursuant to the Redemption Right or the Call Right, as applicable, (i) the amount of cash that would be received if the number of Class A shares to which the redeeming OpCo Unitholder would otherwise be entitled were sold at a per share price equal to the trailing 10-day volume weighted average price of a Class A share on such redemption date, net of actual or deemed offering expenses or (ii) if the Class A shares no longer trade on a securities exchange or automated or electronic quotation system, an amount equal to the Fair Market Value (as defined in the OpCo LLC Agreement) of one Class A share that would be obtained in an arm's-length transaction for cash between an informed and willing buyer and an informed and willing seller, neither of whom is under any compulsion to buy or sell and without regard to the particular circumstances of the buyer or seller.

Under the OpCo LLC Agreement, subject to the obligation of OpCo to make tax distributions and to reimburse us for our corporate and other overhead expenses, we will have the right to determine when dividends will be paid to the OpCo Unitholders and the amount of any such dividends.

Following this offering, if we authorize dividends, such dividends will be paid to the OpCo Unitholders generally on a pro rata basis in accordance with their respective percentage ownership of OpCo Units.

The OpCo Unitholders, including us, will be allocated their proportionate share of any taxable income or loss of OpCo pursuant to the OpCo LLC Agreement and will generally incur U.S. federal, state and local income taxes on their proportionate share of any net taxable income of OpCo. Net profits and net losses of OpCo generally will be allocated to OpCo Unitholders on a pro rata basis in accordance with their respective percentage ownership of OpCo Units, except that certain non-pro rata adjustments will be required to be made to reflect built-in gains and losses and tax depletion, depreciation and amortization with respect to such built-in gains and losses. The OpCo LLC Agreement will provide, to the extent cash is available and subject to the terms of any current or future debt or other arrangements, for pro rata tax distributions to the OpCo Unitholders in an amount generally intended to allow such holders to satisfy their respective income tax liabilities with respect to their allocable share of the income of OpCo, based on certain assumptions and conventions, provided that the distribution will be sufficient to allow us to satisfy our actual tax liabilities.

The OpCo LLC Agreement will provide that, except as otherwise determined by us or in connection with the exercise of the Call Right, at any time we issue a Class A share or any other equity

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security, the net proceeds received by us with respect to such issuance, if any, shall be concurrently invested in OpCo, and OpCo shall issue to us one OpCo Unit or other economically equivalent equity interest. Conversely, if at any time any Class A shares are redeemed, repurchased or otherwise acquired, OpCo shall redeem, repurchase or otherwise acquire an equal number of OpCo Units held by us, upon the same terms and for the same price, as the Class A shares are redeemed, repurchased or otherwise acquired.

Under the OpCo LLC Agreement, the members have agreed that our Existing Owners and their affiliates will be permitted to engage in business activities or invest in or acquire businesses that may compete with our business or do business with any client of ours.

**Registration Rights Agreement** 

In connection with the closing of this offering, we will enter into a registration rights agreement with our Existing Owners and the TCW Entities (the "Registration Rights Agreement") pursuant to which we will agree to register under the federal securities laws the offer and resale of all Class A shares owned by or underlying the Class B shares and OpCo Units owned by our Existing Owners or the TCW Entities or certain of their affiliates or permitted transferees. The Registration Rights Agreement will provide that, after the expiration of the lock-up period, any Holder (as defined in the Registration Rights Agreement) may request a demand registration or underwritten offering, provided that the Registrable Securities (as defined in the Registration Rights Agreement) to be included in such registration or offering have an aggregate value of at least $50 million (based on the volume weighted average price for the five trading days immediately preceding the date of the request). Additionally, certain of the Existing Owners and the TCW Entities will be subject to an additional lock-up period (the "Special Lock-Up") expiring on the earliest to occur of (i) the date on which Double Eagle and the Shallow Valley Owners have collectively sold securities for aggregate gross proceeds of $300 million, (ii)18 months following the date of the Registration Rights Agreement and (iii) the date on which Double Eagle terminates the Special Lock-Up in its sole discretion. Subject to certain exceptions, if at any time we propose to register an offering of Class A shares or conduct an underwritten offering, regardless of whether for our own account, then we must notify the Holders of such proposal, to allow them to include a specified number of their Class A shares in that registration statement or underwritten offering, as applicable, including Class A shares issuable upon the exchange of the OpCo Units and the cancellation of a corresponding number of our Class B shares.

We may suspend offers and sales under a shelf registration statement for up to 60 days per occurrence if our board of directors determines that a postponement is in our best interest due to a pending transaction, compliance with applicable securities laws, or to preserve material confidential information, provided that no such suspension periods may continue for more than 90 days in the aggregate during any consecutive 12-month period.

We will bear all registration expenses (excluding selling expenses such as underwriting discounts, selling commissions and stock transfer taxes), including fees and expenses of all persons retained by us, and the fees and expenses of one law firm of national standing selected by the Holders owning the majority of the Registrable Securities to be included in any such registration or offering. Any sales in the public market of our Class A shares registrable pursuant to the Registration Rights Agreement could adversely affect prevailing market prices of our Class A shares. See "Risk Factors—Risks Related to this Offering, Our Corporate Structure and Our Class A Shares—The market price of our Class A shares could be adversely affected by sales of substantial amounts of our Class A shares in the public or private markets or the perception in the public markets that these sales may occur, including sales by the Existing Owners after the exercise of the Redemption Right."

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**Contribution Agreement** 

***General***

In connection with the consummation of this offering, our Existing Owners and certain of their affiliates (the "Contributors") will enter into a contribution and assignment agreement (the "Contribution Agreement") that will govern the consummation of the Corporate Reorganization, including (i) the contribution by L&E of all of its subsidiaries (other than Hydrosource) to OpCo in exchange for OpCo Units and OpCo's assumption of the Predecessor Credit Facility, (ii) the contribution by the Shallow Valley Owners and Double Eagle of certain of their subsidiaries to OpCo in exchange for OpCo Units and (iii) the amendment and restatement of EagleRock's and OpCo's operating agreements, as described in more detail in "Corporate Reorganization."

The Contribution Agreement will be entered into by and among EagleRock, OpCo and the Existing Owners and certain of their affiliates, and will govern a series of transactions to combine the Contributors' respective businesses into OpCo in connection with this offering. Pursuant to the Contribution Agreement, each Contributor will form or designate a holding company subsidiary, effect multi-survivor mergers to consolidate specified assets into those holding companies and then contribute all of the equity interests in such holding companies to OpCo in exchange for OpCo Units and Class B Shares. As part of the transactions contemplated by the Contribution Agreement, L&E will distribute Hydrosource to Hydrosource Midstream, LLC, which is not owned or controlled by us, and following which we will not control, be controlled by or be under common control with Hydrosouce. The Contribution Agreement includes customary representations and warranties by each Contributor, on a several and not joint basis, regarding organization, authority, title to assets, compliance with laws, taxes, environmental matters, material contracts and financial statements, among others. It also contains interim operating covenants restricting the Contributors' conduct of business prior to closing, mutual obligations regarding Hart-Scott-Rodino Antitrust Improvements Act of 1976 compliance and provisions appointing a designated committee to oversee and make all decisions in connection with this offering. The Contribution Agreement may be terminated by mutual consent, for material breach, if the closing of this offering has not occurred by September 30, 2026, or upon termination by the designated person prior to this offering, and is governed by the laws of the State of Texas.

The Contribution Agreement provides that each Contributor, severally and not jointly, will indemnify us, OpCo and our respective subsidiaries against losses based on, arising out of or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a breach or inaccuracy of such Contributor's representations and warranties set forth in the Contribution Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• (i) any affidavits (including non-imputation affidavits), certificates, information (including financial data), lien
waivers and instruments of indemnification (including a so-called "gap" indemnification), and other documentation executed and delivered by such Contributor or such Contributor's contributed entities as shall be required by the
designated title company to induce such title company to issue policies of title insurance on our acreage or (ii) the inability of such title company to issue a title policy with respect to such Contributor's contributed real property
interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of such Contributor's tax obligations related to the transactions contemplated by the Contribution Agreement.

**Shareholder's Agreements** 

In connection with the closing of this offering, we and each of our Existing Owners will enter into a Shareholder's Agreement.

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The Shareholder's Agreements will provide that, subject to compliance with applicable law and NYSE and NYSE Texas rules, for so long as an Existing Owner, and its affiliates and certain transferees, beneficially owns at least 30%, 20% and 10% of our outstanding common shares, such Existing Owner shall be entitled to designate three directors, two directors and one director, respectively, for nomination to our board of directors. The board of directors is expected to initially consist of seven directors. If the size of the board of directors is increased or decreased to other than seven directors, each Existing Owner's nomination rights will be proportionately increased or decreased, respectively, rounded to the nearest whole number; provided that such adjustment will not reduce the number of directors an Existing Owner is entitled to nominate to fewer than the number set forth above, as long as such Existing Owner, and such affiliates and transferees, maintain the required beneficial ownership thresholds.

Of the directors designated by each of L&E and Double Eagle, at least two of each such Existing Owner's director designees (or if such Existing Owner is designating only one director, such Existing Owner's sole designee) must qualify as "independent" for the purposes of serving on the Audit Committee pursuant to the rules of the New York Stock Exchange and the Securities and Exchange Commission, as determined by the board of directors.

So long as an Existing Owner is entitled to designate one or more nominees to the board and notifies the board of directors of its desire to remove, with or without cause, any director previously designated by it to the board, we are required to take all necessary action to cause such removal.

The Shareholder's Agreements will prohibit each Existing Owner from granting any proxy or entering into or agreeing to be bound by any voting trust, agreement or arrangement with respect to its common shares if and to the extent the terms thereof conflict with the provisions of the Shareholder's Agreements.

Each Shareholder's Agreement with an Existing Owner will terminate when the applicable Existing Owner no longer holds board designation rights.

**Voting Agreements** 

In connection with this offering, we and each Existing Owner will enter into a Voting Agreement pursuant to which each Existing Owner, and certain of its transferees, will agree with us to vote all of the common shares that it owns in favor of all director nominees recommended for election by our board of directors. In the event an Existing Owner fails to vote as required by its Voting Agreement, the agreement grants an irrevocable proxy to our President and Chief Financial Officer and General Counsel to vote such Existing Owner's common shares in accordance with the Voting Agreement. The Voting Agreement does not restrict an Existing Owner's ability to sell, transfer or pledge its common shares. Each Voting Agreement with an Existing Owner will terminate upon the earliest to occur of: (a) the date on which such Existing Owner no longer beneficially owns any common shares subject to the Voting Agreement; (b) the mutual written consent of the parties; and (c) the date on which no Existing Owner has designation rights pursuant to a Shareholder's Agreement.

**Produced Water Recycling Rights Agreement with Hydrosource** 

In connection with this offering, we will enter into the Hydrosource Recycling Agreement with Hydrosource. Prior to this offering, there were no transactions pursuant to such agreement. The Hydrosource Recycling Agreement will be entered into concurrently with the closing of this offering and will govern our royalty revenue relationships with Hydrosource on a go-forward basis. This new agreement was negotiated in connection with this offering and is not an amendment or continuation of

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a historical arrangement. We do not own or control Hydrosource and following the Corporate Reorganization, we will not control, be controlled by or be under common control with Hydrosource. For more information, see "Business—Customers; Material Contracts and Marketing—Material Contracts and Marketing—Water Management Agreement with Hydrosource."

Under the Hydrosource Recycling Agreement, we will receive a royalty for recycled water stored, treated, processed, recycled, purchased or sold on our land, and for each barrel of recycled water sold off our land equal to a percentage of the gross selling price received by Hydrosource. The Hydrosource Recycling Agreement also includes a minimum annual royalty commitment of $5.0 million per year for the first five years of the initial term. The Hydrosource Recycling Agreement also contains provisions for additional royalty income if Hydrosource engages in additional revenue generating activities on our land including solid waste operations and sand mining operations.

**Water System Management Agreement with DEF Operating** 

In connection with this offering, we will enter into the DE Flow WSMA with DEF Operating, a wholly owned subsidiary of Double Eagle, one of our Existing Owners. Prior to this offering, there were no transactions pursuant to such agreement. The DE Flow WSMA will be entered into concurrently with the closing of this offering and will govern our royalty revenue relationships with DEF Operating on a go-forward basis. This new agreement was negotiated in connection with this offering and is not an amendment or continuation of a historical arrangement. For more information, see "Business—Customers; Material Contracts and Marketing—Material Contracts and Marketing—Water System Management Agreement with DEF Operating."

Under the DE Flow WSMA, we will receive a royalty equal to 90% of net proceeds generated by the assets operated by DEF Operating, which is equal to gross revenues, less costs associated with operating the system. The DE Flow WSMA also includes a minimum annual royalty commitment of $40.0 million per year for the first five years of the initial term and $10.0 million per year for the last five years of the initial term.

Pursuant to a put option agreement between Double Eagle and Hydrosource, Double Eagle has the right to sell, and Hydrosource has the obligation to purchase, DEF Operating if Double Eagle undergoes certain change of control events or at any time following five years from the date of this offering. If Double Eagle exercises such put right, Hydrosource would become the owner of DEF Operating, which is the party to the DE Flow WSMA and the minimum royalty obligation thereunder.

**Predecessor Credit Facility and L&E Warrants** 

On April 4, 2024, our predecessor and certain of its subsidiaries entered into the Predecessor Credit Facility with TCW and the lenders party thereto. As of December 31, 2025, we had $265.6 million of total outstanding borrowings consisting of $7.0 million of revolving credit borrowings and $258.6 million of term loan borrowings and excluding $35.1 million of unamortized premium. For the year ended December 31, 2025, the largest amount of total outstanding borrowings under the Predecessor Credit Facility was $281.5 million, the amount of principal paid was $23.8 million and interest expense was $21.2 million. We intend to use a portion of the net proceeds from this offering to repay in full, and terminate, the Predecessor Credit Facility.

In connection with its entry into the Predecessor Credit Facility, the predecessor issued the L&E Warrants, which are exercisable for equity interests in our predecessor, to the TCW Entities. Pursuant to the Warrant Exercise Agreement, each TCW Entity will exercise a portion of its L&E Warrants and forfeit the remaining portion, which will be irrevocably cancelled, immediately following which (i) L&E

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will distribute OpCo Units and a corresponding number of Class B shares to the TCW Entities in redemption of the L&E units received in respect of the Exercised Warrants, (ii) each Warrant Agreement will terminate and (iii) each of the Rollover TCW Entities will merge with one or more newly formed subsidiaries of EagleRock and receive one Class A share in exchange for each OpCo Unit (and Class B share) it holds.

For a complete discussion of the Predecessor Credit Facility and the L&E Warrants, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Predecessor Liquidity and Capital Resources—Predecessor Credit Facility" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Predecessor Liquidity and Capital Resources—L&E Warrants."

**Salt Water Disposal Agreements** 

Richard H. Coats, the chairman of our board of directors following this offering and beneficial owner of more than 5% of our common shares, is a party to Salt Water Disposal Agreements (the "SWD Agreements") with certain of our subsidiaries, pursuant to which he receives payments based on his working interest ownership in the SWDs subject to the SWD Agreements. Our subsidiaries also receive royalty payments for the use of their land where the SWDs are located. Pursuant to the SWD Agreements, customers pay the operator of the SWD for use of such SWD and the operator pays a royalty to the landowner on which the SWD is located and any remaining profit to the working interest owners of the SWD.

For the years ended December 31, 2025, 2024 and 2023, Mr. Coats received $256,031, $66,152 and $0 under the SWD Agreements in income after expenses, respectively. For the years ended December 31, 2025, 2024 and 2023, our subsidiaries received $300,015, $549,595 and $341,421 under the SWD Agreements, respectively.

In 2025, Richard H. Coats and Charles R. Wiggins, a beneficial owner of more than 5% of our common shares, acquired an SWD and are parties to an SWD Agreement with one of our subsidiaries for the SWD, pursuant to which they expect to receive payments in the future based on their working interest ownership in the SWD subject to the SWD Agreement. Our subsidiaries also receive royalty payments for the use of their land where the SWD is located. For the year ended December 31, 2025, Mr. Coats' working interest expenses exceeded his working interest income. For the year ended December 31, 2025, Mr. Wiggins' working interest expenses exceeded his working interest income. For the year ended December 31, 2025, our subsidiaries had not received a royalty payment, but are due $3,754 under the SWD Agreement.

**Review, Approval or Ratification of Transactions with Related Persons** 

Prior to the closing of this offering, we have not adopted a formal policy for approval of Related Party Transactions, but intend to do so following the closing of this offering. For as long as we are a "smaller reporting company," a "Related Party Transaction" is defined as any transaction, arrangement or relationship in which we or any of our current or future subsidiaries was, is or will be a participant, the amount of which involved exceeds the lesser of $120,000 or one percent of the average of our total assets at year-end for the last two completed fiscal years, and in which any Related Person had, has or will have a direct or indirect material interest. Once we no longer qualify as a "smaller reporting company," a "Related Party Transaction" will be defined as a transaction, arrangement or relationship in which we or any of our current or future subsidiaries was, is or will be a participant and the amount of which involved exceeds $120,000, and in which any Related Person had, has or will have a direct or indirect material interest. A "Related Person" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any person who is, or at any time during the applicable period was, one of our executive officers or one of our directors
or a director nominee;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any person who is known by us to be the beneficial owner of more than 5% of our outstanding common shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any immediate family member of any of the foregoing persons, which means any child, stepchild, parent, stepparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law of a director, director nominee, executive officer or a beneficial owner of more than 5% of our common shares, and any person (other than a tenant or
employee) sharing the household of such director, executive officer or beneficial owner of more than 5% of our common shares.

We anticipate that our board of directors will adopt a written related party transactions policy prior to the completion of this offering relating to approval of Related Party Transactions. Pursuant to this policy, we expect that, subject to certain exceptions, any such transactions, which, for the avoidance of doubt, will include transactions with our Existing Owners and their respective affiliates, may, at the sole discretion of our board of directors in light of the circumstances, be reviewed and approved or ratified by our Audit Committee or Conflicts Committee pursuant to the procedures included in our LLC Agreement. Not all conflicted transactions are required to be presented to a conflicts committee, and our board of directors expects to adopt a separate conflicts of interest policy for routine matters that may arise on an ongoing basis. In addition, our LLC Agreement provides that in the event a potential conflict of interest exists or arises between our Existing Owners or their respective affiliates (other than us or our subsidiaries), on the one hand, and us, any of our subsidiaries or any of our public shareholders, on the other hand, a resolution or course of action by our board of directors shall be deemed approved by all of our shareholders, and shall not constitute a breach of the fiduciary duties of members of our board of directors to us or our shareholders, if such resolution or course of action (i) is approved by a conflicts committee, which is composed entirely of one or more independent directors, (ii) is approved by shareholders holding a majority of our common shares that are disinterested parties, (iii) is determined by our board of directors to be on terms that, when taken together in their entirety, are no less favorable than those generally provided to or available from unrelated third parties or (iv) is determined by our board of directors to be fair and reasonable to us, taking into account the totality of the relationships between the parties involved (including other transactions that may be particularly favorable or advantageous to us). In determining whether to approve or ratify a Related Party Transaction, we expect that the appropriate parties will consider a variety of factors they deem relevant, such as: the terms of the transaction; the terms available to unrelated third parties; the benefits to us; and the availability of other sources for comparable assets, products or services. The terms of this policy will be reviewed annually by our board of directors, which may, in its sole discretion, choose to amend or replace this policy at any time.

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**DESCRIPTION OF SHARES** 

Upon completion of this offering, Class A shares will be issued and outstanding and Class B shares will be issued and outstanding and no preferred shares will be issued and outstanding.

The following summary of Class A shares, Class B shares and preferred shares does not purport to be complete and is qualified in its entirety by reference to the provisions of applicable law and to our LLC Agreement and our certificate of formation, which are filed as exhibits to the registration statement of which this prospectus is a part.

**Class A Shares** 

***Voting Rights***. Except as provided by applicable law or in our LLC Agreement, holders of Class A shares are entitled to one vote per share held of record on all matters to be voted upon by our shareholders generally. Holders of our Class A shares and Class B shares vote together as a single class on all matters presented to our shareholders for their vote or approval, except with respect to the amendment of certain provisions of our LLC Agreement that would alter or change the powers, preferences or special rights of the Class B shares so as to affect them adversely, which amendments must be approved by a majority of the votes entitled to be cast by the holders of the Class B shares affected by the amendment, voting as a separate class, or as otherwise required by applicable law. The holders of Class A shares do not have cumulative voting rights in the election of directors.

***Dividend Rights***. Holders of our Class A shares are entitled to ratably receive, in proportion to the Class A shares held by them, dividends (payable in cash, shares or otherwise) when and if declared by our board of directors, from time to time in its discretion, out of funds legally available for that purpose, subject to any statutory or contractual restrictions on the payment of dividends and to any prior rights and preferences that may be applicable to any outstanding preferred shares. To the extent OpCo makes distributions to us and the OpCo Unitholders, we intend to pay dividends in respect of our Class A shares out of some or all of such dividends, if any, remaining after the payment of taxes and other expenses. However, because our board of directors may determine to pay or not pay dividends in respect of our Class A shares based on the factors described above, holders of our Class A shares may not necessarily receive dividends, even if OpCo makes such distributions to us.

***Liquidation Rights***. Upon our liquidation, dissolution, distribution of assets or other winding up, the holders of Class A shares are entitled to receive ratably the assets available for distribution to the shareholders after payment of liabilities and the liquidation preference of any of our outstanding preferred shares.

***Other Matters***. Class A shares have no preemptive or conversion rights and are not subject to further calls or assessments by us. There are no sinking fund provisions applicable to the Class A shares. All outstanding Class A shares, including the Class A shares offered in this offering, are fully paid and non-assessable.

**Class B Shares** 

***Generally***. In connection with the Corporate Reorganization and this offering, each OpCo Unitholder will receive one Class B share for each OpCo Unit that it holds. Accordingly, OpCo Unitholders will have a number of votes in us equal to the aggregate number of OpCo Units that they hold. Class B shares cannot be transferred except in connection with a permitted transfer of a corresponding number of OpCo Units and vice versa.

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***Voting Rights***. Except as provided by applicable law or in our LLC Agreement, holders of our Class B shares are entitled to one vote per share held of record on all matters to be voted upon by our shareholders generally. Holders of our Class A shares and Class B shares vote together as a single class on all matters presented to our shareholders for their vote or approval, except with respect to the amendment of certain provisions of our LLC Agreement that would alter or change the powers, preferences or special rights of Class B shares so as to affect them adversely, which amendments must be approved by a majority of the votes entitled to be cast by the holders of the shares affected by the amendment, voting as a separate class, or as otherwise required by applicable law. The holders of Class B shares do not have cumulative voting rights in the election of directors.

***Dividend Rights***. Holders of our Class B shares do not have any right to receive dividends, unless the dividend consists of our Class B shares or of rights, options, warrants or other securities convertible into or redeemable, exercisable or exchangeable for Class B shares paid proportionally with respect to each outstanding Class B share and dividends consisting of Class A shares or of rights, options, warrants or other securities convertible into or redeemable, exercisable or exchangeable for Class A shares on the same terms is simultaneously paid to the holders of Class A shares.

***Liquidation Rights***. Holders of our Class B shares do not have any right to receive any distribution upon our liquidation, dissolution or other winding up.

***Other Matters***. Class B shares have no preemptive or conversion rights and are not subject to further calls or assessments by us. There are no redemption or sinking fund provisions applicable to the Class B shares. All outstanding Class B shares, including the Class B shares issued in connection with the Corporate Reorganization, are fully paid and non-assessable.

**Preferred Shares** 

Pursuant to our LLC Agreement, our board of directors by resolution may establish and issue from time to time one or more classes or series of preferred shares, with such number, powers, preferences, rights, qualifications, limitations, restrictions and designations, which may include distribution rates, relative voting rights, conversion or exchange rights, redemption rights, liquidation rights and other relative participation, optional or other special rights, qualifications, limitations or restrictions as may be fixed by our board of directors without any further shareholder approval, subject to any limitations prescribed by law. The rights with respect to a series of preferred shares may be more favorable to the holder(s) thereof than the rights attached to our common shares. It is not possible to state the actual effect of the issuance of any preferred shares on the rights of holders of our common shares until our board of directors determines the specific rights attached to such preferred shares. Except as provided by law or in a preferred share designation, the holders of preferred shares will not be entitled to vote at or receive notice of any meeting of shareholders. The effect of issuing preferred shares may include, among other things, one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restricting any dividends in respect of our Class A shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diluting the voting power of our common shares, including our Class A shares, or providing that holders of preferred
shares have the right to vote on matters as a separate class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairing the liquidation rights of our Class A shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delaying or preventing a change of control of us.

In addition, if we issue preferred shares, OpCo will concurrently issue to us an equal number of preferred units, corresponding to the preferred shares issued by us, and such preferred units will have substantially the same rights to distributions and other economic rights as those of our preferred shares.

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**Transfer Agent and Registrar** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will serve as the registrar and transfer agent for the Class A shares.

**Transfer of common shares** 

Upon the transfer of a common share in accordance with our LLC Agreement, the transferee of the common share shall be admitted as a member with respect to the class of common shares transferred when such transfer and admission are reflected in our books and records. Each transferee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• automatically becomes bound by the terms and conditions of our LLC Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• represents that the transferee has the capacity, power and authority to enter into our LLC Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• makes the consents, acknowledgements and waivers contained in our LLC Agreement, such as the approval of all transactions
and agreements that we are entering into in connection with our formation and this offering.

We will cause any transfers to be recorded on our books and records from time to time (or shall cause the registrar and transfer agent to do so, as applicable).

Upon a shareholder's election of a broker, dealer or other person to serve as nominee, agent or in some other representative capacity for such beneficial owner, we intend to treat such nominee holder as the absolute owner of the applicable common shares until we are notified of the revocation of such election. In that case, the beneficial holder's rights are limited solely to those that it has against the nominee holder as a result of any agreement between the beneficial owner and the nominee holder. Such treatment may limit the beneficial owner's recourse against us with respect to matters taken by the nominee holder pursuant to such agreement. To the extent a shareholder nominates a broker, dealer or other person to act as nominee, agent or in some other representative capacity for such shareholder, such shareholder should coordinate with such representative to communicate its intention with respect to exercising its rights as a shareholder.

Common shares are securities, and any transfers are subject to the laws governing the transfer of securities.

Until a common share has been transferred on our books, we and the transfer agent may treat the record holder of the common share as the absolute owner for all purposes, except as otherwise required by law or stock exchange regulations.

**Registration Rights** 

For a description of registration rights with respect to our Class A shares, see the information under the heading "Certain Relationships and Related Party Transactions—Registration Rights Agreement."

**Listing** 

We intend to apply for a dual listing of our Class A shares on the NYSE and NYSE Texas under the symbol "EROK."

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**OUR LLC AGREEMENT** 

**Organization and Duration** 

We were formed as a Texas limited liability company on December 1, 2025 and will remain in existence until dissolved in accordance with our LLC Agreement.

**Purpose** 

Under our LLC Agreement, we are permitted to engage in any business activity that lawfully may be conducted by a limited liability company organized under Texas law and, in connection therewith, to exercise all of the rights and powers conferred upon us pursuant to the agreements relating to such business activity.

**Agreement to be Bound by our LLC Agreement; Power of Attorney** 

By purchasing our common shares and such transfer being reflected on our transfer agent's books and records, you will be admitted as a member of our limited liability company and will be deemed to have agreed to be bound by the terms of our LLC Agreement.

Pursuant to our LLC Agreement, each shareholder and each person who acquires a common share from a shareholder grants to certain of our officers (and, if appointed, a liquidator) a power of attorney to, among other things, execute and file documents required for our qualification, continuance or dissolution. The power of attorney also grants certain of our officers and board of directors, as applicable, the authority to make certain amendments to, and to make consents and waivers under and in accordance with, our LLC Agreement.

**Amendment of Our LLC Agreement** 

Amendments to our LLC Agreement may be proposed only by or with the consent of our board of directors. To adopt a proposed amendment, our board of directors is required to call a meeting of our shareholders to consider and vote upon the proposed amendment or, prior to the Trigger Event, may seek written approval of the holders of the number of common shares required to approve the amendment. An amendment must be approved by (i) prior to the Trigger Event, the affirmative vote of the holders of a majority of our then-outstanding common shares and (ii) after the Trigger Event, the affirmative vote of the holders of at least 66 2/3% of our then-outstanding common shares.

***Prohibited Amendments.*** No amendment may be made that would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enlarge the obligations of any shareholder without such shareholder's consent, unless approved by at least a majority
of the type or class of common shares so affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide that we are not dissolved upon an election to dissolve our company by our board of directors that is approved by
holders of a majority of outstanding common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• change the term of existence of our company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• give any person the right to dissolve our company other than our board of directors' right to dissolve our company
with the approval of holders of a majority of the total combined voting power of our outstanding common shares.

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***No Shareholder Approval.*** Our board of directors may generally make amendments to our LLC Agreement without the approval of any shareholder or assignee to reflect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in our name, the location of our principal place of our business, our registered agent or our registered office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the admission, substitution, withdrawal or removal of shareholders in accordance with our LLC Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the merger of our company or any of its subsidiaries into, or the conveyance of all of our assets to, a newly-formed entity
if the sole purpose of that merger or conveyance is to effect a mere change in our legal form into another limited liability entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change that our board of directors determines to be necessary or appropriate for us to qualify or continue our
qualification as a company in which our members have limited liability under the laws of any state;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in our legal form from a limited liability company to a corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an amendment that our board of directors determines, based upon the advice of counsel, to be necessary or appropriate to
prevent us, members of our board of directors or our officers, agents or trustees from in any manner being subjected to the provisions of the Investment Company Act of 1940, the Investment Advisers Act of 1940, or "plan asset"
regulations adopted under the Employee Retirement Income Security Act of 1974, as amended ("ERISA") whether or not substantially similar to plan asset regulations currently applied or proposed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an amendment that our board of directors determines to be necessary or appropriate for the authorization of additional
securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any amendment expressly permitted in our LLC Agreement to be made by our board of directors acting alone;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an amendment effected, necessitated or contemplated by a merger agreement that has been approved under the terms of our LLC
Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any amendment that our board of directors determines to be necessary or appropriate for the formation by us of, or our
investment in, any corporation, partnership or other entity, as otherwise permitted by our LLC Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in our fiscal year or taxable year and related changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an amendment that sets forth the designations, rights, preferences, and duties of any class or series of shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other amendments substantially similar to any of the matters described in the clauses above.

In addition, our board of directors may make amendments to our LLC Agreement without the approval of any shareholder or assignee if our board of directors determines that those amendments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• do not adversely affect the shareholders in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are necessary or appropriate to satisfy any requirements, conditions or guidelines contained in any opinion, directive,
order, ruling or regulation of any federal or state agency or judicial authority or contained in any federal or state statute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are necessary or appropriate to facilitate the trading of common shares or to comply with any rule, regulation, guideline
or requirement of any securities exchange on which the Class A shares are or will be listed for trading, compliance with any of which our board of directors deems to be in the best interests of us and our shareholders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are necessary or appropriate for any action taken by our board of directors relating to splits or combinations of common
shares under the provisions of our LLC Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are required to effect the intent expressed in this prospectus or the intent of the provisions of our LLC Agreement or are
otherwise contemplated by our LLC Agreement.

**Termination and Dissolution** 

We will continue as a limited liability company until dissolved pursuant to our LLC Agreement. We will dissolve upon: (1) the election of our board of directors to dissolve us, if approved by the holders of a majority of our outstanding common shares; (2) the entry of a decree of judicial dissolution of the Company; or (3) at any time that we no longer have any shareholders, unless our business is continued in accordance with the TBOC.

Upon dissolution, our affairs will be wound up and our assets, including the proceeds from any liquidation thereof, will be applied and distributed in the following manner: (i) first, to creditors (including to the extent permitted by law, creditors who are members) in satisfaction of our liabilities, (ii) second, to establish cash reserves for contingent or unforeseen liabilities and (iii) third, to the members in proportion to the number of Class A shares owned by each of them, subject to any preferential rights held by preferred shareholders, if any.

**Books and Reports** 

We are required to keep appropriate books and records of our business at our principal offices, which may be kept electronically. The books and records will be maintained for both tax and financial reporting, as well as general company purposes. For financial reporting and tax purposes, our fiscal year is the calendar year. Our LLC Agreement provides that our shareholders have the right, subject to certain restrictions stated therein, to obtain access to certain of our books and records, including our share ledger and list of shareholders, upon reasonable demand for any purpose reasonably related to such shareholder's interest as a shareholder. We will use commercially reasonable efforts to furnish to shareholders an annual report containing audited consolidated financial statements and a report on those consolidated financial statements by our independent public accountants. We will be deemed to have made any such report available if we file such report with the SEC on EDGAR or make the report available on a publicly available website that we maintain.

**Anti-Takeover Effects of Texas Law and Our LLC Agreement** 

The following is a summary of certain provisions of our LLC Agreement that may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or takeover attempt via proxy contest or otherwise, or the removal of our incumbent officers and directors, that a shareholder might consider to be in its best interest, including those attempts that might result in a premium over the market price for the Class A shares. These provisions may also have the effect of preventing changes in our management. These provisions are designed to encourage persons seeking to acquire control of us to first negotiate with us. We believe that the benefits of increased protection and our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because, among other things, negotiation of these proposals could result in an improvement of their terms and the promotion of shareholder interests.

***Issuance of Additional Interests***

Our LLC Agreement authorizes us to issue an unlimited number of additional limited liability company interests of any type without the approval of our shareholders, subject to the rules of the

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NYSE and NYSE Texas. Any issuance of additional Class A shares or other limited liability company interests would result in a corresponding decrease in the proportionate ownership interests in us represented by, and could adversely affect the cash distributions related to and market price of, Class A shares then outstanding. These additional limited liability company interests may be utilized for a variety of corporate purposes, including future offerings to repay debt obligations, raise additional capital and fund corporate acquisitions. The existence of authorized but unissued limited liability company interests could render it more difficult or discourage an attempt to obtain control over us by means of a proxy contest, tender offer, merger or otherwise.

***Texas Business Combination Statute***

We are a limited liability company organized under Texas law. Some provisions of Texas law may delay or prevent a transaction that would cause a change in control.

Sections 21.601 through 21.610 of the TBOC, which provides that a Texas corporation may not engage in specified types of business combinations, including mergers, consolidations and asset sales, with a person, or an affiliate or associate of that person, who is an "affiliated shareholder," does not apply to a limited liability company, such as us, unless it elects to utilize it. We do not intend to elect for such provisions of the TBOC to apply to us.

***Other Provisions of Our LLC Agreement***

Our LLC Agreement provides that our board of directors shall initially consist of seven directors, and after this offering, the number of directors shall be such number as the board of directors may from time to time determine. At the closing of this offering, we will have a single class of directors, and directors will be subject to re-election on an annual basis at each annual meeting of shareholders. Additionally, the Existing Owners have the right to designate certain numbers of nominees to our board of directors pursuant to the Shareholder's Agreements. See "Description of Shares."

After the Trigger Event, our board of directors will be divided into three classes that are as nearly equal in number as is reasonably possible and each director will be assigned to one of the three classes. If at the time of the Trigger Event, any of the directors are designees of Double Eagle, such designees shall, at Double Eagle's election, be classified as members of the third class of directors. After the Trigger Event, at each annual meeting of shareholders, a class of directors will be elected for a three-year term to succeed the directors of the same class whose terms are then expiring. We believe that classification of our board of directors will help to assure the continuity and stability of our business strategies and policies, as determined by our board of directors following the Trigger Event. The classified board provision could increase the likelihood that incumbent directors will retain their positions after the Trigger Event. The staggered terms of directors may delay, defer or prevent a tender offer or an attempt to change control of us, even though a tender offer or change in control might be viewed by our shareholders to be in their best interest.

Our LLC Agreement does not provide for cumulative voting in the election of directors, which means that the holders of a majority of our issued and outstanding common shares can elect all of the directors standing for election, and the holders of the remaining common shares will not be able to elect any directors. Our Existing Owners' initial beneficial ownership of greater than 50% of our common shares means they will be able to control matters requiring shareholder approval, which includes the election of directors.

In addition, our LLC Agreement provides that after the Trigger Event, and subject to the terms of the Shareholder's Agreements, the affirmative vote of the holders of not less than two-thirds in voting power of all then-outstanding common shares entitled to vote generally in the election of our board of directors, voting together as a single class, shall be required to remove any director from office, and

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such removal may only be for "cause" (prior to such time, a director or the entire board of directors may be removed, with or without cause, at any time, by the affirmative vote of the holders of a majority of the total combined voting power of all of our outstanding common shares then entitled to vote at an election of directors).

After the Trigger Event, and subject to the terms of the Shareholder's Agreements, all vacancies, including newly created directorships, may, except as otherwise required by law or, if applicable, the rights of holders of a series of preferred shares, only be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum (prior to such time, vacancies may also be filled by shareholders holding a majority of the then-outstanding common shares entitled to vote generally in the election of directors voting together as a single class).

Pursuant to our LLC Agreement, preferred shares may be issued from time to time, and the board of directors is authorized to determine and alter all designations, preferences, rights, powers and duties thereof without limitation. See "Description of Shares—Preferred Shares."

***Ability of Our Shareholders to Act***

Prior to the Trigger Event, special shareholder meetings may be called at the request of our shareholders holding a majority of the then-outstanding common shares entitled to vote generally in the election of directors voting together as a single class. After the Trigger Event, our LLC Agreement will not permit our shareholders to call special shareholders meetings. Special meetings of shareholders may also be called by a majority of the board of directors or a committee of the board of directors that has been duly designated by the board of directors and whose powers include the authority to call such meetings. Written notice of any special meeting so called shall be given to each shareholder of record entitled to vote at such meeting not less than 10 or more than 60 days before the date of such meeting, unless otherwise required by law.

Prior to the Trigger Event, our LLC Agreement will allow our shareholders to act by written consent in lieu of a meeting of such shareholders, subject to the rights of the holders of any series of our preferred shares with respect to such series. After the Trigger Event, our shareholders may not act by written consent and may only take action at a duly called annual or special meeting of our shareholders.

Our LLC Agreement establishes advance notice procedures with respect to shareholder proposals and nominations of persons for election to our board of directors, other than nominations made by or at the direction of our board of directors or any committee thereof. In addition to any other applicable requirements, our LLC Agreement provides that for business to be properly brought before an annual meeting by a shareholder, including proposals to nominate candidates for election as directors at a meeting of shareholders, such shareholder must have given timely notice thereof in proper written form to our corporate secretary. To be timely, a shareholder's notice must be delivered to or mailed to and received at our principal executive offices (i) in the case of an annual meeting, not less than 90 days nor more than 120 days prior to the anniversary of the date on which we first made publicly available (whether by mailing, by filing with the SEC or by posting on an internet website) our proxy materials for the immediately preceding annual meeting of shareholders; provided, however, that in the event that no annual meeting of shareholders was held in the previous year, or the annual meeting is called for a date that is not within 30 days before or after such anniversary date, notice by a shareholder in order to be timely must be so received not earlier than the close of business on the 120th day and not later than the close of business on the later of the 90th day prior to such annual meeting or the tenth day following the day on which public disclosure of the date of the annual meeting was made and (ii) in the case of a special meeting, not earlier than the close of business on the 120th day prior to such special meeting and not later than the close of business on the later of the 90th day prior to such special meeting or the tenth day following the day on which public disclosure of

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the date of the special meeting was made. Pursuant to our LLC Agreement, any shareholder who intends to solicit proxies in support of any director nominees must comply with the content requirements of Rule 14a-19 of the Exchange Act at the time such shareholder complies with the earlier deadlines in the advance notice provisions of the LLC Agreement. For any nominations or any other business to be properly brought before an annual or special meeting by our Existing Owners that are parties to the Shareholder's Agreements, such person must submit notice thereof not later than the later of the close of business on the 30th day prior to the date the we first file our preliminary or definitive proxy statement related to such meeting pursuant to the Exchange Act or the tenth day following the day on which public announcement is first made of the date of the special meeting, and we and such person shall cooperate reasonably and in good faith with respect to the inclusion of such matters to be considered at such meeting.

However, no shareholder may submit a matter for consideration at an annual or special meeting of shareholders, other than director nominations and procedural resolutions that are ancillary to the conduct of the meeting, unless such shareholder holds a number of common shares, determined as of the date of submission of the proposal, equal to at least (i) $1 million in market value or (ii) 3% of our outstanding common shares. Such shareholder must also have held such number of common shares for a continuous period of at least six months before the date of the meeting, hold such common shares throughout the entire duration of the meeting and solicit the beneficial owners of Class A shares representing at least 67% of Class A shares entitled to vote on the proposal.

**Duties of Officers and Directors** 

Our LLC Agreement provides that our business and affairs shall be managed under the direction of our board of directors, which shall have the power to appoint our officers. Our LLC Agreement further provides that the authority and function of our board of directors and officers shall be identical to the authority and functions of a board of directors and officers of a corporation organized under the TBOC, except as expressly modified by the terms of the LLC Agreement. Finally, our LLC Agreement provides that, except as specifically provided therein, the fiduciary duties and obligations owed to us and to our members shall be the same as the respective duties and obligations owed by officers and directors of a corporation organized under the TBOC to the corporation and stockholders, respectively.

However, there are certain provisions in our LLC Agreement that modify duties and obligations owed by our directors and officers from those required under the TBOC and provide for exculpation and indemnification of our officers and directors that differ from the TBOC. First, our LLC Agreement provides that to the fullest extent permitted by applicable law, our directors or officers will not be liable to us. In contrast, if we were a corporation formed under the TBOC, a director or officer would be liable to us for (i) breach of the duty of loyalty to us or our shareholders, (ii) an act or omission not in good faith which constitutes a breach of duty or which involves intentional misconduct or knowing violations of the law, (iii) authorization of unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 21.316 of the TBOC, (iv) a transaction from which the director or officer derived an improper personal benefit, or (v) an act or omission for which the liability of a director or an officer is expressly provided for by an applicable statute.

Second, our LLC Agreement provides that we must indemnify our directors and officers for acts or omissions to the fullest extent permitted by law. In contrast, if we were a corporation formed under the TBOC, we could only indemnify directors and officers for acts or omissions if the director or officer acted in good faith and, in the case of conduct in the person's official capacity as a director, in a manner he or she reasonably believed to be in the best interests of the corporation and, in all other cases, that the person reasonably believed his or her conduct was not opposed to the best interests of the corporation and with respect to any criminal action or proceeding, that such person had no reasonable cause to believe his or her conduct was unlawful.

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Third, our LLC Agreement provides that in the event a potential conflict of interest exists or arises between any of our directors, officers, equity owners or their respective affiliates, including our Existing Owners or their affiliates (other than us or our subsidiaries), on the one hand, and us, any of our subsidiaries or any of our public shareholders, on the other hand, a resolution or course of action by our board of directors shall be deemed approved by all of our shareholders, and shall not constitute a breach of the fiduciary duties of members of the board to us or our shareholders, if such resolution or course of action is (i) approved by a conflicts committee or other committee of our board of directors, as applicable, which is composed entirely of one or more independent directors, (ii) approved by shareholders holding a majority of our common shares that are disinterested parties, (iii) determined by our board of directors to be on terms that, when taken together in their entirety, are no less favorable than those generally provided to or available from unrelated third parties or (iv) determined by our board of directors to be fair and reasonable to us, taking into account the totality of the relationships between the parties involved (including other transactions that may be particularly favorable or advantageous to us). Texas law permits corporations to adopt provisions renouncing any interest or expectancy in certain opportunities that are presented to the corporation or its officers, directors, or shareholders.

Fourth, our LLC Agreement provides that, in our capacity as the managing member of OpCo, our board of directors may approve amendments to the OpCo LLC Agreement relating to the mechanics of a redemption of OpCo Units (together with the cancellation of a corresponding number of Class B shares) for Class A shares without any duty to us.

In addition, our LLC Agreement provides that all conflicts of interest described in this prospectus are deemed to have been specifically approved by all of our shareholders.

In addition, pursuant to our LLC Agreement, shareholders are not entitled to dissenters' rights of appraisal in the event of a merger, consolidation or conversion, a sale of all or substantially all of the assets of us and our subsidiaries, or any other similar transaction or event.

Our LLC Agreement also provides that our board of directors may not cause us to sell, exchange or otherwise dispose of all or substantially all of our assets, in one transaction or a series of related transactions, without the affirmative vote or consent of the holders of a majority of our issued and outstanding voting common shares entitled to vote in the election of directors.

**Election of Members of Our Board of Directors** 

Prior to the Trigger Event and beginning with our first annual meeting of shareholders following this offering, members of our board of directors will be elected by the holders of a majority of our issued and outstanding voting common shares entitled to vote generally thereon, voting together as a single class. At the closing of this offering, our board of directors will initially consist of seven directors, serving as a single class and subject to re-election on an annual basis at each annual meeting of shareholders. In connection with this offering, we will enter into a Shareholder's Agreement with each of the Existing Owners, which will provide each Existing Owner with the right to designate a certain number of nominees to our board of directors so long as such Existing Owner and its respective affiliates and certain transferees collectively beneficially own a specified amount of the outstanding Class A and Class B shares. See "Certain Relationships and Related Party Transactions—Shareholder's Agreements." After the Trigger Event, our board will be divided into three classes that are, as nearly as possible, of equal size. If at the time of the Trigger Event, any of the Directors are designees of Double Eagle, such designees shall, at Double Eagle's election, be classified as members of the third class of Directors. Each class of directors is elected for a three-year term of office, with the terms staggered so that the term of only one class of directors expires at each annual meeting. The initial terms of the Class I, Class II and Class III directors will expire at the first, second and third, respectively, annual meeting following the Trigger Event. After the Trigger Event, any

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vacancy on the board of directors may be filled by a majority of the directors then in office, even if less than a quorum, subject to the rights of holders of a series of our preferred shares, if applicable.

**Removal of Members of Our Board of Directors** 

Prior to the Trigger Event, a director or the entire board of directors may be removed, with or without cause, at any time, by holders of a majority of the total combined voting power of all of our outstanding common shares then entitled to vote at an election of directors. After the Trigger Event, the affirmative vote of the holders of not less than two-thirds in voting power of all our then-outstanding common shares entitled to vote generally in the election of directors, voting together as a single class, shall be required to remove any or all of the directors from office, and such removal may only be for "cause." After the Trigger Event, any vacancy in the board of directors caused by any such removal may only be filled by the affirmative vote of a majority of directors then in office. Prior to the Trigger Event, vacancies may also be filled by shareholders holding a majority of our then-outstanding common shares entitled to vote generally in the election of directors voting together as a single class.

**Limited Liability** 

The TBOC provides that a member who receives a distribution from a Texas limited liability company in violation of the TBOC is not required to return the distribution to the company unless the member had knowledge of the violation. Under the TBOC, a limited liability company may not make a distribution to a member if, after the distribution, all liabilities of the company, other than liabilities related to a member's membership interest and liabilities for which the recourse of creditors is limited to specific property of the company, would exceed the fair value of the assets of the company. For the purpose of determining the fair value of the assets of a company, the TBOC provides that the fair value of property subject to liability for which recourse of creditors is limited to specified property of the company only if the fair value of that property exceeds the liability.

Our subsidiaries will initially conduct business only in the states of New Mexico and Texas. We may decide to conduct business in other states, and maintenance of limited liability for us, as a member of our operating subsidiaries, may require compliance with legal requirements in the jurisdictions in which the operating subsidiaries conduct business, including qualifying our subsidiaries to do business there. Limitations on the liability of shareholders for the obligations of a limited liability company have not been clearly established in certain jurisdictions. We will operate in a manner that our board of directors considers reasonable and necessary or appropriate to preserve the limited liability of our shareholders.

**Forum Selection** 

Our LLC Agreement will provide that unless we consent in writing to the selection of an alternative forum, the Business Court located in the Eleventh Business Court Division of the State of Texas will, to the fullest extent permitted by applicable law, be the sole and exclusive forum for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any derivative action or proceeding brought on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, other employees or
agents to us or our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim against us or any director or officer or other employee of ours arising pursuant to any
provision of the TBOC or our LLC Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim against us or any director or officer or other employee of ours for any other entity claims
(as defined in Section 2.115 of the TBOC).

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jurisdiction. Our LLC Agreement will also provide that, to the fullest extent permitted by applicable law, the United States District Court for the Southern District of Texas will be the sole and exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction.

Our LLC Agreement will also provide that any person or entity purchasing or otherwise acquiring any interest in our shares will be deemed to have notice of, and to have consented to, these exclusive forum provisions. This choice of forum provision may limit a shareholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, employees or agents, which may discourage such lawsuits against us and such persons. Alternatively, if a court were to find these provisions of our LLC Agreement inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our results of operations, cash flows and financial position.

**Waiver of Jury Trial** 

**Limitations on Liability and Indemnification of Directors and Officers** 

Our LLC Agreement provides that to the fullest extent permitted by applicable law, our directors or officers will not be liable to us. Our LLC Agreement also provides that we must indemnify our directors and officers for acts and omissions to the fullest extent permitted by law. We are also expressly authorized to advance certain expenses (including attorneys' fees and disbursements and court costs) to our directors and officers and carry directors' and officers' insurance providing indemnification for our directors and officers for some liabilities.

Prior to the completion of this offering, we intend to enter into separate indemnification agreements with each of our directors and executive officers. Each indemnification agreement will provide, among other things, for indemnification to the fullest extent permitted by law against liabilities that may arise by reason of such director's or executive officer's service to us. The indemnification agreements will provide for the advancement or payment of all expenses to the indemnitee, subject to certain exceptions. We also intend to enter into indemnification agreements with our future directors.

We believe that these indemnification provisions, agreements and insurance are useful to attract and retain qualified directors and officers.

**Corporate Opportunity** 

Under our LLC Agreement, to the extent permitted by law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each Unrestricted Party has the right to, and has no duty to abstain from, exercising such right to, engage or invest in
the same or similar business as us, do business with any of our clients, customers or vendors or employ or otherwise engage any of our officers, directors or employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if any Unrestricted Party acquires knowledge of a potential business opportunity, transaction or other matter, they have no
duty to offer or communicate such corporate opportunity to us, our shareholders or our affiliates;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have renounced any interest or expectancy in, or in being offered an opportunity to participate in, such corporate
opportunities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the event that any of our directors and officers who is also a director, officer or employee of our Existing Owners or
their respective affiliates acquire knowledge of such a corporate opportunity or is offered such a corporate opportunity, provided that this knowledge was not acquired using confidential information of ours and our subsidiaries and such person acted
in good faith, then such person is deemed to have fully satisfied such person's fiduciary duty and is not liable to us if our Existing Owners or their respective affiliates pursues or acquires the corporate opportunity or if such person did
not present the corporate opportunity to us. For purposes of our LLC Agreement, "confidential information" does not include information that is publicly available (other than as a result of a breach of confidentiality), already in the
possession of such person, available from a non-confidential source (provided such source is not bound by a confidentiality obligation to us), or independently developed by such person.

**Consent Rights** 

So long as Double Eagle directly or indirectly owns at least 20% of our issued and outstanding voting common shares, we shall not take and shall take all necessary action to cause any of our subsidiaries not to take, directly or indirectly (whether by amendment, merger, consolidation, reorganization or otherwise), any action (or enter into an agreement to take any action) to (i) increase or decrease the size of our board of directors or any committee of our board of directors or take any such action with respect to the governing body of any of our subsidiaries or (ii) incur debt for borrowed money (or liens securing such debt) in an amount that would result in outstanding debt for borrowed money less cash that exceeds our Consolidated Adjusted EBITDA (as defined in our LLC Agreement) (calculated on a pro forma basis for such incurrence and any acquisition being funded by such debt) for the four quarter period for which financial statements are available immediately prior to the proposed date of incurrence of such debt by 4.00 to 1.00, in each case, without the prior consent of Double Eagle. In addition, so long as Double Eagle holds at least 20% of our issued and outstanding voting common shares, no amendment, modification or waiver of our LLC Agreement or any other governing documents that materially and adversely affects Double Eagle, or its rights under our LLC Agreement, may be made without its consent. These consent rights will terminate, at such time as Double Eagle ceases to hold at least 20% of a majority of our issued and outstanding voting common shares.

**Shareholder's Agreements** 

The foregoing is limited and subject to in all respects, the rights and obligations included in the Shareholder's Agreements. For a discussion of the Shareholder's Agreements, see "Certain Relationships and Related Party Transactions—Shareholder's Agreements."

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our Class A shares. Future sales of our Class A shares in the public market, or the availability of such Class A shares for sale in the public market, could adversely affect the market price of our Class A shares prevailing from time to time. As described below, only a limited number of Class A shares will be available for sale shortly after this offering due to contractual and legal restrictions on resale. Nevertheless, sales of a substantial number of our Class A shares in the public market after such restrictions lapse, or the perception that those sales may occur, could adversely affect the prevailing market price of our Class A shares at such time and our ability to raise equity-related capital at a time and price we deem appropriate.

**Sales of Restricted Class A Shares** 

Upon the closing of this offering, we will have outstanding an aggregate of Class A shares. Of these Class A shares, all of the Class A shares (or Class A shares if the underwriters' option to purchase additional Class A shares is exercised in full) to be sold in this offering, other than any Class A shares sold pursuant to the directed share program, which may be subject to the lock-up restrictions described under "Underwriting—Directed Share Program," will be freely tradable without restriction or further registration under the Securities Act, unless the Class A shares are held or acquired by any of our "affiliates" as such term is defined in Rule 144 under the Securities Act. All remaining Class A shares held by our Existing Owners and the TCW Entities will be deemed "restricted securities" as such term is defined under Rule 144. The restricted securities were or will be issued and sold by us in private transactions and are eligible for public sale only if registered under the Securities Act or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which rules are summarized below.

In addition, subject to certain limitations and exceptions, our Existing Owners and the TCW Entities will have the right, pursuant to the Redemption Right, to cause OpCo to acquire all or a portion of their OpCo Units for Class A shares (on a one-for-one basis with the cancellation of a corresponding number of Class B shares, subject to any applicable conversion rate adjustments). Upon consummation of this offering, our Existing Owners and the TCW Entities will collectively hold OpCo Units, all of which (together with the cancellation of a corresponding number of Class B shares) will be redeemable for Class A shares. See "Certain Relationships and Related Party Transactions—OpCo LLC Agreement." The Class A shares we issue upon such redemptions would be "restricted securities" as defined in Rule 144 described below. However, upon the closing of this offering, we intend to enter into a registration rights agreement with our Existing Owners and the TCW Entities that will require us to register under the Securities Act these Class A shares. See "Certain Relationships and Related Party Transactions—Registration Rights Agreement."

As a result of the lock-up agreements described below and the provisions of Rule 144 and Rule 701 under the Securities Act, our Class A shares (excluding the Class A shares to be sold in this offering) that will be available for sale in the public market are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no Class A shares will be eligible for sale on the date of this prospectus or prior to 180 days after the date of this
prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A shares will be eligible for sale upon the expiration of the lock-up agreements, 100% of which are Class A shares that may be issued in exchange for OpCo Units (together with the cancellation of a corresponding number of Class B shares), beginning 180 days after the
date of this prospectus when permitted under Rule 144 or Rule 701.

**Lock-up Agreements** 

Subject to certain exceptions and under certain conditions, we, our Existing Owners, certain of their affiliates, the TCW Entities and all of our executive officers and directors have agreed or will agree

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with the underwriters not to, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of or transfer, without the prior written consent of Goldman Sachs & Co. LLC, Barclays Capital Inc. and J.P. Morgan Securities LLC, any Class A shares or securities convertible into or redeemable**,** exercisable or exchangeable for Class A shares, including OpCo Units and Class B shares, for a period of 180 days after the date of this prospectus. Please see the section titled "Underwriting" for a description of these lock-up provisions.

**Rule 144** 

In general, under Rule 144 under the Securities Act as currently in effect, a person (or persons whose Class A shares are aggregated) who is not deemed to have been an affiliate of ours at any time during the three months preceding a sale, and who has beneficially owned restricted securities within the meaning of Rule 144 for at least six months (including any period of consecutive ownership of preceding non-affiliated holders) would be entitled to sell those Class A shares, subject only to the availability of current public information about us. A non-affiliated person (who has been unaffiliated for at least the past three months) who has beneficially owned restricted securities within the meaning of Rule 144 for at least one year would be entitled to sell those Class A shares without regard to the provisions of Rule 144.

A person (or persons whose Class A shares are aggregated) who is deemed to be an affiliate of ours and who has beneficially owned restricted securities within the meaning of Rule 144 for at least six months would be entitled to sell within any three-month period a number of Class A shares that does not exceed the greater of one percent of the then outstanding Class A shares or the average weekly trading volume of our Class A shares reported through the NYSE during the four calendar weeks preceding the filing of notice of the sale. Such sales are also subject to certain manner of sale provisions, notice requirements and the availability of current public information about us.

**Rule 701** 

In general, under Rule 701 under the Securities Act, any of our employees, directors, officers, consultants or advisors who purchase or otherwise receive Class A shares from us in connection with a compensatory share or option plan or other written agreement before the effective date of this offering is entitled to sell such Class A shares 90 days after the effective date of this offering once we become subject to the reporting requirements of the Exchange Act in reliance on Rule 144, without having to comply with the holding period requirement of Rule 144 and, in the case of non-affiliates, without having to comply with the public information provisions of Rule 144. The SEC has indicated that Rule 701 will apply to typical share options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the Class A shares acquired upon exercise of such options, including exercises after the date of this prospectus.

**Shares Issued Under Employee Plans** 

We intend to file a registration statement on Form S-8 under the Securities Act to register Class A shares issuable under our LTIP. The registration statement on Form S-8 is expected to be filed following the effective date of the registration statement of which this prospectus is a part and will be effective upon filing. Accordingly, Class A shares registered under such registration statement may be made available for sale in the open market following the effective date of such registration statement, unless such Class A shares are subject to vesting restrictions with us, Rule 144 restrictions applicable to our affiliates or the lock-up restrictions described elsewhere in this prospectus.

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**Additional Interests** 

Our LLC Agreement provides that we may issue an unlimited number of limited liability company interests of any type at any time without a vote of the shareholders, subject to the rules of the NYSE. Any issuance of additional Class A shares or other limited liability company interests would result in a corresponding decrease in the proportionate ownership interest in us represented by, and could adversely affect the cash distributions related to and market price of, Class A shares then outstanding. Please see "Our LLC Agreement—Anti-Takeover Effects of Texas Law and Our LLC Agreement—Issuance of Additional Interests."

**Registration Rights** 

For a description of certain registration rights with respect to our Class A shares, see the information under the heading "Certain Relationships and Related Party Transactions—Registration Rights Agreement."

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**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS** 

The following is a summary of the material U.S. federal income tax considerations related to the purchase, ownership and disposition of our Class A shares by a non-U.S. holder (as defined herein) that acquired such Class A shares pursuant to this offering and holds our Class A shares as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This summary is based on the provisions of the Code, U.S. Treasury regulations promulgated thereunder, administrative rulings and judicial decisions, all as in effect on the date hereof, and all of which are subject to change or differing interpretations, possibly with retroactive effect. We cannot assure you that a change in law will not significantly alter the tax considerations that we describe in this summary. We have not sought any ruling from the IRS with respect to the statements made and the positions and conclusions described in the following summary, and there can be no assurance that the IRS or a court will agree with such statements, positions and conclusions.

This summary does not address all aspects of U.S. federal income taxation that may be relevant to non-U.S. holders in light of their personal circumstances. In addition, this summary does not address the impact of the Medicare surtax on certain net investment income, the alternative minimum tax, U.S. federal estate or gift tax laws, any state, local or non-U.S. tax laws or any tax treaties. This summary also does not address all U.S. federal income tax considerations that may be relevant to particular non-U.S. holders in light of their personal circumstances or that may be relevant to certain categories of investors that may be subject to special rules, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, insurance companies or other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt or governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "qualified foreign pension funds" as defined in Section 897(1)(2) of the Code (or any entities all of the
interests of which are held by a qualified foreign pension fund);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dealers in securities or foreign currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons whose functional currency is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations," "passive foreign investment companies," and corporations that
accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• traders in securities that use the mark-to-market method of accounting for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entities or arrangements treated as partnerships or other pass-through entities for U.S. federal income tax purposes or
holders of interests therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons deemed to sell our Class A shares under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that acquired our Class A shares through the exercise of employee stock options or otherwise as compensation
or through a tax-qualified retirement plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain former citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that hold our Class A shares as part of a straddle, appreciated financial position, synthetic security, hedge,
conversion transaction or other integrated investment or risk reduction transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who hold our Class B shares.

PROSPECTIVE INVESTORS SHOULD CONSULT WITH THEIR OWN TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS (INCLUDING ANY

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POTENTIAL FUTURE CHANGES THERETO) TO THEIR PARTICULAR SITUATION, AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR CLASS A SHARES ARISING UNDER ANY OTHER TAX LAWS, INCLUDING U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY U.S. STATE OR LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.

**Non-U.S. Holder Defined** 

For purposes of this discussion, a "non-U.S. holder" is a beneficial owner of our Class A shares that is not for U.S. federal income tax purposes a partnership or any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or
under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust (i) whose administration is subject to the primary supervision of a U.S. court and which has one or more
"United States persons" (within the meaning of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust or (ii) which has made a valid election under applicable U.S. Treasury
regulations to be treated as a United States person.

If a partnership (including an entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds our Class A shares, the tax treatment of a partner in the partnership generally will depend upon the status of the partner, upon the activities of the partnership and upon certain determinations made at the partner level. Accordingly, we urge partners in partnerships (including entities or arrangements treated as partnerships for U.S. federal income tax purposes) considering the purchase of our Class A shares to consult with their own tax advisors regarding the U.S. federal income tax considerations of the purchase, ownership and disposition of our Class A shares by such partnership.

**EagleRock Land, LLC U.S. Federal Income Taxation** 

Although we were formed as a limited liability company, we have elected to be taxed as a corporation for U.S. federal income tax purposes. Thus, we are generally obligated to pay U.S. federal income tax on our worldwide net taxable income.

**Dividends and Other Distributions** 

As described in the section entitled "Dividend Policy," we expect to make dividends to our Class A shareholders in amounts determined from time to time by our board of directors. In the event we distribute cash or other property to our Class A shareholders, such dividends will constitute "dividends" for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent such dividends exceed our current and accumulated earnings and profits, the dividends will be treated as a non-taxable return of capital to the extent of the non-U.S. holder's tax basis in our Class A shares (and will reduce such tax basis, until such basis equals zero) and thereafter as capital gain from the sale or exchange of such Class A shares. See "—Gain on Sale or Other Taxable Disposition of Class A Shares."

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Subject to the withholding requirements under FATCA (as defined herein) and with respect to effectively connected dividends, each of which is discussed below, any distribution made to a non-U.S. holder on our Class A shares generally will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the distribution unless an applicable income tax treaty provides for a lower rate. To receive the benefit of a reduced treaty rate, a non-U.S. holder must timely provide the applicable withholding agent with a properly executed IRS Form W-8BEN or IRS Form W-8BEN-E (or other applicable or successor form) certifying qualification for the reduced rate.

**Dividends paid to a non-U.S. holder that are effectively connected with a trade or business conducted by the non-U.S. holder in the United States (and, if required by an applicable income tax treaty, are treated as attributable to a permanent establishment maintained by the non-U.S. holder in the United States) generally will be taxed on a net income basis at the rates and in the manner generally applicable to United States persons (as defined under the Code). Such effectively connected dividends will not be subject to U.S. federal withholding tax (including backup withholding described below) if the non-U.S. holder satisfies certain certification requirements by providing the applicable withholding agent with a properly executed IRS Form W-8ECI certifying eligibility for exemption. If the non-U.S. holder is a corporation for U.S. federal income tax purposes, it may also be subject to a branch profits tax (at a 30% rate or such lower rate as specified by an applicable income tax treaty) on its effectively connected earnings and profits (as adjusted for certain items), which will include effectively connected dividends.** 

**Gain on Sale or Other Taxable Disposition of Class A Shares** 

Subject to the discussion below under "—Backup Withholding and Information Reporting," a non-U.S. holder generally will not be subject to U.S. federal income or withholding tax on any gain realized upon the sale or other taxable disposition of our Class A shares unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the non-U.S. holder is an individual who is present in the United States for a
period or periods aggregating 183 days or more during the calendar year in which the sale or disposition occurs and certain other conditions are met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with a trade or business conducted by the non-U.S. holder in the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment maintained by the non-U.S. holder
in the United States); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class A shares constitute a United States real property interest in the event that we are or become a United
States real property holding corporation ("USRPHC") for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of disposition or the non-U.S. holder's holding period for the Class A shares and as a result such gain is treated as effectively connected with a trade or business conducted by the non-U.S. holder in the United States.

A non-U.S. holder described in the first bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate as specified by an applicable income tax treaty) on the amount of such gain, which generally may be offset by U.S. source capital losses provided the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses.

A non-U.S. holder whose gain is described in the second bullet point above or, subject to the exceptions described in the next paragraph, the third bullet point above generally will be taxed on a net income basis at the rates and in the manner generally applicable to United States persons (as defined under the Code) unless an applicable income tax treaty provides otherwise. If the non-U.S. holder is a corporation for U.S. federal income tax purposes whose gain is described in the second bullet point

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above, then such gain would also be included in its effectively connected earnings and profits (as adjusted for certain items), which may be subject to a branch profits tax (at a 30% rate or such lower rate as specified by an applicable income tax treaty).

Generally, a corporation is a USRPHC if the fair market value of its United States real property interests equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in a trade or business. We believe that we currently are, and expect to remain for the foreseeable future, a USRPHC for U.S. federal income tax purposes. However, provided that our Class A shares are and continue to be "regularly traded on an established securities market" (within the meaning of the U.S. Treasury regulations), only a Non-U.S. Holder that actually or constructively owns, or owned at any time during the shorter of the five year period ending on the date of the disposition or the Non-U.S. Holder's holding period for the Class A shares, more than 5% of our Class A shares will be treated as disposing of a U.S. real property interest and will be taxable on gain realized on the disposition of our Class A shares as a result of our status as a USRPHC. If our Class A shares were not considered to be regularly traded on an established securities market, such holder (regardless of the percentage of shares owned) would be treated as disposing of a U.S. real property interest and would be subject to U.S. federal income tax on a taxable disposition of our Class A shares (as described in the preceding paragraph) and a 15% withholding tax would apply to the gross proceeds from such disposition (and to any distributions treated as a non-taxable return of capital or capital gain from the sale or exchange of such share as described above under "—Dividends and Other Distributions"). NON-U.S. HOLDERS SHOULD CONSULT WITH THEIR OWN TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE FOREGOING RULES TO THEIR OWNERSHIP AND DISPOSITION OF OUR CLASS A SHARES, INCLUDING REGARDING POTENTIALLY APPLICABLE INCOME TAX TREATMENT THAT MAY PROVIDE FOR DIFFERENT RULES.

**Backup Withholding and Information Reporting** 

Any dividends paid to a non-U.S. holder must be reported annually to the IRS and to the non-U.S. holder. Copies of these information returns may be made available to the tax authorities in the country in which the non-U.S. holder resides or is established. Payments of dividends to a non-U.S. holder generally will not be subject to backup withholding if the non-U.S. holder establishes an exemption by properly certifying its non-U.S. status on an IRS Form W-8BEN or IRS Form W-8BEN-E (or other applicable or successor form).

Payments of the proceeds from a sale or other disposition by a non-U.S. holder of our Class A shares effected by or through a U.S. office of a broker generally will be subject to information reporting and backup withholding (at the applicable rate) unless the non-U.S. holder establishes an exemption by properly certifying its non-U.S. status on an IRS Form W-8BEN or IRS Form W-8BEN-E (or other applicable or successor form) and certain other conditions are met. Information reporting and backup withholding generally will not apply to any payment of the proceeds from a sale or other disposition of our Class A shares effected outside the United States by a non-U.S. office of a broker. However, unless such broker has documentary evidence in its records that the non-U.S. holder is not a United States person and certain other conditions are met, or the non-U.S. holder otherwise establishes an exemption, information reporting will apply to a payment of the proceeds of the disposition of our Class A shares effected outside the United States by such a broker if it has certain relationships within the United States.

Backup withholding is not an additional tax. Rather, the U.S. federal income tax liability (if any) of persons subject to backup withholding will be reduced by the amount of tax withheld. If backup withholding results in an overpayment of taxes, a refund may be obtained, provided that the required information is timely furnished to the IRS.

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**Additional Withholding Requirements under FATCA** 

Sections 1471 through 1474 of the Code, and the U.S. Treasury regulations and administrative guidance issued thereunder ("FATCA"), impose a 30% withholding tax on "withholding payments" (as defined in the Code), including dividends on our Class A shares, if paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code) (including, in some cases, when such foreign financial institution or non-financial foreign entity is acting as an intermediary), unless (i) in the case of a foreign financial institution, such institution enters into an agreement with the U.S. government to withhold on certain payments, and to collect and provide to the U.S. tax authorities substantial information regarding U.S. account holders of such institution (which includes certain equity and debt holders of such institution, as well as certain account holders that are non-U.S. entities with U.S. owners); (ii) in the case of a non-financial foreign entity, such entity certifies that it does not have any "substantial United States owners" (as defined in the Code) or timely provides the applicable withholding agent with a certification identifying the direct and indirect substantial United States owners of the entity (in either case, generally on an IRS Form W-8BEN-E); or (iii) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules and provides appropriate documentation (such as an IRS Form W-8BEN-E). Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing these rules may be subject to different rules. Under certain circumstances, a holder might be eligible for refunds or credits of such taxes. While gross proceeds from a sale or other disposition of our Class A shares paid after January 1, 2019, would have originally been subject to withholding under FATCA, proposed U.S. Treasury regulations provide that such payments of gross proceeds do not constitute withholdable payments. Taxpayers may generally rely on these proposed U.S. Treasury regulations until they are revoked or final U.S. Treasury regulations are issued. Non-U.S. holders are encouraged to consult with their own tax advisors regarding the effects of FATCA on an investment in our Class A shares.

INVESTORS CONSIDERING THE PURCHASE OF OUR CLASS A SHARES ARE URGED TO CONSULT THEIR OWN TAX ADVISORS REGARDING THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS (INCLUDING ANY POTENTIAL CHANGES THERETO) TO THEIR PARTICULAR SITUATIONS AND THE APPLICABILITY AND EFFECT OF U.S. FEDERAL ESTATE AND GIFT TAX LAWS AND ANY STATE, LOCAL OR NON-U.S. TAX LAWS AND TAX TREATIES.

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**CERTAIN ERISA CONSIDERATIONS** 

The following is a summary of certain considerations associated with the acquisition and holding of our Class A shares by employee benefit plans that are subject to Title I of ERISA, plans, individual retirement accounts and other arrangements that are subject to Section 4975 of the Code or employee benefit plans that are governmental plans (as defined in Section 3(32) of ERISA), certain church plans (as defined in Section 3(33) of ERISA), non-U.S. plans (as described in Section 4(b)(4) of ERISA) or other plans that are not subject to the foregoing but may be subject to provisions under any other federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, "Similar Laws"), and entities whose underlying assets are considered to include "plan assets" of any such plan, account or arrangement (each, a "Plan").

This summary is based on the provisions of ERISA and the Code (and related regulations and administrative and judicial interpretations) as of the date of this prospectus. This summary does not purport to be complete, and no assurance can be given that future legislation, court decisions, regulations, rulings or pronouncements will not significantly modify the requirements summarized below. Any of these changes may be retroactive and may thereby apply to transactions entered into prior to the date of their enactment or release. This discussion is general in nature and is not intended to be all inclusive, nor should it be construed as investment or legal advice.

**General Fiduciary Matters** 

ERISA and the Code impose certain duties on persons who are fiduciaries of a Plan subject to Title I of ERISA or Section 4975 of the Code (an "ERISA Plan") and prohibit certain transactions involving the assets of an ERISA Plan and its fiduciaries or other interested parties. Under ERISA and the Code, any person who exercises any discretionary authority or control over the administration of an ERISA Plan or the management or disposition of the assets of an ERISA Plan, or who renders investment advice for a fee or other compensation to an ERISA Plan, is generally considered to be a fiduciary of the ERISA Plan.

In considering an investment in our Class A shares with a portion of the assets of any Plan, a fiduciary should consider the Plan's particular circumstances and all of the facts and circumstances of the investment and determine whether the acquisition and holding of such Class A shares is in accordance with the documents and instruments governing the Plan and the applicable provisions of ERISA, the Code, or any Similar Law relating to the fiduciary's duties to the Plan, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether the investment is prudent under Section 404(a)(1)(B) of ERISA and any other applicable Similar Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether, in making the investment, the ERISA Plan will satisfy the diversification requirements of
Section 404(a)(1)(C) of ERISA and any other applicable Similar Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether the investment is permitted under the terms of the applicable documents governing the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether in the future there may be no market in which to sell or otherwise dispose of the Class A shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether the acquisition or holding of such Class A shares will constitute a "prohibited transaction" under
Section 406 of ERISA or Section 4975 of the Code (please see discussion under "—Prohibited Transaction Issues" below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether the Plan will be considered to hold, as plan assets, (i) only such Class A shares or (ii) an
undivided interest in our underlying assets (please see the discussion under "—Plan Asset Issues" below).

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**Prohibited Transaction Issues** 

Section 406 of ERISA and Section 4975 of the Code prohibit ERISA Plans from engaging in specified transactions involving plan assets with persons or entities who are "parties in interest," within the meaning of ERISA, or "disqualified persons," within the meaning of Section 4975 of the Code, unless an exemption is available. A party in interest or disqualified person who engages in a non-exempt prohibited transaction may be subject to excise taxes and other penalties and liabilities under ERISA and the Code. In addition, the fiduciary of the ERISA Plan that engages in such a non-exempt prohibited transaction may be subject to penalties and liabilities under ERISA and the Code. The acquisition and/or holding of our Class A shares by an ERISA Plan with respect to which the issuer, the initial purchaser, or a guarantor is considered a party in interest or a disqualified person may constitute or result in a direct or indirect prohibited transaction under Section 406 of ERISA and/or Section 4975 of the Code, unless the investment is acquired and is held in accordance with an applicable statutory, class or individual prohibited transaction exemption.

Because of the foregoing, our Class A shares should not be acquired or held by any person investing "plan assets" of any Plan, unless such acquisition and holding will not constitute a non-exempt prohibited transaction under ERISA and the Code or a similar violation of any applicable Similar Laws.

**Plan Asset Issues** 

Additionally, a fiduciary of a Plan should consider whether the Plan will, by investing in our Class A shares, be deemed to own an undivided interest in our assets, with the result that we would become a fiduciary of the Plan and our operations would be subject to the regulatory restrictions of ERISA, including its prohibited transaction rules, as well as the prohibited transaction rules of the Code and any other applicable Similar Laws.

The Department of Labor (the "DOL") regulations provide guidance with respect to whether the assets of an entity in which ERISA Plans acquire equity interests would be deemed "plan assets" under some circumstances. Under these regulations, an entity's assets generally would not be considered to be "plan assets" if, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the equity interests acquired by ERISA Plans are "publicly offered securities" (as defined in the DOL regulations)-i.e., the equity interests are part of a class of securities that is widely held by 100 or more investors independent of the issuer and each other, are "freely transferable" (as defined in
the DOL regulations), and are either registered under certain provisions of the federal securities laws or sold to the ERISA Plan as part of a public offering under certain conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the entity is an "operating company" (as defined in the DOL regulations), i.e., it is primarily engaged in
the production or sale of a product or service, other than the investment of capital, either directly or through a majority-owned subsidiary or subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there is no significant investment by benefit plan investors, which is defined to mean that immediately after the most
recent acquisition by an ERISA Plan of any equity interest in the entity, less than 25% of the total value of each class of equity interest (disregarding certain interests held by persons (other than benefit plan investors) with discretionary
authority or control over the assets of the entity or who provide investment advice for a fee (direct or indirect) with respect to such assets, and any affiliates thereof) is held by ERISA Plans, individual retirement accounts and certain other
Plans (but not including governmental plans, foreign plans and certain church plans), and entities whose underlying assets are deemed to include plan assets by reason of a Plan's investment in the entity.

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Due to the complexity of these rules and the excise taxes, penalties and liabilities that may be imposed upon persons involved in non-exempt prohibited transactions, it is particularly important that fiduciaries, or other persons considering acquiring and/or holding our Class A shares on behalf of, or with the assets of, any Plan, consult with their counsel regarding the potential applicability of ERISA, Section 4975 of the Code and any Similar Laws to such investment and whether an exemption would be applicable to the acquisition and holding of such Class A shares. Purchasers of our Class A shares have the exclusive responsibility for ensuring that their acquisition and holding of such Class A shares comply with the fiduciary responsibility rules of ERISA and do not violate the prohibited transaction rules of ERISA, the Code or applicable Similar Laws. The sale of our Class A shares to a Plan is in no respect a representation by us or any of our respective affiliates or representatives that such an investment meets all relevant legal requirements with respect to investments by any such Plan or that such investment is appropriate for any such Plan.

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**UNDERWRITING** 

We and Goldman Sachs & Co. LLC, Barclays Capital Inc. and J.P. Morgan Securities LLC, as representatives of the underwriters named below, have entered into an underwriting agreement with respect to our Class A shares being offered. Subject to certain conditions, each underwriter has severally agreed to purchase the number of Class A shares indicated in the following table.

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| | |
|:---|:---|
| **Underwriters** | **Number of<br>Class A Shares** |
|  Goldman Sachs & Co. LLC |  |
|  Barclays Capital Inc. |  |
|  J.P. Morgan Securities LLC |  |
|  Piper Sandler & Co. |  |
|  Raymond James & Associates, Inc. |  |
|  KeyBanc Capital Markets Inc. |  |
|  PEP Advisory LLC |  |
|  Stephens Inc. |  |
|  TCBI Securities, Inc., doing business as Texas Capital Securities |  |
|  Total |  |

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The underwriters are committed to purchase and pay for all of the Class A shares being offered, if any are purchased, other than the Class A shares covered by the option described below unless and until this option is exercised. The underwriting agreement also provides that if an underwriter defaults, the purchase commitments of non-defaulting underwriters may be increased or the offering may be terminated.

The underwriters have an option to buy up to an additional Class A shares from us to cover sales by the underwriters of a greater number of Class A shares than the total number set forth in the table above. They may exercise that option for 30 days after the date of the underwriting agreement. If any Class A shares are purchased pursuant to this option, the underwriters will severally purchase Class A shares in approximately the same proportion as set forth in the table above.

The following table shows the per share and total underwriting discounts and commissions to be paid to the underwriters by us. Such amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional Class A shares.

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| | | |
|:---|:---|:---|
| **Paid by the Company** | **No Exercise** | **Full Exercise** |
|  Per Class A Share | $| $|
|  Total | $| $|

---

Class A shares sold by the underwriters to the public will initially be offered at the initial public offering price set forth on the cover of this prospectus. Any Class A shares sold by the underwriters to securities dealers may be sold at a discount of up to $ per share from the initial public offering price. After the initial offering of the Class A shares, the underwriters may change the offering price and the other selling terms. The offering of the Class A shares by the underwriters is subject to receipt and acceptance and subject to the underwriters' right to reject any order in whole or in part.

We, certain of our security holders, officers and directors have agreed with the underwriters not to, subject to certain exceptions, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of or transfer any of their Class A shares or securities convertible into or exchangeable for Class A shares during the period from the date of this prospectus continuing through the date 180 days after the date of this prospectus, except with the prior written consent of Goldman Sachs & Co. LLC, Barclays Capital Inc. and J.P. Morgan Securities LLC.

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This agreement does not apply to any existing employee benefit plans. See "Shares Eligible for Future Sale" for a discussion of certain transfer restrictions.

The representatives, in their sole discretion and subject to applicable requirements, may release the Class A shares and other securities subject to the lock-up agreements described above in whole or in part at any time. When determining whether or not to release the Class A shares and other securities from lock-up agreements, the representatives will consider, among other factors, the holder's reasons for requesting the release and the number of Class A shares or other securities for which the release is being requested.

Prior to the offering, there has been no public market for our Class A shares. The initial public offering price will be negotiated among us and our representatives. Among the factors to be considered in determining the initial public offering price of our Class A shares, in addition to prevailing market conditions, will be our historical performance, estimates of the business potential and our earnings prospects, an assessment of our management and the consideration of the above factors in relation to market valuation of companies in related businesses.

We intend to apply to list our Class A shares on the NYSE and NYSE Texas under the symbol "EROK." In order to meet one of the requirements for listing the Class A shares on the NYSE, the underwriters will undertake to sell lots of 100 or more Class A shares to a minimum of 400 beneficial holders.

We estimate that the total expenses of the offering, excluding underwriting discounts, will be approximately $. We have also agreed to reimburse the underwriters for certain of their expenses in an amount up to $.

We have agreed to indemnify the several underwriters against certain liabilities, including liabilities under the Securities Act.

**Certain Relationships** 

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, market making, brokerage, financing and other financial and non-financial activities and services. Certain of the underwriters and their respective affiliates have from time to time performed, and may in the future perform, various financial advisory, commercial banking and investment banking services for us and for our affiliates in the ordinary course of business for which they have received and would receive customary fees and expenses. In addition, JP Morgan Chase Bank, N.A., an affiliate of one of the underwriters, serves as administrative agent under our Credit Facility, and certain of the other underwriters in this offering are lenders under such facility.

In the ordinary course of their various business activities, the underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans and credit default swaps) for their own account and for the accounts of their customers, and such investments and securities activities may involve securities and/or instruments of ours. The underwriters and their respective affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

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**Stabilization** 

In connection with the offering the underwriters may engage in stabilizing transactions, short sales transactions, syndicate covering transactions, penalty bids and passive market making in accordance with Regulation M under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a
specified maximum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Short sales involve sales by the underwriters of Class A shares in excess of the number of Class A shares the
underwriters are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position or a naked short position. In a covered short position, the short position is not greater than the number of
Class A shares that they may purchase in their option to purchase additional Class A shares. In a naked short position, the short position is greater than the number of Class A shares in their option to purchase additional
Class A shares. The underwriters may close out any covered short position by either exercising their option to purchase additional Class A shares and/or purchasing Class A shares in the open market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Syndicate covering transactions involve purchases of Class A shares in the open market after the distribution has been
completed in order to cover syndicate short positions. In determining the source of Class A shares to close out the short position, the underwriters will consider, among other things, the price of Class A shares available for purchase in
the open market as compared to the price at which they may purchase Class A shares through the option to purchase additional Class A shares. If the underwriters sell more Class A shares than could be covered by the option to purchase
additional Class A shares, a naked short position, the position can only be closed out by buying Class A shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there could be
downward pressure on the price of the Class A shares in the open market after pricing that could adversely affect investors who purchase in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Penalty bids permit the representatives to reclaim a selling concession from a syndicate member when the Class A
shares originally sold by the syndicate member are purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In passive market making, market makers in the Class A shares who are underwriters or prospective underwriters may,
subject to limitations, make bids for or purchases of Class A shares until the time, if any, at which a stabilizing bid is made.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of the Class A shares or preventing or retarding a decline in the market price of the Class A shares. As a result, the price of the Class A shares may be higher than the price that might otherwise exist in the open market. These transactions may be effected on the NYSE, in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.

**Electronic Prospectus** 

This prospectus may be made available in electronic format on Internet sites or through other online services maintained by the underwriters or their affiliates. In those cases, prospective investors may view offering terms online and may be allowed to place orders online. Other than this prospectus in electronic format, any information on the underwriters' or their affiliates' websites and any information contained in any other website maintained by the underwriters or any affiliate of the underwriters is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriters and should not be relied upon by investors.

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**Directed Share Program** 

At our request, the underwriters will reserve up to % of the Class A shares being offered by this prospectus for sale at the initial public offering price to our directors, officers, employees and other individuals associated with us and members of their families. The sales will be made by Raymond James & Associates, Inc., an underwriter of this offering, through a directed share program. We do not know if these persons will choose to purchase all or any portion of these reserved Class A shares, but any purchases they do make will reduce the number of Class A shares available to the general public. Any reserved Class A shares not so purchased will be offered by the underwriters to the general public on the same terms as the other Class A shares. Directors, officers and other employees that participate in the directed share program will be subject to a 180-day lock-up with respect to any Class A shares sold to them pursuant to that program. This lock-up will have similar restrictions and extension provision to the lock-up agreements described above. Any Class A shares sold in the directed share program to our directors or officers will be subject to the lock-up agreements described above. We will agree to indemnify the underwriters against certain liabilities and expenses, including liabilities under the Securities Act, in connection with the sales of Class A shares reserved for the directed share program.

Other than the underwriting discounts described on the cover page of this prospectus, the underwriters will not be entitled to any commissions with respect to shares of the Class A shares sold pursuant to the directed share program.

**Selling Restrictions** 

***European Economic Area***

In relation to each Member State of the European Economic Area (each a "Relevant State"), no Class A shares (have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the Class A shares which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation), except that the Class A shares may be offered to the public in that Relevant State at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any qualified investor as defined under Article 2 of the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the Prospectus
Regulation), subject to obtaining the prior consent of the Representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation, provided that no such offer of
Class A shares shall require us or any Representative to publish a prospectus pursuant to Article 3 of the Prospectus Regulation, supplement a prospectus pursuant to Article 23 of the Prospectus Regulation or publish an Annex IX document
pursuant to Article 1(4) of the Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the Class A shares in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any Class A shares to be offered so as to enable an investor to decide to purchase or subscribe for any Class A shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

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***United Kingdom***

No Class A shares have been offered or will be offered pursuant to the offering to the public in the United Kingdom except that the Class A shares may be offered to the public in the United Kingdom at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where the offer is conditional on the admission of the Class A shares to trading on the London Stock Exchange plc's
main market (in reliance on the exception in paragraph 6(a) of Schedule 1 of the POATR);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to any qualified investor as defined under paragraph 15 of Schedule 1 of the POATR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to fewer than 150 persons (other than qualified investors as defined under paragraph 15 of Schedule 1 of the POATR),
subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in any other circumstances falling within Part 1 of Schedule 1 of the POATR.

For the purposes of this provision, the expression an "offer to the public" in relation to the Class A shares in the United Kingdom means the communication to any person which presents sufficient information on: (a) the Class A shares to be offered; and (b) the terms on which they are to be offered, to enable an investor to decide to buy or subscribe for the Class A shares and the expressions "POATR" means the Public Offers and Admissions to Trading Regulations 2024.

***Canada***

The Class A shares may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions, and Ongoing Registrant Obligations. Any resale of the Class A shares must be made in accordance with an exemption form, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

***Hong Kong***

The Class A shares may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) ("Companies (Winding Up and Miscellaneous Provisions) Ordinance") or which do not constitute an invitation to the public within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) ("Securities and Futures Ordinance"), or (ii) to "professional investors" as defined in the Securities and Futures Ordinance and any rules made thereunder, or (iii) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up

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and Miscellaneous Provisions) Ordinance, and no advertisement, invitation or document relating to the Class A shares may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to Class A shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" in Hong Kong as defined in the Securities and Futures Ordinance and any rules made thereunder.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the Class A shares may not be circulated or distributed, nor may the Class A shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA")) under Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the Class A shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for six months after that corporation has acquired the Class A shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer in that corporation's securities pursuant to Section 275(1A) of the SFA, (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore ("Regulation 32")

Where the Class A shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for six months after that trust has acquired the Class A shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32.

***Japan***

The Class A shares have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended), or the FIEA. The Class A shares may not

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be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.

***Switzerland***

We have not and will not register with the Swiss Financial Market Supervisory Authority ("FINMA") as a foreign collective investment scheme pursuant to Article 119 of the Federal Act on Collective Investment Scheme of 23 June 2006, as amended ("CISA"), and accordingly the Class A shares being offered pursuant to this prospectus have not and will not be approved, and may not be licensable, with FINMA. Therefore, the Class A shares have not been authorized for distribution by FINMA as a foreign collective investment scheme pursuant to Article 119 CISA and the Class A shares offered hereby may not be offered to the public (as this term is defined in Article 3 CISA) in or from Switzerland. The Class A shares may solely be offered to "qualified investors," as this term is defined in Article 10 CISA, and in the circumstances set out in Article 3 of the Ordinance on Collective Investment Scheme of 22 November 2006, as amended ("CISO"), such that there is no public offer. Investors, however, do not benefit from protection under CISA or CISO or supervision by FINMA. This prospectus and any other materials relating to the Class A shares are strictly personal and confidential to each offeree and do not constitute an offer to any other person. This prospectus may only be used by those qualified investors to whom it has been handed out in connection with the offer described herein and may neither directly or indirectly be distributed or made available to any person or entity other than its recipients. It may not be used in connection with any other offer and shall in particular not be copied and/or distributed to the public in Switzerland or from Switzerland. This prospectus does not constitute an issue prospectus as that term is understood pursuant to Article 652a and/or 1156 of the Swiss Federal Code of Obligations. We have not applied for a listing of the Class A shares on the SIX Swiss Exchange or any other regulated securities market in Switzerland, and consequently, the information presented in this prospectus does not necessarily comply with the information standards set out in the listing rules of the SIX Swiss Exchange and corresponding prospectus schemes annexed to the listing rules of the SIX Swiss Exchange.

***Dubai International Financial Centre***

This prospectus relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for the prospectus. The Class A shares to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the Class A shares offered should conduct their own due diligence on the Class A shares. If you do not understand the contents of this prospectus, you should consult an authorized financial advisor.

***Australia***

No placement document, prospectus, product disclosure statement, or other disclosure document has been lodged with the Australian Securities and Investments Commission in relation to the offering. This prospectus does not constitute a prospectus, product disclosure statement, or other disclosure document under the Corporations Act 2001 (the "Corporations Act"), and does not purport to include the information required for a prospectus, product disclosure statement, or other disclosure document under the Corporations Act.

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Any offer in Australia of the Class A shares may only be made to persons (the "Exempt Investors") who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act) or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the Class A shares without disclosure to investors under Chapter 6D of the Corporations Act.

The Class A shares applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring Class A shares must observe such Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives, and circumstances, and, if necessary, seek expert advice on those matters.

***Bermuda***

The Class A shares may be offered or sold in Bermuda only in compliance with the provisions of the Investment Business Act of 2003 of Bermuda which regulates the sale of securities in Bermuda. Additionally, non-Bermudian persons (including companies) may not carry on or engage in any trade or business in Bermuda unless such persons are permitted to do so under applicable Bermuda legislation.

***Brazil***

The offer and sale of the Class A shares have not been and will not be registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários, or "CVM") and, therefore, will not be carried out by any means that would constitute a public offering in Brazil under CVM Resolution no 160, dated July 13, 2022, as amended ("CVM Resolution 160") or unauthorized distribution under Brazilian laws and regulations. The Class A shares may only be offered to Brazilian professional investors (as defined by applicable CVM regulation), who may only acquire the securities through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. The trading of these securities on regulated securities markets in Brazil is prohibited.

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**LEGAL MATTERS** 

The validity of our Class A shares offered by this prospectus will be passed upon for us by Vinson & Elkins L.L.P., Houston, Texas. Certain legal matters in connection with this offering will be passed upon for the underwriters by Latham & Watkins LLP, Houston, Texas.

**EXPERTS** 

The financial statements of Lea & Eddy Holdings, LLC as of December 31, 2025 and 2024, and for each of the two years in the period ended December 31, 2025, included in this prospectus have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report. Such financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

The balance sheets of EagleRock Land, LLC as of December 31, 2025 and December 1, 2025, included in this prospectus, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report. Such balance sheets are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

The financial statements of Accelerated Water Resources, LLC as of and for the years ended December 31, 2024 and 2023, included in this prospectus, have been audited by EEPB Company, independent auditors, as stated in their report. Such financial statements are included in reliance upon the report of such firm, given their authority as experts in accounting and auditing.

The combined carve-out financial statements of DE IV Flow, LLC as of and for the years ended December 31, 2025 and 2024, included in this prospectus and elsewhere in the registration statement have been so included in reliance upon the reports of Grant Thornton LLP, independent certified public accountants, upon the authority of said firm as experts in accounting and auditing.

The financial statements of Shallow Valley Ranch as of and for the years ended December 31, 2025 and 2024, included in this prospectus, have been audited by Weaver and Tidwell, L.L.P., independent auditors, as stated in their report. Such financial statements are included in reliance upon the report of such firm, given their authority as experts in accounting and auditing.

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**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 (including the exhibits, schedules and amendments thereto) under the Securities Act, with respect to our Class A shares offered hereby. This prospectus does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information with respect to the Class A shares offered hereby, we refer you to the registration statement and the exhibits and schedules filed therewith. Statements contained in this prospectus as to the contents of any contract, agreement or other document are summaries of the material terms of such contract, agreement or other document and are not necessarily complete. With respect to each of these contracts, agreements or other documents filed as an exhibit to the registration statement, reference is made to the exhibits for a more complete description of the matter involved. The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the SEC's website is *www.sec.gov*. A copy of the registration statement, of which this prospectus forms a part, and the exhibits and schedules thereto may be downloaded from the SEC's website.

As a result of this offering, we will become subject to full information reporting requirements of the Exchange Act and will file with or furnish to the SEC periodic reports and other information. We intend to furnish our shareholders with annual reports containing our audited financial statements prepared in accordance with GAAP and certified by an independent public accounting firm. We also intend to furnish or make available to our shareholders quarterly reports containing our unaudited interim financial information, for the first three fiscal quarters of each fiscal year. Our website is located at *EROK.com*. Following the completion of this offering, we intend to make our periodic reports and other information filed with or furnished to the SEC available, free of charge, through our website, as soon as reasonably practicable after those reports and other information are electronically filed with or furnished to the SEC. Information contained on our website or linked therein or otherwise connected thereto does not constitute part of nor is it incorporated by reference into this prospectus or the registration statement of which this prospectus forms a part.

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**GLOSSARY OF CERTAIN INDUSTRY TERMS** 

**Bbl**. One barrel of volume used for measuring oil.

**BLM**. Bureau of Land Management.

**Boe**. A barrel of oil equivalent, which is used to express crude oil, NGL and natural gas volumes on a comparable crude oil equivalent basis. Gas equivalents are determined under the relative energy content method by using the ratio of 6.0 Mcf of natural gas to 1.0 Bbl of crude oil or NGL.

**Bpd**. Barrels per calendar day.

**Brackish Water**. Water with salinity levels between seawater and freshwater.

**Caliche**. A crust of coarse sediment or weathered soil in calcium carbonate. It forms when lime-rich groundwater rises to the surface by capillary action and evaporates into a crumbly-like powder, forming a tough, indurated sheet called calcrete.

**CCUS**. Carbon capture, utilization and storage.

**Completion**. Installation of permanent equipment for production of natural gas, NGLs or oil or, in the case of a dry well, to reporting to the appropriate authority that the well has been abandoned.

**Crude Oil**. A mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities.

**Delaware Basin**. A geological depositional and structural basin in West Texas and southern New Mexico, which is a part of the Permian Basin.

**E&P**. Exploration and production.

**E&P companies**. Oil and natural gas exploration and production companies, including producers and/or operators.

**EIA**. Energy Information Administration, as independent agency within the United States Department of Energy that develops, surveys, collects energy data and analyzes and models energy issues.

**ERISA**. The Employee Retirement Income Security Act of 1974, as amended.

**GAAP**. Accounting principles generally accepted in the United States of America.

**GHG**. Greenhouse gas.

**GW**. Gigawatt, or one billion watts of electric capacity.

**Henry Hub**. A natural gas pipeline located in Erath, Louisiana that serves as the official delivery location for futures contracts on the NYMEX. The settlement prices at the Henry Hub are used as benchmarks for the entire North American natural gas market.

**MBbls**. One thousand barrels of crude oil, condensate, NGLs or water.

**MBbl/d**. One MBbl per day.

**MMBbls**. One million barrels of crude oil, condensate, NGLs or water.

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**MMBtu**. One million British thermal units.

**Mcf**. One thousand cubic feet of natural gas.

**Midland Basin**. A geological depositional and structural basin in West Texas, which is a part of the Permian Basin.

**NGL**. Natural gas liquid.

**NYMEX**. The New York Mercantile Exchange.

**Operator**. The individual or company responsible for the development and/or production of an oil or natural gas well.

**Permian Basin**. A large sedimentary basin located in West Texas and Southeastern New Mexico.

**Produced Water**. Water that comes out of an oil and natural gas well with the crude oil during crude oil production.

**Produced Water Handling Facilities**. Facilities employed for the treatment, handling and disposal of salt water produced with oil and natural gas into an underground formation.

**Rod**. A rod is a unit of measure of 16.5 feet that is measured in linear feet.

**Royalty**. An interest in an oil and natural gas lease that gives the owner the right to receive a portion of the production from the leased acreage (or of the proceeds from the sale thereof), but does not require the owner to pay any portion of the production or development costs on the leased acreage. Royalties may be either landowner's royalties, which are reserved by the owner of the leased acreage at the time the lease is granted, or overriding royalties, which are usually reserved by an owner of the leasehold in connection with a transfer to a subsequent owner.

**Sand Mine**. An area of land from which sand is being mined.

**Sequestration**. A technique for the permanent storage of carbon dioxide or other active compounds so they will not be released into the atmosphere.

**Spot Market Price**. The cash market price without reduction for expected quality, transportation and demand adjustments.

**WTI**. West Texas Intermediate.

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**INDEX TO FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
|  **EagleRock Land, LLC** |  |
|  *Balance Sheets* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 34)](#findex37594_1) | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheets as of December 31, 2025 and December 1, 2025](#findex37594_2) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Balance Sheets](#findex37594_3) | F-5 |
|  *Unaudited Pro Forma Condensed Consolidated Financial Statements* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Introduction](#findex37594_4) | F-9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Unaudited Pro Forma Condensed Consolidated Balance Sheet as of December 31, 2025](#findex37594_5) | F-12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Unaudited Pro Forma Condensed Consolidated Statement of Operations for the Year Ended December 31, 2025](#findex37594_6) | F-13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements](#findex37594_7) | F-14 |
|  **Lea & Eddy Holdings, LLC and Subsidiaries** |  |
|  *Consolidated Financial Statements* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 34)](#findex37594_8) | F-27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2025 and 2024](#findex37594_9) | F-28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#findex37594_10) | F-29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Changes in Member's Deficit for the Years Ended December 31, 2025 and 2024](#findex37594_11) | F-30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#findex37594_12) | F-31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Consolidated Financial Statements](#findex37594_13) | F-33 |
|  **Accelerated Water Resources, LLC** |  |
|  [Independent Auditor's Report (PCAOB ID Number 879)](#findex37594_14) | F-57 |
|  *Consolidated Financial Statements:* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023](#findex37594_15) | F-59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the Years Ended December 31, 2024 and 2023](#findex37594_16) | F-60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Changes in Members' Capital for the Years Ended December 31, 2024 and 2023](#findex37594_17) | F-61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023](#findex37594_18) | F-62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Consolidated Financial Statements](#findex37594_19) | F-63 |
|  *Unaudited Consolidated Financial Statements:* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024](#findex37594_20) | F-73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024](#findex37594_21) | F-74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Changes in Members' Capital for the Three Months Ended March 31, 2025 and 2024](#findex37594_22) | F-75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024](#findex37594_23) | F-76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Unaudited Consolidated Financial Statements](#findex37594_24) | F-77 |

---

F-i

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
|  **DE IV Flow, LLC** |  |
|  [Report of Independent Certified Public Accountants](#findex37594_25a) | F-87 |
|  *Combined Carve-Out Financial Statements:* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Balance Sheets as of December 31, 2025 and December 31, 2024](#findex37594_25b) | F-89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statements of Operations for the Years Ended December 31, 2025 and 2024](#findex37594_25c) | F-90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statements of Changes in Net Parent Investment for the Years Ended December 31, 2025 and 2024](#findex37594_25d) | F-91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#findex37594_29) | F-92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Combined Carve-Out Financial Statements](#findex37594_30) | F-93 |
|  **Shallow Valley Ranch** |  |
|  [Independent Auditor's Report](#findex37594_31) | F-106 |
|  *Combined Carve-Out Financial Statements:* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Balance Sheet as of December 31, 2025 and December 31, 2024](#findex37594_32) | F-108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statement of Income for the Years Ended December 31, 2025 and 2024](#findex37594_33) | F-109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statements of Changes of Net Investment for the Years Ended December 31, 2025 and 2024](#findex37594_34) | F-110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statement of Cash Flows for the Years Ended December 31, 2025 and 2024](#findex37594_35) | F-111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Combined Carve-Out Financial Statements](#findex37594_36) | F-112 |

---

F-ii

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##### [**Table of Contents**](#toc)
**EagleRock Land, LLC** 

Financial Statements

December 31, 2025 and December 1, 2025

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##### [**Table of Contents**](#toc)
**Table of Contents** 

---

| | | |
|:---|:---|:---|
|  | Page | Page |
|  Audited Financial Statements |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)](#findex37594_1) |  | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheets as of December 31, 2025 and December 1, 2025](#findex37594_2) |  | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Balance Sheets](#findex37594_3) |  | F-5 |

---

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##### [**Table of Contents**](#toc)
**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Board of Directors of EagleRock Land, LLC.

**Opinion on the Financial Statements** 

We have audited the accompanying balance sheets of EagleRock Land, LLC (the "Company") as of December 31, 2025 and December 1, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and December 1, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Houston, Texas

March 13, 2026

We have served as the Company's auditor since 2026.

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##### [**Table of Contents**](#toc)
**EagleRock Land, LLC** 

**Balance Sheets** 

**(In thousands)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 1,<br>2025** |
|  **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **TOTAL ASSETS** | $— | $— |
|  **LIABILITIES AND MEMBER'S INTEREST** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Commitments and contingencies (See note 3)* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **MEMBER'S INTEREST** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Member's interest | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deemed non-cash parent contribution | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total member's interest | $— | $— |
|  **TOTAL LIABILITIES AND MEMBER'S INTEREST** | $— | $— |

---

The accompanying notes are an integral part of the financial statement.

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##### [**Table of Contents**](#toc)
**EagleRock Land, LLC** 

**Notes to Financial Statements** 

**1. The Company** 

***Organization***

EagleRock Land, LLC ("the Company") was formed as a Texas limited liability company on December 1, 2025. Lea & Eddy Holdings, LLC (the "Sole Member") is the sole member of the company. The Company was capitalized with a deemed non-cash contribution of $1,000 by the Sole Member on December 1, 2025.

The Company was formed to serve as the issuer of an initial public offering of equity ("IPO"). The Company is currently engaged in discussions regarding potential acquisitions (each, an "IPO Acquisition") that it expects to consummate contemporaneously with the IPO. At the closing of the IPO, the Company is expected to consolidate certain existing assets of the Sole Member together with specified assets acquired in connection with any IPO Acquisition.

**2. Summary of Significant Accounting Policies** 

***Basis of Accounting***

The balance sheets have been prepared in accordance with U.S. generally accepted accounting principles. Separate Statements of Operations, Changes in Member's Interest and Cash Flows have not been presented because there have been no transactions since incorporation except for the initial capitalization. We have concluded that general and administrative costs associated with the formation of the Company are insignificant.

***Income Taxes***

The Company has elected to be treated as a corporation for U.S. federal income tax purposes and provides for income tax expense based on the liability method of accounting for income taxes. Deferred tax assets and liabilities are recorded based upon differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. As of December 31, 2025 and December 1, 2025, there are no income tax related balances reflected in our balance sheets.

**3. Commitments and Contingencies** 

From time to time the Company enters into certain commitments under normal course of business and is a party to litigation or other legal proceedings that the Company considers to be part of the ordinary course of business. The Company is currently not involved in any legal proceedings that it considers probable or reasonably possible, individually or in aggregate, to result in a material adverse effect on its financial condition, results of operations or liquidity.

**4. Members' Equity** 

The Sole Member holds 100% of the limited liability company interests of the Company. The Sole Member's limited liability company interests are generally consistent with ordinary equity ownership interests. The Company was capitalized with a deemed non-cash contribution of $1,000 from the Sole Member on December 1, 2025. Distributions (including liquidating distributions) are to be made to the Sole Member at a time to be determined by the board of managers. There are no restrictions on distributions.

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##### [**Table of Contents**](#toc)
**5. Subsequent Event** 

The Company has evaluated subsequent events through March 13, 2026, the date the financial statements were available to be issued. No subsequent events were identified.

The Notes to the Financial Statement are an integral part of the financial statement.

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**EagleRock Land, LLC** 

Unaudited Pro Forma Condensed Consolidated Financial Statements

**DECEMBER 31, 2025** 

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##### [**Table of Contents**](#toc)
**Table of Contents** 

---

| | |
|:---|:---|
|  | Page |
|  Unaudited Pro Forma Condensed Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Introduction](#fin37594_1) | F-9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Unaudited Pro Forma Condensed Consolidated Balance Sheet as of December 31, 2025](#fin37594_2) | F-12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Unaudited Pro Forma Condensed Consolidated Statement of Operations for the Year Ended December 31, 2025](#fin37594_3) | F-13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements](#fin37594_4) | F-14 |

---

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##### [**Table of Contents**](#toc)
**EagleRock Land, LLC** 

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**Introduction** 

EagleRock Land, LLC (the "Company", or "EagleRock") is a Texas limited liability company formed by Lea & Eddy Holdings, LLC ("Predecessor", or "Lea & Eddy") on December 1, 2025 to engage in the acquisition and management of surface acreage in the Delaware and Midland sub-basins within the Permian Basin. The following unaudited pro forma condensed consolidated financial statements of the Company reflect the historical results of the Predecessor, on a pro forma basis to give effect to the following transactions, which are defined and described in further detail below, as if they had occurred on December 31, 2025 for purposes of the unaudited pro forma balance sheet, and on January 1, 2025 for purposes of the unaudited pro forma statement of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Accelerated Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the exclusion of certain assets and liabilities of Predecessor that are not being conveyed to the Company (the
"Excluded Assets");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Shallow Valley Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the DE Flow Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Up-C Reorganization; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the initial public offering of Class A shares and the use of net proceeds therefrom as described in "Use of
Proceeds" (the "Offering").

***The Accelerated Acquisition.*** On April 14, 2025, Predecessor acquired 100% of the membership interests in Accelerated Water Resources, LLC (the "Accelerated Acquisition") for a total purchase price of $191.7 million. Predecessor acquired approximately 72,000 surface acres and water infrastructure as part of the Accelerated Acquisition. In connection with the Accelerated Acquisition, Predecessor raised $204.0 million in financing. Predecessor accounted for the Accelerated Acquisition under the acquisition method of accounting.

***The Shallow Valley Contribution.*** In connection with the Offering, the Shallow Valley Contribution will occur pursuant to which existing owners of Shallow Valley Ranch ("Shallow Valley Owners") will contribute Shallow Valley Ranch, including approximately 41,000 surface acres and associated assets, to EagleRock in exchange for OpCo Units representing an approximate % ownership interest in OpCo ("the Shallow Valley Contribution"). The Shallow Valley Contribution will be accounted for under the acquisition method of accounting.

***The DE Flow Contribution.*** In connection with the Offering, the DE Flow Contribution will occur pursuant to which Double Eagle IV Midco, LLC ("Double Eagle") will contribute DE IV Flow, LLC ("DE Flow"), including certain water infrastructure assets, to EagleRock in exchange for OpCo Units representing an approximate % ownership interest in OpCo ("the DE Flow Contribution"). The DE Flow Contribution will be accounted for under the acquisition method of accounting. In conjunction with the DE Flow Contribution, DE Flow will enter into a Water System Management Agreement (the "DE Flow WSMA") with DEF Operating described elsewhere in this Registration Statement.

***The Up-C Reorganization.*** In connection with the Offering, the each of Lea & Eddy, Shallow Valley Owners, and Double Eagle will contribute cash to the Company in exchange for Class B shares. Additionally, the Company and OpCo will amend their operating agreements to facilitate the Offering (the "Up-C Reorganization").

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##### [**Table of Contents**](#toc)
***The Offering.*** For the purposes of the unaudited pro forma condensed consolidated financial statements, the Offering is defined as the planned issuance and sale to the public of Class A shares of the Company as contemplated by this prospectus and the application by the Company of the net proceeds from such issuance as described in "Use of Proceeds". The net proceeds from the sale of Class A shares are expected to be $ million, net of underwriting discounts and commissions of $ million and other offering-related expenses payable by the Company, which are estimated to be approximately $ million.

The unaudited pro forma condensed consolidated balance sheet of the Company is based on the audited historical consolidated balance sheet of the Predecessor as of December 31, 2025 and includes pro forma adjustments to give effect to the DE Flow Contribution, the Shallow Valley Contribution, the Up-C Reorganization and Offering as if they had occurred on December 31, 2025. There are no pro forma adjustments to give effect to the Accelerated Acquisition since the results of the Accelerated Acquisition are included in the Predecessor historical consolidated balance sheet as of December 31, 2025.

The unaudited pro forma condensed consolidated statement of operations of the Company is based on the audited historical consolidated statement of operations of the Predecessor for the year ended December 31, 2025 and includes pro forma adjustments to give effect to the Accelerated Acquisition, the DE Flow Contribution, the Shallow Valley Contribution, Up-C Reorganization and the Offering as if they had occurred on January 1, 2025.

The unaudited pro forma condensed consolidated financial statements have been prepared on the basis that the Company has elected to be taxed as a corporation under the Internal Revenue Code of 1986. The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the notes thereto and with the audited historical consolidated financial statements and related notes of the Predecessor, as well as the other audited historical financial statements of Accelerated, DE Flow and Shallow Valley, included elsewhere in this prospectus.

The pro forma data presented reflect events directly attributable to the described transactions and certain assumptions that the Company believes are reasonable. The pro forma data are not necessarily indicative of financial results that would have been attained had the described transactions occurred on the dates indicated below or which could be achieved in the future because they necessarily exclude various operating expenses, such as incremental general and administrative expenses associated with being a public company. The adjustments are based on currently available information and certain estimates and assumptions. Therefore, the actual adjustments may differ from the pro forma adjustments. However, management believes that the assumptions provide a reasonable basis for presenting the significant effects of the transactions as contemplated and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma financial statements.

**Accounting for the Contributions** 

The purchase price allocation and related adjustments reflected in this unaudited pro forma condensed combined financial information are preliminary and subject to revision based on final allocation of the fair value of the net assets after the date of this prospectus. See *Note 1: Basis of Presentation* for more information.

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##### [**Table of Contents**](#toc)
The contributions are subject to reclassification and transaction accounting adjustments that have not been finalized. Accordingly, the pro forma adjustments are preliminary and have been made solely for the purposes of providing unaudited pro forma condensed combined financial information in accordance with SEC rules including Article 11 of Regulation S-X. Differences between these preliminary estimates and the final reclassification and transaction accounting adjustments may be material.

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##### [**Table of Contents**](#toc)
**EagleRock Land, LLC** 

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET** 

*as of December 31, 2025* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Lea & Eddy<br>Holdings, LLC** | **Excluded<br>Assets** | **Transaction<br>Accounting<br>Adjustments** | **Formation<br>Related<br>Adjustments** |  | **Pro<br>Forma,<br>as<br>adjusted** |
|  | | **(a)** | | **(c)** |  | |
| **(in thousands, except unit counts)** | | | | | | |
|  **ASSETS** |  |  |  |  |  |  |
|  **Current assets:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $9042 | $(9042) | $— | $| $<sup>(d)</sup> | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 13096 | (1441) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable—related party |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 310 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 8765 | (8386) |  |  | <sup>(e)(f)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current assets** | $31213 | $(18869) | $— | $| $— | $|
|  **Non-current assets:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net | 55586 | (2067) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use asset, net | 1565 | (1565) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 191240 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred offering costs | 1459 |  |  |  | <sup>(e)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 947 | (922) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current assets** | $250797 | $(4554) | $— | $| $— | $|
|  **Total assets** | $282010 | $(23423) | $— | $| $— | $|
|  **LIABILITIES AND MEMBERS' DEFICIT** |  |  |  |  |  |  |
|  **Current liabilities:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $4433 | $(3342) | $— | $| $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable—related party | 2684 | (2669) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 2909 | (646) |  |  | <sup>(e)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes payable | 42 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current deferred revenue | 533 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liability | 492 | (492) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current debt—related party | 6038 |  |  |  | <sup>(f)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** | $17131 | $(7149) | $— | $| $— | $|
|  **Noncurrent liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability, less current portion | $1019 | $(1019) | $— | $| $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability, net | 10852 |  |  |  | <sup>(i)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue, less current portion | 94 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt—related party, less current portion | 294629 |  |  |  | <sup>(f)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total noncurrent liabilities** | $306594 | $(1019) | $— | $| $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and Contingencies |  |  |  |  |  |  |
|  **Equity** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common units (2,095 units authorized, 1,195 units outstanding as of December 31, 2025) | $14016 | $— | $(14016)<sup>(b)</sup> | $| $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital—member's interests | (1) |  | 1 <sup>(b)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital—warrants— related party | 18416 |  | (18416)<sup>(b)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital |  |  | 32431 <sup>(b)</sup> |  | <sup>(g)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (74146) | (15255) |  |  | <sup>(d)(e)(g)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A members' equity |  |  |  |  | <sup>(g)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B member's equity |  |  | $— | $| <sup>(g)</sup> | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total shareholders' and members' equity attributable to EagleRock Land, LLC** | $(41715) | $(15255) |  | $| $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Noncontrolling interest** |  |  | $— | $|  | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total shareholders' and members' equity** | $(41715) | $(15255) | $— | $| $<sup>(g)(h)</sup> | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and equity | $282010 | $(23423) | $— | $| $— | $|

---

The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.

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**EagleRock Land, LLC** 

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS** 

*for the Year Ended December 31, 2025* 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Lea &<br>Eddy<br>Holdings,<br>LLC, as<br>adjusted** | **Historical<br>Accelerated<br>Water<br>Resources, LLC<br>for the period<br>January 1, 2025<br>through<br>April 14, 2025,<br>as adjusted** | **Excluded<br>Assets** | **Transaction<br>Accounting<br>Adjustments** | **Formation<br>Related<br>Adjustments** | **Pro<br>Forma** |  | **Pro<br>Forma,<br>as<br>adjusted** |
|  | **(a)** | **(b)** | **(c)** | | **(f)** | |  | |
| **(in thousands)** | | | | | | | | |
|  **Revenues** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $54670 | $23446 | $(25622) | $— | $| $| $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales—related party | 509 |  | (509) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource royalties |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource royalties— related party |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues | 13667 | 4661 | (3961) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Surface use related revenues—related party** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties | 3327 | 901 | (581) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties—related party |  |  |  | 7889 <sup>(d)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | 72173 | 29008 | (30673) | 7889 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | 20863 | 4454 | (11394) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party cost of sales | 10207 |  | (10207) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 9834 | 738 | (3082) |  |  |  | <sup>(g)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party general and administrative expense | 235 |  | (235) | 205 <sup>(d)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 14984 | 1439 | (487) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plants and equipment, net | (2067) | 174 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | 54056 | 6805 | (25405) | 205 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating Income (Loss)** | 18117 | 22204 | (5268) | 7684 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  | (2) |  | 2 <sup>(e)</sup> |  |  | <sup>(h)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense—related party | (21185) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income |  | 109 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | (70001) |  |  |  |  |  | <sup>(h)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from operations before taxes** | (73069) | 22311 | (5268) | 7686 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 2 |  |  |  |  |  | <sup>(i)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss)** | (73071) | 22311 | (5268) | 7686 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: net income (loss) attributable to non-controlling interests |  |  |  |  |  |  | <sup>(j)</sup> |  |
|  **Net income (loss) attributable to EagleRock Land LLC** | **(73071)** | **22311** | **(5268)** | **7686** |  |  |  |  |
|  **Net income per share of common stock** |  |  |  |  |  |  |  |  |
|  Basic |  |  |  |  |  |  | <sup>(k)</sup> | $|
|  Diluted |  |  |  |  |  |  | <sup>(k)</sup> | $|
|  **Weighted average common stock outstanding** |  |  |  |  |  |  |  |  |
|  Basic |  |  |  |  |  |  | <sup>(k)</sup> |  |
|  Diluted |  |  |  |  |  |  | <sup>(k)</sup> |  |

---

The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.

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**EagleRock Land, LLC** 

**NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 1: Basis of Presentation** 

The pro forma condensed consolidated financial information has been prepared by the Company in accordance with Article 11 of Regulation S-X. For purposes of the unaudited pro forma condensed consolidated balance sheet, it is assumed that the DE Flow Contribution, the Shallow Valley Contribution, the Up-C Reorganization and the Offering occurred on December 31, 2025. For purposes of the unaudited pro forma condensed consolidated statement of operations, it is assumed the Accelerated Acquisition, the DE Flow Contribution, the Shallow Valley Contribution, the Up-C Reorganization and the Offering occurred on January 1, 2025.

The unaudited pro forma condensed consolidated financial information was prepared using the acquisition method of accounting in accordance with Accounting Standards Topic ("ASC") Topic 805, *Business Combinations* ("ASC 805"), using the fair value concepts defined in ASC Topic 820, *Fair Value Measurement*, and based on the historical consolidated financial statements of the Company and the historical consolidated financial statements of Accelerated, DE Flow and Shallow Valley. As such, assets of the subsidiaries contributed by the Predecessor will be recorded by the Company at their historical carrying value while the assets associated with the Shallow Valley Contribution and DE Flow Contribution will be recognized at their acquisition-date fair values.

The results of operations of Accelerated Water Resources, LLC ("Accelerated") from January 1, 2025 to April 14, 2025 (the date of the Accelerated Acquisition) are included in the condensed consolidated pro forma statement of operations in order to give effect to the Accelerated Acquisition as if it had occurred on January 1, 2025. The results of Accelerated are included in the results of the Predecessor for the period April 15, 2025 to December 31, 2025. There is no adjustment made to the condensed consolidated pro forma balance sheet for the Accelerated Acquisition, as the assets and liabilities of Accelerated are included in the results of the Predecessor as of December 31, 2025.

The transaction accounting adjustments represent Company management's best estimates and are based upon currently available information and certain assumptions that we believe are reasonable based under the circumstances; however actual results may differ from estimates.

Our management has identified certain reclassification adjustments given all currently available information related to the DE Flow Contribution and Shallow Valley Contribution, which would be necessary to conform the presentation of its financial statements or accounting policies to those of the Company. Refer to Note 3(c)(1) and Note 4(f)(1) below for additional information.

**Note 2: Purchase Price** 

We accounted for the Accelerated Acquisition as a business combination in accordance with ASC 805, as the transaction met the definition of businesses under generally accepted accounting principles in the United States of America ("GAAP"). Accordingly, the identifiable assets acquired and liabilities assumed were recognized at their acquisition-date fair values. The total consideration transferred was measured at the fair value of the consideration exchanged with the sellers. The purchase price was allocated to the identifiable assets acquired and liabilities assumed based on their relative fair values in accordance with ASC 805-20. There was no excess of consideration transferred over the fair value of the identifiable net assets acquired and, as such, no goodwill was recognized.

We accounted for the Shallow Valley Contribution and the DE Flow Contribution as business combinations in accordance with ASC 805, as the transactions preliminarily meet the definition of

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businesses under GAAP and this preliminary conclusion could materially impact results. Accordingly, the identifiable assets acquired and liabilities assumed are recognized at their acquisition-date fair values. The total consideration transferred is measured at the fair value of the consideration exchanged with the sellers. The purchase price is allocated to the identifiable assets acquired and liabilities assumed based on their relative fair values in accordance with ASC 805-20. Any excess of the consideration transferred over the fair value of the identifiable net assets acquired, if applicable, is recognized as goodwill.

The determination of fair value used in the Shallow Valley Contribution and DE Flow Contribution transaction adjustments presented herein are preliminary and based on management estimates of the fair value of the assets acquired and have been prepared to illustrate the estimated effect of the respective transactions. The final determination of the purchase price allocation will depend on a number of factors that cannot be predicted with certainty at this time. Therefore, the actual purchase price allocation for each transaction may differ from the transaction accounting adjustments presented in these unaudited condensed pro forma statements.

**Note 3: Pro Forma Adjustments—Unaudited Pro Forma Condensed Consolidated Balance Sheet** 

The Company made the following adjustments in the preparation of the unaudited pro forma condensed consolidated balance sheet as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Adjustments to reflect the Excluded Assets that will be retained by the Predecessor's Owner, and thus will not be
contributed to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Adjustment to reflect, pursuant to the Warrant Exercise Agreement, the exercise and partial forfeiture of the L&E
Warrants by the TCW Entities, the termination of each Warrant Agreement and the immediate issuance of OpCo Units to the TCW Entities and the owners of Lea & Eddy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Adjustments to reflect the total effect of the DE Flow Contribution and the Shallow Valley Contribution on the pro forma
condensed consolidated balance sheet, as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>DE Flow,<br>as adjusted** | **Transaction<br>Accounting<br>Adjustments** | **Historical<br>Shallow<br>Valley,<br>as adjusted** | **Transaction<br>Accounting<br>Adjustments** | **Total** |
|  | **(1)** | | **(1)** | | |
| **(in thousands)** |  |  |  |  |  |
|  **ASSETS** |  |  |  |  |  |
|  **Current assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 1074 |  | 2403 | (315)<sup>(3)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable—related party |  |  |  | 315<sup>(3)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 717 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 2371 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current assets** | $4162 | $— | $2403 | $— | $— |
|  **Non-current assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net of accumulated depreciation | 66969 | <sup>(2)</sup> | 92330 |  | <sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets, net |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred offering costs |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current assets** | $66969 | $— | $92330 | $— | $— |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>DE Flow,<br>as adjusted** | **Transaction<br>Accounting<br>Adjustments** | **Historical<br>Shallow<br>Valley,<br>as adjusted** | **Transaction<br>Accounting<br>Adjustments** | **Total** |
|  | **(1)** | | **(1)** | | |
| **(in thousands)** |  |  |  |  |  |
|  **Total assets** | $71130 |  | $94733 |  | $— |
|  **LIABILITIES AND MEMBERS' DEFICIT** |  |  |  |  |  |
|  **Current liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $— |  | $214 |  | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable—related party |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 4148 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes payable |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current deferred revenue |  |  | 206 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liability |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current debt—related party |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** | $4418 | $— | $420 | $— | $— |
|  **Noncurrent liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability, less current portion | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability, net | 125 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue, less current portion |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt – related party, less current portion |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 2443 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total noncurrent liabilities** | $2568 | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and Contingencies |  |  |  |  | $— |
|  **Equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common units (2,095 units authorized, 1,195 units outstanding as of December 31, 2025) | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital—members' interests |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital—warrants—related party |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | 64415 | <sup>(2)</sup> | 94313 | <sup>(4)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A members equity |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B members' equity |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total shareholders' and members' equity attributable to EagleRock Land. LLC** | 64415 |  | 94313 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Noncontrolling interest** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total shareholders' and members' equity** | $64415 | $— | $94313 | $— | $— |
|  **Total liabilities and equity** | $71130 | $— | $94733 | $— | $— |

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(1) The columns represent the historical audited balance sheets of DE Flow and Shallow Valley, presented elsewhere in this
prospectus, as adjusted to reflect reclassifications necessary to conform with the Company's presentation going forward. Such amounts are reflected in the "Historical DE Flow, as adjusted" and "Historical Shallow Valley, as
adjusted" columns:

---

| | | |
|:---|:---|:---|
| **Historical DE Flow** | **EagleRock Land, LLC** | **Reclassified**<br>**Balances** |
| **Balance Sheet FSLI** |  | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance receivable | Prepaid expenses and<br>other current assets | $2346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sourced water inventory | Inventory | 717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | Prepaid expenses and<br>other current assets | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued capital expenditures | Accrued liabilities | 2790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net parent investment | Accumulated deficit | 64415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net of accumulated depreciation | Property, plant and<br>equipment, net | 28434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | Property, plant and<br>equipment, net | 63896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | Accounts payable | 214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | Current deferred<br>revenue | 206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment | Accumulated deficit | 94313 |

---

(2) Adjustments to reflect the DE Flow Contribution in exchange for OpCo Units representing an approximate  %
ownership interest in OpCo.

A summary of the consideration transferred, and the fair value of the assets and liabilities acquired in connection with the DE Flow Contribution is as follows (in thousands, except for unit counts):

---

| | |
|:---|:---|
|  Value of the units of OpCo to be issued in exchange for the DE Flow Contribution (based on the offering price of $ per Class A share) | $|
|  Fair value of property, plant and equipment, net |  |
|  Fair value of intangible assets |  |
|  Accounts receivable, net |  |
|  Inventory |  |
|  Prepaid expenses and other current assets |  |
|  Accrued liabilities |  |
|  Deferred tax liability |  |
|  Asset retirement obligations |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total net assets acquired | $|

---

(3) Adjustments to reflect the reclassification of receivable balances between Shallow Valley and Double Eagle from third
party to related party.

(4) Adjustments to reflect the Shallow Valley Contribution in exchange for OpCo Units representing an
approximate  % ownership interest in OpCo.

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A summary of the consideration transferred, and the fair value of the assets and liabilities acquired in connection with the Shallow Valley Contribution is as follows (in thousands, except for unit counts):

---

| | |
|:---|:---|
|  Value of the units of OpCo to be issued in exchange for the Shallow Contribution (based on the offering price of $ per Class A share) | $|
|  Fair value of property, plant and equipment, net |  |
|  Fair value of intangible assets |  |
|  Accounts receivable, net |  |
|  Accounts payable |  |
|  Deferred revenue |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total net assets acquired | $|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Adjustments to reflect the gross proceeds of $ million to the Company from the issuance and sale
of  million Class A shares at the initial public offering price of $ per share, net of underwriting discounts and commissions of $ million and additional estimated expenses related to the Offering of
approximately $ million. Adjustments also reflect the issuance of Class B shares to the Lea & Eddy, Double Eagle and Shallow Valley Owners for approximately $ million in cash related to the Up-C Reorganization.

The following table provides a reconciliation of the pro forma cash expected to be received and used in connection with the consummation of the Offering and the net proceeds from the Offering as disclosed throughout this prospectus (in thousands):

---

| | |
|:---|:---|
|  Gross proceeds from the Offering | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated underwriting discounts and commissions |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance expenses <sup>(1)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma cash received from the Offering | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of Predecessor Credit Facility | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to Existing Owners |  |
|  Net pro forma cash provided by the Offering | $|

---

<sup>(1)</sup> Excludes $ million of expenses paid as of December 31, 2025. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Represents the offsetting of $ million of deferred offering costs from Deferred offering costs,
$ million from Prepaid expenses and other current assets, and $ million from Accrued liabilities against proceeds from the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Represents a $ million paydown of the Predecessor Credit Facility, consisting of
$ million of the term loan and $ million of the revolver, and the write-off of debt premium of $ million and prepaid interest of $ million within Prepaid expenses and other current assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Adjustments to members' equity reflecting (i) $ million for Class A shares outstanding following
this offering and application of the net proceeds therefrom calculated as the  % controlling interest in OpCo's pro forma, as adjusted member's equity as of December 31, 2025 (ii) $ million for Class B
shares outstanding issued to Existing Owners and (iii) a decrease of $ million in members' equity to allocate a portion of the Company's equity to the non-controlling interest
described in Note (h) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Adjustments to non-controlling interest due to consolidation of financial results
of OpCo. The Company will initially have a minority economic interest in OpCo, but will have control over the management of OpCo. Therefore, we consolidated the financial results of OpCo and will

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report a non-controlling interest on our consolidated balance sheet for the percentage of OpCo units not held by the Company. Upon completion of the contemplated transactions, the non-controlling interest is expected to own approximately % of OpCo.

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| | |
|:---|:---|
|  Pro forma members' equity as of December 31, 2025 <sup>(1)</sup> | $— |
|  Gross proceeds from offering |  |
|  Underwriting discounts and offering costs <sup>(2)</sup> |  |
|  Distributions to Existing Owners |  |
|  Pro forma, as adjusted OpCo members' equity as of December 31, 2025 | $— |
|  Estimated noncontrolling interest percentage of EagleRock Land, LLC | % |

---

<sup>(1)</sup> Includes $ million gain from extinguishment of debt. 

<sup>(2)</sup> Includes offering costs paid as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Adjustments to reflect the estimated change in long-term deferred tax liabilities for temporary differences between the
historical cost basis and tax basis of the Company's assets and liabilities assuming the Company's status as a subchapter C corporation. Deferred income tax adjustments arising from fair value adjustments have been estimated at the
expected tax rate of approximately   % in the unaudited pro forma condensed consolidated statement of operations. Adjustments are based on information currently available, using applicable assumptions and estimates. Actual results are
subject to change, which could be material.

**Note 4: Pro Forma Adjustments—Unaudited Pro Forma Condensed Consolidated Statement of Operations** 

The Company made the following adjustments in the preparation of the unaudited pro forma condensed consolidated statement of operations for the year ended December 31 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The column represents the historical audited activity of Lea & Eddy, presented elsewhere in this prospectus, as
adjusted to reflect reclassification necessary to conform with the Company's presentation going forward. Such amounts are reflected in the "Historical Lea & Eddy, LLC, as adjusted" column.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical<br>Lea & Eddy<br>Holdings,<br>LLC** | **Water sales<br>reclassification** | **Surface and<br>other revenues<br>reclassification** | **Historical<br>Lea & Eddy<br>Holdings,<br>LLC, as<br>adjusted** |
| **(in thousands)** | | | | |
|  **Historical Lea & Eddy** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Water sales | $55199 | $(55199) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party water sales | 509 | (509) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface and other revenues | 16465 |  | (16465) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total historical revenue** | $72173 | $(55708) | $(16465) | $— |
|  **EagleRock Land LLC** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $— | $50323 | $4348 | $54670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales—related party |  | 509 |  | 509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues |  | 4876 | 13667 | 13667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties |  |  | 3327 | 3327 |
|  **Total revenues** | $**—** | $**55708** | $**16465** | $**72173** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The column represents the historical audited activity of Accelerated, presented elsewhere in this prospectus, as adjusted
to reflect reclassification necessary to conform with the Company's presentation going forward. Such amounts are reflected in the "Historical Accelerated Water Resources, LLC for the period January 1, 2025 through April 14,
2025, as adjusted" column.

---

| | | | |
|:---|:---|:---|:---|
| **Historical Accelerated** | **EagleRock Land LLC** | **Reclassified<br>Balances –<br>Q1'25** | **Reclassified<br>Balances –<br>January 1,<br>2025 to<br>April 14,<br>2025** |
|  |  | **(in thousands)** | **(in thousands)** |
|  Fresh water sales | Resource sales | $17591 | $23206 |
|  Surface use land rights | Surface use related revenues | 3917 | 4231 |
|  Fresh water transfer services | Surface use related revenues | 321 | 430 |
|  Caliche sales | Resource sales | 179 | 229 |
|  Topsoil sales | Resource sales |  | 11 |
|  Produced water disposal services | Surface use royalties | 827 | 901 |
|  Operating expenses | Cost of sales (exclusive of depreciation and amortization) | 185 | 221 |
|  General & administrative expenses | General and administrative expense | 609 | 738 |
|  Accretion of discount on asset retirement calculation | Depreciation and amortization expense | 8 | 10 |
|  Loss on disposition of assets | Gain on sale of property, plants and equipment, net | 174 | 174 |
|  Other income | Interest income | 109 | 109 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Adjustments to reflect the removal of activity related to the Excluded Assets that will be retained by the
Predecessor's Owners and replaced by the Hydrosource produced water recycling rights agreement (the "Hydrosource Recycling Agreement") going forward (refer to Note (d) below for additional information).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Adjustments to reflect the royalty revenue received related to the Hydrosource Recycling Agreement entered into as part
of the transaction. Net royalty payment is based on a percentage of the gross selling price received by Hydrosource for recycled water stored, treated, processed, purchased or sold on our land, and for each barrel of recycled water sold off our
land. The agreement also contains provisions for additional royalty income if Hydrosource engages in additional revenue generating activities on our land including solid waste operations and sand mine operations. The adjustment reflects
approximately $7.9 million in royalties that would have been recognized if the Hydrosource Recycling Agreement had been in place as of January 1, 2025 using historical volumes and contractual rates. Adjustment to operating expenses includes the
Company's 50% share of the corporate lease cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Adjustments to reflect the elimination of Accelerated's historical interest expense incurred prior to its
acquisition by the Predecessor, as the Predecessor did not assume the related debt in the Accelerated Acquisition.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Adjustment to reflect the total effect of the DE Flow Contribution and the Shallow Valley Contribution on the pro forma
condensed consolidated statement of operations, as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>DE Flow,<br>as adjusted** | **Transaction<br>Accounting<br>Adjustments** | **Historical<br>Shallow<br>Valley, as<br>adjusted** |  | **Total** |
|  | **(1)** | | **(1)** |  | |
| **(in thousands)** |  |  |  |  |  |
|  **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $10 | $(10) | $11419 | $— | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales—related party | 34433 | (34433) | 1800 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource royalties |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource royalties—related party |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues |  |  | 7555 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues—related party |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties | 1424 | (1424) | 2267 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties—related party | 20641 | 19359 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | 56508 | (16508) | 23041 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | 26275 | (26275) | 5255 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party cost of sales |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 1093 | (1093) | 309 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party general and administrative expense |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 2673 |  | 2357 | (5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plants and equipment, net | 25 |  | (1965) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | 30066 |  | 5956 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income (Loss)** | 26442 |  | 17085 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (516) | 516 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense—related party |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from operations before taxes** | 25926 |  | 17085 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 91 | (91) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss)** | 25835 |  | 17085 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Less: net income attributable to non-controlling interests** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss) attributable to EagleRock Land LLC** | 25835 |  | 17085 |  |  |

---

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The columns represent the historical audited activity of DE Flow and Shallow Valley, presented elsewhere in this
prospectus, as adjusted to reflect the reclassification necessary to conform with the Company's presentation going forward. Such amounts are reflected in the "Historical DE Flow, as adjusted" and "Historical Shallow Valley,
as adjusted" columns.

The reclassifications of revenues are shown in the tables below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical<br>DE Flow** | **Midstream<br>revenues –**<br>**related party**<br>**Reclassification**<br>**Adjustments** | **Midstream<br>revenues –<br>third party<br>reclassification** | **Historical<br>DE Flow,<br>as<br>adjusted** |
| **(in thousands)** | | | | |
|  **Historical DE Flow** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream revenues—related party | $55074 | $(55074) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream revenues—third party | 1434 |  | (1434) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total historical revenue** | $56508 | $(55074) | $(1434) | $— |
|  **EagleRock Land LLC** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $— | $— | $10 | $10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales—related party |  | 34443 |  | 34433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties |  |  | 1424 | 1424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties—related party |  | 20641 |  | 20641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total EagleRock Land LLC revenue** | $— | $55074 | $1434 | $56508 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Shallow<br>Valley** | **Water sales<br>reclassification** | **Easement**<br>**and surface<br>damages<br>reclassification** | **Other<br>reclassification** | **Historical<br>Shallow<br>Valley, as<br>adjusted** |
| **(in thousands)** | | | | | |
|  **Historical Shallow Valley** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Water sales | $15486 | $(15486) | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Easement and surface damages | 7026 |  | (7026) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 529 |  |  | (529) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total historical revenue** | $23041 | $(15486) | $(7026) | $(529) | $— |
|  **EagleRock Land LLC** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales | $— | $11419 | $— | $— | $11419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resource sales—related party |  | 1800 |  |  | 1800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use related revenues |  |  | 7026 | 529 | 7555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface use royalties |  | 2267 |  |  | 2267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total EagleRock Land LLC revenue** | $— | $15486 | $7026 | $529 | $23041 |

---

------

##### [**Table of Contents**](#toc)
Other reclassification adjustments for the unaudited pro forma condensed consolidated statement of operations are shown in the tables below:

---

| | | |
|:---|:---|:---|
| **Historical DE Flow** | **EagleRock Land LLC** | **Reclassified<br>Balances** |
|  |  | **(in thousands)** |
|  Cost of goods sold | Cost of sales (exclusive of depreciation and amortization) | $23401 |
|  Direct operating expenses | Cost of sales (exclusive of depreciation and amortization) | 2874 |
|  Depreciation, amortization and accretion | Depreciation and amortization expense | 2673 |
|  Loss on property abandonment | Gain on sale of property, plant and equipment, net | 25 |
|  General and administrative | General and administrative expense | 1093 |
|  Income tax expense | Income tax expense (benefit) | 91 |
| **Historical Shallow Valley** | **EagleRock Land LLC** | **Reclassified<br>Balances** |
|  |  | **(in thousands)** |
|  Cost of sales (exclusive of depreciation) | Cost of sales (exclusive of depreciation and amortization) | $5248 |
|  Depreciation expense | Depreciation and amortization expense | 2357 |
|  Severance and ad valorem tax expense | Cost of sales (exclusive of depreciation and amortization) | 7 |
|  General and administrative expense | General and administrative expense | 309 |
|  Gain on sale of property, plant and equipment | Gain on sale of property, plant and equipment | (1965) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Adjustments to reflect the effect of the DE Flow WSMA entered into as part of the DE Flow Contribution. The DE Flow WSMA
replaced historical revenue and direct operating expenses with royalty revenue. Net royalty payment is based on a royalty equal to 90% of net proceeds generated by the assets operated by DEF Operating and the contractually specified minimum royalty.
The adjustment reflects $40.0 million in royalties, inclusive of any shortfall payments, that would have been recognized if the DE Flow WSMA had been in place as of January 1, 2025, using historical DE Flow net proceeds and contractually specified
rates in the DE Flow WSMA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Adjustment to reflect the depreciation and amortization associated with the fair value step up of assets acquired in the
DE Flow Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Adjustments to reflect the removal of interest expense and tax expense that was historically pushed down in the
preparation of DE Flow carve out financial statements, as the related debt will not be contributed as part of the DE Flow Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Adjustments to reflect the adjustment to depreciation and amortization associated with the fair value step up of assets
acquired in the Shallow Valley Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Adjustments to reflect IPO Bonuses paid to certain members of management in connection with the Offering. IPO Bonuses are
expected to be paid in fully vested equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Adjustments to reflect the removal of $ million of historical interest expense related to the Predecessor
Credit Facility paid off with the Offering Proceeds and a $ million non-cash loss on debt extinguishment as a result of the $ million removal of historical loss in connection with the modification to upsize the Predecessor Credit
Facility and associated write off of unamortized debt issuance costs.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Adjustments to reflect the estimated incremental income tax provision associated with the Company's historical
results of operations and pro forma adjustments assuming the Company's earnings had been subject to federal income tax as a subchapter C corporation using an effective tax rate of approximately   %. This rate is inclusive of
federal and state income taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Adjustments reflects the increase in net income attributable to non-controlling interest for OpCo's historical
results of operations. Upon completion of the contemplated transactions, the non-controlling interest is expected to own approximately   % of OpCo (% if the underwriters' option to purchase additional Class A shares
is exercised in full).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) On a pro forma basis, basic earnings per share and diluted earnings per share are     during the
periods presented. Earnings per share on a pro forma basis is computed as follows:

---

| | |
|:---|:---|
|  | **Year Ended<br>December 31,<br>2025** |
| **(in thousands)** | |
|  Pro forma, as adjusted income before income taxes | $|
|  Pro forma, as adjusted income tax expense |  |
|  Pro forma, as adjusted net income attributable to members' equity |  |
|  Net income attributable to noncontrolling interests |  |
|  Pro forma, as adjusted income available to Class A members | $|
|  Weighted average number of Class A shares outstanding | $|
|  Pro forma, as adjusted net income available to Class A members per share | $|

---

------

##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

Consolidated Financial Statements

December 31, 2025 and 2024

------

##### [**Table of Contents**](#toc)
**Table of Contents** 

---

| | |
|:---|:---|
|  | Page |
|  Audited Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)](#fin37594_100) | F-27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets](#fin37594_101) | F-28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations](#fin37594_102) | F-29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Changes in Members' Deficit](#fin37594_103) | F-30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows](#fin37594_104) | F-31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Consolidated Financial Statements](#fin37594_105) | F-33 |

---

------

##### [**Table of Contents**](#toc)
**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Board of Managers of Lea & Eddy Holdings, LLC.

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of Lea & Eddy Holding, LLC and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operation, changes in members' deficit, and cash flows for each of the two years in the period ended December 31, 2025 and the related notes to the consolidated financial statement (collectively referred to as the "financial statements"). In our opinion, the financial statements presents fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the result of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Houston, Texas

March 13, 2026

We have served as the Company's auditor since 2025.

------

##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Consolidated Balance Sheets** 

**(In thousands, except unit amounts)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $9042 | $1062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 13096 | 6354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable—related party |  | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 310 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 8765 | 268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 31213 | 7708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net | 55586 | 13791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right of use assets, net | 1565 | 1429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 191240 | 63766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred offering costs | 1459 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other noncurrent assets | 947 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **TOTAL ASSETS** | $**282010** | $**86694** |
|  **LIABILITIES AND MEMBERS' DEFICIT** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $4433 | $2224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable—related party | 2684 | 1596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 2909 | 297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes payable | 42 | 370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current deferred revenue | 533 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liability | 492 | 296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current debt—related party | 6038 | 5400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 17131 | 10248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **NON-CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability, less current portion | 1019 | 1133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability, net | 10852 | 11102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue, less current portion | 94 | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt—related party, less current portion | 294629 | 65176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-current liabilities | 306594 | 77521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Commitments and contingencies (See note 11)* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **MEMBERS' DEFICIT** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common units (2,095 units authorized, 1,195 and 1,000 units outstanding as of December 31, 2025 and 2024, respectively) | 14016 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital—members' interests | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital—warrants—related party | 18416 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (74146) | (1075) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total members' deficit | $(41715) | $(1075) |
|  **TOTAL LIABILITIES AND MEMBERS' DEFICIT** | $**282010** | $**86694** |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Consolidated Statements of Operations** 

**(In thousands, except unit and per unit amounts)** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  **REVENUES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Water sales | $55199 | $10904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party water sales | 509 | 1442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface and other revenues | 16465 | 5355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 72173 | 17701 |
|  **COST AND EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | 20863 | 4873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party cost of sales | 10207 | 3438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 9834 | 2600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party general and administrative expense | 235 | 198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 14984 | 3944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plants and equipment, net | (2067) | (4954) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 54056 | 10099 |
|  **INCOME FROM OPERATIONS** | 18117 | 7602 |
|  **OTHER INCOME (EXPENSE)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense—related party | (21185) | (8703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | (70001) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expense | (91186) | (8703) |
|  **LOSS BEFORE INCOME TAXES** | (73069) | (1101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 2 | (26) |
|  **NET LOSS** | $(73071) | $(1075) |
|  **Loss per unit:** |  |  |
|  Basic | (41518) | (1075) |
|  Diluted | (41518) | (1075) |

---

The Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Consolidated Statements of Members' Deficit** 

**(In thousands, except for common units)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common units** | **Common units** | | | |
|  | **Number of<br>units** | **Amount** |<br>**Additional<br>Paid-in<br>Capital** |<br>**Accumulated**<br>**Deficit** |<br>**Total** |
|  **Balance, January 1, 2024** |  | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deemed non-cash contributions | 1000 | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Members' interests |  |  | (1) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss |  |  |  | (1075) | (1075) |
|  **Balance, December 31, 2024** | **1000** | $**1** | $**(1)** | $**(1075)** | $**(1075)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unit issuance | 195 | 14015 |  |  | 14015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss |  |  |  | (73071) | (73071) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity classified warrants |  |  | 18416 |  | 18416 |
|  **Balance, December 31, 2025** | **1195** | $**14016** | $**18415** | $**(74146)** | $**(41715)** |

---

The Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Consolidated Statements of Cash Flows** 

**(In thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
|  **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss | $(73071) | $(1075) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation & amortization expense | 14984 | 3944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt premium, debt discount and debt issuance costs | (6987) | 523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncash operating lease costs |  | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plant and equipment, net | (2067) | (4954) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid-in-kind (non-cash) interest | 75 | 5343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 70001 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 10092 | (6298) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - related party | 24 | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 439 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | (148) | (191) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other noncurrent assets | (663) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 157 | 1819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable - related party | 1088 | 1427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 336 | 296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes | (328) | 370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 452 | 175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability | 3 | (227) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (249) | (448) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 14138 | 907 |
|  **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash consideration paid for acquisitions, net of cash acquired | (199684) | (68374) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (5279) | (1206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of property, plant and equipment, net |  | 5024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (204963) | (64556) |
|  **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from term loan | 204000 | 72000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from revolving credit facility | 11750 | 3910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt issuance costs | (6580) | (3484) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on long-term debt | (17503) | (5305) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on revolving credit facility | (6250) | (2410) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of common units | 14015 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred offering costs | (342) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 199090 | 64711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in cash | 8265 | 1062 |
|  **CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period** | 1062 |  |
|  **CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period** | $9327 | $1062 |

---

The Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Consolidated Statements of Cash Flows (Continued)** 

**(In thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
|  **SUPPLEMENTAL CASH FLOW INFORMATION** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $(28092) | $(2837) |
|  **SUPPLEMENTAL NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease, right-of-use assets associated liability | $578 | $1656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from the sale of land | $2100 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deemed non-cash equity contribution |  | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid-in-kind (non-cash) interest | $75 | $5343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in accounts payable related to capital expenditures | $(27) | $276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in accounts payable and accrued liabilities related to deferred offering costs | $(1117) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity classified warrants | $18416 |  |

---

The Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

**1. The Company** 

***Organization***

Lea & Eddy Holdings, LLC (and together with its subsidiaries, "the Company", "we", "us", "our") was formed as a Texas limited liability company on December 7, 2023. The Company has a single class of equity, designated as Common Units. The Company commenced business operations in January 2024. The Company has the following wholly owned subsidiaries, Hydrosource Logistics, LLC ("Hydrosource"), and Hydrosource Logistics Waste Management, LLC ("Waste Logistics"). Additionally, Desert Ram Holdings, LLC ("Desert Ram"), Desert Ram South, Inc. ("Desert Ram South"), NGL North Ranch, LLC and NGL South Ranch Inc. were acquired in April 2024. In January 2025, the NGL North Ranch, LLC and NGL South Ranch, Inc., acquired in connection with the Desert Ram Acquisition, obtained name change certificates from the State of Texas and State of New Mexico to operate as Desert Ram North, LLC and Desert Ram South Ranch, Inc., respectively.

Collectively, these entities are referred to as "the Subsidiaries". The consolidated financial statements include the accounts of the Company and the Subsidiaries.

In December 2025, in connection with a proposed IPO, the Company formed EagleRock Land, LLC, a Texas limited liability company (the "Registrant"). At the closing of the IPO, the Registrant is expected to consolidate certain existing assets of the Company together with specified assets acquired in connection with any IPO Acquisition.

***Business***

Lea & Eddy Holdings, LLC and its subsidiaries provide a range of well site services to U.S. exploration and production ("E&P") companies in the Southeastern New Mexico and Permian Basin. These services are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well. Our service offerings include water sales for oil and gas exploration, surface development activities in connection with oil and gas development and leases of our land.

**2. Summary of Significant Accounting Policies** 

***Basis of Accounting***

The accompanying consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities Exchange Commission ("SEC") and in conformity to accounting principles generally accepted in the United States of America ("U.S. GAAP").

***Principles of Consolidation***

The accompanying consolidated financial statements include Lea & Eddy Holdings, LLC, and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The Company had no other comprehensive income (loss) for the years ended December 31, 2025 and 2024. As such, net loss is equivalent to total comprehensive loss.

***Use of Estimates***

Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

financial statements and revenues and expenses during the reporting period. Such estimates include, but are not limited to, allowance for credit losses, assessment of useful lives and recoverability of long-lived assets, including property, plant and equipment and intangible assets, discount rates underlying our lease right-of-use assets and liabilities, estimates related to deferred tax liabilities, estimates of assets acquired and liabilities assumed in a business combination, and estimates of fair value of warrants and debt. Management bases its estimates on historical experience, current conditions and various other assumptions that it believes to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results could differ from those estimates.

***Cash, cash equivalents and restricted cash***

The Company considers all highly liquid instruments with an original maturity of three months or less at the time of issuance to be cash equivalent. The Company maintains deposits in financial institutions that are insured by the U.S. Federal Deposit Insurance Corporation ("FDIC"). From time-to-time, the deposits may exceed the amount of deposit insurance available through the FDIC. However, the Company has not experienced any losses related to amounts in excess of FDIC limits.

As of December 31, 2025, the Company held approximately $0.3 million of restricted cash held as certificates of deposit related to surety bonds associated with right of way agreements. We have recorded these amounts as other noncurrent assets on our consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows.

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
|  Cash and cash equivalents | $9042 | $1062 |
|  Other noncurrent assets | 285 |  |
|  Total cash, cash equivalents and restricted cash | $9327 | $1062 |

---

***Accounts Receivable***

Accounts receivable represents amounts due from third-party and related party customers in connection with our revenue generating activities, and are reported at historical carrying value, net of write-offs and any provision for credit loss. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. A provision for credit loss is evaluated on a regular basis by management and is based upon the collectability of the receivables in light of historical loss rates, the age of receivables, credit rating of the counterparty and prevailing economic conditions. As of December 31, 2025 and 2024, there was no provision for credit loss recorded. At December 31, 2025 and 2024, the accrued revenue (unbilled receivable) included in accounts receivable, for which the performance obligation has been met to the customer, was approximately $0.3 million and $0.1 million, respectively.

***Inventory***

Inventory is comprised of cattle, which are stated at the lower of cost or net realizable value, with costs determined utilizing the first-in-first-out method. There were no lower of cost or net realizable value inventory adjustments for the years ended December 31, 2025 and 2024.

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

***Prepaid Expenses***

Prepaid expenses consist primarily of prepaid insurance costs and prepaid subscription and licensing fees, which are amortized using the straight-line method over the term.

***Property, Plant, and Equipment, net***

Property, plant, and equipment are stated at cost, or upon acquisition, at its fair value and include land, furniture and fixtures, building, leasehold improvements, machinery and equipment, and vehicles. Expenditures for construction activities, major improvements and betterments that extend the useful life of an asset are capitalized while expenditures for repairs and maintenance are expensed as incurred. Upon sale or other retirement of depreciable property, the cost and accumulated depreciation are removed from the related accounts, and any gain or loss is reflected in the consolidated statements of operations. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets.

The estimated useful lives of the major classes of property, plant, and equipment are as follows:

---

| | |
|:---|:---|
|  Furniture and fixtures | 2 years |
|  Vehicles | 3 years |
|  Buildings | 8 - 12 years |
|  Leasehold improvements | 2 - 10 years |
|  Water wells, facilities and related equipment | 2 - 20 years |

---

*Impairment of Long-Lived Assets* 

Management reviews the Company's property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of the assets might not be recoverable. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets for purposes of assessing recoverability. Recoverability is generally determined by comparing the carrying value of the asset to the expected undiscounted future cash flows of the asset. If the carrying value of the asset is not recoverable, the amount of impairment loss is measured as the excess, if any, of the carrying value of the asset over its estimated fair value. No impairments were recorded during the years ended December 31, 2025 and 2024.

***Leases***

Contracts are evaluated to determine whether they contain a lease at inception. Leases are classified as either finance leases or operating leases based on criteria in ASC Topic 842, Leases. The Company's operating leases are generally comprised of corporate offices and vehicles.

ROU assets and lease liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. ROU assets are based on the lease liability and are increased by prepaid lease payments and decreased by lease incentives received. Lease incentives are amortized through the lease asset as reductions of expense over the lease term. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company's ROU assets and lease liabilities.

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

The Company reviews its ROU assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable. Recoverability is evaluated by comparing the carrying amount of the ROU asset to the future net undiscounted cash flows the asset is expected to generate. If the comparison indicates that the Company will not be able to recover the carrying amount, the Company recognizes an impairment loss for the amount by which the carrying amount exceeds the estimated fair value. There was no impairment of ROU assets for the years ended December 31, 2025 and 2024.

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. If the lease provides an implicit rate, the Company uses that rate for determining lease value. If an implicit rate is unavailable, the Company uses the incremental borrowing rate based on the information available at commencement date, including the collateralized borrowing rate for the Company, in determining the present value of lease payments.

The Company's operating leases are included in short-term lease liability and long-term lease liability in the consolidated balance sheets. Lease costs comprised of office rent associated with the lease are included in operating expenses in the consolidated statements of operations.

***Intangible Assets, Net***

The Company recognizes an intangible asset as finite-lived if its useful life is limited by legal, contractual, or economic factors. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The amortization period reflects the pattern in which the asset's economic benefits are consumed. The Company periodically reviews the remaining useful lives of these assets and revises them if a change in estimate is warranted. Finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset is not recoverable from its undiscounted future cash flows. The loss is measured as the excess of the carrying amount over the fair value of the asset. No impairments were recorded during the years ended December 31, 2025 and 2024.

The estimated useful lives of the major classes of intangibles are as follows:

---

| | |
|:---|:---|
|  Water rights | 15 years |
|  Surface rights | 15 years |
|  Saltwater disposal rights | 15 years |

---

Refer to Note 4 – Acquisitions for further details regarding the Company's intangible assets.

***Deferred Offering Costs***

The Company complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin ("SAB") Topic 5A — "Expenses of Offering". Deferred offering costs consist of underwriting, legal and accounting other expenses incurred through the balance sheet date that are directly related to the Company's proposed initial public offering. Deferred offering costs will be charged to members' equity upon the completion of the proposed initial public offering. Should the proposed initial public offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations. As of December 31, 2025, the Company has capitalized approximately

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

$1.4 million of deferred offering costs. Such costs will be deferred until the closing of the proposed initial public offering, at which time the deferred costs will be offset against the offering proceeds, net of any relevant reimbursements of such costs.

***Acquisitions***

The Company performs an evaluation of acquisition transactions by calculating the relative fair value of the assets acquired to determine if the transaction should be accounted for as a business combination or asset acquisition. If substantially all of the relative fair value is concentrated in a single asset or group of similar assets, or the acquired entity does not meet the definition of a business, the transaction is recorded as an asset acquisition. All other transactions are recorded as business combinations. In accounting for business combinations, all assets acquired and liabilities assumed are recorded at the acquisition date fair value. Any purchase price in excess of the fair value of assets acquired and liabilities assumed is recorded as goodwill.

***Warrants***

As further discussed in Note 6—Long Term Debt, The Company issued warrants to the lenders under the Company's long-term debt arrangement. Each holder received the right to acquire Common Units as set forth in the Warrant Agreement. Warrants for common shares are classified as equity if the contracts (1) require physical settlement or net-share settlement or (2) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). Contracts which (1) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), (2) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement), or (3) contain variable share provisions that do not qualify for the scope exception are classified as liabilities. The Company assesses classification of its warrants for shares of common stock at each reporting date to determine whether a change in classification between equity and liabilities is required. In April 2025, the Company modified the terms of the outstanding warrants in conjunction with a modification of the Company's long-term debt, removing a variable settlement feature from the warrants. As a result, the outstanding warrants met the requirements for equity classification under ASC 815-40. Accordingly, on April 14, 2025, the Company reclassified the warrant liability to additional paid-in capital. Upon reclassification, the Company remeasured the fair value of the warrants, resulting in a $17.6 million loss, presented within loss on extinguishment of debt on the consolidated statement of operations. The change in fair value on the reclassification date is attributable to the incremental enterprise value of the Company related to acquisition activity, as further described in Note 4 – Acquisitions. As a result of the transfer from liabilities to equity, the warrants are no longer measured at fair value on a recurring basis as of December 31, 2025.

***Fair Value Considerations***

Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the reporting date. The Company's assets and liabilities that are measured at fair value at each reporting date are classified according to a hierarchy that prioritizes inputs and assumptions underlying the valuation techniques. This fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs, and consists of three broad levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—Unadjusted quoted prices in active markets for identical, unrestricted assets and liabilities that the
reporting entity has the ability to access at the measurement date.

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and
liability or can be corroborated with observable market date for substantially the entire contractual term of the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—Unobservable inputs that reflect the entity's own assumptions about the assumption market participants
would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques.

There were no reclassifications between levels during the years ended December 31, 2025 and 2024.

*Fair Value Measurements* 

As of December 31, 2024 and up to the reclassification date, the fair value of the Company's liability classified warrants was determined to be de minimis. As further discussed above, the warrants were additionally remeasured as of April 14, 2025. The fair value of the warrants was estimated primarily using a combination of an income approach based on discounted estimated future cash flows and a market approach using the guideline company method. Under these approaches, the value of the warrants was estimated for various future scenarios and then probability-weighted based on the likelihood of each future scenario. The estimates used in the valuation of the warrants are highly subjective in nature and involve a large degree of uncertainty. The valuation of the warrants is considered to be at Level 3 of the fair value hierarchy due to the need to use assumptions in the valuation that are both significant to the fair value measurement and unobservable. The Company's non-financial assets, which consist primarily of property and equipment, right-of-use assets and intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value. The fair values of these warrant liabilities and non-financial assets are determined, as required, based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management's plans. All other components of the consolidated balance sheets, such as accounts receivable, cash and cash equivalents, and others approximate fair value as of December 31, 2025 and 2024.

***Revenue Recognition***

Revenue is recognized in accordance with ASC 606, Revenue from Contracts with Customers. The Company recognizes revenue when it satisfies the performance obligation to the customer by transferring control over a product or service to the customer.

The Company recognizes revenue following the five-step model under ASC 606: (i) identifying the contract, (ii) identifying performance obligations, (iii) determining the transaction price, (iv) allocating the transaction price, and (v) recognizing revenue as performance obligations are satisfied. The Company's contracts generally represent a single performance obligation, and revenues are recognized at a point in time.

The Company generates all its revenue from its operations in the State of New Mexico. The Company has disaggregated its revenue as follows which is based on the nature of the nature of the product and services rendered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Water Sales: The Company has water rights to obtain water from its constructed water wells within its ranches or acreage in
New Mexico. The Company in certain instances may purchase additional water from external sources to supplement its water supply, including treated water.

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

Water sales involve the sales of the Company's water to its customers for oil and gas completion activities. Revenue from the sale of water, which includes treated water, is recognized at a point in time upon delivery to the customer when the performance obligation has been met. Revenues associated with Water Sales were approximately $55.7 million and $12.3 million for the years ended December 31, 2025 and 2024, respectively. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Surface and Other Revenues: Includes royalty fees, surface damage fees, mining revenues, and cattle sales, which are
recognized at a point in time upon completion of the respective performance obligations, when the product or service is delivered to the customer. Royalty revenues are earned from water pumped into saltwater disposal wells on Company land. The
Company recognized the royalty revenues when the performance obligations were met, which is based on volume and the Company's contractual royalty percentage. Surface damage fees are earned when the disturbance occurs or restoration services
are rendered. Mining (caliche resources) revenues are earned through the sale of caliche mined from the Company's assets and are recognized when the product has been delivered. Cattle sales are earned through the sale of the Company's
cattle inventory. Revenues associated with the Surface and Other Revenues service line were approximately $16.5 million and $5.4 million for the years ended December 31, 2025 and 2024, respectively. These amounts are inclusive of
$4.3 million and $1.8 million of mining (caliche resources) revenues for the years ended December 31, 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lease Revenues: The Company leases certain portion of its land to customers. Income from leases, easement rights, and a man
camp is recognized over time as performance obligations are satisfied. Lease revenue has been included as part of our surface and other revenues in the consolidated statements of operations. Revenues associated with the Lease Revenues service line
were approximately $0.2 million and $0.1 million for the years ended December 31, 2025 and 2024, respectively.

The Company evaluates the nature of its contracts and uses judgment primarily in assessing when performance obligations are satisfied. Payment terms do not include significant financing or variable consideration components.

In some instances, we may be entitled to receive payments in advance of satisfying our performance obligations under the contract. We recognize a liability for these payments in excess of revenue recognized within Deferred revenue in our consolidated balance sheets. The following table shows a summary of deferred revenue activity for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
|  Beginning balance | 175 | $— |
|  Advance payments by customers (deferred revenue) | 575 | 259 |
|  Revenue recognized during the period | (123) | (84) |
|  Ending balance | $627 | 175 |

---

***Concentrations of Credit Risk, Major Customers and Suppliers***

The Company is subject to risk resulting from the concentration of its sales and receivables with several significant customers in the E&P industry. This concentration of customers may impact the Company's overall credit risk, either positively or negatively, in that these entities may be similarly affected by changes in economic or other conditions. Collateral is not normally required for credit extended in the form of accounts receivable to the Company's customers.

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

The Company had significant concentrations in revenue and accounts receivable from the following significant customers:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** |
| | **Revenue** | **Accounts<br>Receivable** | **Revenue** | **Accounts<br>Receivable** |
|  Customer A | 22% | 23% | 28% | 59% |
|  Customer B | 15% | 12% | \* | \* |
|  Customer C | \* | \* | 14% | 3% |
|  Customer D | 11% | \* | 13% | \* |
|  Customer E | \* | \* | 12% | 5% |
|  Customer F | \* | 15% | \* | \* |
|  Customer G | \* | 15% | \* | \* |
|  Customer H | \* | 14% | \* | \* |

---

\* Below 10% 

The Company is dependent on third-party equipment manufacturers, distributors, and dealers for supplies services, and supplemental water sourcing. The Company is dependent on the ability of its suppliers to provide equipment, products, and services on a timely basis and on favorable pricing terms. Major suppliers are defined as those comprising more than 10% of the Company's costs of sales and accounts payable. The Company had concentrations of major suppliers within cost of sales and accounts payable as follow:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Cost of**<br>**sales** | **Accounts**<br>**payable** | **Cost of**<br>**sales** | **Accounts**<br>**payable** |
|  Supplier A | 32% | 34% | 41% | 42% |
|  Supplier B | \* | \* | 16% | 19% |
|  Supplier C | 16% | 15% | 15% | 5% |

---

***Deferred Loan Costs***

The Company capitalized certain costs in connection with obtaining its borrowings, including lender, legal, advisory and accounting fees. These costs are being amortized over the term of the related loan using the effective interest method. Deferred loan cost amortization is included in interest expense. Unamortized deferred loan costs associated with loans paid off or refinanced with different lenders are charged off in the period in which such an event occurs. Deferred loan/debt issuance costs are classified as a reduction of long term debt.

***Income Taxes***

The majority of the Company's taxable income or loss is passed through to its partners and is reported on the respective partner's tax returns for federal and state income tax purposes. Accordingly, there is no provision or accrual for income taxes for federal and state income tax purposes included in these consolidated financial statements attributable to the passthrough income. However, as a result of the corporate status of Desert Ram South, Inc., the Company has accrued federal and state income taxes related to Desert Ram South's taxable earnings.

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

The Company provides for income tax expense based on the liability method of accounting for income taxes. Deferred tax assets and liabilities are recorded based upon differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The establishment of a valuation allowance requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. Under U.S. GAAP, the valuation allowance is recorded to reduce the Company's deferred tax assets to an amount that is more likely than not to be realized and is based upon the uncertainty of the realization of certain federal and state deferred tax assets related to net operating loss carryforwards and other tax attributes. The ultimate realization of the deferred tax assets depends on the generation of sufficient taxable income.

The income tax provision reflects the full benefit of all positions that have been taken in the Company's income tax returns, except to the extent that such positions are uncertain and fall below the recognition requirements. In the event that the Company determines that a tax position meets the uncertainty criteria, an additional liability or benefit will result. The amount of unrecognized tax benefit requires management to make significant assumptions about the expected outcomes of certain tax positions included in filed or yet to be filed tax returns. As of December 31, 2025 and 2024, the Company did not have any uncertain tax positions. The Company is subject to income taxes in the United States and the state of New Mexico. The Company's tax filings for 2025 and 2024 are subject to audit by the federal and state taxing authorities in jurisdictions where we conduct business. None of the Company's federal or state tax returns are currently under examination. In the event our tax filings are audited, we may be subject to assessments of additional taxes that are resolved with the authorities or through the courts.

***Loss per Common Unit***

Basic loss per share is computed using the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed using the weighted-average number of common shares and the dilutive effect of contingent shares outstanding during the period. Potentially dilutive contingent shares, which consist of warrants for common shares have been excluded from the diluted loss per share calculation because their effect is anti-dilutive.

The following represents the computation of basic and diluted earnings per common unit for the years ended December 31, 2025 and 2024 (in thousands, except unit and per unit data):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  Net loss – basic and diluted | $(73071) | $(1075) |
|  Shares used in computation: |  |  |
|  Weighted-average common units outstanding – basic and diluted | 1114 | 1000 |
|  Weighted-average warrants included as common units outstanding - basic and diluted | 646 |  |
|  Total weighted-average common unit equivalents outstanding - basic and diluted | 1760 | 1000 |
|  Loss per common unit – basic and diluted | $(41518) | $(1075) |

---

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

The following weighted average common unit equivalents are excluded from the calculation of weighted average common units outstanding because their inclusion would have been anti-dilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  Contingently issuable warrants |  | 283 |  | 1001 |

---

***New Accounting Pronouncements***

*Recently Adopted Accounting Pronouncements* 

In 2025, we retrospectively adopted ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures.* The amendments in this update require entities to disclose specific categories in the effective tax rate reconciliation and provide additional information for reconciling items where the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income/loss by the applicable statutory income tax rate. In addition, entities are required to disclose the year-to-date amount of income taxes paid (net of refunds received) disaggregated by jurisdictions. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The adoption of this update did not have a material impact on its consolidated financial statements or related disclosures. Refer to Note 8 – Income Taxes.

In 2024, we adopted ASU 2023-07, Segment Reporting (Topic 280). This guidance requires a public entity, including entities with a single reportable segment, to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. This ASU was effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of this update did not have a material impact on our Financial Statements. Refer to Note 9 – Segments for further information.

*Recent Accounting Pronouncements Not Yet Adopted* 

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"). The guidance in ASU 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

**3. Property, Plant, and Equipment** 

Property, plant, and equipment at December 31, 2025 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
|  Depreciable property, plant and equipment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Furniture and fixtures | $240 | $165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles | 886 | 239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings | 388 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements | 2076 | 975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery and equipment | 29162 | 4834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pipelines and pits | 3768 | 512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total depreciable property, plant and equipment, gross | 36520 | 6803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated depreciation | (4120) | (588) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total depreciable property, plant and equipment, net | 32400 | 6215 |
|  Non-depreciable property, plant and equipment |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 23154 | 6998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in progress | 32 | 578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-depreciable property, plant and equipment | 23186 | 7576 |
|  Total property, plant and equipment, net | $55586 | $13791 |

---

On December 30, 2025, the Company entered into the sale of a certain portion of its land from the Desert Ram Ranch. The Company recognized a gain (net of selling expenses) in the amount of approximately $2.1 million, which is included in gain on sale of assets in the Company's consolidated statements of operations for the year ended December 31, 2025.

On September 16, 2024, the Company entered into an agreement to sell a portion of land. The Company recognized a gain (net of selling expenses) in the amount of $5.0 million which is included in gain on sale of assets in the Company's consolidated statements of operations for the year ended December 31, 2024.

All property and equipment are held and used in the United States. Depreciation expense for property, plant, and equipment for the year ended December 31, 2025 and 2024 was approximately $3.6 and $0.6 million, respectively.

**4. Acquisitions** 

*Accelerated Acquisition* 

On April 14, 2025, the Company acquired 100% of the equity interests in Accelerated Water Resources, LLC ("Accelerated") from Basin Properties, LLC and NGL Water Solutions Permian, LLC (the "Accelerated Acquisition") in exchange for cash. In connection with the Accelerated Acquisition, the Company acquired two ranches with an aggregate of approximately 72,000 acres consisting of fee acreage and leased acres. The Accelerated Acquisition compliments the Company's business by increasing the total acres owned by the Company and resource sales and royalties from water, caliche and other royalties from saltwater disposal. The transaction costs incurred associated with the acquisition amounted to approximately $3.1 million and are included in transaction costs on the accompanying statements of operations. The Accelerated Acquisition was financed through long-term debt.

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

The transaction was accounted for as a business combination under ASC 805, Business Combinations, with the purchase price allocated to the acquired tangible and intangible assets and liabilities based on their estimated fair values as of the acquisition date. The Company makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. The most significant assumptions relate to the estimated fair values of the acquired intangibles, which were estimated utilizing a discounted cash flow model. These methods are considered Level 3 fair value estimates and include significant assumptions of future revenues and cost estimates, discounted using weighted average cost of capital for industry peers. The most significant input to the valuation was the weighted average cost of capital of 20%. Fair value estimates involve significant assumptions and are classified as Level 3 in the fair value hierarchy.

The following table summarizes the preliminary allocation of the purchase price at the date of acquisition:

---

| | |
|:---|:---|
| **(in thousands)** | |
|  Purchase price, net | $191684 |
|  Fair value of total consideration transferred | $191684 |
|  Recognized amounts of identifiable assets acquired and liabilities assumed: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 9748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued revenue | 4984 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory | 737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ranch properties | 16630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment | 23527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 138894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (1402) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes payable | (887) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | (897) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets acquired | $191684 |

---

Intangible assets acquired include permits, water rights, surface rights, and saltwater disposal rights associated with the operations of the oil and gas services. See Note 2 – Summary of Significant Accounting Policies for further information.

From the date of the Accelerated Acquisition through December 31, 2025, revenues and operating income associated with the operations acquired through the acquisition totaled approximately $23.2 million and $16.0 million, respectively.

***Pro Forma Financial Information (Unaudited)***

The following unaudited summary financial information for the years ended December 31, 2025 and 2024 gives effect to the Accelerated Acquisition as if it had been completed on January 1, 2024. The unaudited pro forma financial information is provided for illustrative purposes only and does not purport to represent what the actual consolidated results of operations or the consolidated financial position of the Company would have been had the Accelerated Acquisition and related financing occurred on the date noted above, nor are they indicative of future results.

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| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
|  Total revenue | $46019 | $61407 |
|  Net income (loss) | $(24109) | $39561 |

---

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

Pro forma net income (loss) includes loss on extinguishment of debt allocated to Accelerated of $54.9 million and zero for the years ended December 31, 2025 and December 31, 2024, respectively.

*Letter of Intent* 

On December 22, 2025, the Company signed a letter of intent to acquire approximately 22,000 fee surface acres and 28,000 federal grazing lease acres and the related water rights, contracts and permits for cash consideration of $70.0 million. The Company paid a deposit of $8.0 million to the seller on December 22, 2025, which is recorded within prepaid expenses and other current assets on the consolidated balance sheets for the year ended December 31, 2025. The transaction is expected to close in 2026.

*Desert Ram Acquisition* 

On April 4, 2024, the acquisition date, the Company acquired 100% of the equity interests in NGL South Ranch, Inc. and NGL North Ranch, LLC (renamed Desert Ram South, Inc. and Desert Ram North Ranch, LLC, respectively) from NGL Water Solutions Permian, LLC for cash consideration of $68.5 million, plus post-closing adjustments (the "Desert Ram Acquisition"). The acquired entities provide oil and gas services, including caliche mining, royalties from saltwater disposal, and water sales. The Desert Ram Acquisition cash purchase consideration was financed with our long-term debt.

The transaction was accounted for as a business combination under ASC 805, Business Combinations, with the purchase price allocated to the acquired tangible and intangible assets and liabilities based on their estimated fair values as of the acquisition date. The Company makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. The most significant assumptions relate to the estimated fair values of the acquired intangibles, which were estimated utilizing a discounted cash flow model. These methods are considered Level 3 fair value estimates. The most significant input to the valuation was the weighted average cost of capital of 16.5%. Fair value estimates involve significant assumptions and are classified as Level 3 in the fair value hierarchy. The Company incurred approximately $361 thousand in transaction costs related to the transaction, which are recorded within General and administrative expense on the consolidated statements of operations.

The following tables summarize the consideration and the amounts of the assets acquired and liabilities assumed at the acquisition date:

---

| | |
|:---|:---|
| **(in thousands)** | |
|  Purchase price, net | $68374 |
|  Fair value of total consideration transferred | $68374 |
|  Recognized amounts of identifiable assets acquired and liabilities assumed |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | $57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment | 12876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 67120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | (11549) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets acquired | $68374 |

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

Intangible assets acquired include permits, water rights and surface rights associated with the operations of the oil and gas services. See Note 2 – Summary of Significant Accounting Policies for further information.

From the date of the Desert Ram Acquisition through December 31, 2024, revenues and operating income associated with the operations acquired through the acquisition totaled approximately $9.9 million and $6.6 million, respectively.

***Pro Forma Financial Information (Unaudited)***

The following unaudited summary financial information for the year ended December 31, 2024 gives effect to the Desert Ram Acquisition as if it had been completed on January 1, 2024. The unaudited pro forma financial information is provided for illustrative purposes only and does not purport to represent what the actual consolidated results of operations or the consolidated financial position of the Company would have been had the Desert Ram Acquisition and related financing occurred on the date noted above, nor are they indicative of future results.

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| | |
|:---|:---|
| **(in thousands)** | **2024** |
|  Total revenue | $20171 |
|  Net income | $581 |

---

**5. Intangible Assets** 

The following table identifies the weighted average useful lives by class of intangible asset:

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| | | |
|:---|:---|:---|
|  | **Weighted Average**<br> **Remaining Useful Life**<br> **(in years)** | **Weighted Average**<br> **Remaining Useful Life**<br> **(in years)** |
|  Water rights |  | 13.9 |
|  Surface rights |  | 13.9 |
|  Saltwater disposal rights |  | 14.3 |

---

Definite lived intangible assets are comprised of the following at December 31, 2025 and 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| **(in thousands)** |  |  |  |  |  |  |
|  | **Gross<br>Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net** | **Gross<br>Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net** |
|  Water rights | $136166 | $(9783) | $126383 | $44612 | $(2229) | $42383 |
|  Surface rights | 60550 | (4528) | 56022 | 22508 | (1125) | 21383 |
|  Saltwater disposal rights | 9300 | (465) | 8835 |  |  |  |
|  Total | $206016 | $(14776) | $191240 | $67120 | $(3354) | $63766 |

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Amortization expense for the years ended December 31, 2025 and 2024, for intangible assets, which include permits, water rights, and surface rights, was approximately $11.4 million and $3.4 million, respectively.

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

Estimated remaining amortization expense for the future periods is expected to be as follows:

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| | |
|:---|:---|
| **(in thousands)**<br> **Year Ending December 31,** | |
| 2026 | 13734 |
| 2027 | 13734 |
| 2028 | 13734 |
| 2029 | 13734 |
| 2030 | 13734 |
|  Thereafter | 122568 |
|  Total future amortization | $191240 |

---

**6. Long Term Debt - Related Party** 

On January 9, 2024, the Company established a bank line-of-credit maturing January 9, 2025, with a maximum borrowing base of $0.5 million. Borrowings bore interest at the Prime Rate, with an average interest rate of 8.50% for the year ended December 31, 2024. The bank line-of-credit was closed on April 30, 2024, with no outstanding balance at December 31, 2025 and 2024.

On April 4, 2024, Hydrosource and Desert Ram entered into a 5-year financing agreement that included a $72.0 million term loan and a revolving credit facility with a maximum borrowing base of $5.0 million, both of which mature on April 4, 2029 (the "Credit Facility"). The Credit Facility is fully and unconditionally guaranteed by the parent company, Lea & Eddy Holdings, LLC. Borrowings under the Credit Facility bear interest at Secured Overnight Rate ("SOFR"), plus the applicable margin or certain reference rate, plus the applicable margin, which is set at 8.0%—8.5% depending on the applicable leverage ratio for the most recent four consecutive quarters. Additionally, a commitment fee of 0.5% applies to undrawn amounts on the revolving credit facility. Borrowings under the Credit Facility are secured by a first priority lien and security interest in substantially all assets of the Company. Principal amounts borrowed under the Revolving Credit Facility may be repaid early with prepayment penalties varying by year, beginning at 3% and stepping down annually to 1% in the fifth year of the Credit Facility. Any principal amounts outstanding on the maturity date, April 4, 2029, become due and payable on such date.

In connection with the Credit Facility issuance, the Company additionally issued warrants exercisable for an aggregate of 1,001 Common Units ("April 2024 Warrants"), to designated holders. Each holder received the right to acquire Common Units as set forth in the Warrant Agreement. The April 2024 Warrants may be exercised upon (i) an event of default under the term loan agreement or (ii) an adjustment event, and expire ten years from the original issuance date. Because the warrants included a variable settlement feature, the Company concluded the April 2024 Warrants were not indexed to the Company's own equity and classified them as liabilities. The Company determined the fair value of the April 2024 Warrants at grant date and as of December 31, 2024 to be de minimis. Fair value estimates involve significant assumptions and are classified as Level 3 in the fair value hierarchy.

Pursuant to the terms of the Credit Facility financing agreement, certain monthly interest payments were deferred until September 30, 2024 (i.e., paid-in-kind by increasing the outstanding debt balance with the monthly interest, in-lieu of cash payment). The total amount of non-cash interest paid-in-kind was approximately $5.3 million. Beginning September 30, 2024, interest is payable monthly, with principal payments on the term loan due quarterly, based on the following percentages of the original principal: 1.25% from September 30, 2024 through June 30, 2025; 2.50% from September 30, 2025 through June 30, 2027; and 3.75% from September 30, 2027 through maturity. All remaining principal and accrued interest are due at maturity.

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

On February 28, 2025, the Company amended its Credit Facility, resulting in an increased maximum borrowing base of $7.5 million on its revolving credit facility. Financing costs incurred related to the amendment of approximately $0.1 million were added to the principal balance as paid-in-kind interest. On April 14, 2025, the Company further amended its Credit Facility ("April 2025 Amendment"), resulting in an additional $204 million Term Loan (the "Second Term Loan"). The April 2025 Amendment adjusted the amount and timing of the quarterly principal payments due for the First and Second Term loans as follows: 0.3125% from June 30, 2025 through March 31, 2026; 0.625% from June 30, 2026 through March 31, 2027; 0.9375% from June 30, 2027 through March 31, 2028; and 1.25% from June 30, 2028 through maturity. Additionally, the stepped down prepayment penalties were modified to start at 5.0% and stepping down annually to 4.0%, 2.0%, 1.0%, and zero after year 5. All remaining principal and accrued interest on both the First and Second Term Loan are due at maturity on April 4, 2029.

In connection with the April 2025 Amendment, the Company (i) issued new warrants to a new creditor (the "April 2025 Warrants") and (ii) modified the terms of the outstanding April 2024 warrants. The net effect of the issuance and modification reduced the total number of warrants outstanding from 1,001 to 900. The amendment additionally removed the variable settlement feature from the April 2024 Warrants. As a result, both the amended April 2024 Warrants and the April 2025 Warrants met the requirements for equity classification under ASC 815-40. Accordingly, on April 14, 2025, the Company reclassified the April 2024 Warrant liability to additional paid-in capital. The April 2025 Warrants were allocated a value of approximately $0.8 million, which was recorded within additional paid-in-capital, with a corresponding debt discount.

The Company assessed the debt amendment and modified April 2024 Warrants under ASC 470-50 and concluded that the terms of the new debt are substantially different from the old debt (including the present value of cash flows test exceeding 10%), resulting in extinguishment accounting. Accordingly, the Company derecognized the carrying amount of the old debt and recognized an estimated loss on extinguishment of approximately $70.0 million, which reflects the difference between the carrying amount of the exchanged debt (including unamortized discounts and deferred financing costs of approximately $2.8 million) and the fair value of the new debt, plus fees paid to lenders of approximately $5.6 million and incremental value transferred to the warrantholders of approximately $17.6 million. The $44.1 million premium associated with the debt is primarily attributable to the related party nature of the debt, resulting in a higher interest rate over current market rates. This premium will be amortized over the remaining term of the credit facility utilizing an effective interest rate of approximately 8.2%.

The Credit Facility average interest rates were 13.10% and 13.84% for the years ended December 31, 2025 and 2024, respectively. The applicable margin in effect as of December 31, 2025 and 2024 was 8.5%.

The outstanding balance on long-term debt at December 31, 2025 and 2024 is as follows:

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| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
|  Term loan | $258610 | $72038 |
|  Revolving line-of-credit | 7000 | 1500 |
|  Total debt | 265610 | 73538 |
|  Debt premium (discount) and issuance costs, net | 35057 | (2962) |
|  Total debt, net | 300667 | 70576 |
|  Current portion of long-term debt | (6038) | (5400) |
|  Long-term debt | $294629 | $65176 |

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

The Level 3 fair value of long-term debt as of December 31, 2025 was approximately $330.0 million. The disclosed fair value of debt is determined primarily utilizing an income approach. As of December 31, 2024, the fair value of long-term debt approximated carrying value.

The principal amounts of long-term debt maturing in future periods are as follows:

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| | |
|:---|:---|
| **(in thousands)**<br> **Year Ending December 31,** | |
| 2026 | $6038 |
| 2027 | 9488 |
| 2028 | 12938 |
| 2029 | 230146 |
| 2030 |  |
|  | $258610 |

---

The Company is subject to financial and non-financial covenants under the Credit Facility, including maintaining audited annual and quarterly financial statements, minimum asset coverage ratio of 1:1, and quarterly leverage ratio that steps down over time, ranging from 3:1 to 1:1 as specified in the Credit Facility. The Company was in compliance with all covenants as of December 31, 2025 and 2024.

For the year ended December 31, 2025, the total interest expense related to long-term debt was approximately $20.7 million, inclusive of $27.7 million of coupon interest expense, net of amortization of net debt premiums and issuance costs of approximately $7.0 million. For the year ended December 31, 2024, interest expense related to long-term debt of approximately $8.4 million includes approximately $7.9 million of coupon interest and amortization of debt discounts and issuance costs of approximately $0.5 million.

As of December 31, 2025 and 2024, there was approximately $0.5 million and $3.5 million, respectively, of available borrowing capacity related to our revolving credit facility.

The Company evaluated the prepayment features embedded in its debt agreement, which require the debt to be prepaid upon the occurrence of certain events, including specified asset sales and changes in control, under ASC 815, *Derivatives and Hedging*. These features represent embedded derivatives that are not clearly and closely related to the host debt. However, the Company has concluded that these embedded derivatives have no fair value at December 31, 2025 and 2024, and therefore no separate embedded derivative liability has been recorded in the accompanying consolidated financial statements.

**7. Leases** 

The Company has operating leases primarily for corporate offices and vehicles. The Company has subleased a portion of the corporate office, for which the Company receives monthly payments, which have been netted with lease costs in the consolidated statements of operations and related disclosures. Sublease income recorded within the consolidated statements of operations for the years ended December 31, 2025 and 2024 totaled approximately $0.2 million and $171 thousand, respectively. The operating lease liabilities are included in Short-term lease liability and Long-term

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**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

lease liability in the consolidated balance sheets. Lease costs and other information related to operating leases for the years ended December 31, 2025 and 2024 are as follows:

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| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
|  General & administrative expense | $654 | $341 |
|  Total lease cost | $654 | $341 |
|  Weighted-average remaining lease term (in years): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 2.9 years | 4.1 years |
|  Weighted-average discount rate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 9.1% | 9.0% |
|  Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows used in operating leases | 635 | 227 |

---

On December 31, 2025, the future minimum payments under the lease are as follows:

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| | |
|:---|:---|
| **(in thousands)**<br> **Year Ending December 31,** | **Operating<br>Leases** |
| 2026 | $606 |
| 2027 | 606 |
| 2028 | 434 |
| 2029 | 68 |
| 2030 |  |
|  Total future minimum lease payments | $1714 |
|  Less: Interest | (203) |
|  Present value of lease liabilities | $1511 |

---

**8. Income Taxes** 

The components of the income tax benefit related to operations are as follows for the years ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
|  Current |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $193 | $325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 58 | 97 |
|  | 251 | 422 |
|  Deferred |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (204) | (367) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | (45) | (81) |
|  | (249) | (448) |
|  Income tax provision (benefit) | $2 | $(26) |

---

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

A reconciliation of our effective income tax rates to the U.S. Federal income tax rate for the years ended December 31, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **Rate** | **Amount** | **Rate** |
|  U.S. Federal income tax rate | $(15344) | 21.0% | $(231) | 21.0% |
|  State income taxes (net of federal benefit)\* |  |  | (5) | 0.4% |
|  Nontaxable or nondeductible items |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nontaxable entities | 15344 | (21.0)% | 210 | (19.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 2 |  |  |  |
|  Effective tax rate | $2 | 0.0% | $(26) | 2.3% |

---

\* New Mexico contributed the majority of our state and local income taxes for all years presented.

The components of net deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Deferred Tax Asset |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 163(j) Interest Limitation | $894 | $1165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred Revenue | 45 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net operating loss carryforward | 25 | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax assets | 964 | 1295 |
|  Deferred Tax Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment | 1700 | 1545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangibles | 10116 | 10852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax liabilities | 11816 | 12397 |
|  Net deferred tax liabilities | $(10852) | $(11102) |

---

A valuation allowance for deferred tax assets, including interest expense carryforwards, is recognized when it is more likely than not that some, or all, of the benefit from the deferred tax asset will not be realized. To assess that likelihood, the Company considered both positive and negative evidence including our financial position and results of operations for the current and preceding years, the availability and timing of reversals of our deferred tax liabilities, as well as the impact of annual utilization limitations of interest expense. Based on our analysis, we believe that it is more-likely-than-not that all of our federal and state deferred tax assets will be utilized. There is no federal valuation allowance as of December 31, 2025 and 2024.

As of December 31, 2025, we have federal net operating loss carryforwards of approximately $0.1 million, which can be carried forward indefinitely and $0.1 million of New Mexico net operating loss carryforwards which expire in 2043.

On July 4, 2025, "An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14" and commonly referred to as the One Big Beautiful Bill Act ("OBBBA") was enacted into law in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

favorable changes to bonus depreciation, domestic research cost expensing, and the business interest limitation. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. There was not a significant impact to our income tax position related to the OBBBA.

Taxes paid, net of refunds, by jurisdiction, for the year ended December 31, 2025 are presented in the table below. No taxes were paid during the year ended December 31, 2024.

---

| | |
|:---|:---|
|  | **2025** |
|  | **(in thousands)** |
|  Federal | $476 |
|  New Mexico | 64 |
|  Total income taxes paid, net of refunds | $540 |

---

**9. Segment Reporting** 

The Company determines its operating and reportable segment in accordance with ASC 280, Segment Reporting, based on the organization's internal management structure, internal reporting, and the manner in which financial information is reviewed and resources are allocated by the Company's chief operating decision maker ("CODM"), which is comprised of the Chief Executive Officer and Chief Financial Officer. The CODM regularly evaluates operating results of one operating and reportable segment. The Company determined that the operating segment is consistent with the organization's structure and CODM's review of operating results. Accordingly, the financial results, assets, and liabilities presented in these financial statements represent the results of the single reporting segment. All of our long-lived assets are located in the United States.

Net loss, as presented on our consolidated statement of operations, is the primary measure most consistent with US GAAP used by the Company's chief operating decision maker to evaluate the performance of and allocate resources within the Company's business. Further, significant segment expenses the CODM reviews and utilizes to manage the Company's operations are cost of sales and general and administrative expenses at the consolidated level (inclusive of related party amounts), which are presented in the Company's consolidated statement of operations. Other segment items included in consolidated net loss include depreciation and amortization expense, gain on sale of property, plant, and equipment, net, interest expense and income tax benefit (expense), which are included in the consolidated statement of operations. The measure of segment assets is reported on the consolidated balance sheet as total assets. The CODM does not review segment assets and expenses at a different level or category.

**10. Related Party Transactions** 

The Company reviewed its agreements and relationships to identify related party transactions. The Company has entered into transactions with a related party, which shares common ownership and significant influence over management. The Company's transactions with the related party were in connection with water treatment services where the related party acted as the contractor providing treated water services to the Company and in certain instances purchased water from the Company.

For the years ended December 31, 2025 and 2024, the Company recognized revenue from sales to the related party totaling approximately $0.5 million and $1.4 million, respectively. The Company also incurred related party cost of sales of approximately $10.2 million and $3.4 million relating to water

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

treatment services and $0.2 million and $0.2 million of miscellaneous general and administrative expenses, respectively. As of December 31, 2025 the Company had no related party receivables. As of December 31, 2024, the Company had approximately $0.02 million in receivables from related party. As of December 31, 2025 and 2024 the Company had approximately $2.7 million and $1.6 million due to related party, respectively.

During 2025, the Company reimbursed a member related to the purchase of property, plant and equipment in the amount of $0.1 million. Additionally, a bonus payment was made to a member related to the Accelerated Acquisition for $0.2 million, recorded within general and administrative expenses.

For the year ended December 31, 2025, the Company incurred approximately $0.2 million in transportation service costs with an entity in which a director holds an indirect equity interest.

Additionally, in April 2024, one of the Company's members repaid a loan on behalf of the Company in the amount of $0.4 million, which was subsequently reimbursed to the member by the Company during 2024.

In 2025, the Company amended its Amended and Restated Limited Liability Company Agreement to increase the number of seats on the Board of Managers, two of which were designated for representatives of lenders under the Company's Credit Facility. This amendment granted such lenders board representation and enhanced governance rights with respect to the Company. As a result, the lenders are considered related parties and the Company classifies the Credit Facility as long-term debt—related party and the related warrants as warrants—related party in the consolidated financial statements.

There were no other significant transactions or balances with related parties for the year ended December 31, 2025 and 2024.

**11. Commitments and Contingencies** 

From time to time the Company enters into certain commitments under normal course of business and is a party to litigation or other legal proceedings that the Company considers to be part of the ordinary course of business. The Company is currently not involved in any legal proceedings that it considers probable or reasonably possible, individually or in aggregate, to result in a material adverse effect on its financial condition, results of operations or liquidity.

**12. Members' Equity** 

*2025 Issuances* 

In August 2024, the Company granted 100 fully vested units to a member of management. The value of the units at the grant date was de minimis, and as such there is no compensation expense associated with this equity classified award. In June 2025, the Company issued 100 units to the member of management.

In July 2025, the Company sold 95 Common Units of the Company to a new member and received total cash proceeds of approximately $14.0 million from the sale of the Common Units, and as a result, the issued and outstanding common units was approximately 1,195 Common Units.

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##### [**Table of Contents**](#toc)
**Lea & Eddy Holdings, LLC and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

*2024 Issuance* 

On April 4, 2024, pursuant to the amended and restated LLC agreement, each Member was deemed to have contributed to the Company in exchange for Common Units.

**13. Subsequent Event** 

The Company has evaluated subsequent events through March 13, 2026, the date these consolidated financial statements were available to be issued and determined there are no subsequent events to report other than those described below.

*Surface Lease* 

On July 12, 2025, the Company entered into a commercial real estate surface lease agreement with a third-party commercial real estate development company for approximately 6.86 acres of land at the Company's Desert Ram Ranch for the development of a commercial convenience store. The agreement has a total term of up to 60 years, including two extension options. As of December 31, 2025, the timing and collection of payments under the agreement was not probable. Effective February 2026, the developer completed construction and payments under the lease are expected to commence in June 2026. The Company expects the transaction to result in the recognition of a net investment in the lease and a gain on sale of approximately $3.3 million, which will be reflected in the Company's results of operations for 2026, subject to final measurement.

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##### [**Table of Contents**](#toc)
**ACCELERATED WATER RESOURCES, LLC** 

CONSOLIDATED FINANCIAL STATEMENTS

**DECEMBER 31, 2024 AND 2023** 

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##### [**Table of Contents**](#toc)
**C O N T E N T S** 

---

| | |
|:---|:---|
|  | PAGE<br>NUMBER |
|  [INDEPENDENT AUDITOR'S REPORT](#finb37594_4001) | F-57 |
|  [FINANCIAL STATEMENTS](#finb37594_4002) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED BALANCE SHEETS](#finb37594_4003) | F-59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED STATEMENTS OF OPERATIONS](#finb37594_4004) | F-60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED STATEMENTS OF MEMBERS CAPITAL](#finb37594_4005) | F-61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED STATEMENTS OF CASH FLOWS](#finb37594_4006) | F-62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#finb37594_4007) | F-63 |

---

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##### [**Table of Contents**](#toc)
![LOGO](g37594g34s03.jpg)

**INDEPENDENT AUDITOR'S REPORT** 

January 8, 2026

To the Members of

ACCELERATED WATER RESOURCES, LLC

Midland, Texas

**Opinion** 

We have audited the accompanying consolidated financial statements of ACCELERATED WATER RESOURCES, LLC ("AWR" or "the Company") which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, members' capital and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ACCELERATED WATER RESOURCES, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of ACCELERATED WATER RESOURCES, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Financial Statements** 

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

![LOGO](g37594g34t03.jpg)

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##### [**Table of Contents**](#toc)
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about ACCELERATED WATER RESOURCES, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

**Auditor's Responsibilities for the Audit of the Financial Statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of ACCELERATED WATER RESOURCES , LLC's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluate the overall presentation of the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial
doubt about ACCELERATED WATER RESOURCES , LLC's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

![LOGO](g37594g34u04.jpg)

Houston, Texas

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##### [**Table of Contents**](#toc)
**ACCELERATED WATER RESOURCES, LLC** 

**CONSOLIDATED BALANCE SHEETS** 

**DECEMBER 31, 2024 AND 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| ASSETS |  |  |
|  CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $9932419 | $9647684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net of credit loss $0 | 11331170 | 6213999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 740301 | 740301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 95025 | 104539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL CURRENT ASSETS | 22098915 | 16706523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ranch properties | 16537451 | 16537451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net of accumulated depreciation and amortization of $8,719,661 and $6,648,883 | 23120485 | 21297506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 626000 | 626000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net of accumulated amortization of $15,817,035 and $13,505,417 | 22549402 | 24623620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 274725 | 263380 |
|  TOTAL ASSETS | $85206978 | $80054480 |
| LIABILITIES AND MEMBERS' CAPITAL |  |  |
|  CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $825311 | $128640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 33723 | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other payables | 1555318 | 1275011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of note payable | 43894 | 46874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL CURRENT LIABILITIES | 2458246 | 1453525 |
|  OTHER LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 461411 | 298177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES | 2919657 | 1751702 |
|  COMMITMENTS AND CONTINGENCIES (See Note J) |  |  |
|  MEMBERS' CAPITAL |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Members' Capital | 81956121 | 77912561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interest in subsidiaries | 331200 | 390217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL MEMBERS' CAPITAL | 82287321 | 78302778 |
|  TOTAL LIABILITIES AND MEMBERS' CAPITAL | $85206978 | $80054480 |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**ACCELERATED WATER RESOURCES, LLC** 

**CONSOLIDATED STATEMENTS OF OPERATIONS** 

**FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  OPERATING REVENUES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fresh water sales | $44049595 | $28816437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface land use rights | 8074581 | 5054180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fresh water transfer services | 4425987 | 2211630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trespass fees | 348477 | 20340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Caliche sales | 987008 | 572128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Topsoil sales | 46447 | 69089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Produced water disposal services | 3475231 | 2596699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OPERATING REVENUES | 61407326 | 39340503 |
|  OPERATING COSTS AND EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | 13871677 | 7682965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating expenses | 886137 | 667841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General & administrative expenses | 3230247 | 2980846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposition of assets | (7560) | (11874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount on asset retirement obligations | 23431 | 15458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 4534150 | 3950164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OPERATING COSTS AND EXPENSES | 22538082 | 15285400 |
|  OPERATING INCOME | 38869244 | 24055103 |
|  OTHER INCOME (EXPENSE): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 877956 | 610293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (7940) | (16493) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OTHER INCOME (EXPENSE) | 870016 | 593800 |
|  NET INCOME | 39739260 | 24648903 |
|  LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 178317 | 137962 |
|  NET INCOME ATTRIBUTABLE TO ACCELERATED WATER RESOURCES, LLC | $39560943 | $24510941 |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**ACCELERATED WATER RESOURCES, LLC** 

**CONSOLIDATED STATEMENT OF MEMBERS' CAPITAL** 

**FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023** 

---

| | | | |
|:---|:---|:---|:---|
|  | ACCELERATED<br>WATER<br>RESOURCES,<br>LLC | NONCONTROLLING<br>INTEREST | TOTAL |
|  BALANCE, DECEMBER 31, 2022 | $79131704 | $446255 | $79577959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 24510941 | 137962 | 24648903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to members | (25730084) | (194000) | (25924084) |
|  BALANCE, DECEMBER 31, 2023 | 77912561 | 390217 | 78302778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 39560943 | 178317 | 39739260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to members | (36441404) | (237334) | (36678738) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contribution from members | 924021 |  | 924021 |
|  BALANCE, DECEMBER 31, 2024 | $81956121 | $331200 | $82287321 |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**ACCELERATED WATER RESOURCES, LLC** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $39739260 | $24648903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 4534150 | 3950164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount on asset retirement obligations | 23431 | 15458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (5117171) | 11574183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories |  | (33975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 9514 | (59431) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 696666 | (287050) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other payables | 280307 | (2977609) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 30723 | (29138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current liabilities | (11345) | 5032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 40185535 | 36806537 |
|  CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions to property, plant and equipment | (4143103) | (9959379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (4143103) | (9959379) |
|  CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of note payable | (2980) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contribution from members | 924021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to noncontrolling interests | (237334) | (194000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to members | (36441404) | (25730084) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (35757697) | (25924084) |
|  NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 284735 | 923074 |
|  CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 9647684 | 8724610 |
|  CASH AND CASH EQUIVALENTS, END OF YEAR | $9932419 | $9647684 |
|  SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid | $7940 | $16492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State taxes paid | $— | $— |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**ACCELERATED WATER RESOURCES, LLC** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**A. Organization and Nature of Operations** 

Accelerated Water Resources LLC ("AWR" or "the Company") was formed on September 24, 2018 as a Delaware limited liability company. AWR's initial Limited Liability Company Agreement was entered into on November 1, 2019 between Basin Properties, LLC ("Basin") and NGL Water Solutions Permian, LLC ("NGL").

The Company is headquartered in Midland, Texas and its principal business is to provide certain resources (i.e. water, caliche, topsoil, etc.) and surface land use rights to crude oil and natural gas producers for their exploration and production activities, primarily in the portion of the Permian Basin located in Southeast New Mexico. The Company also engages in minor cattle operations on its ranch lands.

**B. Summary of Significant Accounting Policies** 

***Organization and principles of consolidation.*** AWR is the sole member of AWR Equipment, LLC ("AWRQ", a Delaware limited liability company), Limestone Basin Properties Ranch, LLC ("LBPR", a Delaware limited liability company), Basin Properties Ranches, LLC ("BPR", a Delaware limited liability company) and Accelerated SWD LLC ("ASWD", a Delaware limited liability company). NGL has no membership interest in ASWD. LBPR has a membership interest (60%) in RRR and Limestone AWR Properties, LLC ("RRRLBPR", a Delaware limited liability company). BPR has a membership interest (60%) in RRR and Basin Properties Ranches, LLC ("RRRBPR", a Delaware limited liability company). RRR Land and Cattle Co. LLC a New Mexico limited liability company ("RRR") owns a non-controlling membership interest in both RRRLBPR and RRRBPR, and is principally responsible for managing the Company's minor cattle operations.

The consolidated financial statements include the accounts of the Company and AWR's wholly-owned or controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

***Non-Controlling Interests.*** Non-controlling interests represent the portion of certain consolidated subsidiaries (i.e. RRRLBPR and RRRBPR) that are owned by third parties. Amounts are adjusted by the non-controlling interest holder's (i.e. RRR) proportionate share of the subsidiaries' earnings or losses each period and any distributions that may have been paid. Non-controlling interests are reported as a component of Members' Equity in AWR's consolidated balance sheet.

***Use of estimates.*** Preparing financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Critical estimates AWR makes in the preparation of its consolidated financial statements include, among others, determining the fair value of assets and liabilities acquired in acquisitions, the collectability of accounts receivable, useful lives and recoverability of property, plant and equipment and amortizable intangible assets, the impairment of long-lived assets and goodwill, the fair value of asset retirement obligations and estimating certain revenues. Although AWR believes these estimates are reasonable, actual results could differ from those estimates.

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##### [**Table of Contents**](#toc)
**B. Summary of Significant Accounting Policies (Continued)** 

***Cash and cash equivalents.*** The Company considers all highly liquid instruments with original maturities of three months or less to be cash equivalents.

***Inventories.*** AWR's inventories are valued at the lower of cost or net realizable value, with cost determined using the weighted-average cost method, including the cost of transfer and storage where applicable, and with net realizable value defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of disposal and transportation.

***Prepaid costs and other.*** The Company's prepaid costs and other current assets consists primarily of prepaid insurance and other prepaid expenses. Prepaid insurance is amortized on a monthly basis based on the length of the commitment period.

***Accounts receivable and allowance for credit losses***. Accounts receivable resulting from the sale of AWR's resources or surface use land rights are generally unsecured. AWR monitors exposure to these customers primarily by reviewing credit ratings, financial statements and payment history. The Company extends credit terms based on its evaluation of each customer's creditworthiness. Receivables are considered past due if full payment is not received by the agreed-upon due date. Past due accounts are generally written off against the allowance for credit losses only after all collection attempts have been exhausted. Management estimates the amount of required allowances for credit losses based upon various factors, including historical loss rates, the age of the accounts receivable and supportable forecasts of future economic condition, and other relevant factors that may affect our ability to collect from customers. At December 31, 2024 and 2023, the Company did not record an allowance for credit losses related to accounts receivable.

***Property, Plant and Equipment.*** AWR records property, plant and equipment at cost, less accumulated depreciation. Acquisitions and improvements that extend the respective asset's useful life are capitalized, and routine maintenance and repairs are expensed as incurred. When the Company disposes of assets, the cost and related accumulated depreciation related to the disposed asset are removed from the accounts, and any resulting gain or loss are included within gain or loss on disposal of assets, net. AWR computes depreciation expense on property, plant and equipment using the straight-line method over the estimated useful lives of the assets, generally ranging from 1 to 40 years. ****

***Ranch Properties.*** Ranch properties is comprised of raw ranch land together with the buildings, fixtures and improvements on the land, and such assets are recorded at cost. See Footnote C for further information.

***Intangible Assets.*** AWR's intangible assets includes contracts and arrangements acquired in asset acquisitions or business combinations, including customer relationships, water resources, caliche resources, trade names, etc. The Company amortizes these intangible assets on a straight-line basis over their 10 to 40-year useful lives. ****

***Goodwill.*** Goodwill represents the excess of the consideration paid for the acquired businesses (in a business combination) over the fair value of the individual assets acquired, net of any liabilities assumed. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The annual, or interim, goodwill impairment test is performed by comparing the fair value of the individual assets acquired to their respective carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the individual asset's fair value, not to exceed the aggregate carrying value of goodwill. The Company performed impairment tests of goodwill at year end 2024 and 2023, respectively. No impairment was required as a result of the annual test.

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**B. Summary of Significant Accounting Policies (Continued)** 

***Income taxes.*** The Company is structured as a limited liability company and has elected to be treated as a partnership for income tax purposes. Accordingly, AWR is a pass-through entity for United States federal income tax purposes and the Company did not have income tax expense for the years ended December 31, 2024 and 2023. Items of income or loss are allocated to the Company's equity members in accordance with their respective equity interest and reported on their individual federal income tax returns. AWR pays state income tax to the state of New Mexico on behalf of most of its equity members.

GAAP requires the Company to evaluate tax positions taken and recognize a tax liability if it is more-likely-than-not that uncertain tax positions taken would not be sustained upon examination by taxing authorities. The Company has analyzed tax positions taken and has concluded that, as of December 31, 2024 and 2023, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements.

Net income or loss for financial statement purposes may differ from taxable income or loss reportable to members as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income or loss allocation requirements under the LLC Agreement. In addition, individual members may have different investment bases depending upon the timing and price of acquisition of their membership units, and each member's tax accounting, which is partially dependent upon the member's tax position, may differ from the accounting followed in the Company's consolidated financial statements. As a result, the aggregate difference in the basis of net assets for financial and tax reporting purposes cannot be readily determined as the Company does not have access to information about each member's tax attributes in the Company.

***Impairments of long-lived assets.*** The Company evaluates the carrying value of its long-lived assets (property, plant and equipment and intangible assets) for potential impairment whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows from the use and eventual disposition of an asset is less than the asset's carrying amount. In this circumstance, the Company recognizes an impairment loss for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.

***Asset retirement obligations.*** The Company records an asset retirement obligation ("ARO") as a liability, and a matching asset retirement cost, at the present value of estimated costs of abandonment, site reclamation and similar activities associated with the Company's water wells and caliche pits. The Company utilizes estimates and current retirement costs to estimate the expected cash outflows for retirement obligations. The Company also estimates the productive life of the water wells and caliche pits, its risk-adjusted interest rate and an inflation factor in order to determine the current present value of this obligation. The Company's ARO liability, aggregating approximately $461,000 and $298,000, is included in other long-term liabilities and the matching asset retirement cost is included in property, plant and equipment, net on the consolidated balance sheet as of December 31, 2024 and 2023, respectively.

***Acquisitions.*** To determine if an acquisition transaction should be accounted for as a business combination or an acquisition of assets, AWR first determines the relative fair value of the assets acquired. If substantially all of the relative fair value is concentrated in a single asset or group of similar assets, or if not but the transaction does not include a significant process (i.e. does not meet the definition of a business), AWR records the transaction as an acquisition of assets. For acquisitions of assets, the purchase price is allocated to the assets acquired based on the relative fair values of such assets and goodwill is not recorded. All other transactions are recorded as business combinations and

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##### [**Table of Contents**](#toc)
**B. Summary of Significant Accounting Policies (Continued)** 

AWR records the assets acquired and liabilities assumed at their acquisition date fair values. For a business combination, the excess of the purchase price over the net fair values of the acquired assets and assumed liabilities is recorded as goodwill.

***Revenue Recognition.*** AWR enters into contracts (i.e. Water Purchase Agreements or Surface Use Agreements) with customers to sell the Company's resources (i.e. water, caliche, topsoil, etc.) or to sell certain rights to crude oil and natural gas producers to use the Company's raw ranch lands for their exploration and production activities. Revenue from these contracts is recognized by the Company in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when the Company's performance obligation under these contracts are satisfied, which generally occurs with the transfer of control of the Company's resources or surface use rights to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk-of-loss, and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the resources and rights being sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contracts. Consideration under these contracts is typically received from the purchaser or customer within 30 days. At December 31, 2024 and 2023, the Company had receivables related to contracts with customers of approximately $11.3 million and $6.2 million, respectively. The Company had approximately $17.8 million in receivables related to contracts with customers at January 1, 2023.

All of AWR's revenue contracts provide for fixed prices for the resources or rights being sold to the customer or producer. The Company generally prices the resources being sold by the barrel or other volume metric, and prices the rights sold by the type of right being sold based upon Surface Use Agreements with customers.

***Fair value***. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories:

***Level 1.*** Measured based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

***Level 2.*** Measured based on quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category would include derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Instruments included in this category are non-exchange traded derivatives such as over-the-counter commodity price swaps and valuation techniques.

***Level 3.*** Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). Items included in this category are asset retirement obligations, asset impairments, asset acquisitions and exchanges and unit-based compensation expense.

Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the

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**B. Summary of Significant Accounting Policies (Continued)** 

fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

AWR's cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current assets and liabilities are carried at amounts that reasonably approximate their fair values due to their short-term nature.

**C. Ranch Properties** 

Ranch properties is comprised of raw ranch land previously acquired, together with the buildings, fixtures and improvements on the ranch land. Such assets are recorded at their initial and additional acquisition consideration costs plus any direct transaction costs. The carrying value of the ranch properties is as follows at December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Limestone Ranch Property | $11060192 | $11060192 |
|  Robbins Ranch Property | 5477259 | 5477259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Ranch Properties | $16537451 | $16537451 |

---

**D. Intangible Assets** 

AWR recorded intangible assets from a previous acquisition that consisted of Water Resources, Caliche Resources and SWD Rights. In November 2019, AWR sold 90% of the SWD Rights asset acquired in the Limestone Ranch Acquisition to NGL. The Water Resources and the remaining 10% of the SWD Rights asset are being amortized using the straight-line method over their estimated useful lives of approximately 40 years. The Caliche Resources are being amortized using the straight-line method over their estimated useful life of 10 years.

AWR recognized intangible assets from a previous acquisition that consisted of customer relations, tradenames and trademarks. These intangible assets are being amortized using the straight-line method over their estimated useful lives of 10 years.

The intangible assets that existed at December 31, 2024 and 2023 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Water Resources | $18169983 | $17869983 |
|  Customer Relations | 13600000 | 13600000 |
|  Caliche Resources | 5351545 | 5351545 |
|  SWD Rights | 744910 | 744910 |
|  Trade Names and Trademarks | 500000 | 500000 |
|  Total | 38366438 | 38066438 |
|  Less Accumulated Amortization | (15817036) | (13442818) |
|  | $22549402 | $24623620 |

---

Amortization expense for the years ended December 31, 2024 and 2023 was $2,374,218 and $2,366,572, respectively.

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##### [**Table of Contents**](#toc)
**D. Intangible Assets (Continued)** 

Future amortization expense of intangible assets are as follows:

---

| | |
|:---|:---|
| 2025 | $2374219.0 |
| 2026 | 2374219.0 |
| 2027 | 2374219.0 |
| 2028 | 1882858.0 |
| 2029 | 429064.0 |
|  Thereafter | 13114823.0 |
|  Total | $22549402.0 |

---

**E. Asset Retirement Obligations** 

AWR has contractual and regulatory obligations at certain facilities for which it will have to perform remediation, dismantlement or removal activities when the assets are retired. Our liability for AROs is discounted to present value. To calculate the liability, AWR makes estimates and assumptions about the retirement cost and the timing of retirement. Changes in these assumptions and estimates may occur as a result of the passage of time and the occurrence of future events. The following table summarizes the changes in the Company's ARO during 2024 and 2023, which is reported within long-term liabilities in our consolidated balance sheet since no ARO liabilities are expected to be settled during 2025:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Beginning Balance | $298177 | $203925 |
|  Liabilities incurred | 139803 | 78794 |
|  Accretion expense | 23431 | 15458 |
|  Ending Balance | $461411 | $298177 |

---

**F. Property, Plant and Equipment** 

The following table sets forth AWR's property, plant and equipment as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Lay-flat Pipelines | $12468008 | $10798866 |
|  Water Infrastructure | 16121034 | 14036502 |
|  Vehicles | 1331661 | 1334656 |
|  Equipment | 1077594 | 906525 |
|  Trailers | 418496 | 418496 |
|  Office Furniture & Equipment | 158252 | 186243 |
|  Ranch Improvements | 238621 | 238621 |
|  Caliche Pits | 26480 | 26480 |
|  Total | 31840146 | 27946389 |
|  Less Accumulated Depreciation | (8719661) | (6648883) |
|  Net Book Value | $23120485 | $21297506 |

---

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**F. Property, Plant and Equipment (Continued)** 

Depreciation expense for the years ended December 31, 2024 and 2023 was $2,159,931 and $1,583,592, respectively.

The Company computes depreciation expense on property, plant and equipment using the straight-line method over the estimated useful lives of the assets as follow: ****

Lay-flat Pipelines 8 to 13 years

Water Wells 40 years

Vehicles 1 to 4 years

Equipment 2 to 5 years

Trailers 1 to 3 years

Office Furniture & Equipment 2 to 7 years

Ranch Improvements 15 years

Caliche Pits 40 years

**G. Inventories** 

AWR's inventories consist of breeding cattle and are valued at the lower of cost or net realizable value, with cost determined using the weighted-average cost method. The inventories had a carrying value at December 31, 2024 and 2023 as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Breeding Cattle | $740301 | $740301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Inventories | $740301 | $740301 |

---

**H. Major Customers** 

The Company operates exclusively within the Permian Basin, primarily in the Southeastern portion of New Mexico. All of the Company's assets are employed in, and all of its revenues and operating income are derived from this geographic region.

The following customers accounted for 10% or more of the Company's revenues for the years ended December 31, 2024 and 2023.

---

| | |
|:---|:---|
| **2024** | **2023** |
|  EOG Resources 20% | EOG Resources 15% |
|  Devon Energy 18% | Conoco Phillips 14% |
|  Civitas Resources 13% | Matador Production 14% |
|  | Devon Energy 11% |

---

Collectively the above customers had an outstanding AR balance of approximately $1 million on December 31, 2024 and 2023, respectively. Because there are numerous other parties available to purchase the Company's resources or surface use rights, the Company believes the loss of these customers would not significantly affect its ability to sell its resources and surface use rights.

**I. Fair Value** 

***Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis.*** Non-recurring fair value measurements include certain nonfinancial assets and liabilities as may be acquired in a business combination or asset acquisition and thereby measured at fair value; impaired long-lived

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**I. Fair Value (Continued)** 

asset assessments; and, the initial recognition of asset retirement obligations for which fair value is used. These estimates are derived from historical costs as well as management's expectation of future cost environments. As there is no corroborating market activity to support the assumptions used, the Company has designated these estimates as Level 3.

**J. Commitments and Contingencies** 

From time to time the Company enters into certain commitments under the normal course of business and is a party to litigation or other legal proceedings that the Company considers to be part of the ordinary course of business. The Company is currently not involved in any legal proceedings that it considers probable or reasonably possible, individually or in the aggregate, to result in a material adverse effect on its financial condition, results of operations or liquidity.

**K. Subsequent Events** 

Subsequent events were evaluated from January 1, 2025 through January 8, 2026, which is the date the financial statements were available to be issued. Basin entered into a Letter of Intent with Hydro Source LLC on February 5, 2025, for the sale of right, title and interest in Accelerated Water Resources, LLC. The transaction closed on April 14, 2025. No other reportable events were noted.

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**ACCELERATED WATER RESOURCES, LLC** 

CONSOLIDATED FINANCIAL STATEMENTS

**MARCH 31, 2025** 

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##### [**Table of Contents**](#toc)
**C O N T E N T S** 

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| | |
|:---|:---|
|  | **PAGE<br>NUMBER** |
|  FINANCIAL STATEMENTS |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED BALANCE SHEETS](#finc37594_502) | F-73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED STATEMENTS OF OPERATIONS](#finc37594_503) | F-74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED STATEMENTS OF MEMBERS ' CAPITAL](#finc37594_504) | F-75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONSOLIDATED STATEMENTS OF CASH FLOWS](#finc37594_505) | F-76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#finc37594_506) | F-77 |

---

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##### [**Table of Contents**](#toc)
**<u>ACCELERATED WATER RESOURCES, LLC</u>** 

**<u>CONSOLIDATED BALANCE SHEETS</u>** 

**<u>MARCH 31, 2025 AND DECEMBER 31, 2024</u>** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025**<br>**(Unaudited)** | **December 31, 2024**<br>**(Audited)** |
| ASSETS |  |  |
|  CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $18783898 | $9932419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net of credit loss $0 | 13127579 | 11331170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 740301 | 740301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 79233 | 95025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL CURRENT ASSETS | 32731011 | 22098915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ranch properties | 16537451 | 16537451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net of accumulated depreciation and amortization of $9,280,253 and $8,719,661 | 22614587 | 23120485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 626000 | 626000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net of accumulated amortization of $16,410,590 and $15,817,035 | 21955847 | 22549402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 283348 | 274725 |
|  TOTAL ASSETS | $94748244 | $85206978 |
| LIABILITIES AND MEMBERS' CAPITAL |  |  |
|  CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $1229203 | $825311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 16667 | 33723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other payables | 1771433 | 1555318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of note payable |  | 43894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL CURRENT LIABILITIES | 3017303 | 2458246 |
|  OTHER LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 463207 | 461411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES | 3480510 | 2919657 |
|  COMMITMENTS AND CONTINGENCIES (See Note J) |  |  |
|  MEMBERS' CAPITAL |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Members' Capital | 90942256 | 81956121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interest in subsidiaries | 325478 | 331200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL MEMBERS' CAPITAL | 91267734 | 82287321 |
|  TOTAL LIABILITIES AND MEMBERS' CAPITAL | $94748244 | $85206978 |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**<u>ACCELERATED WATER RESOURCES, LLC</u>** 

**<u>CONSOLIDATED STATEMENTS OF OPERATIONS</u>** 

**<u>FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024</u>** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
|  OPERATING REVENUES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fresh water sales | $17590632 | $16209806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surface land use rights | 3916825 | 2171410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fresh water transfer services | 321210 | 390220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trespass fees |  | 332697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Caliche sales | 178732 | 98695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Topsoil sales |  | 2560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Produced water disposal services | 826864 | 552761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OPERATING REVENUES | 22834263 | 19758149 |
|  OPERATING COSTS AND EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation and amortization) | 3515518 | 3906790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating expenses | 185256 | 214372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General & administrative expenses | 608851 | 955842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposition of assets | 174477 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount on asset retirement obligations | 8417 | 4900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 1176522 | 1096082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OPERATING COSTS AND EXPENSES | 5669041 | 6177986 |
|  OPERATING INCOME | 17165222 | 13580163 |
|  OTHER INCOME (EXPENSE) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 109113 | 88671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (2162) | (2464) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OTHER INCOME (EXPENSE) | 106951 | 86207 |
|  NET INCOME | 17272173 | 13666370 |
|  LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST | (5722) | (14231) |
|  NET INCOME ATTRIBUTABLE TO ACCELERATED WATER RESOURCES, LLC | $17277895 | $13680601 |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**<u>ACCELERATED WATER RESOURCES, LLC</u>** 

**<u>CONSOLIDATED STATEMENT OF MEMBERS' CAPITAL</u>** 

**<u>FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024</u>** 

---

| | | | |
|:---|:---|:---|:---|
|  | **ACCELERATED<br>WATER<br>RESOURCES, LLC** | **NONCONTROLLING<br>INTEREST** | **TOTAL** |
|  BALANCE, DECEMBER 31, 2024 (Audited) | $81956121 | $331200 | $82287321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | 17277895 | (5722) | 17272173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to members | (8291760) |  | (8291760) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BALANCE, MARCH 31, 2025 (Unaudited) | $90942256 | $325478 | $91267734 |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**<u>ACCELERATED WATER RESOURCES, LLC</u>** 

**<u>CONSOLIDATED STATEMENTS OF CASH FLOWS</u>** 

**<u>FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024</u>** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
|  CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $17272173 | $13650720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense | 1176522 | 1111732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount on asset retirement obligations | 8417 | 4900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (1796409) | 2488568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 15792 | 25292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 403892 | 353803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other payables | 216115 | 202378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (17056) | 112609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current liabilities | (8623) | (9908) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 17270823 | 17940094 |
|  CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions to property, plant and equipment | (95968) | (1442422) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposals to property, plan and equipment | 12278 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (83690) | (1442422) |
|  CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of note payable | (43894) | (19722) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to members | (8291760) | (6495516) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (8335654) | (6515238) |
|  NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 8851479 | 9982434 |
|  CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 9932419 | 9647684 |
|  CASH AND CASH EQUIVALENTS, END OF YEAR | $18783898 | $19630118 |
|  SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid | $2162 | $1463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State taxes paid | $— | $— |

---

The accompanying notes are an integral part of the financial statements.

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##### [**Table of Contents**](#toc)
**ACCELERATED WATER RESOURCES, LLC** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**A. Organization and Nature of Operations** 

Accelerated Water Resources LLC ("AWR" or "the Company") was formed on September 24, 2018 as a Delaware limited liability company. AWR's initial Limited Liability Company Agreement was entered into on November 1, 2019 between Basin Properties, LLC ("Basin") and NGL Water Solutions Permian, LLC ("NGL").

The Company is headquartered in Midland, Texas and its principal business is to provide certain resources (i.e. water, caliche, topsoil, etc.) and surface land use rights to crude oil and natural gas producers for their exploration and production activities, primarily in the portion of the Permian Basin located in Southeast New Mexico. The Company also engages in minor cattle operations on its ranch lands.

**B. Summary of Significant Accounting Policies** 

***Organization and principles of consolidation.*** AWR is the sole member of AWR Equipment, LLC ("AWRQ", a Delaware limited liability company), Limestone Basin Properties Ranch, LLC ("LBPR", a Delaware limited liability company), Basin Properties Ranches, LLC ("BPR", a Delaware limited liability company) and Accelerated SWD LLC ("ASWD", a Delaware limited liability company). NGL has no membership interest in ASWD. LBPR has a membership interest (60%) in RRR and Limestone Basin Properties, LLC ("RRRLBPR", a Delaware limited liability company). BPR has a membership interest (60%) in RRR and Basin Properties Ranches, LLC ("RRRBPR", a Delaware limited liability company). RRR Land and Cattle Co. LLC a New Mexico limited liability company ("RRR") owns a non-controlling membership interest in both RRRLBPR and RRRBPR, and is principally responsible for managing the Company's minor cattle operations.

The consolidated financial statements include the accounts of the Company and AWR's wholly-owned or controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

***Non-Controlling Interests.*** Non-controlling interests represent the portion of certain consolidated subsidiaries (i.e. RRRLBPR and RRRBPR) that are owned by third parties. Amounts are adjusted by the non-controlling interest holder's (i.e. RRR) proportionate share of the subsidiaries' earnings or losses each period and any distributions that may have been paid. Non-controlling interests are reported as a component of Members' Equity in AWR's consolidated balance sheet.

***Use of estimates.*** Preparing financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Critical estimates AWR makes in the preparation of its consolidated financial statements include, among others, determining the fair value of assets and liabilities acquired in acquisitions, the collectability of accounts receivable, useful lives and recoverability of property, plant and equipment and amortizable intangible assets, the impairment of long-lived assets and goodwill, the fair value of asset retirement obligations and estimating certain revenues. Although AWR believes these estimates are reasonable, actual results could differ from those estimates.

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##### [**Table of Contents**](#toc)
**B. Summary of Significant Accounting Policies (Continued)** 

***Cash and cash equivalents.*** The Company considers all highly liquid instruments with original maturities of three months or less to be cash equivalents.

***Inventories.*** AWR's inventories are valued at the lower of cost or net realizable value, with cost determined using the weighted-average cost method, including the cost of transfer and storage where applicable, and with net realizable value defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of disposal and transportation.

***Prepaid costs and other.*** The Company's prepaid costs and other current assets consists primarily of prepaid insurance and other prepaid expenses. Prepaid insurance is amortized on a monthly basis based on the length of the commitment period.

***Accounts receivable and allowance for credit losses***. Accounts receivable resulting from the sale of AWR's resources or surface use land rights are generally unsecured. AWR monitors exposure to these customers primarily by reviewing credit ratings, financial statements and payment history. The Company extends credit terms based on its evaluation of each customer's creditworthiness. Receivables are considered past due if full payment is not received by the agreed-upon due date. Past due accounts are generally written off against the allowance for credit losses only after all collection attempts have been exhausted. Management estimates the amount of required allowances for credit losses based upon various factors, including historical loss rates, the age of the accounts receivable and supportable forecasts of future economic condition, and other relevant factors that may affect our ability to collect from customers. At March 31, 2025 and December 31, 2024, the Company did not record an allowance for credit losses related to accounts receivable.

***Property, Plant and Equipment.*** AWR records property, plant and equipment at cost, less accumulated depreciation. Acquisitions and improvements that extend the respective asset's useful life are capitalized, and routine maintenance and repairs are expensed as incurred. When the Company disposes of assets, the cost and related accumulated depreciation related to the disposed asset are removed from the accounts, and any resulting gain or loss are included within gain or loss on disposal of assets, net. AWR computes depreciation expense on property, plant and equipment using the straight-line method over the estimated useful lives of the assets, generally ranging from 1 to 40 years. ****

***Ranch Properties.*** Ranch properties is comprised of raw ranch land together with the buildings, fixtures and improvements on the land, and such assets are recorded at cost. See Footnote C for further information.

***Intangible Assets.*** AWR's intangible assets includes contracts and arrangements acquired in asset acquisitions or business combinations, including customer relationships, water resources, caliche resources, trade names, etc. The Company amortizes these intangible assets on a straight-line basis over their 10 to 40-year useful lives. ****

***Goodwill.*** Goodwill represents the excess of the consideration paid for the acquired businesses (in a business combination) over the fair value of the individual assets acquired, net of any liabilities assumed. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The annual, or interim, goodwill impairment test is performed by comparing the fair value of the individual assets acquired to their respective carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the individual asset's fair value, not to exceed the aggregate carrying value of goodwill. The Company performed impairment tests of goodwill as of March 31, 2025 and December 31, 2024, respectively. No impairment was required as a result of the test.

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##### [**Table of Contents**](#toc)
**B. Summary of Significant Accounting Policies (Continued)** 

***Income taxes.*** The Company is structured as a limited liability company and has elected to be treated as a partnership for income tax purposes. Accordingly, AWR is a pass-through entity for United States federal income tax purposes and the Company did not have income tax expense for the period ended March 31, 2025, 2025 and the year ended December 31, 2024. Items of income or loss are allocated to the Company's equity members in accordance with their respective equity interest and reported on their individual federal income tax returns. AWR pays state income tax to the state of New Mexico on behalf of most of its equity members.

GAAP requires the Company to evaluate tax positions taken and recognize a tax liability if it is more-likely-than-not that uncertain tax positions taken would not be sustained upon examination by taxing authorities. The Company has analyzed tax positions taken and has concluded that, as of March 31, 2025 and December 31, 2024, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements.

Net income or loss for financial statement purposes may differ from taxable income or loss reportable to members as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income or loss allocation requirements under the LLC Agreement. In addition, individual members may have different investment bases depending upon the timing and price of acquisition of their membership units, and each member's tax accounting, which is partially dependent upon the member's tax position, may differ from the accounting followed in the Company's consolidated financial statements. As a result, the aggregate difference in the basis of net assets for financial and tax reporting purposes cannot be readily determined as the Company does not have access to information about each member's tax attributes in the Company.

***Impairments of long-lived assets.*** The Company evaluates the carrying value of its long-lived assets (property, plant and equipment and intangible assets) for potential impairment whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows from the use and eventual disposition of an asset is less than the asset's carrying amount. In this circumstance, the Company recognizes an impairment loss for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.

***Asset retirement obligations.*** The Company records an asset retirement obligation ("ARO") as a liability, and a matching asset retirement cost, at the present value of estimated costs of abandonment, site reclamation and similar activities associated with the Company's water wells and caliche pits. The Company utilizes estimates and current retirement costs to estimate the expected cash outflows for retirement obligations. The Company also estimates the productive life of the water wells and caliche pits, its risk-adjusted interest rate and an inflation factor in order to determine the current present value of this obligation. The Company's ARO liability, aggregating approximately $463,207 and $461,411, is included in other long-term liabilities and the matching asset retirement cost is included in property, plant and equipment, net on the consolidated balance sheet as of March 31, 2025 and December 31, 2024, respectively.

***Acquisitions.*** To determine if an acquisition transaction should be accounted for as a business combination or an acquisition of assets, AWR first determines the relative fair value of the assets acquired. If substantially all of the relative fair value is concentrated in a single asset or group of similar assets, or if not but the transaction does not include a significant process (i.e. does not meet the definition of a business), AWR records the transaction as an acquisition of assets. For acquisitions of assets, the purchase price is allocated to the assets acquired based on the relative fair values of such assets and goodwill is not recorded. All other transactions are recorded as business combinations and

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##### [**Table of Contents**](#toc)
**B. Summary of Significant Accounting Policies (Continued)** 

AWR records the assets acquired and liabilities assumed at their acquisition date fair values. For a business combination, the excess of the purchase price over the net fair values of the acquired assets and assumed liabilities is recorded as goodwill.

***Revenue Recognition.*** AWR enters into contracts (i.e. Water Purchase Agreements or Surface Use Agreements) with customers to sell the Company's resources (i.e. water, caliche, topsoil, etc.) or to sell certain rights to crude oil and natural gas producers to use the Company's raw ranch lands for their exploration and production activities. Revenue from these contracts is recognized by the Company in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when the Company's performance obligation under these contracts are satisfied, which generally occurs with the transfer of control of the Company's resources or surface use rights to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk-of-loss, and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the resources and rights being sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contracts. Consideration under these contracts is typically received from the purchaser or customer within 30 days. At March 31, 2025 and December 31, 2024, the Company had receivables related to contracts with customers of approximately $13.1 million and $11.3 million, respectively. The Company had approximately $6.2 million in receivables related to contracts with customers at January 1, 2024.

All of AWR's revenue contracts provide for fixed prices for the resources or rights being sold to the customer or producer. The Company generally prices the resources being sold by the barrel or other volume metric, and prices the rights sold by the type of right being sold based upon Surface Use Agreements with customers.

***Fair value***. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories:

***Level 1.*** Measured based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

***Level 2.*** Measured based on quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category would include derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Instruments included in this category are non-exchange traded derivatives such as over-the-counter commodity price swaps and valuation techniques.

***Level 3.*** Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). Items included in this category are asset retirement obligations, asset impairments, asset acquisitions and exchanges and unit-based compensation expense.

Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the

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**B. Summary of Significant Accounting Policies (Continued)** 

fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

AWR's cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current assets and liabilities are carried at amounts that reasonably approximate their fair values due to their short-term nature.

**C. Ranch Properties** 

Ranch properties is comprised of raw ranch land previously acquired, together with the buildings, fixtures and improvements on the ranch land. Such assets are recorded at their initial and additional acquisition consideration costs plus any direct transaction costs. The carrying value of the ranch properties is as follows at March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
|  Limestone Ranch Property | $11060192 | $11060192 |
|  Robbins Ranch Property | 5477259 | 5477259 |
|  Total Ranch Properties | $16537451 | $16537451 |

---

**D. Intangible Assets** 

AWR recorded intangible assets from a previous acquisition that consisted of Water Resources, Caliche Resources and SWD Rights. In November 2019, AWR sold 90% of the SWD Rights asset acquired in the Limestone Ranch Acquisition to NGL. The Water Resources and the remaining 10% of the SWD Rights asset are being amortized using the straight-line method over their estimated useful lives of approximately 40 years. The Caliche Resources are being amortized using the straight-line method over their estimated useful life of 10 years.

AWR recognized intangible assets from a previous acquisition that consisted of customer relations, tradenames and trademarks. These intangible assets are being amortized using the straight-line method over their estimated useful lives of 10 years.

The intangible assets that existed at March 31, 2025 and December 31, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
|  Water Resources | $18169983 | $18169983 |
|  Customer Relations | 13600000 | 13600000 |
|  Caliche Resources | 5351545 | 5351545 |
|  SWD Rights | 744910 | 744910 |
|  Trade Names and Trademarks | 500000 | 500000 |
|  Total | 38366438 | 38066438 |
|  Less Accumulated Amortization | (16410591) | (15817036) |
|  | $21955847 | $22549402 |

---

Amortization expense for the period ended March 31, 2025 and the year ended December 31, 2024 were $593,555 and $2,374,218, respectively.

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**D. Intangible Assets (Continued)** 

Future amortization expense of intangible assets are as follows:

---

| | |
|:---|:---|
| 2025 | $1780664.0 |
| 2026 | 2374219.0 |
| 2027 | 2374219.0 |
| 2028 | 1882858.0 |
| 2029 | 429064.0 |
|  Thereafter | 13114823.0 |
|  Total | $22190597.0 |

---

**E. Asset Retirement Obligations** 

AWR has contractual and regulatory obligations at certain facilities for which it will have to perform remediation, dismantlement or removal activities when the assets are retired. Our liability for AROs is discounted to present value. To calculate the liability, AWR makes estimates and assumptions about the retirement cost and the timing of retirement. Changes in these assumptions and estimates may occur as a result of the passage of time and the occurrence of future events. The following table summarizes the changes in the Company's ARO during the period ended March 31, 2025 and the year ended December 31, 2024, which is reported within long-term liabilities in our consolidated balance sheet since no ARO liabilities are expected to be settled during 2025:

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
|  Beginning Balance | $461411 | $298177 |
|  Liabilities incurred |  | 139803 |
|  Change in estimate | (6621) |  |
|  Accretion expense | 8417 | 23431 |
|  Ending Balance | $463207 | $461411 |

---

**F. Property, Plant and Equipment** 

The following table sets forth AWR's property, plant and equipment as of March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31. 2024** |
|  Lay-flat Pipelines | $12468008 | $12468008 |
|  Water Infrastructure | 16175728 | 16121034 |
|  Vehicles | 1331661 | 1331661 |
|  Equipment | 1077594 | 1077594 |
|  Trailers | 418496 | 418496 |
|  Office Furniture & Equipment | 158252 | 158252 |
|  Ranch Improvements | 238621 | 238621 |
|  Caliche Pits | 26480 | 26480 |
|  Total | 31894840 | 31840146 |
|  Less Accumulated Depreciation | (9280253) | (8719661) |
|  Net Book Value | $22614587 | $23120485 |

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Depreciation expense for the period ended March 31, 2025 and the year ended December 31, 2024 was $560,952 and $2,159,931, respectively.

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**F. Property, Plant and Equipment (Continued)** 

The Company computes depreciation expense on property, plant and equipment using the straight-line method over the estimated useful lives of the assets as follow: ****

Lay-flat Pipelines 8 to 13 years

Water Wells 40 years

Vehicles 1 to 4 years

Equipment 2 to 5 years

Trailers 1 to 3 years

Office Furniture & Equipment 2 to 7 years

Ranch Improvements 15 years

Caliche Pits 40 years

**G. Inventories** 

AWR's inventories consist of breeding cattle and are valued at the lower of cost or net realizable value, with cost determined using the weighted-average cost method. The inventories had a carrying value at March 31, 2025 and December 31, 2024 as follows:

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** |
|  Breeding Cattle | $740301 | $740301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Inventories | $740301 | $740301 |

---

**H. Major Customers** 

The Company operates exclusively within the Permian Basin, primarily in the Southeastern portion of New Mexico. All of the Company's assets are employed in, and all of its revenues and operating income are derived from this geographic region.

The following customers accounted for 10% or more of the Company's revenues for the periods ended March 31, 2025 and 2024.

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| | |
|:---|:---|
| **March 31, 2025** | **March 31, 2024** |
|  EOG Resources 27% | Civitas Resources 34% |
|  Devon Energy 23% | EOG Resources 32% |
|  Conoco Phillips 20% | Devon Energy 14% |
|  Kaiser-Francis 12% |  |

---

Collectively the above customers had an outstanding AR balance of approximately $3 million and $1 million on March 31, 2025 and December 31, 2024, respectively. Because there are numerous other parties available to purchase the Company's resources or surface use rights, the Company believes the loss of these customers would not significantly affect its ability to sell its resources and surface use rights.

**I. Fair Value** 

***Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis.*** Non-recurring fair value measurements include certain nonfinancial assets and liabilities as may be acquired in a business combination or asset acquisition and thereby measured at fair value; impaired long-lived asset assessments; and, the initial recognition of asset retirement obligations for which fair value is

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**I. Fair Value (Continued)** 

used. These estimates are derived from historical costs as well as management's expectation of future cost environments. As there is no corroborating market activity to support the assumptions used, the Company has designated these estimates as Level 3.

**J. Commitments and Contingencies** 

From time to time the Company enters into certain commitments under the normal course of business and is a party to litigation or other legal proceedings that the Company considers to be part of the ordinary course of business. The Company is currently not involved in any legal proceedings that it considers probable or reasonably possible, individually or in the aggregate, to result in a material adverse effect on its financial condition, results of operations or liquidity.

**K. Subsequent Events** 

Subsequent events were evaluated from April 1, 2025 through January 8, 2026 which is the date the financial statements were available to be issued. Basin entered into a Letter of Intent with Hydro Source LLC on February 5, 2025, for the sale of right, title and interest in Accelerated Water Resources, LLC. The transaction closed on April 14, 2025. No other reportable events were noted.

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**DE IV Flow, LLC** 

**Combined Carve-Out Financial Statements** 

**December 31, 2025, and December 31, 2024** 

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**DE IV FLOW, LLC** 

**INDEX TO THE COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
|  | Page |
|  [Report of Independent Certified Public Accountants](#fin37594_200) | F-87 |
|  [Combined Carve-Out Balance Sheets as of December 31, 2025 and December 31, 2024](#fin37594_201) | F-89 |
|  [Combined Carve-Out Statements of Operations for the Years Ended December 31, 2025 and 2024](#fin37594_202) | F-90 |
|  [Combined Carve-Out Statements of Changes in Net Parent Investment for the Years Ended December 31, 2025 and 2024](#fin37594_203) | F-91 |
|  [Combined Carve-Out Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#fin37594_204) | F-92 |
|  [Notes to the Combined Carve-Out Financial Statements](#fin37594_205) | F-93 |

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![LOGO](g37594g00a31.jpg)

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|:---|:---|
|  <br> **GRANT THORNTON LLP**<br>500 North Akard Street, Suite 1200<br> Dallas, TX, 75201<br>**D** +1 214 561 2300<br> **F** +1 214 561 2370<br>| **REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS**<br>Board of Managers<br> DE IV Flow, LLC<br>**Opinion**<br>We have audited the combined carve-out financial statements of DE IV Flow, LLC (the "Company"), which comprise the combined carve-out balance sheets as of December 31, 2025 and 2024, and the related combined carve-out statements of operations, changes in net parent investment, and cash flows for the years then ended, and the related notes to the combined carve-out financial statements.<br>In our opinion, the accompanying combined carve-out financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.<br>**Basis for opinion**<br>We conducted our audits of the combined carve-out financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.<br>**Responsibilities of management for the financial statements**<br>Management is responsible for the preparation and fair presentation of the combined carve-out financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined carve-out financial statements that are free from material misstatement, whether due to fraud or error.<br>In preparing the combined carve-out financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date the combined carve-out financial statements are available to be issued. |

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|:---|:---|
| <br>**GT.COM** | <br>Grant Thornton LLP is a U.S. member firm of Grant Thornton International Ltd (GTIL). GTIL and each of its member firms are separate legal entities and are not a worldwide partnership. |

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![LOGO](g37594g00a31.jpg)

&nbsp;&nbsp;&nbsp; **Auditor's responsibilities for the audit of the financial statements**<br>Our objectives are to obtain reasonable assurance about whether the combined carve-out financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the combined carve-out financial statements.<br>In performing an audit in accordance with US GAAS, we:<br>• Exercise professional judgment and maintain professional skepticism throughout the audit.<br>• Identify and assess the risks of material misstatement of the combined carve-out financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the combined carve-out financial statements.<br>• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.<br>• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the combined carve-out financial statements.<br>• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.<br>We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.<br>![LOGO](g37594g00b31.jpg) <br>Dallas, Texas<br> March 11, 2026<br>

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**DE IV Flow, LLC** 

**Combined Carve-Out Balance Sheets** 

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| | | |
|:---|:---|:---|
|  | **As of<br>December 31, 2025** | **As of<br>December 31, 2024** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | $1074368 | $281599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance receivable | 2345589 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sourced water inventory | 716638 | 1501238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 25000 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 4161595 | 1807837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 300076 | 1701733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment | 71407976 | 28576931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total property, plant and equipment | 71708052 | 30278664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Accumulated depreciation, amortization and accretion | (4739230) | (2144321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total property, plant and equipment, net | 66968822 | 28134343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $71130417 | $29942180 |
|  **Liabilities and Net Parent Investment** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | $1357973 | $957326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued capital expenditures | 2789846 | 37378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 4147819 | 994704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 124589 | 33607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 2443097 | 776709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 10) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net parent investment | 64414912 | 28137160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and net parent investment | $71130417 | $29942180 |

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The accompanying notes are an integral part of these combined carve-out financial statements.

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**DE IV Flow, LLC** 

**Combined Carve-Out Statements of Operations** 

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| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream revenues - related party | $55074394 | $56961760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream revenues - third party | 1433663 | 1108640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 56508057 | 58070400 |
|  Cost of revenues: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of goods sold | 23400992 | 25869350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct operating expenses | 2874482 | 3140631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, amortization and accretion | 2672963 | 1806236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of revenues | 28948437 | 30816217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 27559620 | 27254183 |
|  Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on property abandonment | 24844 | 30961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 1093047 | 951950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 1117891 | 982911 |
|  Income from operations | 26441729 | 26271272 |
|  Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (516156) | (181143) |
|  Income before income taxes | 25925573 | 26090129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 90983 | 25996 |
|  Net income | $25834590 | $26064133 |

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The accompanying notes are an integral part of these combined carve-out financial statements.

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**DE IV Flow, LLC** 

**Combined Carve-Out Statements of Changes in Net Parent Investment** 

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| | |
|:---|:---|
|  | **Net Parent<br>Investment** |
|  **Balance - December 31, 2023** | $18625467 |
|  Net transfers to parent | (16552440) |
|  Net income | 26064133 |
|  **Balance - December 31, 2024** | $28137160 |
|  Net transfers from parent | 10443162 |
|  Net income | 25834590 |
|  **Balance - December 31, 2025** | $64414912 |

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The accompanying notes are an integral part of these combined carve-out financial statements.

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**DE IV Flow, LLC** 

**Combined Carve-Out Statements of Cash Flows** 

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| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $25834590 | $26064133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, amortization and accretion | 2672963 | 1806236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 109143 | 13778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax expense | 90983 | 25996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Abandonment of properties | 24844 | 30961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (792769) | (266906) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance receivable | (2345589) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sourced water inventory | 784600 | (1235621) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  | (25000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 400647 | 813950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 26779412 | 27227527 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (38619155) | (10675087) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of properties | 1396581 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (37222574) | (10675087) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net transfers from (to) parent | 10443162 | (16552440) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 10443162 | (16552440) |
|  Net increase (decrease) in cash |  |  |
|  Cash - Beginning of period |  |  |
|  Cash - End of period | $— | $— |
|  Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $464922 | $162217 |
|  Non-cash transactions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions (reductions) to accrued property, plant and equipment | $2752468 | $(3610474) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations incurred or acquired | $1588334 | $29468 |

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The accompanying notes are an integral part of these combined carve-out financial statements

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**DE IV Flow, LLC** 

**Notes to the Combined Carve-Out Financial Statements** 

**1. ORGANIZATION AND NATURE OF BUSINESS** 

***Description of the Business and Formation—***The accompanying combined carve-out financial statements and notes present the combined statements of financial position, statements of operations, and cash flows of DE IV Flow, LLC ("DE Flow" or the "Company"). DE Flow is a wholly owned subsidiary of Double Eagle IV Midco, LLC (the "Parent"), a Delaware limited liability company.

The Company consists of all the assets and operations of the midstream water business of the Parent. The Company was formed to source, recycle and transport supply water to entities engaged in the development of oil and natural gas properties and for the gathering and disposal of produced water volumes related to oil and natural gas operations in the Midland Basin of the Permian Basin in West Texas. ****

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

***Basis of Presentation***—These combined carve-out financial statements reflect the combined historical results of operations, financial position and cash flows of the Company for the periods presented. The Company has historically operated as a component of the Parent's consolidated entity and not as a standalone entity. The accompanying combined carve-out financial statements represent the historical operations of the Company (as that term has been defined by Rule 11-01(d) of Regulation S-X) and have been derived from the Parent's historical accounting records. The combined carve-out financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The combined carve-out financial statements of the Company reflect the assets, liabilities, revenue and expenses directly attributable to the Company, as well as allocations of certain costs deemed reasonable by management, to present the financial position, results of operations, changes in net parent investment and cash flows of the Company as a carved-out entity.

The financial information included herein may not necessarily reflect the combined carve-out financial position, results of operations, changes in net parent investment and cash flows of the Company in the future or what they would have been had the Company been a separate, stand-alone entity during the periods presented. Further, the combined carve-out financial statements may not be indicative of the Company's future performance, financial position, or cash flows. All intracompany transactions and account balances have been eliminated in the combined carve-out financials of the Company.

***Carve-Out Principles***—the following summarizes the carve-out principles applied in the preparing these combined carve-out financial statements.

The combined carve-out financial statements reflect the revenue and expenses attributable to the Company. Revenue and operating expenses that have been specifically identified as pertaining to the Company have been attributed directly without separate allocation or apportionment.

Balance sheet items have been generally attributed based on their actual use during the periods presented, that is, if assets and liabilities are primarily used by and relate to the Company, they have been attributed to the combined carve-out statements of financial position. For shared assets and liabilities that remain with the Parent and are not recognized in these combined carve-out financial statements, the corresponding cost of using the asset or liability has been included in the combined carve-out results of operations.

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The combined carve-out financial statements also include the separate allocation of income, expense, assets, liabilities and cash flows which are based on management judgment, assumptions and estimates as described below. The most significant estimates, judgments and assumptions relate to long-term debt, income tax and net parent investment.

Management considers that the allocations have been made on a reasonable basis, but they are not necessarily indicative of the income and costs that would have been incurred if the Company had been a standalone entity preparing financial statements for the periods presented. All intracompany transactions have been eliminated. All transactions between the Company and the Parent have been included in these combined carve-out financial statements but have not been historically settled in cash. The aggregate net effect of transactions between the Company and the Parent has been reflected in the combined balance sheets as net parent investment and in the combined statements of cash flows as net transfers from (to) parent.

***Corporate Allocations***—Corporate allocations include costs from centralized corporate functions associated with executive management, accounting, treasury, tax, human resources, procurement and other shared services. These costs were allocated to the Company based on direct usage when identifiable and, when not directly identifiable, on a pro-rata basis. In the combined carve-out financial statements, costs have been allocated based on a ratio of revenues of the Company to the total revenues of the Parent. For the years ended December 31, 2025, and 2024, the Company incurred approximately $1.1 million and $0.9 million, respectively, which is included in "General and administrative expenses" in the accompanying combined carve-out statements of operations. Management believes this methodology, including underlying assumptions regarding the allocation of general corporate expenses from the Parent, is reasonable. However, these combined carve-out financial statements may not include all the actual expenses that would have been incurred had the Company operated as a standalone company during the periods presented. Actual costs that would have been incurred had the Company operated as a standalone company would depend on multiple factors. The Company may also incur additional costs associated with being a standalone Company that were not included in the expense allocations and, therefore, would result in additional costs that are not reflected in our historical combined carve-out results of operations, financial position and cash flows. See Note 9 *Related Party Transactions* for further discussion.

***Long-Term Debt***—The Parent is the legal obligor of a debt instrument that is primarily used to finance oil and gas property development, including the assets of the Company. As the Parent is the legal obligor of the debt instrument and no obligation will be transferred to the Company the Parent will retain the obligation associated with the debt instrument. Due to the historical operations of the Company benefitting from the financing provided for oil and gas property development, and because borrowings associated with the debt instrument are primarily driven by capital spend, interest expense and debt cost amortization related to this debt instrument have been allocated to the Company using a ratio of capital additions of the Company to the total capital additions of all the Parent. Management believes this methodology is reasonable; however, the allocated interest expense may not be indicative of the interest expense the carve-out entity would have incurred on a standalone basis since the carve-out entity did not operate with independent financing during the periods presented. As a result, the interest expense reflected herein may differ significantly for interest expense that would be incurred as a standalone entity.

***Income Tax*—**The deferred tax liability and income tax expense represent Texas Franchise Taxes, all operations are under a single jurisdiction. Texas Franchise Tax was derived primarily from the net profit of the oil and gas properties. The current portion of income tax expense and payable will be retained by the Parent since the expense relates to net taxable profits derived from the retained properties and the Parent is responsible for the related payment.

***Net Parent Investment***—Net parent investment represents the Parents's historical net investment in the Company resulting from various transactions with and allocations from the Parent.

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Balances due to and due from the Parent and accumulated earnings attributable to the Company's operations are included in net parent investment. The Parent uses a centralized approach to cash management and financing of its operations, and as such financial transactions related to the Company are accounted for through net parent investment. Accordingly, cash and cash equivalents and debt of the Parent have not been included within these combined carve-out financial statements of the Company. The cash generated by the Company's operations and expenses paid are reflected in "Net transfers from (to) parent" in the accompanying combined carve-out statements of cash flows.

***Use of Estimates***—The preparation of combined carve-out financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined carve-out financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates and judgments are based on information available at the time such estimates and judgments are made which include historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Although management believes the estimates are appropriate, actual results may differ from those estimates.

The most significant estimates pertain to the assessment of recoverability of long-lived assets, the fair value of asset retirement obligations, estimates relating to midstream revenues and expenses, and estimates of expenses related to legal, environmental and other contingencies. Certain of these estimates require assumptions regarding future costs and expenses.

***Accounts Receivable***—Accounts receivable consists of receivables from the sale of supply water and the gathering and disposal of produced water to third parties. The Company regularly reviews all aged accounts receivable for collectability and establishes an allowance as necessary for individual customer balances. As of December 31, 2025, and 2024, the Company's allowances for credit losses related to the sale of supply water and produced water gathering and disposal services were not material and thus accounts receivable in the accompanying combined carve-out balance sheets are presented on a gross basis with no adjustments for expected credit losses.

***Sourced Water Inventory***—Sourced water inventory is stated at the lower of cost or net realizable value. Inventory costs are determined under the weighted-average cost method.

***Property, Plant and Equipment***—Property, plant and equipment consist of land, gathering pipelines, produced water disposal wells, recycled water ponds, facilities and related equipment, which are stated at the lower of historical cost less accumulated depreciation, amortization and accretion, or upon acquisition, at fair value. Expenditures for construction activities, major improvements and betterments that extend the useful life of an asset are capitalized, while expenditures for maintenance and repairs are expensed as incurred. Property, plant and equipment are depreciated over 15 years using the straight-line method over the useful life of the assets.

The Company performs assessments of its long-lived assets whenever events or changes in circumstances indicate that the carrying value of a long-lived asset may not be recoverable. Long-lived assets are grouped at the lowest level for which there are identifiable cash flows that are largely dependent on the cash flows of other groups of assets for purposes of assessing recoverability. Recoverability is generally determined by comparing the carrying value of the asset to the expected undiscounted future cash flows of the asset. Estimates of expected undiscounted future cash flows require the application of management judgment and involve assumptions around future revenues, discount rates, and other factors the Company believes to be reasonable. If the carrying value of the asset is not recoverable, the amount of impairment loss is measured as the excess, if any, of the carrying value of the asset over its estimated fair value.

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***Accrued Liabilities***—Accrued liabilities are comprised of the following at December 31, 2025, and 2024:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  Accrued direct operating expenses | $86503 | 954699 |
|  Accrued environmental liability | 1242090 |  |
|  Accrued property tax | 29380 | 2627 |
|  Total accrued liabilities | $1357973 | $957326 |

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***Accrued Capital Expenditures***—Accrued capital expenditures consist of amounts related to the Company's property, plant and equipment costs incurred but not yet paid as of December 31, 2025, and 2024.

***Asset Retirement Obligations***—Asset retirement obligations ("ARO") relate to future costs associated with the plugging and abandonment of produced water disposal wells, reclamation of produced water pit sites, removal or decommissioning of pipelines, equipment and facilities and returning the land to its original condition. Estimates are based on estimated remaining lives of those assets, external estimates for reclamation and abandonment of assets in the future, inflation, credit adjusted discount rates and timing of settlement. The Company records the fair value of a liability for an ARO in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Accretion expense is included in "Depreciation, amortization and accretion" on the accompanying combined carve-out statements of operations.

The estimated fair value of the Company's ARO at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which considers the Company's credit risk, the time value of money, and the current economic state, to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the Company's ARO at inception and any subsequent upward remeasurements were classified as Level 3 in the fair value hierarchy.

***Deferred Financing Costs***—Deferred financing costs include origination, legal and other fees to obtain or issue debt. These costs relate to the Parent's reserve base loan credit facility. Total deferred financing costs are amortized to interest expense over the term of the associated debt.

***Revenue Recognition***—The Company generates revenue by charging fees on a per unit basis for the delivery of sourced water and the gathering and disposal of produced water. See Note 4, *Revenue from Contracts with Customers,* for further discussion. 

***Concentrations of Credit Risk***—The Company is subject to risk resulting from the concentration of its midstream service revenues with the Parent. For the years ended December 31, 2025, and 2024, the Parent comprised approximately 97% and 98%, respectively, of the midstream service revenues. The Company is almost entirely dependent upon the continued activity of the Parent. See Note 9 *Related Party Transactions* for further discussion.

***Financial Instruments***—The Company's combined carve-out financial instruments include accounts receivable and accrued liabilities and are carried at cost, which approximates fair value due to the short-term nature of these instruments.

***Fair Value Hierarchy***—Fair value represents the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the reporting date. The Company's assets and liabilities that are measured at fair value at each reporting date are classified

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according to a hierarchy that prioritizes inputs and assumptions underlying the valuation techniques. This fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs, and consists of three broad levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—Unadjusted quoted prices in active markets for identical, unrestricted assets and liabilities that the
reporting entity has the ability to access at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and
liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—Unobservable inputs that reflect the entity's own assumptions about the assumption market participants
would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques.

Valuation techniques that maximize the use of observable inputs are favored. Assets and liabilities are classified in their entirety based on the lowest priority level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy.

***Recently Issued Accounting Standards***

The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Recently issued ASUs not yet effective were assessed and determined not to be applicable.

**3. PROPERTY, PLANT AND EQUIPMENT** 

Property, plant and equipment, net of accumulated depreciation, amortization and accretion consist of the following amounts:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  Pipelines | $44146731 | $15084714 |
|  Produced water disposal wells | 11939238 | 7885736 |
|  Recycled water ponds | 12155453 | 3830404 |
|  Facilities | 2656976 | 1266499 |
|  Water wells | 509578 | 509578 |
|  Land | 300076 | 1701733 |
|  Total property, plant and equipment | 71708052 | 30278664 |
|  Less: Accumulated depreciation, amortization and accretion | (4739230) | (2144321) |
|  Total property, plant and equipment, net | $66968822 | $28134343 |

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For the years ended December 31, 2025, and 2024, depreciation, amortization and accretion expense was $2.7 million and $1.8 million, respectively.

**4. REVENUE FROM CONTRACTS WITH CUSTOMERS** 

***Midstream Revenue Recognition***

Midstream revenues are comprised of water sourcing and distribution services and produced water gathering and disposal services. The Company services under fee-based contracts based on throughput. Under these arrangements, the Company receives fees for water handling and disposal

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services. The revenue the Company earns from these arrangements is directly related to (i) in the case of sourced water services, the quantities of sourced water obtained, transported and delivered to the Company's customers for use in their well drilling and completion operations and (ii) in the case of produced water gathering and disposal services, the quantities of produced water gathered, transported and disposed of for the Company's customers. The Company recognizes revenue when it satisfies a performance obligation by delivering a service to a customer. The Company earns substantially all its midstream revenues from commercial agreements with the Parent and its affiliates.

The following is a summary of the Company's types of commercial agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Sourced Water Services Agreements.*** Under the sourced water services agreements, the Company receives a
fee for sourcing, transporting and delivering all sourced water required by the Parent and third parties to carry out its oil and natural gas activities. The fee is comprised of a volumetric fee per barrel ("Bbl") for the sourced water
services the Company provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Produced Water Gathering and Disposal Agreements.*** Under the produced water gathering and disposal
agreements, the Company receives a fee for gathering or disposing of water produced from operating crude oil and natural gas wells. The fee is comprised of a volumetric fee per Bbl for the produced water services the Company provides.

***Performance Obligations***

For sourced water sales, each unit sold is generally considered a distinct good and the related performance obligation is generally satisfied at a point in time (i.e., at the time control of the water is transferred to the customer). The Company recognizes revenue from the sale of sourced water when its contracted performance obligation to deliver water is satisfied and control of the water is transferred to the customer. This usually occurs when the water is delivered to the location specified in the contract and the title and risks of rewards and ownership are transferred to the customer.

For gathering and disposing of produced water, the Company's performance obligations are satisfied over time using volumes delivered to measure progress. The Company records revenue related to the volumes delivered at the contract price at the time of delivery.

***Transaction Price Allocated to Remaining Performance Obligations***

Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

***Contract Balances***

Under the Company's revenue agreements, the Company invoices customers after the Company's performance obligations have been satisfied, at which point payment is unconditional. As such, the Company's revenue agreements do not give rise to contract assets or liabilities.

**5. LONG-TERM DEBT** 

The Parent is subject to a credit agreement with a major financial institution. The debt instrument, a Reserve Base Loan ("RBL"), provides for revolving credit loans to be made and term bench loans to be issued from time to time. The amounts borrowed under the RBL are primarily used for the development of oil and gas properties, including development of the Company's midstream water assets.

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Principal borrowings are under an alternate base rate loan ("ABR Loans"), term benchmark loan ("TBL Loans") and risk-free rate loan ("RFR Loan"). ABR Loans bear interest at a base rate, established by the administrative agent plus an applicable margin ranging from 150 to 250 basis points based on the percentage of borrowing base utilized. TBL Loans bear interest at the adjusted term secured overnight financing rate, plus an applicable margin which ranges from 250 to 350 basis points based on the percentage of borrowing base utilized. RFR Loans bear interest at the adjusted daily simple secured overnight financing rate, plus an applicable margin which ranges from 250 to 350 basis points based on the percentage of borrowing base utilized. In addition, the Parent is charged a commitment fee of 0.50% on the unutilized portion of the borrowing base in effect for a respective period.

See Note 2 *Summary of Significant Accounting Policies* for further discussion.

**6. ASSET RETIREMENT OBLIGATIONS** 

The following table describes the changes to the Company's ARO obligation for the following periods:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  Asset retirement obligations, beginning of period | $776709 | $690727 |
|  Liabilities incurred | 1588334 | 29468 |
|  Accretion expense | 78054 | 56514 |
|  Asset retirement obligations, end of period | $2443097 | $776709 |

---

As of December 31, 2025, and 2024, no assets were legally restricted for use in settling asset retirement obligations, and all obligations were classified as long-term in the combined carve-out balance sheets as the Company does not expect to incur any of these charges within the next year.

**7. NET PARENT INVESTMENT** 

All significant intercompany transactions between the Company and the Parent have been included in the combined carve-out financial statements and are considered to be effectively settled for cash at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the combined carve-out statements of cash flows as a financing activity, in the combined carve-out statements of changes in net parent investment as net transfers from parent, and in the combined carve-out balance sheets as a component of net parent investment.

**8. INCOME TAXES** 

***Income Taxes***

The Company is not a separate legal or taxable entity for federal income tax purposes and, as a result, no provision has been made for federal income taxes. The Parent is organized as a partnership for U.S. federal income tax purposes; therefore, generally not subject to U.S. federal income taxes. Accordingly, the income or loss of the Company is included in the tax returns of the individual members of the Parent. The Company has no tax returns that are subject to examination by the Internal Revenue Service ("IRS") or applicable state taxing authority.

Under the centralized partnership audit rules, the IRS assesses and collects underpayments of tax from the entity instead of from each member. The Company may be able to pass the adjustments through to its members by making a push-out election or, if eligible, by electing out of the centralized partnership audit rules. The collection of tax from the Company is only an administrative convenience for the IRS to collect any underpayment of income taxes including interest and penalties. Income taxes

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on Company income, regardless of who pays the tax or when the tax is paid, is attributed to the members. Any payment made by the Company because of an IRS examination will be treated as a distribution from the Company to the members in the combined carve-out financial statements.

***Texas Margin Tax***

The Company's net income is subject to the Texas Margin Tax that requires tax payments at a maximum statutory effective rate of 0.75% on the taxable margin of each taxable entity that does business in Texas. The margin tax qualifies as an income tax under Accounting Standards Codification 740, *Income Taxes* ("ASC 740"), which requires the Company to recognize currently the impact of this tax on the temporary differences between the book basis and the tax basis attributable to such tax. As of December 31, 2025, and 2024, the Company had temporary differences between GAAP and tax basis, creating a deferred tax liability using the asset and liability method.

For the year ended December 31, 2025, the Company recognized a deferred tax liability in the amount of approximately $0.1 million related to the Texas Margin Tax which is included in the accompanying combined carve-out balance sheets. The Company recognized income tax expense of approximately $0.09 million related to the Texas Margin Tax.

For the year ended December 31, 2024, the Company recognized a deferred tax liability in the amount of approximately $0.03 million related to the Texas Margin Tax which is included in the accompanying combined carve-out balance sheets. The Company recognized income tax expense of approximately $0.03 million related to the Texas Margin Tax.

***Uncertain Tax Positions***

Uncertain tax positions are recognized in the combined carve-out financial statements only if that position is more-likely-than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. The Company had no uncertain tax positions as of December 31, 2025 and 2024.

**9. RELATED PARTY TRANSACTIONS** 

The Company evaluated its relationships, commitments, and other agreements with its counterparties to determine the existence of related party transactions. The following transactions were determined to be between related parties, such as equity partners which own a controlling interest in the Company, certain members of management or entities affiliated therewith.

***Divestitures of Land***

From time to time, the Company acquires and/or divests properties from/to other management members' controlled entities. For the year ended December 31, 2025, the Company received consideration from management members' controlled entities of approximately $1.4 million for the sale of land. No gain or loss was recognized regarding the sale of land. There were no amounts included in "Accounts receivable" or "Accrued liabilities" as of December 31, 2025 in the accompanying combined carve-out balance sheets.

***Midstream Revenues***

Related party transactions include transactions with the Parent and its affiliates. The Company has entered into certain agreements that govern these transactions, the most significant of which are commercial agreements for the provision of midstream services to the Parent. The Company derives

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substantially all its revenue from these commercial agreements, which consist of the following amounts for the years ended December 31, 2025, and 2024:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  Sourced water sales | $35287155 | $36682768 |
|  Produced water gathering and disposal | 19787239 | 20278992 |
|  Total | $55074394 | $56961760 |

---

***Management Services Agreements***

The Company is subject to a management services agreement with the management entity that oversees the Parent. Whereas the employees of the management entity provide all related services to the Company for the operation, maintenance and reporting of the Company. For the services provided, the Company pays actual general and administrative expenses incurred by the management entity. For the year ended December 31, 2025, the Company incurred approximately $0.9 million related to this agreement which is included in "General and administrative expenses" in the accompanying combined carve-out statements of operations. For the year ended December 31, 2024, the Company incurred approximately $0.8 million related to this agreement which is included in "General and administrative expenses" in the accompanying combined carve-out statements of operations.

In addition to the approved general and administrative expense amount, the management service agreement allows for certain direct costs to be billed to the Company. These costs include salaries and burdens related to dedicated operational employees employed by the management entity, and associated direct costs related to the job requirements of those employees. These amounts are directly billed to the Company based on those specific costs. For the year ended December 31, 2025, the Company incurred approximately $0.3 million related to the costs which are included in "General and administrative expenses" in the accompanying combined carve-out statements of operations. For the year ended December 31, 2024, the Company incurred approximately $0.2 million related to the costs which are included in "General and administrative expenses" in the accompanying combined carve-out statements of operations.

***Direct Business Activities***

The Company periodically utilizes direct business services from management-controlled entities. These services utilized relate to IT support, and travel. For the year ended December 31, 2025, the Company incurred approximately $0.03 million in direct business services, which is included in "General and administrative expenses" in the accompanying combined carve-out statements of operations. For the year ended December 31, 2024, the Company incurred approximately $0.1 million in direct business services, which is included in "General and administrative expenses" in the accompanying combined carve-out statements of operations.

**10. COMMITMENTS AND CONTINGENCIES** 

***Litigation***

From time-to-time the Company is party to certain legal, regulatory, or administrative proceedings that arise in the ordinary course and are incidental to the business. As of December 31, 2025, there are no such pending proceedings to which the Company is party to that management believes will have a material adverse effect on the Company's results of operations, cash flows or financial condition. However, future events or circumstances, currently unknown to management, will determine whether the resolution of any litigation or claims will ultimately have a material effect on the results of operations, cash flow or financial condition in any future reporting periods.

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***Environmental***

Environmental expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Environmental expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. Liabilities for expenditures that will not qualify for capitalization are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. Such liabilities are undiscounted unless the timing of cash payments for the liability is fixed or reliably determinable. Environmental liabilities normally involve estimates that are subject to revision until settlement or remediation occurs.

***Casualties and Other Risks***

The Company maintains coverage from various insurance programs, which provide the Company with property damage and other coverage which are customary for the nature and scope of operations.

The Company believes it has adequate insurance coverage, although insurance will not cover every type of loss that might occur. As a result of insurance market conditions, premiums and deductibles for certain insurance policies could increase significantly, and in certain instances, insurance may become unavailable, or available at reduced coverage.

If the Company were to incur a significant loss for which it was not adequately insured, the loss could have a material impact on the results of operations, cash flow or financial condition. In addition, the proceeds of any available insurance may not be paid in a timely manner and may be insufficient if such an event were to occur. Any event that interrupts revenues, or which causes the Company to make a significant expenditure not covered by insurance, could reduce the ability to meet future financial obligations.

The Company has recorded an undiscounted environmental remediation liability of $2.5 million based on current estimates of costs to remediate a site of which $1.1 million was incurred and paid as of December 31, 2025. These estimates are subject to change as additional information becomes available and the ultimate cost of remediation may vary due to uncertainties in regulatory requirements, remediation technologies, and site conditions. At this time, management cannot reasonably estimate additional losses, if any, that may be incurred. The Company has insurance policies that provide coverage for certain environmental remediation costs. Expected insurance recoveries are recorded as receivables when recovery is deemed probable, based on the terms of the policies and the Company's experience with its insurers. As of December 31, 2025, insurance receivables of $2.3 million were recorded in "Insurance receivable" in the accompanying combined carve-out balance sheets.

***Commitments***

**Minimum Commitments** 

The Company entered into a fresh water supply agreement ("WSA") with a third-party during the year ended December 31, 2025. The WSA contains minimum payment obligations over the two-year term of the WSA. For the year ended December 31, 2025, the Company purchased approximately

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$46,000 in fresh water from the third-party under the WSA. As of December 31, 2025, total minimum commitments from purchase obligations not qualifying as leases were as follows:

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| | |
|:---|:---|
|  | **Total Minimum**<br>**Commitments** |
| 2026 | $1125000 |
| 2027 | 666667 |
| 2028 |  |
| 2029 |  |
| 2030 |  |
|  Thereafter |  |
|  Total minimum commitments | $1791667 |

---

**11. SUBSEQUENT EVENTS** 

The Company has evaluated subsequent events through March 11, 2026, the date the combined carve-out financial statements were available to be issued, and determined that there were no additional events that would materially affect the combined carve-out financial statements.

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**Shallow Valley Ranch** 

**Combined Carve-Out Financial Statements** 

**December 31, 2025 and 2024** 

(With Independent Auditor's Report Thereon)

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**Shallow Valley Ranch** 

**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  | Page |
|  [Independent Auditor's Report](#fin37594_301) | F-106 |
|  Combined Carve-Out Financial Statements: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Balance Sheets](#fin37594_302) | F-108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statements of Income](#fin37594_303) | F-109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statements of Changes of Net Investment](#fin37594_304) | F-110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Combined Carve-Out Statements of Cash Flows](#fin37594_305) | F-111 |
|  [Notes to the Combined Carve-Out Financial Statements](#fin37594_306) | F-112 |

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| | |
|:---|:---|
| ![LOGO](g37594g01a17.jpg) | 400 West Illinois Avenue, Suite 1550<br> Midland, Texas 79701<br> 432-683-5226 |

---

To the Owners of the

Shallow Valley Ranch

**REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS** 

***Opinion***

We have audited the accompanying combined carve-out financial statements (financial statements) of certain land, improvements, and surface rights businesses of Abyss, Inc., Cactus Energy, Inc., Owl Exploration, LLC, Shallow Valley Land LLC, and Mark T. Dehlinger (collectively referred to as Shallow Valley Ranch), which comprise the combined carve-out balance sheets as of December 31, 2025 and 2024, and the related combined carve-out statements of income, changes in net investment, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Shallow Valley Ranch as of December 31, 2025 and 2024 and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

***Emphasis of Matter***

As discussed in Note 1 to the financial statements, these financial statements have been prepared on a combined carve-out basis using the management approach, which includes assets, liabilities, revenues, and expenses that management determined relate to the operations of the business being carved out. This approach differs from the legal entity approach and involves allocations of certain shared costs and resources. Accordingly, these financial statements may not be indicative of the financial position or results of operations of the legal entities as a whole. Our opinion is not modified with respect to this matter.

***Basis for Opinion***

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Shallow Valley Ranch and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

***Responsibilities of Management for the Financial Statements***

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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| | |
|:---|:---|
| F-106 | Weaver and Tidwell, L.L.P.<br>**CPAs AND ADVISORS \| WEAVER.COM** |

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The Owners of the

Shallow Valley Ranch

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Shallow Valley Ranch's ability to continue as a going concern for one year after the date that the financial statements are issued or are available to be issued.

***Auditor's Responsibilities for the Audit of the Financial Statements***

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Shallow Valley Ranch's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluate the overall presentation of the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial
doubt about Shallow Valley Ranch's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

![LOGO](g37594g01a18.jpg)

WEAVER AND TIDWELL, L.L.P.

Midland, Texas

March 6, 2026

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**Shallow Valley Ranch** 

**COMBINED CARVE-OUT BALANCE SHEETS** 

*(amounts in thousands)* 

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| | | |
|:---|:---|:---|
|  | **As of<br>December 31,<br>2025** | **As of<br>December 31,<br>2024** |
|  **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | $2403 | $2696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 2403 | 2696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net of accumulated depreciation | 28434 | 26645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 63896 | 38300 |
|  **TOTAL ASSETS** | $94733 | $67641 |
|  **LIABILITIES AND NET INVESTMENT** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $214 | $354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 206 | 187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 420 | 541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (Note 5) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NET INVESTMENT | 94313 | 67100 |
|  **TOTAL LIABILITIES AND NET INVESTMENT** | $94733 | $67641 |

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The accompanying notes are an integral part of these combined carve-out financial statements.

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**Shallow Valley Ranch** 

**COMBINED CARVE-OUT STATEMENTS OF INCOME** 

*(amounts in thousands)* 

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| | | |
|:---|:---|:---|
|  | **For the Year Ended<br>December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  **REVENUES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Water sales | $15486 | $14995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Easement and surface damages | 7026 | 4150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sand and caliche sales |  | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 529 | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 23041 | 19431 |
|  **COSTS AND EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales (exclusive of depreciation) | 5248 | 5839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation expense | 2357 | 2281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Severance and ad valorem taxes expense | 7 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 309 | 252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plant and equipment | (1965) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 5956 | 8380 |
|  **INCOME FROM OPERATIONS** | 17085 | 11051 |
|  **NET INCOME** | $17085 | $11051 |

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The accompanying notes are an integral part of these combined carve-out financial statements.

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**Shallow Valley Ranch** 

**COMBINED CARVE-OUT STATEMENT OF CHANGES IN NET INVESTMENT** 

*(amounts in thousands)* 

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| | |
|:---|:---|
|  **BALANCE—JANUARY 1, 2024** | $67213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in investment | (11164) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 11051 |
|  **BALANCE—DECEMBER 31, 2024** | $67100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in investment | 10127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 17085 |
|  **BALANCE—DECEMBER 31, 2025** | $94313 |

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The accompanying notes are an integral part of these combined carve-out financial statements.

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**Shallow Valley Ranch** 

**COMBINED CARVE-OUT STATEMENTS OF CASH FLOWS** 

*(amounts in thousands)* 

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| | | |
|:---|:---|:---|
|  | **For the Year Ended<br>December 31, 2025** | **For the Year Ended<br>December 31, 2024** |
|  **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $17085 | $11051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 2357 | 2281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of property, plant and equipment | (1965) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 293 | 1453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | (140) | (368) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 19 | 187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 17650 | 14604 |
|  **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the sale of land | 2000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions to property, plant and equipment | (4146) | (1252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions to land | (25631) | (1468) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (27777) | (2720) |
|  **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in net investment | 10127 | (11164) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 10127 | (11164) |
|  Net change in cash |  |  |
|  **CASH AND CASH EQUIVALENTS, beginning of year** |  |  |
|  **CASH AND CASH EQUIVALENTS, end of year** |  |  |
|  | $— | $— |

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The accompanying notes are an integral part of these combined carve-out financial statements.

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**Shallow Valley Ranch** 

**NOTES TO COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

**Note 1. Organization and Basis of Presentation** 

***Description of the Company***

The accompanying combined carve-out financial statements include the assets, liabilities, revenues and expenses of Shallow Valley Ranch, which consists of certain tracts or parcels of land located in Upton, Reagan, Glasscock, Midland, Martin and Howard Counties in Texas ("Land") along with assets located on the Land (collectively, the "Shallow Valley Ranch"). Such Land is owned separately by Abyss, Inc, Cactus Energy, Inc, Owl Exploration, LLC, Shallow Valley Land, LLC ("SV Land"), and by Mark T. Dehlinger, (hereinafter, collectively referred to as the "Contributors") and is expected to be contributed to EagleRock Land, LLC ("EagleRock") in connection with its initial public offering.

Shallow Valley Ranch includes certain ranch equipment, ranch permits, service contracts, buildings, water pipelines, structures and surface agreements associated with and located on the Land.

***Basis of Presentation of Financial Statements***

The accompanying combined carve-out financial statements were prepared on a carve-out basis and were derived from the financial statements and accounting records of the Contributors as the Shallow Valley Ranch does not constitute substantially all of the Contributors' assets, liabilities, revenues or expenses. The combined carve-out financial statements were prepared in conformity with accounting principles generally accepted in the United States of America. All significant intercompany balances and transactions have been eliminated. The historical costs and expenses reflected in the combined carve-out financial statements of the Shallow Valley Ranch include an allocation for certain shared general operating expenses such as repairs & maintenance, salaries, payroll taxes and other miscellaneous general and administrative. These expenses have been allocated to the combined carve-out financial statements of the Shallow Valley Ranch pro-rata based upon revenues, which is considered to be a reasonable reflection of the historical utilization levels of these expenses.

The Shallow Valley Ranch is dependent upon the Contributors for all of its working capital. These combined carve-out financial statements do not include any of the Contributors' cash and cash equivalents as such amounts are not allocable to the Shallow Valley Ranch. Net investment represents the Contributors' interest in the recorded net assets of the Shallow Valley Ranch. All significant transactions between the Shallow Valley Ranch and the Contributors have been included in the accompanying combined carve-out financial statements. Transactions with the Contributors are reflected in the accompanying Combined Carve-Out Statement of Changes in Net Investments as "change in net investment" and in the accompanying Combined Carve-Out Balance Sheets within "net investment".

In the opinion of management, the accompanying combined carve-out financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the assets, liabilities, and net investment of the Shallow Valley Ranch as of December 31, 2025 and 2024, and the reported amounts of revenues and expenses for the years ended December 31, 2025 and 2024 of the Shallow Valley Ranch.

Subsequent events have been evaluated through the issuance date of these financial statements. Any material subsequent events that occurred prior to such a date have been properly recognized or disclosed in the accompanying combined carve-out financial statements.

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##### [**Table of Contents**](#toc)
**Shallow Valley Ranch** 

**NOTES TO COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

***Correction of immaterial error in previously issued financial statements***

As part of preparing the combined carve-out financial statements for the year ended December 31, 2025, Shallow Valley Ranch identified an immaterial error related to the recognition of accounts receivable and water sales revenue as of and for the year ended December 31, 2024. The error resulted in an understatement of accounts receivable and net investment reflected in the opening net investment balance as of January 1, 2024, which represents the beginning balance of the earliest period presented and audited in the accompanying combined carve-out financial statements. Revenues from water sales primarily involve providing oil and natural gas producers access to saltwater disposal wells and freshwater resources in exchange for consideration based on volumes disposed or delivered pursuant to contractual arrangements. The related performance obligations are satisfied over time as the services are provided and volumes are delivered. Management evaluated the identified error and concluded that it was not material to the previously issued 2024 combined carve-out financial statements. Accordingly, the comparative 2024 amounts presented herein have been revised to correct the error. The Company did not reissue the previously issued 2024 financial statements.

The revision increased accounts receivable by approximately $0.8 million from a previously reported amount of $1.9 million to a revised amount of $2.7 million as of December 31, 2024 and increased water sales revenue by approximately $0.1 million from its previously reported amount of $14.9 million to a revised amount of $15.0 million for the year ended December 31, 2024. As a result, the opening net investment balance as of January 1, 2024, which represents the beginning balance of the earliest period presented, was revised by approximately $0.7 million, from $67.2 million to $67.9 million. The revision had no impact on the Company's results of operations or cash flows for the year ended December 31, 2025.

**Note 2. Summary of Significant Accounting Policies** 

***Use of Estimates***

The preparation of the combined carve-out financial statements requires management to make estimates and assumptions to determine the reported amounts of assets, liabilities, revenue and expenses, and in the disclosure of commitments and contingencies. Although management believes these estimates are reasonable, actual results could differ from these estimates.

***Accounts Receivable***

The Shallow Valley Ranch has accounts receivable representing amounts due from various counterparties for water sales and easement payments, which are generally unsecured. The Shallow Valley Ranch monitors credit loss exposure primarily by reviewing credit ratings, financial statements and payment history. Credit terms are extended based on an evaluation of each counterparty's creditworthiness, and collateral is not typically required. Accounts receivable as of January 1, 2024 was $4.1 million.

Shallow Valley Ranch applies the Current Expected Credit Losses model to estimate expected credit losses on accounts receivable. The allowance for credit losses is based on historical loss experience, current economic conditions and reasonable and supportable forecasts. As of December 31, 2025 and 2024, Shallow Valley Ranch determined that expected credit losses were immaterial and recorded no allowance for credit losses. This conclusion considered factors such as the absence of historical credit losses, the short-term nature of receivables, current economic conditions and the counterparties' ability to pay.

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##### [**Table of Contents**](#toc)
**Shallow Valley Ranch** 

**NOTES TO COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

***Property, Plant and Equipment***

The properties associated with the Shallow Valley Ranch are stated at cost and are depreciated using straight-line method over their estimated useful lives, which is estimated as 15 years. Gains and losses on asset sales are reflected in the year of disposal. Repair and maintenance costs associated with property, plant and equipment are expensed as incurred if the costs do not extend the useful life of the asset. If such costs extend the useful life of the asset, the costs are capitalized and depreciated over the appropriate remaining useful life.

Property, plant and equipment are subject to impairment assessments should there be events or changes in circumstances indicating that the carrying amount may not be recoverable. Impairment losses, if any, are recognized in the combined carve-out statement of income in the period in which it occurs. As of December 31, 2025 and 2024, there were no indicators of impairment present for the property, plant and equipment associated with the Shallow Valley Ranch. Please see "*Note 3 – Plant, Property, and Equipment*" for further discussion.

***Land***

Land assets are stated at cost less accumulated impairment, if any. Capitalized costs include the purchase price, professional fees and any directly attributable costs to acquire and bring the land to its intended use. Land assets are not subject to depreciation, as they are considered to have an indefinite useful life. However, the land assets are subject to impairment assessments should there be events or changes in circumstances indicating that the carrying amount may not be recoverable. Impairment losses, if any, are recognized in the combined carve-out statement of income in the period in which it occurs. As of December 31, 2025 and 2024, there were no indicators of impairment present for land assets associated with the Shallow Valley Ranch.

***Revenue Recognition***

Revenues from easements and surface damages, surface use royalties, water sales and resource sales are recognized in the period that the related performance obligations are satisfied. Performance obligations are satisfied when (i) the customer obtains right to use the Land or receive the water or resource; (ii) the customer obtains control of the product; (iii) there are no further obligations to perform related to the revenue; (iv) the transaction price has been determined; and (v) collectability is reasonably assured.

Revenues from easements and surface damages primarily arise from agreements with external customers for the use of the Land. The performance obligation associated with easements and surface damages are identified at the inception of each surface use contract. These obligations typically involve granting access or usage rights to the Land for a specified period of time. The transaction price for these performance obligations is determined based on the consideration expected to be received in exchange for granting access or usage rights. This consideration may include upfront payments, periodic payment based on construction milestones or other forms of consideration stipulated in the contracts. Revenue recognition occurs as the access or usage rights are provided to the external parties and payment can be reasonably measured.

Revenues from the sale of resources such as caliche or sand are recognized when control of the product is transferred to the customer and collectability is reasonably assured. The performance obligations associated with caliche and sand sales revenues are identified at the inception of the contract. These obligations involve the delivery of the resources to the customer in accordance with the

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##### [**Table of Contents**](#toc)
**Shallow Valley Ranch** 

**NOTES TO COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

terms of the resource sale agreement. The consideration received for these obligations is usually a fixed price per unit of resource measurement sold. Revenues for caliche and sand sales are recognized at a point in time when control of the products is transferred to the customer. Control of the product is transferred upon receipt of the resources into the customers' loading vehicles, at which point the customer obtains the ability to direct the use and obtain the benefits from the resources obtained.

Revenues from water sales and surface use royalties primarily involve providing oil and natural gas producers access to saltwater disposal wells and freshwater resources for oil and natural gas production activities in exchange for royalty payments based on volumes disposed onto these saltwater disposal wells or other agreed-upon terms. The performance obligations associated with freshwater production are identified at the inception of the contract. Revenues from freshwater production royalty payments are recognized over time as each delivery of contract-specified freshwater production volume measurement occurs and the collectability for royalty payments is reasonably assured. The performance obligations associated with the royalty revenue occurs through daily acceptance of saltwater at the disposal facility and revenues are recorded based upon actual volumes disposed per contractually agreed-upon per barrel rate as royalty payments.

Deferred revenue consists of amounts for which the criteria for revenue recognition have not yet been met and includes prepayments received for unfulfilled performance obligations that will be recognized on a straight-line basis over the remaining term. Deferred revenue as of December 31, 2025 and 2024 was $0.2 million. During the year ended December 31, 2025, the Company recognized revenues of less than $0.2 million related to deferred revenue as of December 31, 2024.

***Income Taxes***

The Contributors, excluding Mark T. Dehlinger, are not taxpaying entities for purposes of federal and state income taxes. Mark T. Dehlinger is a taxpayer for federal and state income tax purposes; however, the amount of federal and state income taxes associated with the net revenues of Mark T. Dehlinger are not significant. Accordingly, for purposes of these combined carve-out financial statements, no taxes associated with the Shallow Valley Ranch have been recorded in the combined carve-out financial statements.

***Commitments and Contingencies***

Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Liabilities for environmental remediation or restoration claims resulting from allegations of improper operation of assets are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. Shallow Valley Ranch enters into commitment contracts with customers providing access to certain assets, including frac pits and water supply. These contracts were not significant for the years ended December 31, 2025 and 2024.

***Fair Value Measurements***

Shallow Valley Ranch measures certain assets and liabilities at fair value in accordance with ASC 820, *Fair Value Measurement*. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified according to a hierarchy that prioritizes the inputs underlying the valuation techniques. This hierarchy consists of three broad levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Quoted prices in active markets for identical assets or liabilities.

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##### [**Table of Contents**](#toc)
**Shallow Valley Ranch** 

**NOTES TO COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Observable inputs other than quoted prices, such as prices for similar assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Unobservable inputs reflecting Shallow Valley Ranch's own assumptions.

As of December 31, 2025 and December 31, 2024, the Shallow Valley Ranch did not have any assets or liabilities measured at fair value on a recurring basis. Nonrecurring fair value measurements may occur for long-lived assets when impairment indicators are present. No impairments were recorded during the year.

**Note 3. Property, Plant and Equipment** 

The following table reflects the aggregate capitalized costs of Shallow Valley Ranch (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of<br>December 31,<br>2025** | **As of<br>December 31,<br>2024** |
|  Property, plant and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Water wells | $10118 | $9290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Frac pit | 7547 | 6547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buried poly | 5928 | 5691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings | 1588 | 1128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Road bores | 308 | 308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Water transfer system | 12935 | 11314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fences | 1193 | 1193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total property, plant and equipment | 39617 | 35471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Accumulated depreciation | (11183) | (8826) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net | $28434 | $26645 |

---

**Note 4. Supplemental Disclosures to Combined Carve-Out Financial Statements** 

***Accounts Payable and Accrued Liabilities***

Accounts payable and accrued liabilities consisted of the following at the dates indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of<br>December 31,<br>2025** | **As of<br>December 31,<br>2024** |
|  Accrued cost of sales | $203 | $346 |
|  Accrued general and administrative expense | 11 | 8 |
|  Accounts payable and accrued liabilities | $214 | $354 |

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##### [**Table of Contents**](#toc)
**Shallow Valley Ranch** 

**NOTES TO COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

***Accounts Receivable, Net*** 

Components of accounts receivable, net include the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of<br>December 31,<br>2025** | **As of<br>December 31,<br>2024** |
|  Accrued water sales | $2402 | $2696 |
|  Accrued easement and surface damages | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross accounts receivable | 2403 | 2696 |
|  Allowance for credit losses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | $2403 | $2696 |

---

**Note 5. Commitments and Contingencies** 

***Environmental Remediation***

Various federal, state and local laws and regulations covering the discharge of materials into the environment, or otherwise relating to the protection of the environment, may affect the Shallow Valley Ranch. It is not anticipated that the Shallow Valley Ranch will be required to expend significant amounts for compliance with such federal, state and local laws and regulations and therefore no amounts have been accrued for such purposes.

***Litigation***

From time to time, the Shallow Valley Ranch can be involved in various legal proceedings including, but not limited to, commercial disputes, property damage claims, personal injury claims, regulatory compliance matters, disputes with tax authorities and other matters. While the outcome of these legal matters cannot be predicted with certainty, management is not aware of any claims or legal proceedings that it expects to have a material effect on the financial condition, results of operations or cash flows of the Shallow Valley Ranch.

***Commitments***

Shallow Valley Ranch has periodically entered into certain contracts that provide guaranteed access to specified assets and resources. In 2018, the Company entered into an agreement with a third-party to provide use of a frac pit for 20 years. Additionally, in 2023, the Company entered into an agreement with a third-party to be the exclusive provider of water for its frac sand mining facility. These contracts were not significant for the years ended December 31, 2025 and 2024.

**Note 6. Related Party Transactions** 

The Shallow Valley Ranch had transactions with entities under common ownership and control during the years ended December 31, 2025 and 2024. These transactions primarily relate to the provision of goods and services necessary for its operations, as summarized below.

***Nature of Transactions:***

SV Land has a management services agreement (the "Management Agreement") with certain immediate family members (the "Related Parties").

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##### [**Table of Contents**](#toc)
**Shallow Valley Ranch** 

**NOTES TO COMBINED CARVE-OUT FINANCIAL STATEMENTS** 

Pursuant to the Management Agreement, the Related Parties provide various operational services to SV Land, including maintaining, expanding, marketing and overseeing the freshwater water system, overseeing all third-party activity on the Land, installing and maintaining the improvements of SV Land, negotiating easements, rights-of-way and all related agreements along with various other services. In consideration for these services, SV Land pays a management fee equal to 10.0% of its gross revenues.

***Amounts Recorded in the Financial Statements:***

Costs associated with the Management Agreement totaled $1.3 million for the years ended December 31, 2025 and 2024, respectively, and are included in "Cost of sales (exclusive of depreciation)" in the combined carve-out statement of income.

***Terms and Conditions:***

Transactions with related parties were conducted on terms that management believes approximate those prevailing in arm's-length transactions; however, because of the related-party nature of such transactions, the terms may differ from those that would have been negotiated with unrelated third parties.

Management believes these transactions were necessary for SV Land and were settled in the normal course of business. All intercompany transactions between Shallow Valley Ranch and the Contributors, other than those described above, have been reflected in "Net Investment" in the accompanying Combined Carve-Out Statement of Changes in Net Investment.

**Note 7. Subsequent Events** 

In preparing the accompanying financial statements of the Shallow Valley Ranch, management has evaluated all subsequent events and transactions for potential recognition or disclosure through March 6, 2026, the date the combined carve-out financial statements were available for issuance and concluded that no such material events have occurred, other than described below.

The Contributors are currently in discussions to contribute Shallow Valley Ranch to EagleRock in exchange for common equity of EagleRock in connection with, and contingent upon, its anticipated initial public offering during 2026.

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![LOGO](g37594g65v32.jpg)

**EagleRock Land, LLC** 

Class A Shares

Representing Limited Liability Company Interests

**PRELIMINARY PROSPECTUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2026** 

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| | | |
|:---|:---|:---|
| **Goldman Sachs & Co. LLC** | **Barclays** | **J.P. Morgan** |
| **Piper Sandler** |  | **Raymond James** |

---

---

| | | | |
|:---|:---|:---|:---|
| **KeyBanc Capital Markets** | **Pickering Energy Partners** | **Stephens Inc.** | **Texas Capital Securities** |

---

Until , 2026 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.

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##### [**Table of Contents**](#toc)
**PART II** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13.** **Other Expenses of Issuance and Distribution.** <br>

The following table sets forth an itemized statement of the amounts of all expenses (excluding underwriting discounts) expected to be incurred by us in connection with the issuance and distribution of the Class A shares offered and registered hereby. With the exception of the SEC registration fee, FINRA filing fee and the NYSE listing fee, the amounts set forth below are estimates.

---

| | |
|:---|:---|
|  SEC registration fee | $13810 |
|  FINRA filing fee | $15500 |
|  NYSE listing fee | \* |
|  Accounting fees and expenses | \* |
|  Legal fees and expenses | \* |
|  Printing and engraving expenses | \* |
|  Transfer agent and registrar fees | \* |
|  Miscellaneous | \* |
|  Total | $\* |

---

\* To be provided by amendment.

**Item 14.** **Indemnification of Directors and Officers.** <br>

Our LLC Agreement provides that to the fullest extent permitted by applicable law, our directors or officers will not be liable to us. Our LLC Agreement also provides that we must indemnify our directors and officers for acts and omissions to the fullest extent permitted by law. We are also expressly authorized to advance certain expenses (including attorneys' fees and disbursements and court costs) to our directors and officers and carry directors' and officers' insurance providing indemnification for our directors and officers for some liabilities.

Prior to the completion of this offering, we intend to enter into separate indemnification agreements with each of our directors and executive officers. Each indemnification agreement will provide, among other things, for indemnification to the fullest extent permitted by law against liabilities that may arise by reason of such director's or executive officer's service to us. The indemnification agreements will provide for the advancement or payment of all expenses to the indemnitee, subject to certain exceptions. We intend to enter into indemnification agreements with our future directors.

We intend to purchase and customarily maintain insurance covering our officers and directors against various liabilities asserted, including certain liabilities arising under the Securities Act and the Exchange Act, and expenses incurred in connection with their activities and capacity as our officers and directors or any of our direct or indirect subsidiaries.

The underwriting agreement to be entered into in connection with the sale of our Class A shares offered pursuant to this registration statement, the form of which will be filed as an exhibit to this registration statement, provides for indemnification of our officers and directors against certain liabilities arising under the Securities Act or otherwise in connection with this offering.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

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##### [**Table of Contents**](#toc)
**Item 15.** **Recent Sales of Unregistered Securities.** <br>

On December 1, 2025 in connection with the formation of EagleRock, we issued a 100.0% limited liability company interest in us to Lea & Eddy Holdings, LLC. The issuance was exempt from registration under Section 4(a)(2) of the Securities Act. These shares will be cancelled or redeemed in connection with our reorganization. There have been no other sales of unregistered securities within the past three years.

In connection with the formation transactions described herein and pursuant to the terms of the Corporate Reorganization that will be completed prior to the closing of this offering, we will issue Class B shares, representing an aggregate % non-economic limited liability company interest in us to our Existing Owners. Such issuance will not involve any underwriters, underwriting discounts or commissions or a public offering, and such issuance will be exempt from registration requirements pursuant to Section 4(a)(2) of the Securities Act.

**Item 16.** **Exhibits and Financial Statement Schedules.** <br>

(a) Exhibits

The following documents are filed as exhibits to this registration statement:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;\*1.1 | [Form of Underwriting Agreement.](d37594dex11.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*3.1 | [Certificate of Formation of EagleRock Land, LLC.](d37594dex31.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*3.2 | [Certificate of Amendment to the Certificate of Formation of EagleRock Land, LLC.](d37594dex32.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*3.3 | [First Amended and Restated Limited Liability Company Agreement of EagleRock Land, LLC.](d37594dex33.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*3.4 | [Form of Second Amended and Restated Company Agreement of EagleRock Land, LLC.](d37594dex34.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*4.1 | [Form of Registration Rights Agreement.](d37594dex41.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*5.1 | [Form of Opinion of Vinson & Elkins L.L.P. as to the legality of the securities being registered.](d37594dex51.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.1 | [Form of Amended and Restated Company Agreement of EagleRock Land Operating, LLC.](d37594dex101.htm) |
| \*10.2† | [Form of Indemnification Agreement.](d37594dex102.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.3 | [Form of Shareholder's Agreement.](d37594dex103.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.4 | [Form of Voting Agreement.](d37594dex104.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.5 | [Form of Contribution Agreement.](d37594dex105.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.6# | [Form of Produced Water Recycling Rights Agreement.](d37594dex106.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.7 | [Form of Water System Management Agreement.](d37594dex107.htm) |
| \*\*10.8 | Form of Credit Agreement. |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.9† | [Form of Change in Control Severance Plan.](d37594dex109.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.10† | [Form of Long Term Incentive Plan.](d37594dex1010.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.11† | [Form of Employee Stock Purchase Plan.](d37594dex1011.htm) |

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##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.12†# | [Employment Agreement (Gregory Pipkin Jr.).](d37594dex1012.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.13†# | [Employment Agreement (Neal H. Shah).](d37594dex1013.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.14†# | [Employment Agreement (Robert W. Hunt Jr.).](d37594dex1014.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*10.15 | [Form of Warrant Exercise Agreement.](d37594dex1015.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*21.1 | [List of subsidiaries of EagleRock Land, LLC.](d37594dex211.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*23.1 | [Consent of Deloitte & Touche LLP, independent registered public accounting firm to Lea & Eddy Holdings, LLC.](d37594dex231.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*23.2 | [Consent of Deloitte & Touche LLP, independent registered public accounting firm to EagleRock Land, LLC.](d37594dex232.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*23.3 | [Consent of EEPB Company, independent auditors to Accelerated Water Resources, LLC.](d37594dex233.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*23.4 | [Consent of Grant Thornton LLP, independent auditors to DE IV Flow, LLC.](d37594dex234.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*23.5 | [Consent of Weaver and Tidwell, L.L.P., independent auditors to Shallow Valley Ranch.](d37594dex235.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*23.6 | [Consent of Vinson & Elkins L.L.P. (included as part of Exhibit 5.1 hereto).](d37594dex51.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*24.1 | [Power of Attorney (included on the signature page of this Registration Statement).](#sig) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*99.1 | [Consent of Greg Pipkin Jr.](d37594dex991.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*99.2 | [Consent of Richard H. Coats.](d37594dex992.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*99.3 | [Consent of Jeff S. Lott.](d37594dex993.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*99.4 | [Consent of James C. Nelson.](d37594dex994.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*99.5 | [Consent of Stephanie Reed.](d37594dex995.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*99.6 | [Consent of Michael W. Wallace.](d37594dex996.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*107 | [Calculation of Filing Fee Table.](d37594dexfilingfees.htm) |

---

\* Filed herewith.

\*\* To be filed by amendment.

† Management contract or compensatory plan or arrangement.

# Certain portions of this exhibit have been redacted pursuant to Item 601 of Regulation S-K. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon its request.

(b) Financial Statement Schedules

See the index to the financial statements included on page F-1 for a list of the financial statements included in this registration statement.

**Item 17.** **Undertakings.** <br>

The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed
pursuant to Rule 424;

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or
referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the portion of any other free writing prospectus relating to the offering containing material information about the
undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on April 16, 2026.

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| | |
|:---|:---|
| **EagleRock Land, LLC** | **EagleRock Land, LLC** |
| By: | /s/ Greg Pipkin Jr. |
| Name: | Greg Pipkin Jr. |
| Title: | Chief Executive Officer |

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**POWER OF ATTORNEY** 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Gregory Pipkin Jr. and Robert W. Hunt Jr. his or her true and lawful attorneys-in-fact and agents, each with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments, including post-effective amendments, to this registration statement, and any registration statement relating to the offering covered by this registration statement and filed pursuant to Rule 462(b) under the Securities Act, and to file the same, with exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that each of said attorneys-in-fact and agents, or his or her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act, this registration statement has been signed by the following persons and in the capacities indicated on April 16, 2026.

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| | |
|:---|:---|
| **Name** | **Title** |
| /s/ Greg Pipkin Jr.<br> Greg Pipkin Jr. | Chief Executive Officer; Sole Director<br> (Principal Executive Officer) |
| /s/ Neal H. Shah<br> Neal H. Shah | President and Chief Financial Officer<br> (Principal Financial and Accounting Officer) |

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## Exhibit 1.1

**Exhibit 1.1** 

**EagleRock Land, LLC** 

**Class A Shares** 

***<u>Form of Underwriting Agreement</u>***

, 2026

Goldman Sachs & Co. LLC

Barclays Capital Inc.

J.P. Morgan Securities LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As representatives (the "Representatives") of the several Underwriters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; named in Schedule I hereto,

c/o Goldman Sachs & Co. LLC

200 West Street

New York, New York 10282

c/o Barclays Capital Inc.

745 Seventh Avenue

New York, New York 10019

c/o J.P. Morgan Securities LLC

270 Park Avenue

New York, New York 10017

Ladies and Gentlemen:

EagleRock Land, LLC, a Texas limited liability company (the "Company"), proposes, subject to the terms and conditions stated in this agreement (this "Agreement"), to issue and sell to the Underwriters named in Schedule I hereto (the "Underwriters") an aggregate of Class A shares (the "Firm Shares") representing limited liability company interests of the Company ("Class A shares") and, at the election of the Underwriters, up to additional Class A shares (the "Optional Shares") of the Company (the Firm Shares and the Optional Shares that the Underwriters elect to purchase pursuant to Section 2 hereof being collectively called the "Shares").

Raymond James & Associates, Inc. (the "Directed Share Underwriter") has agreed to reserve up to Shares of the Shares to be purchased by it under this Agreement for sale at the direction of the Company to certain parties related to the Company (collectively, "Participants"). The Shares to be sold by the Directed Share Underwriter pursuant to the Directed Share Program are hereinafter called the "Directed Shares." Any Directed Shares not confirmed for purchase by the deadline established therefor by the Directed Share Underwriter in consultation with the Company will be offered to the public by the Underwriters as set forth in the Prospectus.

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The Company was formed in contemplation of the proposed issuance and sale of the Shares (the "Offering"). It is understood and agreed to by all parties that prior to the initial closing of the Offering, the Company will enter into certain corporate reorganization transactions (the "Reorganization Transactions"), pursuant to which the following transactions, among others, will occur (as further described under the headings "Corporate Reorganization" and "Use of Proceeds" in the Pricing Disclosure Package (as defined below)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) EagleRock Land Operating, LLC, a Texas limited liability company ("OpCo") will be formed by the
Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each of Lea & Eddy Holdings, LLC ("L&E"), the existing owners of the Shallow Valley
Ranch (the "Shallow Valley Owners"), and Double Eagle IV Midco, LLC ("Double Eagle" and, collectively with L&E and the Shallow Valley Owners, the "Existing Owners") will contribute cash to the Company in
exchange for    Class B shares representing limited liability company interests of the Company ("Class B shares");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) L&E will contribute all of its subsidiaries (other than the Excluded Assets (as defined in the Pricing
Disclosure Package)) to OpCo in exchange for    membership interests in OpCo ("OpCo Units") and OpCo's assumption of the Predecessor Credit Facility (as defined in the Pricing Disclosure Package);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) each of the Shallow Valley Owners and Double Eagle will contribute certain of their subsidiaries to the Company
in exchange for    OpCo Units and      OpCo Units, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) each of the Company's and OpCo's operating agreements will be amended and restated to facilitate
the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) funds and accounts managed by TCW Asset Management Company LLC ("TCW" and such funds and accounts,
the "TCW Entities") that own warrants to purchase equity interests in L&E (such warrants, the "L&E Warrants") will exercise the L&E Warrants, immediately following which (i) L&E will
distribute    OpCo Units and a corresponding number of Class B shares to the TCW Entities in redemption of their equity interests in L&E and (ii) certain of such TCW Entities will merge with one or more newly
formed subsidiaries of the Company and receive one Class A share in exchange for each OpCo Unit (and Class B share) it holds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Company will issue and sell the Shares to the Underwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Company will contribute all of the net proceeds from the Offering to OpCo in exchange for a number of OpCo
Units equal to the number of Shares issued in the Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) OpCo will use the net proceeds of the Offering as described under the heading "Use of Proceeds" in
the Pricing Disclosure Package.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company and OpCo represent and warrant to, and agree with, each of the Underwriters that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A registration statement on Form S-1 (File No. 333-) (the "Initial Registration Statement") in respect of the offer and sale of the Shares has been filed with the U.S. Securities and Exchange Commission (the "Commission"); the Initial Registration Statement and any post-effective amendment thereto, each in the form heretofore delivered to you, have been declared effective by the Commission in such form; other than a registration statement, if any, increasing the size of the Offering (a "Rule 462(b) Registration Statement"), filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended (the "Act"), which became effective upon filing, no other document with respect to the Initial Registration Statement has been filed with the Commission; and no stop order suspending the effectiveness of the Initial Registration Statement, any post-effective amendment thereto or the Rule 462(b) Registration Statement, if any, has been issued and no proceeding for that purpose or pursuant to Section 8A of the Act has been initiated or threatened by the Commission (any preliminary prospectus included in the Initial Registration Statement or filed with the Commission pursuant to Rule 424(a) under the Act is hereinafter called a "Preliminary Prospectus"; the various parts of the Initial Registration Statement and the Rule 462(b) Registration Statement, if any, including all exhibits thereto and including the information contained in the form of final prospectus filed with the Commission pursuant to Rule 424(b) under the Act in accordance with Section 5(a) hereof and deemed by virtue of Rule 430A under the Act to be part of the Initial Registration Statement at the time it was declared effective, each as amended at the time such part of the Initial Registration Statement became effective or such part of the Rule 462(b) Registration Statement, if any, became or hereafter becomes effective, are hereinafter collectively called the "Registration Statement"; the Preliminary Prospectus relating to the Shares that was included in the Registration Statement immediately prior to the Applicable Time (as defined in Section 1(c) hereof) is hereinafter called the "Pricing Prospectus"; and such final prospectus, in the form first filed pursuant to Rule 424(b) under the Act, is hereinafter called the "Prospectus"; any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Act or Rule 163B under the Act is hereinafter called a "Testing-the-Waters Communication"; and any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Act is hereinafter called a "Written Testing-the-Waters Communication"; and any "issuer free writing prospectus" as defined in Rule 433 under the Act relating to the Shares is hereinafter called an "Issuer Free Writing Prospectus");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (A) No order preventing or suspending the use of any Preliminary Prospectus or any Issuer Free Writing Prospectus has been issued by the Commission, and (B) each Preliminary Prospectus, at the time of filing thereof, conformed in all material respects to the requirements of the Act and the rules and regulations of the Commission thereunder, and did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; *provided*, *however*, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with the Underwriter Information (as defined in Section 9(b) of this Agreement);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the purposes of this Agreement, the "Applicable Time" is : (Eastern time) on the date of this Agreement. The Pricing Prospectus, as supplemented by the information listed on Schedule II(c) hereto, taken together (collectively, the "Pricing Disclosure Package"), as of the Applicable Time, did not, and as of each Time of Delivery (as defined in Section 4(a) of this Agreement) will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication does not conflict with the information contained in the Registration Statement, the Pricing Prospectus or the Prospectus and each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication, as supplemented by and taken together with the Pricing Disclosure Package, as of the Applicable Time, did not, and as of each Time of Delivery will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to statements or omissions made in reliance upon and in conformity with the Underwriter Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Registration Statement conforms, and the Prospectus and any further amendments or supplements to the Registration Statement and the Prospectus will conform, in all material respects to the requirements of the Act and the rules and regulations of the Commission thereunder and do not and will not, as of the applicable effective date as to each part of the Registration Statement, as of the applicable filing date as to the Prospectus and any amendment or supplement thereto, and as of each Time of Delivery, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with the Underwriter Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No documents were filed with the Commission since the Commission's close of business on the business day immediately prior to the date of this Agreement and prior to the execution of this Agreement, except as set forth on Schedule II(b) hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as set forth or contemplated in the Pricing Prospectus, neither the Company, OpCo, nor any of their respective subsidiaries has, since the date of the latest audited financial statements included in the Pricing Prospectus, (i) sustained any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree or (ii) entered into any transaction or agreement (whether or not in the ordinary course of business) that is material to the Company, OpCo and their respective subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent, that is material to the Company, OpCo and their respective subsidiaries taken as a whole, in each case otherwise than as set forth or contemplated in the Pricing Prospectus; and, since the respective dates as of which information is given in the Registration Statement and the Pricing Prospectus, there has not been (x) other than de minimis changes, any change in the equity capitalization of the Company and OpCo (other than as a result of (i) the exercise, if any, of share options or the right to purchase Shares or the grant or

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settlement, if any, of share options, the right to purchase Shares, restricted shares or restricted share units in the ordinary course of business pursuant to the Company's equity plans that are described in the Pricing Prospectus and the Prospectus, or (ii) the issuance, if any, of shares upon conversion of Company and OpCo securities as described in the Pricing Prospectus and the Prospectus or (iii) the Reorganization Transactions) or long-term debt of the Company, OpCo or any of their respective subsidiaries or (y) any Material Adverse Effect (as defined below); as used in this Agreement, "Material Adverse Effect" shall mean any material adverse change or effect, or any development involving a prospective material adverse change or effect, in or affecting (i) the business, properties, general affairs, management, financial position, shareholders' equity or results of operations of the Company, OpCo and their respective subsidiaries, taken as a whole, except as set forth or contemplated in the Pricing Prospectus, or (ii) the ability of the Company and OpCo to perform their respective obligations under this Agreement, including the issuance and sale of the Shares, or to consummate the transactions contemplated in the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) OpCo and its subsidiaries have good and marketable fee simple title or other valid rights to use or occupy all real property and good and marketable title or other valid rights to use all personal property described in the Prospectus and the Pricing Prospectus, in each case, used in the conduct of its business as described in the Prospectus and the Pricing Prospectus, free and clear of all liens, encumbrances and defects except (x) as expressly described in the Pricing Prospectus and the Prospectus, (y) liens and encumbrances under operating agreements and/or commercial agreements (including, for the avoidance of doubt, all easements, rights-of-way, surface use agreements and other rights in real property burdening the real property of the Company, OpCo and their respective subsidiaries, in each case that are of a scope and nature customary to the Company's and OpCo's business, and do not materially diminish the value of such property taken as a whole and do not materially interfere with the use made and proposed to be made of such property by the Company and its subsidiaries) or (z) as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (clauses (x), (y) and (z), collectively, "Permitted Encumbrances"); and any other real property and buildings held under lease by OpCo and its subsidiaries are held by them under valid, subsisting and enforceable leases (subject to the effects of (i) bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the rights or remedies of creditors generally; (ii) the application of general principles of equity (including without limitation, concepts of materiality, reasonableness, good faith and fair dealing, regardless of whether enforcement is considered in proceedings at law or in equity); and (iii) applicable law and public policy with respect to rights to indemnification and contribution) free and clear of all liens, encumbrances and defects other than Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each of the Company, OpCo and their subsidiaries (it being understood that all such subsidiaries of the Company and OpCo are named in Exhibit 21.1 to the Initial Registration Statement) has been (i) duly organized and is validly existing and in good standing under the laws of its jurisdiction of organization, with power and authority (limited liability company, corporate and other) to own its properties and conduct its business as described in the Pricing Prospectus, and (ii) duly qualified as a foreign limited liability company, corporation or otherwise for the transaction of business and is in good

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standing under the laws of each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, except, in the case of this clause (ii), where the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. After giving effect to the Reorganization Transactions, the Company will not own or control, directly or indirectly, any corporation, association or other entity than the subsidiaries listed on Schedule IV to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and OpCo have an authorized capitalization as set forth in the Pricing Prospectus and the Prospectus under the heading "Capitalization" and all of the issued shares of the Company and outstanding membership interests in OpCo will, immediately following the Reorganization Transactions, have been duly and validly authorized and issued and will be fully paid and non-assessable and will conform in all material respects to the description of the Shares and OpCo Units, respectively, contained in the Pricing Disclosure Package and the Prospectus; and all of the issued shares of each subsidiary of the Company and OpCo have been duly and validly authorized and issued, are fully paid and non-assessable (except as such non-assessability may be limited by Sections 101.206 and 101.613 of the Texas Business Organizations Code), and immediately following the Reorganization Transactions, will be owned directly or indirectly by the Company or OpCo, free and clear of all liens, encumbrances, equities or claims, in each case, except for liens pursuant to (i) the Financing Agreement, dated as of April 4, 2024, by and among Desert Ram Holdings, LLC, a Texas limited liability company, as borrower, L&E and Desert Ram South, Incorporated, a Delaware corporation, as guarantors, the lenders party thereto, and TCW, as administrative agent and as collateral agent, as amended by that certain First Amendment to Financing Agreement, dated as of December 11, 2024, that certain Second Amendment to Financing Agreement, dated as of February 28, 2025, that certain Third Amendment to Financing Agreement, dated as of April 14, 2025, and as may be further amended, restated, amended and restated, supplemented or otherwise modified from time to time and (ii) the Credit Agreement, dated as of , 2026, by and between OpCo, as borrower, the guarantors from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and letter of credit issuer, and the lenders from time to time party thereto, as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Shares have been duly and validly authorized and, when issued and delivered against payment therefor as provided herein, will be duly and validly issued and fully paid and non-assessable and will conform to the description of the Shares contained in the Pricing Disclosure Package and the Prospectus; and the issuance of the Shares is not subject to any preemptive or similar rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The issue and sale of the Shares and the compliance by the Company with this Agreement and the consummation of the transactions contemplated in this Agreement and the Pricing Prospectus, including the Reorganization Transactions, will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, (A) any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company, OpCo or any of their respective subsidiaries is a party or by which the Company, OpCo or any of their respective subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject, except, in the case of this clause (A) for such defaults,

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breaches, or violations that would not, individually or in the aggregate, have a Material Adverse Effect, (B) the certificate of formation or the operating agreement (or other applicable organizational document) of the Company, OpCo or any of their respective subsidiaries, or (C) any statute or any judgment, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company, OpCo or any of their respective subsidiaries or any of their properties; and no consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body is required for the issue and sale of the Shares or the consummation by the Company and OpCo of the transactions contemplated by this Agreement or the offering of the Directed Shares in any jurisdiction where the Directed Shares are being offered, except such as have been obtained under the Act**,** the approval by the Financial Industry Regulatory Authority ("FINRA") of the underwriting terms and arrangements and such consents, approvals, authorizations, orders, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the purchase and distribution of the Shares by the Underwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Neither the Company, OpCo nor any of their respective subsidiaries is (i) in violation of its certificate of formation or operating agreement (or other applicable organizational document), (ii) in violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company, OpCo or any of their respective subsidiaries or any of their properties, or (iii) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which it is a party or by which it or any of its properties may be bound, except, in the case of the foregoing clauses (ii) and (iii), for such defaults as would not, individually or in the aggregate, have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The statements set forth in the Pricing Prospectus and the Prospectus under the caption "Description of Shares", insofar as they purport to constitute a summary of the terms of the Shares, under the caption "Material U.S. Federal Income Tax Considerations for Non-U.S. Holders", insofar as they purport to describe the provisions of the United States federal laws and documents referred to therein, are accurate, complete and fair in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Other than as set forth in the Pricing Prospectus, there are no legal, governmental or regulatory investigations, actions, demands, claims, suits, arbitrations, inquiries or proceedings ("Actions") pending to which the Company, OpCo or any of their respective subsidiaries or, to the Company's or OpCo's knowledge, any officer or director of the Company or OpCo, is a party or of which any property or assets of the Company, OpCo or any of their respective subsidiaries or, to the Company's or OpCo's knowledge, any officer or director of the Company or OpCo, is the subject which, if determined adversely to the Company, OpCo or any of their respective subsidiaries (or such officer or director), would individually or in the aggregate have a Material Adverse Effect; and, to the Company's or OpCo's knowledge, no such proceedings are threatened or contemplated by governmental authorities or others; there are no current or pending Actions that are required under the Act to be described in the Registration Statement or the Pricing Prospectus that are not so described therein; and there are no statutes, regulations or contracts or other documents that are required under the Act to be filed as exhibits to the Registration Statement or described in the Registration Statement or the Pricing Prospectus that are not so filed as exhibits to the Registration Statement or described in the Registration Statement and the Pricing Prospectus;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) No relationship, direct or indirect, exists between or among the Company, OpCo or any of their respective subsidiaries, on the one hand, and the directors, officers, shareholders or other affiliates of the Company, OpCo or any of their respective subsidiaries, on the other, that would be required by the Act to be described in a registration statement on Form S-1 to be filed with the Commission and that is not so described in the Registration Statement, the Pricing Prospectus or the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Company is not and, after giving effect to the offering and sale of the Shares and the application of the proceeds thereof, will not be an "investment company", as such term is defined in the Investment Company Act of 1940, as amended (the "Investment Company Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Company, OpCo and their respective subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required to be paid or filed through the date hereof; and except as would not reasonably be expected to have a Material Adverse Effect, there is no tax deficiency that has been, or would reasonably be expected to be, asserted against the Company, OpCo or any of their respective subsidiaries or any of their respective properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) At the time of filing the Initial Registration Statement and any post-effective amendment thereto, at the earliest time thereafter that the Company or any offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Act) of the Shares, and at the date hereof, the Company was not and is not an "ineligible issuer," as defined under Rule 405 under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Deloitte & Touche LLP, who has certified certain financial statements of (i) the Company and (ii) L&E included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, is an independent public accounting firm with respect to the Company and L&E as required by the Act and the rules and regulations of the Commission thereunder. EEPB Company, who has audited certain financial statements of Accelerated Water Resources, LLC ("AWR") included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, has represented to the Company that it is an independent public accounting firm with respect to AWR as required by the Act and the rules and regulations of the Commission thereunder. Grant Thornton LLP, who has audited certain financial statements of DE IV Flow, LLC ("DE Flow"), included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, has represented to the Company that it is an independent public accounting firm with respect to DE Flow as required by the Act and the rules and regulations of the Commission thereunder. Weaver and Tidwell LLP, who has audited certain financial statements of Shallow Valley Ranch, included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, has represented to the Company that it is an independent public accounting firm with respect to Shallow Valley Ranch as required by the Act and the rules and regulations of the Commission thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Company maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) that (i) complies with the applicable requirements of the Exchange Act, (ii) has been designed by the Company's principal executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and (iii) is sufficient to provide reasonable assurance that (A) transactions are executed in accordance with management's general or specific authorization, (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets, (C) access to assets is permitted only in accordance with management's general or specific authorization and (D) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and except as disclosed in the Pricing Prospectus and the Prospectus, the Company's internal control over financial reporting is effective and the Company is not aware of any material weaknesses in its internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The properties of the Company and its subsidiaries are insured in respect of general casualty and general liability insurance in amounts necessary as if customary for companies engaged in similar businesses and owning similar properties in locations where the Company and its subsidiaries operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Shares have been approved for listing, subject to official notice of issuance, on the New York Stock Exchange and NYSE Texas, Inc. (together, the "Exchange");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The Company and OpCo have not sold or issued any securities that would be integrated with the offering of the Shares contemplated by this Agreement pursuant to the Act, the rules and regulations thereunder or the interpretations thereof by the Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Except as disclosed in the Pricing Prospectus, since the date of the latest audited financial statements included in the Pricing Prospectus, there has been no change in the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange Act; such disclosure controls and procedures have been designed to ensure that material information relating to the Company and its subsidiaries is made known to the Company's principal executive officer and principal financial officer by others within those entities; and such disclosure controls and procedures are effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) The Company and OpCo have the full right, power and authority to execute and deliver this Agreement, to perform their obligations hereunder and to consummate the actions contemplated hereby and in the Pricing Prospectus; and all action required to be taken for the due and proper authorization, execution and delivery by the Company and OpCo of this Agreement and the consummation by the Company and OpCo of the transactions contemplated in this Agreement and the Pricing Prospectus has been or will be duly and validly taken on or prior to each Time of Delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) This Agreement has been duly authorized, executed and delivered by the Company and OpCo;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Neither the Company, OpCo nor any of their respective subsidiaries, nor any director, officer or employee of the Company, OpCo or any of their respective subsidiaries nor, to the knowledge of the Company or OpCo, any agent, affiliate or other person associated with or acting on behalf of the Company, OpCo or any of their respective subsidiaries has (i) made, offered, promised or authorized any unlawful contribution, gift, entertainment or other unlawful expense (or taken any act in furtherance thereof); (ii) made, offered, promised or authorized any direct or indirect unlawful payment; or (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or the rules and regulations thereunder, the Bribery Act 2010 of the United Kingdom or any other applicable anti-corruption, anti-bribery or related law, statute or regulation (collectively, "Anti-Corruption Laws"); the Company, OpCo and their respective subsidiaries have conducted their businesses in compliance with Anti-Corruption Laws and have instituted and maintained and will continue to maintain policies and procedures reasonably designed to promote and achieve compliance with such laws and with the representations and warranties contained herein; neither the Company, OpCo nor any of their respective subsidiaries will use, directly or indirectly, the proceeds of the offering in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any person in violation of Anti-Corruption Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) The operations of the Company, OpCo and their respective subsidiaries are and have been conducted at all times in compliance with the requirements of applicable anti-money laundering laws, including, but not limited to, the Bank Secrecy Act of 1970, as amended by the USA PATRIOT ACT of 2001, and the rules and regulations promulgated thereunder, and the anti-money laundering laws of the various jurisdictions in which the Company, OpCo and their respective subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines issued, administered or enforced by any governmental agency (collectively, the "Money Laundering Laws") and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company, OpCo or any of their respective subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or OpCo, threatened;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Neither the Company, OpCo nor any of their respective subsidiaries, nor any director, officer or employee of the Company, OpCo or any of their respective subsidiaries nor, to the knowledge of the Company or OpCo, any agent, affiliate or other person associated with or acting on behalf of the Company, OpCo or any of their respective subsidiaries is (i) currently the subject or the target of any sanctions administered or enforced by the U.S. Government, including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC"), or the U.S. Department of State and including, without limitation, the designation as a "specially designated national" or "blocked person," the European Union, His Majesty's Treasury, the United Nations Security Council, or other relevant sanctions authority (collectively, "Sanctions"), (ii) located, organized, or resident in a country or territory that is the subject or target of Sanctions (at the time of this Agreement, Cuba, Iran, North Korea, the Crimea Region of Ukraine, the non-government controlled areas of the Zaporizhzhia and Kherson Regions of Ukraine and any other covered region of Ukraine identified pursuant to Executive Order 14065, the so-called Donetsk People's Republic, and the so-called Luhansk People's Republic, collectively and individually each a "Sanctioned

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Jurisdiction"), and the Company and OpCo will not directly or indirectly use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person, or in any country or territory, that, at the time of such funding, is the subject or the target of Sanctions or (ii) in any other manner that will result in a violation by any person (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions; neither the Company, OpCo nor any of their respective subsidiaries is engaged in, or has, at any time since April 24, 2019, engaged in, any dealings or transactions with or involving any individual or entity that was or is, as applicable, at the time of such dealing or transaction, the subject or target of Sanctions or with any Sanctioned Jurisdiction; the Company, OpCo and their respective subsidiaries have instituted, and maintain, policies and procedures designed to promote and achieve continued compliance with Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) The financial statements included in the Registration Statement, the Pricing Prospectus and the Prospectus, together with the related schedules and notes, present fairly the financial position of the Company, OpCo and their respective subsidiaries at the dates indicated and the statement of operations, shareholders' equity and cash flows of the Company, OpCo and their respective subsidiaries for the periods specified; said financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") applied on a consistent basis throughout the periods involved. The supporting schedules, if any, present fairly in accordance with GAAP the information required to be stated therein. The selected financial data and the summary financial information included in the Registration Statement, the Pricing Prospectus and the Prospectus present fairly the information shown therein and have been compiled on a basis consistent with that of the audited financial statements included therein. Except as included therein, no historical or pro forma financial statements or supporting schedules are required to be included in the Registration Statement, the Pricing Prospectus or the Prospectus under the Act or the rules and regulations promulgated thereunder. All disclosures contained in the Registration Statement, the Pricing Prospectus and the Prospectus regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Act, to the extent applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) The pro forma financial statements included in the Registration Statement, the Pricing Prospectus and the Prospectus include assumptions that provide a reasonable basis for presenting the effects attributable to the transactions and events described therein, the related pro forma adjustments give appropriate effect to those assumptions, and the pro forma adjustments reflect an appropriate application of those adjustments to the historical financial statement amounts in the pro forma financial statements included in the Registration Statement, the Pricing Prospectus and the Prospectus. The pro forma financial statements included in the Registration Statement, the Pricing Prospectus and the Prospectus comply as to form in all material respects with the applicable requirements of Article 11 of Regulation S-X under the Securities Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) (i)(A) neither the Company, OpCo nor any of their respective subsidiaries is in violation of, and, to the Company's knowledge, after due inquiry, does not have any liability under, any federal, state, local or non-U.S. statute, law, rule, regulation, ordinance, code, other requirement or rule of law (including common law), or decision or order of any domestic or foreign governmental agency, governmental body or court, relating to pollution, to the use, handling, transportation, treatment, storage, discharge, disposal or Release of Hazardous Substances (as defined below), to the protection or restoration of the environment or natural resources, to health and safety including as such relates to exposure to Hazardous Substances, and to natural resource damages (collectively, "Environmental Laws"), (B) neither the Company, OpCo nor any of their respective subsidiaries is liable or allegedly liable for any Release or threatened Release of Hazardous Substances, including at any off site storage, treatment or disposal site, (C) neither the Company, OpCo nor any of their respective subsidiaries is subject to any pending, or to the Company's knowledge, after due inquiry, threatened, claim by any governmental agency or governmental body or person arising under Environmental Laws or relating to the Release of or exposure to Hazardous Substances and (D) the Company, OpCo and their respective subsidiaries have received, are in compliance with all permits, licenses, authorizations, identification numbers, consents, waivers, exemptions, or other approvals required under applicable Environmental Laws to conduct their business, except in each case covered by clauses (A) through (D) such as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and (ii) to the Company's or OpCo's knowledge, there are no facts or circumstances that would reasonably be expected to result in a violation of, liability under, or claim pursuant to any Environmental Law that would reasonably be expected to have a Material Adverse Effect. (x) There is no proceeding that is pending, or that is known to be contemplated, against the Company, OpCo or any of their respective subsidiaries under any Environmental Laws in which a governmental entity is also a party, other than such proceeding regarding which it is reasonably believed no monetary sanctions of $300,000 or more will be imposed, and (y) none of the Company, OpCo or their respective subsidiaries anticipates material capital expenditures relating to any Environmental Laws. For purposes of this subsection "Hazardous Substances" means (A) petroleum and petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, per- and polyfluoroalkyl substances, and polychlorinated biphenyls, and (B) any other chemical, material or substance defined or regulated as toxic or hazardous or as a pollutant, contaminant or waste under Environmental Laws and "Release" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, migrating, leaching, dumping or disposing into the environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) The Company, OpCo and each of their respective subsidiaries (i) own or otherwise possess adequate rights to use all material patents, patent applications, trademarks, service marks, trade names, domain names, copyrights and registrations and applications thereof, licenses, know-how, software, systems and technology (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures and other intellectual property) necessary for the conduct of their respective businesses, (ii) do not, through the conduct of their respective businesses, infringe, violate or conflict with any such right of others and (iii) have not received any written notice of any claim of infringement, violation or conflict with, any such rights of others;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company, OpCo and their respective subsidiaries' information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, "IT Systems") are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company, OpCo and their respective subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants; the Company, OpCo and their respective subsidiaries have implemented and maintained reasonable controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data ("Personal Data")) used in connection with their businesses, and there have been no breaches, violations, outages or unauthorized uses of or accesses to same, except for those that have been remedied without material cost or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same; the Company, OpCo and their respective subsidiaries are presently in compliance in all material respects with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) No forward-looking statement (within the meaning of Section 27A of the Act and Section 21E of the Exchange Act) included in any of the Registration Statement, the Pricing Prospectus or the Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) Nothing has come to the attention of the Company or OpCo that has caused the Company or OpCo to believe that the statistical and market-related data included in each of the Registration Statement, the Pricing Prospectus and the Prospectus is not based on or derived from sources that are reliable and accurate in all material respects and, to the extent required by such sources, the Company and OpCo have obtained the written consent to use such data from such sources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) There is and has been no failure on the part of the Company or any of the Company's directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002, as amended and the rules and regulations promulgated in connection therewith (the "Sarbanes-Oxley Act"), including Section 402 related to loans and Sections 302 and 906 related to certifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) Neither the Company, OpCo nor any of their respective affiliates has taken or will take, directly or indirectly, any action designed to or that could reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company or any of its subsidiaries in connection with the offering of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) The Company, OpCo and each of their respective subsidiaries have such permits, licenses, approvals, consents, franchises, certificates of need and other approvals or authorizations of governmental or regulatory authorities ("Permits") as are necessary under applicable law to own their respective properties and conduct their respective businesses in the manner described in the Registration Statement, the Pricing Prospectus and the Prospectus, except for any of the foregoing that would not, individually or in the aggregate, have a Material Adverse Effect. Neither the Company, OpCo nor any of their respective subsidiaries has received notice of any proceedings related to the revocation or modification of any such Permits that, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) The Company, OpCo and their respective subsidiaries, taken as a whole, are insured against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged and as required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) The Registration Statement, the Pricing Disclosure Package and the Prospectus, any Preliminary Prospectus, any Issuer Free Writing Prospectuses and any Written Testing-the-Waters Communication comply in all material respects, and any further amendments or supplements thereto will comply in all material respects, with any applicable laws or regulations of foreign jurisdictions in which the Pricing Disclosure Package, the Prospectus, any Preliminary Prospectus, any Issuer Free Writing Prospectus and any Written Testing-the-Waters Communication, as amended or supplemented, if applicable, are distributed in connection with the Directed Share Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) No authorization, approval, consent, license, order, registration or qualification of or with any government, governmental instrumentality or court, other than such as have been obtained, is necessary under the securities laws and regulations of foreign jurisdictions in which the Directed Shares are offered outside the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) The Company has specifically directed in writing the allocation of Shares to each Participant in the Directed Share Program, and neither the Directed Share Underwriter nor any other Underwriter has had any involvement or influence, directly or indirectly, in such allocation decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) The Company has not offered, or caused the Directed Share Underwriter or its affiliates to offer, Shares to any person pursuant to the Directed Share Program (i) for any consideration other than the cash payment of the initial public offering price per share set forth in Schedule II hereof or (ii) with the specific intent to unlawfully influence (x) a customer or supplier of the Company to alter the customer or supplier's terms, level or type of business with the Company or (y) a trade journalist or publication to write or publish favorable information about the Company or its products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) From the time of initial confidential submission of a registration statement relating to the Shares with the Commission through the date hereof, the Company has been and is an "emerging growth company" as defined in Section 2(a)(19) of the Act (an "Emerging Growth Company");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) (A) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), for which the Company or any member of its "Controlled Group" (defined as any entity, whether or not incorporated, that is under common control with the Company or OpCo within the meaning of Section 4001(a)(14) of ERISA or any entity that would be regarded as a single employer with the Company or OpCo under Section 414(b),(c),(m) or (o) of the Internal Revenue Code of 1986, as amended (the "Code")) has any material liability (each, a "Plan") has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Code; (B) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan, excluding transactions effected pursuant to a statutory or administrative exemption; (C) for each

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Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no Plan has failed (whether or not waived), or is reasonably expected to fail, to satisfy the minimum funding standards (within the meaning of Section 302 of ERISA or Section 412 of the Code) applicable to such Plan; (D) no Plan is, or is reasonably expected to be, in "at risk status" (within the meaning of Section 303(i) of ERISA), and no Plan that is a "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA is in "endangered status" or "critical status" (within the meaning of Sections 304 and 305 of ERISA); (E) the fair market value of the assets of each Plan exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used to fund such Plan); (F) no "reportable event" (within the meaning of Section 4043(c) of ERISA and the regulations promulgated thereunder) has occurred or is reasonably expected to occur, excluding any reportable event for which a waiver could apply; (G) each Plan that is intended to be qualified under Section 401(a) of the Code is so qualified, and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification; (H) neither the Company, OpCo nor any member of the Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guaranty Corporation, in the ordinary course and without default) in respect of a Plan (including a "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA); and (I) none of the following events has occurred or is reasonably likely to occur: (A) a material increase in the aggregate amount of contributions required to be made to all Plans by the Company, OpCo or its Controlled Group affiliates in the current fiscal year of the Company, OpCo and their respective Controlled Group affiliates compared to the amount of such contributions made in the Company's, OpCo's and their respective Controlled Group affiliates' most recently completed fiscal year; or (B) a material increase in the Company, OpCo and their respective subsidiaries' "accumulated post-retirement benefit obligations" (within the meaning of Accounting Standards Codification Topic 715-60) compared to the amount of such obligations in the Company, OpCo and their respective subsidiaries' most recently completed fiscal year, except in each case with respect to the events or conditions set forth in clauses (A) through (I) hereof, as would not, individually or in the aggregate, have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) No labor disturbance by or dispute with employees of the Company, OpCo or any of their respective subsidiaries exists or, to the Company's knowledge, is contemplated or threatened. Neither the Company, OpCo nor any of their respective subsidiaries is a party to any collective bargaining agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) Except as otherwise set forth or contemplated in the Prospectus, no subsidiary of the Company or OpCo is currently prohibited, directly or indirectly, under any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company or OpCo, from making any other distribution on such subsidiary's equity or similar ownership interest, from repaying to the Company or OpCo any loans or advances to such subsidiary from the Company or OpCo or from transferring any of such subsidiary's properties or assets to the Company or OpCo or any other subsidiary of the Company or OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) Neither the Company, OpCo nor any of their respective subsidiaries is a party to any contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against any of them or any Underwriter for a brokerage commission, finder's fee or like payment in connection with the offering and sale of the Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) Except as otherwise set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus, no person has the right to require the Company or any of its respective subsidiaries to register any securities for sale under the Securities Act by reason of the filing of the Registration Statement with the Commission or the issuance and sale of the Class A shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) Neither the Company nor any of its subsidiaries is a "covered foreign person", as that term is defined in 31 C.F.R. § 850.209. Neither the Company nor any of its subsidiaries currently engages, or has plans to engage, directly or indirectly, in a "covered activity", as that term is defined in 31 C.F.R. § 850.208 ("Covered Activity"). The Company does not have any joint ventures that engages in or plans to engage in any Covered Activity. The Company also does not, directly or indirectly, hold a board seat on, have a voting or equity interest in, or have any contractual power to direct or cause the direction of the management or policies of any person or persons that engages or plans to engage in any Covered Activity.

Any certificate signed by any officer of the Company or OpCo and delivered to the Representatives or counsel for the Underwriters in connection with the Offering shall be deemed a representation and warranty by the Company or OpCo, as to matters covered thereby, to each Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Subject to the terms and conditions herein set forth, (a) the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at a purchase price per share of $, the number of Firm Shares set forth opposite the name of such Underwriter in Schedule I hereto and (b) in the event and to the extent that the Underwriters shall exercise the election to purchase Optional Shares as provided below, the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at the purchase price per share set forth in clause (a) of this Section 2 (provided that the purchase price per Optional Share shall be reduced by an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Optional Shares), that portion of the number of Optional Shares as to which such election shall have been exercised (to be adjusted by you so as to eliminate fractional shares) determined by multiplying such number of Optional Shares by a fraction, the numerator of which is the maximum number of Optional Shares which such Underwriter is entitled to purchase as set forth opposite the name of such Underwriter in Schedule I hereto and the denominator of which is the maximum number of Optional Shares that all of the Underwriters are entitled to purchase hereunder.

The Company hereby grants to the Underwriters the right to purchase at their election up to Optional Shares, at the purchase price per share set forth in the paragraph above, provided that the purchase price per Optional Share shall be reduced by an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Optional Shares. Any such election to purchase Optional Shares may be exercised only by written notice from you to the Company, given within a period of 30 calendar days after the date of this Agreement, setting forth the aggregate number of Optional Shares to be purchased and the date on which such Optional Shares are to be delivered, as determined by you but in no event earlier than the First Time of Delivery (as defined in Section 4 hereof) or, unless you and the Company otherwise agree in writing, earlier than one or later than ten business days after the date of such notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upon the authorization by you of the release of the Shares, the several Underwriters propose to offer the Shares for sale upon the terms and conditions set forth in the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (a) The Shares to be purchased by each Underwriter hereunder, in definitive or book-entry form, and in such authorized denominations and registered in such names as the Representatives may request upon at least twenty-four hours' prior notice to the Company shall be delivered by or on behalf of the Company to the Representatives, through the facilities of the Depository Trust Company ("DTC"), for the account of such Underwriter, against payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified by the Company to the Representatives at least twenty-four hours in advance. The Company will cause the certificates, if any, representing the Shares to be made available for checking and packaging at least twenty-four hours prior to the Time of Delivery (as defined below) with respect thereto at the office of DTC or its designated custodian (the "Designated Office"). The time and date of such delivery and payment shall be, with respect to the Firm Shares, 9:30 a.m., New York City time, on , 2026 or such other time and date as the Representatives and the Company may agree upon in writing, and, with respect to the Optional Shares, 9:30 a.m., New York City time, on the date specified by the Representatives in the written notice given by the Representatives of the Underwriters' election to purchase such Optional Shares, or such other time and date as the Representatives and the Company may agree upon in writing. Such time and date for delivery of the Firm Shares is herein called the "First Time of Delivery", such time and date for delivery of the Optional Shares, if not the First Time of Delivery, is herein called the "Second Time of Delivery", and each such time and date for delivery is herein called a "Time of Delivery".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The documents to be delivered at each Time of Delivery by or on behalf of the parties hereto pursuant to Section 8 hereof, including the cross receipt for the Shares and any additional documents requested by the Underwriters pursuant to Section 8(i) hereof, will be delivered electronically at the offices of Latham & Watkins LLP, 811 Main Street, Suite 3700, Houston, Texas 77002 (the "Closing Location"), and the Shares will be delivered through the facilities of DTC in the case of book-entry shares or at the Designated Office, all at such Time of Delivery. A meeting will be held at the Closing Location at 5:00 p.m., New York City time, on the New York Business Day next preceding such Time of Delivery, at which meeting the final drafts of the documents to be delivered pursuant to the preceding sentence will be available for review by the parties hereto. For the purposes of this Section 4, "New York Business Day" shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York City are generally authorized or obligated by law or executive order to close.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Company and OpCo agree with each of the Underwriters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To prepare the Prospectus in a form approved by you and to file such Prospectus pursuant to Rule 424(b) under the Act prior to the earlier of (i) the First Time of Delivery and (ii) the Commission's close of business on the second business day following the execution and delivery of this Agreement, or, if applicable, such earlier time as may be required by Rule 430A(a)(3) under the Act; to make no further amendment or any supplement to the Registration Statement or the Prospectus prior to the last Time of Delivery which shall be disapproved by you promptly after reasonable notice thereof; to advise you, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any amendment or supplement to the Prospectus has been filed and to furnish you with copies thereof; to file promptly all material required to be filed by the Company with the Commission pursuant to Rule 433(d) under the Act; to advise you, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or other prospectus in respect of the Shares, of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the Registration Statement or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or other prospectus or suspending any such qualification, to promptly use its best efforts to obtain the withdrawal of such order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Promptly from time to time to take such action as you may reasonably request to qualify the Shares for offering and sale under the securities laws of such jurisdictions as you may request and to comply with such laws so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Shares, provided that in connection therewith the Company shall not be required to qualify as a foreign corporation (where not otherwise required) or to file a general consent to service of process in any jurisdiction (where not otherwise required);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prior to 10:00 a.m., New York City time, on the New York Business Day next succeeding the date of this Agreement and from time to time, to furnish the Underwriters with written and electronic copies of the Prospectus in New York City in such quantities as you may reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is required at any time prior to the expiration of nine months after the time of issue of the Prospectus in connection with the offering or sale of the Shares and if at such time any event shall have occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is delivered, not misleading, or, if for any other reason it shall be necessary during such same period to amend or supplement the Prospectus in order to comply with the Act, to notify you and upon your request to prepare and furnish without charge to each Underwriter and to any dealer in securities as many written and electronic copies as you may from time to time reasonably request of an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect such compliance; and in case any Underwriter is required to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) in connection with sales of any of the Shares at any time nine months or more after the time of issue of the Prospectus, upon your request but at the expense of such Underwriter, to prepare and deliver to such Underwriter as many written and electronic copies as you may request of an amended or supplemented Prospectus complying with Section 10(a)(3) of the Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To make generally available to its securityholders as soon as practicable, but in any event not later than sixteen months after the effective date of the Registration Statement (as defined in Rule 158(c) under the Act), an earnings statement of the Company and its subsidiaries (which need not be audited) complying with Section 11(a) of the Act and the rules and regulations of the Commission thereunder (including, at the option of the Company, Rule 158) (which may be satisfied by filing with the Commission's Electronic Data Gathering Analysis and Retrieval System ("EDGAR"));

(e)(1) During the period beginning from the date hereof and continuing to and including the date 180 days after the date of the Prospectus, not to (i) offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, or file with or confidentially submit to the Commission a registration statement under the Act relating to, any securities of the Company or any units of OpCo that are substantially similar to the Shares, including but not limited to any options or warrants to purchase Shares or any securities that are convertible into or exchangeable for, or that represent the right to receive, Shares or any such substantially similar securities, or publicly disclose the intention to make any offer, sale, pledge, disposition or filing or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Shares or any such other securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Shares or such other securities, in cash or otherwise (other than the Shares to be sold hereunder or pursuant to employee equity incentive or similar plan existing on, or upon the conversion or exchange of convertible or exchangeable securities outstanding as of, the date of this Agreement), without the prior written consent of the Representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Representatives, in their sole discretion, agree to release or waive the restrictions set forth in a lock-up letter described in Section 8(i) hereof for an officer or director of the Company and provides the Company with notice of the impending release or waiver at least three business days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release substantially in the form of Annex II hereto through a major news service at least two business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To furnish to its shareholders as soon as practicable after the end of each fiscal year an annual report (including a balance sheet and statements of income, shareholders' equity and cash flows of the Company and its consolidated subsidiaries certified by independent public accountants) and, as soon as practicable after the end of each of the first three quarters of each fiscal year (beginning with the fiscal quarter ending after the effective date of the Registration Statement), to make available to its shareholders consolidated summary financial information of the Company and its subsidiaries for such quarter in reasonable detail (which may be satisfied by filing with EDGAR and/or making any such report, communication or information generally available on its website);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) During a period of five years from the effective date of the Registration Statement, to furnish to you copies of all reports or other communications (financial or other) furnished to shareholders, and to deliver to you (i) as soon as they are available, copies of any reports and financial statements furnished to or filed with the Commission or any national securities exchange on which any class of securities of the Company is listed; and (ii) such additional information concerning the business and financial condition of the Company as you may from time to time reasonably request (such financial statements to be on a consolidated basis to the extent the accounts of the Company and its subsidiaries are consolidated in reports furnished to its shareholders generally or to the Commission); provided, however, that the obligations described in Section 5(g) may be satisfied by any filing of such reports or communications with EDGAR and/or making any such report, communication or information generally available on its website;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To use the net proceeds received by it from the sale of the Shares pursuant to this Agreement in the manner specified in the Pricing Prospectus under the caption "Use of Proceeds";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To use its best efforts to list, subject to notice of issuance, the Shares on the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) To file with the Commission such information on Form 10-Q or Form 10-K as may be required by Rule 463 under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If the Company elects to rely upon Rule 462(b), the Company shall file a Rule 462(b) Registration Statement with the Commission in compliance with Rule 462(b) by 10:00 P.M., Washington, D.C. time, on the date of this Agreement, and the Company shall at the time of filing either pay to the Commission the filing fee for the Rule 462(b) Registration Statement or give irrevocable instructions for the payment of such fee pursuant to Rule 3a(c) of the Commission's Informal and Other Procedures (16 CFR 202.3a); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Upon request of any Underwriter, to furnish, or cause to be furnished, to such Underwriter an electronic version of the Company's and OpCo's trademarks, servicemarks and corporate logo for use on the website, if any, operated by such Underwriter for the purpose of facilitating the on-line offering of the Shares (the "License"); provided, however, that the License shall be used solely for the purpose described above, is granted without any fee and may not be assigned or transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) To promptly notify you if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion of the distribution of the Shares within the meaning of the Act and (ii) the last Time of Delivery; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) To comply with all applicable securities and other laws, rules and regulations in each jurisdiction in which the Directed Shares are offered in connection with the Directed Share Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. (a) The Company represents and agrees that, without the prior consent of the Representatives, it has not made and will not make any offer relating to the Shares that would constitute a "free writing prospectus" as defined in Rule 405 under the Act; each Underwriter represents and agrees that, without the prior consent of the Company and the Representatives, it has not made and will not make any offer relating to the Shares that would constitute a free writing prospectus required to be filed with the Commission; any such free writing prospectus the use of which has been consented to by the Company and the Representatives is listed on Schedule II(a) hereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has complied and will comply with the requirements of Rule 433 under the Act applicable to any Issuer Free Writing Prospectus, including timely filing with the Commission or retention where required and legending; and the Company represents that it has satisfied and agrees that it will satisfy the conditions under Rule 433 under the Act to avoid a requirement to file with the Commission any electronic road show;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees that if at any time following issuance of an Issuer Free Writing Prospectus or Written Testing-the-Waters Communication any event occurred or occurs as a result of which such Issuer Free Writing Prospectus or Written Testing-the-Waters Communication would conflict with the information in the Registration Statement, the Pricing Prospectus or the Prospectus or would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances then prevailing, not misleading, the Company will give prompt notice thereof to the Representatives and, if requested by the Representatives, will prepare and furnish without charge to each Underwriter an Issuer Free Writing Prospectus, Written Testing-the-Waters Communication or other document which will correct such conflict, statement or omission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company represents and agrees that (i) it has not engaged in, or authorized any other person to engage in, any Testing-the-Waters Communications, other than Testing-the-Waters Communications with the prior consent of the Representatives with entities that the Company reasonably believes are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are accredited investors as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Act; and (ii) it has not distributed, or authorized any other person to distribute, any Written Testing-the-Waters Communication, other than those distributed with the prior consent of the Representatives that are listed on Schedule II(d) hereto; and the Company reconfirms that the Underwriters have been authorized to act on its behalf in engaging in Testing-the-Waters Communications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Underwriter represents and agrees that any Testing-the-Waters Communications undertaken by it were with entities that such Underwriter reasonably believes are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are accredited investors as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Company and OpCo covenant and agree with the several Underwriters that the Company and OpCo will pay or cause to be paid the following: (i) the fees, disbursements and expenses of the Company's and OpCo's counsel and accountants in connection with the registration of the Shares under the Act and all other expenses in connection with the preparation, printing, reproduction and filing of the Registration Statement, any Preliminary Prospectus, any Written Testing-the-Waters Communication, any Issuer Free Writing Prospectus and the Prospectus and amendments and supplements thereto and the mailing and delivering of copies thereof to the Underwriters and dealers; (ii) the cost of printing or producing any Agreement among Underwriters, this Agreement, the Blue Sky Memorandum, closing documents (including any compilations thereof) and any other documents in connection with the offering, purchase, sale and delivery of the Shares; (iii) all expenses in connection with the qualification of the Shares for offering and sale under state securities laws as provided in Section 5(b) hereof,

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including the reasonable and documented fees and disbursements of counsel for the Underwriters in connection with such qualification and in connection with the Blue Sky survey; (iv) all fees and expenses in connection with listing the Shares on the Exchange; (v) the filing fees incident to, and the fees and disbursements of counsel for the Underwriters in connection with, any required review by FINRA of the terms of the sale of the Shares; (vi) the cost of preparing share certificates, if applicable; (vii) the cost and charges of any transfer agent or registrar; and (viii) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section. In addition, the Company shall pay or cause to be paid all fees and disbursements of counsel for the Underwriters in connection with the Directed Share Program and stamp duties, similar taxes or duties or other taxes, if any, incurred by the Underwriters in connection with the Directed Share Program. It is understood, however, that, except as provided in this Section, and Sections 9 and 12 hereof, the Underwriters will pay all of their own costs and expenses, including the fees of their counsel, share transfer taxes on resale of any of the Shares by them, and any advertising expenses connected with any offers they may make.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The obligations of the Underwriters hereunder, as to the Shares to be delivered at each Time of Delivery, shall be subject, in their discretion, to the condition that all representations and warranties and other statements of the Company and OpCo herein are, at and as of the Applicable Time and such Time of Delivery, true and correct, the condition that the Company and OpCo shall have performed all of its obligations hereunder theretofore to be performed, and the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Prospectus shall have been filed with the Commission pursuant to Rule 424(b) under the Act within the applicable time period prescribed for such filing by the rules and regulations under the Act and in accordance with Section 5(a) hereof; all material required to be filed by the Company pursuant to Rule 433(d) under the Act shall have been filed with the Commission within the applicable time period prescribed for such filing by Rule 433; if the Company has elected to rely upon Rule 462(b) under the Act, the Rule 462(b) Registration Statement shall have become effective by 10:00 P.M., Washington, D.C. time, on the date of this Agreement; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose or pursuant to Section 8A of the Act shall have been initiated or threatened by the Commission; no stop order suspending or preventing the use of the Pricing Prospectus, Prospectus or any Issuer Free Writing Prospectus shall have been initiated or threatened by the Commission; and all requests for additional information on the part of the Commission shall have been complied with to your reasonable satisfaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Latham & Watkins LLP, counsel for the Underwriters, shall have furnished to you such written opinion or opinions (a form of each such opinion is attached as Annex I(a) hereto), dated such Time of Delivery, in form and substance satisfactory to you, and such counsel shall have received such papers and information as they may reasonably request to enable them to pass upon such matters;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Vinson & Elkins L.L.P., counsel for the Company, shall have furnished to you their written opinion (a form of such opinion is attached as Annex I(b) hereto), dated such Time of Delivery, in form and substance satisfactory to you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the date of the Prospectus at a time prior to the execution of this Agreement, at 9:30 a.m., New York City time, on the effective date of any post-effective amendment to the Registration Statement filed subsequent to the date of this Agreement and also at such Time of Delivery, each of Deloitte & Touche LLP, EEPB Company, Grant Thornton LLP, Weaver and Tidwell, L.L.P., shall have furnished to you a letter or letters, dated the respective dates of delivery thereof, in form and substance satisfactory to you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) Neither the Company, OpCo nor any of their respective subsidiaries shall have sustained since the date of the latest audited financial statements included in the Pricing Prospectus any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth or contemplated in the Pricing Prospectus, and (ii) since the respective dates as of which information is given in the Pricing Prospectus there shall not have been any change in the shares or long-term debt of the Company, OpCo or any of their respective subsidiaries or any change or effect, or any development involving a prospective change or effect, in or affecting (x) the business, properties, general affairs, management, financial position, shareholders' equity or results of operations of the Company and its subsidiaries, taken as a whole, except as set forth or contemplated in the Pricing Prospectus, or (y) the ability of the Company and OpCo to perform their obligations under this Agreement, including the issuance and sale of the Shares, or to consummate the transactions contemplated in the Pricing Prospectus and the Prospectus, the effect of which, in any such case described in clause (i) or (ii), is in your judgment so material and adverse as to make it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares being delivered at such Time of Delivery on the terms and in the manner contemplated in the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) On or after the Applicable Time (i) no downgrading shall have occurred in the rating accorded the Company's debt securities or preferred shares by any "nationally recognized statistical rating organization", as defined in Section 3(a)(62) of the Exchange Act, and (ii) no such organization shall have publicly announced that it has under surveillance or review, with possible negative implications, its rating of any of the Company's debt securities or preferred shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) On or after the Applicable Time there shall not have occurred any of the following: (i) a suspension or material limitation in trading in securities generally on the Exchange; (ii) a suspension or material limitation in trading in the Company's securities on the Exchange; (iii) a general moratorium on commercial banking activities declared by either Federal or New York or, Texas State authorities or a material disruption in commercial banking or securities settlement or clearance services in the United States; (iv) the outbreak or escalation of hostilities involving the United States or the declaration by the United States of a national emergency or war or (v) the occurrence of any other calamity or crisis or any change in

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financial, political or economic conditions in the United States or elsewhere, if the effect of any such event specified in clause (iv) or (v) in your judgment makes it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares being delivered at such Time of Delivery on the terms and in the manner contemplated in the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Shares to be sold at such Time of Delivery shall have been duly listed**,** subject to official notice of issuance, on the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and OpCo shall have obtained and delivered to the Underwriters executed copies of an agreement from each officer, director, and shareholder of the Company and OpCo listed on Schedule III hereto, substantially to the effect set forth in Annex III hereto in form and substance satisfactory to you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company shall have complied with the provisions of Section 5(c) hereof with respect to the furnishing of prospectuses on the New York Business Day next succeeding the date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company and OpCo shall have furnished or caused to be furnished to you at such Time of Delivery certificates of officers of the Company and OpCo satisfactory to you as to the accuracy of the representations and warranties of the Company and OpCo herein at and as of such Time of Delivery, as to the performance by the Company and OpCo of all of their obligations hereunder to be performed at or prior to such Time of Delivery, as to the matters set forth in subsections (a) and (e) of this Section and as to such other matters as you may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. (a) The Company and OpCo will indemnify and hold harmless each Underwriter against any losses, claims, damages or liabilities, joint or several, to which such Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus, any "roadshow" as defined in Rule 433(h) under the Act (a "roadshow"), any "issuer information" filed or required to be filed pursuant to Rule 433(d) under the Act or any Testing-the-Waters Communication, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such action or claim as such expenses are incurred; *provided*, *however*, that the Company and OpCo shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus or any Testing-the-Waters Communication, in reliance upon and in conformity with the Underwriter Information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Underwriter, severally and not jointly, will indemnify and hold harmless the Company and OpCo against any losses, claims, damages or liabilities to which the Company and OpCo may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, or any roadshow or any Testing-the-Waters Communication, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, or any roadshow or any Testing-the-Waters Communication, in reliance upon and in conformity with the Underwriter Information; and will reimburse the Company and OpCo for any documented legal or other expenses reasonably incurred by the Company or OpCo in connection with investigating or defending any such action or claim as such expenses are incurred. As used in this Agreement with respect to an Underwriter and an applicable document, "Underwriter Information" shall mean the written information furnished to the Company and OpCo by such Underwriter through the Representatives expressly for use therein; it being understood and agreed upon that the only such information furnished by any Underwriter consists of the following information in the Prospectus furnished on behalf of each Underwriter: the concession and reallowance figures appearing in the paragraph under the caption "Underwriting", and the information contained in the paragraph under the caption "Underwriting".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under subsection (a) or (b) of this Section 9 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; provided that the failure to notify the indemnifying party shall not relieve it from any liability that it may have under the preceding paragraphs of this Section 9 except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under the preceding paragraphs of this Section 9. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which

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indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the indemnification provided for in this Section 9 is unavailable to or insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and OpCo on the one hand and the Underwriters on the other from the offering of the Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and OpCo on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and OpCo on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company and OpCo bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or OpCo on the one hand or the Underwriters on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company, OpCo and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by *pro rata* allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations of the Company and OpCo under this Section 9 shall be in addition to any liability which the Company and OpCo may otherwise have and shall extend, upon the same terms and conditions, to each employee, officer and director of each Underwriter and each person, if any, who controls any Underwriter within the meaning of the Act and each broker-dealer or other affiliate of any Underwriter; and the obligations of the Underwriters under this Section 9 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company or OpCo (including any person who, with his or her consent, is named in the Registration Statement as about to become a director of the Company or OpCo) and to each person, if any, who controls the Company or OpCo within the meaning of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and OpCo will indemnify and hold harmless the Directed Share Underwriter against any losses, claims, damages and liabilities to which the Directed Share Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims damages or liabilities (or actions in respect thereof) (x) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the consent of the Company and OpCo for distribution to Participants in connection with the Directed Share Program or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (y) arise out of or are based upon the failure of any Participant to pay for and accept delivery of Directed Shares that the Participant agreed to purchase, or (z) are related to, arise out of or are in connection with the Directed Share Program, and will reimburse the Directed Share Underwriter for any legal or other expenses reasonably incurred by the Directed Share Underwriter in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that with respect to clauses (y) and (z) above, the Company and OpCo shall not be liable in any such case to the extent that any such loss, claim, damage or liability is finally judicially determined to have resulted from the bad faith or gross negligence of the Directed Share Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly after receipt by the Directed Share Underwriter of notice of the commencement of any action, the Directed Share Underwriter shall, if a claim in respect thereof is to be made against the Company and OpCo, notify the Company and OpCo in writing of the commencement thereof; provided that the failure to notify the Company and OpCo shall not relieve the Company and OpCo from any liability that it may have under the preceding paragraph of this Section 9(f) except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the Company and OpCo shall not relieve it from any liability that it may have to the Directed Share Underwriter otherwise than under the preceding paragraph of this Section 9(f). In case any such action shall be brought against the Directed Share Underwriter and it shall notify the Company

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and OpCo of the commencement thereof, the Company and OpCo shall be entitled to participate therein and, to the extent that it shall wish, to assume the defense thereof, with counsel satisfactory to the Directed Share Underwriter (who shall not, except with the consent of the Directed Share Underwriter, be counsel to the Company or OpCo), and, after notice from the Company and OpCo to the Directed Share Underwriter of its election so to assume the defense thereof, the Company and OpCo shall not be liable to the Directed Share Underwriter under this subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by the Directed Share Underwriter, in connection with the defense thereof other than reasonable costs of investigation. The Company and OpCo shall not, without the written consent of the Directed Share Underwriter, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the Directed Share Underwriter is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (x) includes an unconditional release of the Directed Share Underwriter from all liability arising out of such action or claim and (y) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of the Directed Share Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the indemnification provided for in this Section 9(f) is unavailable to or insufficient to hold harmless the Directed Share Underwriter under Section 9(f)(i) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then the Company and OpCo shall contribute to the amount paid or payable by the Directed Share Underwriter as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and OpCo on the one hand and the Directed Share Underwriter on the other from the offering of the Directed Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then the Company and OpCo shall contribute to such amount paid or payable by the Directed Share Underwriter in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and OpCo on the one hand and the Directed Share Underwriter on the other in connection with any statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and OpCo on the one hand and the Directed Share Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Directed Shares (before deducting expenses) received by the Company and OpCo bear to the total underwriting discounts and commissions received by the Directed Share Underwriter for the Directed Shares. If the loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement of a material fact or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, the relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement

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of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and OpCo on the one hand or the Directed Share Underwriter on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and OpCo and the Directed Share Underwriter agree that it would not be just and equitable if contribution pursuant to this Section 9(f)(iii) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 9(f)(iii). The amount paid or payable by the Directed Share Underwriter as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 9(f)(iii) shall be deemed to include any legal or other expenses reasonably incurred by the Directed Share Underwriter in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 9(f)(iii), the Directed Share Underwriter shall not be required to contribute any amount in excess of the amount by which the total price at which the Directed Shares sold by it and distributed to the Participants exceeds the amount of any damages which the Directed Share Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The obligations of the Company and OpCo under this Section 9(f) shall be in addition to any liability which the Company and OpCo may otherwise have and shall extend, upon the same terms and conditions, to each employee, officer and director of the Directed Share Underwriter and each person, if any, who controls the Directed Share Underwriter within the meaning of the Act and each broker-dealer or other affiliate of the Directed Share Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. (a) If any Underwriter shall default in its obligation to purchase the Shares which it has agreed to purchase hereunder at a Time of Delivery, you may in your discretion arrange for you or another party or other parties to purchase such Shares on the terms contained herein. If within thirty-six hours after such default by any Underwriter you do not arrange for the purchase of such Shares, then the Company shall be entitled to a further period of thirty-six hours within which to procure another party or other parties satisfactory to you to purchase such Shares on such terms. In the event that, within the respective prescribed periods, you notify the Company that you have so arranged for the purchase of such Shares, or the Company notifies you that it has so arranged for the purchase of such Shares, you or the Company shall have the right to postpone such Time of Delivery for a period of not more than seven days, in order to effect whatever changes may thereby be made necessary in the Registration Statement or the Prospectus, or in any other documents or arrangements, and the Company agrees to file promptly any amendments or supplements to the Registration Statement or the Prospectus which in your opinion may thereby be made necessary. The term "Underwriter" as used in this Agreement shall include any person substituted under this Section with like effect as if such person had originally been a party to this Agreement with respect to such Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a) above, the aggregate number of such Shares to be purchased at such Time of Delivery which remains unpurchased does not exceed one-eleventh of the aggregate number of all the Shares, then the Company shall have the right to require each non-defaulting Underwriter to purchase the number of Shares which such Underwriter agreed to purchase hereunder at such Time of Delivery and, in addition, to require each non-defaulting Underwriter to purchase its pro rata share (based on the number of Shares which such Underwriter agreed to purchase hereunder) of the Shares of such defaulting Underwriter or Underwriters for which such arrangements have not been made; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a) above, the aggregate number of such Shares which remains unpurchased exceeds one-eleventh of the aggregate number of all the Shares to be purchased at such Time of Delivery, or if the Company shall not exercise the right described in subsection (b) above to require non-defaulting Underwriters to purchase Shares of a defaulting Underwriter or Underwriters, then this Agreement (or, with respect to the Second Time of Delivery, the obligations of the Underwriters to purchase and of the Company to sell the Optional Shares) shall thereupon terminate, without liability on the part of any non-defaulting Underwriter, the Company or OpCo, except for the expenses to be borne by the Company, OpCo and the Underwriters as provided in Section 7 hereof and the indemnity and contribution agreements in Section 9 hereof; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The respective indemnities, rights of contribution, agreements, representations, warranties and other statements of the Company, OpCo, and the several Underwriters, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of any Underwriter or any director, officer, employee, affiliate or controlling person of any Underwriter, the Company or OpCo, or any officer or director or controlling person of the Company or OpCo, and shall survive delivery of and payment for the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If this Agreement shall be terminated pursuant to Section 10 hereof, neither the Company nor OpCo shall then be under any liability to any Underwriter except as provided in Sections 7 and 9 hereof; but, if for any other reason, any Shares are not delivered by or on behalf of the Company as provided herein or the Underwriters decline to purchase the Shares for any reason permitted under this Agreement, the Company and OpCo will reimburse the Underwriters through you for all documented out-of-pocket expenses approved in writing by you, including fees and disbursements of counsel, reasonably incurred by the Underwriters in making preparations for the purchase, sale and delivery of the Shares not so delivered, but the Company and OpCo shall then be under no further liability to any Underwriter except as provided in Sections 7 and 9 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. In all dealings hereunder, the Representatives shall act on behalf of each of the Underwriters, and the parties hereto shall be entitled to act and rely upon any statement, request, notice or agreement on behalf of any Underwriter made or given by you jointly or by Goldman Sachs & Co. LLC, Barclays Capital Inc. and J.P. Morgan Securities LLC on behalf of you as the Representatives.

All statements, requests, notices and agreements hereunder shall be in writing, and if to the Underwriters shall be delivered or sent by mail, telex or facsimile transmission to you as the representatives in care of Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282-2198, Attention: Registration Department; Barclays Capital Inc., 745 Seventh Avenue, New York, New York 10019, Attention: Syndicate Registration; or J.P. Morgan Securities LLC, 270 Park Avenue, New York, New York 10017 (fax: (212) 622-8358); Attention Equity Syndicate Desk; and if to the Company and OpCo shall be delivered or sent by mail, telex or facsimile transmission to the address of the Company set forth in the Registration Statement, Attention: Chief Executive Officer; provided, however, that any notice to an Underwriter pursuant to Section 9(d) hereof shall be delivered or sent by mail, telex or facsimile transmission to such Underwriter at its address set forth in its Underwriters' Questionnaire, or telex constituting such Questionnaire, which address will be supplied to the Company or OpCo by you upon request. Any such statements, requests, notices or agreements shall take effect upon receipt thereof.

In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the underwriters are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the underwriters to properly identify their respective clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. This Agreement shall be binding upon, and inure solely to the benefit of, the Underwriters, the Company and OpCo, to the extent provided in Sections 9 and 11 hereof, the officers and directors of the Company and OpCo and each person who controls the Company and OpCo or any Underwriter, or any director, officer, employee, or affiliate of any Underwriter, and their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. No purchaser of any of the Shares from any Underwriter shall be deemed a successor or assign by reason merely of such purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Time shall be of the essence of this Agreement. As used herein, the term "business day" shall mean any day when the Commission's office in Washington, D.C. is open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. The Company and OpCo acknowledge and agree that (i) the purchase and sale of the Shares pursuant to this Agreement is an arm's-length commercial transaction between the Company and OpCo, on the one hand, and the several Underwriters, on the other, (ii) in connection therewith and with the process leading to such transaction each Underwriter is acting solely as a principal and not the agent or fiduciary of the Company or OpCo, (iii) no Underwriter has assumed an advisory or fiduciary responsibility in favor of the Company or OpCo with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company on other matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement, (iv) the Company and OpCo have

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each consulted their own legal and financial advisors to the extent they deemed appropriate, and (v) none of the activities of the Underwriters in connection with the transactions contemplated herein constitutes a recommendation, investment advice, or solicitation of any action by the Underwriters with respect to any entity or natural person. The Company and OpCo agree that they will not claim that the Underwriters, or any of them, has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Company or OpCo, in connection with such transaction or the process leading thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company, OpCo and the Underwriters, or any of them, with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. This Agreement and any transaction contemplated by this Agreement and any claim, controversy or dispute arising under or related thereto shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflict of laws that would result in the application of any other law than the laws of the State of New York. The Company and OpCo agree that any suit or proceeding arising in respect of this Agreement or any transaction contemplated by this Agreement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in The City and County of New York and the Company agrees to submit to the jurisdiction of, and to venue in, such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. The Company and OpCo and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Notwithstanding anything herein to the contrary, the Company and OpCo are authorized to disclose to any persons the U.S. federal and state income tax treatment and tax structure of the potential transaction and all materials of any kind (including tax opinions and other tax analyses) provided to the Company and OpCo relating to that treatment and structure, without the Underwriters imposing any limitation of any kind. However, any information relating to the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall not apply) to the extent necessary to enable any person to comply with securities laws. For this purpose, "tax structure" is limited to any facts that may be relevant to that treatment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Recognition of the U.S. Special Resolution Regimes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As used in this section:

"BHC Act Affiliate" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

"Covered Entity" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"U.S. Special Resolution Regime" means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

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If the foregoing is in accordance with your understanding, please sign and return to us one for the Company and OpCo and each of the Representatives plus one for each counsel counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Underwriters, this letter and such acceptance hereof shall constitute a binding agreement between each of the Underwriters and the Company. It is understood that your acceptance of this letter on behalf of each of the Underwriters is pursuant to the authority set forth in a form of Agreement among Underwriters, the form of which shall be submitted to the Company and OpCo for examination upon request, but without warranty on your part as to the authority of the signers thereof.

*[Signature pages to follow]* 

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **EagleRock Land, LLC** | **EagleRock Land, LLC** |
| By: |  |
|  | Name: |
|  | Title: |
| **EagleRock Land Operating, LLC** | **EagleRock Land Operating, LLC** |
| By: |  |
|  | Name: |
|  | Title: |

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[*Signature Page to Underwriting Agreement*]

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| | |
|:---|:---|
| Accepted as of the date hereof: | Accepted as of the date hereof: |
| **Goldman Sachs & Co. LLC** | **Goldman Sachs & Co. LLC** |
| By: |  |
|  | Name: |
|  | Title: |
| **Barclays Capital Inc.** | **Barclays Capital Inc.** |
| By: |  |
|  | Name: |
|  | Title: |
| **J.P. Morgan Securities LLC** | **J.P. Morgan Securities LLC** |
| By: |  |
|  | Name: |
|  | Title: |

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On behalf of each of the Underwriters

[*Signature Page to Underwriting Agreement*]

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**SCHEDULE I** 

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**SCHEDULE II** 

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**SCHEDULE III** 

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**ANNEX I(a)** 

**FORM OF OPINION FOR COUNSEL FOR THE UNDERWRITERS** 

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**ANNEX I(b)** 

**FORM OF OPINION OF COUNSEL FOR THE COMPANY** 

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**ANNEX II** 

**Form of Press Release** 

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**ANNEX III** 

**FORM OF LOCK-UP AGREEMENT**

## Exhibit 3.1

**Exhibit 3.1**![LOGO](g37594dsp030.jpg)

Secretary of State Filed in the Office of the P.O. Box 13697 Secretary of State of Texas Austin, TX 78711-3697 Filing#: 806326778 12/01/2025 FAX: 512/463-5709 Document#: 1538520710002 Certificate of Formation Image Generated Electronically Filing Fee: $300 for Web Filing Limited Liability Company Article 1—Entity Name and Type The filing entity being formed is a limited liability company. The name of the entity is: EagleRock Land, LLC Article 2—Registered Agent and Registered Office P A. The initial registered agent is an organization (cannot be company named above) by the name of: C T Corporation System OR rB. The initial registered agent is an individual resident of the state whose name is set forth below: C. The business address of the registered agent and the registered office address is: Street Address: 1999 Bryan St. Suite 900 Dallas TX 75201-3136 Consent of Registered Agent r A. A copy of the consent of registered agent is attached. OR P'B. The consent of the registered agent is maintained by the entity. Article 3—Governing Authority r A. The limited liability company is to be managed by managers. OR P'B. The limited liability company will not have managers. Management of the company is reserved to the members. The names and addresses of the governing persons are set forth below: Managing Member 1: (Business Name) Lea & Eddy Holdings, LLC Address: 600 N Marienfeld St., Suite 800 Midland TX, USA 79701 Article 4—Purpose The purpose for which the company is organized is for the transaction of any and all lawful business for which limited liability companies may be organized under the Texas Business Organizations Code. Supplemental Provisions I Information

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![LOGO](g37594dsp031.jpg)

[The attached addendum, if any, is incorporated herein by reference.] Initial Mailing Address Address to be used by the Comptroller of Public Accounts for purposes of sending tax information. The initial mailing address of the filing entity is: 600 N Marienfeld St., Suite 800 Midland, TX 79701 USA Organizer The name and address of the organizer are set forth below. Ethan C. Twining 845 Texas Avenue, Suite 4700, Houston, TX 77002 Effectiveness of Filing WA. This document becomes effective when the document is filed by the secretary of state. OR rs. This document becomes effective at a later date, which is not more than ninety (90) days from the date of its signing. The delayed effective date is: Execution The undersigned affirms that the person designated as registered agent has consented to the appointment. The undersigned signs this document subject to the penalties imposed by law for the submission of a materially false or fraudulent instrument and certifies under penalty of perjury that the undersigned is authorized under the provisions of law governing the entity to execute the filing instrument. Ethan C. Twining Signature of Organizer FILING OFFICE COPY

## Exhibit 3.2

**Exhibit 3.2** 

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| | | |
|:---|:---|:---|
| **Form 424** | ![LOGO](g37594g95f00.jpg) | This space reserved for office use. |
| **(Revised 05/11)**<br>| ![LOGO](g37594g95f00.jpg) |  |
| Submit in duplicate to: | ![LOGO](g37594g95f00.jpg) |  |
| Secretary of State | ![LOGO](g37594g95f00.jpg) |  |
| P.O. Box 13697 | ![LOGO](g37594g95f00.jpg) |  |
| Austin, TX 78711-3697 | **Certificate of Amendment** |  |
| 512 463-5555 |  |  |
| FAX: 512/463-5709 |  |  |
| **Filing Fee: <u>See instructions</u>** |  |  |

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**Entity Information** 

The name of the filing entity is:

EagleRock Land, LLC

State the name of the entity as currently shown in the records of the secretary of state. If the amendment changes the name of the entity, state the old name and not the new name.

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| | |
|:---|:---|
| The filing entity is a: (Select the appropriate entity type below.) | The filing entity is a: (Select the appropriate entity type below.) |
| ☐ For-profit Corporation | ☐ Professional Corporation |
| ☐ Nonprofit Corporation | ☐ Professional Limited Liability Company |
| ☐ Cooperative Association | ☐ Professional Association |
| ☒ Limited Liability Company | ☐ Limited Partnership |

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The file number issued to the filing entity by the secretary of state is: 0806326778

The date of formation of the entity is: December 1, 2025

**Amendments** 

**1. Amended Name** 

(If the purpose of the certificate of amendment is to change the name of the entity, use the following statement)

The amendment changes the certificate of formation to change the article or provision that names the filing entity. The article or provision is amended to read as follows:

The name of the filing entity is: (state the new name of the entity below)

The name of the entity must contain an organizational designation or accepted abbreviation of such term, as applicable.

**2. Amended Registered Agent/Registered Office** 

The amendment changes the certificate of formation to change the article or provision stating the name of the registered agent and the registered office address of the filing entity. The article or provision is amended to read as follows:

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| | |
|:---|:---|
| Form 424 | 6.0 |

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Registered Agent

(Complete either A or B, but not both. Also complete C.)

☐ A. The registered agent is an organization (cannot be entity named above) by the name of:

**OR** 

☐ B. The registered agent is an individual resident of the state whose name is:

*First Name M.I. Last Name Suffix* 

The person executing this instrument affirms that the person designated as the new registered agent has consented to serve as registered agent.

C. The business address of the registered agent and the registered office address is:

TX

*Street Address (No P.O. Box) City State Zip Code* 

**3. Other Added, Altered, or Deleted Provisions** 

Other changes or additions to the certificate of formation may be made in the space provided below. If the space provided is insufficient, incorporate the additional text by providing an attachment to this form. Please read the instructions to this form for further information on format.

Text Area (The attached addendum, if any, is incorporated herein by reference.)

☐ **Add** each of the following provisions to the certificate of formation. The identification or reference of the added provision and the full text are as follows:

☒ **Alter** each of the following provisions of the certificate of formation. The identification or reference of the altered provision and the full text of the provision as amended are as follows:

Article 3 is hereby removed and replaced in its entirety with the following: "Article 3. The limited liability company will have managers. The name of the initial manager is Gregory Pipkin Jr., located at 9655 Katy Freeway, Suite 375, Houston, Texas 77024."

☐ **Delete** each of the provisions identified below from the certificate of formation.

**Statement of Approval** 

The amendments to the certificate of formation have been approved in the manner required by the Texas Business Organizations Code and by the governing documents of the entity.

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| | |
|:---|:---|
| Form 424 | 7.0 |

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------

**Effectiveness of Filing** (Select either A, B, or C.)

A. ☒ This document becomes effective when the document is filed by the secretary of state.

B. ☐ This document becomes effective at a later date, which is not more than ninety (90) days from the date of signing. The delayed effective date is:<u> </u>

C. ☐ This document takes effect upon the occurrence of a future event or fact, other than the passage of time. The 90<sup>th</sup> day after the date of signing is:

The following event or fact will cause the document to take effect in the manner described below:

**Execution** 

The undersigned signs this document subject to the penalties imposed by law for the submission of a materially false or fraudulent instrument and certifies under penalty of perjury that the undersigned is authorized under the provisions of law governing the entity to execute the filing instrument.

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| | | |
|:---|:---|:---|
| Date: April 16, 2026 |  |  |
|  | By**:** | EagleRock Land, LLC |
|  |  | /s/ Elo Peter Omavuezi |
|  |  | Signature of authorized person |
|  |  | Elo Peter Omavuezi, Secretary and Treasurer of the Sole Member |
|  |  | Printed or typed name of authorized person (see instructions) |

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| | |
|:---|:---|
| Form 424 | 8.0 |

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## Exhibit 3.3

**Exhibit 3.3** 

**FIRST AMENDED AND RESTATED** 

**COMPANY AGREEMENT** 

**OF** 

**EAGLEROCK LAND, LLC** 

**a Texas Limited Liability Company** 

This FIRST AMENDED AND RESTATED COMPANY AGREEMENT (this "***Agreement***") of EAGLEROCK LAND, LLC (the "***Company***"), dated as of April 16, 2026, is adopted, executed and agreed to by the Sole Member (as defined below).

**RECITALS** 

WHEREAS, the Company was formed under the TBOC pursuant to a certificate of formation filed with the Secretary of State of the State of Texas on December 1, 2025, and a Limited Liability Company Agreement of EagleRock Land, LLC, dated as of December 1, 2025 (the "***Original LLC Agreement***"); and

WHEREAS, the Sole Member has authorized and approved an amendment and restatement of the Original LLC Agreement on the terms set forth herein.

NOW THEREFORE, the Original LLC Agreement is hereby amended and restated to read in its entirety as follows:

**AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Formation.*** The Company has been formed as a Texas limited liability company under and pursuant to the Texas Business Organizations Code (the "***Code***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Term.*** The Company shall have perpetual existence unless dissolved in accordance with <u>Section</u> <u>11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Registered Office; Registered Agent.*** The registered office and registered agent of the Company in the State of Texas shall be as specified in the Certificate of Formation of the Company filed with the Secretary of State of the State of Texas or as determined by the Sole Member from time to time in the manner provided by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Purposes.*** The purpose for which the Company is formed is for the transaction of any and all lawful purposes for which a limited liability company may be organized under the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Member.*** Lea & Eddy Holdings, LLC, a Texas limited liability company (the "***Sole Member***"), shall be the sole member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Federal Income Tax Status.*** The Company is intended to be classified as a corporation for U.S. federal income tax purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Contributions.*** Without creating any rights in favor of any third party, the Sole Member may, from time to time, make contributions of cash or property to the capital of the Company, but shall have no obligation to do so. As its initial contribution to the capital of the Company, the Sole Member is deemed to have contributed $1,000 in cash to the Company. The Sole Member may, but shall not be required to, make additional capital contributions to the Company. The Sole Member shall not have any duty to the Company except as expressly set forth herein, in other written agreements or as otherwise required by the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Distributions.*** The Sole Member shall be entitled to (a) receive all distributions (including, without limitation, liquidating distributions) made by the Company, and (b) enjoy all other rights, benefits and interests in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Management.*** The management of the Company shall be vested in a board of managers (the "***Board***"), who shall constitute "managers" of the Company within the meaning of the Code. The business and affairs of the Company shall be managed by the Board. The Board shall consist of one or more individuals (the "***Managers***") appointed by the Sole Member, such number of Managers to be determined from time to time by the Sole Member. Vacancies on the Board for whatever cause shall be filled by the Sole Member. The Managers shall hold office until their respective successors are chosen and qualify or until their earlier death, resignation or removal by the Sole Member, in the Sole Member's discretion. The Board may act (a) by majority vote of Managers present at a meeting at which a quorum (consisting of a majority of Managers) is present or (b) by unanimous written consent. The initial number of Managers shall be one (1), and the following person is hereby appointed to serve as a Manager of the Company until his successor is chosen and qualified or until his earlier death, resignation or removal: Gregory Pipkin Jr.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Officers.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Sole Member may designate one or more persons to be officers of the Company. Officers are not "managers" as such term is used in the Code. Any officers who are so designated shall have such titles and authority and perform such duties as the Sole Member may delegate to them. The salaries or other compensation, if any, of the officers of the Company shall be fixed by the Sole Member. Any officer may be removed as such, either with or without cause, by the Sole Member. Designation of an officer shall not of itself create contract rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Titles</u>. To the extent appointed by the Sole Member, the officers of the Company may be a Chief Executive Officer, a President, a Secretary, one or more Vice Presidents (any one or more of whom may be designated Executive Vice President or Senior Vice President), a Treasurer and such other officers as the Sole Member may from time to time elect or appoint. Any number of offices may be held by the same person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authority</u>. In the absence of a specific delegation of authority to an officer by the Sole Member, such officer shall have such authority as is normally possessed and exercised by an officer of a corporation organized under the Code and having the same title as such officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Dissolution.*** The Company shall dissolve and its affairs shall be wound up at such time, if any, as the Sole Member may elect. No other event shall cause the Company to dissolve.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Governing Law.*** THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Amendments.*** This Agreement may be modified, altered, supplemented or amended at any time by a written agreement executed and delivered by the Sole Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Fiscal Year.*** The fiscal year of the Company shall be the calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***Liability.*** None of the Managers, the Sole Member, or any of its officers or members, or any officers of the Company, shall have any liability for the obligations, debts or liabilities of the Company, except to the extent provided in the Code.

[*Signature page follows*.]

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**IN WITNESS WHEREOF**, the undersigned, being the Sole Member of the Company, has caused this First Amended and Restated Company Agreement to be duly executed effective as of the date first set forth above.

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| | |
|:---|:---|
| **SOLE MEMBER:** | **SOLE MEMBER:** |
| **LEA & EDDY HOLDINGS, LLC** | **LEA & EDDY HOLDINGS, LLC** |
| By: | /s/ Elo Peter Omavuezi |
| Name: | Elo Peter Omavuezi |
| Title: | Secretary and Treasurer |

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SIGNATURE PAGE TO

FIRST AMENDED AND RESTATED

COMPANY AGREEMENT OF

EAGLEROCK LAND, LLC

## Exhibit 3.4

**Exhibit 3.4** 

**FORM OF SECOND AMENDED AND RESTATED** 

**COMPANY AGREEMENT** 

**OF** 

**EAGLEROCK LAND, LLC** 

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE I | ARTICLE I |  |
| DEFINITIONS | DEFINITIONS |  |
|  Section 1.1 | Definitions | 1 |
|  Section 1.2 | Construction | 7 |
| ARTICLE II | ARTICLE II |  |
| ORGANIZATION | ORGANIZATION |  |
|  Section 2.1 | Formation | 7 |
|  Section 2.2 | Certificate of Formation | 7 |
|  Section 2.3 | Name | 8 |
|  Section 2.4 | Registered Office; Registered Agent | 8 |
|  Section 2.5 | Principal Office; Principal Place of Business | 8 |
|  Section 2.6 | Purposes | 8 |
|  Section 2.7 | Powers | 8 |
|  Section 2.8 | Term | 8 |
|  Section 2.9 | Company Assets | 9 |
| ARTICLE III | ARTICLE III |  |
| MEMBERS AND SHARES | MEMBERS AND SHARES |  |
|  Section 3.1 | Members | 9 |
|  Section 3.2 | Shares | 10 |
|  Section 3.3 | Certificates and Transfer | 11 |
|  Section 3.4 | Record Holders | 13 |
|  Section 3.5 | Splits and Combinations | 13 |
|  Section 3.6 | Class B Shares | 14 |
|  Section 3.7 | Rights of Members | 14 |
|  Section 3.8 | Shareholder's Agreements | 15 |
| ARTICLE IV | ARTICLE IV |  |
| DIVIDENDS | DIVIDENDS |  |
|  Section 4.1 | Dividends | 15 |
|  Section 4.2 | Distributions on Liquidation | 15 |
|  Section 4.3 | Record Holders | 15 |
| ARTICLE V | ARTICLE V |  |
| MANAGEMENT AND OPERATION OF BUSINESS | MANAGEMENT AND OPERATION OF BUSINESS |  |
|  Section 5.1 | Power and Authority of Board of Directors | 16 |
|  Section 5.2 | Number, Qualification and Term of Office of Directors | 16 |

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i

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| | | |
|:---|:---|:---|
|  Section 5.3 | Classes of Directors | 16 |
|  Section 5.4 | Removal | 17 |
|  Section 5.5 | Resignations | 18 |
|  Section 5.6 | Vacancies | 18 |
|  Section 5.7 | Nomination of Directors | 18 |
|  Section 5.8 | Chairman of Meetings | 18 |
|  Section 5.9 | Place of Meetings | 19 |
|  Section 5.10 | Regular Meetings | 19 |
|  Section 5.11 | Special Meetings | 19 |
|  Section 5.12 | Action Without Meeting | 19 |
|  Section 5.13 | Notice | 19 |
|  Section 5.14 | Meetings by Remote Communication | 19 |
|  Section 5.15 | Quorum | 20 |
|  Section 5.16 | Waiver of Notice | 20 |
|  Section 5.17 | Regulations | 20 |
|  Section 5.18 | Minutes | 20 |
|  Section 5.19 | Remuneration | 20 |
|  Section 5.20 | Reliance by Third Parties | 21 |
|  Section 5.21 | Consent Rights | 21 |
| ARTICLE VI | ARTICLE VI |  |
| EXCULPATION, INDEMNIFICATION, ADVANCES AND INSURANCE | EXCULPATION, INDEMNIFICATION, ADVANCES AND INSURANCE |  |
|  Section 6.1 | Exculpation | 22 |
|  Section 6.2 | Indemnification | 22 |
|  Section 6.3 | Duties of Officers and Directors | 25 |
|  Section 6.4 | Resolution of Conflicts of Interest; Standards of Conduct and Modification of Duties | 25 |
|  Section 6.5 | Outside Activities | 26 |
| ARTICLE VII | ARTICLE VII |  |
| COMMITTEES | COMMITTEES |  |
|  Section 7.1 | Designation, Powers | 27 |
|  Section 7.2 | Procedure; Meetings; Quorum | 27 |
|  Section 7.3 | Alternate Members of Committees | 28 |
| ARTICLE VIII | ARTICLE VIII |  |
| OFFICERS | OFFICERS |  |
|  Section 8.1 | Officers | 28 |

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ii

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| | | |
|:---|:---|:---|
|  Section 8.2 | Chief Executive Officer | 29 |
|  Section 8.3 | President | 29 |
|  Section 8.4 | Executive Vice Presidents and Vice Presidents | 29 |
|  Section 8.5 | Secretary | 29 |
|  Section 8.6 | Treasurer | 29 |
|  Section 8.7 | Vacancies | 29 |
|  Section 8.8 | Action with Respect to Securities of Other Companies | 30 |
|  Section 8.9 | Delegation | 30 |
|  Section 8.10 | Reliance by Third Parties | 30 |
| ARTICLE IX | ARTICLE IX |  |
| BOOKS, RECORDS, ACCOUNTING AND REPORTS | BOOKS, RECORDS, ACCOUNTING AND REPORTS |  |
|  Section 9.1 | Records and Accounting | 30 |
|  Section 9.2 | Fiscal Year | 30 |
|  Section 9.3 | Reports | 31 |
| ARTICLE X | ARTICLE X |  |
| TAX MATTERS | TAX MATTERS |  |
|  Section 10.1 | Tax Elections | 31 |
|  Section 10.2 | Withholding | 31 |
| ARTICLE XI | ARTICLE XI |  |
| DISSOLUTION AND LIQUIDATION | DISSOLUTION AND LIQUIDATION |  |
|  Section 11.1 | Dissolution | 32 |
|  Section 11.2 | Liquidator | 32 |
|  Section 11.3 | Liquidation | 32 |
|  Section 11.4 | Cancellation of Certificate of Formation | 33 |
|  Section 11.5 | Return of Contributions | 33 |
|  Section 11.6 | Waiver of Partition | 33 |
| ARTICLE XII | ARTICLE XII |  |
| AMENDMENT OF AGREEMENT | AMENDMENT OF AGREEMENT |  |
|  Section 12.1 | General | 33 |
|  Section 12.2 | Shareholder Amendments | 34 |
|  Section 12.3 | Amendments to be Adopted Solely by the Board of Directors | 34 |
|  Section 12.4 | Amendment Requirements | 35 |
| ARTICLE XIII | ARTICLE XIII |  |
| MERGER, CONSOLIDATION OR CONVERSION | MERGER, CONSOLIDATION OR CONVERSION |  |
|  Section 13.1 | Authority | 36 |
|  Section 13.2 | Procedure for Merger, Consolidation or Conversion | 36 |

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iii

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| | | |
|:---|:---|:---|
|  Section 13.3 | Approval by Members of Merger, Consolidation or Conversion or Sales of Substantially All of the Company's Assets | 37 |
|  Section 13.4 | Certificate of Merger | 38 |
|  Section 13.5 | Effect of Merger | 38 |
|  Section 13.6 | Certain Merger Rights | 38 |
| ARTICLE XIV | ARTICLE XIV |  |
| MEMBER MEETINGS | MEMBER MEETINGS |  |
|  Section 14.1 | Member Meetings | 39 |
|  Section 14.2 | Notice of Meetings of Members | 40 |
|  Section 14.3 | Record Date | 40 |
|  Section 14.4 | Adjournment | 41 |
|  Section 14.5 | Waiver of Notice; Approval of Meeting | 41 |
|  Section 14.6 | Quorum; Required Vote for Member Action; Voting for Directors | 41 |
|  Section 14.7 | Conduct of a Meeting; Member Lists | 42 |
|  Section 14.8 | Action Without a Meeting | 43 |
|  Section 14.9 | Voting and Other Rights | 43 |
|  Section 14.10 | Proxies and Voting | 44 |
|  Section 14.11 | Notice of Member Business and Nominations | 44 |
| ARTICLE XV | ARTICLE XV |  |
| GENERAL PROVISIONS | GENERAL PROVISIONS |  |
|  Section 15.1 | Addresses and Notices | 51 |
|  Section 15.2 | Further Action | 52 |
|  Section 15.3 | Binding Effect | 52 |
|  Section 15.4 | Integration | 52 |
|  Section 15.5 | Creditors | 52 |
|  Section 15.6 | Waiver | 52 |
|  Section 15.7 | Third-Party Beneficiaries | 52 |
|  Section 15.8 | Rights of Members Independent | 52 |
|  Section 15.9 | Counterparts | 53 |
|  Section 15.10 | Applicable Law; Jurisdiction; Waiver of Jury Trial | 53 |
|  Section 15.11 | Derivative Proceedings | 54 |
|  Section 15.12 | Invalidity of Provisions | 54 |
|  Section 15.13 | Consent of Members | 54 |
|  Section 15.14 | Expenses | 54 |
|  Section 15.15 | Facsimile Signatures | 54 |

---

iv

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**SECOND AMENDED AND RESTATED** 

**COMPANY AGREEMENT OF EAGLEROCK LAND, LLC** 

This **SECOND AMENDED AND RESTATED COMPANY AGREEMENT OF EAGLEROCK LAND, LLC**, is dated as of , 2026 (this "**<u>Agreement</u>**"). Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in <u>Section</u> <u>1.1</u>.

WHEREAS, the Company was formed under the TBOC pursuant to a certificate of formation filed with the Secretary of State of the State of Texas on December 1, 2025, and a Limited Liability Company Agreement of EagleRock Land, LLC, dated as of December 1, 2025;

WHEREAS, prior to the date hereof and pursuant to the TBOC, the Company was governed by that certain First Amended and Restated Company Agreement of EagleRock Land, LLC, dated as of April 16, 2026 (the "<u>**First A&R Company Agreement**</u>"); and

WHEREAS, the Board of Directors of the Company has authorized and approved an amendment and restatement of the First A&R Company Agreement on the terms set forth herein.

NOW THEREFORE, the First A&R Company Agreement is hereby amended and restated to read in its entirety as follows:

**ARTICLE I** 

**<u>DEFINITIONS</u>**

Section 1.1 **<u>Definitions</u>**. The following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

"**<u>Affiliate</u>**" has the meaning ascribed to such term in Rule 12b-2 promulgated under the Exchange Act.

"**<u>Agreement</u>**" has the meaning assigned to such term in the preamble of this Agreement.

"**<u>Board of Directors</u>**" has the meaning assigned to such term in <u>Section</u> <u>5.1</u>.

"**<u>Business Day</u>**" means Monday through Friday of each week, except that a legal holiday recognized as such by the government of the United States of America or the State of New York shall not be regarded as a Business Day.

"**<u>Capital Contribution</u>**" means any cash, cash equivalents or the value of contributed property that a Member contributes to the Company pursuant to this Agreement.

"**<u>Certificate</u>**" means a certificate in such form as may be adopted by the Board of Directors, issued by the Company evidencing ownership of one or more Shares.

"**<u>Certificate of Formation</u>**" means the Certificate of Formation of the Company filed with the Secretary of State of the State of Texas as referenced in <u>Section</u> <u>2.2</u>, as such Certificate of Formation may be amended, supplemented or restated from time to time.

"**<u>Chairman of the Board</u>**" has the meaning assigned to such term in <u>Section</u> <u>5.8</u>.

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"**<u>Class</u> <u>A Share</u>**" means a Class A share representing a limited liability company interest in the Company.

"**<u>Class</u> <u>B Share</u>**" means a Class B share representing a limited liability company interest in the Company.

"**<u>Close of Business</u>**" has the meaning assigned to such term in <u>Section</u> <u>14.11(d)</u>.

"**<u>Closing Date</u>**" means the first date on which Class A Shares are delivered by the Company to the Underwriters pursuant to the provisions of the Underwriting Agreement.

"**<u>Code</u>**" means the United States Internal Revenue Code of 1986, as amended from time to time (or any corresponding provisions of succeeding Law).

"**<u>Commission</u>**" means the U.S. Securities and Exchange Commission, including any governmental body or agency succeeding to the functions thereof.

"**<u>Common Shares</u>**" means any Shares that are not Preferred Shares, including Class A Shares and Class B Shares.

"**<u>Company</u>**" means EagleRock Land, LLC, a Texas limited liability company, and any successors thereto.

"**<u>Company Group</u>**" means the Company and each Subsidiary of the Company.

"**<u>Conflicts Committee</u>**" means an ad hoc committee of the Board of Directors comprised entirely of one or more Independent Directors empaneled by the Board of Directors by resolution establishing its roles and responsibilities that is formed to review and approve or reject any transaction, activity, arrangement or circumstance involving a conflict of interest or a potential conflict of interest between any Sponsor, one or more Directors, Officers, equity owners or their respective Affiliates, on the one hand, and the Company, any Group Member or any Member other than a Sponsor, on the other.

"**<u>Consolidated Adjusted EBITDA</u>**" means the Company's and its consolidated Subsidiaries' net income (loss) before interest; taxes; depreciation, amortization, depletion and accretion; share-based compensation; and other extraordinary and/or non-recurring expenses deducted in calculating Adjusted EBITDA as publicly disclosed by the Company for the most recently completed fiscal period.

"**<u>Derivative Instrument</u>**" has the meaning assigned to such term in <u>Section</u> <u>14.11(a)(ii)(A)</u>.

"**<u>Designated Director</u>**" means any Director who may be elected by the holders of any class or series of Shares specified in the related Share Designation for such class or series to the extent provided therein.

"**<u>Director</u>**" means a member of the Board of Directors.

"**<u>Dividend</u>**" means any distribution by the Company to a holder of a Share other than (a) a return of some or all of the Capital Contribution related to such Share or (b) a distribution upon liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary.

"**<u>Double Eagle</u>**" means (a) Double Eagle IV Midco, LLC and (b) its Affiliates.

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"**<u>EagleRock Land Operating</u>**" means EagleRock Land Operating, LLC, a Texas limited liability company.

"**<u>Exchange Act</u>**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (or any corresponding provisions of succeeding Law).

"**First A&R Company Agreement**" has the meaning assigned to such term in the preamble of this Agreement.

"**<u>Foreign Action</u>**" has the meaning assigned to such term in <u>Section</u> <u>15.10(d)</u>.

"**<u>FSC Enforcement Action</u>**" has the meaning assigned to such term in <u>Section</u> <u>15.10(d)</u>.

"**<u>Good Faith</u>**" means, when applied to the actions or omissions of a Person, that at the time of such action or omission such Person held a subjective belief that such action or omission is in, or not opposed to, the best interests of the Company Group.

"**<u>Governmental Entity</u>**" means any court, administrative agency, regulatory body, commission or other governmental authority, board, bureau or instrumentality, domestic or foreign and any subdivision thereof.

"**<u>Group Member</u>**" means a member of the Company Group.

"**<u>Group Member Agreement</u>**" means the partnership agreement of any Group Member that is a limited or general partnership, the limited liability company agreement of any Group Member, other than the Company, that is a limited liability company, the certificate of incorporation and bylaws or similar organizational documents of any Group Member that is a corporation, the joint venture agreement or similar governing document of any Group Member that is a joint venture and the governing or organizational or similar documents of any other Group Member that is a Person other than a limited or general partnership, limited liability company, corporation or joint venture, as such may be amended, supplemented or restated from time to time.

"**<u>Indemnified Person</u>**" means (a) any Person who is or was a Director or Officer, (b) any Person who is or was serving at the request of the Company or any of its Subsidiaries as an officer, director, member, manager, partner, fiduciary or trustee of another Person (including any Subsidiary); *provided*, *that* a Person shall not be an Indemnified Person by reason of providing, on a fee-for-services basis, trustee, fiduciary or custodial services, (c) the Sponsors and (d) any Person the Board of Directors designates as an "**<u>Indemnified Person</u>**" for purposes of this Agreement.

"**<u>Independent Director</u>**" means a Director who is determined by the Board of Directors to meet the then current independence and other standards established by the Exchange Act and by each National Securities Exchange on which Shares are listed for trading and, for the purposes of service on a Conflicts Committee, is determined to be independent with respect to any transaction, activity, arrangement or circumstance to be evaluated by such Conflicts Committee.

"**<u>IPO</u>**" means the initial offering and sale of Class A Shares to the public, as described in the Registration Statement.

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"**<u>Law</u>**" means any statute, law, ordinance, regulation, rule, code, order, requirement or rule of law (including common law) of any Governmental Entity.

"**<u>Lea</u> <u>& Eddy Holdings</u>**" means Lea & Eddy Holdings, LLC, a Texas limited liability company.

"**<u>Liquidation Date</u>**" means the date on which an event giving rise to the dissolution, winding up and termination of the Company occurs.

"**<u>Liquidator</u>**" means one or more Persons selected by the Board of Directors to perform the functions described in <u>Section</u> <u>11.2</u> as liquidating trustee of the Company within the meaning of the TBOC.

"**<u>Member</u>**" means each member of the Company, including any Person admitted as a member of the Company in accordance with this Agreement.

"**<u>Member Associated Person</u>**" has the meaning assigned to such term in <u>Section</u> <u>14.11(d)</u>.

"**<u>Merger Agreement</u>**" has the meaning assigned to such term in <u>Section</u> <u>13.1</u>.

"**<u>National Securities Exchange</u>**" means an exchange registered with the Commission under Section 6(a) of the Exchange Act.

"**<u>Officers</u>**" has the meaning assigned to such term in <u>Section</u> <u>8.1(a)</u>.

"**<u>OpCo</u> <u>Agreement</u>**" means the Amended and Restated Company Agreement of EagleRock Land Operating, as it may be amended, restated, supplemented and otherwise modified from time to time.

"**<u>OpCo</u> <u>Units</u>**" has the meaning assigned to such term in <u>Section</u> <u>3.3(g)</u>.

"**<u>Outstanding</u>**" means, with respect to any class or series of Shares, all such Shares that are issued by the Company and reflected as outstanding on the Company's books and records as of the date of determination, excluding any such Shares held in the Company's treasury.

"**<u>Percentage Interest</u>**" means, as of any date of determination, (a) as to any Class A Shares, the product obtained by multiplying (i) 100% less the percentage applicable to the Shares referred to in <u>clause</u> <u>(c)</u> by (ii) the quotient obtained by dividing (x) the number of such Class A Shares by (y) the total number of all Outstanding Class A Shares, (b) as to any Class B Shares, 0%, and (c) as to any other Shares, the percentage established for such Shares by the Board of Directors as a part of the issuance of such Shares.

"**<u>Person</u>**" means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or other entity, as well as any group that would be deemed to be a person under Section 13(d)(3) of the Exchange Act.

"**<u>Preferred Shares</u>**" means a class of Shares that entitles the Record Holders thereof to a preference or priority over the Record Holders of any other class of Shares in (a) the right to share profits or losses or items thereof, (b) the right to share in Dividends, or (c) rights upon dissolution or liquidation of the Company.

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"**<u>Public Announcement</u>**" has the meaning assigned to such term in <u>Section</u> <u>14.11(d)</u>.

"**<u>Quarter</u>**" means, unless the context requires otherwise, a fiscal quarter, or, with respect to the fiscal quarter in which the Closing Date occurs, the portion of such fiscal quarter after the Closing Date, of the Company.

"**<u>Record Date</u>**" means the date established by the Board of Directors for determining (a) the identity of the Record Holders entitled to notice of, or to vote at, any meeting of Members or entitled to exercise rights in respect of any lawful action of Members or (b) the identity of Record Holders entitled to receive any report or Dividend or to participate in any offer.

"**<u>Record Holder</u>**" or "**<u>holder</u>**" means (a) with respect to any Class A Shares or Class B Shares, the Person in whose name such Shares are registered on the books of the Transfer Agent as of the opening of business on a particular Business Day, and (b) with respect to any Shares of any other class, the Person in whose name such Shares are registered on the books that the Company has caused to be kept as of the opening of business on such Business Day.

"**<u>Registration Statement</u>**" means the Registration Statement on Form S-1 (Registration No. 333-) as it has been or as it may be amended or supplemented from time to time, filed by the Company with the Commission under the Securities Act to register the IPO.

"**<u>Securities Act</u>**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (or any corresponding provisions of succeeding Law).

"**<u>Share</u>**" means a share issued by the Company that evidences a Member's limited liability company interest in, and rights, powers and duties with respect to, the Company pursuant to this Agreement and the TBOC. Shares may be Common Shares or Preferred Shares and may be issued in different classes or series.

"**<u>Share Designation</u>**" has the meaning assigned to such term in <u>Section</u> <u>3.2(c)</u>.

"**<u>Share Majority</u>**" means a majority of the total votes that may be cast generally in the election of Directors (other than a Designated Director) by holders of all Outstanding Voting Shares, voting together as a single class.

"**<u>Shareholder's Agreements</u>**" means those certain Shareholder's Agreements, dated as of even date herewith, by and among the Company and the Sponsors.

"**<u>Solicitation Statement</u>**" has the meaning assigned to such term in <u>Section</u> <u>14.11(a)(ii)(A)</u>.

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"**<u>Special Approval</u>**" means, with respect to any transaction, activity, arrangement or circumstance, that (a) such transaction, activity, arrangement or circumstance has been specifically approved by a majority of the members of a Conflicts Committee, or (b) it complies with any applicable rules or guidelines established by a Conflicts Committee, with respect to categories of transactions, activities, arrangements or circumstances that are deemed approved by a Conflicts Committee.

"**<u>Sponsors</u>**" has the meaning assigned to such term in the Shareholder's Agreements.

"**<u>Subsidiary</u>**" means, with respect to any Person, as of any date of determination, any other Person as to which such Person owns or otherwise controls, directly or indirectly, more than 50% of the voting shares or other similar interests or a sole general partner interest or managing member or similar interest of such Person. EagleRock Land Operating and its Subsidiaries shall be deemed to be Subsidiaries of the Company.

"**<u>Surviving Business Entity</u>**" has the meaning assigned to such term in <u>Section</u> <u>13.2(a)(ii)</u>.

"**<u>TBOC</u>**" means the Texas Business Organizations Code, as amended (or any corresponding provisions of succeeding Law).

"**<u>transfer</u>**" means, with respect to a Share, a transaction by which the Record Holder of a Share assigns such Share to another Person who is or is admitted as a Member in accordance with this Agreement, and includes a sale, assignment, gift, exchange or any other disposition by Law or otherwise, including any transfer upon foreclosure of any pledge, encumbrance, hypothecation or mortgage.

"**<u>Transfer Agent</u>**" means, with respect to any class of Shares, such bank, trust company or other Person (including the Company or one of its Affiliates) as shall be appointed from time to time by the Company to act as registrar and transfer agent for such class of Shares; *provided* that if no Transfer Agent is specifically designated for such class of Shares, the Company shall act in such capacity.

"**<u>Trigger Event</u>**" means the first date on which the Sponsors no longer have the right to designate at least a majority of the Board of Directors pursuant to the Shareholder's Agreements.

"**<u>Underwriter</u>**" means each Person named as an underwriter in the Underwriting Agreement who is obligated to purchase Class A Shares pursuant thereto.

"**<u>Underwriting Agreement</u>**" means the Underwriting Agreement to be entered into by the Company providing for the sale of Class A Shares in the IPO.

"**<u>Unrestricted Party</u>**" has the meaning assigned to such term in <u>Section</u> <u>6.5(a)</u>.

"**<u>U.S. GAAP</u>**" means United States generally accepted accounting principles, as in effect from time to time, consistently applied.

"**<u>Voting Commitment</u>**" has the meaning assigned to such term in <u>Section</u> <u>14.11(a)(ii)(D)</u>.

"**<u>Voting Shares</u>**" means the Class A Shares, the Class B Shares and any other class or series of Shares issued after the date of this Agreement that entitle the Record Holder thereof to vote in the election of Directors (other than a Designated Director), voting together as a single class.

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Section 1.2 **<u>Construction</u>**. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all accounting terms not otherwise defined herein have the meanings assigned under U.S. GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all references to currency, monetary values and dollars set forth herein shall mean United States dollars and all payments hereunder shall be made in United States dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article or Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "or" is not exclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the terms "in writing," "written communications," "written notice" and words of similar import shall be deemed satisfied under this Agreement by use of e-mail and other forms of electronic communication; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the words "hereof," "herein" and "hereunder" and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement.

**ARTICLE II** 

**<u>ORGANIZATION</u>**

Section 2.1 **<u>Formation</u>**. The Company has been formed as a limited liability company pursuant to the provisions of the TBOC upon the terms, provisions and conditions herein set forth.

Section 2.2 **<u>Certificate of Formation</u>**. The Certificate of Formation has been filed with the Secretary of State of the State of Texas as required by the TBOC, with such filing being hereby confirmed, ratified and approved in all respects. The Board of Directors shall use all reasonable efforts to cause to be filed such other certificates or documents that it determines to be necessary or appropriate for the formation, continuation, qualification and operation of a limited liability company in the State of Texas or any other state in which the Company may elect to do business or own property. To the extent that the Board of Directors determines such action to be necessary or appropriate, the Board of Directors shall direct the appropriate Officers of the Company to file amendments to and restatements of the Certificate of Formation and do all things to maintain the

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Company as a limited liability company under the Laws of the State of Texas or of any other state in which the Company may elect to do business or own property, and any such Officer so directed shall be an "authorized person" of the Company within the meaning of the TBOC for purposes of filing any such certificate with the Secretary of State of the State of Texas. The Company shall not be required, before or after filing, to deliver or mail a copy of the Certificate of Formation, any qualification document or any amendment thereto to any Member.

Section 2.3 **<u>Name</u>**. The name of the Company shall be "EagleRock Land, LLC." The Company's business may be conducted under any other name or names, as determined by the Board of Directors. The words "Limited Liability Company," "LLC," or similar words or letters shall be included in the Company's name where necessary for the purpose of complying with the Laws of any jurisdiction that so requires. The Board of Directors may change the name of the Company at any time and from time to time and shall notify the Members of such change within a reasonable time.

Section 2.4 **<u>Registered Office; Registered Agent</u>**. Unless and until changed by the Board of Directors, the registered office of the Company in the State of Texas shall be located at 1999 Bryan St., Suite 900, Dallas, Texas 75201-3136, Dallas County, and the registered agent for service of process on the Company in the State of Texas at such registered office shall be Capitol Services, Inc.

Section 2.5 **<u>Principal Office; Principal Place of Business</u>**. Unless and until changed by the Board of Directors, the principal office of the Company shall be located at 9655 Katy Freeway, Suite 375, Houston, Texas 77024 or such other place as the Board of Directors may from time to time designate by notice to the Members. The Company may maintain offices at such other place or places within or outside the State of Texas as the Board of Directors determines to be necessary or appropriate. The principal place of business of the Company shall be located in such place as is determined by the Board of Directors from time to time.

Section 2.6 **<u>Purposes</u>**. The purpose of the Company shall be to engage in any business activity that lawfully may be conducted by a limited liability company organized under the Laws of the State of Texas and, in connection therewith, to exercise all of the rights and powers conferred upon it pursuant to the agreements relating to such business activity.

Section 2.7 **<u>Powers</u>**. The Company shall be empowered and authorized to do, take, and engage in any and all acts and things necessary, appropriate, desirable, advisable, ancillary or incidental for the furtherance and accomplishment of the purposes described in <u>Section</u> <u>2.6</u>.

Section 2.8 **<u>Term</u>**. The Company's term commenced upon the filing of the Certificate of Formation in accordance with the TBOC and shall be perpetual, unless and until it is dissolved, its affairs are wound up and it is terminated in accordance with the provisions of <u>Article</u> <u>XI</u>. The existence of the Company as a separate legal entity shall continue until the cancellation of the Certificate of Formation as provided in the TBOC.

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Section 2.9 **<u>Company Assets</u>**. Company assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Company as an entity, and no Member, Director or Officer, individually or collectively, shall have any ownership interest in such Company assets or any portion thereof. Title to any or all of the Company assets may be held in the name of the Company or one or more nominees, as the Board of Directors may determine. All Company assets shall be recorded as the property of the Company in its books and records, irrespective of the name in which record title to such Company assets is held.

**ARTICLE III** 

**<u>MEMBERS AND SHARES</u>**

Section 3.1 **<u>Members</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Person shall be admitted as a Member and shall become bound by the terms of this Agreement if such Person purchases or otherwise lawfully acquires any Share and becomes the Record Holder of such Share in accordance with the provisions of this <u>Article</u> <u>III</u>. A Person may become a Record Holder and, thus, a Member, without the consent or approval of any other Member. A Person may not become a Member without becoming a Record Holder of a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The name and mailing address of each Record Holder shall be listed on the books and records of the Company maintained for such purpose by the Company or the Transfer Agent. The Secretary of the Company shall update the books and records of the Company from time to time as necessary to reflect accurately the information therein (or shall cause the Transfer Agent to do so, as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided in the TBOC, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to <u>Articles</u> <u>XIII</u> and <u>XIV</u>, Members may not be expelled from or removed as Members. Members shall not have any right to withdraw from the Company; *provided*, *that* when a transferee of a Member's Shares becomes a Record Holder of such Shares, such transferring Member shall cease to be a Member with respect to the Shares so transferred. For the avoidance of doubt, Section 101.205 of the TBOC shall not apply to such cessation of membership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except to the extent expressly provided in this Agreement (including any Share Designation): (i) no Member shall be entitled to the withdrawal or return of its Capital Contribution, except to the extent, if any, that distributions made pursuant to this Agreement or upon dissolution of the Company may be considered as such by Law and then only to the extent provided for in this Agreement; (ii) except as otherwise expressly provided in this Agreement or with respect to a Share Designation, no Member shall have priority over any other Member either as to the return of Capital Contributions or as to profits, losses or Dividends or rights upon dissolution or liquidation of the Company; (iii) no interest shall be paid by the Company on Capital Contributions; and (iv) no Member, in its capacity as such, shall participate in the operation or management of the Company's business, transact any business in the Company's name or have the power to sign documents for or otherwise bind the Company, by reason of being a Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any Member, including the Sponsors, shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Company, including business interests and activities in direct competition with the Company Group, and none of the same shall constitute a breach of this Agreement or any duty (including fiduciary duties) otherwise existing at Law, in equity or otherwise to any Group Member or Member. Neither the Company nor any of the other Members shall have any rights by virtue of this Agreement in any such business interests or activities of any Member.

Section 3.2 **<u>Shares</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may issue Shares, and options, rights, warrants and appreciation rights relating to Shares, for any Company purpose at any time and from time to time to such Persons for such consideration (which may be cash, property, services or any other lawful consideration) or for no consideration and on such terms and conditions as the Board of Directors shall determine, all without the approval of any Member. Each Share shall have the rights and be governed by the provisions set forth in this Agreement (including any Share Designation). Except to the extent expressly provided in this Agreement (including any Share Designation), no Shares shall entitle any Member to any preemptive, conversion, preferential, or similar rights with respect to the issuance of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the date of this Agreement, two classes of Shares have been designated: Class A Shares and Class B Shares. The Class A Shares and the Class B Shares shall entitle the Record Holders thereof to one vote per Share on any and all matters submitted for the consent or approval of Members generally, and shall vote together as a single class, except as otherwise provided by Law or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In addition to the Class A Shares and the Class B Shares Outstanding on the date hereof, and without the consent or approval of any Member, additional Shares may be issued by the Company in one or more classes or series, with such designations, preferences, rights, powers, qualifications, limitations and restrictions (which may be junior to, equivalent to, or senior or superior to, any existing classes of Shares), as shall be fixed by the Board of Directors and reflected in a written action or actions approved by the Board of Directors in compliance with <u>Section</u> <u>5.1</u> and subject to any limitations prescribed by Law (each, a "**<u>Share Designation</u>**"), including: (i) whether or not the class or series is to have voting rights, full, special or limited, or is to be without voting rights, and whether or not such class or series is to be entitled to vote as a separate class or series either alone or together with the holders of one or more other classes or series of Shares; (ii) the right to share Company profits and losses or items thereof; (iii) the Dividend rate, whether Dividends are payable in cash, Shares or other property, the conditions upon which and the times when such Dividends are payable, the preference to or the relation to the payment of Dividends payable on any other class or classes or series of Shares, whether or not such Dividends shall be cumulative or noncumulative, and if cumulative, the date or dates from which such Dividends shall accumulate; (iv) rights upon termination, dissolution and liquidation of the Company; (v) whether, and the terms and conditions upon which, the Company may redeem the Shares; (vi) whether such Shares are issued with the privilege of redemption, conversion or exchange and, if so, the redemption, conversion or exchange price or prices or rate or rates, or any adjustments thereto, the date or dates on which, or the period or periods during which, the shares will be redeemable, convertible or exchangeable and all other terms and conditions upon which the redemption, conversion or exchange may be made; (vii) the terms and conditions upon which such Shares will be issued, evidenced by certificates and assigned or transferred; (viii) the method

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for determining the Percentage Interest, if any, applicable to such Shares; (ix) the terms and amounts of any sinking fund provided for the purchase or redemption of Shares of the class or series; (x) whether there will be restrictions on the issuance of Shares of the same class or series or any other class or series; and (xi) the right, if any, of the holder of each such Share to vote on Company matters, including matters relating to the relative rights, preferences and privileges of such Shares. A Share Designation (or any resolution of the Board of Directors amending any Share Designation) shall be effective when a duly executed original of the same is delivered to the Secretary of the Company for inclusion among the permanent records of the Company, and shall be annexed to, and constitute part of, this Agreement. Unless otherwise provided in the applicable Share Designation, the Board of Directors may at any time increase or decrease the authorized amount of Shares of any class or series, but not below the number of Shares of such class or series then Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company is authorized to issue an unlimited number of Shares in one or more classes, or one or more series of any such classes as shall be fixed by the Board of Directors. All Shares issued pursuant to, and in accordance with the requirements of, this <u>Article</u> <u>III</u> shall be validly issued Shares, except to the extent otherwise provided in the TBOC or this Agreement (including any Share Designation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Board of Directors may, without the consent or approval of any Members, amend this Agreement and make any filings under the TBOC or otherwise to the extent the Board of Directors determines that it is necessary or desirable in order to effectuate any issuance of Shares pursuant to this <u>Article</u> <u>III</u>, including an amendment of <u>Section</u> <u>3.2(d)</u>.

Section 3.3 **<u>Certificates and Transfer</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary herein, unless the Board of Directors shall determine otherwise in respect of some or all of any or all classes of Shares, Shares shall not be evidenced by certificates. Certificates that are issued shall be executed on behalf of the Company by the Chairman of the Board, President, Chief Executive Officer or any Executive Vice President or Vice President and the Chief Financial Officer or the Secretary or any Assistant Secretary of the Company. No Certificate for a class or series of Shares shall be valid for any purpose until it has been countersigned by the Transfer Agent for such class or series of Shares; *provided*, *however*, that if the Board of Directors elects to cause the Company to issue Shares of such class or series in global form, the Certificate shall be valid upon receipt of a certificate from the Transfer Agent certifying that the Shares have been duly registered in accordance with the directions of the Company. The Shares shall be entered in the books of the Company as they are issued and shall exhibit the holder's name and number of Shares. The Shares shall be transferred on the books of the Company, which may be maintained by a third-party registrar or the Transfer Agent, by the holder thereof in person or by his attorney, upon surrender for cancellation of certificates for at least the same number of shares, with an assignment and power of transfer endorsed thereon or attached thereto, duly executed, with such proof of the authenticity of the signature as the Company or its agents may reasonably require or upon receipt of proper transfer instructions from the registered holder of uncertificated Shares and upon compliance with appropriate procedures for transferring Shares in uncertificated form, at which time the Company shall issue a new certificate to the Person entitled thereto (if the Shares are then represented by certificates), cancel the old certificate and record the transaction upon its books.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By acceptance of the transfer of any Share, each transferee of a Share (including any nominee holder or an agent or representative acquiring such Shares for the account of another Person) (i) shall be admitted to the Company as a Member with respect to the Shares so transferred to such transferee when any such transfer or admission is reflected in the books and records of the Company, (ii) shall be deemed to agree to be bound by the terms of this Agreement, (iii) shall become the Record Holder of the Shares so transferred, (iv) grants powers of attorney to the Officers of the Company and any Liquidator of the Company, as specified herein, and (v) makes the consents and waivers contained in this Agreement. The transfer of any Shares and the admission of any new Member shall not constitute an amendment to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each certificated Share shall be signed, countersigned and registered in the manner required by this Agreement. In case any Officer, the Transfer Agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such Officer, Transfer Agent or registrar before such certificate is issued, it may be issued by the Company with the same effect as if he or she were such Officer, Transfer Agent or registrar at the date of issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any mutilated Certificate is surrendered to the Transfer Agent, the appropriate Officers on behalf of the Company shall execute, and the Transfer Agent shall countersign and deliver in exchange therefor, a new Certificate evidencing the same number and class or series of Shares as the Certificate so surrendered. The appropriate Officers on behalf of the Company shall execute, and the Transfer Agent shall countersign and deliver, a new Certificate in place of any Certificate previously issued if the Record Holder of the Certificate: (i) makes proof by affidavit, in form and substance satisfactory to the Company, that a previously issued Certificate has been lost, destroyed or stolen; (ii) requests the issuance of a new Certificate before the Company has notice that the Certificate has been acquired by a purchaser for value in good faith and without notice of an adverse claim; (iii) if requested by the Company, delivers to the Company a bond, in form and substance satisfactory to the Company, with surety or sureties and with fixed or open penalty as the Company may direct to indemnify the Company and the Transfer Agent against any claim that may be made on account of the alleged loss, destruction or theft of the Certificate; and (iv) satisfies any other reasonable requirements imposed by the Company. If a Member fails to notify the Company within a reasonable time after he has notice of the loss, destruction or theft of a Certificate, and a transfer of the Shares represented by the Certificate is registered before the Company or the Transfer Agent receives such notification, the Member shall, to the fullest extent permitted by Law, be precluded from making any claim against the Company or the Transfer Agent for such transfer or for a new Certificate. As a condition to the issuance of any new Certificate under this <u>Section</u> <u>3.2(d)</u>, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Transfer Agent) reasonably connected therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Board of Directors shall have the power and authority to make all such rules and regulations concerning the issue, transfer and registration or the replacement of certificates for Shares. The Company may enter into additional agreements with Members to restrict the transfer of Shares in any manner not prohibited by the TBOC.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing contained in this Agreement shall preclude the settlement of any transactions involving Shares entered into through the facilities of any National Securities Exchange on which such Shares are listed for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding the foregoing, no Class B Shares may be transferred unless a corresponding number of units representing limited liability company interests ("**<u>OpCo</u> <u>Units</u>**") of EagleRock Land Operating are transferred therewith in accordance with the OpCo Agreement.

Section 3.4 **<u>Record Holders</u>**. The Company shall be entitled to recognize the Record Holder as the owner of a Share and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such Share on the part of any other Person, regardless of whether the Company shall have actual or other notice thereof, except as otherwise provided by Law or any applicable rule, regulation, guideline or requirement of any National Securities Exchange on which such Shares are listed for trading. Without limiting the foregoing, when a Person (such as a broker, dealer, bank, trust company or clearing corporation or an agent of any of the foregoing) is acting as nominee, agent or in some other representative capacity for another Person in acquiring and/or holding Shares, as between the Company on the one hand, and such other Persons on the other, such representative Person shall be the Record Holder of such Shares.

Section 3.5 **<u>Splits and Combinations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may make a pro rata Dividend of Shares of any class or series to all Record Holders of such class or series of Shares, or may effect a subdivision or combination of Shares of any class or series so long as, after any such event and subject to the effect of <u>Section</u> <u>3.5(d)</u> below, each Member shall have the same Percentage Interest in the Company as before such event, and any amounts calculated on a per Share basis or stated as a number of Shares are proportionately adjusted. Notwithstanding the foregoing, in no event shall either Class A Shares or Class B Shares be split, divided, or combined unless the Outstanding Shares of the other class shall be proportionately split, divided or combined, and a corresponding number of OpCo Units are split, divided or combined in accordance with the OpCo Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever such a Dividend, subdivision or combination of Shares is declared, the Board of Directors may select a Record Date as of which the Dividend, subdivision or combination shall be effective and shall send notice thereof at least 20 days prior to such Record Date to each Record Holder. Such Record Date shall not precede the date upon which the resolution fixing the Record Date is adopted and shall not be more than 60 nor less than 10 days prior to such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly following any such Dividend, subdivision or combination, the Company may issue Certificates to the Record Holders of Shares as of the applicable Record Date representing the new number of Shares held by such Record Holders, or the Board of Directors may adopt such other procedures that it determines to be necessary or appropriate to reflect such changes. If any such combination results in a smaller total number of Outstanding Shares, the Company shall require, as a condition to the delivery to a Record Holder of such new Certificate, the surrender of any Certificate held by such Record Holder immediately prior to such Record Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall not issue fractional Shares upon any Dividend, subdivision or combination of Shares. If a Dividend, subdivision or combination of Shares would otherwise result in the issuance of fractional Shares, each fractional Share shall be rounded to the nearest whole Share (and a 0.5 Share shall be rounded to the next higher Share).

Section 3.6 **<u>Class B Shares</u>**. Class B Shares shall be redeemable for Class A Shares on the terms and subject to the conditions set forth in the OpCo Agreement. The Company will at all times reserve and keep available out of its authorized but unissued Class A Shares, solely for the purpose of issuance upon Redemption (as defined in the OpCo Agreement) of the Outstanding Class B Shares for Class A Shares pursuant to the OpCo Agreement, such number of Class A Shares that shall be issuable upon any such Redemption pursuant to the OpCo Agreement; *provided* that nothing contained herein shall be construed to preclude EagleRock Land Operating or the Company from satisfying its rights or obligations in respect of any such Redemption of Class B Shares pursuant to the OpCo Agreement by delivering to the holder of such Class B Shares upon such Redemption cash in lieu of Class A Shares in the amount permitted by and provided in the OpCo Agreement or Class A Shares held in the treasury of the Company. All Class A Shares issued upon any such Redemption will, upon issuance in accordance with the OpCo Agreement, be validly issued, fully paid and non-assessable (except as such non-assessability may be limited by Sections 101.206 and 101.613 of the TBOC).

Section 3.7 **<u>Rights of Members</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Member shall have the right, for a purpose that is reasonably related, as determined by the Board of Directors, to such Member's interest as a Member in the Company, upon reasonable written demand stating the purpose of such demand and at such Member's own expense, to obtain the following documents (which shall be deemed satisfied by virtue of the Company publicly filing such documents via EDGAR):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company's most recent annual report and any subsequent quarterly or periodic reports required to be filed with the Commission pursuant to Section 13(a) of the Securities Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a copy of other publicly available documents that the Company has filed with or furnished to the Commission; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a copy of this Agreement and the Certificate of Formation and all amendments thereto, together with copies of the executed copies of all powers of attorney pursuant to which this Agreement, the Certificate of Formation and all amendments thereto have been executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rights pursuant to <u>Section</u> <u>3.7(a)</u> replace in their entirety any rights to information provided for in Section 101.502(a) of the TBOC. Each of the Members, each other Person who acquires an interest in a Share and each other Person bound by this Agreement hereby agrees to the fullest extent permitted by Law that such Person does not have any rights as a Member to receive any information either pursuant to the TBOC or otherwise except for the information identified in <u>Section</u> <u>3.7(a)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company may keep confidential from the Members, for such period of time as the Board of Directors deems reasonable, (i) any information that the Board of Directors reasonably believes to be in the nature of trade secrets or (ii) other information the disclosure of which the Board of Directors believes (A) is not in the best interests of the Company Group, (B) could damage the Company Group or its business or (C) that any Group Member is required by Law or by agreement with any third party to keep confidential (other than agreements with Affiliates of the Company the primary purpose of which is to circumvent the obligations set forth in this <u>Section</u> <u>3.7</u>).

Section 3.8 **<u>Shareholder's Agreements</u>**. The Company and each Sponsor entered into a Shareholder's Agreement, which sets forth certain agreements among them, including with respect to the designation of nominees for the Board of Directors. In the event of any conflict between the terms of this Agreement and the terms of the Shareholder's Agreements, the terms of the Shareholder's Agreements shall control. Any person purchasing or otherwise acquiring any interest in any Shares shall be deemed to have notice of and consented to the provisions of the Shareholder's Agreements.

**ARTICLE IV** 

**<u>DIVIDENDS</u>**

Section 4.1 **<u>Dividends</u>**. Subject to the prior rights and preferences, if any, applicable to any class or series of Shares specified in the related Share Designation or any series thereof, the holders of Class A Shares shall be entitled to receive ratably in proportion to the number of Class A Shares held by them such Dividends (payable in cash, Shares or otherwise), if any, as may be declared thereon by the Board of Directors at any time and from time to time out of any assets of the Company legally available therefor. Dividends shall not be declared or paid on the Class B Shares unless (a) the Dividend consists of Class B Shares or of rights, options, warrants or other securities convertible or exercisable into, or exchangeable or redeemable for, Class B Shares paid proportionally with respect to each Outstanding Class B Share and (b) a Dividend consisting of Class A Shares or of rights, options, warrants or other securities convertible or exercisable into, or exchangeable or redeemable for, Class A Shares on equivalent terms is simultaneously paid to the holders of Class A Shares. If Dividends are declared on the Class A Shares or the Class B Shares that are payable in Common Shares, or securities convertible into, or exercisable or exchangeable or redeemable for, Common Shares, the Dividends payable to the holders of Class A Shares shall be paid only in Class A Shares (or securities convertible into, or exercisable or exchangeable or redeemable for, Class A Shares), the Dividends payable to the holders of Class B Shares shall be paid only in Class B Shares (or securities convertible into, or exercisable or exchangeable or redeemable for, Class B Shares), and such Dividends shall be paid in the same number of Shares (or fraction thereof) on a per share basis of the Class A Shares and Class B Shares, respectively (or securities convertible into, or exercisable or exchangeable or redeemable for, the same number of Shares (or fraction thereof) on a per share basis of the Class A Shares and Class B Shares, respectively). In no event shall either Class A Shares or Class B Shares be split, divided, or combined unless the Outstanding Shares of the other class shall be proportionately split, divided or combined.

Section 4.2 **<u>Distributions on Liquidation</u>**. Notwithstanding <u>Section</u> <u>4.1</u>, in the event of the dissolution and liquidation of the Company, all proceeds received during or after the end of any Quarter in which the Liquidation Date occurs shall be applied and distributed solely in accordance with, and subject to the terms and conditions of, <u>Section</u> <u>11.3</u>.

Section 4.3 **<u>Record Holders</u>**. Each Dividend in respect of a Class A Share shall be paid by the Company, directly or through the Transfer Agent or through any other Person or agent, only to the Record Holder of such Class A Share as of the Record Date set for such Dividend. Such payment shall constitute full payment and satisfaction of the Company's liability in respect of such payment, regardless of any claim of any Person who may have an interest in such payment by reason of an assignment or otherwise.

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**ARTICLE V** 

**<u>MANAGEMENT AND OPERATION OF BUSINESS</u>**

Section 5.1 **<u>Power and Authority of Board of Directors</u>**. Except as otherwise expressly provided in this Agreement, the business and affairs of the Company shall be managed by or under the direction of a board of directors (the "**<u>Board of Directors</u>**"). The Directors shall constitute "managers" within the meaning of the TBOC. No Member, by virtue of its status as such, shall have any management power over the business and affairs of the Company or actual or apparent authority to enter into, execute or deliver contracts on behalf of, or to otherwise bind, the Company. Except as otherwise expressly provided in this Agreement, in addition to the powers that now or hereafter can be granted to managers under the TBOC and to all other powers granted under any other provision of this Agreement, the Board of Directors shall, subject to the restrictions imposed by Law or the Certificate of Formation, have full power and authority to exercise all the powers of the Company. The provisions of this <u>Article</u> <u>V</u> and other related provisions of this Agreement shall be deemed to replace the provisions of Chapter 101, Subchapter G of the TBOC.

Section 5.2 **<u>Number, Qualification and Term of Office of Directors</u>**. The number of Directors which shall constitute the whole Board of Directors shall be at the time of the execution of this Agreement. After completion of the IPO, the number of Directors which shall constitute the whole Board of Directors shall be determined from time to time by resolution adopted by a majority of the Board of Directors then in office, subject to the terms of the Shareholder's Agreements, <u>Section</u> <u>5.21</u> hereof, and the rights of the holders of any class or series of Shares specified in the related Share Designation, if applicable, but shall consist of not less than Directors. No decrease in the number of authorized Directors constituting the Board of Directors shall shorten the term of any incumbent Director.

Section 5.3 **<u>Classes of Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Until the Trigger Event, the Directors, other than those who may be elected by the holders of any class or series of Shares specified in the related Share Designation to the extent provided therein, shall consist of a single class, with the initial term of office to expire at the next annual meeting of Members following the date hereof, and each Director shall hold office until his or her successor shall have been duly elected and qualified, subject, however, to such Director's earlier death, resignation, disqualification or removal. Prior to the Trigger Event, at each annual meeting of Members, Directors elected to succeed those Directors whose terms then expire shall be elected for a term of office to expire at the next succeeding annual meeting of Members after his or her election (subject to adjustment as provided in <u>Section</u> <u>5.3(b)</u>), with each Director to hold office until his or her successor shall have been duly elected and qualified, subject, however, to such Director's earlier death, resignation, disqualification or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On and after the Trigger Event, the Directors, other than those who may be elected by the holders of any class or series of Shares specified in the related Share Designation to the extent provided therein, shall be divided, with respect to the time for which they severally hold office, into three classes, as nearly equal in number as is reasonably possible, with the initial term

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of office of the first class to expire at the first annual meeting of Members following the Trigger Event, the initial term of office of the second class to expire at the second annual meeting of Members following the Trigger Event, and the initial term of office of the third class to expire at the third annual meeting of Members following the Trigger Event, with each Director to hold office until his or her successor shall have been duly elected and qualified, subject, however, to (i) the terms of the Shareholder's Agreements and (ii) such Director's earlier death, resignation, disqualification or removal. Following such initial term, each director shall serve for a term ending on the third annual meeting following the annual meeting of Members at which such director was elected; provided, however, that if at the time of the Trigger Event, any of the Directors are designees of Double Eagle, such designees shall, at Double Eagle's election, be classified as members of the third class of Directors. The Board of Directors shall assign members of the Board of Directors, other than those Directors who may be elected by the holders of any class or series of Shares specified in the related Share Designation to the extent provided therein, to such classes at the time such classification becomes effective. At each meeting specified in the related Share Designation of Members following the Trigger Event, Directors elected to succeed those Directors whose terms expire at such meeting shall be elected for a term of office to expire in accordance with the related Share Designation, with each Director to hold office until his or her successor shall have been duly elected and qualified, subject, however, to such Director's earlier death, resignation, disqualification or removal. If the number of Directors is changed, any increase or decrease shall be apportioned among the classes so as to maintain the number of Directors in each class as nearly equal as possible, and any additional Director of any class elected to fill a vacancy resulting from an increase in such class or from the death, resignation or removal from office of a Director or other cause shall hold office for a term that shall coincide with the remaining term of that class, but in no case will a decrease in the number of Directors shorten the term of any incumbent Director. Directors need not be Members.

Section 5.4 **<u>Removal</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Trigger Event, subject to (i) the terms of the Shareholder's Agreements and (ii) the rights of the holders of any class or series of Shares specified in the related Share Designation, if any, to elect and/or remove additional Directors, any Director may be removed from time to time and at any time, either for or without cause, upon the affirmative vote of a Share Majority acting in accordance with the TBOC and this Agreement (including any Share Designation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On and after the Trigger Event, subject to (i) the terms of the Shareholder's Agreements and (ii) the rights of the holders of any class or series of Shares specified in the related Share Designation, if any, to elect and/or remove additional Directors and except as otherwise provided herein, any Director may be removed only for cause, upon the affirmative vote of the holders of at least 66 2/3% of the voting power of the Outstanding Voting Shares, voting together as a single class and acting at a meeting of the Members in accordance with the TBOC and this Agreement (including any Share Designation). Except as applicable Law otherwise provides, cause for the removal of a Director shall be deemed to exist only if the Director whose removal is proposed: (A) has been convicted of a felony by a court of competent jurisdiction and that conviction is no longer subject to direct appeal; (B) has been found to have been grossly negligent in the performance of his or her duties to the Company in any matter of substantial importance to the Company by (1) the affirmative vote of at least 80% of the disinterested Directors then in office at any meeting of the Board of Directors called for that purpose or (2) a court of competent jurisdiction; or (C) has been adjudicated by a court of competent jurisdiction to be mentally incompetent. Notwithstanding the foregoing, in the event that a party to a Shareholder's Agreement provides notice to the Company to remove a Director designated by such Member pursuant to the terms of such Shareholder's Agreement, the Company shall take all necessary action to cause such removal, to the extent permitted by applicable Law.

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Section 5.5 **<u>Resignations</u>**. Any Director may resign at any time by giving notice of such Director's resignation in writing to the Company. Any such resignation shall take effect at the time specified therein. Unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 5.6 **<u>Vacancies</u>**. Subject to (a) the terms of the Shareholder's Agreements, and (b) the rights of the holders of any class or series of Shares specified in the related Share Designation then Outstanding, if any, any newly created directorship that results from an increase in the number of Directors or any vacancy on the Board of Directors shall be filled (i) prior to the Trigger Event, by the affirmative vote of a majority of the total number of Directors then in office, even if less than a quorum, or by a sole remaining Director, or the affirmative vote of a Share Majority acting at a meeting of the Members or by written consent (if and then only to the extent permitted) in accordance with the TBOC and this Agreement (including any Share Designation) and (ii) on or after the Trigger Event, solely by the affirmative vote of a majority of the total number of Directors then in office, even if less than a quorum, or by a sole remaining Director, and shall not be filled by the Members. Any Director elected or appointed to fill a vacancy not resulting from an increase in the number of Directors shall hold office for the remaining term of his or her predecessor and until his or her successor is elected and qualified or until his or her earlier death, resignation, disqualification or removal. Subject to the terms of (A) the Shareholder's Agreements and (B) the rights of the holders of any class or series of Shares specified in the related Share Designation, if any, any Director elected or appointed prior to the Trigger Event to fill a vacancy resulting from an increase in the number of Directors shall hold office for a term to expire at the next succeeding annual meeting of Members after his or her election or appointment, and any Director elected or appointed on and after the Trigger Event to fill a vacancy resulting from an increase in the number of Directors shall be assigned to such class as the Board of Directors determines is appropriate, subject, however, to such Director's earlier death, resignation, disqualification or removal.

Section 5.7 **<u>Nomination of Directors</u>**. Only Persons who are nominated in accordance with the procedures set forth in <u>Section</u> <u>14.11(a)(ii)</u> shall be eligible for election as Directors of the Company, except as may be otherwise provided in the Shareholder's Agreements and any Share Designation with respect to the right of Members of any class of Shares to nominate and elect a specified number of Directors.

Section 5.8 **<u>Chairman of Meetings</u>**. The Board of Directors may elect a member of the Board of Directors as Chairman of the Board of Directors (the "**<u>Chairman of the Board</u>**"). Unless otherwise determined by the Board of Directors, the Chairman of the Board shall preside at all meetings of the Board of Directors and be chairman of all Member meetings. In the absence of the Chairman of the Board, meetings of Members shall be presided over by the Chief Executive Officer if he or she is a Director or, in the absence of the Chief Executive Officer, by another Person designated by the Board of Directors. The Chairman of the Board shall perform all duties incidental to his or her office that may be required by Law and all such other duties as are properly required by the Board of Directors. The Chairman of the Board shall make reports to the Board of Directors and shall see that all orders and resolutions of the Board of Directors and of any committee thereof are carried into effect. The Chairman of the Board may also serve as Chief Executive Officer, if so appointed by the Board of Directors.

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Section 5.9 **<u>Place of Meetings</u>**. The Board of Directors may hold meetings, both regular and special, either within or without the State of Texas.

Section 5.10 **<u>Regular Meetings</u>**. The Board of Directors may, by resolution, provide the time and place (if any) for the holding of regular meetings without any notice other than such resolution.

Section 5.11 **<u>Special Meetings</u>**. Special meetings of the Board of Directors shall be called at the request of the Chairman of the Board, the Chief Executive Officer or a majority of the Board of Directors then in office. The Person or Persons authorized to call special meetings of the Board of Directors may fix the place, if any, date and time of the meetings. Any business may be conducted at a special meeting of the Board of Directors.

Section 5.12 **<u>Action Without Meeting</u>**. Any action required or permitted to be taken at any meeting by the Board of Directors or any committee thereof, as the case may be, may be taken without a meeting if a consent thereto is signed or transmitted electronically, as the case may be, by members of the Board of Directors or of such committee, as the case may be, having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all members of the Board of Directors or of such committee entitled to vote thereon were present and voted. Such writing or electronic transmission shall be filed with the minutes of proceedings of the Board of Directors or such committee.

Section 5.13 **<u>Notice</u>**. Notice of any special meeting of the Board of Directors shall be given to each Director at his or her business or residence in writing by hand delivery, first-class or overnight mail, courier service or electronic transmission or orally by telephone. If mailed by first-class mail, such notice shall be deemed adequately delivered if deposited in the United States mails so addressed, with postage thereon prepaid, at least five days before such meeting. If by overnight mail or courier service, such notice shall be deemed adequately delivered if the notice is delivered to the overnight mail or courier service company at least 24 hours before such meeting. If by electronic transmission, such notice shall be deemed adequately delivered if the notice is transmitted at least 24 hours before such meeting. If by telephone or by hand delivery, the notice shall be given at least 24 hours prior to the time set for the meeting and shall be confirmed by electronic transmission that is sent promptly thereafter. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board of Directors need be specified in the notice of such meeting, except for amendments to this Agreement.

Section 5.14 **<u>Meetings by Remote Communication</u>**. Members of the Board of Directors, or any committee thereof, may participate in a meeting of the Board of Directors or such committee by means of conference telephone or other communications equipment by means of which all Persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at such meeting.

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Section 5.15 **<u>Quorum</u>**. At all meetings of the Board of Directors, a majority of the then total number of Directors in office shall constitute a quorum for the transaction of business. At all meetings of any committee of the Board of Directors, the presence of a majority of the total number of members of such committee (assuming no vacancies) shall constitute a quorum. The act of a majority of the Directors or committee members present at any meeting at which there is a quorum shall be the act of the Board of Directors or such committee, as the case may be. If a quorum shall not be present at any meeting of the Board of Directors or any committee, a majority of the Directors or members, as the case may be, present thereat may adjourn the meeting from time to time without further notice other than announcement at the meeting unless (a) the date, time and place, if any, of the adjourned meeting are not announced at the time of adjournment, in which case notice conforming to the requirements of <u>Section</u> <u>5.13</u> of this Agreement shall be given to each Director, or (b) the meeting is adjourned for more than 24 hours, in which case the notice referred to in <u>clause</u> <u>(a)</u> shall be given to those Directors not present at the announcement of the date, time and place of the adjourned meeting.

Section 5.16 **<u>Waiver of Notice</u>**. Whenever notice to any Director is required to be given under this Agreement, a written waiver, signed by the Person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a Person at any such meeting of the Directors shall constitute a waiver of notice of such meeting, except when the Person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Directors need be specified in any written waiver of notice unless so required by resolution of the Board of Directors. All waivers and approvals shall be filed with the Company records or made part of the minutes of the meeting.

Section 5.17 **<u>Regulations</u>**. To the extent consistent with applicable Law and this Agreement, the Board of Directors may adopt such rules and regulations for the conduct of meetings of the Board of Directors and for the management of the affairs and business of the Company as the Board of Directors may deem appropriate.

Section 5.18 **<u>Minutes</u>**. The Board of Directors and each committee shall keep regular minutes of their meetings and proceedings and each committee shall report the same to the Board of Directors at the next meeting thereof. Unless otherwise determined by the Board of Directors, the Secretary of the Company shall act as secretary at each meeting of the Board of Directors. In case the Secretary shall be absent from any meeting of the Board of Directors, an Assistant Secretary shall perform the duties of secretary at such meeting; and in the absence from any such meeting of the Secretary and all the Assistant Secretaries, the chairman of the meeting may appoint any Person to act as secretary of the meeting.

Section 5.19 **<u>Remuneration</u>**. Each Director shall receive remuneration for such Director's services as determined by the Board of Directors at any time and from time to time by resolution. The Board of Directors may also likewise provide that the Company shall reimburse each Director for any expenses paid by such Director on account of such Director's attendance at any meeting. Nothing in this <u>Section</u> <u>5.19</u> shall be construed to preclude any Director from serving the Company in any other capacity and receiving remuneration therefor.

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Section 5.20 **<u>Reliance by Third Parties</u>**. Notwithstanding anything to the contrary in this Agreement, any Person dealing with the Company shall be entitled to assume that the Board of Directors and any Officer authorized by the Board of Directors to act on behalf of and in the name of the Company has full power and authority to encumber, sell or otherwise use in any manner any and all assets of the Company and to enter into any authorized contracts on behalf of the Company, and such Person shall be entitled to deal with the Board of Directors or any Officer as if it were the Company's sole party in interest, both legally and beneficially. Each Member hereby waives, to the fullest extent permitted by Law, any and all defenses or other remedies that may be available against such Person to contest, negate or disaffirm any action of the Board of Directors or any Officer in connection with any such dealing. In no event shall any Person dealing with the Board of Directors or any Officer or its representatives be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the Board of Directors or any Officer or its representatives. Each and every certificate, document or other instrument executed on behalf of the Company by the Board of Directors or any Officer or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (a) at the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full force and effect, (b) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Company and (c) such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Company.

Section 5.21 **<u>Consent Rights</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as Double Eagle directly or indirectly owns at least 20% of the Outstanding Voting Shares, the Company shall not take and shall take all necessary action to cause any member of the Company Group not to take, directly or indirectly (whether by amendment, merger, consolidation, reorganization or otherwise), any action (or enter into an agreement to take any action) to (i) increase or decrease the size of the Board of Directors or any committee of the Board of Directors or take any such action with respect to the governing body of any member of the Company Group or (ii) incur debt for borrowed money (or liens securing such debt) in an amount that would result in outstanding debt for borrowed money less cash that exceeds the Company's Consolidated Adjusted EBITDA (calculated on a pro forma basis for such incurrence and any acquisition being funded by such debt) for the four quarter period for which financial statements are available immediately prior to the proposed date of incurrence of such debt by 4.00 to 1.00, in each case, without the prior consent of Double Eagle. For the purpose of clarity, if, at any time, Double Eagle owns less than 20% of the Outstanding Voting Shares, the Company shall no longer need the express approval of Double Eagle prior to taking any action contemplated by this <u>Section</u> <u>5.21(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) So long as Double Eagle directly or indirectly owns at least 20% of the Outstanding Voting Shares, the Company shall not and shall take all necessary action to cause each member of the Company Group not to, directly or indirectly (whether by amendment, merger, consolidation, reorganization or otherwise) make (or enter into an agreement to make) any amendment, modification, or waiver of this Agreement or any other governing documents of the Company that materially and adversely affects Double Eagle or its rights under this Agreement, without the prior consent of Double Eagle, which consent may be withheld in its discretion. For the purpose of clarity, if, at any time, Double Eagle owns less than 20% of the Outstanding Voting Shares, the Company shall no longer need the express approval of Double Eagle prior to taking any action contemplated by this <u>Section</u> <u>5.21(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in this <u>Section</u> <u>5.21</u>, or the exercise of the rights contemplated hereby (including any grant or withholding of consent, as the case may be), shall be deemed to create or otherwise result in any duty, obligation, or liability on the part of Double Eagle, express or implied, in equity or otherwise. In addition, with respect to any Director who is also a director, officer, employee or principal of Double Eagle, no act or omission of such director, officer, employee or principal of Double Eagle in his or her capacity as such shall (i) be deemed to be an act or omission of such person in his or her capacity as a Director or (ii) be deemed to create or otherwise result in any duty, obligation, or liability on the part of such person in his or her capacity, express or implied, in equity or otherwise.

**ARTICLE VI** 

**<u>EXCULPATION, INDEMNIFICATION, ADVANCES AND INSURANCE</u>**

Section 6.1 **<u>Exculpation</u>**. Subject to other applicable provisions of this <u>Article</u> <u>VI</u> to the fullest extent permitted by applicable Law as it presently exists or may hereafter be amended, the Indemnified Persons shall not be liable to the members of the Company Group, any Director, any Member or any holder of any equity interest in any Subsidiary of the Company by virtue of being an Indemnified Person or for any acts or omissions in their capacity as an Indemnified Person or otherwise in connection with the Company, this Agreement or the business and affairs of the members of the Company Group.

Section 6.2 **<u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Indemnified Persons shall be indemnified by the Company, to the fullest extent permitted by Law as it presently exists or may hereafter be amended (*provided*, *that* no such amendment shall limit an Indemnified Person's rights to indemnification hereunder with respect to any actions or events occurring prior to such amendment), against all expenses and liabilities (including judgments, fines, penalties, interest, amounts paid in settlement with the approval of the Company and counsel fees and disbursements) arising by virtue of being an Indemnified Person or for any acts or omissions in their capacity as an Indemnified Person or otherwise in connection with the Company, this Agreement or the business and affairs of the members of the Company Group, or any investment made or held by any member of the Company Group, including in connection with any civil, criminal, administrative, investigative or other action, suit or proceeding to which any such Person may hereafter be made party by reason of being or having been a manager of the Company under the TBOC, a Director or Officer of any member of the Company Group, or an officer, director, member, partner, fiduciary or trustee of another Person or any employee benefit plan at the request of the Company. Without limitation, the foregoing indemnity shall extend to any liability of any Indemnified Person, pursuant to a loan guaranty or otherwise, for any indebtedness of any member of the Company Group (including any indebtedness that any member of the Company Group has assumed or taken subject to), and the Officers are hereby authorized and empowered, on behalf of the Company, to enter into one or more indemnity agreements consistent with the provisions of this <u>Article</u> <u>VI</u> in favor of any Indemnified Person having or potentially having liability for any such indebtedness. It is the intention of this <u>Section</u> <u>6.2(a)</u> that the Company indemnify each Indemnified Person to the fullest extent permitted by Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of this Agreement, to the extent they restrict the duties and liabilities of an Indemnified Person otherwise existing at Law or in equity, including <u>Section</u> <u>6.3</u>, are agreed by each Member to modify such duties and liabilities of the Indemnified Person to the extent permitted by Law, *provided* that nothing in this Agreement shall limit the effect of Section 101.256 of the TBOC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Indemnified Person may apply to the Business Court in the Eleventh Business Court Division of the State of Texas or any other court of competent jurisdiction in the State of Texas for indemnification to the extent otherwise permissible under <u>Article</u> <u>VI</u>. The basis of such indemnification by a court shall be a determination by such court that indemnification of the Indemnified Person is proper in the circumstances because such Indemnified Person has met the applicable standards of conduct set forth in <u>Section</u> <u>6.2(a)</u>. Notice of any application for indemnification pursuant to this <u>Section</u> <u>6.2(c)</u> shall be given to the Company promptly upon the filing of such application. If successful, in whole or in part, the Indemnified Person seeking indemnification shall also be entitled to be paid the expense of prosecuting such application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the fullest extent permitted by Law, expenses (including attorneys' fees) incurred by an Indemnified Person in defending any civil, criminal, administrative or investigative action, suit or proceeding shall be paid by the Company in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined that such Indemnified Person is not entitled to be indemnified by the Company as authorized in this <u>Section</u> <u>6.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The indemnification and advancement of expenses provided by or granted pursuant to this <u>Article</u> <u>VI</u> shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under this Agreement, or any other agreement, vote of Members or disinterested Directors or otherwise, and shall continue as to an Indemnified Person who has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors, assigns and administrators of the Indemnified Person unless otherwise provided in a written agreement with such Indemnified Person or in the writing pursuant to which such Indemnified Person is indemnified, it being the policy of the Company that indemnification of the Persons specified in <u>Section</u> <u>6.2(a)</u> shall be made to the fullest extent permitted by Law. The provisions of this <u>Article</u> <u>VI</u> shall not be deemed to preclude the indemnification of any Person who is not specified in <u>Section</u> <u>6.2(a)</u> but whom the Company has the power or obligation to indemnify under the provisions of the TBOC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company may purchase and maintain insurance on behalf of any Person entitled to indemnification under this <u>Article</u> <u>VI</u> against any liability asserted against such Person and incurred by such Person in any capacity to which they are entitled to indemnification hereunder, or arising out of such Person's status as such, whether or not the Company would have the power or the obligation to indemnify such Person against such liability under the provisions of this <u>Article</u> <u>VI</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The indemnification and advancement of expenses provided by, or granted pursuant to, this <u>Article</u> <u>VI</u> shall, unless otherwise provided when authorized or ratified, inure to the benefit of the heirs, executors and administrators of any Person entitled to indemnification under this <u>Article</u> <u>VI</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company may, to the extent authorized from time to time by the Board of Directors, provide rights to indemnification and to the advancement of expenses to officers, employees and agents of the Company and to the officers, employees and agents of the Company Group similar to those conferred in this <u>Article</u> <u>VI</u> to Indemnified Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If this <u>Article</u> <u>VI</u> or any portion of this <u>Article</u> <u>VI</u> shall be invalidated on any ground by a court of competent jurisdiction the Company shall nevertheless indemnify each Indemnified Person as to expenses (including attorneys' fees), judgments, fines, and amounts paid in settlement with respect to any action, suit, proceeding or investigation, whether civil, criminal or administrative, including a grand jury proceeding or action or suit brought by or in the right of the Company, to the full extent permitted by any applicable portion of this <u>Article</u> <u>VI</u> that shall not have been invalidated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Each of the Indemnified Persons may, in the performance of his, her or its duties, consult with legal counsel and accountants, and any act or omission by such Person on behalf of the Company in furtherance of the interests of the Company in reliance upon, and in accordance with, the advice of such legal counsel or accountants as to matters the Indemnified Person believes are within such Person's professional or expert competence will be full justification for any such act or omission, and such Person will be fully protected for such acts and omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) An Indemnified Person shall not be denied indemnification in whole or in part under this <u>Article</u> <u>VI</u> because the Indemnified Person had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Any liabilities that an Indemnified Person incurs resulting from acting on behalf of the Company (whether as a fiduciary or otherwise) in connection with the operation, administration or maintenance of an employee benefit plan or any related trust or funding mechanism (whether such liabilities are in the form of excise taxes assessed by the United States Internal Revenue Service, penalties assessed by the Department of Labor, restitutions to such a plan or trust or other funding mechanism or to a participant or beneficiary of such plan, trust or other funding mechanism, or otherwise) shall be treated as liabilities indemnifiable under this <u>Article</u> <u>VI</u>, to the maximum extent permitted by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) A Director shall, in the performance of his duties, be fully protected in relying upon the records of the Company and on such information, opinions, reports or statements presented to the Company by any of the Officers or employees of the Company or any other Group Member, or committees of the Board of Directors, or by any other Person as to matters the Director believes are within such other Person's professional or expert competence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Any amendment, modification or repeal of this <u>Article</u> <u>VI</u> or any provision hereof shall be prospective only and shall not in any way affect the limitations on the liability of any indemnitee under this <u>Article</u> <u>VI</u> as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted and provided such Person became an indemnitee hereunder prior to such amendment, modification or repeal.

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Section 6.3 **<u>Duties of Officers and Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except with respect to actions taken or omitted with respect to conflicts of interests (<u>Section</u> <u>6.4</u>) and business opportunities (<u>Section</u> <u>6.5</u>), the duties and obligations owed to the Company and the Members by the Officers and Directors shall be those duties and obligations applicable to officers and directors, respectively, of a Texas corporation under Texas Law. The duties and obligations owed to the Company and the Members by the Officers and Directors in respect of matters contemplated by <u>Section</u> <u>6.4</u> and <u>Section</u> <u>6.5</u> shall not be those duties and obligations applicable to officers and directors, respectively, of a Texas corporation under the TBOC, but rather such duties and obligations shall solely be governed by the requirements set forth in <u>Section</u> <u>6.4</u> and <u>Section</u> <u>6.5</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors shall have the right to exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it thereunder either directly or by or through the duly authorized Officers, and the Board of Directors shall not be responsible for the misconduct or negligence on the part of any such Officer duly appointed or duly authorized by the Board of Directors in Good Faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board of Directors, when acting on behalf of the Company in its capacity as the managing member of EagleRock Land Operating, shall have the right to approve amendments to the OpCo Agreement relating to the Redemption of OpCo Units (together with the cancellation of a corresponding number of Class B Shares) for Class A Shares without any duty to the Company.

Section 6.4 **<u>Resolution of Conflicts of Interest; Standards of Conduct and Modification of Duties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise expressly provided in this Agreement, whenever a potential conflict of interest exists or arises between the Sponsors, one or more Directors, Officers, equity owners or their respective Affiliates, on the one hand, and the Company, any Group Member or any Member other than a Sponsor, one or more Directors, Officers, equity owners or their respective Affiliates, on the other, any resolution or course of action by the Board of Directors or its Affiliates in respect of such conflict of interest shall be permitted and deemed approved by all Members, and shall not constitute a breach of this Agreement, of any agreement contemplated herein, or of any duty stated or implied by Law or equity, including any fiduciary duty, if the resolution or course of action in respect of such conflict of interest is (i) approved by Special Approval, (ii) approved by the vote of holders of Outstanding Voting Shares representing a majority of the total votes that may be cast by all Outstanding Voting Shares in the election of Directors that are held by disinterested parties, (iii) on terms that are, when taken together in their entirety, determined by the Board of Directors to be no less favorable to the Company, Group Member or Member other than a Sponsor, as applicable, than those generally being provided to or available from unrelated third parties, (iv) determined by the Board of Directors to be fair and reasonable to the Company taking into account the totality of the relationships between the parties involved (including other transactions

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that may be particularly favorable or advantageous to the Sponsors, Company, Group Member or Member) or (v) with respect to any election on behalf of EagleRock Land Operating to settle a Redemption with a Cash Election (as defined in the OpCo Agreement), approved by the Board of Directors or a committee of the Board of Directors that has been delegated the authority to make such elections. The Board of Directors shall be authorized, but not required, in connection with its resolution of such conflict of interest to seek Special Approval of such resolution, and the Board of Directors may also adopt a resolution or course of action that has not received Special Approval. If Special Approval is sought, any such determination, action or omission by the Board of Directors or any committee thereof, as applicable, will for all purposes be presumed to have been in Good Faith and in any proceeding brought by any Member or the Company challenging such approval, the Person bringing or prosecuting such proceeding shall have the burden of proving that such determination, action or omission was not in Good Faith. If Special Approval is not sought and the Board of Directors, or committee thereof, as applicable, approves the resolution or course of action taken with respect to a conflict of interest, then it shall be presumed that, in making its decision, the Board of Directors (or committee thereof) acted in accordance with any and all of its duties, whether express or implied, in equity or otherwise, and in any proceeding brought by any Member or by or on behalf of such Member or any other Member or the Company challenging such approval, the Person bringing or prosecuting such proceeding shall have the burden of overcoming such presumption. Notwithstanding anything to the contrary in this Agreement, the existence of the conflicts of interest described in the Registration Statement are hereby approved by all Members and shall not constitute a breach of this Agreement or of any duty otherwise existing at Law, in equity or otherwise. Nothing in this <u>Section</u> <u>6.4</u> or otherwise in this Agreement shall limit the effect of Section 101.255 of the TBOC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Members hereby authorize the Board of Directors, on behalf of the Company as a partner or member of a Group Member, to approve of actions by the board of directors or managing member of such Group Member similar to those actions permitted to be taken by the Board of Directors pursuant to this <u>Section</u> <u>6.4</u>.

Section 6.5 **<u>Outside Activities</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in <u>Section</u> <u>6.5(b)</u>: (i) the Sponsors, each officer and director of a Sponsor, and each Officer and Director of the Company and their respective Affiliates (each an "**<u>Unrestricted Party</u>**") shall have the right to engage in businesses of every type and description and other activities for profit and to engage in and possess an interest in other business ventures of any and every type or description, whether in businesses engaged in or anticipated to be engaged in by the Company or any Group Member, independently or with others, including business interests and activities in direct competition with the business and activities of the Company or any Group Member or business interests and activities with any of the Company's clients, customers, vendors or employees, and none of the same shall constitute a breach of this Agreement or any duty otherwise existing at Law, in equity or otherwise to the Company or any Group Member or any Member (other than to the extent such activity is in breach of any express obligation contained in this Agreement or any other agreement to which such Person and any member of the Company Group are parties); and (ii) neither the doctrine of "corporate opportunity" nor any analogous doctrine shall apply to the Unrestricted Parties. The Company and each Member hereby renounce any interest or expectancy in, or right to be offered an opportunity to participate in, any business opportunity which may be available to or known by the Unrestricted

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Parties, except as provided in <u>Section</u> <u>6.5(b)</u>. Subject to <u>Section</u> <u>6.5(b)</u>, the Unrestricted Parties shall have no obligation hereunder or resulting from any duty expressed or implied by Law to present, offer or communicate business opportunities to the Members, the Company or its Affiliates that may become available to or known by the Sponsors or such Officer, Director or Affiliate. None of any Group Member, any Member or any other Person shall have any rights by virtue of an Officer's or Director's duties as an Officer or Director, this Agreement or any Group Member Agreement in any business ventures of the Sponsors or any Officer, Director or their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company and each Member do not renounce any interest in any business opportunity offered to the Sponsors or any Officer, Director or their respective Affiliates if the Sponsors or such Officer, Director or their respective Affiliates engages in such business or activity resulting from or using information that the Company establishes by a preponderance of the evidence is confidential information of any member of the Company Group, and the provisions of <u>subsection</u> <u>(a)</u> above shall not apply to any such business opportunity. With respect to the Sponsors or any Officer, Director or their respective Affiliates, as applicable, the term "confidential information" does not include any information that (i) at the time of disclosure, is available to the public, other than as a result of a disclosure by such person in breach of a duty or obligation of confidentiality, (ii) is already in the possession of such person or becomes available to such person on a non-confidential basis from a source other than the Company Group (*provided*, *however*, that such source is not, to such person's knowledge, bound by a contractual, legal or fiduciary obligation of confidentiality to the Company Group with respect to such information) or (iii) has been or was independently developed by such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Member shall be deemed to have notice of and to have consented to the provisions of this <u>Section</u> <u>6.5</u>.

**ARTICLE VII** 

**<u>COMMITTEES</u>**

Section 7.1 **<u>Designation, Powers</u>**. Subject to the terms of the Shareholder's Agreements, the Board of Directors may designate one or more committees, each committee to consist of one or more of the Directors of the Company. Any such committee shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Company to the extent provided in the resolution of the Board of Directors and may authorize the seal of the Company to be affixed to all papers which may require it.

Section 7.2 **<u>Procedure; Meetings; Quorum</u>**. Any committee designated pursuant to <u>Section</u> <u>7.1</u> shall choose its own chairman by a majority vote of the members then in attendance in the event the chairman has not been selected by the Board of Directors and shall meet at such times and at such place or places as may be provided by the charter of such committee or by resolution of such committee or resolution of the Board of Directors. At every meeting of any such committee, the presence of a majority of all the members thereof shall constitute a quorum and the affirmative vote of a majority of the members present at a meeting where a quorum is present shall be necessary for the adoption by it of any resolution. The Board of Directors shall adopt a charter for each committee for which a charter is required by applicable Laws, regulations or stock exchange rules, may adopt a charter for any other committee, and may adopt other rules and

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regulations for the governance of any committee not inconsistent with the provisions of this Agreement or any such charter, and each committee may adopt its own rules and regulations of governance and may create one or more subcommittees, in each case to the extent not inconsistent with this Agreement or any charter or other rules and regulations adopted by the Board of Directors.

Section 7.3 **<u>Alternate Members of Committees</u>**. The Board of Directors may designate one or more Directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of such committee.

**ARTICLE VIII** 

**<u>OFFICERS</u>**

Section 8.1 **<u>Officers</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors shall have the power and authority to appoint such officers with such titles, authority and duties as determined by the Board of Directors. Such Persons so designated by the Board of Directors shall be referred to as "**<u>Officers</u>**." Unless provided otherwise by resolution of the Board of Directors, the Officers shall have the titles, power, authority and duties described below in this <u>Article</u> <u>VIII</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Officers of the Company may include a Chief Executive Officer, a President, one or more Executive Vice Presidents and Vice Presidents, a Treasurer and a Secretary, and such other Officers as the Board of Directors from time to time may deem proper. All Officers elected by the Board of Directors shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this <u>Article</u> <u>VIII</u>. Such Officers shall also have such powers and duties as from time to time may be conferred by the Board of Directors or by any committee thereof or, with respect to any Executive Vice President, Vice President, Treasurer or Secretary, by the Chief Executive Officer or President, if any. The Board of Directors or any committee thereof may from time to time elect, or the Chief Executive Officer or President, if any, may appoint, such other Officers and such agents, as may be necessary or desirable for the conduct of the business of the Company. Such other Officers and agents shall have such duties and shall hold their offices for such terms as shall be provided in this Agreement or as may be prescribed by the Board of Directors or such committee thereof or by the Chief Executive Officer or President, as the case may be. Any number of offices may be held by the same Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Officer shall hold office until his or her successor shall have been duly elected or appointed and shall have qualified or until such Officer's earlier death, resignation, disqualification or removal; provided, however, any Officer may be removed from office at any time by the affirmative vote of a majority of the Board of Directors or, except in the case of an Officer or agent elected by the Board of Directors, by the Chief Executive Officer or President, if any. Such removal shall be without prejudice to the contractual rights, if any, of the Person so removed. No elected Officer shall have any contractual rights against the Company for compensation by virtue of such election beyond the date of the election of such Officer's successor or such Officer's resignation, disqualification or removal, whichever event shall first occur, except as otherwise provided in an employment contract or under an employee deferred compensation plan. Any Officer may resign at any time upon written notice to the Secretary of the Company.

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Section 8.2 **<u>Chief Executive Officer</u>**. The Chief Executive Officer shall be responsible for the general management of the affairs of the Company and shall act in a general executive capacity subject to the oversight of the Board of Directors in the administration and operation of the Company's business and general supervision of its policies and affairs. The Chief Executive Officer shall have the authority to sign, in the name and on behalf of the Company, checks, orders, contracts, leases, notes, drafts and all other documents and instruments in connection with the business of the Company.

Section 8.3 **<u>President</u>**. The President, if any, shall have such powers and shall perform such duties as shall be assigned to him or her by the Board of Directors. In the absence (or inability or refusal to act) of the Chairman of the Board and the Chief Executive Officer, the President (if any and if he or she shall be a director) may preside when present at all meetings of the Board of Directors and be the chairman of the meeting at all Member meetings, in each case, as determined by the Board of Directors.

Section 8.4 **<u>Executive Vice Presidents and Vice Presidents</u>**. Each Executive Vice President and Vice President, if any, shall have such powers and shall perform such duties as shall be assigned to him or her by the Board of Directors, the Chief Executive Officer or the President, if any.

Section 8.5 **<u>Secretary</u>**. The Secretary shall keep or cause to be kept in one or more books provided for that purpose, the minutes of all meetings of the Board of Directors, the committees of the Board of Directors and the Members; he or she shall see that all notices are duly given in accordance with the provisions of this Agreement and as required by applicable Law; he or she shall be custodian of the records and the seal of the Company and affix and attest the seal to all Certificates of the Company (unless the seal of the Company on such certificates shall be a facsimile, as hereinafter provided) and affix and attest the seal to all other documents to be executed on behalf of the Company under its seal; and he or she shall see that the books, reports, statements, certificates and other documents and records required by Law to be kept and filed are properly kept and filed; and in general, he or she shall perform all the duties incident to the office of Secretary and such other duties as from time to time may be assigned to him or her by the Board of Directors, the Chief Executive Officer or the President, if any.

Section 8.6 **<u>Treasurer</u>**. The Treasurer, if any, shall exercise general supervision over the receipt, custody and disbursement of corporate funds. He or she shall have such further powers and duties and shall be subject to such directions as may be granted or imposed upon him or her from time to time by the Board of Directors, the Chief Executive Officer or the President, if any.

Section 8.7 **<u>Vacancies</u>**. A newly created elected office and a vacancy in any elected office because of death, resignation or removal may be filled by the Board of Directors for the unexpired portion of the term at any meeting of the Board of Directors. Any vacancy in an office appointed by the Chief Executive Officer or the President, if any, because of death, resignation or removal may be filled by the Chief Executive Officer or the President, if any.

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Section 8.8 **<u>Action with Respect to Securities of Other Companies</u>**. Unless otherwise directed by the Board of Directors, the Chief Executive Officer or President or any Officer authorized by the Chief Executive Officer or the President, shall have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders of or with respect to any action of security holders of any other corporation or other entity in which the Company may hold securities and otherwise to exercise any and all rights and powers that the Company may possess by reason of its ownership of securities in such other corporation.

Section 8.9 **<u>Delegation</u>**. The Board of Directors may from time to time delegate the powers and duties of any Officer to any other Officer or agent, notwithstanding any provision hereof.

Section 8.10 **<u>Reliance by Third Parties</u>**. Notwithstanding anything to the contrary in this Agreement, any Person dealing with the Company shall be entitled to assume that the Board of Directors and any Officer authorized by the Board of Directors to act on behalf of and in the name of the Company has full power and authority to encumber, sell or otherwise use in any manner any and all assets of the Company and to enter into any authorized contracts on behalf of the Company, and such Person shall be entitled to deal with the Board of Directors or any Officer as if it were the Company's sole party in interest, both legally and beneficially. Each Member hereby waives, to the fullest extent permitted by Law, any and all defenses or other remedies that may be available against such Person to contest, negate or disaffirm any action of the Board of Directors or any Officer in connection with any such dealing. In no event shall any Person dealing with the Board of Directors or any Officer or its representatives be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the Board of Directors or any Officer or its representatives. Each and every certificate, document or other instrument executed on behalf of the Company by the Board of Directors or any Officer or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (a) at the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full force and effect, (b) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Company and (c) such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Company.

**ARTICLE IX** 

**<u>BOOKS, RECORDS, ACCOUNTING AND REPORTS</u>**

Section 9.1 **<u>Records and Accounting</u>**. The Board of Directors shall keep or cause to be kept appropriate books and records with respect to the Company's business, including all books and records necessary to provide to the Members any information required to be provided pursuant to this Agreement. Any books and records maintained by or on behalf of the Company in the regular course of its business, including the record of the Members, books of account and records of Company proceedings, may be kept on, or be in the form of, any information storage device or method; *provided*, that the books and records so maintained are convertible into clearly legible written form within a reasonable period of time. The books of the Company shall be maintained, for tax and financial reporting purposes, on an accrual basis in accordance with U.S. GAAP.

Section 9.2 **<u>Fiscal Year</u>**. The fiscal year for tax and financial reporting purposes of the Company shall be a calendar year ending December 31 unless otherwise required by the Code or by Law.

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Section 9.3 **<u>Reports</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as practicable, but in no event later than 120 days after the close of each fiscal year of the Company, the Board of Directors shall use commercially reasonable efforts to cause to be mailed or made available to each Record Holder of a Share, as of a date selected by the Board of Directors, an annual report containing financial statements of the Company for such fiscal year of the Company, presented in accordance with U.S. GAAP, including a balance sheet and statements of operations, equity and cash flows, such statements to be audited by a registered public accounting firm selected by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As soon as practicable, but in no event later than 90 days after the close of each Quarter except the last Quarter of each fiscal year, the Board of Directors shall use commercially reasonable efforts to cause to be mailed or made available to each Record Holder of a Share, as of a date selected by the Board of Directors, a report containing unaudited financial statements of the Company and such other information as may be required by applicable Law, regulation or rule of any National Securities Exchange on which the Shares are listed for trading, or as the Board of Directors determines to be necessary or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall be deemed to have made a report available to each Record Holder as required by this <u>Section</u> <u>9.3</u> if it has either (i) filed such report with the Commission via its Electronic Data Gathering, Analysis and Retrieval system and such report is publicly available on such system or (ii) made such report available on any publicly available website maintained by the Company.

**ARTICLE X** 

**<u>TAX MATTERS</u>**

Section 10.1 **<u>Tax Elections</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has made an election under Treasury Regulations Section 301.7701-3(c) to be classified as an association taxable as a corporation for U.S. federal tax purposes. The Company shall not make an election to be classified as other than an association taxable as a corporation pursuant to Treasury Regulations Section 301.7701-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided herein, the Board of Directors shall determine whether the Company should make, change or revoke any other elections permitted by the Code.

Section 10.2 **<u>Withholding</u>**. Notwithstanding any other provision of this Agreement, the Board of Directors is authorized to take any action that may be required to cause the Company and other Group Members to comply with any withholding requirements established under the Code or any other U.S. federal, state, local or non-U.S. Law, including pursuant to Sections 1441, 1442, 1445 and 1446 of the Code. To the extent that the Company withholds and pays over to any taxing authority any amount in connection with any Dividend or other distribution of income to any Member, the Board of Directors may treat the amount withheld as a distribution of cash pursuant to <u>Section</u> <u>4.1</u> or <u>Section</u> <u>11.3</u>, as applicable, in the amount of such withholding from such Member.

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**ARTICLE XI** 

**<u>DISSOLUTION AND LIQUIDATION</u>**

Section 11.1 **<u>Dissolution</u>**. The Company shall not be dissolved by the admission of additional Members. The Company shall dissolve, and its affairs shall be wound up, upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an election to dissolve the Company by the Board of Directors that is approved by the holders of a Share Majority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the entry of a decree of judicial dissolution of the Company pursuant to the provisions of the TBOC; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at any time that there are no Members of the Company, unless the business of the Company is continued in accordance with the TBOC.

Section 11.2 **<u>Liquidator</u>**. Upon dissolution of the Company, the Board of Directors shall select one or more Persons to act as Liquidator. The Liquidator (if other than the Board of Directors) shall be entitled to receive such compensation for its services as may be approved by holders of a Share Majority. The Liquidator (if other than the Board of Directors) shall agree not to resign at any time without 15 days' prior notice and may be removed at any time, with or without cause, by notice of removal approved by holders of a Share Majority. Upon dissolution, death, incapacity, removal or resignation of the Liquidator, a successor and substitute Liquidator (who shall have and succeed to all rights, powers and duties of the original Liquidator) shall within 30 days thereafter be approved by holders of a Share Majority. The right to approve a successor or substitute Liquidator in the manner provided herein shall be deemed to refer also to any such successor or substitute Liquidator approved in the manner herein provided. Except as expressly provided in this <u>Article</u> <u>XI</u>, the Liquidator approved in the manner provided herein shall have and may exercise, without further authorization or consent of any of the parties hereto, all of the powers conferred upon the Board of Directors under the terms of this Agreement (but subject to all of the applicable limitations, contractual and otherwise, upon the exercise of such powers) necessary or appropriate to carry out the duties and functions of the Liquidator hereunder for and during the period of time required to complete the winding up and liquidation of the Company as provided for herein.

Section 11.3 **<u>Liquidation</u>**. The Liquidator shall proceed to dispose of the assets of the Company, discharge its liabilities, and otherwise wind up its affairs in such manner and over such period as determined by the Liquidator, subject to the TBOC and as provided herein. The steps to be accomplished by the Liquidator are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as promptly as possible after dissolution and again after final liquidation, the Liquidator shall cause a proper accounting to be made by a recognized firm of certified public accountants of the Company's assets, liabilities and operations through the last day of the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Liquidator shall pay, satisfy or discharge from Company funds, or otherwise make reasonable provision for payment and discharge thereof (including the establishment of a cash fund for contingent, conditional or unmatured liabilities in such amount and for such term as the Liquidator may reasonably determine): all of the debts, liabilities and obligations of the Company (including expenses incurred in liquidation); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) following the payment and satisfaction of liabilities under <u>Section</u> <u>11.3(b)</u>, all remaining assets of the Company shall be distributed to the Members in accordance with the terms of this Agreement by the end of the taxable year during which the liquidation of the Company occurs (or, if later, by 90 days after the date of the liquidation). The distribution of cash and/or property to the Members in accordance with the provisions of this <u>Section</u> <u>11.3</u> constitutes a complete return to the Members of their Capital Contributions, a complete distribution to the Members of their interest in the Company and all the Company's property and constitutes a compromise to which all Members have consented within the meaning of the TBOC. To the extent that a Member returns funds to the Company, it has no claim against any other Member for those funds.

Section 11.4 **<u>Cancellation of Certificate of Formation</u>**. Upon the completion of the distribution of Company cash and property as provided in <u>Section</u> <u>11.3</u> in connection with the liquidation of the Company, the Certificate of Formation and all qualifications of the Company as a foreign limited liability company in jurisdictions other than the State of Texas shall be canceled and such other actions as may be necessary to terminate the Company shall be taken.

Section 11.5 **<u>Return of Contributions</u>**. None of any member of the Board of Directors or any Officer of the Company will be personally liable for, or have any obligation to contribute or loan any monies or property to the Company to enable it to effectuate, the return of the Capital Contributions of the Members, or any portion thereof, it being expressly understood that any such return shall be made solely from Company assets.

Section 11.6 **<u>Waiver of Partition</u>**. To the maximum extent permitted by Law, each Member hereby waives any right to partition of the Company property.

**ARTICLE XII** 

**<u>AMENDMENT OF AGREEMENT</u>**

Section 12.1 **<u>General</u>**. Except as provided in <u>Section</u> <u>12.3</u> and <u>Section</u> <u>12.4</u>, the Board of Directors may amend any of the terms of this Agreement but only in compliance with the terms, conditions and procedures set forth in this <u>Section</u> <u>12.1</u>. If the Board of Directors desires to amend any provision of this Agreement other than pursuant to <u>Section</u> <u>12.3</u>, then it shall first adopt a resolution setting forth the amendment proposed, declaring its advisability, and then (a) call a special meeting of the Members entitled to vote in respect thereof for the consideration of such amendment, (b) direct that the amendment proposed be considered at the next annual meeting of the Members or (c) seek the written consent of the Members. Amendments to this Agreement may be proposed only by the Board of Directors. Such special or annual meeting shall be called and held upon notice in accordance with <u>Article</u> <u>XIV</u> of this Agreement. The notice shall set forth such amendment in full or a brief summary of the changes to be effected thereby, as the Board of Directors shall deem advisable. At the meeting, a vote of Members entitled to vote thereon shall be taken for and against the proposed amendment. A proposed amendment shall be effective upon its approval by a Share Majority, unless a greater percentage is required under this Agreement or by Texas Law.

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Section 12.2 **<u>Shareholder Amendments</u>**. Subject to <u>Section</u> <u>12.1</u>, <u>Section</u> <u>12.3</u> and <u>Section</u> <u>12.4</u>, this Agreement may be adopted, altered, amended or repealed by the Members of the Company only (a) prior to the Trigger Event, by the affirmative vote of holders of not less than 50% in voting power of Outstanding Voting Shares entitled to vote thereon, voting together as a single class, or (b) on and after the Trigger Event by the affirmative vote of holders of not less than 66<sup>2</sup>/<sub>3</sub>% in voting power of Outstanding Voting Shares, voting together as a single class. No amendment hereafter made or adopted, nor any repeal of or amendment thereto, shall invalidate any prior act of the Board of Directors that was valid at the time it was taken.

Section 12.3 **<u>Amendments to be Adopted Solely by the Board of Directors</u>**.<u> </u>Notwithstanding <u>Section</u> <u>12.1</u>, the Board of Directors, without the approval of any Member, may amend any provision of this Agreement, and execute, swear to, acknowledge, deliver, file and record whatever documents may be required in connection therewith, to reflect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a change in the name of the Company, the location of the principal place of business of the Company, the registered agent of the Company or the registered office of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the admission, substitution, withdrawal or removal of Members in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a change that the Board of Directors determines to be necessary or appropriate to qualify or continue the qualification of the Company as a limited liability company under the Laws of any state;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a change that the Board of Directors determines (i) does not adversely affect the Members (including adversely affecting the holders of any particular class or series of Shares as compared to other holders of other classes or series of Shares) in any material respect, (ii) to be necessary or appropriate to satisfy any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or regulation of any federal or state agency or judicial authority or contained in any federal or state statute (including the TBOC), (iii) to be necessary, desirable or appropriate to facilitate the trading of the Shares or comply with any rule, regulation, guideline or requirement of any National Securities Exchange on which Shares are or will be listed for trading, compliance with any of which the Board of Directors deems to be in the best interests of the Company and the Members, (iv) to be necessary or appropriate in connection with action taken by the Board of Directors pursuant to <u>Section</u> <u>3.5</u> or (v) is required to effect the intent expressed in the Registration Statement or the intent of the provisions of this Agreement or is otherwise contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a change in the fiscal year or taxable year of the Company and any other changes that the Board of Directors determines to be necessary or appropriate resulting from a change in the fiscal year or taxable year of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) an amendment that the Board of Directors determines, based on the advice of counsel, to be necessary or appropriate to prevent the Company or its Directors, Officers, trustees or agents from in any manner being subjected to the provisions of the Investment Company Act of 1940, as amended, the Investment Advisers Act of 1940, as amended, or "plan asset" regulations adopted under the Employee Retirement Income Security Act of 1974, as amended, regardless of whether such are substantially similar to plan asset regulations currently applied or proposed by the United States Department of Labor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an amendment that (i) sets forth the designations, rights, preferences, powers and duties of any class or series of Shares or (ii) the Board of Directors determines to be necessary or appropriate in connection with the authorization or issuance of any class or series of Shares pursuant to <u>Section</u> <u>3.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any amendment expressly permitted in this Agreement to be made by the Board of Directors acting alone;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an amendment effected, necessitated or contemplated by a Merger Agreement approved in accordance with <u>Section</u> <u>3.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) an amendment that the Board of Directors determines to be necessary or appropriate to reflect and account for the formation by the Company of, or investment by the Company in, any corporation, partnership, joint venture, limited liability company or other entity, in connection with the conduct by the Company of activities permitted by <u>Section</u> <u>2.6</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a merger, conversion or conveyance pursuant to <u>Section</u> <u>3.3(d)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any other amendments substantially similar to the foregoing.

Section 12.4 **<u>Amendment Requirements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding the provisions of <u>Sections</u> <u>12.1</u> and 12.3 (other than <u>Section</u> <u>12.3(d)</u>), no provision of this Agreement that establishes a percentage of Outstanding Voting Shares required to take any action shall be amended, altered, changed, repealed or rescinded in any respect that would have the effect of reducing such voting percentage unless such amendment is approved by the affirmative vote of holders of Outstanding Voting Shares whose aggregate Outstanding Voting Shares constitute not less than the voting requirement sought to be reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the provisions of <u>Sections</u> <u>12.1</u> and 12.3 (other than <u>Section</u> <u>12.3(d)</u>), no amendment to this Agreement may (i) enlarge the obligations of any Member without its consent, unless such shall occur resulting from an amendment approved pursuant to <u>Section</u> <u>12.4(c)</u>, (ii) change <u>Section</u> <u>11.1(a)</u>, (iii) change the term of the Company or, (iv) except as set forth in <u>Section</u> <u>11.1(a)</u>, give any Person the right to dissolve the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as provided in <u>Section</u> <u>13.3</u>, and without limitation of the Board of Directors' authority to adopt amendments to this Agreement without the approval of any Members as contemplated in <u>Section</u> <u>12.1</u>, any amendment that would have a material adverse effect on the rights or preferences of any class or series of Shares in relation to other classes or series of Shares must be approved by the holders of a majority of the Outstanding Shares of the class or series affected.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) So long as the Sponsors collectively, directly or indirectly, own at least % of the Outstanding Voting Shares, no amendment, modification or waiver of this Agreement, the Certificate of Formation or any other governing documents of the Company may be made that materially and adversely affects any Sponsors without the prior consent of the Sponsors owning at least % of the Outstanding Voting Shares owned by all Sponsors, which consent may be withheld in their discretion.

**ARTICLE XIII** 

**<u>MERGER, CONSOLIDATION OR CONVERSION</u>**

Section 13.1 **<u>Authority</u>**. The Company may merge or consolidate with one or more limited liability companies or other entities as described in Section 10.303 of the TBOC, or convert into any such entity, whether such entity is formed under the Laws of the State of Texas or any other state of the United States of America, pursuant to a written agreement of merger or consolidation ("**<u>Merger Agreement</u>**"), in accordance with this <u>Article</u> <u>XIII</u>.

Section 13.2 **<u>Procedure for Merger, Consolidation or Conversion</u>**. Merger, consolidation or conversion of the Company pursuant to this <u>Article</u> <u>XIII</u> requires the prior approval of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Board of Directors shall determine to consent to the merger or consolidation, the Board of Directors shall approve the Merger Agreement, which shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the names and jurisdictions of formation or organization of each of the business entities proposing to merge or consolidate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the name and jurisdiction of formation or organization of the business entity that is to survive the proposed merger or consolidation (the "**<u>Surviving Business Entity</u>**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the terms and conditions of the proposed merger or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the manner and basis of exchanging or converting the rights or securities of, or interests in, each constituent business entity for, or into, cash, property, rights, or securities of or interests in, the Surviving Business Entity; and if any rights or securities of, or interests in, any constituent business entity are not to be exchanged or converted solely for, or into, cash, property, rights, or securities of or interests in, the Surviving Business Entity, the cash, property, rights, or securities of or interests in, any limited liability company or other business entity which the holders of such rights, securities or interests are to receive, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a statement of any changes in the constituent documents or the adoption of new constituent documents (the certificate of formation or limited liability company agreement, articles or certificate of incorporation, articles of trust, declaration of trust, certificate or agreement of limited partnership or other similar charter or governing document) of the Surviving Business Entity to be effected by such merger or consolidation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the effective time of the merger, which may be the date of the filing of the certificate of merger pursuant to <u>Section</u> <u>13.4</u> or a later date specified in or determinable in accordance with the Merger Agreement (*provided*, *that* if the effective time of the merger is to be later than the date of the filing of the certificate of merger, the effective time shall be fixed no later than the time of the filing of the certificate of merger or the time stated therein); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) such other provisions with respect to the proposed merger or consolidation that the Board of Directors determines to be necessary or appropriate.

Section 13.3 **<u>Approval by Members of Merger, Consolidation or Conversion or Sales of Substantially All of the Company</u><u>'</u><u>s Assets</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as provided in <u>Section</u> <u>13.3(d)</u> and <u>Section</u> <u>13.6</u>, the Board of Directors, upon its approval of the Merger Agreement shall direct that the Merger Agreement be submitted to a vote of Members, whether at an annual meeting or a special meeting, in either case, in accordance with the requirements of <u>Article</u> <u>XII</u>. A copy or a summary of the Merger Agreement shall be included in or enclosed with the notice of meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as provided in <u>Section</u> <u>13.3(d)</u> and <u>Section</u> <u>13.6</u>, the Merger Agreement as applicable, shall be approved upon receiving the affirmative vote or consent of the holders of a Share Majority unless the Merger Agreement contains any provision that, if contained in an amendment to this Agreement, the provisions of this Agreement or the TBOC would require for its approval the vote or consent of a greater percentage of the Outstanding Voting Shares or of any class or series of Members, in which case such greater percentage vote or consent shall be required for approval of the Merger Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as provided in <u>Section</u> <u>13.3(d)</u> and <u>Section</u> <u>13.6</u>, after such approval by vote or consent of the Members, and at any time prior to the filing of the certificate of merger or a certificate of conversion pursuant to <u>Section</u> <u>13.4</u>, the merger, consolidation or conversion may be abandoned pursuant to provisions therefor, if any, set forth in the Merger Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything else contained in this <u>Article</u> <u>XIII</u> or in this Agreement, the Board of Directors is permitted, without Member approval, to convert the Company into a new limited liability entity (including a corporation), or to merge the Company into, or convey all of the Company's assets to, another limited liability entity (including a corporation), which shall be newly formed and shall have no assets, liabilities or operations at the time of such conversion, merger or conveyance other than those it receives from the Company if (i) the sole purpose of such conversion, merger or conveyance is to effect a mere change in the legal form of the Company and (ii) the Board of Directors has determined that the governing instruments of the new entity provide the Members and the Board of Directors with substantially the same rights and obligations as are herein contained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Members are not entitled to dissenters' rights of appraisal in the event of a merger, consolidation or conversion pursuant to this <u>Article</u> <u>XIII</u>, a sale of all or substantially all of the assets of any member of the Company Group, or any other similar transaction or event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Board of Directors may not cause the Company to sell, exchange or otherwise dispose of all or substantially all of its assets, in one transaction or a series of related transactions, or approve on behalf of the Company any such sale, exchange or other disposition, without receiving the affirmative vote or consent of the holders of a Share Majority; *provided*, *however*, that the foregoing will not limit the ability of the Board of Directors to authorize the Company to mortgage, pledge, hypothecate or grant a security interest in all or substantially all of the assets of the Company without the approval of any Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each merger, consolidation or conversion approved pursuant to this <u>Article</u> <u>XIII</u> shall provide that all holders of Class A Shares shall be entitled to receive the same consideration pursuant to such transaction with respect to each of their Class A Shares.

Section 13.4 **<u>Certificate of Merger</u>**. Upon the required approval by the Board of Directors and the Members of a Merger Agreement, a certificate of merger or certificate of conversion, as applicable, shall be executed and filed with the Secretary of State of the State of Texas in conformity with the requirements of the TBOC.

Section 13.5 **<u>Effect of Merger</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the effective time of the certificate of merger:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all of the rights, privileges and powers of each of the business entities that have merged or consolidated, and all property, real, personal and mixed, and all debts due to any of those business entities shall be vested in the Surviving Business Entity and after the merger or consolidation shall be the property of the Surviving Business Entity and all other things and causes of action belonging to each of those business entities, shall be vested in the Surviving Business Entity to the extent they were of each constituent business entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the title to any real property vested by deed or otherwise in any of those constituent business entities shall not revert and is not in any way impaired because of the merger or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all rights of creditors and all liens on or security interests in property of any of those constituent business entities shall be preserved unimpaired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all debts, liabilities and duties of those constituent business entities shall attach to the Surviving Business Entity and may be enforced against it to the same extent as if the debts, liabilities and duties had been incurred or contracted by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is the intent of the parties hereto that a merger or consolidation effected pursuant to this <u>Article</u> <u>XIII</u> shall not be deemed to result in a transfer or assignment of assets or liabilities from one entity to another.

Section 13.6 **<u>Certain Merger Rights</u>**. Notwithstanding any other provision of this Agreement, the Board of Directors, acting unilaterally and without seeking the consent of the Members, shall be entitled to cause the Company to merge with or into another Person in the same manner and in accordance with the same processes and requirements as would be applicable if the Company were a corporation subject to Section 21.459(a) through (c), Section 10.005 and Section 10.006 of the TBOC and the portion of Section 10.006 that would permit a Texas corporation to effect a merger with another entity in the same manner as it would effect a merger with a corporation pursuant to Section 21.459(a) through (c) of the TBOC, including in each case the processes and requirements whereby a corporation may consummate a merger without seeking consent of its stockholders. For purposes of applying this <u>Section</u> <u>13.6</u>, references in the TBOC to stock of a constituent corporation shall be deemed to refer to Shares.

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**ARTICLE XIV** 

**<u>MEMBER MEETINGS</u>**

Section 14.1 **<u>Member Meetings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All acts of Members to be taken hereunder shall be taken in the manner provided in this <u>Article</u> <u>XIV</u>. The provisions of this <u>Article</u> <u>XIV</u> and other related provisions of this Agreement shall be deemed to replace the provisions of Chapter 101, Subchapter H of the TBOC. An annual meeting of the Members for the election of Directors and for the transaction of such other business as may properly come before the meeting shall be held at such time and place as the Board of Directors shall specify in a resolution of the Board of Directors. If authorized by the Board of Directors, and subject to such guidelines and procedures as the Board of Directors may adopt, Members and proxyholders not physically present at a meeting of Members may by means of remote communication participate in such meeting and be deemed present in person and vote at such meeting, *provided* that the Company shall implement reasonable measures to verify that each Person deemed present and permitted to vote at the meeting by means of remote communication is a Member or proxyholder, to provide such Members or proxyholders a reasonable opportunity to participate in the meeting, and to record the votes or other action made by such Members or proxyholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A failure to hold the annual meeting of the Members at the designated time or to elect a sufficient number of Directors to conduct the business of the Company shall not affect otherwise valid acts of the Company or work a forfeiture or dissolution of the Company. If the annual meeting for election of Directors is not held on the date designated therefor, the Directors shall cause the meeting to be held as soon as is convenient. If there is a failure to hold the annual meeting for a period of 30 days after the date designated for the annual meeting, or if no date has been designated, for a period of 13 months after the latest to occur of the date of this Agreement or the Company's last annual meeting, the Business Court in the Eleventh Business Court Division of the State of Texas may summarily order a meeting to be held upon the application of any Member or Director. The Business Court in the Eleventh Business Court Division of the State of Texas may issue such orders as may be appropriate, including orders designating the time and place of such meeting, the record date for determination of Members entitled to vote, and the form of notice of such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All elections of Directors will be by written ballots; if authorized by the Board of Directors, such requirement of a written ballot shall be satisfied by a ballot submitted by electronic transmission, *provided* that any such electronic transmission must either set forth or be submitted with information from which it can be reasonably determined that the electronic transmission was authorized by the Member or proxyholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Special meetings of Members of the Company may be called only by the Board of Directors pursuant to a resolution adopted by the affirmative vote of a majority of the whole Board of Directors; *provided*, *however*, that prior to the Trigger Event, special meetings of the Members may also be called by the Secretary of the Company at the request of the Record

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Holders of a majority of the Outstanding Voting Shares. On and after the Trigger Event, subject to the rights of holders of any class or series of Shares specified in the related Share Designation, the Members shall not have the power to call or request a special meeting of the Members. The Board of Directors or a designee authorized by the Board of Directors may fix the date, time and place, if any, of any special meeting. The Board of Directors or, in the case of a meeting called at the request of the Record Holders of a majority of the Outstanding Voting Shares, the Secretary of the Company at the request of such holders, may adjourn, reschedule, postpone or cancel any special meeting of the Members previously scheduled by or on behalf of the Board of Directors.

Section 14.2 **<u>Notice of Meetings of Members</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notice, stating the place, if any, day and time of any annual or special meeting of the Members, as determined by the Board of Directors, and (i) the means of remote communications, if any, by which Members and proxyholders may be deemed to be present in person and vote at such meeting, (ii) the record date for determining the Members entitled to vote at the meeting, if such date is different from the record date for determining Members entitled to notice of the meeting, (iii) in the case of a special meeting of the Members, the purpose or purposes for which the meeting is called, as determined by the Board of Directors if applicable, or (iv) in the case of an annual meeting, those matters that the Board of Directors, at the time of giving the notice, intends to present for action by the Members, shall be delivered by the Company not less than 10 calendar days nor more than 60 calendar days before the date of the meeting, in a manner and otherwise in accordance with <u>Section</u> <u>15.1</u> to each Record Holder who is entitled to vote at such meeting. Such further notice shall be given as may be required by Texas Law. The notice of any meeting of the Members at which Directors are to be elected shall include the name of any nominee or nominees who, at the time of the notice, the Board of Directors intends to present for election. Only such business shall be conducted at a special meeting of Members as shall have been brought before the meeting pursuant to the Company's notice of meeting. Any previously scheduled meeting of the Members may be adjourned, rescheduled or postponed, and any special meeting of the Members may be adjourned, rescheduled, postponed or canceled, by resolution of the Board of Directors upon public notice given prior to or on the date previously scheduled for such meeting of the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors shall designate the place, if any, of meeting, or means of remote communication, if any, for any annual meeting or for any special meeting of the Members. If no designation is made, the place of meeting shall be the principal office of the Company.

Section 14.3 **<u>Record Date</u>**. For purposes of determining the Members entitled to notice of or to vote at a meeting of the Members, the Board of Directors may set a Record Date, which shall not be less than 10 nor more than 60 days before the date of the meeting (unless such requirement conflicts with any rule, regulation, guideline or requirement of any National Securities Exchange on which the Shares are listed for trading, in which case the rule, regulation, guideline or requirement of such exchange shall govern). If no Record Date is fixed by the Board of Directors, the Record Date for determining Members entitled to notice of or to vote at a meeting of Members shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of Members of record entitled to notice of or to vote at a

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meeting of Members shall apply to any adjournment, rescheduling or postponement of the meeting; *provided*, *however*, that the Board of Directors may fix a new Record Date for the adjourned, rescheduled or postponed meeting, and in such case shall also fix as the Record Date for Members entitled to notice of such adjourned, rescheduled or postponed meeting the same or earlier date as that fixed for determination of Members entitled to vote in accordance herewith at the adjourned, rescheduled or postponed meeting.

Section 14.4 **<u>Adjournment</u>**. When a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting and a new Record Date need not be fixed, if the time and place, if any, and the means of remote communications, if any, by which Members and proxyholders may be deemed to be present in person and vote at such adjourned meeting are (i) announced at the meeting at which the adjournment is taken, (ii) displayed, during the time scheduled for the meeting, on the same electronic network used to enable Members and proxyholders to participate in the meeting by means of remote communication, or (iii) set forth in the notice of meeting given in accordance with <u>Section</u> <u>14.2</u>; unless such adjournment shall be for more than 30 days. At the adjourned meeting, the Company may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 30 days or if a new Record Date is fixed for the adjourned meeting, a notice of the time and place, if any, and the means of remote communication, if any, of the adjourned meeting shall be given in accordance with this <u>Article</u> <u>XIV</u>.

Section 14.5 **<u>Waiver of Notice; Approval of Meeting</u>**. Whenever notice to the Members is required to be given under this Agreement, a written waiver, signed by the Person entitled to notice, or a waiver by electronic transmission by the Person entitled to notice (which shall constitute a waiver duly executed or signed by such Person), whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a Person at any such meeting of the Members shall constitute a waiver of notice of such meeting, except when the Person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Members need be specified in any written waiver of notice unless so required by resolution of the Board of Directors. All waivers and approvals shall be filed with the Company records or made part of the minutes of the meeting.

Section 14.6 **<u>Quorum; Required Vote for Member Action; Voting for Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At any meeting of the Members, the holders of a majority of the Outstanding Voting Shares entitled to vote at the meeting, represented in person or by proxy, shall constitute a quorum for such meeting, notwithstanding any provision of this Agreement to the contrary; *provided*, *however*, that where a separate vote by a class or series or classes or series is required, a majority of the voting power of the class or classes or series entitled to vote on such matter, represented in person or by proxy, shall constitute a quorum of such class or classes or series with respect to such matter. The submission of matters to Members for approval and the election of Directors shall occur only at a meeting of the Members duly called and held in accordance with this Agreement at which a quorum is present; *provided*, *however*, that the Members present at a duly called or held meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough Members to leave less than a quorum, if any action taken (other than adjournment) is approved by the required percentage of Outstanding Voting Shares specified in this Agreement. Any meeting of Members may be adjourned or recessed from time to time for any reason by the chairman of the meeting to another place or time, without regard to the presence of a quorum.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Directors will be elected by a plurality of the votes of Outstanding Voting Shares present in person or represented by proxy and entitled to vote on the election of Directors at any annual or special meeting of Members. Cumulative voting for the election of Directors is prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All matters (other than the election of Directors and non-binding advisory votes described below) submitted to Members for approval shall be determined by a majority of the votes cast affirmatively or negatively by Members holding Outstanding Voting Shares unless a greater percentage is required with respect to such matter under the TBOC, under the rules of any National Securities Exchange on which the Shares are listed for trading, or under the provisions of this Agreement, in which case the approval of Members holding Outstanding Voting Shares that in the aggregate represent at least such greater percentage shall be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In non-binding advisory matters with more than two possible vote choices, the affirmative vote of a plurality of the Outstanding Voting Shares present in person or represented by proxy at the meeting and entitled to vote on the matter shall be the recommendation of the Members.

Section 14.7 **<u>Conduct of a Meeting; Member Lists</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors shall have full power and authority concerning the manner of conducting any meeting of the Members, including the determination of Persons entitled to vote, the existence of a quorum, the satisfaction of the requirements of this <u>Article</u> <u>XIV</u>, the conduct of voting, the validity and effect of any proxies and the determination of any controversies, votes or challenges arising in connection with or during the meeting or voting. The Board of Directors may make such other rules and regulations consistent with applicable Law and this Agreement as it may deem advisable concerning the conduct of any meeting of the Members, including regulations in regard to the appointment of proxies, the appointment and duties of inspectors of votes, the submission and examination of proxies and other evidence of the right to vote. Except to the extent inconsistent with the rules and regulations adopted by the Board of Directors, the chairman of the meeting shall have the right and authority to convene and recess and/or adjourn (whether or not a quorum is present and for any reason or no reason) the meeting, to prescribe such rules, regulations, and procedures, and to do all such acts as, in the judgment of the chairman of the meeting, are appropriate for proper conduct of the meeting and safety of those in attendance. All minutes shall be kept with the records of the Company maintained by the Board of Directors. Such rules, regulations, or procedures, whether adopted by the Board of Directors or prescribed by the chairman of the meeting, may include (i) the establishment of an agenda or order of business for the meeting; (ii) regulating the opening and closing of the polls for balloting and matters that are to be voted on by ballot; (iii) rules and procedures for maintaining order at the meeting and the safety of those present; (iv) limitations on attendance at or participation in the meeting to Members entitled to vote at the meeting, their duly authorized and constituted proxies or such other Persons as the chairman of the meeting shall determine; (v) restrictions on entry to

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the meeting after the time fixed for the commencement thereof; (vi) limitations on the time allotted to questions or comments by participants; and (vii) restrictions on the use of any photographic or audio or video recording devices (including cellular phones) at the meeting. Unless and to the extent determined by the Board of Directors or the chairman of the meeting, meetings of Members are not required to be held in accordance with the rules of parliamentary procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No later than the tenth day before each meeting of Members, a complete list of Members entitled to vote at any meeting of Members, arranged in alphabetical order for each class or series of Shares, shall be open to the examination of any Member, for any purpose germane to the meeting, (i) on a reasonably accessible electronic network, *provided* that the information required to gain access to such list is provided with the notice of the meeting or (ii) during ordinary business hours at the principal place of business of the Company. In the event that the Company determines to make the list available on an electronic network, the Company shall take reasonable steps to ensure that such information is available only to Members of the Company.

Section 14.8 **<u>Action Without a Meeting</u>**. Prior to the Trigger Event, subject to the rights of holders of any class or series of Shares specified in the related Share Designation with respect to such class or series of Shares, on any matter that is to be voted on, consented to or approved by Members, the Members may take such action without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, shall be signed by the Members having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all Members entitled to vote thereon were present and voted. On and after the Trigger Event, subject to the rights of holders of any class or series of Shares specified in the related Share Designation with respect to such class or series of Shares, any action required or permitted to be taken by the Members of the Company must be taken at a duly held annual or special meeting of Members and may not be taken by any consent in writing of such Members. In order that the Company may determine the Members entitled to express consent to an action in writing without a meeting prior to the Trigger Event, the Board of Directors may fix a Record Date, which shall not be more than ten days after the date upon which the resolution fixing the Record Date is adopted by the Board of Directors. If no Record Date for determining Members entitled to express consent to Company action in writing without a meeting is fixed by the Board of Directors, (a) when no prior action of the Board of Directors is required by applicable Law or this Agreement, the Record Date for such purpose shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Company in accordance with applicable Law, and (b) if prior action by the Board of Directors is required by applicable Law or this Agreement, the Record Date for such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution taking such prior action.

Section 14.9 **<u>Voting and Other Rights</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Only those Record Holders of Outstanding Voting Shares on the Record Date set pursuant to <u>Section</u> <u>14.3</u> shall be entitled to notice of, and to vote at, a meeting of Members or to act with respect to matters as to which the holders of the Outstanding Voting Shares have the right to vote or to act. All references in this Agreement to votes of, or other acts that may be taken by, the Outstanding Voting Shares shall be deemed to be references to the votes or acts of the Record Holders of such Outstanding Voting Shares on such Record Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to Outstanding Voting Shares that are held for a Person's account by another Person (such as a broker, dealer, bank, trust company or clearing corporation, or an agent of any of the foregoing), in whose name such Outstanding Voting Shares are registered, such other Person shall, in exercising the voting rights in respect of such Outstanding Voting Shares on any matter, and unless the arrangement between such Persons provides otherwise, vote such Outstanding Voting Shares in favor of, and at the direction of, the Person who is the beneficial owner, and the Company shall be entitled to assume it is so acting without further inquiry.

Section 14.10 **<u>Proxies and Voting</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On any matter that is to be voted on by Members, the Members may vote in person or by proxy, and such proxy may be granted in writing, by means of electronic transmission or as otherwise permitted by applicable Law. Any such proxy shall be filed in accordance with the procedure established for the meeting. For purposes of this Agreement, the term "electronic transmission" means any form of communication not directly involving the physical transmission of paper that creates a record that may be retained, retrieved and reviewed by a recipient thereof and that may be directly reproduced in paper form by such a recipient through an automated process. Any copy, facsimile telecommunication or other reliable reproduction of the writing or transmission created pursuant to this paragraph may be substituted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used, *provided* that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may, and to the extent required by Law, shall, in advance of any meeting of Members, appoint one or more inspectors to act at the meeting and make a written report thereof, which inspector or inspectors may include individuals who serve the Company in other capacities, including as Officers, employees, agents or representatives. Inspectors need not be Members. The Company may designate one or more alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is able to act at a meeting of Members, the Person presiding at the meeting may, and to the extent required by Law, shall, appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge of his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. Every vote taken by ballots shall be counted by a duly appointed inspector or inspectors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to the use of proxies at any meeting of Members, the Company shall be governed by Sections 21.367 through 21.371 of the TBOC and other applicable provisions of the TBOC, as though the Company were a Texas corporation and as though the Members were stockholders of a Texas corporation.

Section 14.11 **<u>Notice of Member Business and Nominations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Annual Meetings of Members.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nominations of Persons for election to the Board of Directors and the proposal of other business to be considered by the Members at an annual meeting of Members may be made only (A) pursuant to the Company's notice of meeting (or any supplement thereto), (B) by or at the direction of the Board of Directors or any committee thereof authorized to do so, (C) by any Member of the Company who (1) was a Member of record at the time of giving of notice provided for in this <u>Section</u> <u>14.11</u> and at the time of the annual meeting, (2) is entitled to vote at the meeting, (3) complies with the notice procedures and other requirements set forth in this Agreement and applicable Law and (4) satisfies the requirements of <u>Section</u> <u>14.11(i)</u>, or (D) pursuant to the terms of a Shareholder's Agreement.

In addition, if the proposal is made on behalf of a beneficial owner other than the Member of record, such beneficial owner must be the beneficial owner of Shares of the Company both at the time of giving of notice provided for in this <u>Section</u> <u>14.11</u> and at the time of the annual meeting. <u>Section</u> <u>14.11(a)(ii)(C)</u> of this Agreement shall be the exclusive means for a Member to make nominations or submit other business (other than business brought properly under and in compliance with Rule 14a-8 of the Exchange Act, as may be amended from time to time) before an annual meeting of the Members, except as otherwise provided in Section 14.11<u>(a)(ii)(D)</u>. Nothing in this <u>Section</u> <u>14.11</u> shall be deemed to affect any rights of Members to request inclusion of proposals or nominations in the Company's proxy statement or proxy card pursuant to mandatory provisions of the Exchange Act and the rules and regulations thereunder, subject, in each case, to compliance with those provisions of this Agreement that are permitted under such mandatory provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For any nominations or any other business to be properly brought before an annual meeting by a Member, other than any of the Sponsors, pursuant to <u>Section</u> <u>14.11(a)(ii)(C)</u> of this Agreement, (A) the Member must have given timely notice thereof in writing to the Secretary of the Company and such notice must be in proper form, as required by this Agreement, (B) in the case of business other than nominations, such other business must otherwise be a matter that would be proper for action by the Members pursuant to this Agreement, and (C) the record Member and the beneficial owner, if any, on whose behalf any such proposal or nomination is made, must have acted in accordance with the representations set forth in the Solicitation Statement required by this Agreement. To be timely, a Member's notice, other than from any of the Sponsors, must be received by the Secretary of the Company at the principal executive offices of the Company not earlier than the close of business on the 120th day and not later than the close of business on the 90th day prior to the first anniversary of the Public Announcement for the immediately preceding annual meeting (which anniversary, in the case of the first annual meeting of Members following the close of the IPO, shall be deemed to be); *provided*, *however*, that subject to the following sentence, if the date of the annual meeting (other than the first annual meeting of Members following the close of the IPO) is scheduled for a date that has changed by more than 30 days before or after such anniversary date, or if no annual meeting was held in the prior year (other than the first annual meeting of Members following the close of the IPO), notice by the Member to be timely must be so received not earlier than the close of business on the 120th day and not later than the close of business on the later of the 90th day prior to such annual meeting or, if the first Public Announcement of the date of such annual meeting is less than 90 days prior to the date of such annual meeting, the 10th day following the day on which Public Announcement of the date of such meeting is first made by the Company. In no event shall any adjournment, rescheduling or postponement of an annual meeting or the announcement thereof commence a new time period for the giving of a Member's notice as described above. To be in proper form, a Member's notice, other than any of the Sponsors, (whether given pursuant to this <u>Section</u> <u>14.11(a)</u> or <u>Section</u> <u>14.11(b)</u>) to the Secretary of the Company must:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) set forth, as to the Member giving the notice and the beneficial owner, if any, on whose behalf the nomination or business is proposed (1) the name and address of such Member, as they appear on the Company's books, and of such Member's Member Associated Person (as defined in <u>Section</u> <u>14.11(d)</u>), if any, (2) (A) the class or series and number of Shares that are, directly or indirectly, owned beneficially and of record by such Member and any Member Associated Person, (B) any option, warrant, convertible security, Share appreciation right, or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of Shares or with a value derived in whole or in part from the value of any class or series of Shares, whether or not such instrument or right shall be subject to settlement in the underlying class or series of Shares or otherwise (a "**<u>Derivative Instrument</u>**"), directly or indirectly owned beneficially by such Member or by any Member Associated Person and any other direct or indirect opportunity to profit or share in any profit derived from any increase or decrease in the value of Shares held by such Member or any Member Associated Person, (C) a complete and accurate description of any agreement, arrangement or understanding between or among such Member and such Member's Member Associated Person and any other person or persons in connection with such Member's director nomination and the name and address of any other person(s) or entity or entities known to the Member to support such nomination, (D) a description of any proxy, contract, arrangement, understanding or relationship pursuant to which such Member or any Member Associated Person has a right to vote, directly or indirectly, any Shares, (E) any short interest in any security of the Company held by such Member or any Member Associated Person (for purposes of this Agreement, a Person shall be deemed to have a "short interest" in a security if such Person directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has the opportunity to profit or share in any profit derived from any decrease in the value of the subject security), (F) any rights to Dividends on the Shares owned beneficially by such Member or by any Member Associated Person that are separated or separable from the underlying Shares, (G) any proportionate interest in Shares or Derivative Instruments held, directly or indirectly, by a general or limited partnership in which such Member or any Member Associated Person is a general partner or, directly or indirectly, beneficially owns an interest in a general partner, and (H) any performance-related fees (other than an asset-based fee) that such Member or any Member Associated Person is entitled to based on any increase or decrease in the value of Shares or Derivative Instruments, if any, as of the date of such notice, including any such interests held by members of such Member's or any Member Associated Person's immediate family sharing the same household (which information shall be supplemented by such Member and any Member Associated Person, if any, not later than ten days after the Record Date for determining the Members entitled to vote at the meeting to disclose such ownership as of the Record Date; *provided*, *that* if such date is after the date of the meeting, not later than the day prior to the meeting), (3) any other information relating to such Member and any Member Associated Person, if any, that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies for, as applicable, the proposal or for the election of directors in a contested election pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder, (4) a representation that the Member is a holder of record of Shares entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to bring such nomination or other business before the meeting, and (5) a representation as to whether or not such Member or any Member Associated Person

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intends or is part of a group that intends to deliver a proxy statement or form of proxy to holders of at least the percentage of the voting power of the Company's Outstanding Shares required to approve or adopt the proposal or, in the case of a nomination or nominations, at least the percentage of the voting power of the Company's Outstanding Shares reasonably believed by the Member or Member Associated Person, as the case may be, to be sufficient to elect such nominee or nominees (such representation, a "**<u>Solicitation Statement</u>**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if the notice relates to any business other than a nomination of a director or directors that the Member proposes to bring before the meeting, set forth (1) a brief description of the business desired to be brought before the meeting, (2) the exact text of the proposal or business (including the text of any resolution proposed for consideration and in the event that such business includes a proposal to amend this Agreement, the language of the proposed amendment), and the reasons for conducting such business at the meeting, (3) any substantial interest (within the meaning of Item 5 of Schedule 14A under the Exchange Act) of such Member and Member Associated Person, if any, in such business, and (4) a complete and accurate description of all agreements, arrangements and understandings between or among such Member and such Member Associated Person, if any, and any other Person or Persons or entity or entities (including their names and addresses) in connection with the proposal of such business by such Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) set forth, as to each Person, if any, whom the Member proposes to nominate for election or reelection to the Board of Directors (1) all information relating to such Person that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies for election of directors in a contested election pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder (including such Person's written consent to being named in the proxy statement as a nominee and to serving as a director, if elected, for the full term for which such Person is standing for election), (2) a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three years, and any other material relationships, between or among such Member and Member Associated Person, if any, and their respective Affiliates and associates, or others acting in concert therewith, on the one hand, and each proposed nominee, and his or her respective Affiliates and associates, or others acting in concert therewith, on the other hand, including all information that would be required to be disclosed pursuant to Rule 404 promulgated under Regulation S-K if the Member making the nomination and any beneficial owner on whose behalf the nomination is made, if any, or any Affiliate or associate thereof or Person acting in concert therewith, were the "registrant" for purposes of such rule and the nominee were a director or executive officer of such registrant, and (3) a representation that such Person intends to serve a full term, if elected as a director; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) with respect to each nominee for election or reelection to the Board of Directors, include (1) a completed and signed questionnaire, representation and agreement in a form provided by the Company, which form the Member must request from the Secretary of the Company in writing with no less than 7 days advance notice and (2) a written representation and agreement (in the form provided by the Secretary of the Company upon written request) that such Person (A) is not and will not become a party to (1) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any Person as to how such Person, if elected as a director of the Company, will act or vote on any issue or question (a

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"**<u>Voting Commitment</u>**") that has not been disclosed to the Company or (2) any Voting Commitment that could limit or interfere with such Person's ability to comply, if elected as a director of the Company, with such Person's fiduciary duties under applicable Law, (B) is not and will not become a party to any agreement, arrangement or understanding with any Person other than the Company with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed therein, and (C) in such person's individual capacity and on behalf of any Person on whose behalf the nomination is being made, would be in compliance, if elected as director of the Company, and will comply with all applicable governance, conflict of interest, confidentiality and Share ownership and trading policies and guidelines of the Company. The Company may require any proposed nominee to furnish such other information as may reasonably be required by the Company to determine the eligibility of such proposed nominee to serve as a director of the Company, including information that could be relevant to a determination of whether such Person can be considered an Independent Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A Member, other than any of the Sponsors, providing notice of a nomination or proposal of other business to be brought before a meeting shall further update and supplement such notice, if necessary, so that the information provided or required to be provided in such notice shall be true and correct (A) as of the Record Date for the meeting and (B) as of the date that is ten Business Days prior to the meeting or any adjournment, rescheduling or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary of the Company at the principal executive offices of the Company not later than five Business Days after the Record Date for the meeting (in the case of the update and supplement required to be made as of the Record Date) and not later than seven Business Days prior to the date for the meeting or any adjournment, rescheduling or postponement thereof, if practicable (or, if not practicable, on the first practicable date prior to any adjournment, rescheduling or postponement thereof (in the case of the update and supplement required to be made as of ten Business Days prior to the meeting or any adjournment, rescheduling or postponement thereof)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Special Meeting of Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On and after the Trigger Event, only such business shall be conducted at a special meeting of Members as shall have been brought before the meeting by or at the direction of the Board of Directors. Nominations of Persons for election to the Board of Directors may be made at a special meeting of Members at which directors are to be elected pursuant to a notice of meeting (A) by or at the direction of the Board of Directors or any committee thereof (or the Members pursuant to <u>Section</u> <u>14.2</u> of this Agreement prior to the Trigger Event) or (B) if the Board of Directors (or the Members pursuant to <u>Section</u> <u>14.2</u> of this Agreement prior to the Trigger Event) has determined that directors shall be elected at such meeting, and subject to the terms of the Shareholder's Agreements, by any Member of the Company who (1) is a Member of record at the time of giving of notice provided for in this Agreement and at the time of the special meeting, (2) is entitled to vote at the meeting, and (3) complies with the notice procedures set forth in this Agreement and applicable Law. In addition, if the nomination is made on behalf of a beneficial owner other than the Member of record, such beneficial owner must be the beneficial owner of Shares of the Company both at the time of giving of notice provided for in this <u>Section</u> <u>14.11</u> and at the time of the special meeting. If a special meeting of Members is called

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for the purpose of electing one or more directors to the Board of Directors, any such Member may nominate a Person or Persons (as the case may be), for election to such position(s) as specified in the Company's notice of meeting, if the Member, other than any Sponsors, delivers notice with the information required by <u>Section</u> <u>14.11(a)(ii)</u> (with the updates required by <u>Section</u> <u>14.11(a)(iii)</u> of this Agreement with respect to any nomination (including the completed and signed questionnaire, representation and agreement required by Section 14.11<u>(a)(ii)(D)</u> of this Agreement)). Such notice shall be delivered to the Secretary of the Company at the principal executive offices of the Company not earlier than the close of business on the 120th day prior to such special meeting and not later than the close of business on the later of the 90th day prior to such special meeting or the 10th day following the day on which Public Announcement is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. In no event shall any adjournment, rescheduling or postponement or the announcement thereof of a special meeting commence a new time period for the giving of a Member's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the terms of the Shareholder's Agreements and except as otherwise required by applicable Law or regulation promulgated under the Exchange Act, and except for director nominees and business proposed by the Board of Directors, only such Persons who are nominated in accordance with the procedures set forth in this Agreement shall be eligible to serve as directors, and only such business shall be conducted at a meeting of Members as shall have been brought before the meeting in accordance with the procedures set forth in this Agreement. Any Member or beneficial owner, if any, or Member Associated Person, directly or indirectly soliciting proxies for the election of directors must use a proxy card color other than white, which shall be reserved for exclusive use by the Company. Except as otherwise provided by applicable Law or this Agreement, the chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in this Agreement and applicable Law and, if any proposed nomination or business is not in compliance with this Agreement and applicable Law, to declare that such defective proposal or nomination shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Agreement, "**<u>close of business</u>**" shall mean 6:00 p.m. local time at the principal executive offices of the Company on any calendar day, whether or not the day is a Business Day, "**<u>Public Announcement</u>**" shall mean disclosure in a press release reported by Dow Jones News Service, the Associated Press, or any other national news service or in a document publicly filed or furnished by the Company with the Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder, and "**<u>Member Associated Person</u>**" shall mean, for any Member, (i) any Person controlling, directly or indirectly, or acting in concert with, such Member, (ii) any beneficial owner of Shares owned of record or beneficially by such Member or any Person controlling, controlled by or under common control with any Person referred to in the preceding <u>clauses</u> <u>(</u><u>i</u><u>)</u> or (<u>ii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If a Member or beneficial owner, if any, or any Member Associated Person, intends to solicit proxies in support of any director nominee other than the Company's nominees, such Person shall, in addition to the requirements of this <u>Section</u> <u>14.11</u>: (i) deliver to the Company, no later than the earlier of the time provided in this <u>Section</u> <u>14.11</u> or the time provided in Rule 14a-19 of the Exchange Act, the notice and other information required in Rule 14a-19 of the

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Exchange Act; and (ii) deliver to the Company, no later than five Business Days prior to the applicable meeting of Members, reasonable evidence that it (including any others acting in concert with it) has met the requirements of Rule 14a-19 of the Exchange Act with respect to such nominees. Unless otherwise required by Law, if any Member (A) provides notice pursuant to Rule 14a-19(b) of the Exchange Act and (B) subsequently fails to comply with any requirement of Rule 14a-19 of the Exchange Act or any other rules or regulations thereunder or fails timely to provide the evidence described in the preceding <u>clause</u> <u>(ii)</u>, then the Company shall disregard any proxies or votes solicited for such nominees, and such nominations shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In addition to the foregoing provisions of this Agreement, a Member shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Agreement; *provided*, *however*, that any references in this Agreement to the Exchange Act or the rules promulgated thereunder are not intended to and shall not limit the requirements applicable to nominations or proposals as to any other business to be considered pursuant to <u>Section</u> <u>14.11(a)</u> or <u>Section</u> <u>14.11(b)</u> of this Agreement. Nothing in this Agreement shall be deemed to affect any rights (i) of Members to request inclusion of proposals in the Company's proxy statement pursuant to Rule 14a-8 under the Exchange Act, subject to <u>Section</u> <u>14.11(</u><u>i</u><u>)</u> or (ii) of the holders of any class or series of Shares specified in the related Share Designation if and to the extent provided for under applicable Law or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Unless otherwise required by Law, if the Member (or a qualified representative of the Member) making a nomination or proposal under this <u>Section</u> <u>14.11</u> does not appear at the applicable meeting of Members to present such nomination or proposal, the nomination shall be disregarded and the proposed business shall not be transacted, as the case may be, notwithstanding that proxies in favor thereof may have been received by the Company. For purposes of this <u>Section</u> <u>14.11</u>, to be considered a qualified representative of the Member, a Person must be a duly authorized officer, manager or partner of such Member or must be authorized by a writing executed by such Member or an electronic transmission delivered by such Member to act for such Member as proxy at the meeting of Members and such Person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For any nominations or any other business to be properly brought before an annual or special meeting by any Shareholder, such Shareholder shall submit a reasonably detailed notice thereof to the Company not later than the later of the close of business on the 30th day prior to the date the Company first files its preliminary or definitive proxy statement related to such meeting pursuant to the Exchange Act or the tenth day following the day on which public announcement is first made of the date of the special meeting, and such Shareholder and the Company shall cooperate reasonably and in Good Faith with respect to the inclusion of such matters to be considered at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding the other provisions of this <u>Article</u> <u>XIV</u>, no Member or beneficial owner of Shares, or group of Members or beneficial owners of Shares, may submit a matter for consideration at an annual or special meeting of the Members, other than director nominations and procedural resolutions that are ancillary to the conduct of the meeting, unless such Member, beneficial owner or group (i) holds a number of Common Shares, determined as of

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the date of submission of the proposal, equal to at least (A) $1 million in market value or (B) 3% of the outstanding Common Shares, (ii) held such number of Common Shares for a continuous period of at least six months before the date of the meeting, (iii) holds such Common Shares throughout the entire duration of the meeting and (iv) solicits the beneficial owners of Class A Shares representing at least 67% of Class A Shares entitled to vote on the proposal.

**ARTICLE XV** 

**<u>GENERAL PROVISIONS</u>**

Section 15.1 **<u>Addresses and Notices</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any notice, demand, request, report or proxy materials required or permitted to be given or made to a Member under this Agreement shall be in writing and shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written communication to the Member at the address described below. Any notice, payment or report to be given or made to a Member hereunder shall be deemed conclusively to have been given or made, and the obligation to give such notice or report or to make such payment shall be deemed conclusively to have been fully satisfied, upon sending of such notice, payment or report to the Record Holder of such Shares at his address as shown on the records of the Transfer Agent or as otherwise shown on the records of the Company, regardless of any claim of any Person who may have an interest in such Shares by reason of any assignment or otherwise. Notwithstanding the foregoing, if (i) a Member shall consent to receiving notices, demands, requests, reports or proxy materials via electronic mail or by the Internet or (ii) the rules of the Commission shall permit any report or proxy materials to be delivered electronically or made available via the Internet, any such notice, demand, request, report or proxy materials shall be deemed given or made when delivered or made available via such mode of delivery. An affidavit or certificate of making of any notice, payment or report in accordance with the provisions of this <u>Section</u> <u>15.1</u> executed by the Company, the Transfer Agent or the mailing organization shall be prima facie evidence of the giving or making of such notice, payment or report. If any notice, payment or report given or made in accordance with the provisions of this <u>Section</u> <u>15.1</u> is returned marked to indicate that such notice, payment or report was unable to be delivered, such notice, payment or report and, in the case of notices, payments or reports returned by the United States Postal Service (or other physical mail delivery service outside the United States of America) and any subsequent notices, payments and reports shall be deemed to have been duly given or made without further mailing (until such time as such Record Holder or another Person notifies the Transfer Agent or the Company of a change in his address) or other delivery if they are available for the Member at the principal office of the Company for a period of one year from the date of the giving or making of such notice, payment or report to the other Members. Delivery of one copy of any notice, demand, request, report or proxy materials to all Record Holders having the same address shall constitute sufficient notice to all such Members under this Agreement if such method of delivery would be permitted by the TBOC to stockholders of a Texas corporation and if permitted by the rules of the Commission. Written notice from any Record Holder to the Company shall, unless otherwise required by Law, be given by hand or registered U.S. mail, postage prepaid, return receipt requested, or courier services, charges prepaid to, and received by, the Secretary of the Company at the principal executive offices of the Company. Any notice to the Company shall be deemed given if received by the Secretary at the principal office of the Company designated pursuant to <u>Section</u> <u>2.4</u>. The Board of Directors and the Officers may rely and shall be protected in relying on any notice or other document from a Member or other Person if believed by it to be genuine.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The terms "in writing," "written communications," "written notice" and words of similar import shall be deemed satisfied under this Agreement by use of e-mail and other forms of electronic communication.

Section 15.2 **<u>Further Action</u>**. The parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement.

Section 15.3 **<u>Binding Effect</u>**. All of the terms and provisions of this Agreement shall be binding upon the parties and their respective successors and assigns, but shall inure to the benefit of and be enforceable by the successors and assigns of any Member only to the extent that they are permitted successors and assigns pursuant to the terms hereof. No party may assign its rights hereunder except as herein expressly permitted.

Section 15.4 **<u>Integration</u>**. This Agreement and the Shareholder's Agreements constitute the entire agreement among the parties hereto pertaining to the subject matter hereof and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the parties in connection with the subject matter hereof except as specifically set forth herein and therein. This Agreement is subject to the terms and provisions of the Shareholder's Agreements in its entirety.

Section 15.5 **<u>Creditors</u>**. None of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Company.

Section 15.6 **<u>Waiver</u>**. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach of any other covenant, duty, agreement or condition.

Section 15.7 **<u>Third-Party Beneficiaries</u>**. Each Member agrees that any Indemnified Person shall be entitled to assert rights and remedies hereunder as a third-party beneficiary hereto with respect to those provisions of this Agreement affording a right, benefit or privilege to such Indemnified Person. Subject to the immediately preceding sentence, nothing in this Agreement, whether express or implied, shall be construed to give any Person, other than the parties hereto or their respective successors and permitted assigns, any legal or equitable right, remedy, claim or benefit under or in respect of this Agreement.

Section 15.8 **<u>Rights of Members Independent</u>**. The rights available to the Members under this Agreement and at Law shall be deemed to be several and not dependent on each other and each such right accordingly shall be construed as complete in itself and not by reference to any other such right. Any one or more and/or any combination of such rights may be exercised by a Member and/or the Company from time to time and no such exercise shall exhaust the rights or preclude another Member from exercising any one or more of such rights or combination thereof from time to time thereafter or simultaneously.

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Section 15.9 **<u>Counterparts</u>**. This Agreement may be executed in counterparts, all of which together shall constitute an agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Agreement immediately upon affixing its signature hereto or, in the case of a Person acquiring a Share pursuant to <u>Section</u> <u>3.3</u> without execution hereof.

Section 15.10 **<u>Applicable Law</u><u>; Jurisdiction; Waiver of Jury Trial</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by and construed according to the Laws of the State of Texas without regard to principles of conflicts of Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the Company consents in writing to the selection of an alternative forum, the Business Court in the Eleventh Business Court Division of the State of Texas (or, if the Business Court in the Eleventh Business Court Division of the State of Texas lacks jurisdiction, the United States District Court for the Southern District of Texas, or, if the United States District Court for the Southern District of Texas lacks jurisdiction, the district courts of Harris County, Texas, in each case, subject to that court having personal jurisdiction over the indispensable parties named defendants therein) shall, to the fullest extent permitted by applicable Law, be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, Officer, employee, Member or agent of the Company to the Company or the Company's Members, (iii) any action asserting a claim against the Company or any director or Officer, Member or other employee of the Company arising pursuant to any provision of the TBOC or this Agreement, or (iv) any action asserting a claim against the Company or any director or Officer, Member or other employee of the Company for any other internal entity claims (as defined in Section 2.115 of the TBOC). Unless the Company consents in writing to the selection of an alternative forum, the United States District Court for the Southern District of Texas shall be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. Any Person purchasing or otherwise acquiring any interest in Shares of the Company shall be deemed to have notice of and consented to the provisions of this <u>Section</u> <u>15.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the fullest extent permitted by Law, if any action the subject matter of which is within the scope of <u>Section</u> <u>15.10(a)</u> is filed in a court other than a court located within the State of Texas (a "**<u>Foreign Action</u>**") in the name of any Member, such Member shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of Texas in connection with any action brought in any such court to enforce <u>Section</u> <u>15.10(a)</u> (an "**<u>FSC Enforcement Action</u>**") and (ii) having service of process made upon such Member in any such FSC Enforcement Action by service upon such Member's counsel in the Foreign Action as agent for such Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Member shall have, and each Member hereby waives, any right to trial by jury in any action, proceeding or counterclaim concerning an internal entity claim (as defined in Section 11.05 of the TBOC). Each Member shall be deemed to have notice of and to have consented to the provisions of this <u>Section</u> <u>15.10(e)</u>.

Section 15.11 **<u>Derivative Proceedings</u>**. In addition to the requirements of Section 101.452 of the TBOC, in order to institute a derivative proceeding, a Member must beneficially own a number of Shares of the Company equaling greater than 2.5% of the outstanding Shares of the Company. The provisions of Chapter 101, Subchapter J of the TBOC, other than Section 101.463 of the TBOC, which shall not apply, shall otherwise apply in connection with a derivative proceeding.

Section 15.12 **<u>Invalidity of Provisions</u>**. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby and this Agreement shall, to the fullest extent permitted by Law, be reformed and construed as if such invalid, illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provisions or part reformed so that it would be valid, legal and enforceable to the maximum extent possible.

Section 15.13 **<u>Consent of Members</u>**. Each Member hereby expressly consents and agrees that, whenever in this Agreement it is specified that an action may be taken upon the affirmative vote or consent of less than all of the Members, such action may be so taken upon the concurrence of less than all of the Members and each Member shall be bound by the results of such action.

Section 15.14 **<u>Expenses</u>**. Except as otherwise provided in this Agreement, each party shall bear its own expenses in connection with the transactions contemplated by this Agreement.

Section 15.15 **<u>Facsimile Signatures</u>**. The use of facsimile signatures affixed in the name and on behalf of the Transfer Agent and registrar of the Company on certificates representing Shares is expressly permitted by this Agreement.

**[Remainder of page intentionally left blank.]** 

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IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

*Signature Page to the Second Amended and Restated* 

*Company Agreement of EagleRock Land, LLC*

## Exhibit 4.1

**Exhibit 4.1** 

**REGISTRATION RIGHTS AGREEMENT** 

This Registration Rights Agreement (this "**<u>Agreement</u>**") is made and entered into as of , 2026, by and among EagleRock Land, LLC, a Texas limited liability company (the "**<u>Company</u>**"), and each of the other parties listed on the signature pages hereto (the "**<u>Initial Holders</u>**" and, together with the Company, the "**<u>Parties</u>**").

WHEREAS, in connection with, and in consideration of, the transactions contemplated by the Company's Registration Statement on Form S-1 (File No. 333-) filed by the Company in connection with its initial public offering (the "**<u>Initial Public Offering</u>**", and such Registration Statement, the "**<u>IPO Registration Statement</u>**") and declared effective by the Securities and Exchange Commission (the "**<u>Commission</u>**"), the Initial Holders have requested, and the Company has agreed to provide, registration rights with respect to the Registrable Securities (as hereinafter defined) as set forth in this Agreement.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each party hereto, the Parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. As used in this Agreement, the following terms have the meanings indicated:

"**<u>Affiliate</u>**" of any specified Person means any other person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such specified Person. For purposes of this definition, "control" of a Person means the power, direct or indirect, to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. For the avoidance of doubt, for purposes of this Agreement, the Holders shall not be considered Affiliates of the Company.

"**<u>Agreement</u>**" has the meaning set forth in the preamble.

"**<u>Automatic Shelf Registration Statement</u>**" means an "automatic shelf registration statement" as defined under Rule 405.

"**<u>Blackout Period</u>**" has the meaning set forth in <u>Section</u> <u>3(o)</u>.

"**<u>Board</u>**" means the board of directors of the Company.

"**<u>Business Day</u>**" means any day other than a Saturday, Sunday, any federal holiday or any other day on which banking institutions in the State of Texas or the State of New York are authorized or required to be closed by law or governmental action.

"**<u>Class</u> <u>A</u> <u>Shares</u>**" means the Class A shares representing limited liability company interests in the Company.

"**<u>Class</u> <u>B Shares</u>**" means the Class B shares representing limited liability company interests in the Company.

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"**<u>Commission</u>**" has the meaning set forth in the preamble.

"**<u>Common Shares</u>**" means the Class A Shares and the Class B Shares.

"**<u>Company</u>**" has the meaning set forth in the preamble.

"**<u>Company Securities</u>**" means any equity interest of any class or series in the Company.

"**<u>Demand Notice</u>**" has the meaning set forth in <u>Section</u> <u>2(a)(</u><u>i</u><u>)</u>.

"**<u>Demand Registration</u>**" has the meaning set forth in <u>Section</u> <u>2(a)(</u><u>i</u><u>)</u>.

"**<u>DE IV Midco Holders</u>**" means Double Eagle IV Midco, LLC, a Delaware limited liability company, its Affiliates, any of their respective transferees and any of their respective successors or assigns under this Agreement.

"**<u>EagleRock LLC Agreement</u>**" means the First Amended and Restated Company Agreement of EagleRock Land, LLC, a Texas limited liability company, dated as of even date herewith, as may be amended from time to time.

"**<u>Effective Date</u>**" means the time and date that a Registration Statement is first declared effective by the Commission or otherwise becomes effective.

"**<u>Effectiveness Period</u>**" has the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"**<u>Exchange Act</u>**" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.

"**<u>Holder</u>**" means (i) each Initial Holder unless and until such Initial Holder ceases to hold any Registrable Securities; and (ii) any holder of Registrable Securities to whom registration rights conferred by this Agreement have been transferred in compliance with <u>Section</u> <u>8(e)</u> hereof; provided that any Person referenced in <u>clause</u> <u>(ii)</u> shall be a Holder only if such Person agrees in writing to be bound by and subject to the terms set forth in this Agreement.

"**<u>Holder Indemnified Persons</u>**" has the meaning set forth in <u>Section</u> <u>6(a)</u>.

"**<u>Holder Lock-Up Period</u>**" has the meaning set forth in <u>Section</u> <u>3(q)</u>.

"**<u>Initial Holders</u>**" has the meaning set forth in the preamble.

"**<u>Initiating Holder(s)</u>**" means the Holder(s) delivering a Demand Notice or an Underwritten Offering Notice, as applicable.

"**<u>Lock-Up Period</u>**" has the meaning set forth in the underwriting agreement entered into by the Company in connection with the initial underwritten public offering of Class A Shares.

"**<u>Losses</u>**" has the meaning set forth in <u>Section</u> <u>6(a)</u>.

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"**<u>Managing Underwriter</u>**" means, with respect to any Underwritten Offering or Overnight Underwritten Offering, the book running lead manager or managers of such Underwritten Offering or Overnight Underwritten Offering.

"**<u>Minimum Amount</u>**" has the meaning set forth in <u>Section</u> <u>2(a)(</u><u>i</u><u>)</u>.

"**<u>OpCo</u>**<u> </u>**<u>Units</u>**" has the meaning given to such term in the EagleRock LLC Agreement.

"**<u>Overnight Underwritten Offering</u>**" means an Underwritten Offering that is expected to be launched after the close of trading on one trading day and priced before the open of trading on the next succeeding trading day.

"**<u>Parties</u>**" has the meaning set forth in the preamble.

"**<u>Permitted Transfer</u>**" means a transfer (i) as one or more bona fide gifts or charitable contributions, or for bona fide estate planning purposes, (ii) upon death by will, testamentary document or intestate succession, (iii) if by a natural Person, to any member of such Person's immediate family (no more remote than first cousin) or to any trust for the direct or indirect benefit of such Person or his or her immediate family or to a trust or beneficiary of the trust or the estate of a beneficiary of such trust, (iv) to a family partnership, limited liability company or other entity of which such transferor or his or her immediate family are the legal and beneficial owner of all of the outstanding equity securities or similar interests, (v) to a nominee or custodian of a Person to whom a disposition or transfer would be permissible under clauses (i) through (iv) above, (vi) in the case of a corporation, partnership, limited liability company, trust or other business entity, (A) to another corporation, partnership, limited liability company, trust or other business entity that is an Affiliate of the transferor, or to any investment fund or other entity which fund or entity controls or manages or is controlled or managed by, or is under common control with, the transferor or its Affiliates or (B) as part of a direct or indirect distribution, transfer or other disposition by the transferor to its shareholders, partners, members or other equityholders or to the estate of any such shareholders, partners, members or other equityholders), or (vii) by operation of law, such as pursuant to a qualified domestic relations order, divorce settlement, divorce decree or separation agreement; provided however, in each case, (A) such transfer or distribution shall not involve a disposition for value, and (B) it shall be a condition to the transfer or distribution by any Restricted Holder that the donee, devisee, transferee or distributee, as the case may be, shall agree, in writing, to be bound by the terms and conditions of the Special Lock-Up set forth in <u>Section</u> <u>7(c)</u>.

"**<u>Person</u>**" means an individual, corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, estate, trust, government (or an agency or subdivision thereof) or other entity of any kind.

"**<u>Piggyback Registration</u>**" has the meaning set forth in <u>Section</u> <u>2(c)(i)</u>.

"**<u>Piggyback Registration Notice</u>**" has the meaning set forth in <u>Section</u> <u>2(c)(</u><u>i</u><u>)</u>.

"**<u>Piggyback Registration Request</u>**" has the meaning set forth in <u>Section</u> <u>2(c)(</u><u>i</u><u>)</u>.

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"**<u>Proceeding</u>**" means any action, claim, suit, proceeding or investigation (including a preliminary investigation or partial proceeding, such as a deposition) pending or, to the knowledge of the Company, to be threatened.

"**<u>Prospectus</u>**" means the prospectus included in a Registration Statement (including a prospectus that includes any information previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A, Rule 430B or Rule 430C promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

"**<u>Registrable Securities</u>**" means with respect to a Holder, the Shares beneficially owned by such Holder; provided, however, that Registrable Securities shall not include any Shares that (i) have been registered under the Securities Act and disposed of pursuant to an effective Registration Statement or otherwise transferred to a Person who is not entitled to the registration and other rights hereunder, (ii) have been sold or transferred by such Holder pursuant to Rule 144 (or any similar provision then in force under the Securities Act) and the transferee thereof does not receive "restricted securities" as defined in Rule 144, and (iii) after the one year anniversary of the expiration of the Lock-Up Period, in the aggregate with all other Shares held by such Holder or its Affiliates, represent less than 5% of the Common Shares that are outstanding at such time and are eligible for resale without restriction (including any volume or manner of sale restriction) under Rule 144 (or any similar provision then in force under the Securities Act) and (iv) cease to be outstanding (whether as a result of repurchase and cancellation, conversion or otherwise).

"**<u>Registration Expenses</u>**" has the meaning set forth in <u>Section</u> <u>5</u>.

"**<u>Registration Statement</u>**" means a registration statement of the Company in the form required to register under the Securities Act and other applicable law the resale of the Registrable Securities in accordance with the intended plan of distribution of each Holder of Registrable Securities included therein, and including any Prospectus, amendments and supplements to each such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

"**<u>Requested Underwritten Offering</u>**" has the meaning set forth in <u>Section</u> <u>2(b)</u>.

"**<u>Requested Underwritten Offering Minimum Condition</u>**" has the meaning set forth in <u>Section</u> <u>2(a)(iii)</u>.

"**<u>Restricted Holder</u>**" means each of the Initial Holders, their Affiliates, any of their respective transferees in any Permitted Transfer and any of their respective successors or assigns under this Agreement, except for (i) the DE IV Midco Holders and (ii) the Shallow Valley Holders, provided, however, that each Shallow Valley Holder shall become a Restricted Holder as provided in <u>Section</u> <u>7(c)</u>.

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"**<u>Rule</u> <u>1</u><u>44</u>**" means Rule 144 promulgated by the Commission pursuant to the Securities Act.

"**<u>Rule</u> <u>4</u><u>05</u>**" means Rule 405 promulgated by the Commission pursuant to the Securities Act.

"**<u>Rule</u> <u>4</u><u>15</u>**" means Rule 415 promulgated by the Commission pursuant to the Securities Act.

"**<u>Rule</u> <u>4</u><u>24</u>**" means Rule 424 promulgated by the Commission pursuant to the Securities Act.

"**<u>Securities</u>**" means Common Shares and OpCo Units.

"**<u>Securities Act</u>**" means the Securities Act of 1933, as amended.

"**<u>Selling Expenses</u>**" means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder (except as set forth in <u>Section</u> <u>5</u>).

"**<u>Shallow Valley Holders</u>**" means each Shallow Valley Ranch party set forth on the signature page to this Agreement, their Affiliates, any of their respective transferees pursuant to Section 7(c)(viii) and any of their respective successors or assigns under this Agreement.

"**<u>Shallow Valley Minimum Sale Event</u>**" has the meaning set forth in <u>Section</u> <u>7(c)</u><u>(ii)</u>.

"**<u>Shares</u>**" means (i) the Class A Shares held by the Holders or their Affiliates at any time, including the Class A Shares that may be delivered upon redemption of OpCo Units (and a corresponding number of Class B Shares) held by the Holders at any time, and (ii) any other equity interests of the Company or equity interests in any successor of the Company issued in respect of such shares by reason of or in connection with any stock dividend, stock split, combination, reorganization, recapitalization, conversion to another type of entity or similar event involving a change in the capital structure of the Company. For purposes of this Agreement, a Person shall be deemed to be a holder of Shares and such Shares shall be deemed to be in existence whenever such Person has the right to acquire such Shares (upon conversion, exchange or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right other than vesting), whether or not such acquisition has actually been effected, and such Person shall be entitled to exercise the rights of a holder of Shares.

"**<u>Shelf Registration Statement</u>**" means a Registration Statement of the Company filed with the Commission on Form S-3 or Form S-1, as applicable, based on the Company's eligibility at the time of such filing (or any successor form or other appropriate form under the Securities Act), for an offering to be made on a continuous or delayed basis pursuant to Rule 415 (or any similar rule that may be adopted by the Commission) covering the Registrable Securities, as applicable.

"**<u>Special Lock-Up</u>**" has the meaning set forth in <u>Section</u> <u>7(c)(i)</u>.

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"**<u>Special Lock-Up Legend</u>**" has the meaning set forth in <u>Section</u> <u>7(c)(vii)</u>.

"**<u>Special Lock-Up Termination</u>**" has the meaning set forth in Section 7(c)(iv).

"**<u>Suspension Period</u>**" has the meaning set forth in <u>Section</u> <u>8(b)</u>.

"**TCW Holders**" means each TCW party set forth on the signature page to this Agreement and their Affiliates.

"**<u>Total Minimum Sale Event</u>**" has the meaning set forth in <u>Section</u> <u>7(c)(iii)</u>.

"**<u>Total Minimum Sale Threshold</u>**" has the meaning set forth in <u>Section</u> <u>7(c)(i)</u>.

"**<u>Trading Market</u>**" means the principal national securities exchange on which Registrable Securities are listed.

"**<u>Transfer</u>**" means any of the following: to (i) offer, sell, contract to sell, pledge, grant any option, right or warrant to purchase, purchase any option or contract to sell, lend or otherwise transfer or dispose of any Securities, or any options or warrants to purchase any Securities, or any securities convertible into, exchangeable for or that represent the right to receive Securities, (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) which is designed to or which reasonably could be expected to lead to or result in a sale, loan, pledge or other disposition (or transfer of any of the economic consequences of ownership, in whole or in part, directly or indirectly, of Securities, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of Securities or other securities, in cash or otherwise, or (iii) make any demand for or exercise any right with respect to a Requested Underwritten Offering or an Underwritten Piggyback Offering, except as expressly provided in <u>Section 7(c)(ix)</u>, provided, however, that for purposes of this Agreement, "**<u>Transfer</u>**" shall not include any Permitted Transfer (as such term is defined in this Agreement).

"**<u>Underwritten Offering</u>**" means an underwritten offering of Class A Shares for cash (whether a Requested Underwritten Offering or in connection with a public offering of Class A Shares by the Company, its shareholders or both), excluding an offering relating solely to an employee benefit plan, an offering relating to a transaction registered on Form S-4 or S-8 or an offering on any registration statement form that does not permit secondary sales.

"**<u>Underwritten Offering Notice</u>**" has the meaning set forth in <u>Section</u> <u>2(b)</u>.

"**<u>Underwritten Offering Piggyback Notice</u>**" has the meaning set forth in <u>Section</u> <u>2(c)(ii)</u>.

"**<u>Underwritten Offering Piggyback Request</u>**" has the meaning set forth in <u>Section</u> <u>2(c)(ii)</u>.

"**<u>Underwritten Piggyback Offering</u>**" has the meaning set forth in <u>Section</u> <u>2(c)(ii)</u>.

"**<u>VWAP</u>**" means, as of a specified date and in respect of Registrable Securities, the volume weighted average price for such security on the Trading Market for the five trading days immediately preceding, but excluding, such date.

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"**<u>WKSI</u>**" means a "**<u>well known seasoned issuer</u>**" as defined under Rule 405.

Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms; (b) references to Sections refer to Sections of this Agreement; (c) the terms "include," "includes," "including" and words of like import shall be deemed to be followed by the words "without limitation"; (d) the terms "hereof," "hereto," "herein" or "hereunder" refer to this Agreement as a whole and not to any particular provision of this Agreement; (e) unless the context otherwise requires, the term "or" is not exclusive and shall have the inclusive meaning of "and/or"; (f) defined terms herein will apply equally to both the singular and plural forms and derivative forms of defined terms will have correlative meanings; (g) references to any law or statute shall include all rules and regulations promulgated thereunder, and references to any law or statute shall be construed as including any legal and statutory provisions consolidating, amending, succeeding or replacing the applicable law or statute; (h) references to any Person include such Person's successors and permitted assigns; and (i) references to "days" are to calendar days unless otherwise indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Registration</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Demand Registration</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At any time after the expiration of the Lock-Up Period, any Holder(s) shall have the option and right, exercisable by delivering a written notice to the Company (a "**<u>Demand Notice</u>**"), to require the Company to, pursuant to the terms of and subject to the limitations contained in this Agreement, prepare and file with the Commission a Registration Statement registering the offering and sale of the number and type of Registrable Securities on the terms and conditions specified in the Demand Notice, which may include sales on a delayed or continuous basis pursuant to Rule 415 pursuant to a Shelf Registration Statement (a "**<u>Demand Registration</u>**"). The Demand Notice must set forth the number of Registrable Securities that the Initiating Holder(s) intend to include in such Demand Registration and the intended methods of disposition thereof. Notwithstanding anything to the contrary herein, in no event shall the Company be required to effectuate a Demand Registration unless the Registrable Securities of the Initiating Holder(s) and their respective Affiliates to be included therein have an aggregate value, based on the VWAP as of the date of the Demand Notice, of at least $50 million (the "**<u>Minimum Amount</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Within 15 Business Days after the receipt of the Demand Notice (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, within 30 Business Days thereof), the Company shall, subject to the limitations of this <u>Section</u> <u>2(a)</u>, file a Registration Statement in accordance with the terms and conditions of the Demand Notice. The Company shall use all commercially reasonable efforts to cause such Registration Statement to become and remain effective as soon as reasonably practicable after the filing thereof under the Securities Act until all Registrable Securities covered by such Registration Statement have been sold (the "**<u>Effectiveness Period</u>**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The plan of distribution included in any Shelf Registration Statement shall include all methods of distribution permitted by applicable law, including Underwritten Offerings, at-the-market transactions, brokerage transactions (including on a Trading Market or over-the-counter), Rule 144 sales, private transactions, "bought deals," Overnight Underwritten Offerings, block trades, trades through options, short sales, forward sales, puts, agented transactions, stock lending transactions and hedging and other derivative transactions. The Company hereby agrees with each Holder that, in connection with any offering under an effective Shelf Registration Statement in accordance with such plan of distribution, the Company will negotiate in good faith and execute all indemnities, underwriting, agency or other agreements and other documents reasonably required under the terms of such arrangements, including using all commercially reasonable efforts to facilitate due diligence and procure customary legal opinions and auditor "comfort" letters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Subject to the other limitations contained in this Agreement, the Company is not obligated hereunder to (A) file any Registration Statement pursuant to a Demand Registration within 90 days after the closing of any Requested Underwritten Offering, unless as a result of <u>Section</u> <u>2(d)</u>, the Requested Underwritten Offering includes less than (the "**<u>Requested Underwritten Offering Minimum Condition</u>**") the lesser of (i) Registrable Securities of the Initiating Holder(s) having an aggregate value, based on the VWAP as of the effective date of the related Registration Statement, of $50 million, and (ii) two-thirds of the number of Registrable Securities the Initiating Holder(s) set forth in the applicable Underwritten Offering Notice, or (B) effect a subsequent Demand Registration pursuant to a Demand Notice if a Registration Statement covering all of the Registrable Securities held by the Initiating Holder(s) shall have become and remains effective under the Securities Act and is sufficient to permit offers and sales of the number and type of Registrable Securities on the terms and conditions specified in the Demand Notice in accordance with the intended timing and method or methods of distribution thereof specified in the Demand Notice. No Demand Registration shall be deemed to have occurred for purposes of this <u>Section</u> <u>2(a)(iii)</u> if the Registration Statement relating thereto does not become effective or is not maintained effective for its entire Effectiveness Period, in which case the Initiating Holder(s) shall be entitled to an additional Demand Registration in lieu thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) A Holder may withdraw all or any portion of its Registrable Securities included in a Demand Registration from such Demand Registration at any time prior to the effectiveness of the applicable Registration Statement. Upon receipt of a notice from an Initiating Holder that such Initiating Holder is withdrawing an amount of its Registrable Securities such that the remaining amount of Registrable Securities to be included in the Demand Registration is below the Minimum Amount, the Company may cease all efforts to secure effectiveness of the applicable Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Company may include in any such Demand Registration other Company Securities for sale for its own account or for the account of any other Person, subject to <u>Section</u> <u>2(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Subject to the limitations contained in this Agreement, the Company shall effect any Demand Registration on such appropriate registration form of the Commission (A) as shall be selected by the Company and (B) as shall permit the disposition of the Registrable Securities in accordance with the intended method or methods of disposition specified in the Demand Notice; provided that if the Company becomes, and is at the time of its receipt of a Demand Notice, a WKSI, the Demand Registration for any offering and selling of Registrable Securities shall be effected pursuant to an Automatic Shelf Registration Statement, which shall be

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on Form S-3 or any equivalent or successor form under the Securities Act (if available to the Company). If at any time a Registration Statement on Form S-3 is effective and a Holder provides written notice to the Company that it intends to effect an offering of all or part of the Registrable Securities included on such Registration Statement, the Company will amend or supplement such Registration Statement as may be necessary in order to enable such offering to take place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Without limiting <u>Section</u> <u>3</u>, in connection with any Demand Registration pursuant to and in accordance with this <u>Section</u> <u>2(a)</u>, the Company shall (A) promptly prepare and file or cause to be prepared and filed (1) such additional forms, amendments, supplements, prospectuses, certificates, letters, opinions and other documents, as may be necessary or advisable to register or qualify the securities subject to such Demand Registration, including under the securities laws of such jurisdictions as the Holders shall reasonably request; provided, however, that no such qualification shall be required in any jurisdiction where, as a result thereof, the Company would become subject to general service of process or to taxation or qualification to do business in such jurisdiction solely as a result of registration and (2) such forms, amendments, supplements, prospectuses, certificates, letters, opinions and other documents as may be necessary to apply for listing or to list the Registrable Securities subject to such Demand Registration on the Trading Market and (B) do any and all other acts and things that may be reasonably necessary or appropriate or reasonably requested by the Holders to enable the Holders to consummate a public sale of such Registrable Securities in accordance with the intended timing and method or methods of distribution thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) In the event a Holder transfers Registrable Securities included on a Registration Statement and such Registrable Securities remain Registrable Securities following such transfer, at the request of such Holder, the Company shall amend or supplement such Registration Statement as may be necessary in order to enable such transferee to offer and sell such Registrable Securities pursuant to such Registration Statement; provided that in no event shall the Company be required to file a post-effective amendment to the Registration Statement unless such Registration Statement includes only Registrable Securities held by the Holder, Affiliates of the Holder or transferees of the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Requested Underwritten Offering</u>**. Any Initiating Holder(s) then able to effectuate a Demand Registration pursuant to the terms of <u>Section</u> <u>2(a)</u>, ignoring for purposes of such determination <u>Section</u> <u>2(a)(iii)(B)</u>, but subject to the Special Lock-Up set forth in <u>Section</u> <u>7(c)</u>, shall have the option and right, exercisable by delivering written notice to the Company of its intention to distribute Registrable Securities by means of an Underwritten Offering (an "**<u>Underwritten Offering Notice</u>**"), to require the Company, pursuant to the terms of and subject to the limitations of this Agreement, to effectuate a distribution of any or all of its Registrable Securities by means of an Underwritten Offering pursuant to a new Demand Registration or pursuant to an effective Registration Statement covering such Registrable Securities (a "**<u>Requested Underwritten Offering</u>**"); provided, that the Registrable Securities of such Holder(s) requested to be included in such Requested Underwritten Offering have an aggregate value of at least equal to the Minimum Amount as of the date of such Underwritten Offering Notice. The Underwritten Offering Notice must set forth the number of Registrable Securities that such Holder intends to include in such Requested Underwritten Offering. The Managing Underwriter of a Requested Underwritten Offering shall be designated by the Initiating Holder, subject to the consent of the Company (not to be unreasonably withheld or delayed). Notwithstanding the foregoing, the Company is not obligated to effect a Requested Underwritten Offering within 90 days after the closing of a Requested Underwritten Offering, unless as a result of <u>Section</u> <u>2(d)</u>, the prior Requested Underwritten Offering failed to satisfy the Requested Underwritten Offering Minimum Condition.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Piggyback Registration and Piggyback Underwritten Offering</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Company shall at any time propose to file a registration statement under the Securities Act with respect to an offering of Class A Shares (other than a registration statement on Form S-4, Form S-8 or any successor forms thereto or filed solely in connection with an exchange offer or any employee benefit or dividend reinvestment plan), whether or not for its own account, then the Company shall promptly notify all Holders of such proposal reasonably in advance of (and in any event at least five Business Days before) the anticipated filing date (the "**<u>Piggyback Registration Notice</u>**"). The Piggyback Registration Notice shall offer Holders the opportunity to include for registration in such registration statement the number of Registrable Securities as they may request in writing (a "**<u>Piggyback Registration</u>**"). The Company shall include in each such Piggyback Registration such Registrable Securities for which the Company has received written requests for inclusion therein ("**<u>Piggyback Registration Request</u>**") within two Business Days after sending the Piggyback Registration Notice. Each Holder shall be permitted to withdraw all or part of such Holder's Registrable Securities from a Piggyback Registration by giving written notice to the Company of its request to withdraw; provided that such request must be made in writing prior to the effectiveness of such registration statement and such withdrawal shall be irrevocable and, after making such withdrawal, a Holder shall no longer have any right to include Registrable Securities in the Piggyback Registration as to which such withdrawal was made. Any withdrawing Holder shall continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of Class A Shares, all upon the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Company shall at any time propose to conduct an Underwritten Offering (including a Requested Underwritten Offering), whether for its own account or of the account of other holders, then the Company shall promptly notify all Holders of such proposal at least five Business Days before (or at least two Business Days before in connection with a "bought deal" or Overnight Underwritten Offering) the commencement of the offering, which notice shall set forth the principal terms and conditions of the issuance, including the proposed offering price (or range of offering prices), the anticipated filing date of the related registration statement (if applicable) and the number of Class A Shares that are proposed to be registered (the "**<u>Underwritten Offering Piggyback Notice</u>**"). Receipt of any Underwritten Offering Piggyback Notice required to be provided in this <u>Section</u> <u>2(c)(ii)</u> to Holders shall be kept confidential by the Holder until such proposed Underwritten Offering is (i) publicly announced or (ii) such Holder receives notice that such proposed Underwritten Offering has been abandoned, which such notice shall be provided promptly by the Company to each Holder. Subject to the Special Lock-Up set forth in <u>Section</u> <u>7(c)</u>, the Underwritten Offering Piggyback Notice shall offer Holders the opportunity to include in such Underwritten Offering (and any related registration, if applicable) the number of Registrable Securities as they may request in writing (an "**<u>Underwritten Piggyback Offering</u>**"); provided, however, that in the event that the Company proposes to effectuate the subject Underwritten Offering pursuant to an effective Shelf Registration Statement

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of the Company other than an Automatic Shelf Registration Statement, only Registrable Securities of Holders which are subject to an effective Shelf Registration Statement may be included in such Underwritten Piggyback Offering, unless the Company is then able to file an Automatic Shelf Registration Statement and in the reasonable judgment of the Company, the filing of the same including Registrable Securities of Holders that are not otherwise included in an effective Shelf Registration Statement would not have a material adverse effect on the price, timing or distribution of the Class A Shares in such Underwritten Piggyback Offering. Subject to the Special Lock-Up set forth in <u>Section</u> <u>7(c)</u>, the Company shall include in each such Underwritten Piggyback Offering such Registrable Securities for which the Company has received written requests for inclusion therein ("**<u>Underwritten Offering Piggyback Request</u>**") within two Business Days after sending the Underwritten Offering Piggyback Notice (or one Business Day in connection with a "bought deal" or Overnight Underwritten Offering). Notwithstanding anything to the contrary in this <u>Section</u> <u>2(c)(ii)</u>, if the Underwritten Offering pursuant to this <u>Section</u> <u>2(c)(ii)</u> is a "bought deal" (other than a variable price reoffer) or Overnight Underwritten Offering and the Managing Underwriter advises the Company in writing that the inclusion of any Registrable Securities pursuant to this <u>Section</u> <u>2(c)(ii)</u> would have a material adverse effect on the price, timing or distribution of the Class A Shares in such Underwritten Offering, no such notice shall be required. Each Holder shall be permitted to withdraw all or part of such Holder's Registrable Securities from an Underwritten Piggyback Offering at any time, and such Holder shall continue to have the right to include any Registrable Securities in any subsequent Underwritten Offerings, all upon the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall have the right to terminate or withdraw any registration initiated by it under this <u>Section</u> <u>2(c)</u> at any time in its sole discretion whether or not any Holder has elected to include Registrable Securities in such Registration Statement. The Registration Expenses of such withdrawn registration shall be borne by the Company in accordance with <u>Section</u> <u>5</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Priority in Underwritten Offerings</u>**. In connection with an Underwritten Offering, if the Managing Underwriter of any such Underwritten Offering advises the Company, and the Company advises the Holders in writing, that, in the reasonable opinion of the Managing Underwriter, the total amount of Class A Shares (or securities convertible into or exercisable or exchangeable for Class A Shares) that the Holders and any other Persons (including the Company) intend to include in such Underwritten Offering (and any related registration, if applicable) exceeds the number that can be included in such Underwritten Offering without being likely to have a material adverse effect on the price, timing or distribution of the Class A Shares offered or the market for the Class A Shares (or securities convertible into or exercisable or exchangeable for Class A Shares), then the Class A Shares to be included in such Underwritten Offering (in each case subject to the other terms and provisions of this Agreement) shall include the number of Class A Shares that such Managing Underwriter, in its reasonable opinion, advises the Company can be sold without having such adverse effect, with such number to be allocated, subject to the Special Lock-Up set forth in <u>Section</u> <u>7(c)</u>, as follows (in each case, with respect to such Persons that have validly requested to include Class A Shares in such Underwritten Offering in accordance with this Agreement or otherwise pursuant to rights of registration granted by the Company):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the offering was initiated for and on behalf of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) first, to the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) second, to the Holders, pro rata in accordance with the number of Registrable Securities then held by each such Holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) third, to all other holders of Class A Shares entitled to participate in such Underwritten Offering, pro rata in accordance with the number of Class A Shares then held by such other holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Requested Underwritten Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) first, the Holders, pro rata based on the relative number of Registrable Securities then held by each such Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) second, to the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) third, pro rata among all other holders of Class A Shares entitled to participate in such Underwritten Offering, pro rata in accordance with the number of Class A Shares then held by such other holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the offering was not initiated for and on behalf of the Company and was initiated for and on behalf of any holder of registration rights (other than any Holder):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) first, to such other holders and the Holders, pro rata based on the number of Class A Shares held by such other holders and the Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) second, to the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) third, pro rata among all other holders of Class A Shares proposed to be included in such offering based on the number of Class A Shares held by such other holders.

Notwithstanding the foregoing, if (I) an offering was initiated by the Holders, (II) the Holders are unable to include in the offering all of the Class A Shares included in the Underwritten Offering Piggyback Request and (III) the underwriters in such offering exercise their option to purchase up to an additional 15% of the shares sold in such offering, the shares to be included in such option closings shall be allocated (x) first, to the Holders, pro rata in accordance with the number of Registrable Securities then held by each such Holder until all shares included in the Underwritten Offering Piggyback Request are sold, and (y) second, to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Registration and Underwritten Offering Procedures</u>**.

The procedures to be followed by the Company and each Holder electing to sell Registrable Securities in a Registration Statement pursuant to this Agreement, and the respective rights and obligations of the Company and such Holders, with respect to the preparation, filing and effectiveness of such Registration Statement and the effectuation of any Underwritten Offering, are as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with a Demand Registration, the Company will, at least five Business Days prior to the anticipated filing of the Registration Statement and any related Prospectus or any amendment or supplement thereto (other than, after effectiveness of the Registration Statement, any filing made under the Exchange Act that is incorporated by reference into the Registration Statement or any filing of a prospectus the purpose of which is to update the Registration Statement for an Exchange Act report that cannot be incorporated by reference), (i) furnish to such Holders copies of all such documents prior to filing and (ii) consider in good faith such comments as such Holders reasonably shall propose prior to the filing thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with a Piggyback Registration, Underwritten Piggyback Offering or a Requested Underwritten Offering, the Company will, at least two Business Days (or one Business Day in the case of any Overnight Underwritten Offering or "bought deal") prior to the anticipated filing of any initial Registration Statement that identifies the Holders and any related Prospectus or any amendment or supplement thereto (other than amendments and supplements that do not materially alter the previous disclosure or do nothing more than name Holders and provide information with respect thereto), as applicable, (i) furnish to such Holders copies of any such Registration Statement or related Prospectus or amendment or supplement thereto that identify the Holders and any related Prospectus or any amendment or supplement thereto (other than amendments and supplements that do not materially alter the previous disclosure or do nothing more than name Holders and provide information with respect thereto) prior to filing and (ii) consider in good faith such comments as such Holders reasonably shall propose prior to the filing thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company will use all commercially reasonable efforts to as promptly as reasonably practicable (i) prepare and file with the Commission such amendments, including post-effective amendments, and supplements to each Registration Statement and the Prospectus used in connection therewith as may be necessary under applicable law to keep such Registration Statement continuously effective with respect to the disposition of all Registrable Securities covered thereby for its Effectiveness Period and, subject to the limitations contained in this Agreement, prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities held by the Holders; (ii) cause the related Prospectus to be amended or supplemented by any required prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; and (iii) respond to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably practicable provide such Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to such Holders as selling shareholders but not any comments that would result in the disclosure to such Holders of material and non-public information concerning the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company will comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statements and the disposition of all Registrable Securities covered by each Registration Statement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company will notify such Holders who are included in a Registration Statement as promptly as reasonably practicable: (i) (A) when a Prospectus or any prospectus supplement or post-effective amendment to a Registration Statement in which such Holder is included has been filed; (B) when the Commission notifies the Company whether there will be a "review" of the applicable Registration Statement and whenever the Commission comments in writing on such Registration Statement (in which case the Company shall provide true and complete copies thereof and all written responses thereto to each of such Holders that pertain to such Holders as selling shareholders); and (C) with respect to each applicable Registration Statement or any post-effective amendment thereto, when the same has been declared effective; (ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to such Registration Statement or Prospectus or for additional information that pertains to such Holders as sellers of Registrable Securities; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of such Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence (but not the details) of any event or passage of time that makes any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided, however, that no notice by the Company shall be required pursuant to this <u>clause</u> <u>(e)</u> in the event that the Company either promptly files a prospectus supplement to update the Prospectus or a Form 8-K or other appropriate Exchange Act report that is incorporated by reference into the Registration Statement, which in either case, contains the requisite information that results in such Registration Statement no longer containing any untrue statement of material fact or omitting to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company will use all commercially reasonable efforts to avoid the issuance of or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as promptly as reasonably practicable, or if any such order or suspension is made effective during any Blackout Period or Suspension Period, as promptly as reasonably practicable after such Blackout Period or Suspension Period is over.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) During the Effectiveness Period, the Company will furnish to each such Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto, together with all exhibits, to the extent requested by such Holder, including documents incorporated by reference into such Registration Statement and documents, including earnings releases, furnished to the Commission under the Exchange Act, promptly after the filing with or furnishing of such documents to the Commission; provided, that the Company will not have any obligation to provide any document pursuant to this clause that is available on the Commission's EDGAR system.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company will promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus) authorized by the Company for use and each amendment or supplement thereto as such Holder may reasonably request during the Effectiveness Period. Subject to the terms of this Agreement, including <u>Section</u> <u>8(b)</u>, the Company consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company will cooperate with such Holders to facilitate the timely issuance of certificates or book-entry notations evidencing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates or book-entry notations shall be free of all restrictive legends indicating that the Registrable Securities are unregistered or unqualified for resale under the Securities Act, Exchange Act or other applicable securities laws, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder may request in writing. In connection therewith, if required by the Company's transfer agent, the Company will promptly, after the Effective Date of the Registration Statement, cause an opinion of counsel as to the effectiveness of the Registration Statement to be delivered to and maintained with its transfer agent, together with any other authorizations, certificates and directions required by the transfer agent which authorize and direct the transfer agent to issue such Registrable Securities without any such legend upon sale by the Holder of such Registrable Securities under the Registration Statement. Further, subject to <u>Section</u> <u>7(c)(v</u><u>i</u><u>i)</u>, if a Registration Statement covering the resale of Shares by a Holder is effective under the Securities Act and such Holder delivers to the Company a representation and/or "will comply" letter, as applicable, reasonably acceptable to the Company, the Company shall instruct the transfer agent to remove any legend, notation or similar designation restricting transferability of the Registrable Securities from the certificates or book-entries evidencing such Registrable Securities. Any fees of the Company, the Company's counsel and the Company's transfer agent relating to any such legend removal shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Upon the occurrence of any event contemplated by <u>Section</u> <u>3(e)</u>, as promptly as reasonably practicable, the Company will prepare a supplement or amendment, including a post-effective amendment, if required by applicable law, to the affected Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) With respect to Underwritten Offerings, subject to the right of a Holder to withdraw such Holder's Registrable Securities from an Underwritten Offering in accordance with the terms of this Agreement, (i) the right of any Holder to include such Holder's Registrable Securities in an Underwritten Offering shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein, (ii) each Holder participating in such Underwritten Offering severally agrees to enter into an underwriting agreement in customary form and sell such Holder's Registrable Securities on the basis provided in any underwriting arrangements approved by the Persons entitled to select the Managing Underwriter hereunder and (iii) each Holder participating

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in such Underwritten Offering severally agrees to complete and execute all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents customarily and reasonably required under the terms of such underwriting arrangements. The Company hereby agrees with each Holder that, in connection with any Underwritten Offering in accordance with the terms hereof, it will negotiate in good faith and execute all indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, including using all commercially reasonable efforts to facilitate due diligence and procure customary legal opinions and auditor "comfort" letters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) For a reasonable period prior to the filing of any Registration Statement and prior to an Underwritten Offering, the Company will make available, upon reasonable notice at the Company's principal place of business or such other reasonable place, for inspection during normal business hours by a representative or representatives of the selling Holders, the Managing Underwriter and any attorneys or accountants retained by such selling Holders or underwriters, all such financial and other information and books and records of the Company, and cause the officers, employees, counsel and independent certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary (and in the case of counsel, not violate an attorney-client privilege in such counsel's reasonable belief) to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that any information that is not generally publicly available at the time of delivery of such information shall be kept confidential by such Persons unless disclosure of such information is required by court or administrative order or, in the opinion of counsel to such Person, law, in which case, such Person shall be required to give the Company written notice of the proposed disclosure prior to such disclosure and, if requested by the Company, assist the Company in seeking to prevent or limit the proposed disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) In connection with any Requested Underwritten Offering, the Company will use all commercially reasonable efforts to cause appropriate officers and employees to be available, on a customary basis and upon reasonable notice, to meet with prospective investors in presentations, meetings and road shows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Each Holder agrees to furnish to the Company any other information regarding the distribution of such securities as the Company reasonably determines is required to be included in any Registration Statement or any Prospectus or prospectus supplement relating to an Underwritten Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Notwithstanding any other provision of this Agreement, the Company shall not be required to file a Registration Statement (or any amendment thereto) or effect a Requested Underwritten Offering (or, if the Company has filed a Shelf Registration Statement and has included Registrable Securities therein, the Company shall be entitled to suspend the offer and sale of Registrable Securities pursuant to such Registration Statement) for a period of up to 60 days if (i) the Board determines that a postponement is in the best interest of the Company and its shareholders generally due to a proposed transaction involving the Company and determines in good faith that the Company's ability to pursue or consummate such a transaction would be materially and adversely affected by any required disclosure of such transaction in such Registration Statement, (ii) the Board determines such registration would render the Company unable to comply with applicable securities laws or (iii) the Board determines such registration or

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offering would require disclosure of material information that the Company has a bona fide business purpose for preserving as confidential (any such period, a "**<u>Blackout Period</u>**"); provided that in no event shall any Blackout Periods continue for more than 90 days in the aggregate during any consecutive 12-month period. provided, further, that the Company shall not defer or suspend its obligations in the manner contemplated by this <u>Section</u> <u>3(o)</u> more than two times in any 12-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) In connection with an Underwritten Offering, the Company shall use all commercially reasonable efforts to provide to each Holder named as a selling securityholder in any Registration Statement a copy of any auditor "comfort" letters or customary legal opinions, in each case that have been provided to the Managing Underwriter in connection with the Underwritten Offering, not later than the Business Day prior to the effective date of such Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) In connection with any Underwritten Offering, any Holder that together with its Affiliates owns 10% or more of the outstanding Class A Shares, shall execute a customary "lock-up" agreement with the underwriters of such Underwritten Offering containing a lock-up period equal to the shorter of (A) the shortest number of days that a director of the Company, "executive officer" (as defined under Section 16 of the Exchange Act) of the Company or any shareholder of the Company (other than a Holder or director or employee of, or consultant to, the Company) who owns 10% or more of the outstanding Class A Shares contractually agrees to with the underwriters of such Underwritten Offering not to sell any securities of the Company following such Underwritten Offering and (B) 60 days from the date of the execution of the underwriting agreement with respect to such Underwritten Offering (each such period, a "**<u>Holder Lock-Up Period</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>No Inconsistent Agreements; Additional Rights</u>**. The Company shall not hereafter enter into, without the prior written consent of the Holders owning the majority of the Registrable Securities outstanding at such time, and is not currently a party to, any agreement with respect to its securities that is on parity with, superior to or inconsistent with or that in any way violates, equates or subordinates rights granted to the Holders by this Agreement, and any such agreement shall be considered void *ab initio*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Registration Expenses</u>**. All Registration Expenses incident to the Parties' performance of or compliance with their respective obligations under this Agreement or otherwise, including in connection with any Demand Registration, Requested Underwritten Offering, Piggyback Registration or Underwritten Piggyback Offering (in each case, excluding any Selling Expenses), shall be borne by the Company, whether or not any Registrable Securities are sold pursuant to a Registration Statement. "**<u>Registration Expenses</u>**" shall include, without limitation, all (i) registration and filing fees (including fees and expenses (A) with respect to filings required- to be made with the Trading Market, (B) in compliance with applicable state securities or "Blue Sky" laws and (C) with respect to filings with FINRA), (ii) printing expenses (including expenses of printing certificates for Company Securities and of printing Prospectuses if the printing of Prospectuses is reasonably requested by a Holder of Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel, auditors and accountants for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, (vi) fees and expenses of all other Persons

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retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, including fees and expenses of any underwriters, placement agents and their counsel (but not the underwriting discounts or commissions payable to such underwriters or placement agents), (vii) the fees and expenses of one law firm of national standing and one local counsel per applicable jurisdiction, in each case selected by the Holders owning the majority of the Registrable Securities to be included in any such registration or offering, and (viii) all expenses relating to marketing the sale of the Registrable Securities, including expenses related to conducting a "road show." In addition, the Company shall be responsible for all of its expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including expenses payable to third parties and including all salaries and expenses of their officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on the Trading Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall indemnify and hold harmless each Holder, its Affiliates and each of their respective employees, advisors, agents, representatives, partners, officers, and directors (collectively, "**<u>Holder Indemnified Persons</u>**"), to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, joint or several, costs (including reasonable costs of preparation, investigation and defense and reasonable attorneys' fees, charges and disbursements) and expenses, judgments, fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Holder Indemnified Person may be involved, or is threatened to be involved, as a party or otherwise, under the Securities Act or otherwise (collectively, "**<u>Losses</u>**"), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which any Registrable Securities were registered, in any preliminary prospectus (if the Company authorized the use of such preliminary prospectus prior to the Effective Date), or in any summary or final prospectus or free writing prospectus (if such free writing prospectus was authorized for use by the Company) or in any amendment or supplement thereto (if used during the period the Company is required to keep the Registration Statement current), or arising out of, based upon or resulting from the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances in which they were made, not misleading; provided, however, that the Company shall not be liable to any Holder Indemnified Person to the extent that any such claim arises out of, is based upon or results from an untrue or alleged untrue statement or omission or alleged omission made in such Registration Statement, such preliminary, summary or final prospectus or free writing prospectus or such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder Indemnified Person specifically for use in the preparation thereof. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement. This indemnity shall be in addition to any liability the Company may otherwise have and shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder Indemnified Person or any indemnified party and shall survive the transfer of such securities by such Holder. Notwithstanding anything to the contrary herein, this <u>Section</u> <u>6</u> shall survive any termination or expiration of this Agreement indefinitely.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any Registration Statement in which a Holder participates, such Holder shall, severally and not jointly, indemnify and hold harmless the Company, its Affiliates and each of their respective officers, directors and any agent thereof, to the fullest extent permitted by applicable law, from and against any and all Losses as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in any such Registration Statement, in any preliminary prospectus (if used prior to the Effective Date of such Registration Statement), or in any summary or final prospectus or free writing prospectus or in any amendment or supplement thereto (if used during the period the Company is required to keep the Registration Statement current), or arising out of, based upon or resulting from the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances in which they were made, not misleading, but only to the extent that the same are made in reliance and in conformity with information relating to the Holder furnished in writing to the Company by such Holder expressly for use therein. This indemnity shall be in addition to any liability such Holder may otherwise have and shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any indemnified party. Notwithstanding anything to the contrary contained herein, in no event shall the liability of any selling Holder hereunder be greater than the amount of the net proceeds received by such Holder from the sale of the Registrable Securities giving rise to such indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim or there may be reasonable defenses available to the indemnified party that are different from or additional to those available to the indemnifying party, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party there may be one or more legal or equitable defenses available to such indemnified party that are in addition to or may conflict with those available to another indemnified party with respect to such claim. Failure to give prompt written notice shall not release the indemnifying party from its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the indemnification provided for in this <u>Section</u> <u>6</u> is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any Losses referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other, in connection with the untrue or alleged untrue statement of a material fact or the omission

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to state a material fact that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, that in no event shall any contribution by a Holder hereunder exceed the net proceeds from the offering received by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Sales Pursuant to</u> <u>Rule</u> <u>1</u><u>44</u> <u>and Special Lock-Up</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Current Public Filings</u>**. The Company shall timely file the reports required to be filed by it under the Exchange Act or the Securities Act (including the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144), and shall take such further action as any Holder may reasonably request, all to the extent required from time to time to enable the Holders to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144. Upon the request of any Holder in connection with that Holder's sale pursuant to Rule 144, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Company Obligations Regarding Rule 144 Transfers</u>**. In addition to the Company's obligations set forth in <u>Section</u> <u>3(i)</u> of this Agreement, the Company shall instruct the transfer agent to remove any legend, notation or similar designation restricting transferability of the Registrable Securities from the certificates or book-entries evidencing Registrable Securities if (i) such Shares are sold or transferred pursuant to Rule 144, (ii) such Shares are eligible for sale under Rule 144 without the requirement that the Company has complied with the public reporting requirements of the Exchange Act or (iii) a Registration Statement covering the resale of such Shares by such Holder is effective under the Securities Act and such Holder delivers to the Company a representation and/or "will comply" letter, as applicable, that is reasonably acceptable to the Company. Each Holder agrees to provide the Company, its counsel and/or the transfer agent with evidence reasonably requested by it in order to cause the removal of such legend, including, as may be appropriate, any information the Company deems necessary to determine that the legend, notation or similar designation is no longer required under the Securities Act or applicable state laws, including a certification, to the extent applicable, that the holder is not an Affiliate of the Company (and a covenant to inform the Company if it should thereafter become an Affiliate and to consent to exchange any certificates or instruments representing any Shares for ones bearing an appropriate restrictive legend) and regarding the length of time such Shares have been held. Any legal opinion required by the Company's transfer agent in connection with any legend removal shall be delivered by the Company's counsel, and any fees of the Company, the transfer agent and Company counsel associated with the issuance of any such legal opinion or the removal of such legend shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Special Lock-Up</u>**. Notwithstanding anything to the contrary contained in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Restricted Holder shall Transfer any Securities beneficially owned by such Restricted Holder (the "**<u>Special Lock-Up</u>**") until such time as the DE IV Midco Holders and the Shallow Valley Holders have collectively sold, in one or more transactions, Securities for aggregate gross proceeds of at least $300 million (the "**<u>Total Minimum Sale Threshold</u>**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall promptly notify the Company and Double Eagle IV Midco, LLC when the Shallow Valley Holders have collectively sold (the "**<u>Shallow Valley Minimum Sale Event</u>**"), in one or more transactions, Securities for aggregate gross proceeds of at least $95 million and, in the event that the Total Minimum Sale Threshold has not been reached at the time of the Shallow Valley Minimum Sale Event, each Shallow Valley Holder shall become a Restricted Holder, subject to the Special Lock-Up hereunder with respect to any remaining Securities beneficially owned by each such Shallow Valley Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Double Eagle IV Midco, LLC shall promptly notify the Company when the DE IV Midco Holders and the Shallow Valley Holders have collectively reached the Total Minimum Sale Threshold (the "**<u>Total Minimum Sale Event</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Special Lock-Up shall terminate, and the restrictions set forth in this <u>Section</u> <u>7(c)</u> shall no longer apply to any Restricted Holder (the "**<u>Special Lock-Up Termination</u>**"), upon the occurrence of the earlier of: (A) the Total Minimum Sale Event; (B) the expiration of the 18-month period after the date of this Agreement; and (C) the date on which Double Eagle IV Midco, LLC or its designee terminates the Special Lock-Up in its sole discretion and notifies the Company of any such earlier termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company shall promptly notify each Person who is then a Restricted Holder of the Special Lock-Up Termination pursuant to <u>Section</u> <u>7(c)(iv)(A) and, to the extent applicable, Section</u> <u>7(c)(iv)(C</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Prior to the Special Lock-Up Termination in accordance with <u>Section</u> <u>7(c)(iv)</u>, Double Eagle IV Midco, LLC may waive or release, in whole or in part, the Special Lock-Up with respect to any or all Restricted Holders, or a specific number of Class A Shares held by any such Restricted Holder, at any time in its sole discretion upon prior written notice to the Company, and the Company shall promptly notify such Restricted Holder or Restricted Holders, as applicable, of any such waiver or release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) During such time as the Special Lock-Up is in effect, the Company shall instruct its transfer agent that any certificate or book-entry representing Securities held by each Person who is then a Restricted Holder shall bear a contractual restrictive legend indicating that such Securities are subject to the Special Lock-Up (the "**<u>Special Lock-Up Legend</u>**"), and shall further instruct the transfer agent to promptly remove the Special Lock-Up Legend (A) from all Securities held by the Restricted Holders upon the Lock-Up Termination in accordance with this <u>Section</u> <u>7(c)(iv)</u> and (B) from the Class A Shares held by any Restricted Holder with respect to which, to the extent applicable, Double Eagle IV Midco, LLC has waived or released the Special Lock-Up in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Prior to the Special Lock-Up Termination, no Shallow Valley Holder shall effect any transfer that would constitute a Permitted Transfer, but for the operation of clause (B) of the last proviso included in the definition thereof, unless each transferee has agreed in writing to be bound by the terms and conditions of this <u>Section</u> <u>7(c)</u> as they apply to a Shallow Valley Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The Special Lock-Up shall not apply to (A) any demand for a Requested Underwritten Offering exercised by TCW Holders in accordance with the terms and conditions set forth in <u>Section 2(b)</u> or (B) any exercise of piggyback rights with respect to an Underwritten Piggyback Offering by TCW Holders in accordance with the terms and conditions set forth in <u>Section 2(c)</u>, in each case subject to <u>Section 2(d)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Remedies</u>**. In the event of actual or potential breach by the Company of any of its obligations under this Agreement, each Holder, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Discontinued Disposition</u>**. Subject to the last sentence of <u>Section</u> <u>3(o)</u>, each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in <u>clauses</u> <u>(ii)</u> through <u>(v)</u> of <u>Section</u> <u>3(e)</u>, such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder's receipt of the copies of the supplemental Prospectus or amended Registration Statement as contemplated by <u>Section</u> <u>3(j)</u> or until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement (a "**<u>Suspension Period</u>**"). The Company may provide appropriate stop orders to enforce the provisions of this <u>Section</u> <u>8(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Amendments and Waivers</u>**. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and Holders that hold a majority of the Registrable Securities as of the date of such waiver or amendment; provided, that any waiver or amendment that would have a disproportionate adverse effect on a Holder relative to the other Holders shall require the consent of such Holder. The Company shall provide prior notice to all Holders of any proposed waiver or amendment. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any Party to exercise any right hereunder in any manner impair the exercise of any such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Notices</u>**. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail as specified in this <u>Section</u> <u>8(d)</u> prior to 5:00 p.m. Central Time on a Business Day, (ii) the Business Day after the date of transmission, if such notice or communication is delivered via facsimile or electronic mail as specified in this Agreement later than 5:00 p.m. Central Time on any date and earlier than 11:59 p.m. Central Time on such date, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight courier service (iv) upon actual receipt by the Party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

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| | |
|:---|:---|
| If to the Company: | EagleRock Land, LLC |
|  | Attention: General Counsel |
|  | 9655 Katy Freeway, Suite 375 |
|  | Houston, Texas 77024 |
|  | Electronic mail: |
| With copy to: | Vinson & Elkins L.L.P. |
|  | Attention: Michael S. Telle; Scott D. Rubinsky |
|  | 845 Texas Avenue, Suite 4700 |
|  | Houston, Texas 77002 |
|  | Electronic mail: mtelle@velaw.com;<br> srubinsky@velaw.com |
| If to any Person who is |  |
| then the registered Holder: | To the address of such Holder as it appears in the applicable register for the Registrable Securities or such other address as may be designated in writing by such Holder (including on the signature pages hereto). |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Successors and Assigns</u>**. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators, successors, legal representatives and permitted assigns. Except as provided in this <u>Section</u> <u>8(e)</u>, this Agreement, and any rights or obligations hereunder, may not be assigned without the prior written consent of the Company (acting through the Board) and the Holders. Notwithstanding anything in the foregoing to the contrary, the rights of a Holder pursuant to this Agreement with respect to all or any portion of its Registrable Securities may be assigned without such consent (but only with all related obligations) with respect to such Registrable Securities (and any Registrable Securities issued as a dividend or other distribution with respect to, in exchange for or in replacement of such Registrable Securities) by such Holder to a transferee of such Registrable Securities; provided (i) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the Registrable Securities with respect to which such registration rights are being assigned and (ii) such transferee or assignee agrees in writing to be bound by and subject to the terms set forth in this Agreement. The Company may not assign its rights or obligations hereunder without the prior written consent of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>No Third Party Beneficiaries</u>**. Nothing in this Agreement, whether express or implied, shall be construed to give any Person, other than the parties hereto or their respective successors and permitted assigns, any legal or equitable right, remedy, claim or benefit under or in respect of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Execution and Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile or electronic mail transmission, such signature shall create a valid binding obligation of the Party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such signature delivered by facsimile or electronic mail transmission were the original thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **<u>Governing Law; Consent to Jurisdiction; Waiver of Jury Trial</u>**. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Texas. Each of the Parties irrevocably submits to the exclusive jurisdiction of the Business Court in the Eleventh Business Court Division of the State of Texas (or, if the Business Court in the Eleventh Business Court Division of the State of Texas lacks jurisdiction, the United States District Court for the Southern District of Texas, or, if the United States District Court for the Southern District of Texas lacks jurisdiction, the district courts of Harris County, Texas, in each case, subject to that court having personal jurisdiction over the indispensable parties named defendants therein) for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each Party anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the Parties irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. **EACH OF THE PARTIES HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Cumulative Remedies</u>**. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **<u>Severability</u>**. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the Parties shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the Parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **<u>Entire Agreement</u>**. This Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior contracts or agreements with respect to the subject matter hereof and the matters addressed or governed hereby, whether oral or written.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **<u>Termination</u>**. Except for <u>Section</u> <u>6</u>, this Agreement shall terminate as to any Holder, when (i) the Special Lock-Up Termination has occurred and (ii) all Registrable Securities held by such Holder no longer constitute Registrable Securities.

[THIS SPACE LEFT BLANK INTENTIONALLY]

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

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| |
|:---|
| **COMPANY:** |
| **EAGLEROCK LAND, LLC** |
| By: |
| Name: |
| Title: |

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*Signature Page to Registration Rights Agreement* 

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**HOLDERS:** 

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| |
|:---|
| **DOUBLE EAGLE PARTY:** |
| Address for notice for the Double Eagle party: |
| c/o Double Eagle IV Midco, LLC |
| 3724 Hulen Street |
| Fort Worth, Texas 76107 |
| Attention: Blake Carpenter |
| Electronic mail: bcarpenter@depermian.com |

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*Signature Page to Registration Rights Agreement*

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---

| |
|:---|
| **DOUBLE EAGLE IV MIDCO, LLC** |
| By: |
| Name: |
| Title: |

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*Signature Page to Registration Rights Agreement*

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| |
|:---|
| **SHALLOW VALLEY RANCH PARTIES:** |
| Address for notice for each Shallow Valley Ranch party: |
| c/o Shallow Valley Owners |
| P.O. Box 3327 |
| Midland, Texas 79702 |
| Attention: Richard Coats |
| Electronic mail: <u>richard@ogxresources.com</u> |

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*Signature Page to Registration Rights Agreement* 

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---

| |
|:---|
| **SHALLOW VALLEY RANCH PARTIES** |
| By: |
| Name: |
| Title: |

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*Signature Page to Registration Rights Agreement* 

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| |
|:---|
| **L&E PARTY**: |
| Address for notice for the L&E party: |
| Lea & Eddy Holdings, LLC |
| 413 Veterans Airpark Lane, Suite 200 |
| Midland, Texas 79705 |
| Attention: Elo Peter Omavuezi |
| Electronic mail: elo@hydrosourcelogistics.com |

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*Signature Page to Registration Rights Agreement* 

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---

| |
|:---|
| **LEA & EDDY HOLDINGS, LLC** |
| By: |
| Name: |
| Title: |

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*Signature Page to Registration Rights Agreement*

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**TCW PARTIES:**

*Signature Page to Registration Rights Agreement*

## Exhibit 5.1

**Exhibit 5.1**![LOGO](g37594g0313050103951.jpg)

, 2026

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, TX 77024

Re: Registration Statement on Form S-1

Ladies and Gentlemen:

We have acted as counsel for EagleRock Land, LLC, a Texas limited liability company (the "<u>Company</u>"), in connection with the proposed offer and sale (the "<u>Offering</u>") by the Company, pursuant to a prospectus forming a part of a Registration Statement on Form S-1, Registration No. 333- , originally filed with the U.S. Securities and Exchange Commission on , 2026 (such Registration Statement, as amended as of the effective date hereof, being referred to herein as the "<u>Registration Statement</u>"), of up to Class A shares representing limited liability company interests of the Company (the "<u>Class</u> <u>A Shares</u>").

In connection with this opinion, we have assumed that (i) the Registration Statement, and any amendments thereto (including post-effective amendments), will have become effective, (ii) the Amended and Restated Company Agreement of the Company (the "<u>Company LLCA</u>"), in the form filed as an exhibit to the Registration Statement, will become effective, (iii) the Class A Shares will be issued and sold in the manner described in the Registration Statement and the prospectus relating thereto, (iv) the formation and contribution transactions described in the Registration Statement will have been consummated in the manner described in the Registration Statement and the prospectus relating thereto and (v) a definitive underwriting agreement, in the form filed as an exhibit to the Registration Statement, with respect to the sale of the Class A Shares will have been duly authorized and validly executed and delivered by the Company and the other parties thereto.

In connection with the opinion expressed herein, we have examined, among other things, (i) the Certificate of Formation of the Company and the form of the Company LLCA, in each case, as filed as an exhibit to the Registration Statement, (ii) the records of corporate proceedings that have occurred prior to the date hereof with respect to the Offering, (iii) the Registration Statement, and (iv) the form of the underwriting agreement filed as an exhibit to the Registration Statement. We have also reviewed such questions of law as we have deemed necessary or appropriate. As to matters of fact relevant to the opinion expressed herein, and as to factual matters arising in connection with our examination of corporate documents, records and other documents and writings, we relied upon certificates and other communications of corporate officers of the Company, without further investigation as to the facts set forth therein. In making such examination and rendering the opinion set forth below, we have assumed without verification the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to originals of all documents submitted to us as copies and the legal capacity of all individuals executing any of the foregoing documents.

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| | |
|:---|:---|
| **Vinson & Elkins LLP Attorneys at Law**<br>Austin Dallas Denver Dubai Dublin Houston London Los Angeles<br>New York Richmond San Francisco Tokyo Washington | 845 Texas Avenue, Suite 4700<br>Houston, TX 77002<br>**Tel** +1.713.758.2222 **Fax** +1.713.758.2346 velaw.com |

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| | | |
|:---|:---|:---|
| ![LOGO](g37594g0313050103604.jpg) | EagleRock Land, LLC | , 2026 Page 2 |

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Based upon the foregoing, and subject to the qualifications and limitations stated herein, we are of the opinion that, the Class A shares have been duly authorized and are validly issued, fully paid and nonassessable.

The foregoing opinion is limited in all respects to the laws of the State of Texas and the federal laws of the United States of America, and we do not express any opinions as to the laws of any other jurisdiction. This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), and the foregoing opinion is limited to the matters expressly stated herein, and no opinion is to be inferred or implied beyond the opinion expressly set forth herein. We undertake no, and hereby disclaim any, obligation to make any inquiry after the date hereof or to advise you of any changes in any matter set forth herein, whether based on a change in the law, a change in any fact relating to the Company or any other person or any other circumstance.

We hereby consent to the statements with respect to us under the heading "Legal Matters" in the prospectus forming a part of the Registration Statement and to the filing of this opinion as an exhibit to the Registration Statement. In giving this consent, we do not admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act.

Very truly yours,

## Exhibit 10.1

**Exhibit 10.1** 

**FORM OF AMENDED AND RESTATED** 

**COMPANY AGREEMENT** 

**OF** 

**EAGLEROCK LAND OPERATING, LLC** 

**DATED AS OF , 2026** 

THE UNITS IN EAGLEROCK LAND OPERATING, LLC HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, THE SECURITIES LAWS OF ANY STATE, OR ANY OTHER APPLICABLE SECURITIES LAWS, AND HAVE BEEN OR ARE BEING ISSUED IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. SUCH UNITS MUST BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY APPLICABLE SECURITIES LAWS OF ANY STATE AND ANY OTHER APPLICABLE SECURITIES LAWS; (II) THE TERMS AND CONDITIONS OF THIS AGREEMENT; AND (III) ANY OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BETWEEN THE MANAGING MEMBER AND THE APPLICABLE MEMBER. THE UNITS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS, THIS AGREEMENT, AND ANY OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BY THE MANAGING MEMBER AND THE APPLICABLE MEMBER. THEREFORE, PURCHASERS AND OTHER TRANSFEREES OF SUCH UNITS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT OR ACQUISITION FOR AN INDEFINITE PERIOD OF TIME.

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**Table of Contents** 

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| | | |
|:---|:---|:---|
|  ARTICLE I DEFINITIONS  | ARTICLE I DEFINITIONS  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 | Definitions | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.2 | Construction | 14 |
|  ARTICLE II ORGANIZATION OF THE LIMITED LIABILITY COMPANY | ARTICLE II ORGANIZATION OF THE LIMITED LIABILITY COMPANY | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1 | Formation | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2 | Filing | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.3 | Name | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.4 | Registered Office; Registered Agent | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.5 | Principal Office; Principal Place of Business | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.6 | Purpose | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.7 | Powers | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.8 | Term | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.9 | Intent | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10 | Title to Company Assets | 16 |
|  ARTICLE III OWNERSHIP AND CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS  | ARTICLE III OWNERSHIP AND CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1 | Authorized Equity Securities; General Provisions With Respect to Equity Securities and Debt Securities | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2 | Voting Rights | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.3 | Capital Contributions; Unit Ownership | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.4 | Capital Accounts | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.5 | Other Matters | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.6 | Redemption of Units | 22 |
|  ARTICLE IV ALLOCATIONS OF PROFITS AND LOSSES  | ARTICLE IV ALLOCATIONS OF PROFITS AND LOSSES  | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1 | Profits and Losses | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.2 | Special Allocations | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.3 | Allocations for Tax Purposes in General | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.4 | Income Tax Allocations with Respect to Depletable Properties | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.5 | Other Allocation Rules | 36 |
|  ARTICLE V DISTRIBUTIONS  | ARTICLE V DISTRIBUTIONS  | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1 | Distributions | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2 | Tax-Related Distributions | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.3 | Distribution Upon Withdrawal | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.4 | Issuance of New Equity Securities | 38 |
|  ARTICLE VI MANAGEMENT  | ARTICLE VI MANAGEMENT  | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1 | The Managing Member; Fiduciary Duties | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2 | Officers | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3 | Warranted Reliance on Others | 40 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.4 | Indemnification | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.5 | Maintenance of Insurance or Other Financial Arrangements | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.6 | Resignation or Termination of Managing Member | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.7 | No Inconsistent Obligations | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.8 | Reclassification Events of PubCo | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.9 | Certain Costs and Expenses | 43 |
|  ARTICLE VII ROLE OF MEMBERS  | ARTICLE VII ROLE OF MEMBERS  | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1 | Rights or Powers | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2 | Voting | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.3 | Various Capacities | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.4 | Outside Activities | 45 |
|  ARTICLE VIII TRANSFERS OF INTERESTS  | ARTICLE VIII TRANSFERS OF INTERESTS  | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1 | Restrictions on Transfer | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2 | Notice of Transfer | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3 | Transferee Members | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4 | Legend | 48 |
|  ARTICLE IX ACCOUNTING; CERTAIN TAX MATTERS  | ARTICLE IX ACCOUNTING; CERTAIN TAX MATTERS  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.1 | Books of Account | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.2 | Tax Elections | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.3 | Tax Returns; Information | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.4 | Company Representative | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.5 | Withholding Tax Payments and Obligations | 51 |
|  ARTICLE X DISSOLUTION AND TERMINATION  | ARTICLE X DISSOLUTION AND TERMINATION  | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.1 | Liquidating Events | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.2 | Bankruptcy | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.3 | Procedure | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.4 | Rights of Members | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.5 | Notices of Dissolution | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.6 | Reasonable Time for Winding Up | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.7 | No Deficit Restoration | 55 |
|  ARTICLE XI GENERAL  | ARTICLE XI GENERAL  | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.1 | Amendments; Waivers | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.2 | Further Action | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.3 | Binding Effect | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.4 | Certain Representations by Members | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.5 | Entire Agreement | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.6 | Rights of Members Independent | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.7 | Governing Law | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.8 | Jurisdiction and Venue | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.9 | Headings | 58 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.10 | Counterparts | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.11 | Notices | 58.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.12 | Representation By Counsel; Interpretation | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.13 | Severability | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.14 | Consent of Members | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.15 | Expenses | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.16 | Waiver of Jury Trial | 59.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.17 | No Third Party Beneficiaries | 60.0 |

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**AMENDED AND RESTATED** 

**COMPANY AGREEMENT** 

**OF** 

**EAGLEROCK LAND OPERATING, LLC** 

This AMENDED AND RESTATED COMPANY AGREEMENT (as amended, supplemented or restated from time to time, this "**<u>Agreement</u>**") is entered into as of , 2026, among EagleRock Land Operating, LLC, a Texas limited liability company (the "**<u>Company</u>**"), EagleRock Land, LLC, a Texas limited liability company ("**<u>PubCo</u>**"), the Existing Owners (as defined herein), and each other Person who is or at any time becomes a Member in accordance with the terms of this Agreement and the TBOC. Capitalized terms used herein and not otherwise defined have the respective meanings set forth in <u>Section</u> <u>1.1</u>.

**RECITALS** 

**WHEREAS**, the Company was formed pursuant to a Certificate of Formation filed in the office of the Secretary of State of the State of Texas on February 26, 2026, as amended from time to time, and is governed by that certain Limited Liability Company Agreement dated as of February 26, 2026 (the "**<u>Existing LLC Agreement</u>**");

**WHEREAS**, the Persons party to this Agreement, among others, previously entered into that certain Contribution Agreement, dated as of the even date herewith, pursuant to which such Persons agreed that, among other things, in connection with the closing of PubCo's initial underwritten public offering (the "**<u>IPO</u>**") of Class A Shares, the Company shall be reorganized pursuant to the terms of such Contribution Agreement (the "**<u>Contribution Agreement</u>**");

**WHEREAS**, it is contemplated that PubCo will, subject to the approval of its Board (as defined herein), issue Class A Shares to the public for cash in the IPO;

**WHEREAS**, pursuant to the Contribution Agreement, (i) PubCo will contribute all of the net proceeds received by it from the IPO to the Company in exchange for a number of Units equal to the number of Class A Shares issued in the IPO and the sole managing member interest in the Company pursuant to which PubCo shall become the sole managing Member of the Company (in its capacity as managing Member as well as in any other capacity, the "**<u>Managing Member</u>**") and (ii) the Existing Owners will contribute certain entities and assets to the Company, as more fully described therein, in exchange for a number of Units set forth therein;

**WHEREAS**, each Unit (other than any Unit held by PubCo) may be redeemed, at the election of the holder of such Unit (together with the surrender and delivery by such holder of one Class B Share), for one Class A Share in accordance with the terms and conditions of this Agreement and the company agreement, as may be amended from time to time, of PubCo (the "**<u>PubCo Agreement</u>**"); and

**WHEREAS**, the Members of the Company desire to amend and restate the Existing LLC Agreement and adopt this Agreement, which shall supersede and replace the Existing LLC Agreement in its entirety as of the date even herewith.

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**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, and intending to be legally bound, the Existing LLC Agreement is hereby amended and restated and the parties hereby agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

Section 1.1 **<u>Definitions</u>**. As used in this Agreement and the Schedules and Exhibits attached to this Agreement, the following definitions shall apply:

"**<u>5% Owner</u>**" means any Member that together with its Affiliates, directly or indirectly, has a pecuniary interest in at least five percent (5%) of the Units outstanding at the time of the IPO, except for any member of the PubCo Holdings Group.

"**<u>Action</u>**" means any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Entity.

"**<u>Adjusted Basis</u>**" has the meaning given such term in Section 1011 of the Code.

"**<u>Adjusted Capital Account Deficit</u>**" means the deficit balance, if any, in such Member's Capital Account at the end of any Fiscal Year or other taxable period, with the following adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) credit to such Capital Account any amount that such Member is obligated to restore under Treasury Regulations
Section 1.704-1(b)(2)(ii)(c), as well as any addition thereto pursuant to the next to last sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) after taking into account thereunder any changes during such year in
Company Minimum Gain and Member Minimum Gain; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) debit to such Capital Account the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5)
and (6).

This definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

"**<u>Affiliate</u>**" has the meaning ascribed to such term in Rule 12b-2 promulgated under the Exchange Act.

"**<u>Agreement</u>**" is defined in the preamble to this Agreement.

"**<u>beneficially own</u>**" and "**<u>beneficial owner</u>**" shall be as defined in Rule 13d-3 of the rules promulgated under the Exchange Act.

"**<u>Board</u>**" means the board of directors of PubCo.

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"**<u>Business Day</u>**" means Monday through Friday of each week, except that a legal holiday recognized as such by the government of the United States of America or the State of New York shall not be regarded as a Business Day.

"**<u>Call Election Notice</u>**" is defined in <u>Section</u> <u>3.6(f)(ii)</u>.

"**<u>Call Right</u>**" is defined in <u>Section</u> <u>3.6(f)(</u><u>i</u><u>)</u>.

"**<u>Capital Account</u>**" means, with respect to any Member, the Capital Account maintained for such Member in accordance with <u>Section</u> <u>3.4</u>.

"**<u>Capital Contribution</u>**" means, with respect to any Member, the amount of cash and the initial Gross Asset Value of any property (other than cash) contributed to the Company by such Member. Any reference to the Capital Contribution of a Member will include any Capital Contributions made by a predecessor holder of such Member's Units to the extent that such Capital Contribution was made in respect of Units Transferred to such Member.

"**<u>Cash Election</u>**" is defined in <u>Section</u> <u>3.6(a)(iv)</u> and shall also include any election by PubCo to purchase Units for cash pursuant to an exercise of the Call Right set forth in <u>Section</u> <u>3.6(f)</u>.

"**<u>Cash Election Amount</u>**" means, with respect to a particular Redemption or an exercise of the Call Right for which a Cash Election has been made, an amount of cash equal to the product of (a) the number of Class A Shares that would have been received in such Redemption or exercise of the Call Right if a Cash Election had not been made and (b) the Unit Redemption Price.

"**<u>Change of Control Redemption Date</u>**" is defined in <u>Section</u> <u>3.6(h)</u>.

"**<u>Chief Executive Officer</u>**" means the Person appointed as the Chief Executive Officer of the Company by the Managing Member pursuant to <u>Section</u> <u>6.2</u>.

"**<u>Class</u> <u>A Shares</u>**" means, as applicable, (a) the Class A shares representing limited liability company interests of PubCo or (b) following any consolidation, merger, reclassification or other similar event involving PubCo, any shares or other securities of PubCo or any other Person or cash or other property that become payable in consideration for the Class A Shares or into which the Class A Shares are exchanged or converted as a result of such consolidation, merger, reclassification or other similar event.

"**<u>Class</u> <u>B Shares</u>**" means, as applicable, (a) the Class B shares representing limited liability company interests of PubCo or (b) following any consolidation, merger, reclassification or other similar event involving PubCo, any shares or other securities of PubCo or any other Person or cash or other property that become payable in consideration for the Class B Shares or into which the Class B Shares are exchanged or converted as a result of such consolidation, merger, reclassification or other similar event.

"**<u>Code</u>**" means the United States Internal Revenue Code of 1986, as amended from time to time (or any corresponding provisions of succeeding Law).

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"**<u>Commission</u>**" means the U.S. Securities and Exchange Commission, including any governmental body or agency succeeding to the functions thereof.

"**<u>Company</u>**" is defined in the preamble to this Agreement.

"**<u>Company Level Taxes</u>**" means any U.S. federal, state or local taxes, additions to tax, penalties and interest payable by the Company or any of its Subsidiaries as a result of any examination of the Company's or any of its Subsidiaries' affairs by any U.S. federal, state or local tax authorities, including resulting administrative and judicial proceedings under the Partnership Tax Audit Rules.

"**<u>Company Minimum Gain</u>**" has the meaning of "partnership minimum gain" set forth in Treasury Regulations Sections 1.704-2(b)(2) and 1.704-2(d). It is further understood that Company Minimum Gain shall be determined in a manner consistent with the rules of Treasury Regulations Section 1.704-2(b)(2), including the requirement that if the adjusted Gross Asset Value of property subject to one or more Nonrecourse Liabilities differs from its adjusted tax basis, Company Minimum Gain shall be determined with reference to such Gross Asset Value.

"**<u>Company Representative</u>**" has the meaning assigned to the term "partnership representative" in Section 6223 of the Code and any Treasury Regulations or other administrative or judicial pronouncements promulgated thereunder and any "designated individual," if applicable, as defined in the Treasury Regulations promulgated thereunder (including, in each case, any similar capacity or role under relevant state or local Law), as appointed pursuant to <u>Section</u> <u>9.4</u>.

"**<u>Contract</u>**" means any written agreement, contract, lease, sublease, license, sublicense, obligation, promise or undertaking.

"**<u>Contribution Agreement</u>**" is defined in the recitals to this Agreement.

"**<u>control</u>**" (including the terms "controlled by" and "under common control with"), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise.

"**<u>Corresponding</u> <u>OpCo</u> <u>Equity Securities</u>**" is defined in <u>Section</u> <u>3.1(e)</u>.

"**<u>Corresponding</u> <u>PubCo</u> <u>Equity Securities</u>**" is defined in <u>Section</u> <u>3.1(e)</u>.

"**<u>Covered Audit Adjustment</u>**" means an adjustment to any partnership-related item (within the meaning of Section 6241(2)(B) of the Code) to the extent such adjustment results in an "imputed underpayment" as described in Section 6225(b) of the Code or any analogous provision of state or local Law.

"**<u>Covered Person</u>**" is defined in <u>Section</u> <u>6.4(a)</u>.

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"**<u>Debt Securities</u>**" means any and all debt instruments or debt securities that are not convertible or exchangeable into Equity Securities.

"**<u>Depletable Property</u>**" means each separate oil and gas property as defined in Section 614 of the Code.

"**<u>Depreciation</u>**" means, for each Fiscal Year or other taxable period, an amount equal to the depreciation, amortization, or other cost recovery deduction (excluding depletion) allowable with respect to an asset for such Fiscal Year or other taxable period, except that (a) with respect to any such property the Gross Asset Value of which differs from its Adjusted Basis for U.S. federal income tax purposes and which difference is being eliminated by use of the "remedial method" pursuant to Treasury Regulations Section 1.704-3(d), Depreciation for such Fiscal Year or other taxable period shall be the amount of book basis recovered for such Fiscal Year or other taxable period under the rules prescribed by Treasury Regulations Section 1.704-3(d)(2), and (b) with respect to any other such property the Gross Asset Value of which differs from its Adjusted Basis for U.S. federal income tax purposes at the beginning of such Fiscal Year or other taxable period, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the U.S. federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year or other taxable period bears to such beginning Adjusted Basis; *provided*, *however*, that if the Adjusted Basis for U.S. federal income tax purposes of an asset at the beginning of such Fiscal Year or other taxable period is zero, Depreciation with respect to such asset shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Company Representative.

"**<u>Discount</u>**" means any underwriters' discounts or commissions and brokers' fees or commissions, including, for the avoidance of doubt, any deferred discounts or commissions and brokers' fees or commissions payable in connection with or as a result of any Public Offering.

"**<u>Economic Risk of Loss</u>**" has the meaning set forth in Treasury Regulations Section 1.752-2(a).

"**<u>Effective Time</u>**" means the time and date of the initial closing of the IPO.

"**<u>Equity Securities</u>**" means (a) with respect to a partnership, limited liability company or similar Person, any and all units, interests, rights to purchase, warrants, options or other equivalents of, or other ownership interests in, any such Person as well as debt or equity instruments convertible, exchangeable or exercisable into any such units, interests, rights or other ownership interests and (b) with respect to a corporation, any and all shares, interests, participation or other equivalents (however designated) of corporate stock, including all common stock and preferred stock, or warrants, options or other rights to acquire any of the foregoing, including any debt instrument convertible or exchangeable into any of the foregoing.

"**<u>ERISA</u>**" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder (or any corresponding provisions of succeeding Law).

"**<u>Excess Tax Amount</u>**" is defined in <u>Section</u> <u>9.5(c)</u>.

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"**<u>Exchange Act</u>**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (or any corresponding provisions of succeeding Law).

"**<u>Existing LLC Agreement</u>**" is defined in the recitals to this Agreement.

"**<u>Existing Owners</u>**" means (a) and (b) the Permitted Transferees of the Persons described in clause (a).

"**<u>Fair Market Value</u>**" means the fair market value of any property as determined in Good Faith by the Managing Member (after taking into account such factors as the Managing Member shall deem appropriate).

"**<u>Federal Bankruptcy Code</u>**" means Title 11 of the United States Code, as amended, and the rules and regulations promulgated thereunder (or any corresponding provisions of succeeding Law).

"**<u>Fiscal Year</u>**" means the fiscal year of the Company, which shall end on December 31 of each calendar year unless, for U.S. federal income tax purposes, another fiscal year is required. The Company shall have the same fiscal year for U.S. federal income tax purposes and for accounting purposes.

"**<u>Fund Entity</u>**" is defined in the definition of Transfer.

**<u>"</u><u>Good Faith</u>**" means, when applied to the actions or omissions of any Person, at the time of such action or omission such person held a subjective belief that such action is in, or not opposed to, the best interests of the Company and its Subsidiaries.

"**<u>Governmental Entity</u>**" means any court, administrative agency, regulatory body, commission or other governmental authority, board, bureau or instrumentality, domestic or foreign and any subdivision thereof.

"**<u>Gross Asset Value</u>**" means, with respect to any asset, the asset's Adjusted Basis for U.S. federal income tax purposes (which, in the case of any Depletable Property, shall be determined pursuant to Treasury Regulations Section 1.613A-3(e)(3)(iii)(c)), except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross Fair
Market Value of such asset as of the date of such contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Gross Asset Values of all Company assets shall be adjusted to equal their respective gross Fair Market
Values as of the following times: (i) the acquisition of an interest (or additional interest) in the Company by any new or existing Member in exchange for more than a de minimis Capital Contribution to the Company or in exchange for the
performance of more than a de minimis amount of services to or for the benefit of the Company; (ii) the distribution by the Company to a Member of more than a de minimis amount of Company assets as consideration for an interest in the Company;
(iii) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g)(1); (iv) the acquisition of an

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interest in the Company by any new or existing Member upon the exercise of a Non-Compensatory Option in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(s); or (v) any other event to the extent determined by the Company Representative to be permitted and necessary or appropriate to properly reflect Gross Asset Values in accordance with the standards set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(q); *provided*, *however*, that adjustments pursuant to <u>clauses</u> <u>(</u><u>i</u><u>)</u>, <u>(ii)</u> and <u>(iv)</u> above shall be made only if the Company Representative reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company. If any Non-Compensatory Options are outstanding upon the occurrence of an event described in this <u>paragraph</u> <u>(b)(</u><u>i</u><u>)</u> through <u>(b)(v)</u>, the Company shall adjust the Gross Asset Values of its properties in accordance with Treasury Regulations Sections 1.704-1(b)(2)(iv)(f)(1) and 1.704-1(b)(2)(iv)(h)(2);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Gross Asset Value of any Company asset distributed to any Member shall be adjusted to equal the gross Fair
Market Value of such asset on the date of such distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Gross Asset Values of Company assets shall be increased (or decreased) to reflect any adjustments to the
Adjusted Basis of such assets pursuant to Section 734(b) of the Code (including any such adjustments pursuant to Treasury Regulations Section 1.734-2(b)(1)), but only to the extent that such
adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and <u>subsection</u> <u>(g)</u> in the definition of "Profits" or "Losses"
below or <u>Section</u> <u>4.2(h)</u>; *provided*, *however*, that the Gross Asset Value of a Company asset shall not be adjusted pursuant to this subsection to the extent the Company Representative determines that an
adjustment pursuant to <u>subsection</u> <u>(b)</u> of this definition is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this <u>subsection</u> <u>(d)</u>;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if the Gross Asset Value of a Company asset has been determined or adjusted pursuant to <u>subsections (a)</u>, <u>(b)</u> or <u>(d)</u> of this definition of Gross Asset Value, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits, Losses, Simulated
Depletion and other items allocated pursuant to <u>Article</u> <u>IV</u>.

"**<u>Indebtedness</u>**" means (a) all indebtedness for borrowed money (including capitalized lease obligations, sale-leaseback transactions or other similar transactions, however evidenced), (b) any other indebtedness that is evidenced by a note, bond, debenture, draft or similar instrument, (c) notes payable and (d) lines of credit and any other agreements relating to the borrowing of money or extension of credit.

"**<u>Interest</u>**" means the entire interest of a Member in the Company, including the Units and all of such Member's rights, powers and privileges under this Agreement and the TBOC.

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"**<u>Investment Company Act</u>**" means the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder (or any corresponding provisions of succeeding Law).

"**<u>IPO</u>**" is defined in the recitals to this Agreement.

"**<u>Law</u>**" means any statute, Law, ordinance, regulation, rule, code, order, requirement or rule of Law (including common Law) of any Governmental Entity.

"**<u>Legal Action</u>**" is defined in <u>Section</u> <u>11.8</u>.

"**<u>Liability</u>**" means any liability or obligation, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated and whether due or to become due, regardless of when asserted.

"**<u>Liquidating Event</u>**" is defined in <u>Section</u> <u>10.1</u>.

"**<u>Managing Member</u>**" is defined in the recitals to this Agreement.

"**<u>Member</u>**" means any Person that executes this Agreement as a Member, and any other Person admitted to the Company as an additional or substituted Member, that has not made a disposition of such Person's entire Interest.

"**<u>Member Minimum Gain</u>**" has the meaning ascribed to "partner nonrecourse debt minimum gain" set forth in Treasury Regulations Section 1.704-2(i). It is further understood that the determination of Member Minimum Gain and the net increase or decrease in Member Minimum Gain shall be made in the same manner as required for such determination of Company Minimum Gain under Treasury Regulations Sections 1.704-2(d) and 1.704-2(g)(3).

"**<u>Member Nonrecourse Debt</u>**" has the meaning of "partner nonrecourse debt" set forth in Treasury Regulations Section 1.704-2(b)(4).

"**<u>Member Nonrecourse Deductions</u>**" has the meaning of "partner nonrecourse deductions" set forth in Treasury Regulations Sections 1.704-2(i)(1) and 1.704-2(i)(2).

"**<u>Minority Member Redemption Date</u>**" is defined in <u>Section</u> <u>3.6(g)</u>.

"**<u>Minority Member Redemption Notice</u>**" is defined in <u>Section</u> <u>3.6(g)</u>.

"**<u>National Securities Exchange</u>**" means an exchange registered with the Commission under Section 6(a) of the Exchange Act.

"**<u>Non-Compensatory Option</u>**" has the meaning set forth in Treasury Regulations Section 1.721-2(f).

"**<u>Nonrecourse Deductions</u>**" has the meaning assigned that term in Treasury Regulations Section 1.704-2(b).

"**<u>Nonrecourse Liability</u>**" is defined in Treasury Regulations Section 1.704-2(b)(3).

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"**<u>Officer</u>**" is defined in <u>Section</u> <u>6.2(b)</u>.

"**<u>Opportunities Exempt Party</u>**" is defined in <u>Section</u> <u>7.4</u>.

"**<u>Partnership Tax Audit Rules</u>**" means Sections 6221 through 6241 of the Code, as amended, together with any final or temporary Treasury Regulations, Revenue Rulings, and case Law interpreting Sections 6221 through 6241 of the Code, as amended (and any analogous provision of state or local tax Law).

"**<u>Permitted Transferee</u>**" means, with respect to any Member, (a) any Affiliate of such Member, (b) any current or former officer, employee, manager, director, partner, shareholder, co-investor, affiliated investment fund, management entity or investment vehicle or member of such Member or any successor of such Persons, (c) any successor entity of such Member, (d) any Person established for the benefit of, and beneficially owned solely by, such Member, (e) with respect to any Member that is a natural person or of which a majority of the outstanding Equity Securities and voting power with respect to the election of directors (or the selection of any other similar governing body in the case of an entity other than a corporation) are beneficially owned by a single natural person, a trust established by or for the benefit of such natural person of which only such natural person and his immediate family members are beneficiaries, (f) upon the death of any Member that is a natural person, an executor, administrator or beneficiary of the estate of the deceased Member, and (g) any 5% Owner.

"**<u>Person</u>**" means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Exchange Act.

"**<u>Plan Asset Regulations</u>**" means the regulations issued by the U.S. Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations, or any successor regulations as the same may be amended from time to time.

"**<u>Proceeding</u>**" is defined in <u>Section</u> <u>6.4(a)</u>.

"**<u>Profits</u>**" or "**<u>Losses</u>**" means, for each Fiscal Year or other taxable period, an amount equal to the Company's taxable income or loss for such year or period, determined in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments (without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any income or gain of the Company that is exempt from U.S. federal income tax or otherwise described in
Section 705(a)(1)(B) of the Code and not otherwise taken into account in computing Profits or Losses shall be added to such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any expenditures of the Company described in Section 705(a)(2)(B) of the Code or treated as
Section 705(a)(2)(B) of the Code expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses, shall be subtracted from such taxable income or loss;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the event the Gross Asset Value of any Company asset is adjusted pursuant to <u>subsection (b)</u> or <u>(c)</u> of the definition of Gross Asset Value above, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the Gross Asset Value of the Company asset) or an item of loss (if the adjustment decreases the
Gross Asset Value of the Company asset) from the disposition of such asset and shall, except to the extent allocated pursuant to <u>Section</u> <u>4.2</u>, be taken into account for purposes of computing Profits or Losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) gain or loss resulting from any disposition of Company assets (other than Depletable Property) with respect to
which gain or loss is recognized for U.S. federal income tax purposes shall be computed with reference to the Gross Asset Value of the asset disposed of, notwithstanding that the adjusted tax basis of such asset differs from its Gross Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) gain resulting from any disposition of Depletable Property with respect to which gain is recognized for U.S.
federal income tax purposes shall be treated as being equal to the corresponding Simulated Gain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in lieu of the depreciation, amortization and other cost recovery deductions (excluding depletion) taken into
account in computing such taxable income or loss, there shall be taken into account Depreciation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent an adjustment to the adjusted tax basis of any asset pursuant to Section 734(b) of the Code
is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Account balances as a result of a distribution other than in liquidation of a Member's interest in the Company,
the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or an item of loss (if the adjustment decreases such basis) from the disposition of such asset and shall be taken into account for
purposes of computing Profits or Losses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any items of income, gain, loss or deduction that are specifically allocated pursuant to the provisions of <u>Section</u> <u>4.2</u> shall not be taken into account in computing Profits or Losses for any taxable year, but such items available to be specially allocated pursuant to <u>Section</u> <u>4.2</u> will be determined by
applying rules analogous to those set forth in <u>subparagraph</u> <u>s</u> <u>(a)</u> through <u>(g)</u> above.

"**<u>Property</u>**" means all real and personal property owned by the Company from time to time, including both tangible and intangible property.

"**<u>PubCo</u>**" is defined in the recitals to this Agreement.

"**<u>PubCo</u> <u>Agreement</u>**" is defined in the recitals to this Agreement.

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"**<u>PubCo</u> <u>Change of Control</u>**" means the acquisition of greater than fifty percent (50%) of the outstanding PubCo Shares entitled to vote in the election of directors of PubCo by any Person, other than the Existing Owners or an Affiliate of the Existing Owners, in a transaction approved by (i) the Board and (ii) so long as the Existing Owners, directly or indirectly, own at least percent (%) of the outstanding Units, the Existing Owners owning at least percent (%) of the Interests owned by all Existing Owners. Notwithstanding the foregoing, a "PubCo Change of Control" shall not be deemed to have occurred by virtue of the consummation of any transaction or series of related transactions immediately following which the beneficial holders of the Class A Shares, Class B Shares, or other Equity Securities of PubCo immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in and voting control over, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of PubCo immediately following such transaction or series of transactions.

"**<u>PubCo</u> <u>Change of Control Information</u>**" is defined in <u>Section</u> <u>3.6(h)</u>.

"**<u>PubCo</u> <u>Holdings Group</u>**" means PubCo and each Subsidiary of PubCo (other than the Company and its Subsidiaries), if any.

"**<u>PubCo</u> <u>Shares</u>**" means all classes and series of limited liability company interests of PubCo, including the Class A Shares and the Class B Shares.

"**<u>Public Offering</u>**" means an underwritten offering and sale of Equity Securities to the public pursuant to a registration statement, including a "bought" deal or "overnight" public offering.

"**<u>Reclassification Event</u>**" means any of the following: (a) any reclassification or recapitalization of PubCo Shares (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination or any transaction subject to <u>Section</u> <u>3.1(g))</u>, (b) any merger, consolidation or other combination involving PubCo, or (c) any sale, conveyance, lease, or other disposal of all or substantially all the properties and assets of PubCo to any other Person, in each of <u>clauses</u> <u>(a)</u>, <u>(b)</u> or <u>(c)</u>, as a result of which holders of PubCo Shares shall be entitled to receive cash, securities or other property for their PubCo Shares.

"**<u>Redeemed Units</u>**" is defined in <u>Section</u> <u>3.6(a)(iii)(A)</u>.

"**<u>Redeeming Member</u>**" is defined in <u>Section</u> <u>3.6(a)(i)</u>.

"**<u>Redemption</u>**" is defined in <u>Section</u> <u>3.6(a)(</u><u>i</u><u>)</u>.

"**<u>Redemption Contingency</u>**" is defined in <u>Section</u> <u>3.6(a)(iii)(C)</u>.

"**<u>Redemption Date</u>**" means (a) the later of (i) the date that is five (5) Business Days after the applicable Redemption Notice Date and (ii) if the Company or PubCo has made a valid Cash Election with respect to the relevant Redemption, the first (1<sup>st</sup>) Business Day on which the Company or PubCo has available funds to pay the Cash Election Amount, which in no event shall be more than ten (10) Business Days after the Redemption Notice Date, or (b) such later date (i) specified in the Redemption Notice or (ii) on which a Redemption Contingency is satisfied.

"**<u>Redemption Notice</u>**" is defined in <u>Section</u> <u>3.6(a)(iii)</u>.

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"**<u>Redemption Notice Date</u>**" is defined in <u>Section</u> <u>3.6(a)(iii)</u>.

"**<u>Registration Rights Agreement</u>**" means the Registration Rights Agreement, by and among PubCo and certain of the Members, to be entered into concurrently with the closing of the IPO.

"**<u>Regulatory Allocations</u>**" is defined in <u>Section</u> <u>4.2(j)</u>.

"**<u>Retraction Notice</u>**" is defined in <u>Section</u> <u>3.6(b)(</u><u>i</u><u>)</u>.

"**<u>Securities Act</u>**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (or any corresponding provisions of succeeding Law).

"**<u>Shareholder's Agreements</u>**" means those certain Shareholder's Agreements, dated as of the date even herewith, among PubCo and the Existing Owners.

"**<u>Simulated Basis</u>**" means the Gross Asset Value of any Depletable Property. The Simulated Basis of each Depletable Property shall be allocated to each Member pro rata, in accordance with the number of Units owned by such Member as of the time such Depletable Property is acquired by the Company (and any additions to such Simulated Basis resulting from expenditures required to be capitalized in such Simulated Basis shall be allocated among the Members in a manner designed to cause the Members' proportionate shares of such Simulated Basis to be in accordance with their proportionate ownership of Units as determined at the time of any such additions), and shall be reallocated among the Members pro rata, in accordance with the number of Units owned by such Member as determined immediately following the occurrence of an event giving rise to an adjustment to the Gross Asset Values of the Company's Depletable Properties pursuant to <u>clause</u> <u>(b)</u> of the definition of Gross Asset Value.

"**<u>Simulated Depletion</u>**" means, with respect to each Depletable Property, a depletion allowance computed in accordance with U.S. federal income tax principles (as if the Simulated Basis of the property were its Adjusted Basis) and in the manner specified in the Treasury Regulations Section 1.704-1(b)(2)(iv)(k)(2). For purposes of computing Simulated Depletion with respect to any Depletable Property, the Simulated Basis of such property shall be deemed to be the Gross Asset Value of such property, and in no event shall such allowance, in the aggregate, exceed such Simulated Basis.

"**<u>Simulated Gain</u>**" means the amount of gain realized from the sale or other disposition of Depletable Property as calculated in Treasury Regulations Section 1.704-1(b)(2)(iv)(k)(2).

"**<u>Simulated Loss</u>**" means the amount of loss realized from the sale or other disposition of Depletable Property as calculated in Treasury Regulations Section 1.704-1(b)(2)(iv)(k)(2).

"**<u>Subsidiary</u>**" means, with respect to any specified Person, any other Person with respect to which such specified Person (a) has, directly or indirectly, the power, through the ownership of securities or otherwise, to elect a majority of directors or similar managing body or (b) beneficially owns, directly or indirectly, a majority of such Person's Equity Securities.

"**<u>Tax Contribution Obligation</u>**" is defined in <u>Section</u> <u>9.5(c)</u>.

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"**<u>Tax Distributions</u>**" means any distributions required to be made pursuant to <u>Section</u> <u>5.2</u>.

"**<u>Tax Offset</u>**" is defined in <u>Section</u> <u>9.5(c)</u>.

"**<u>TBOC</u>**" means the Texas Business Organizations Code, as amended (or any corresponding provisions of succeeding Law).

"**<u>Trading Day</u>**" means a day on which the New York Stock Exchange or such other principal United States securities exchange on which the Class A Shares are listed or admitted to trading is open for the transaction of business (unless such trading shall have been suspended for the entire day).

"**<u>Transfer</u>**" means, when used as a noun, any voluntary or involuntary, direct or indirect (whether through a change of control of the Transferor or any Person that controls the Transferor, the issuance or transfer of Equity Securities of the Transferor, by operation of Law or otherwise), transfer, sale, pledge or hypothecation or other disposition and, when used as a verb, voluntarily or involuntarily, directly or indirectly (whether through a change of control of the Transferor or any Person that controls the Transferor, the issuance or transfer of Equity Securities of the Transferor or any Person that controls the Transferor, by operation of Law or otherwise), to transfer, sell, pledge or hypothecate or otherwise dispose of; provided, however, that notwithstanding anything in this Agreement to the contrary, "Transfer" shall be deemed not to include (a) any issuance or other Transfer of Equity Securities in a Member or any Person that directly or indirectly controls a Member; or (b) any issuance or other Transfer of Equity Securities or other interest (i) in any investment fund or alternative investment vehicle of an investment fund that is managed or advised by the investment manager of any Member or its Affiliates or by an Affiliate of such investment manager (a "**<u>Fund Entity</u>**"), or (ii) in any Person that directly or indirectly owns any equity or voting interest in such Fund Entity (which, for the avoidance of doubt, includes any limited partner, general partner or managing member of any such Fund Entity and any Person who directly or indirectly owns any equity or voting interest in such limited partner, general partner or managing member).

The terms "Transferee," "Transferor," "Transferred," and other forms of the word "Transfer" shall have the correlative meanings.

"**<u>Transfer Agent</u>**" is defined in <u>Section</u> <u>3.6(a)(iii)</u>.

"**<u>Treasury Regulations</u>**" means pronouncements, as amended from time to time, or their successor pronouncements, which clarify, interpret and apply the provisions of the Code, and which are designated as "Treasury Regulations" by the United States Department of the Treasury.

"**<u>Uniform Commercial Code</u>**" means the Uniform Commercial Code or any successor provision thereof as the same may from time to time be in effect in the State of Texas.

"**<u>Unit Redemption Price</u>**" means, with respect to a particular Redemption or an exercise of the Call Right for which a Cash Election has been made, (a) if the Class A Shares trade on a securities exchange or automated or electronic quotation system, the average of the volume-weighted closing price for a Class A Share on the principal U.S. securities exchange or automated or electronic quotation system on which the Class A Shares trade, as reported by Bloomberg, L.P.,

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or its successor, for each of the ten consecutive full Trading Days ending on and including the last full Trading Day immediately prior to the Redemption Notice Date, subject to appropriate and equitable adjustment for any stock splits, reverse splits, share dividends or similar events affecting the Class A Shares and (b) if the Class A Shares no longer trade on a securities exchange or automated or electronic quotation system, an amount equal to the Fair Market Value of one Class A Share, as determined by the Managing Member in Good Faith, that would be obtained in an arms' length transaction for cash between an informed and willing buyer and an informed and willing seller, neither of whom is under any compulsion to buy or sell, and without regard to the particular circumstances of the buyer or seller; *provided* that if PubCo conducts a Public Offering to fund any Cash Election Amount as permitted by this Agreement, then the Unit Redemption Price shall be net of each Redeeming Member's pro rata share of any Discount in connection with such Public Offering.

"**<u>Units</u>**" means the Units issued under this Agreement and shall also include any Equity Security of the Company issued in respect of or in exchange for any such Units, whether by way of dividend or other distribution, split, recapitalization, merger, rollup transaction, consolidation, conversion or reorganization.

"**<u>U.S. GAAP</u>**" means United States generally accepted accounting principles, as in effect from time to time, consistently applied.

"**<u>Winding-Up Member</u>**" is defined in <u>Section</u> <u>10.3(a)</u>.

Section 1.2 **<u>Construction</u>**. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all accounting terms not otherwise defined herein have the meanings assigned under U.S. GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all references to currency, monetary values and dollars set forth herein shall mean United States dollars and
all payments hereunder shall be made in United States dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an
Article or Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whenever the words "include," "includes" or "including" are used in this
Agreement, they shall be deemed to be followed by the words "without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "or" is not exclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the terms "in writing," "written communications," "written notice" and
words of similar import shall be deemed satisfied under this Agreement by use of e-mail and other forms of electronic communication; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the words "hereof," "herein" and "hereunder" and words of similar import,
when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement.

**ARTICLE II** 

**ORGANIZATION OF THE LIMITED LIABILITY COMPANY** 

Section 2.1 **<u>Formation</u>**. The Company has been formed as a limited liability company pursuant to the provisions of the TBOC upon the terms, provisions and conditions set forth in this Agreement.

Section 2.2 **<u>Filing</u>**. The Company's Certificate of Formation has been filed with the Secretary of State of the State of Texas in accordance with the TBOC. The Members shall execute such further documents (including amendments to such Certificate of Formation) and take such further action as is appropriate to comply with the requirements of Law for the formation or operation of a limited liability company in Texas and in all states and counties where the Company may conduct its business.

Section 2.3 **<u>Name</u>**. The name of the Company is "EagleRock Land Operating, LLC." The Company's business may be conducted under any other name or names, as determined by the Managing Member. The words "Limited Liability Company," "LLC," or similar words or letters shall be included in the Company's name where necessary for the purpose of complying with the Laws of any jurisdiction that so requires. The Managing Member may change the name of the Company at any time and from time to time and shall notify the Members of such change in the next regular communication to the Members.

Section 2.4 **<u>Registered Office; Registered Agent</u>**. Unless and until changed by the Managing Member, the registered office of the Company in the State of Texas shall be located at 1999 Bryan St., Suite 900, Dallas, Texas 75201-3136, Dallas County, and the registered agent for service of process on the Company in the State of Texas at such registered office shall be Capitol Services, Inc.

Section 2.5 **<u>Principal Office; Principal Place of Business</u>**. Unless and until changed by the Managing Member, the principal office of the Company shall be located at 9655 Katy Freeway, Suite 375, Houston, Texas 77024. The Company may maintain offices at such other place or places within or outside the State of Texas as the Managing Member may designate. The principal place of business of the Company shall be located in such place as is determined by the Managing Member from time to time.

Section 2.6 **<u>Purpose</u>**. The purpose of the Company shall be to engage in any business activity that lawfully may be conducted by a limited liability company organized under the Laws of the State of Texas and, in connection therewith, to exercise all of the rights and powers conferred upon the Company pursuant to the agreements relating to such business activity.

Section 2.7 **<u>Powers</u>**. The Company shall be empowered and authorized to do, take, and engage in, any and all acts and things necessary, appropriate, desirable, advisable, ancillary or incidental for the furtherance and accomplishment of the purposes described in <u>Section</u> <u>2.6</u>.

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Section 2.8 **<u>Term</u>**. The Company's term commenced upon the filing of the Certificate of Formation in accordance with the TBOC and shall be perpetual, unless and until it is dissolved, its affairs are wound up and it is terminated in accordance with the provisions of <u>Article</u> <u>X</u>. The existence of the Company as a separate legal entity shall continue until the cancellation of the Certificate of Formation as provided in the TBOC.

Section 2.9 **<u>Intent</u>**. It is the intent of the Members that the Company be operated in a manner consistent with its treatment as a "partnership" for U.S. federal and state income tax purposes. It is also the intent of the Members that the Company not be operated or treated as a "partnership" for purposes of Section 303 of the Federal Bankruptcy Code. Neither the Company nor any Member shall take any action inconsistent with the express intent of the parties hereto as set forth in this <u>Section</u> <u>2.9</u>.

Section 2.10 **<u>Title to Company Assets</u>**. Title to Company assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Company as an entity, and no Member or Officer, individually or collectively, shall have any ownership interest in such Company assets or any portion thereof. Title to any or all of the Company assets may be held in the name of the Company or one or more nominees, as the Managing Member may determine. All Company assets shall be recorded as the property of the Company in its books and records, irrespective of the name in which record title to such Company assets is held.

**ARTICLE III** 

**OWNERSHIP AND CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS** 

Section 3.1 **<u>Authorized Equity Securities; General Provisions With Respect to Equity Securities and Debt Securities</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of this Agreement, the Company shall be authorized to issue from time to time such
number of Units and such other Equity Securities as the Managing Member shall determine in accordance with <u>Section</u> <u>3.3</u>. Each authorized Unit and other Equity Security may be issued pursuant to such agreements as the
Managing Member shall approve, including pursuant to options and warrants. The Company may reissue any Units or other Equity Securities that have been repurchased or acquired by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except to the extent explicitly provided otherwise herein (including <u>Section</u> <u>3.3</u>),
each outstanding Unit shall be identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Initially, none of the Units or other Equity Securities will be represented by certificates. If the Managing
Member determines that it is in the interest of the Company to issue certificates representing the Units or other Equity Securities, certificates will be issued and the Units or other Equity Securities will be represented by those certificates, and
this Agreement shall be amended as necessary or desirable to reflect the issuance of certificated Units or other Equity Securities for purposes of the Uniform Commercial Code. Nothing contained in this <u>Section</u> <u>3.1(c)</u> shall
be deemed to authorize or permit any Member to Transfer its Units or other Equity Securities except as otherwise permitted under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The total number of Units or other Equity Securities issued and outstanding and held initially by the Members
as of the date hereof is set forth on <u>Exhibit A</u>. The Company shall, without the requirement of additional action or approval by the Managing Member or any other Person, update such schedule of Members in the books and records to reflect any
Transfers of Interests, the issuance of additional Units or other Equity Securities and subdivisions or combinations of Units, in each case, from time to time in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, at any time after the Effective Time, PubCo issues a Class A Share or any other Equity Security of
PubCo (other than Class B Shares), (i) one or more members of the PubCo Holdings Group shall concurrently contribute to the Company the net proceeds (in cash or other property, as the case may be), if any, received by PubCo for such
Class A Share or other Equity Security and (ii) the Company shall concurrently issue the relevant member(s) of the PubCo Holdings Group (and the Company shall be deemed to have automatically issued to such member(s) of the PubCo Holdings
Group without further action or agreement), in accordance with the contributions made by each such member pursuant to clause (i), one (1) Unit (if PubCo issues a Class A Share), or such other Equity Security of the Company (if PubCo issues
Equity Securities other than Class A Shares) corresponding to the Equity Securities issued by PubCo, and with substantially the same rights to dividends and distributions (including distributions upon liquidation, but taking into account
differences resulting from any tax or other liabilities borne by PubCo) and other economic rights as those of such Equity Securities of PubCo to be issued ("  **<u>Corresponding</u> <u>OpCo</u> <u>Equity Securities</u>** "); *provided* that if PubCo issues any Class A Shares in order to acquire or fund the acquisition from a Member (other than any member of the PubCo Holdings Group) of a number of Units (and Class B Shares)
equal to the number of Class A Shares so issued, then the Company shall not issue any new Units in connection therewith and, where such Class A Shares have been issued for cash to fund such an acquisition by any member of the PubCo
Holdings Group pursuant to a Cash Election, the PubCo Holdings Group shall not be required to transfer such net proceeds to the Company, and such net proceeds shall instead be transferred by such member of the PubCo Holdings Group to such Member as
consideration for such acquisition as required pursuant to <u>Section</u> <u>3.6(a)(iv)</u>. For the avoidance of doubt, if PubCo issues any Class A Shares or other Equity Security for cash to be used to fund the direct or indirect
acquisition by any member of the PubCo Holdings Group of any Person or the assets of any Person, then the PubCo Holdings Group shall not be required to transfer such cash proceeds to the Company but instead such member of the PubCo Holdings Group
shall be required to contribute (or cause to be contributed) such Person or the material assets and liabilities of such Person to the Company or any of its Subsidiaries. Notwithstanding the foregoing, this <u>Section</u> <u>3.1(e)</u> shall not apply to the issuance and distribution to holders of PubCo Shares of rights to purchase Equity Securities of PubCo under a "poison pill" or similar shareholders rights plan (and upon any Redemption of Units for Class A
Shares, such Class A Shares will

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be issued together with a corresponding right under such plan), or to the issuance under PubCo's employee benefit plans of any warrants, options, other rights to acquire Equity Securities of PubCo or rights or property that may be converted into or settled in Equity Securities of PubCo, but shall in each of the foregoing cases apply to the issuance of Equity Securities of PubCo in connection with the exercise or settlement of such rights, warrants, options or other rights or property. Except pursuant to <u>Section</u> <u>3.6</u>, (x) the Company may not issue any additional Units to any member of the PubCo Holdings Group unless substantially simultaneously therewith a member of the PubCo Holdings Group issues or sells an equal number of newly-issued Class A Shares to another Person, and (y) the Company may not issue any other Equity Securities of the Company to any member of the PubCo Holdings Group unless substantially simultaneously therewith a member of the PubCo Holdings Group issues or sells, to another Person, an equal number of newly-issued shares of a new class or series of Equity Securities of PubCo or such member of the PubCo Holdings Group with substantially the same rights to dividends and distributions (including distributions upon liquidation, but taking into account differences resulting from any tax or other liabilities borne by PubCo) and other economic rights as those of such Equity Securities of the Company ("**<u>Corresponding</u> <u>PubCo</u> <u>Equity Securities</u>**"). If at any time any member of the PubCo Holdings Group issues Debt Securities, such member of the PubCo Holdings Group shall transfer to the Company (in a manner to be determined by the Managing Member in its reasonable discretion) the proceeds received by such member of the PubCo Holdings Group in exchange for such Debt Securities (or if such proceeds are used to fund the direct or indirect acquisition by a member of the PubCo Holdings Group of any Person or the assets of any Person, then such Person or the material assets and liabilities of such Person) in a manner that directly or indirectly burdens the Company with the repayment of the Debt Securities. In the event any Equity Security outstanding at PubCo is exercised or otherwise converted and, as a result, any Class A Shares or other Equity Securities of PubCo are issued, (1) the corresponding Equity Security outstanding at the Company shall be similarly exercised or otherwise converted, as applicable, and an equivalent number of Units or other Equity Securities of the Company shall be issued to the PubCo Holdings Group as contemplated by the first sentence of this <u>Section</u> <u>3.1(e)</u>, and (2) the PubCo Holdings Group shall concurrently contribute to the Company the net proceeds, if any, received by the PubCo Holdings Group from any such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No member of the PubCo Holdings Group may redeem, repurchase or otherwise acquire (other than from another
member of the PubCo Holdings Group) (i) except pursuant to <u>Section</u> <u>3.6</u>, any Class A Shares (including upon forfeiture of any unvested Class A Shares) unless substantially simultaneously the Company redeems,
repurchases or otherwise acquires from the PubCo Holdings Group an equal number of Units for the same price per security or (ii) any other Equity Securities of PubCo, unless substantially simultaneously the Company redeems, repurchases or
otherwise acquires from the PubCo Holdings Group an equal number of Corresponding OpCo Equity Securities for the same price per security. The Company may not redeem, repurchase or otherwise acquire (x) except pursuant

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to <u>Section</u> <u>3.6</u>, any Units from the PubCo Holdings Group unless substantially simultaneously the PubCo Holdings Group redeems, repurchases or otherwise acquires an equal number of Class A Shares for the same price per security from holders thereof, or (y) any other Equity Securities of the Company from the PubCo Holdings Group unless substantially simultaneously the PubCo Holdings Group redeems, repurchases or otherwise acquires for the same price per security an equal number of Corresponding PubCo Equity Securities. Notwithstanding the foregoing, to the extent that any consideration payable by the PubCo Holdings Group in connection with the redemption or repurchase of any Class A Shares or other Equity Securities of the PubCo Holdings Group consists (in whole or in part) of Class A Shares or such other Equity Securities (including in connection with the cashless exercise of an option or warrant), then the redemption or repurchase of the corresponding Units or other Equity Securities of the Company shall be effectuated in an equivalent manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Except pursuant to <u>Section</u> <u>3.1(</u> <u>i</u> <u>)</u>, the Company shall not in any manner
effect any subdivision (by any equity split, equity distribution, reclassification, recapitalization or otherwise) or combination (by reverse equity split, reclassification, recapitalization or otherwise) of the outstanding Units or other Equity
Securities of the Company unless accompanied by an identical subdivision or combination, as applicable, of the outstanding PubCo Shares or Corresponding PubCo Equity Securities, with corresponding changes made with respect to any other exchangeable
or convertible securities. Unless in connection with any action taken pursuant to <u>Section</u> <u>3.1(</u> <u>i</u> <u>)</u>, PubCo shall not in any manner effect any subdivision (by any equity split, equity distribution,
reclassification, recapitalization or otherwise) or combination (by reverse equity split, reclassification, recapitalization or otherwise) of the outstanding PubCo Shares or other Equity Securities of PubCo unless accompanied by an identical
subdivision or combination, as applicable, of the outstanding Units or Corresponding OpCo Equity Securities, with corresponding changes made with respect to any other exchangeable or convertible securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding any other provision of this Agreement, the Company may redeem Units from the PubCo Holdings
Group for cash to fund any acquisition by the PubCo Holdings Group of another Person or the assets and liabilities of such Person, *provided* that promptly after such redemption and acquisition, the PubCo Holdings Group contributes or causes to
be contributed, directly or indirectly, such Person or the assets and liabilities of such Person to the Company or any of its Subsidiaries in exchange for a number of Units equal to the number of Units so redeemed. The Company may redeem Units from
the PubCo Holdings Group for all or a portion of the stock or other equity interests of a Subsidiary of the Company held by the Company; *provided* that, promptly after such redemption and any related transactions, the PubCo Holdings Group
contributes or causes to be contributed, directly or indirectly, the material assets and liabilities of such Subsidiary to the Company or any of its other Subsidiaries in exchange for a number of Units equal to the number of Units so redeemed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any other provision of this Agreement (including <u>Section</u> <u>3.1(e)</u>), if
the PubCo Holdings Group acquires or holds any material amount of cash in excess of any monetary obligations PubCo reasonably anticipates, PubCo may: (i) contribute such excess cash amount to the Company in exchange for a number of Units or
other Equity Securities of the Company, and distribute to the holders of Class A Shares such number of Class A Shares (if the Company issues Units to PubCo) or Corresponding PubCo Equity Securities (if the Company issues Equity Securities
of the Company other than Units), or (ii) use or cause to be used such excess cash amount in such manner, and make such adjustments to or take such other actions with respect to the capitalization of PubCo and the Company and to the one-to-one exchange ratio between Units and Class A Shares, as PubCo (including in its capacity as the Managing Member) in Good Faith determines to be fair and reasonable
to the holders of PubCo Shares and to the Members to preserve the intended economic effect of this <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.6</u>, and the other provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Upon any redemption, repurchase, exchange or other acquisition and/or cancellation by, or forfeiture to, the
Company of Units held by any Person (other than as a result of any restructuring where substantially similar interests are issued to the holders of Units), an equal number of Class B Shares held by such Person shall be automatically forfeited
and cancelled for no consideration.

Section 3.2 **<u>Voting Rights</u>**. No Member has any voting right except with respect to those matters specifically reserved for a Member vote under the TBOC and for matters expressly requiring the approval of Members under this Agreement. Except as otherwise required by the TBOC, each Unit will entitle the holder thereof to one vote on all matters to be voted on by the Members. Except as otherwise expressly provided in this Agreement, the holders of Units having voting rights will vote together as a single class on all matters to be approved by the Members.

Section 3.3 **<u>Capital Contributions; Unit Ownership</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Capital Contributions*. Except as otherwise set forth in <u>Section</u> <u>3.1(e)</u> with
respect to the obligations of the PubCo Holdings Group, no Member shall be required to make additional Capital Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Issuance of Additional Units or Interests*. Except as otherwise expressly provided in this Agreement, the
Managing Member shall have the right to authorize and cause the Company to issue on such terms (including price) as may be determined by the Managing Member (i) subject to the limitations of <u>Section</u> <u>3.1</u>, additional
Units or other Equity Securities in the Company (including creating preferred interests or other classes or series of interests having such rights, preferences and privileges as determined by the Managing Member, which rights, preferences and
privileges may be senior to the Units), and (ii) obligations, evidences of Indebtedness or other securities or interests convertible or exchangeable for Units or other Equity Securities in the Company; *provided* that, at any time
following the date hereof, in each case the Company shall not issue Equity Securities in the Company to any Person unless such Person shall have executed a counterpart to

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this Agreement and all other documents, agreements or instruments deemed necessary or desirable by the Managing Member. Upon such issuance and execution, such Person shall be admitted as a Member of the Company. In that event, the Managing Member shall update the Company's books and records to reflect such additional issuances. Subject to <u>Section</u> <u>11.1</u>, the Managing Member is hereby authorized to amend this Agreement to set forth the designations, preferences, rights, powers and duties of such additional Units or other Equity Securities in the Company, or such other amendments that the Managing Member determines to be otherwise necessary or appropriate in connection with the creation, authorization or issuance of, any class or series of Units or other Equity Securities in the Company pursuant to this <u>Section</u> <u>3.3(b)</u>; *provided* that, notwithstanding the foregoing, the Managing Member shall have the right to amend this Agreement as set forth in this sentence without the approval of any other Person (including any Member) and notwithstanding any other provision of this Agreement (other than <u>Section</u> <u>11.1</u>) if the Managing Member so determines that such amendment is necessary or appropriate, and then only to the extent it so determines to be necessary or appropriate, in order to consummate any offering of PubCo Shares or other Equity Securities of PubCo *provided* that the designations, preferences, rights, powers and duties of any such additional Units or other Equity Securities of the Company as set forth in such amendment are substantially similar to those applicable to such PubCo Shares or other Equity Securities of PubCo.

Section 3.4 **<u>Capital Accounts</u>**. A Capital Account shall be maintained for each Member in accordance with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv) and, to the extent consistent with such regulations, the other provisions of this Agreement. Each Member's Capital Account shall be (a) increased by (i) allocations to such Member of Profits pursuant to <u>Section</u> <u>4.1</u> and any other items of income or gain allocated to such Member pursuant to <u>Section</u> <u>4.2</u>, (ii) the amount of cash or the initial Gross Asset Value of any asset (net of any Liabilities assumed by the Company and any Liabilities to which the asset is subject) contributed to the Company by such Member, and (iii) any other increases allowed or required by Treasury Regulations Section 1.704-1(b)(2)(iv), and (b) decreased by (i) allocations to such Member of Losses pursuant to <u>Section</u> <u>4.1</u> and any other items of deduction or loss allocated to such Member pursuant to the provisions of <u>Section</u> <u>4.2</u>, (ii) the amount of any cash or the Gross Asset Value of any asset (net of any Liabilities assumed by the Member and any Liabilities to which the asset is subject) distributed to such Member, and (iii) any other decreases allowed or required by Treasury Regulations Section 1.704-1(b)(2)(iv). In the event of a Transfer of Units made in accordance with this Agreement (including a deemed Transfer for U.S. federal income tax purposes as described in <u>Section</u> <u>3.6(a)(v)</u>), the Capital Account of the Transferor that is attributable to the Transferred Units shall carry over to the Transferee Member in accordance with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)(l).

Section 3.5 **<u>Other Matters</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Member shall be entitled to demand or to receive a return on or of its Capital Contributions or withdraw
from the Company without the written consent of the Managing Member. Under circumstances requiring a return of any Capital Contributions, no Member has the right to receive property other than cash.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Member shall receive any interest, salary, compensation, draw or reimbursement with respect to its Capital
Contributions or its Capital Account, or for services rendered or expenses incurred on behalf of the Company or otherwise in its capacity as a Member, except as otherwise provided in <u>Section</u> <u>5.2</u>, <u>Section</u> <u>6.9</u> or as otherwise contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Liability of each Member shall be limited as set forth in the TBOC and other applicable Law and, except as
expressly set forth in this Agreement or required by Law, no Member (or any of its Affiliates) shall be personally liable, whether to the Company, any of the other Members, the creditors of the Company, or any other third party, for any debt or
Liability of the Company, whether arising in contract, tort or otherwise, solely by reason of being a Member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as otherwise required by the TBOC, a Member shall not be required to restore a deficit balance in such
Member's Capital Account, to lend any funds to the Company or, except as otherwise set forth herein, to make any additional contributions or payments to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall not be obligated to repay any Capital Contributions of any Member.

Section 3.6 **<u>Redemption of Units</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Redemption Right</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the terms and subject to the conditions set forth in this <u>Section</u> <u>3.6</u>, each of
the Members (other than the PubCo Holdings Group) (any such Member, a "  **<u>Redeeming Member</u>**") shall be entitled to cause the Company to redeem all or a portion of such Member's Units (together with the surrender and
delivery of the same number of Class B Shares) for an equivalent number of Class A Shares (a "  **<u>Redemption</u>**") or, at the Company's election made in accordance with <u>Section</u> <u>3.6(a)(iv)</u>,
cash equal to the Cash Election Amount calculated with respect to such Redemption. Upon the Redemption of all of a Member's Units, such Member shall, for the avoidance of doubt, cease to be a Member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise approved by the Managing Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Except as set forth in <u>Section</u> <u>3.6(a)(ii)(B)</u>, or <u>(C)</u>, with respect to each
Redemption, a Redeeming Member shall be (1) required to redeem at least a number of Units equal to the lesser of 150,000 Units and all of the Units then held by such Redeeming Member and (2) permitted to effect a Redemption of Units no
more frequently than once per calendar quarter. The Managing Member may, if it reasonably believes it necessary to be in compliance with federal securities Law or if it determines it to be in the interest of the Company for administrative purposes
to coordinate redemptions by multiple Members or otherwise, adopt a policy to limit Redemptions pursuant to this <u>Section</u> <u>3.6(a)(ii)(A)</u> to a particular date or period during each quarter by providing prior advance notice of
such limitation to all Members.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Subject to <u>Section</u> <u>3.6(k)</u>, a Redeeming Member may exercise its Redemption right with
respect to any of the then-held Units of such Member if such Redemption right is exercised in connection with a valid exercise of such Member's rights to have the Class A Shares issuable in connection with such Redemption to participate
in an offering of securities pursuant to, and in accordance with, the Registration Rights Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Subject to <u>Section</u> <u>3.6(k)</u>, a Redeeming Member may exercise its Redemption right no
more frequently than once per calendar month with respect to any Units reasonably expected by the Redeeming Member to provide Class A Shares to be sold pursuant to a trading plan adopted pursuant to Rule 10b5-1 of the Exchange Act with respect to the Class A Shares; *provided*, that the Managing Member approved such trading plan for purposes of this Agreement in advance of its adoption (or
amendment, if applicable) (such approval not to be unreasonably withheld, conditioned or delayed). The Managing Member may, if it reasonably believes it necessary to be in compliance with federal securities Law or if it determines it to be in the
interest of the Company for administrative purposes to coordinate redemptions by multiple Members or otherwise, adopt a policy to limit Redemptions pursuant to this <u>Section</u> <u>3.6(a)(ii)(C)</u> to a particular date or period
during each calendar month by providing prior advance notice of such limitation to all Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In order to exercise any Redemption right under <u>Section</u> <u>3.6(a)(</u> <u>i</u> <u>)</u>, the
Redeeming Member shall provide written notice (the "  **<u>Redemption Notice</u>**") to the Company at least five (5) Business Days prior to the Redemption Date, with a copy to PubCo (the date of delivery of such Redemption Notice,
the "  **<u>Redemption Notice Date</u>** "), stating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the number of Units (together with the surrender and delivery of an equal number of Class B Shares) the
Redeeming Member elects to have the Company redeem (the "  **<u>Redeemed Units</u>** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if the Class A Shares to be received are to be issued other than in the name of the Redeeming Member, the
name(s) of the Person or Persons in whose name or on whose order the Class A Shares are to be issued;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) whether the exercise of the Redemption right is to be contingent (including as to timing) upon the closing of a
Public Offering of the Class A Shares for which the Units will be redeemed or the closing of an announced merger, consolidation or other transaction or event to which PubCo is a party in which the Class A Shares would be exchanged or
converted or become exchangeable for or convertible into cash or other securities or property (such contingency, a "  **<u>Redemption Contingency</u>** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if the Redeeming Member requires the Redemption to take place on a specific Business Day, such Business Day, *provided that*, any such specified Business Day shall not be earlier than the date that would otherwise apply pursuant to the definition of Redemption Date.

If the Redeemed Units (and/or the Class B Shares to be transferred and surrendered) are represented by a certificate or certificates, prior to the Redemption Date, the Redeeming Member shall also present and surrender such certificate or certificates representing such Units (and/or Class B Shares) during normal business hours at the principal executive offices of the Company, or if any agent for the registration or transfer of Class A Shares is then duly appointed and acting (the "**<u>Transfer Agent</u>**"), at the office of the Transfer Agent. If required by the Managing Member, any certificate for Units and any certificate for Class B Shares (in each case, if certificated) surrendered to the Company hereunder shall be accompanied by instruments of transfer, in forms reasonably satisfactory to the Managing Member and the Transfer Agent, duly executed by the Redeeming Member or the Redeeming Member's duly authorized representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon receipt of a Redemption Notice, the Company shall be entitled to elect (a "  **<u>Cash Election</u>**") to settle the Redemption by delivering to the Redeeming Member, in lieu of all, but not less than all, of the applicable number of Class A Shares that would be received in such Redemption, an amount of cash equal to the
Cash Election Amount for such Redemption. In order to make a Cash Election with respect to a Redemption, the Company must provide written notice of such election to the Redeeming Member (with a copy to PubCo) no later than the second (2<sup>nd</sup>) Business Day prior to the Redemption Date. If the Company fails to provide such written notice prior to such time, it shall not be entitled to make a Cash Election with respect to such Redemption
without the written consent of the Redeeming Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For U.S. federal income (and applicable state and local) tax purposes, each of the Redeeming Member, the
Company, and PubCo (and any other member of the PubCo Holdings Group, as applicable), agree to treat (A) each Redemption, to the extent that PubCo or another member of the PubCo Holdings Group contributes to the Company the consideration the
Redeeming Member is entitled to receive pursuant to <u>Section</u> <u>3.6(b)(ii)</u>, and (B) in the event PubCo exercises its Call Right, each transaction between the Redeeming Member and PubCo or such other member of the PubCo
Holdings Group, as a sale of the Redeeming Member's Units (together with the same number of Class B Shares) to PubCo or such other member of the PubCo Holdings Group in exchange for Class A Shares or cash, as

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applicable. For U.S. federal income (and applicable state and local) tax purposes, each of the Redeeming Member, the Company, and PubCo (and any other member of the PubCo Holdings Group, as applicable), agree to treat each Redemption, to the extent PubCo does not exercise its Call Right and neither PubCo nor another member of the PubCo Holdings Group contributes to the Company the consideration the Redeeming Member is entitled to receive under <u>Section</u> <u>3.6(a)(i)</u>, as a distribution by the Company to the Redeeming Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Redemption Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the satisfaction of any Redemption Contingency that is specified in the relevant Redemption Notice,
the Redemption shall be completed on the Redemption Date and such Class A Shares issuable upon the Redemption, or, if a Cash Election has been made, the Cash Election Amount, as applicable, shall be delivered to the Redeeming Member as soon as
reasonably practicable on or following the Redemption Date; *provided*, that if a valid Cash Election has not been made, the Redeeming Member may, at any time prior to the Redemption Date, revoke its Redemption Notice by giving written notice
(the "  **<u>Retraction Notice</u>**") to the Company (with a copy to PubCo); *provided*, *however*, that in no event may the Redeeming Member deliver more than one Retraction Notice in any calendar quarter; *provided further*, that if PubCo has not complied with its obligations under the Registration Rights Agreement with respect to the Redeeming Member at the time of delivery of a Retraction Notice, such notice shall not be subject to the quarterly
limitation in the immediately preceding clause. The timely delivery of a Retraction Notice shall terminate all of the Redeeming Member's, the Company's and PubCo's (and any other member of the PubCo Holdings Group, as applicable)
rights and obligations arising from the retracted Redemption Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless the Redeeming Member has timely delivered a Retraction Notice as provided in <u>Section</u> <u>3.6(b)(</u> <u>i</u> <u>)</u> or PubCo (or such designated member(s) of the PubCo Holdings Group) has elected to exercise its Call Right pursuant to <u>Section</u> <u>3.6(f)</u>, on the Redemption Date (to be
effective immediately prior to the close of business on the Redemption Date) (A) the Redeeming Member shall transfer and surrender the Redeemed Units (and a corresponding number of Class B Shares) to the Company, in each case free and
clear of all liens and encumbrances, (B) unless, in the event of a Cash Election by the Company, the Company elects to fund any part of the consideration the Redeeming Member is entitled to receive under <u>Section</u> <u>3.6(a)(</u> <u>i</u> <u>)</u> without a contribution from PubCo (or such other member(s) of the PubCo Holdings Group designated by PubCo), PubCo shall directly or indirectly contribute to the Company the consideration the
Redeeming Member is entitled to receive under <u>Section</u> <u>3.6(a)(</u> <u>i</u> <u>)</u> and, as described in <u>Section</u> <u>3.1(e)</u>, the Company shall issue to PubCo (or such other member(s) of the PubCo Holdings
Group, as applicable) a number of

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Units or other Equity Securities of the Company as consideration for such contribution, (C) the Company shall (x) cancel the Redeemed Units, (y) transfer to the Redeeming Member the consideration the Redeeming Member is entitled to receive under <u>Section</u> <u>3.6(a)(</u><u>i</u><u>)</u>, and (z) if the Redeemed Units are certificated, issue to the Redeeming Member a certificate for a number of Units equal to the difference (if any) between the number of Units evidenced by the certificate surrendered by the Redeeming Member pursuant to <u>clause</u> <u>(iii)(A)</u> of this <u>Section</u> <u>3.6(b)</u> and the number of Redeemed Units, and (D) PubCo shall cancel the surrendered Class B Shares. Notwithstanding any other provisions of this Agreement to the contrary, in the event that the Company makes a valid Cash Election, the PubCo Holdings Group shall only be obligated to contribute to the Company an amount in cash equal to the net proceeds (after deduction of any Discount) from the sale by PubCo of a number of Class A Shares equal to the number of Redeemed Units and Class B Shares to be redeemed with such cash or from the sale of other PubCo Equity Securities used to fund the Cash Election Amount; *provided* that PubCo's Capital Account (or the Capital Account(s) of the other member(s) of the PubCo Holdings Group, as applicable) shall be increased by the amount of such Discount in accordance with <u>Section</u> <u>6.9</u>; *provided further*, that the contribution of such net proceeds shall in no event affect the Redeeming Member's right to receive the Cash Election Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any other provisions of this Agreement, so long as a Redeeming Member and its Affiliates own at
least     % of the voting power of PubCo, (A) the Company may not make a Cash Election to settle a Redemption by such Redeeming Member and (B) PubCo may not elect to pay the Cash Election Amount in connection with
its exercise of the Call Right with respect to a Redemption by such Redeeming Member, in each case, unless, prior to or contemporaneously with making such Cash Election or electing to pay the Cash Election Amount, as applicable, (y) PubCo has
issued a number of PubCo Equity Securities at least equal to the number of Units subject to such Redemption and (z) in the case of clause (A), PubCo shall have contributed to the Company an amount in cash equal to the net proceeds, net of any
Discount (including any deferred Discounts payable in connection with or as a result of such issuance), from such issuance of such PubCo Equity Securities; provided that once an issuance of a PubCo Equity Security has been applied pursuant to this
sentence to permit a Cash Election or an election to pay the Cash Election Amount in connection with the exercise of the Call Right, such issuance may not be utilized to permit a subsequent Cash Election or an election to pay the Cash Election
Amount in connection with the exercise of the Call Right.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If (i) there is any reclassification, reorganization, recapitalization or other similar transaction,
including pursuant to a merger or consolidation, pursuant to which the Class A Shares are converted or changed into another security, securities or other property (other than as a result of a subdivision or combination or any transaction
subject to <u>Section</u> <u>3.1(g)</u>), or (ii) except in connection with actions taken with respect to the capitalization of PubCo or the Company pursuant to <u>Section</u> <u>3.1(</u> <u>i</u> <u>)</u>, PubCo, by
dividend or otherwise, distributes to all holders of the Class A Shares evidences of its Indebtedness or assets, including securities (including Class A Shares and any rights, options or warrants to all holders of the Class A Shares
to subscribe for or to purchase or to otherwise acquire Class A Shares, or other securities or rights convertible into, exchangeable for or exercisable for Class A Shares) but excluding (A) any cash dividend or distribution, or
(B) any such distribution of Indebtedness or assets, in either case <u>(A)</u> or <u>(B)</u> received by PubCo from the Company in respect of the Units, then upon any subsequent Redemption, in addition to the Class A Shares or
the Cash Election Amount, as applicable, each Member shall be entitled to receive the amount of such security, securities or other property that such Member would have received if such Redemption had occurred immediately prior to the effective date
of such reclassification, reorganization, recapitalization, other similar transaction, dividend or other distribution, taking into account any adjustment as a result of any subdivision (by any split, distribution or dividend, reclassification,
reorganization, recapitalization or otherwise) or combination (by reverse split, reclassification, recapitalization or otherwise) of such security, securities or other property that occurs after the effective time of such reclassification,
reorganization, recapitalization or other similar transaction. For the avoidance of doubt, if there is any reclassification, reorganization, recapitalization or other similar transaction in which the Class A Shares are converted or changed into
another security, securities or other property, or any dividend or distribution (other than an excluded dividend or distribution, as described above), this <u>Section</u> <u>3.1</u> shall continue to be applicable, mutatis mutandis, with
respect to such security or other property. This Agreement shall apply to the Units held by the Members as of the date hereof, as well as any Units hereafter acquired by a Member and or its Permitted Transferees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) PubCo shall at all times keep available out of its authorized but unissued shares, solely for the purpose of
issuance upon a Redemption, such number of Class A Shares that shall be issuable upon the Redemption of all outstanding Units (other than those Units held by any member of the PubCo Holdings Group). PubCo covenants that all Class A Shares
that shall be issued upon a Redemption shall, upon issuance thereof, be validly issued, fully paid and non-assessable (except as such non-assessability may be limited by Sections 101.206 and 101.613 of the
TBOC). In addition, for so long as the Class A Shares are listed on a National Securities Exchange, PubCo shall use its reasonable best efforts to cause all Class A Shares issued upon a Redemption to be listed on such National Securities
Exchange at the time of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The issuance of Class A Shares upon a Redemption shall be made without charge to the Redeeming Member for
any stamp or other similar tax in respect of such issuance; *provided* that if any such Class A Shares are to be issued in a name other than that of the Redeeming Member, then the Person or Persons in whose name the shares are to be issued
shall pay to PubCo (or such designated member(s) of the PubCo Holdings Group) the amount of any tax that may be payable in respect of

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any transfer involved in such issuance or shall establish to the reasonable satisfaction of PubCo that such tax has been paid or is not payable. Each of the Company and any member of the PubCo Holdings Group shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable upon a Redemption (and the Redeeming Member agrees to indemnify the Company and the PubCo Holdings Group with respect to) such amounts as may be required to be deducted or withheld therefrom under the Code or any provision of applicable Law, and to the extent deduction and withholding is required, such deduction and withholding may be taken in Class A Shares. Prior to making such deduction or withholding, the Company shall use commercially reasonable efforts to give written notice to the Redeeming Member to reduce or avoid any such withholding. To the extent such amounts are so deducted or withheld and paid over to the relevant Governmental Entity, such amounts shall be treated for all purposes under this Agreement as having been paid to the Redeeming Member and, if withholding is taken in Class A Shares, the relevant withholding party shall be treated as having sold such Class A Shares on behalf of such Redeeming Member for an amount of cash equal to the Fair Market Value thereof at the time of such deemed sale and paid such cash proceeds to the appropriate Governmental Entity. Notwithstanding the foregoing, in the event any deduction or withholding is required upon the issuance of Class A Shares, the relevant withholding party may require the Redeeming Member to pay to the relevant withholding party promptly, and in any event no later than ten (10) Business Days after the Redemption Date, cash equal to the amount of any such required deduction or withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Call Right</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary in this <u>Section</u> <u>3.6(f)</u>, but subject to <u>Section</u> <u>3.6(g)</u>, a Redeeming Member shall be deemed to have offered to sell its Redeemed Units as described in the Redemption Notice to PubCo (or such other member(s) of the PubCo Holdings Group as may be designated by
PubCo), which may by means of delivery of a Call Election Notice in accordance with, and subject to the terms of, this <u>Section</u> <u>3.6(f)</u>, elect to purchase directly and acquire such Units (together with the surrender and
delivery of the same number of Class B Shares) on the Redemption Date by paying to the Redeeming Member (or, on the Redeeming Member's written order, its designee) that number of Class A Shares the Redeeming Member (or its designee)
would otherwise receive pursuant to <u>Section</u> <u>3.6(a)(</u> <u>i</u> <u>)</u> or, at the election of PubCo (or such designated member(s) of the PubCo Holdings Group), an amount of cash equal to the Cash Election Amount of such
Class A Shares (the "  **<u>Call Right</u>** "), whereupon PubCo (or such designated member(s) of the PubCo Holdings Group) shall acquire the Units offered for redemption by the Redeeming Member (together with the surrender and
delivery of the same number of Class B Shares to PubCo for cancellation). PubCo (or such designated member(s) of the PubCo Holdings Group) shall be treated for all purposes of this Agreement as the owner of such Units; *provided* that if
the Cash Election Amount is funded other than through the issuance of Class A Shares, such Units will be reclassified into another Equity Security of the Company if the Managing Member determines such reclassification is necessary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) PubCo (or such designated member(s) of the PubCo Holdings Group) may, at any time prior to the Redemption Date,
deliver a written notice (a "  **<u>Call Election Notice</u>**") to the Company and the Redeeming Member setting forth its election to exercise its Call Right. A Call Election Notice may be revoked by the applicable member of the PubCo
Holdings Group at any time; *provided* that any such revocation does not prejudice the ability of the parties to consummate a Redemption on the Redemption Date. Except as otherwise provided by this <u>Section</u> <u>3.6(f)</u>, an
exercise of the Call Right shall be consummated pursuant to the same timeframe and in the same manner as the relevant Redemption would have been consummated if a member of the PubCo Holdings Group had not delivered a Call Election Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that (i) the Members (other than the PubCo Holdings Group) beneficially own, in the
aggregate, less than five percent (5%) of the then outstanding Units and (ii) the Class A Shares are listed or admitted to trading on a National Securities Exchange, PubCo (or such other member(s) of the PubCo Holdings Group designated by
PubCo) shall have the right to require all such Members to effect a Redemption of all (but not less than all) of such Members' Units (together with the surrender and delivery of the same number of Class B Shares); *provided* that a
Cash Election shall not be permitted pursuant to such a Redemption under this <u>Section</u> <u>3.6(g)</u>. PubCo (or such designated member(s) of the PubCo Holdings Group) shall deliver written notice to the Company and each such Member
of its intention to exercise its Redemption right pursuant to this <u>Section</u> <u>3.6(g)</u> (a "  **<u>Minority Member Redemption Notice</u>**") at least five (5) Business Days prior to the proposed date upon which
such Redemption is to be effected (such proposed date, the "  **<u>Minority Member Redemption Date</u>** "), indicating in such notice the number of Units (and corresponding Class B Shares) held by such Member that PubCo (or such
designated member(s) of the PubCo Holdings Group) intends to require to be subject to such Redemption. Any Redemption pursuant to this <u>Section</u> <u>3.6(g)</u> shall be effective on the Minority Member Redemption Date. From and after
the Minority Member Redemption Date, (x) the Units and Class B Shares subject to such Redemption shall be deemed to be transferred to PubCo (or such designated member(s) of the PubCo Holdings Group) on the Minority Member Redemption Date
and (y) such Member shall cease to have any rights with respect to the Units and Class B Shares subject to the Redemption (other than the right to receive Class A Shares pursuant to such Redemption). Following the delivery of a
Minority Member Redemption Notice and on or prior to the Minority Member Redemption Date, the Members shall take all actions reasonably requested by PubCo (or such designated member(s) of the PubCo Holdings Group) to effect such Redemption,
including taking any action and delivering any document required pursuant to the remainder of this <u>Section</u> <u>3.6</u> to effect a Redemption.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In connection with a PubCo Change of Control, PubCo shall have the right to require each Member (other than
members of the PubCo Holdings Group) to effect a Redemption of some or all of such Member's Units (together with the surrender and delivery of the same number of Class B Shares); *provided* that a Cash Election shall not be permitted
pursuant to such a Redemption under this <u>Section</u> <u>3.6(h)</u>. Any Redemption pursuant to this <u>Section</u> <u>3.6(h)</u> shall be effective immediately prior to the consummation of the PubCo Change of Control (and,
for the avoidance of doubt, shall not be effective if such PubCo Change of Control is not consummated) (the "  **<u>Change of Control Redemption Date</u>** "). From and after the Change of Control Redemption Date, (i) the Units and
Class B Shares subject to such Redemption shall be deemed to be transferred to PubCo (or such other member(s) of the PubCo Holdings Group designated by PubCo) on the Change of Control Redemption Date and (ii) such Member shall cease to
have any rights with respect to the Units and Class B Shares subject to such Redemption (other than the right to receive Class A Shares pursuant to such Redemption (or, if applicable, the consideration to be paid for the Class A
Shares in the PubCo Change of Control)). PubCo shall provide written notice of an expected PubCo Change of Control to all Members within the earlier of (x) five (5) Business Days following the execution of the agreement with respect to
such PubCo Change of Control and (y) ten (10) Business Days before the proposed date upon which the contemplated PubCo Change of Control is to be effected, indicating in such notice such information as may reasonably describe the PubCo
Change of Control transaction, subject to applicable Law, including the date of execution of such agreement and the proposed effective date, as applicable, the amount and types of consideration to be paid for Class A Shares in the PubCo Change
of Control, any election with respect to types of consideration that a holder of Class A Shares shall be entitled to make in connection with such PubCo Change of Control, and the number of Units (and corresponding Class B Shares) held by
such Member that PubCo intends to require to be subject to such Redemption (the "  **<u>PubCo</u> <u>Change of Control Information</u>** "). Following delivery of such notice and on or prior to the Change of Control Redemption
Date, the Members shall take all actions reasonably requested by PubCo to effect such Redemption, including taking any action and delivering any document required pursuant to the remainder of this <u>Section</u> <u>3.6(h)</u> to effect a
Redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Redemption shall impair the right of the Redeeming Member to receive any distributions payable on the
Redeemed Units pursuant to such Redemption in respect of a record date that occurs prior to the Redemption Date for such Redemption. For the avoidance of doubt, no Redeeming Member, or a Person designated by a Redeeming Member to receive
Class A Shares, shall be entitled to receive, with respect to such record date, distributions or dividends both on Redeemed Units and on Class A Shares received by such Redeeming Member, or other Person so designated, if applicable, in
such Redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Any Units acquired by the Company under this <u>Section</u> <u>3.6</u> and transferred by the
Company to any member of the PubCo Holdings Group shall remain outstanding and shall not be cancelled as a result of their acquisition by the Company.

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Notwithstanding any other provision of this Agreement, the applicable member(s) of the PubCo Holdings Group shall be automatically admitted as a Member of the Company with respect to any Units or other Equity Securities in the Company it receives under this Agreement (including under this <u>Section</u> <u>3.6</u> in connection with any Redemption).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Managing Member may impose additional limitations and restrictions on Redemptions (including limiting
Redemptions or creating priority procedures for Redemptions) to the extent it determines such limitations and restrictions to be necessary or appropriate to avoid undue risk that the Company may be classified as a "publicly traded
partnership" within the meaning of Section 7704 of the Code. Furthermore, the Managing Member may require any Member or group of Members to redeem all of their Units without the consent or approval of any other Person (including any
affected Members) to the extent it determines reasonably that such Redemption is necessary or appropriate to avoid undue risk that the Company may be classified as a "publicly traded partnership" within the meaning of Section 7704
of the Code. Upon delivery of any notice by the Managing Member to such Member or group of Members requiring such Redemption, such Member or group of Members shall exchange, subject to exercise by PubCo (or such other member(s) of the PubCo Holdings
Group designated by PubCo) of the Call Right pursuant to <u>Section</u> <u>3.6(f)(</u> <u>i</u> <u>)</u>, all of their Units effective as of the date specified in such notice (and such date shall be deemed to be a Redemption Date for
purposes of this Agreement) in accordance with this <u>Section</u> <u>3.6</u> and otherwise in accordance with the requirements set forth in such notice.

**ARTICLE IV** 

**ALLOCATIONS OF PROFITS AND LOSSES** 

Section 4.1 **<u>Profits and Losses</u>**. After giving effect to the allocations under <u>Section</u> <u>4.2</u> and subject to <u>Section</u> <u>4.4</u>, Profits and Losses (and, to the extent determined by the Company Representative to be necessary and appropriate to achieve the resulting Capital Account balances described below, any allocable items of income, gain, loss, deduction or credit includable in the computation of Profits and Losses) for each Fiscal Year or other taxable period shall be allocated among the Members during such Fiscal Year or other taxable period in a manner such that, after giving effect to the special allocations set forth in <u>Section</u> <u>4.2</u> and all distributions through the end of such Fiscal Year or other taxable period, the Capital Account balance of each Member, immediately after making such allocation, is, as nearly as possible, equal to (a) the amount such Member would receive pursuant to <u>Section</u> <u>10.3(b)</u> if all assets of the Company on hand at the end of such Fiscal Year or other taxable period were sold for cash equal to their Gross Asset Values taking into account any adjustments thereto for such Fiscal Year or other taxable period, all liabilities of the Company were satisfied in cash in accordance with their terms (limited with respect to each nonrecourse liability to the Gross Asset Value of the assets securing such liability), and all remaining or resulting cash was distributed, in accordance with <u>Section</u> <u>10.3(b)</u>, to the Members immediately after making such allocation, *minus* (b) such Member's share of Company Minimum Gain and Member Minimum Gain, computed immediately prior to the hypothetical sale of assets, and the amount any such Member is treated as obligated to contribute to the Company, computed immediately after the hypothetical sale of assets.

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Section 4.2 **<u>Special Allocations</u>**. The following allocations shall be made in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Nonrecourse Deductions for any Fiscal Year or other taxable period shall be specially allocated to the Members
on a pro rata basis, in accordance with the number of Units owned by each Member as of the last day of such Fiscal Year or other taxable period. The amount of Nonrecourse Deductions for a Fiscal Year or other taxable period shall equal the excess,
if any, of the net increase, if any, in the amount of Company Minimum Gain during that Fiscal Year or other taxable period over the aggregate amount of any distributions during that Fiscal Year or other taxable period of proceeds of a Nonrecourse
Liability that are allocable to an increase in Company Minimum Gain, determined in accordance with the provisions of Treasury Regulations Section 1.704-2(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Member Nonrecourse Deductions for any Fiscal Year or other taxable period shall be specially allocated to
the Member who bears Economic Risk of Loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with Treasury Regulations Section 1.704-2(i). If more than one Member bears the
Economic Risk of Loss for such Member Nonrecourse Debt, the Member Nonrecourse Deductions attributable to such Member Nonrecourse Debt shall be allocated among the Members according to the ratio in which they bear the Economic Risk of Loss. This <u>Section</u> <u>4.2(b)</u> is intended to comply with the provisions of Treasury Regulations Section 1.704-2(i) and shall be interpreted consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any other provision of this Agreement to the contrary, if there is a net decrease in Company
Minimum Gain during any Fiscal Year or other taxable period (or if there was a net decrease in Company Minimum Gain for a prior Fiscal Year or other taxable period and the Company did not have sufficient amounts of income and gain during prior
periods to allocate among the Members under this <u>Section</u> <u>4.2(c)</u>), each Member shall be specially allocated items of Company income and gain for such Fiscal Year or other taxable period in an amount equal to such
Member's share of the net decrease in Company Minimum Gain during such year (as determined pursuant to Treasury Regulations Section 1.704-2(g)(2)). This <u>Section</u> <u>4.2(c)</u> is intended to constitute a minimum gain
chargeback under Treasury Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any other provision of this Agreement except <u>Section</u> <u>4.2(c)</u>, if there
is a net decrease in Member Minimum Gain during any Fiscal Year or other taxable period (or if there was a net decrease in Member Minimum Gain for a prior Fiscal Year or other taxable period and the Company did not have sufficient amounts of income
and gain during prior periods to allocate among the Members under this <u>Section</u> <u>4.2(d)</u>), items of income and gain shall be allocated to each Member in an amount equal to such Member's share of the net decrease in
Member Minimum Gain (as determined pursuant to Treasury Regulations Section 1.704-2(i)(4)). This <u>Section</u> <u>4.2(d)</u> is intended to constitute a partner nonrecourse debt minimum gain chargeback under Treasury Regulations
Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any provision hereof to the contrary except <u>Section</u> <u>4.2(a)</u> and <u>Section</u> <u>4.2(b)</u>, no Losses or other items of loss or expense shall be allocated to any Member to the extent that such allocation would cause such Member to have an Adjusted Capital Account Deficit (or increase any existing
Adjusted Capital Account Deficit) at the end of such Fiscal Year or other taxable period. All Losses and other items of loss and expense in excess of the limitation set forth in this <u>Section</u> <u>4.2(e)</u> shall be allocated to the
Members who do not have an Adjusted Capital Account Deficit in proportion to their relative positive Capital Accounts but only to the extent that such Losses and other items of loss and expense do not cause any such Member to have an Adjusted
Capital Account Deficit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding any provision hereof to the contrary except <u>Section</u> <u>4.2(c)</u> and <u>Section</u> <u>4.2(d)</u>, in the event any Member unexpectedly receives any adjustment, allocation or distribution described in paragraph (4), (5) or (6) of Treasury Regulations Section 1.704-1(b)(2)(ii)(d), items of
income and gain (consisting of a pro rata portion of each item of income, including gross income, and gain for the Fiscal Year or other taxable period) shall be specially allocated to such Member in an amount and manner sufficient to eliminate any
Adjusted Capital Account Deficit of that Member as quickly as possible; *provided* that an allocation pursuant to this <u>Section</u> <u>4.2(f)</u> shall be made only if and to the extent that such Member would have an Adjusted
Capital Account Deficit after all other allocations provided for in this <u>Article</u> <u>IV</u> have been tentatively made as if this <u>Section</u> <u>4.2(f)</u> were not in this Agreement. This <u>Section</u> <u>4.2(f)</u> is intended to constitute a qualified income offset under Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If any Member has a deficit balance in its Capital Account at the end of any Fiscal Year or other taxable
period that is in excess of the sum of (i) the amount that such Member is obligated to restore and (ii) the amount that the Member is deemed to be obligated to restore pursuant to the penultimate sentence of Treasury Regulations
Sections 1.704-2(g)(1) and (i)(5), that Member shall be specially allocated items of Company income and gain and Simulated Gain in the amount of such excess as quickly as possible, *provided* that an allocation pursuant to this <u>Section</u> <u>4.2(g)</u> shall be made only if and to the extent that such Member would have a deficit balance in its Capital Account in excess of such sum after all other allocations provided for in this <u>Article</u> <u>IV</u> have been made as if <u>Section</u> <u>4.2(f)</u> and this <u>Section</u> <u>4.2(g)</u> were not in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Sections 734(b) of the
Code (including any such adjustments pursuant to Treasury Regulations Section 1.734-2(b)(1)) is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4),
to be taken into account in determining Capital Accounts as a result of a distribution to any Member in complete liquidation of such Member's Interest in the Company,

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the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such item of gain or loss shall be allocated to the Members in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) if such Treasury Regulation section applies or to the Member to whom such distribution was made if Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Simulated Depletion for each Depletable Property, and Simulated Loss for Depletable Property upon the
disposition of such Depletable Property, shall be allocated among the Members in proportion to their shares of Simulated Basis in such Depletable Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The allocations set forth in <u>Sections</u> <u>4.2(a)</u> through <u>Section</u> <u>4.2(</u> <u>i</u> <u>)</u> (the "  **<u>Regulatory</u> <u>Allocations</u>**") are intended to comply with certain requirements of Treasury Regulations Sections 1.704-1(b) and 1.704-2.
Notwithstanding any other provision of this <u>Article</u> <u>IV</u> (other than the Regulatory Allocations), the Regulatory Allocations (and anticipated future Regulatory Allocations) shall be taken into account in allocating other
items of income, gain, loss and deduction among the Members so that, to the extent possible, the net amount of such allocation of other items and the Regulatory Allocations to each Member should be equal to the net amount that would have been
allocated to each such Member if the Regulatory Allocations had not occurred. This <u>Section</u> <u>4.2(j)</u> is intended to minimize to the extent possible and to the extent necessary any economic distortions which may result from
application of the Regulatory Allocations and shall be interpreted in a manner consistent therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Items of income, gain, loss, expense or credit resulting from a Covered Audit Adjustment shall be allocated to
the Members in accordance with the applicable provisions of the Partnership Tax Audit Rules.

Section 4.3 **<u>Allocations for Tax Purposes in General</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in this <u>Section</u> <u>4.3</u> or <u>Section</u> <u>4.4</u>, each item of income, gain, loss and deduction of the Company for U.S. federal income tax purposes shall be allocated among the Members in the same manner as such item is allocated under <u>Sections</u> <u>4.1</u> and <u>4.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In accordance with Section 704(c) of the Code and the Treasury Regulations thereunder (including the
Treasury Regulations applying the principles of Section 704(c) of the Code to changes in Gross Asset Values), items of income, gain, loss and deduction with respect to any Company property having a Gross Asset Value that differs from such
property's adjusted U.S. federal income tax basis shall, solely for U.S. federal income tax purposes, be allocated among the Members to account for any such difference using such method or methods determined by the Company Representative to be
appropriate and in accordance with the applicable Treasury Regulations; *provided*, *that* the Company Representative will use the "traditional method with curative allocations," with the curative allocations applied only to
sale gain, under Treasury Regulations Section 1.704-3(c) with respect to the assets owned by the Company at the time of the IPO.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any (i) recapture of depreciation or any other item of deduction shall be allocated, in accordance with
Treasury Regulations Sections 1.1245-1(e) and 1.1254-5, to the Members who received the benefit of such deductions to the maximum extent permissible by Law, and (ii) recapture of grants or credits shall
be allocated to the Members in accordance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Tax credits of the Company shall be allocated among the Members as provided in Treasury Regulations Section 1.704-1(b)(4)(ii) and 1.704(b)(4)(viii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Allocations pursuant to this <u>Section</u> <u>4.3</u> are solely for purposes of U.S. federal,
state and local taxes and shall not affect or in any way be taken into account in computing any Member's Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If, as a result of an exercise of a Non-Compensatory Option to acquire
an interest in the Company, a Capital Account reallocation is required under Treasury Regulations Section 1.704-1(b)(2)(iv)(s)(3), the Company shall make corrective allocations pursuant to Treasury Regulations Section 1.704-1(b)(4)(x).

Section 4.4 **<u>Income Tax Allocations with Respect to Depletable Properties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cost and percentage depletion deductions with respect to any Depletable Property shall be computed separately
by the Members rather than the Company. For purposes of such computations, the U.S. federal income tax basis of each Depletable Property shall be allocated to each Member pro rata, in accordance with the number of Units owned by such Member as of
the time such Depletable Property is acquired by the Company (and any additions to such U.S. federal income tax basis resulting from expenditures required to be capitalized in such basis shall be allocated among the Members in a manner designed to
cause the Members' proportionate shares of such adjusted U.S. federal income tax basis to be in accordance with their proportionate ownership of Units as determined at the time of any such additions), and shall be reallocated among the Members
pro rata, in accordance with the number of Units owned by such Member as determined immediately following the occurrence of an event giving rise to an adjustment to the Gross Asset Values of the Company's Depletable Properties pursuant to <u>clause (b)</u> of the definition of Gross Asset Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of the separate computation of gain or loss by each Member on the taxable disposition of
Depletable Property, the amount realized from such disposition shall be allocated (i) first, to the Members in an amount equal to the Simulated Basis in such Depletable Property in proportion to their allocable shares thereof and
(ii) second, any remaining amount realized shall be allocated consistent with the allocation of Simulated Gains.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The allocations described in this <u>Section</u> <u>4.4</u> are intended to be applied in
accordance with the Members' "interests in partnership capital" under Section 613A(c)(7)(D) of the Code; *provided* that the Members understand and agree that the Company Representative may authorize special allocations
of federal income tax basis, income, gain, deduction or loss, as computed for federal income tax purposes, in order to eliminate differences between Simulated Basis and adjusted U.S. federal income tax basis with respect to Depletable Properties, in
such manner as determined consistent with the principles outlined in <u>Section</u> <u>4.3(b)</u>. The provisions of this <u>Section</u> <u>4.4(c)</u> and the other provisions of this Agreement relating to allocations under
Section 613A(c)(7)(D) of the Code are intended to comply with Treasury Regulations Section 1.704-1(b)(4)(v) and shall be interpreted and applied in a manner consistent with such Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Member, with the assistance of the Company, shall separately keep records of its share of the adjusted tax
basis in each Depletable Property, adjust such share of the adjusted tax basis for any cost or percentage depletion allowable with respect to such property and use such adjusted tax basis in the computation of its cost depletion or in the
computation of its gain or loss on the disposition of such property by the Company. Upon the reasonable request of the Company, each Member shall advise the Company of its adjusted tax basis in each Depletable Property and any depletion computed
with respect thereto, both as computed in accordance with the provisions of this subsection for purposes of allowing the Company to make adjustments to the tax basis of its assets as a result of certain transfers of interests in the Company or
distributions by the Company. The Company may rely on such information and, if it is not provided by the Member, may make such reasonable assumptions as it shall determine with respect thereto.

Section 4.5 **<u>Other Allocation Rules</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Members are aware of the income tax consequences of the allocations made by this <u>Article IV</u> and the
economic impact of the allocations on the amounts receivable by them under this Agreement. The Members hereby agree to be bound by the provisions of this <u>Article</u> <u>IV</u> in reporting their share of Company income and loss for
income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions regarding the establishment and maintenance for each Member of a Capital Account and the
allocations set forth herein are intended to comply with the Treasury Regulations and to reflect the intended economic entitlement of the Members. If the Company Representative determines, that the application of these provisions would result in non-compliance with the Treasury Regulations or would be inconsistent with the intended economic entitlement of the Members, the Company Representative is authorized to make any appropriate adjustments to such
provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All items of income, gain, loss, deduction and credit allocable to an interest in the Company that may have
been Transferred shall be allocated between the Transferor and the Transferee in accordance with a method determined by the Company Representative and permissible under Section 706 of the Code and the Treasury Regulations thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Members' proportionate shares of the "excess nonrecourse liabilities" of the Company,
within the meaning of Treasury Regulations Section 1.752-3(a)(3), shall be allocated to the Members on a pro rata basis, in accordance with the number of Units owned by each Member.

**ARTICLE V** 

DISTRIBUTIONS

Section 5.1 **<u>Distributions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Distributions</u>. To the extent permitted by applicable Law and this Agreement, and except as otherwise
provided in <u>Section</u> <u>10.3</u>, distributions to Members may be declared by the Managing Member out of funds legally available therefor in such amounts and on such terms (including the payment dates of such distributions) as the
Managing Member shall determine using such record date as the Managing Member may designate; any such distribution shall be made to the Members as of the close of business on such record date on a pro rata basis (except that, for the avoidance of
doubt, repurchases or redemptions made in accordance with <u>Section</u> <u>3.1(f)</u> or payments made in accordance with <u>Sections</u> <u>6.4</u> or <u>6.9</u> need not be on a pro rata basis), in accordance with the
number of Units owned by each Member as of the close of business on such record date; *provided* that the Managing Member shall have the obligation to make distributions as set forth in <u>Sections</u> <u>5.2</u> and <u>10.3(b)(iii)</u>; and *provided further* that, notwithstanding any other provision herein to the contrary, no distributions shall be made to any Member to the extent such distribution would render the Company insolvent or violate the TBOC.
For purposes of the foregoing sentence, insolvency means the inability of the Company to meet its payment obligations when due as determined by the Managing Member in its Good Faith and reasonable discretion. Promptly following the designation of a
record date and the declaration of a distribution pursuant to this <u>Section</u> <u>5.1</u>, the Managing Member shall give notice to each Member of the record date, the amount and the terms of the distribution and the payment date
thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Successors</u>. For purposes of determining the amount of distributions, each Member shall be treated as
having made the Capital Contributions and as having received the distributions made to or received by its predecessors in respect of any of such Member's Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Distributions In-Kind</u>. Except as otherwise provided in this
Agreement, any distributions may be made in cash or in kind, or partly in cash and partly in kind, as determined by the Managing Member. To the extent that the Company distributes property in-kind to the
Members, the Company shall be treated as making a distribution equal to the Fair Market Value of such property for purposes of <u>Section</u> <u>5.1(a)</u> and such property shall be treated as if it were sold for an amount equal to its
Fair Market Value. Any resulting gain or loss shall be allocated to the Member's Capital Accounts in accordance with <u>Sections</u> <u>4.1</u> and <u>4.2</u>.

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Section 5.2 **<u>Tax-Related Distributions</u>**. The Company shall, subject to any restrictions contained in any agreement to which the Company is bound, advance distributions out of legally available funds to all Members on a pro rata basis in accordance with <u>Section</u> <u>5.1</u>, at such times and in such amounts as the Managing Member reasonably determines is necessary to enable the PubCo Holdings Group, in the aggregate, to timely satisfy any and all U.S. federal, state and local and non-U.S. tax obligations (including any Company Level Taxes, but excluding any obligations to remit any withholdings withheld from payments to third parties) owed by the PubCo Holdings Group, in the aggregate. If the PubCo Holdings Group receives a distribution described in this <u>Section</u> <u>5.2</u>, the Company shall use commercially reasonably efforts to make any such distributions to all Members on a pro rata basis, in accordance with the number of Units owned by each Member.

Section 5.3 **<u>Distribution Upon Withdrawal</u>**. Section 101.205 of the TBOC shall not apply to any withdrawal, and no withdrawing Member shall be entitled to receive any distribution or the value of such Member's Interest in the Company as a result of withdrawal from the Company prior to the liquidation, dissolution or termination of the Company, except as specifically provided in this Agreement.

Section 5.4 **<u>Issuance of New Equity Securities</u>**. This <u>Article</u> <u>V</u> shall be subject to and, to the extent necessary, amended to reflect the issuance by the Company of any additional Equity Securities.

**ARTICLE VI** 

**MANAGEMENT** 

Section 6.1 **<u>The Managing Member; Fiduciary Duties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) PubCo shall be the sole Managing Member of the Company. Except as otherwise required by Law, (i) the
Managing Member shall have full and complete charge of all affairs of the Company, (ii) the management and control of the Company's business activities and operations shall rest exclusively with the Managing Member, and the Managing
Member shall make all decisions regarding the business, activities and operations of the Company (including the incurrence of costs and expenses) without the consent of any other Member and (iii) the Members other than the Managing Member (in
their capacity as such) shall not participate in the control, management, direction or operation of the activities or affairs of the Company and shall have no power to act for or bind the Company. The Managing Member shall not be compensated for its
services as Managing Member of the Company except as expressly provided in this Agreement or approved by a majority in interest of the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the performance of its duties as the Managing Member of the Company, except as otherwise set
forth herein, including <u>Section</u> <u>6.1(c)</u> and <u>Section</u> <u>7.4</u>, the Managing Member will owe to the Company and the Members the same fiduciary duties as it would owe to a Texas corporation and the
stockholders

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thereof, respectively, if it were a member of the board of directors of such a corporation and the Members were stockholders of such a corporation, *provided* that nothing in this Agreement shall limit the effect of Section 101.256 of the TBOC. The Members acknowledge that the Managing Member will take action through its board of directors, and that the members of the Managing Member's board of directors will owe comparable fiduciary duties to the stockholders of the Managing Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any resolution or course of action by the Managing Member in respect of any conflict of interest shall be
permitted and deemed approved by all Members, and shall not constitute a breach of this Agreement, of any agreement contemplated herein, or of any duty stated or implied by Law or equity, including any fiduciary duty, if the resolution or course of
action in respect of such conflict of interest is resolved by the Managing Member through the procedures set forth in, and in accordance with, Section 6.4 of the PubCo Agreement. If Special Approval (as such term is defined in the PubCo
Agreement) is not sought and the Managing Member approved the resolution or course of action taken with respect to a conflict of interest pursuant to either of the standards set forth in clauses (iii) or (iv) of Section 6.4(a) of the
PubCo Agreement, then it shall be presumed that, in making its decision, the Managing Member acted in accordance with any and all of its duties, whether express or implied, in equity or otherwise, and in any proceeding brought by any Person
challenging such approval, the Person bringing or prosecuting such proceeding shall have the burden of overcoming such presumption. Notwithstanding anything to the contrary in this Agreement, the existence of the conflicts of interest described in
the Registration Statement (as such term is defined in the PubCo Agreement) are hereby approved by all Members and shall not constitute a breach of this Agreement or of any duty otherwise existing at law, inequity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding <u>Section</u> <u>6.1(c)</u>, any transaction, agreement or arrangement between the
Company, on the one hand, and any member of the PubCo Holdings Group or any Affiliate thereof (other than any wholly owned Subsidiary of the Company), on the other hand, that (i) would result in a distribution or transfer of assets of the
Company having a fair market value in excess of 5% of the Company's total assets or (ii) would materially and disproportionately affect the rights of Members other than members of the PubCo Holdings Group, shall require the prior approval
of Members (other than members of the PubCo Holdings Group) holding a majority of the Units held by all Members other than members of the PubCo Holdings Group.

Section 6.2 **<u>Officers</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Managing Member may appoint, employ or otherwise contract with any Person for the transaction of the
business of the Company or the performance of services for or on behalf of the Company, and the Managing Member may delegate to any such Persons such authority to act on behalf of the Company as the Managing Member may from time to time deem
appropriate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as set forth herein, the Managing Member may appoint one or more Officers (each, an
"  **<u>Officer</u>**") at any time, and the Officers may include a president, one or more vice presidents, a secretary, one or more assistant secretaries, a chief executive officer, a chief financial officer, a general counsel, a
treasurer, one or more assistant treasurers, a chief operating officer, an executive chairman, and any other officers that the Managing Member deems appropriate. Except as set forth herein, the Officers will serve at the pleasure of the Managing
Member, subject to all rights, if any, of such Officer under any contract of employment. Any individual may hold any number of offices, and an Officer may, but need not, be a Member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to this Agreement and to the rights, if any, of an Officer under a contract of employment, any Officer
may be removed, either with or without cause, by the Managing Member. Any Officer may resign at any time by giving written notice to the Managing Member. Any resignation will take effect at the date of the receipt of that notice or at any later time
specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation will not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Company under any contract to
which the Officer is a party. A vacancy in any office because of death, resignation, removal, disqualification or any other cause will be filled in the manner prescribed in this Agreement for regular appointments to that office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless the Managing Member decides otherwise, if an Officer's title is one commonly used for an officer
of a Texas corporation, the assignment of such title shall constitute the delegation to such Officer of the authority and duties that are normally associated with that office if such Officer held such office for a Texas corporation, subject to any
restrictions on such authority imposed by the Managing Member. In connection with the performance of their duties as Officers, the Officers shall owe to the Company and the Members the same fiduciary duties as they would owe if the Company was a
Texas corporation and the Members were stockholders thereof, except as otherwise set forth herein, including <u>Section</u> <u>6.1(c)</u> and <u>Section</u> <u>7.4</u>, *provided* that nothing in this Agreement shall
limit the effect of Section 101.256 of the TBOC.

Section 6.3 **<u>Warranted Reliance on Others</u>**. In exercising their authority and performing their duties under this Agreement, the Managing Member and the Officers shall be entitled to rely on information, opinions, reports, or statements of the following Persons or groups unless they have actual knowledge concerning the matter in question that would cause such reliance to be unwarranted:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) one or more employees or other agents of the Company or subordinates whom the Managing Member or Officer
believes to be reliable and competent in the matters presented; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any attorney, public accountant, financial advisor, investment banker or other Person as to matters which the
Managing Member or Officer believes to be within such Person's professional or expert competence.

Section 6.4 **<u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall indemnify and hold harmless, to the fullest extent permitted by applicable Law as it
presently exists or may hereafter be amended (provided that no such amendment shall limit a Covered Person's rights to indemnification hereunder with respect to any actions or events occurring prior to such amendment), any Person who was or is
made a party or is threatened to be made a party to or is otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a "  **<u>Proceeding</u>**") by
reason of the fact that he, or a Person for whom he is the legal representative, is or was (w) a Person entitled to indemnification under the Existing LLC Agreement, (x) a Member, an Officer, or acting as the Managing Member or Company
Representative or, while the Managing Member, entitled to indemnification under the Existing LLC Agreement, (y) a Member, an Officer, or acting as the, Managing Member or Company Representative, or (z) is or was serving at the request of
the Company as a member, director, officer, trustee, employee or agent of another limited liability company or of a corporation, partnership, joint venture, trust, other enterprise or nonprofit entity, including service with respect to an employee
benefit plan (each, a "  **<u>Covered Person</u>** "), whether the basis of such Proceeding is an alleged action or failure to take action in an official capacity as a member, director, officer, trustee, employee or agent, or in any
other capacity while serving as a member, director, officer, trustee, employee or agent, against all expenses, liability and loss (including, without limitation, attorneys' fees, judgments, fines, ERISA excise taxes and penalties and amounts
paid in settlement), reasonably incurred or suffered by such Covered Person in connection with such Proceeding. The Company shall, to the fullest extent not prohibited by applicable Law as it presently exists or may hereafter be amended (provided
that no such amendment shall limit a Covered Person's rights to indemnification hereunder with respect to any actions or events occurring prior to such amendment), pay the expenses (including attorneys' fees) incurred by a Covered Person
in defending any Proceeding in advance of its final disposition; *provided* that such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the Covered Person to repay all
amounts advanced if it should be ultimately determined by final judicial decision from which there is no further right to appeal that the Covered Person is not entitled to be indemnified under this <u>Section</u> <u>6.4</u> or otherwise.
The rights to indemnification and advancement of expenses under this <u>Section</u> <u>6.4</u> shall be contract rights and such rights shall continue as to a Covered Person who has ceased to be a member, director, officer, trustee,
employee or agent and shall inure to the benefit of his heirs, executors and administrators. Notwithstanding the foregoing provisions of this <u>Section</u> <u>6.4</u>, except for Proceedings to enforce rights to indemnification and
advancement of expenses, the Company shall indemnify and advance expenses to a Covered Person in connection with a Proceeding (or part thereof) initiated by such Covered Person only if such Proceeding (or part thereof) was authorized by the Managing
Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the fullest extent permitted by applicable Law, no Covered Persons shall be liable to the Company, any
Subsidiary, any director, any Officer, any Member or any holder of any equity interest in the Company or any Subsidiary by virtue of being an Covered Person or for any acts or omissions in his capacity as a Covered Person or otherwise in connection
with this Agreement or the business and affairs of the Company and its Subsidiaries.

Section 6.5 **<u>Maintenance of Insurance or Other Financial Arrangements</u>**. In compliance with applicable Law, the Company (with the approval of the Managing Member) may purchase and maintain insurance or make other financial arrangements on behalf of any Person who is or was a Member, employee or agent of the Company, or at the request of the Company is or was serving as a manager, director, officer, employee or agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise, for any Liability asserted against such Person and Liability and expenses incurred by such Person in such Person's capacity as such, or arising out of such Person's status as such, whether or not the Company has the authority to indemnify such Person against such Liability and expenses.

Section 6.6 **<u>Resignation or Termination of Managing Member</u>**. PubCo shall not, by any means, resign as, cease to be or be replaced as Managing Member except in compliance with this <u>Section</u> <u>6.6</u>. No termination or replacement of PubCo as Managing Member shall be effective unless proper provision is made, in compliance with this Agreement, so that the obligations of PubCo, its successor (if applicable) and any new Managing Member and the rights of all Members under this Agreement and applicable Law remain in full force and effect. No appointment of a Person other than PubCo (or its successor, as applicable) as Managing Member shall be effective unless PubCo (or its successor, as applicable) and the new Managing Member (as applicable) provide all other Members with contractual rights, directly enforceable by such other Members against PubCo (or its successor, as applicable) and the new Managing Member (as applicable), to cause (a) PubCo to comply with all its obligations under this Agreement (including its obligations under <u>Section</u> <u>3.6</u>) other than those that must necessarily be taken in its capacity as Managing Member and (b) the new Managing Member to comply with all the Managing Member's obligations under this Agreement.

Section 6.7 **<u>No Inconsistent Obligations</u>**. The Managing Member represents that it does not have any contracts, other agreements, duties or obligations that are inconsistent with its duties and obligations (whether or not in its capacity as Managing Member) under this Agreement and covenants that, except as permitted by <u>Section</u> <u>6.1</u>, it will not enter into any contracts or other agreements or undertake or acquire any other duties or obligations that are inconsistent with such duties and obligations.

Section 6.8 **<u>Reclassification Events of</u> <u>PubCo</u>**. If a Reclassification Event occurs, the Managing Member or its successor, as the case may be, shall, as and to the extent necessary, amend this Agreement in compliance with <u>Section</u> <u>11.1</u>, and enter into any necessary supplementary or additional agreements, to ensure that, following the effective date of the Reclassification Event: (a) the redemption rights of holders of Units set forth in <u>Section</u> <u>3.6</u> provide that each Unit

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(together with the surrender and delivery of one Class B Share) is redeemable for the same amount and same type of property, securities or cash (or combination thereof) that one Class A Share becomes exchangeable for or converted into as a result of the Reclassification Event and (b) PubCo or the successor to PubCo, as applicable, is obligated to deliver such property, securities or cash upon such redemption. PubCo shall not consummate or agree to consummate any Reclassification Event unless the successor Person, if any, becomes obligated to comply with the obligations of PubCo (in whatever capacity) under this Agreement.

Section 6.9 **<u>Certain Costs and Expenses</u>**. The Company shall (a) pay, or cause to be paid, all costs, fees, operating expenses and other expenses of the Company and its Subsidiaries (including the costs, fees and expenses of attorneys, accountants or other professionals and the compensation of all personnel providing services to the Company and its Subsidiaries) incurred in pursuing and conducting, or otherwise related to, the activities of the Company and (b) at the direction of the Managing Member, reimburse the Managing Member for any costs, fees or expenses incurred by it in connection with serving as the Managing Member. To the extent that the Managing Member determines that any costs, fees or expenses of any member of the PubCo Holdings Group are related to the business and affairs of the Company or of the Managing Member that are conducted through the Company and/or its Subsidiaries (including expenses that relate to the business and affairs of the Company and/or its Subsidiaries and that also relate to other activities of the Managing Member or any other member of the PubCo Holdings Group), the Managing Member may cause the Company to pay or bear all expenses of such member of the PubCo Holdings Group, including, without limitation, costs of securities offerings not borne directly by Members, board of directors compensation and meeting costs, costs of periodic reports to stockholders of PubCo, litigation costs and damages arising from litigation, accounting and legal costs, and where any member of the PubCo Holdings Group pays or bears any expenses or any other obligations of the Company or its Subsidiaries through the transfer or forfeiture by such member of the PubCo Holdings Group of any Units or other Equity Securities of the Company (or Equity Securities of any other member(s) of the PubCo Holdings Group that directly or indirectly owns Equity Securities of the Company), in which case the Managing Member shall be deemed to automatically cause the Company to issue to such member of the PubCo Holdings Group (and the Company shall be deemed to have automatically issued to such member of the PubCo Holdings Group without further action or agreement) a number of Units or such other Equity Securities equal to the number of Units or other Equity Securities, as applicable, transferred or forfeited (or held directly or indirectly by the other member(s) of the PubCo Holdings Group whose Equity Securities were transferred or forfeited); *provided* that the Company shall not pay or bear any income tax obligations of any member of the PubCo Holdings Group. In the event that (i) Class A Shares or other Equity Securities of PubCo are sold to underwriters in any Public Offering after the Effective Time, in each case, at a price per share that is lower than the price per share for which such Class A Shares or other Equity Securities of PubCo are sold to the public in such Public Offering after taking into account any Discounts and (ii) the proceeds from such Public Offering are used to fund the Cash Election Amount for any Redeemed Units or otherwise contributed to the Company, the Company shall reimburse the applicable member of the PubCo Holdings Group for such Discount by treating such Discount as an additional Capital Contribution made by the relevant member of the PubCo Holdings Group to the Company, with the Company issuing Units in respect of such deemed Capital Contribution in accordance with <u>Section</u> <u>3.6(b)(ii)</u>, and increasing such member's Capital Account by the amount of such Discount. For the avoidance of doubt, any payments made to or on behalf of the Managing Member or any other member of the

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PubCo Holdings Group pursuant to this <u>Section</u> <u>6.9</u> shall not be treated as a distribution pursuant to <u>Section</u> <u>5.1(a)</u> but shall instead be treated as an expense of the Company. Consequently, except as otherwise required by applicable Law, notwithstanding anything else in this Agreement, the Members and the Company agree that, for U.S. federal and applicable state and local income tax purposes, any payment or other satisfaction (including by way of transfer or forfeiture of Equity Securities) by any member of the PubCo Holdings Group of any expenses or any other obligations of the Company or its Subsidiaries, together with the reimbursement by the Company to the relevant member of the PubCo Holdings Group in accordance with the second sentence of this paragraph, is intended to be treated as though the Company paid the relevant expense or other obligation (including by way of deemed issuance of Units or other Equity Securities of the Company, where applicable) directly to the relevant creditor or other payee in direct satisfaction of the Company's (or its Subsidiary's) own obligation.

**ARTICLE VII** 

**ROLE OF MEMBERS** 

Section 7.1 **<u>Rights or Powers</u>**. Other than the Managing Member, the Members, acting in their capacity as Members, shall not have any right or power to take part in the management or control of the Company or its business and affairs or to act for or bind the Company in any way. Notwithstanding the foregoing, the Members have all the rights and powers specifically set forth in this Agreement and, to the extent not inconsistent with this Agreement, in the TBOC. A Member, any Affiliate thereof or an employee, stockholder, agent, director or officer of a Member or any Affiliate thereof, may also be an employee or be retained as an agent of the Company. The existence of these relationships and acting in such capacities will not result in the Member (other than the Managing Member) being deemed to be participating in the control of the business of the Company or otherwise affect the limited liability of the Member. Except as specifically provided herein, a Member (other than the Managing Member) shall not, in its capacity as a Member, take part in the operation, management or control of the Company's business, transact any business in the Company's name or have the power to sign documents for or otherwise bind the Company.

Section 7.2 **<u>Voting</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Meetings of the Members of the Company may be called upon the written request of Members holding at least fifty
percent (50%) of the outstanding Units. Such request shall state the location of the meeting and the nature of the business to be transacted at the meeting. Written notice of any such meeting shall be given to all Members not less than two
(2) Business Days and not more than thirty (30) days prior to the date of such meeting. Members may vote in person, by proxy or by telephone at any meeting of the Members and may waive advance notice of such meeting. Whenever the vote or
consent of Members is permitted or required under this Agreement, such vote or consent may be given at a meeting of the Members or may be given in accordance with the procedure prescribed in this <u>Section</u> <u>7.2</u>. Except as
otherwise expressly provided in this Agreement, the affirmative vote of the Members holding a majority of the outstanding Units shall constitute the act of the Members.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Member may authorize any Person or Persons to act for it by proxy on all matters in which such Member is
entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by such Member or its attorney-in-fact. No proxy shall be valid after the expiration of eleven (11) months from the date thereof unless otherwise provided in the proxy. Every proxy shall
be revocable at the pleasure of the Member executing it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each meeting of Members shall be conducted by an Officer designated by the Managing Member or such other
natural Person as the Managing Member deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On any matter that is to be voted on, consented to or approved by Members, the Members may take such action
without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, shall be signed by the Members having not less than the minimum number of votes that would be necessary to authorize
or take such action at a meeting at which all Members entitled to vote thereon were present and voted.

Section 7.3 **<u>Various Capacities</u>**. The Members acknowledge and agree that the Members or their Affiliates will from time to time act in various capacities, including as a Member and as the Company Representative.

Section 7.4 **<u>Outside Activities</u>**. To the fullest extent permitted by applicable Law, the doctrine of corporate opportunity, or any analogous doctrine, shall not apply to any Member, any of their respective Affiliates, or any of their respective officers, directors, agents, shareholders, members, and partners (each, an "**<u>Opportunities Exempt Party</u>**"). The Company renounces any interest or expectancy of the Company in, or in being offered an opportunity to participate in, or right to be offered an opportunity to participate in, any business opportunity which may be available to or known by an Opportunities Exempt Party. No Opportunities Exempt Party who acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the Company or any of its Subsidiaries shall have any duty to communicate or offer such opportunity to the Company. No Opportunities Exempt Party shall have any obligation hereunder, or as a result of any duty expressed or implied by Law, to present, offer or communicate business opportunities to the Members, the Company or its Affiliates that may become available to or known by such Opportunities Exempt Party; *provided* that such Opportunities Exempt Party may not engage in such business opportunities using confidential or proprietary information provided by or on behalf of the Company or any of its Subsidiaries to such Opportunities Exempt Party. No amendment or repeal of this <u>Section</u> <u>7.4</u> shall apply to or have any effect on the liability or alleged liability of any Opportunities Exempt Party for or with respect to any opportunities of which any such Opportunities Exempt Party becomes aware prior to such amendment or repeal. Any Person purchasing or otherwise acquiring any interest in any Units shall be deemed to have notice of and consented to the provisions of this <u>Section</u> <u>7.4</u>. Neither the alteration, amendment or repeal of this <u>Section</u> <u>7.4</u>, nor the adoption of any provision of this Agreement inconsistent with this <u>Section</u> <u>7.4</u>, shall eliminate or reduce the effect of this <u>Section</u> <u>7.4</u> in respect of any business opportunity first identified or any other matter occurring, or any cause of action, suit or claim that, but for this <u>Section</u> <u>7.4</u>, would accrue or arise, prior to such alteration, amendment, repeal or adoption. The Members expressly acknowledge and agree that, subject to the terms of any other

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agreement to which they may be bound, notwithstanding any duty otherwise existing at Law or in equity the Members and their respective Affiliates are permitted to have, and may presently or in the future have, investments or other business relationships with entities engaged in the business of the Company or any of its Subsidiaries other than through the Company or any of its Subsidiaries. Without limiting the other provisions of this Agreement and except as otherwise set forth herein, no Member shall owe any fiduciary duties to the Company or any other Member or any other Person bound by this Agreement with respect to actions taken by such Member in such Member's capacity as such.

**ARTICLE VIII** 

**TRANSFERS OF INTERESTS** 

Section 8.1 **<u>Restrictions on Transfer</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as provided in <u>Section</u> <u>3.6</u> or this <u>Article</u> <u>VIII</u>, no
Member shall Transfer all or any portion of its Interest (including any Units or other Equity Securities in the Company) without the Managing Member's prior written consent. If, notwithstanding the provisions of this <u>Section</u> <u>8.1(a)</u>, all or any portion of a Member's Interests are Transferred in violation of this <u>Section</u> <u>8.1(a)</u>, involuntarily, by operation of Law or otherwise, then without limiting any
other rights and remedies available to the other parties under this Agreement or otherwise, the Transferee of such Interest (or portion thereof) shall not be admitted to the Company as a Member or be entitled to any rights as a Member hereunder, and
the Transferor will continue to be bound by all obligations hereunder, unless and until the Managing Member consents in writing to such admission. Any attempted or purported Transfer of all or a portion of a Member's Interests in violation of
this <u>Section</u> <u>8.1(a)</u> shall be null and void and of no force or effect whatsoever. Notwithstanding anything herein to the contrary, no Class B Shares may be Transferred unless a corresponding number of Units are
Transferred therewith to the same Person receiving such Class B Shares in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding <u>Section</u> <u>8.1(a)</u>, without the Managing Member's consent, a Member
may Transfer all or a portion of its Units (together with the same number of Class B Shares) to a Permitted Transferee. In the case of multiple immediately successive Transfers, the provisions of this <u>Section</u> <u>8.1(b)</u> shall apply mutatis mutandis to any Permitted Transferee as though such Permitted Transferee were admitted as a Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In addition to any other restrictions on Transfer herein contained, including the provisions of this <u>Article VIII</u>, in no event may any Transfer or assignment of Interests (including any Units or other Equity Securities in the Company) by any Member be made (i) to any Person who lacks the legal right, power or capacity to own Interests;
(ii) to any Person who is not a "U.S. Person" (within the meaning of Section 7701(a)(30) of the Code); (iii) if such Transfer (A) would be considered to be effected on or through an "established securities
market" or a "secondary market or the substantial equivalent thereof," as such terms are used in Treasury Regulations Section 1.7704-1, (B) would result in the Company having more
than

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100 partners, within the meaning of Treasury Regulations Section 1.7704-1(h)(1) (determined taking into account the rules of Treasury Regulations Section 1.7704-1(h)(3)), or (C) would present an undue risk that the Company be treated as a "publicly traded partnership" within the meaning of Section 7704 of the Code or a successor provision or otherwise become taxable as a corporation pursuant to the Code or successor of the Code; (iv) if such Transfer would cause the Company to become, with respect to any employee benefit plan subject to Title I of ERISA, a "party-in-interest" (as defined in Section 3 (14) of ERISA) or a "disqualified person" (as defined in Section 4975(e)(2) of the Code); (v) if such Transfer would, in the opinion of counsel to the Company, cause any portion of the assets of the Company to constitute assets of any employee benefit plan pursuant to the Plan Asset Regulations or otherwise cause the Company to be subject to regulation under ERISA; (vi) if such Transfer requires the registration of such Interests or any Equity Securities issued upon any exchange of such Interests, pursuant to any applicable U.S. federal or state securities Laws; or (vii) if such Transfer subjects the Company to regulation under the Investment Company Act or the Investment Advisors Act of 1940, as amended (or any succeeding Laws). Any attempted or purported Transfer of all or a portion of a Member's Interests in violation of this <u>Section</u> <u>8.1(c)</u> shall be null and void and of no force or effect whatsoever.

Section 8.2 **<u>Notice of Transfer</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Other than in connection with Transfers made pursuant to <u>Section</u> <u>3.6</u>, each Member
shall, after complying with the provisions of this Agreement, but in any event at least ten (10) Business Days following any Transfer of Interests, give written notice to the Company of such Transfer. Each such notice shall describe the manner
and circumstances of the Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Member making a Transfer (including a deemed Transfer for U.S. federal income tax purposes as described in <u>Section</u> <u>3.6(a)(v)</u>) permitted by this Agreement shall (i) (A) at least five (5) Business Days prior to such Transfer, deliver to the Company an affidavit of non-foreign status with respect to such Member that satisfies the requirements of Section 1446(f)(2) of the Code, or (B) no more than fifteen (15) Business Days following such Transfer, provide to the Company proof that the transferee Member has
properly withheld and remitted to the Internal Revenue Service the amount of tax required to be withheld upon the Transfer by Section 1446(f) of the Code, and (ii) at least five (5) Business Days prior to such Transfer, deliver to the
Company a properly completed and executed IRS Form W-9 (dated no earlier than twenty (20) days prior to the Transfer) with respect to such transferee Member.

Section 8.3 **<u>Transferee Members</u>**. A Transferee of Interests (including any Units or other Equity Securities in the Company) pursuant to this <u>Article</u> <u>VIII</u> shall have the right to become a Member only if (a) the requirements of this <u>Article</u> <u>VIII</u> are met, (b) such Transferee executes an instrument reasonably satisfactory to the Managing Member agreeing to be bound by the terms and provisions of this Agreement and assuming all of the Transferor's then existing and future Liabilities arising under or relating to this Agreement, (c) such Transferee represents that the

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Transfer was made in accordance with this Agreement and all applicable securities Laws, and such other reasonable representations as reasonably requested by the Managing Member, (d) the Transferor or Transferee shall have reimbursed the Company for all reasonable expenses (including attorneys' fees and expenses) of any Transfer or proposed Transfer of all or a portion of a Member's Interest, whether or not consummated, or (e) if such Transferee is a natural person and such Transferee and his or her spouse is a resident of a community property jurisdiction, then such Transferee's spouse shall also execute an instrument reasonably satisfactory to the Managing Member agreeing to be bound by the terms and provisions of this Agreement to the extent of his or her community property or quasi-community property interest, if any, in such Member's Interest. Unless agreed to in writing by the Managing Member, the admission of a Member shall not result in the release of the Transferor from any Liability that the Transferor may have to each remaining Member or to the Company under this Agreement or any other Contract between the Managing Member, the Company or any of its Subsidiaries, on the one hand, and such Transferor or any of its Affiliates, on the other hand. Written notice of the admission of a Member shall be sent promptly by the Company to each remaining Member.

Section 8.4 **<u>Legend</u>**. Each certificate representing a Unit, if any, will be stamped or otherwise imprinted with a legend in substantially the following form (or if Units are issued in book-entry form, a notation in the following form will be maintained in the Company's or Transfer Agent's, as applicable, ownership ledger):

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").

THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER THE TBOC.

THE TRANSFER AND VOTING OF THESE SECURITIES IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE AMENDED AND RESTATED COMPANY AGREEMENT OF EAGLEROCK LAND OPERATING, LLC DATED AS OF , 2026 AMONG THE MEMBERS LISTED THEREIN, AS IT MAY BE AMENDED, SUPPLEMENTED AND/OR RESTATED FROM TIME TO TIME, AND NO TRANSFER OF THESE SECURITIES WILL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE ISSUER OF SUCH SECURITIES."

**ARTICLE IX** 

**ACCOUNTING; CERTAIN TAX MATTERS** 

Section 9.1 **<u>Books of Account</u>**. The Managing Member shall keep or cause to be kept at the principal office of the Company appropriate books and records with respect to the Company's business, including all books and records necessary to provide to the Members any information required pursuant to this Agreement. The books of the Company shall be maintained, for tax and financial reporting purposes, in accordance with U.S. GAAP. The Company shall permit each holder of at least five percent (5%) of the then outstanding Units and each of their

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respective designated representatives at such Member's sole cost and expense to examine the books and records of the Company at the principal office of the Company or such other location as the Managing Member shall reasonably approve during normal business hours and upon reasonable notice for any purpose reasonably related to such Member's interest as a member of the Company.

Section 9.2 **<u>Tax Elections</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and any eligible Subsidiary shall make an election (or continue a previously made election)
pursuant to Section 754 of the Code (and any similar provisions of applicable U.S. state or local Law) for the taxable year of the Company that includes the date hereof and shall not thereafter revoke such election. In addition, the Company
shall make the following elections on the appropriate forms or tax returns, if permitted under the Code or applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to adopt the calendar year as the Company's Fiscal Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to adopt the accrual method of accounting for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to elect to amortize the organizational expenses of the Company as permitted by Section 709(b) of the
Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except where the Company Representative elects to apply <u>Section</u> <u>9.5(e)</u>, to elect out
of the application of the partnership-level audit and adjustment rules of the Partnership Tax Audit Rules by making an election under Section 6226(a) of the Code, commonly known as the "push out" election, or any analogous election
under state or local tax Law, if applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) except as otherwise provided herein, any other election the Company Representative may deem appropriate and in
the best interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon request of the Company Representative, each Member shall cooperate in Good Faith with the Company in
connection with the Company's efforts to make any election pursuant to this <u>Section</u> <u>9.2</u>.

Section 9.3 **<u>Tax Returns; Information</u>**. The Company Representative shall arrange for the preparation and timely filing of all income and other tax and informational returns of the Company at the sole cost and expense of the Company (except as set forth in <u>Section</u> <u>6.9</u>). For any taxable period (or portion thereof) during which any 5% Owner held any direct or indirect interest (other than through PubCo) in the Company, the Company Representative shall provide to each 5% Owner: (a) within forty-five (45) days after the end of each taxable year, a copy of the Company's draft of the U.S. federal income tax return of the Company, together with a draft Schedule K-1 for such 5% Owner's review and comment, (b) before April 30th of the following year, a copy of each approved final U.S. federal income tax return for such taxable year, together with any statements and schedules (including final Schedule K-1) or other information which a Member may require in connection with such Member's own tax affairs, and (c) within thirty (30) days after the end of

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the Company's third fiscal quarter of each taxable year, with an estimate of such 5% Owner's share of the Company's taxable income for such taxable year as of the end of such fiscal quarter. The Company shall consider any comments to the U.S. federal income tax return of the Company or Schedule K-1 from the 5% Owners in Good Faith. Each Member acknowledges and agrees that such Member may be required to file tax returns on an extended basis. The Members agree to (a) take all actions reasonably requested by the Company or the Company Representative to comply with the Partnership Tax Audit Rules, including where applicable, filing amended returns as provided in Sections 6225 or 6226 of the Code and providing confirmation thereof to the Company Representative and (b) furnish to the Company (i) all reasonably requested certificates or statements relating to the tax matters of the Company (including without limitation an affidavit of non-foreign status pursuant to Section 1446(f)(2) of the Code), and (ii) all pertinent information in its possession relating to the Company's operations that is reasonably necessary to enable the Company's tax returns to be prepared and timely filed.

Section 9.4 **<u>Company Representative</u>**. The Managing Member is specially authorized and appointed to act as the Company Representative and to designate a "designated individual" in accordance with Treasury Regulations Section 301.6223-1(b)(3). The Company and the Members (including any Member designated as the Company Representative prior to the date hereof) shall cooperate fully with each other and shall use reasonable best efforts to cause the Managing Member (or any other Person subsequently designated) to become the Company Representative with respect to any taxable period of the Company with respect to which the statute of limitations has not yet expired, including (as applicable) by filing certifications pursuant to Treasury Regulations Section 301.6231(a)(7)-1(d). In acting as the Company Representative, the Managing Member shall act, to the maximum extent possible, to cause income, gain, loss, deduction, credit of the Company and adjustments thereto, to be allocated or borne by the Members in the same manner as such items or adjustments would have been borne if the Company could have effectively made an election under Section 6221(b) of the Code (commonly known as the "election out") or similar state or local provision with respect to the taxable period at issue. The Company Representative may retain, at the Company's expense, such outside counsel, accountants and other professional consultants as it may reasonably deem necessary in the course of fulfilling its obligations as Company Representative. With respect to any taxable period (or portion thereof) during which any 5% Owner held any direct or indirect interest (other than through PubCo) in the Company: (a) the Company Representative shall (i) consult with such 5% Owner and consider in Good Faith its recommendation prior to taking any material action in its capacity as the Company Representative under this Agreement, (ii) keep such 5% Owner informed of the status of any audit or other proceeding relating to the tax matters of the Company, and (iii) give prompt written notice to such 5% Owner of any material notices it receives from any taxing authority concerning Company tax matters, including any notice of audit, any notice of action with respect to a revenue agent's report, any notice of a 30-day appeal letter and any notice of a deficiency in tax; and (b) neither the Company Representative nor the Company shall settle or compromise any such audit or other proceeding without such 5% Owner's prior written consent, such consent not to be unreasonably withheld, conditioned, or delayed.

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Section 9.5 **<u>Withholding Tax Payments and Obligations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Withholding Tax Payments</u>. Each of the Company and its Subsidiaries may withhold from distributions,
allocations or portions thereof if it is required to do so by any applicable rule, regulation or Law, and each Member hereby authorizes the Company and its Subsidiaries to withhold or pay on behalf of or with respect to such Member any amount of
U.S. federal, state or local or non-U.S. taxes that the Company Representative determines, in Good Faith, that the Company or any of its Subsidiaries is required to withhold or pay with respect to any amount
distributable or allocable to such Member pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Tax Audits</u>. To the extent that any tax is paid by (or withheld from amounts payable to) the Company or
any of its Subsidiaries as a result of an audit or other proceeding with respect to such tax and the Company Representative determines, in Good Faith, that such tax specifically relates to one or more particular Members (including any Company Level
Taxes), such tax shall be treated as an amount of taxes withheld or paid with respect to such Member pursuant to this <u>Section</u> <u>9.5</u>. Notwithstanding any provision to the contrary in this <u>Section</u> <u>9.5</u>,
the payment by the Company of Company Level Taxes shall, consistent with the Partnership Tax Audit Rules, be treated as the payment of a Company obligation and shall be treated as paid with respect to a Member to the extent the deduction with
respect to such payment is allocated to such Member pursuant to <u>Section</u> <u>4.2(k)</u>, and such payment shall not be treated as a withholding from distributions, allocations, or portions thereof with respect to a Member. Any
determinations made by the Company Representative pursuant to this <u>Section</u> <u>9.5</u> shall be binding on the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Contribution and Indemnity Obligation</u>. Any amounts withheld or paid with respect to a Member
pursuant to <u>Section</u> <u>9.5(a)</u> or <u>(b)</u> (other than the payment of Company Level Taxes) shall be offset against any distributions to which such Member is entitled concurrently with such withholding or payment (a
"  **<u>Tax Offset</u>** "); *provided* that the amount of any distribution subject to a Tax Offset shall be treated as having been distributed to such Member pursuant to <u>Section</u> <u>5.1</u>, <u>Section</u> <u>5.2</u> or <u>Section</u> <u>10.3(b)(iii)</u> at the time such Tax Offset is made. To the extent that (i) there is a payment of Company Level Taxes relating to a Member or (ii) the amount of such
Tax Offset exceeds the distributions to which such Member is entitled during the same Fiscal Year as such withholding or payment ("  **<u>Excess Tax Amount</u>** "), the amount of such (A) Company Level Taxes or (B) Excess Tax
Amount, as applicable, shall, upon notification to such Member by the Company Representative, give rise to an obligation of such Member to make a Capital Contribution to the Company (a "  **<u>Tax Contribution Obligation</u>** "), which
Tax Contribution Obligation shall be immediately due and payable. In the event a Member defaults with respect to its Tax Contribution Obligation, the Company shall be entitled to offset the amount of a Member's Tax Contribution Obligation
against distributions to which such Member would otherwise be subsequently entitled until the full amount of such Tax Contribution Obligation has been contributed to the Company or has been recovered through offset against distributions, and, for
the avoidance of doubt, any such offset shall be treated as distributed to such Members pursuant to <u>Section</u> <u>5.3</u> or <u>Section</u> <u>10.3</u>, as applicable, at the time such offset is made. In the case of a Tax
Contribution Obligation arising from the payment of Company Level Taxes, then to the extent that the Managing Member determines it is appropriate for purposes of properly maintaining Capital

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Accounts, (x) any payment by a Member with respect to a Tax Contribution Obligation shall increase such Member's Capital Account but shall not reduce the amount (if any) that a Member is otherwise obligated to contribute to the Company, and (y) any recovery of such Tax Contribution Obligation through an offset against distributions to such Member shall not reduce such Member's Capital Account by the amount of such offset. Each Member hereby unconditionally and irrevocably grants to the Company a security interest in such Member's Units to secure such Member's obligation to pay the Company any amounts required to be paid pursuant to this <u>Section</u> <u>9.5</u>. Each Member shall take such actions as the Company may reasonably request in order to perfect or enforce the security interest created hereunder. Each Member hereby agrees to indemnify and hold harmless the Company, the other Members, the Company Representative and the Managing Member from and against any liability (including any liability for Company Level Taxes) with respect to income attributable to or distributions or other payments to such Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Continued Obligations of Former Members</u>. Any Person who ceases to be a Member shall be deemed to be a
Member solely for purposes of this <u>Section</u> <u>9.5</u>, and the obligations of a Member pursuant to this <u>Section</u> <u>9.5</u> shall survive until thirty (30) days after the closing of the applicable statute of
limitations on assessment with respect to the taxes withheld or paid by the Company or a Subsidiary that relate to the period during which such Person was actually a Member; *provided*, **  that if the Managing Member determines that seeking
indemnification for Company Level Taxes from a former Member is not practicable, or that seeking such indemnification has failed, then, in either case, the Managing Member may (i) recover any liability for Company Level Taxes from the
substituted Member that acquired directly or indirectly the applicable interest in the Company from such former Member or (ii) treat such liability for Company Level Taxes as a Company expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Company Representative Discretion Regarding Recovery of Taxes</u>. Notwithstanding the foregoing, the
Company Representative may choose not to recover an amount of Company Level Taxes or other taxes withheld or paid with respect to a Member under this <u>Section</u> <u>9.5</u> to the extent that there are no distributions to which such
Member is entitled that may be offset by such amounts, if the Company Representative determines, in its reasonable discretion, that such a decision would be in the best interests of the Members (e.g., where the cost of recovering the amount of taxes
withheld or paid with respect to such Member is not justified in light of the amount that may be recovered from such Member).

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**ARTICLE X** 

**DISSOLUTION AND TERMINATION** 

Section 10.1 **<u>Liquidating Events</u>**. The Company shall dissolve and commence winding up and liquidating upon the first to occur of the following (each, a "**<u>Liquidating Event</u>**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale, exchange or other disposition of all or substantially all of the assets and properties of the Company
and those of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the determination of the Managing Member, together with the approval of a majority in interest of the Members
to dissolve, wind up, and liquidate the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the entry of a decree of judicial dissolution of the Company pursuant to the provisions of the TBOC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) at any time that there are no Members of the Company, unless the business of the Company is continued in
accordance with the TBOC.

The Members hereby agree that the Company shall not dissolve prior to the occurrence of a Liquidating Event and that no Member shall seek a dissolution of the Company, under Section 11.314 of the TBOC or otherwise, other than based on the matters set forth in <u>subsections</u> <u>(a)</u> and <u>(b)</u> above. If it is determined by a court of competent jurisdiction that the Company has dissolved prior to the occurrence of a Liquidating Event, the Members hereby agree to continue the business of the Company without a winding up or liquidation. In the event of a dissolution pursuant to <u>Section</u> <u>10.1(b)</u>, the relative economic rights of each class of Units immediately prior to such dissolution shall be preserved to the greatest extent practicable with respect to distributions made to Members pursuant to <u>Section</u> <u>10.3</u> in connection with such dissolution, taking into consideration tax and other legal constraints that may adversely affect one or more parties to such dissolution and subject to compliance with applicable Law and regulations, unless, with respect to any class of Units, holders of a majority of the Units of such class consent in writing to a treatment other than as described above.

Section 10.2 **<u>Bankruptcy</u>**. For purposes of this Agreement, the "bankruptcy" of a Member shall mean the occurrence of any of the following: (a) any Governmental Entity shall take possession of any substantial part of the property of that Member or shall assume control over the affairs or operations thereof, or a receiver or trustee shall be appointed, or a writ, order, attachment or garnishment shall be issued with respect to any substantial part thereof, and such possession, assumption of control, appointment, writ or order shall continue for a period of 90 consecutive days; (b) a Member shall admit in writing of its inability to pay its debts when due, or make an assignment for the benefit of creditors; or apply for or consent to the appointment of any receiver, trustee or similar officer or for all or any substantial part of its property; or shall institute (by petition, application, answer, consent or otherwise) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debts, dissolution, liquidation, or similar proceeding under the Laws of any jurisdiction; or (c) a receiver, trustee or similar officer shall be appointed for such Member or with respect to all or any substantial part of its property without the application or consent of that Member, and such appointment shall continue undischarged or unstayed for a period of 90 consecutive days or any bankruptcy, insolvency, reorganization, arrangements, readjustment of debt, dissolution, liquidation or similar proceedings shall be instituted (by petition, application or otherwise) against that Member and shall remain undismissed for a period of 90 consecutive days.

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Section 10.3 **<u>Procedure</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of the dissolution of the Company for any reason, the Managing Member shall commence to wind up
the affairs of the Company and to liquidate the Company's assets; *provided* that if the Managing Member is in bankruptcy or dissolved, another Member, who shall be appointed by the affirmative vote of the holders of a majority of the
then-outstanding Units or as otherwise provided by Law ("  **<u>Winding-Up Member</u>**") shall commence to wind up the affairs of the Company. Subject to <u>Section</u> <u>10.4(a)</u>, the Managing Member or the Winding-Up Member, as applicable, shall have full right and unlimited discretion to determine in Good Faith the time, manner and terms of
any sale or sales of the Property or other assets pursuant to such liquidation, having due regard to the activity and condition of the relevant market and general financial and economic conditions; provided that, at the reasonable request of any
Member the Winding-Up Member shall cause a proper accounting to be made by a recognized firm of certified public accountants of the Company's assets, liabilities and operations through the last day of
the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable. The Members shall continue to share profits, losses and distributions during the period of liquidation in the same manner and proportion as
though the Company had not dissolved. The Company shall engage in no further business except as may be necessary, in the reasonable discretion of the Managing Member or the Winding-Up Member, as applicable, to
preserve the value of the Company's assets during the period of dissolution and liquidation. The costs of liquidation shall be borne as an expense of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following the payment of all expenses of liquidation and the allocation of all Profits and Losses as provided
in <u>Article IV</u>, the proceeds of the liquidation and any other funds of the Company shall be distributed in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, to the payment and discharge of all of the Company's debts and Liabilities to creditors (whether
third parties or Members), in the order of priority as provided by Law, except any obligations to the Members in respect of their Capital Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, to set up such cash reserves that the Managing Member or the Winding-Up Member, as applicable, reasonably deems necessary for contingent or unforeseen Liabilities or future payments (solely to third parties, other than amounts described in <u>Section</u> <u>6.9</u>) described in <u>Section</u> <u>10.3(b)(</u> <u>i</u> <u>)</u> (which reserves when they become unnecessary shall be distributed in accordance with the provisions of <u>subsection</u> <u>(iii)</u>, below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Third, the balance to the Members, pro rata in accordance with the number of Units owned by each Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as provided in <u>Section</u> <u>10.4(a)</u>, no Member shall have any right to demand or
receive property other than cash upon the dissolution, liquidation and termination of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the completion of the liquidation of the Company and the distribution of all proceeds of the liquidation
and any other funds of the Company, the Company shall terminate and the Managing Member or the Winding-Up Member, as the case may be, shall have the authority to execute and record a certificate of
cancellation of the Company, as well as any and all other documents required to effectuate the dissolution and termination of the Company.

Section 10.4 **<u>Rights of Members</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the maximum extent permitted by Law, each Member irrevocably waives any right that it may have to maintain
an action for partition with respect to the property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in this Agreement, (i) each Member shall look solely to the assets of the
Company for the return of its Capital Contributions, and (ii) no Member shall have priority over any other Member as to the return of its Capital Contributions, distributions or allocations or rights upon dissolution or liquidation of the
Company.

Section 10.5 **<u>Notices of Dissolution</u>**. In the event a Liquidating Event occurs or an event occurs that would, but for the provisions of <u>Section</u> <u>10.1</u>, result in a dissolution of the Company, the Company shall, within ten (10) days thereafter, (a) provide written notice thereof to each of the Members and to all other parties with whom the Company regularly conducts business (as determined by the Managing Member), and continue to keep such parties apprised of matters relevant to the winding up of the Company and (b) comply, in a timely manner, with all filing and notice requirements under the TBOC or any other applicable Law.

Section 10.6 **<u>Reasonable Time for Winding Up</u>**. A reasonable time shall be allowed for the orderly winding up of the business and affairs of the Company and the liquidation of its assets in order to minimize any losses that might otherwise result from such winding up.

Section 10.7 **<u>No Deficit Restoration</u>**. No Member shall be personally liable for a deficit Capital Account balance of that Member, it being expressly understood that the distribution of liquidation proceeds shall be made solely from existing Company assets.

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**ARTICLE XI** 

**GENERAL** 

Section 11.1 **<u>Amendments; Waivers</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The terms and provisions of this Agreement may be waived, modified or amended (including by means of merger,
consolidation or other business combination to which the Company is a party) by the Managing Member together with a majority in interest of the Members; *provided, however* that no waiver, modification or amendment shall be effective until at
least five (5) Business Days after written notice is provided to the Members, and, for the avoidance of doubt, any Member shall have the right to file a Redemption Notice in accordance with <u>Section</u> <u>3.6</u> prior to the
effectiveness of any material waiver, modification or amendment; and *provided*, *further*, that no amendment to this Agreement may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) modify the limited liability of any Member, or increase the liabilities or obligations of any Member, in each
case, without the consent of each such affected Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) materially alter or change any rights, preferences or privileges of any Interests in a manner that is different
or prejudicial relative to any other Interests, without the approval of Members holding     percent (%) of the Interests affected in such a different or prejudicial manner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) adversely affect the Existing Owners, without prior consent of the Existing Owners owning at
least     percent (%) of the Interests owned by all Existing Owners, which consent may be withheld in their discretion, such consent right to exist only so long as the Existing Owners, directly or
indirectly, own at least     percent (%) of the outstanding Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing <u>subsection (a)</u>, the Managing Member, acting alone, may amend this
Agreement, or update the books and records of the Company, (i) to reflect matters of an administrative nature that are necessary in order to implement the substantive provisions hereof, (ii) to reflect the admission of new Members,
Transfers of Interests, the issuance of additional Units or Equity Securities, as provided by the terms of this Agreement, and, subject to <u>Section</u> <u>11.1(a)</u>, subdivisions or combinations of Units made in compliance with <u>Section</u> <u>3.1(g)</u>, (iii) to the minimum extent necessary to comply with or administer in an equitable manner the Partnership Tax Audit Rules in any manner determined by the Managing Member and (iv) as necessary to
avoid the Company being classified as a "publicly traded partnership" within the meaning of Section 7704(b) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No waiver of any provision or default under, nor consent to any exception to, the terms of this Agreement or
any agreement contemplated hereby shall be effective unless in writing and signed by the party to be bound and then only to the specific purpose, extent and instance so provided. No failure by any party to insist upon strict performance of any
covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach of any other covenant, duty, agreement or condition.

Section 11.2 **<u>Further Action</u>**. The parties hereto shall execute and deliver all documents, provide all information and take or refrain from taking action from time to time, upon the reasonable request of another party thereto, as may be necessary or appropriate to achieve the purposes of this Agreement.

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Section 11.3 **<u>Binding Effect</u>**. All of the terms and provisions of this Agreement shall be binding upon the parties and their respective successors and assigns, but shall inure to the benefit of and be enforceable by the successors and assigns of any Member only to the extent that they are permitted successors and assigns pursuant to the terms hereof. No party may assign its rights hereunder except as herein expressly permitted.

Section 11.4 **<u>Certain Representations by Members</u>**. Each Member, by executing this Agreement and becoming a Member, whether by making a Capital Contribution, by admission in connection with a permitted Transfer, or otherwise, represents and warrants to the Company and the Managing Member, as of the date of its admission as a Member, that such Member (or, if such Member is disregarded for U.S. federal income tax purposes, such Member's regarded owner for such purpose) is either: (a) not a partnership, grantor trust, or Subchapter S corporation for U.S. federal income tax purposes (e.g., an individual or a Subchapter C corporation), or (b) is a partnership, grantor trust, or Subchapter S corporation for U.S. federal income tax purposes, but (i) permitting the Company to satisfy the 100-partner limitation set forth in Treasury Regulations Section 1.7704-1(h)(1)(ii) is not a principal purpose of any beneficial owner of such Member in investing in the Company through such Member, (ii) such Member was formed for business purposes prior to or in connection with the investment by such Member in the Company or for estate planning purposes, and (iii) no beneficial owner of such Member has a redemption or similar right with respect to such Member that is intended to correlate to such Member's right to Redemption pursuant to <u>Section</u> <u>3.6</u>.

Section 11.5 **<u>Entire Agreement</u>**. This Agreement, together with all Exhibits and Schedules hereto and all other agreements referenced therein and herein, including the Contribution Agreement, the Shareholder's Agreements and the Registration Rights Agreement, constitute the entire agreement between the parties hereto pertaining to the subject matter hereof and thereof and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the parties in connection with the subject matter hereof except as specifically set forth herein and therein.

Section 11.6 **<u>Rights of Members Independent</u>**. The rights available to the Members under this Agreement and at Law shall be deemed to be several and not dependent on each other and each such right accordingly shall be construed as complete in itself and not by reference to any other such right. Any one or more and/or any combination of such rights may be exercised by a Member and/or the Company from time to time and no such exercise shall exhaust the rights or preclude another Member from exercising any one or more of such rights or combination thereof from time to time thereafter or simultaneously.

Section 11.7 **<u>Governing Law</u>**. This Agreement, the legal relations between the parties and any Action, whether contractual or non-contractual, instituted by any party with respect to matters arising under or growing out of or in connection with or in respect of this Agreement shall be governed by and construed in accordance with the Laws of the State of Texas applicable to contracts made and performed in such State and without regard to conflicts of Law doctrines, except to the extent that certain matters are preempted by federal Law or are governed as a matter of controlling Law by the Law of the jurisdiction of organization of the respective parties.

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Section 11.8 **<u>Jurisdiction and Venue</u>**. The parties hereto hereby agree and consent to be subject to the jurisdiction of the Business Court in the Eleventh Business Court Division of the State of Texas (or, if the Business Court in the Eleventh Business Court Division of the State of Texas lacks jurisdiction, the United States District Court for the Southern District of Texas, or, if the United States District Court for the Southern District of Texas lacks jurisdiction, the district courts of Harris County, Texas, in each case, subject to that court having personal jurisdiction over the indispensable parties named defendants therein) over any action, suit or proceeding (a "**<u>Legal Action</u>**") arising out of or in connection with this Agreement. The parties hereto irrevocably waive the defense of an inconvenient forum to the maintenance of any such Legal Action. Each of the parties hereto further irrevocably consents to the service of process out of any of the aforementioned courts in any such Legal Action by the mailing of copies thereof by registered mail, postage prepaid, to such party at its address set forth in this Agreement, such service of process to be effective upon acknowledgment of receipt of such registered mail. Nothing in this <u>Section</u> <u>11.8</u> shall affect the right of any party hereto to serve legal process in any other manner permitted by Law.

Section 11.9 **<u>Headings</u>**. The descriptive headings of the Articles, Sections and subsections of this Agreement are for convenience only and do not constitute a part of this Agreement.

Section 11.10 **<u>Counterparts</u>**. This Agreement and any amendment hereto or any other agreement (or document) delivered pursuant hereto may be executed in one or more counterparts and by different parties in separate counterparts. All of such counterparts shall constitute one and the same agreement (or other document) and shall become effective (unless otherwise provided therein) when one or more counterparts have been signed by each party and delivered to the other party.

Section 11.11 **<u>Notices</u>**. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via electronic mail as specified in this <u>Section</u> <u>11.11</u> prior to 5:00 p.m. in the time zone of the receiving party on a Business Day, (b) the Business Day after the date of transmission, if such notice or communication is delivered via facsimile or electronic mail as specified in this Agreement no later than 5:00 p.m. in the time zone of the receiving party on any date, (c) the Business Day following the date of mailing, if sent by nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

If to the Company or the Managing Member, addressed to it at:

EagleRock Land Operating, LLC

9655 Katy Freeway, Suite 375

Houston, Texas 77024

Electronic mail:

Attention: General Counsel

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With copies (which shall not constitute notice) to:

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, Texas 77024

Electronic mail:

Attention: General Counsel

Vinson & Elkins L.L.P.

845 Texas Ave, Suite 4700

Houston, TX 77002

Electronic mail: mtelle@velaw.com; srubinsky@velaw.com

Attention: Michael S. Telle; Scott D. Rubinsky

or to such other address or to such other Person as either party shall have last designated by such notice to the other parties.

Section 11.12 **<u>Representation By Counsel; Interpretation</u>**. The parties acknowledge that each party to this Agreement has been represented by counsel in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of Law, or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the party that drafted it has no application and is expressly waived.

Section 11.13 **<u>Severability</u>**. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby and this Agreement shall, to the fullest extent permitted by Law, be reformed and construed as if such invalid, illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provisions or part reformed so that it would be valid, legal and enforceable to the maximum extent possible.

Section 11.14 **<u>Consent of Members</u>**. Each Member hereby expressly consents and agrees that, whenever in this Agreement it is specified that an action may be taken upon the affirmative vote or consent of the Managing Member or less than all of the Members, such action may be so taken upon the determination of the Managing Member or the concurrence of less than all of the Members, as applicable, and each Member shall be bound by the results of such action.

Section 11.15 **<u>Expenses</u>**. Except as otherwise provided in this Agreement, each party shall bear its own expenses in connection with the transactions contemplated by this Agreement.

Section 11.16 **<u>Waiver of Jury Trial</u>**. EACH OF THE COMPANY, THE MEMBERS, THE MANAGING MEMBER AND ANY INDEMNITEES SEEKING REMEDIES HEREUNDER, HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE.

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Section 11.17 **<u>No Third Party Beneficiaries</u>**. Except as expressly provided in <u>Section</u> <u>6.4</u> and <u>Section</u> <u>10.3</u>, nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto and their respective successors and permitted assignees, any rights or remedies under this Agreement or otherwise create any third party beneficiary hereto.

[Signatures on Next Page]

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**IN WITNESS WHEREOF**, each of the parties hereto has caused this Amended and Restated Company Agreement to be executed as of the day and year first above written.

---

| |
|:---|
| **COMPANY:** |
| **EAGLEROCK LAND OPERATING, LLC** |
| By: |
| Name: Robert W. Hunt Jr. |
| Title: General Counsel |
| **PUBCO, as Managing Member:** |
| **EAGLEROCK LAND, LLC** |
| By: |
| Name: Robert W. Hunt Jr. |
| Title: General Counsel |

---

SIGNATURE PAGE TO

AMENDED AND RESTATED COMPANY AGREEMENT OF

EAGLEROCK LAND OPERATING, LLC

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**<u>EXHIBIT A</u>**

## Exhibit 10.2

**Exhibit 10.2** 

**INDEMNIFICATION AGREEMENT** 

This Indemnification Agreement, dated as of , 2026 (this "**<u>Agreement</u>**"), is by and between EagleRock Land, LLC, a Texas limited liability company (the "**<u>Company</u>**"), and the individual identified as the Indemnitee on the signature page hereto ("**<u>Indemnitee</u>**").

WHEREAS, both the Company and Indemnitee recognize that directors, officers and other persons in service to companies and business enterprises are subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have only been brought against the Company or business enterprise itself;

WHEREAS, highly competent persons have become more reluctant to serve as directors, officers or in other capacities unless they are provided with adequate protection through insurance and adequate indemnification against inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, companies and business enterprises;

WHEREAS, it is essential to the Company to attract and retain as directors and officers, as well as other persons in service to the Company, the most capable persons available;

WHEREAS, the board of directors of the Company (the "**<u>Board</u>**") has determined that the inability of the Company to attract and retain as directors and officers the most capable persons available would be detrimental to the interests of the Company and the Company therefore should provide indemnification and insurance coverage for directors, officers and other persons in service to the Company for claims and actions against them arising out of their service to, and activities on behalf of, the Company;

WHEREAS, the Amended and Restated Limited Liability Company Agreement of the Company, dated as of even date herewith (as amended from time to time, the "**<u>LLC Agreement</u>**"), requires the Company to indemnify and advance expenses to (i) its directors and officers, (ii) any person who is or was serving at the request of the Company as an officer, director, member, partner, fiduciary or trustee of another person (including any subsidiary) and (iii) any person the Board designates as an indemnified person for purposes of the LLC Agreement, in each case, to the fullest extent permitted by law;

WHEREAS, Indemnitee has been serving and continues to serve as a director and/or officer of the Company in part in reliance on the director and/or officer indemnification provisions set forth in the LLC Agreement;

WHEREAS, applicable law, including the Texas Business Organizations Code, Tex. Bus. Orgs. Code § 101.001, et seq., as amended, supplemented or restated from time to time, and any successor to such statute (the "**<u>TBOC</u>**"), may also entitle the Indemnitee to indemnification, and the LLC Agreement expressly provides that the indemnification provisions set forth therein are not exclusive and thereby contemplate that contracts may be entered into between the Company and directors, officers and other persons, including Indemnitee, with respect to indemnification;

WHEREAS, the parties intend that any rights Indemnitee may have from Indemnitee-Related Entities (as defined herein) shall be secondary to the primary obligation of the Company to indemnify and hold harmless Indemnitee under this Agreement; and

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WHEREAS, in recognition of Indemnitee's need for protection against personal liability, and in part to provide Indemnitee with specific contractual assurance that the protection promised by the LLC Agreement will be available to Indemnitee (regardless of, among other things, any amendment to or revocation of the LLC Agreement, any change in the composition of the Board or any acquisition of, or other transaction relating to, the Company), the Company wishes to provide for the indemnification of, and the advancing of expenses to, Indemnitee to the fullest extent (whether partial or complete) permitted by law, and for the continued coverage of Indemnitee under the directors' and officers' liability insurance policy of the Company, in each case as set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and of Indemnitee continuing to serve the Company directly or, at its request, another enterprise, and intending to be legally bound hereby, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Certain Definitions</u>**. In addition to terms defined elsewhere herein, the following terms have the following meanings when used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Claim</u>**: means any threatened, asserted, pending or completed action, suit or proceeding, whether civil, criminal, administrative, investigative or other, including any arbitration or other alternative dispute resolution mechanism, or any appeal of any kind thereof, or any inquiry or investigation, whether instituted by (or in the right of) the Company or any governmental agency or any other person or entity, in which Indemnitee was, is, may be or will be involved as a party, witness or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Disinterested Director</u>**: means a director of the Company who is not and was not a party to the Claim in respect of which indemnification is sought by the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>ERISA</u>**: means the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Expenses</u>**: include attorneys' fees and all other direct or indirect costs, expenses and obligations, including judgments, fines, penalties, interest, appeal bonds, amounts paid in settlement with the approval of the Company, and counsel fees and disbursements (including experts' fees, court costs, retainers, appeal bond premiums, transcript fees, duplicating, printing and binding costs, as well as telecommunications, postage and courier charges) paid or incurred in connection with investigating, prosecuting, defending, being a witness in or participating in any manner in (including on appeal), or preparing to investigate, prosecute, defend, be a witness in or participate in any manner in, any Claim relating to any Indemnifiable Event, and shall include all attorneys' fees and other expenses incurred by or on behalf of an Indemnitee in connection with preparing and submitting any requests or statements for indemnification, advancement or any other right provided by this Agreement (including such fees or expenses incurred in connection with legal proceedings contemplated by <u>Section</u> <u>2(d)</u> hereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Indemnifiable Amounts</u>**: means (i) any and all liabilities, Expenses, damages, judgments, fines, penalties, ERISA excise taxes and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such liabilities, Expenses, damages, judgments, fines, penalties, ERISA excise taxes or amounts paid in settlement) arising out of or resulting from any Claim relating to an Indemnifiable Event, (ii) any liability pursuant to a loan guaranty or otherwise, for any indebtedness of the Company or any subsidiary of the Company, including any indebtedness which the Company or any subsidiary of the Company has assumed or taken subject to, and (iii) any liabilities that an Indemnitee incurs as a result of acting on behalf of the Company (whether as a fiduciary or otherwise) in connection with the operation, administration or maintenance of an employee benefit plan or any related trust or funding mechanism (whether such liabilities are in the form of excise taxes assessed by the United States Internal Revenue Service, penalties assessed by the Department of Labor, restitutions to such a plan or trust or other funding mechanism or to a participant or beneficiary of such plan, trust or other funding mechanism, or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Indemnifiable Event</u>**: means any event or occurrence, whether occurring before, on or after the date of this Agreement, related to the fact that Indemnitee is or was a director and/or officer or fiduciary of the Company, or is or was serving on behalf or at the request of the Company as a director, officer, employee, manager, member, partner, tax matters partner, trustee, agent, fiduciary or similar capacity, of another company, corporation, limited liability company, partnership, joint venture, employee benefit plan, trust or other entity or enterprise, or by reason of anything done or not done by Indemnitee in any such capacity (in all cases whether or not Indemnitee is acting or serving in any such capacity or has such status at the time any Indemnifiable Amount is incurred for which indemnification, advancement or any other right can be provided by this Agreement). The term "Company," where the context requires when used in this Agreement, may be construed to include such other company, corporation, limited liability company, partnership, joint venture, employee benefit plan, trust or other entity or enterprise for which Indemnitee is or was serving on behalf or at the request of the Company in such aforementioned role.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Indemnitee-Related Entities</u>**: means any company, corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity or enterprise (other than the Company or any other company, corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity or enterprise Indemnitee has agreed, on behalf or at the request of the Company, to serve as a director, officer, employee or agent and for which service is covered by the rights to indemnification described in this Agreement) from whom an Indemnitee may be entitled to indemnification or advancement of Expenses with respect to which, in whole or in part, the Company may also have an indemnification or advancement obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **<u>Independent Counsel</u>**: means a law firm of fifty or more attorneys, or a member of a law firm of fifty or more attorneys, with significant experience in matters of corporate law and that neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Jointly Indemnifiable Claim</u>**: means any Claim for which the Indemnitee may be entitled to indemnification from both an Indemnitee-Related Entity and the Company pursuant to applicable law, any indemnification agreement or the certificate of incorporation, by-laws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or comparable organizational documents of the Company and an Indemnitee-Related Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **<u>Reviewing Party</u>**: means, at the election of the Board, (i) a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (ii) a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, or (iii) if there are no such Disinterested Directors, or if such Disinterested Directors so direct, Independent Counsel in a written opinion delivered to the Board, a copy of which will also be delivered to Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **<u>Voting Securities</u>**: means any securities of the Company that vote generally in the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Basic Indemnification Arrangement; Advancement of Expenses</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section</u> <u>2(d)</u>, in the event Indemnitee was, is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a Claim by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee, or cause Indemnitee to be indemnified, to the fullest extent permitted by law as soon as practicable but in any event no later than 30 days after written demand is presented to the Company, and hold Indemnitee harmless against any and all Indemnifiable Amounts. For the avoidance of doubt, Indemnitee shall not be denied indemnification in whole or in part under this Agreement because Indemnitee had an interest in the transaction with respect to which indemnification applies if the transaction was otherwise permitted by the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If so requested by Indemnitee, the Company shall advance, or cause to be advanced (within two business days of such request), any and all Expenses incurred by Indemnitee (an "**<u>Expense Advance</u>**"). The Company shall, in accordance with such request (but without duplication), either (i) pay, or cause to be paid, such Expenses on behalf of Indemnitee or (ii) reimburse, or cause the reimbursement of, Indemnitee for such Expenses. Subject to <u>Section</u> <u>2(d)</u>, Indemnitee's right to an Expense Advance is absolute and shall not be subject to any prior determination by the Reviewing Party that the Indemnitee has satisfied any applicable standard of conduct for indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement to the contrary, Indemnitee shall not be entitled to indemnification or advancement of Expenses pursuant to this Agreement in connection with any Claim initiated by Indemnitee unless (i) the Company has joined in, or the Board has authorized or consented to, the initiation of such Claim or (ii) the Claim is one to enforce Indemnitee's rights under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, (i) the indemnification obligations of the Company under <u>Section</u> <u>2(a)</u> shall be subject to the condition that the Reviewing Party shall not have determined that Indemnitee would not be permitted to be indemnified under applicable law, and (ii) the obligation of the Company to make an Expense Advance pursuant to <u>Section</u> <u>2(b)</u> shall be subject to the condition that, if, when and to the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore paid (it being understood and agreed that the foregoing agreement by Indemnitee shall be deemed to satisfy any requirement that Indemnitee provide the Company with an undertaking to repay any Expense Advance if it is ultimately determined that the Indemnitee is not entitled to indemnification under applicable law); provided, that if Indemnitee has commenced or thereafter commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). Indemnitee's undertaking to repay such Expense Advances shall be unsecured and interest-free. The Reviewing Party shall be selected by the Board. If there has been no determination by the Reviewing Party within 30 days after written demand is presented to the Company, the Indemnitee shall be deemed to be entitled to indemnification pursuant to this Agreement and the Reviewing Party's determination pursuant to this <u>Section</u> <u>2(d)</u> shall be deemed to have concluded. If the Reviewing Party fails to make a determination or determines that Indemnitee would not be permitted to be indemnified in whole or in part under applicable law, Indemnitee shall have the right to commence litigation in any court in the State of Texas having subject matter jurisdiction thereof and in which venue is proper seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to service of process and to appear in any such proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company agrees to pay the reasonable fees and expenses of Independent Counsel and to fully indemnify and hold harmless such Independent Counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or such Independent Counsel's engagement pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Indemnification for Additional Expenses</u>**. The Company shall indemnify, or cause the indemnification of, Indemnitee against any and all Expenses and, if requested by Indemnitee, shall advance such Expenses to Indemnitee subject to and in accordance with <u>Section</u> <u>2(b)</u>, which are incurred by Indemnitee in connection with any action brought by Indemnitee for (a) indemnification or an Expense Advance by the Company under this Agreement or any provision of the Company's LLC Agreement now or hereafter in effect and/or (b) recovery under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, Expense Advance or insurance recovery, as the case may be; provided that Indemnitee shall be required to reimburse such Expenses in the event that a final judicial determination is made (as to which all rights of appeal therefrom have been exhausted or lapsed) that such action brought by Indemnitee, or the defense by Indemnitee of an action brought by the Company or any other person, as applicable, if it shall ultimately be determined that such Indemnitee is not entitled to be indemnified by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Partial Indemnity, Etc</u>**. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses or other Indemnifiable Amounts in respect of a Claim but not, however, for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Burden of Proof, Etc</u>**. In connection with any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified hereunder, the Reviewing Party, court, any finder of fact or other relevant person shall presume that the Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification, and the burden of proof shall be on the Company (or any other person or entity disputing such conclusions) to establish, by clear and convincing evidence, that Indemnitee is not so entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Reliance as Safe Harbor</u>**. For purposes of this Agreement, Indemnitee shall be deemed to have acted in a manner to be in or not opposed to the best interests of the Company if Indemnitee's actions or omissions to act are taken in reliance upon the records of the Company, including its financial statements, or upon information, opinions, reports or statements furnished to Indemnitee by the officers or employees of the Company and its subsidiaries in the course of their duties, or by committees of the Board, or by any other person (including legal counsel, accountants and financial advisors) as to matters Indemnitee believes are within such other person's professional or expert competence. In addition, the knowledge and/or actions, or failures to act, of any other director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnity hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>No Other Presumptions</u>**. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing Party to have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual determination by the Reviewing Party that Indemnitee has not met such standard of conduct or did not have such belief, prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be indemnified under applicable law shall be a defense to Indemnitee's claim or create a presumption that Indemnitee has not met any particular standard of conduct or did not have any particular belief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Nonexclusivity, Etc</u>**. The rights of the Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the LLC Agreement, the TBOC or otherwise. To the extent that a change in applicable law (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under the LLC Agreement or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. To the extent that there is a conflict or inconsistency between the terms of this Agreement or the LLC Agreement, it is the intent of the parties hereto that the Indemnitee shall enjoy the greater benefits regardless of whether contained herein or in the LLC Agreement. No amendment or alteration of the LLC Agreement or any other agreement shall adversely affect the rights provided to Indemnitee under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Liability Insurance</u>**. To the extent the Company maintains an insurance policy providing directors' and officers' liability insurance, the Indemnitee shall be covered by such policy in accordance with its terms to the maximum extent of the coverage available for the Company's directors and officers. If the Company has such insurance in effect at the time the Company receives from Indemnitee any notice of the commencement of an action, suit or proceeding, the Company shall give prompt notice of the commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the policy governing such insurance. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Period of Limitations</u>**. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee's spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Amendments, Etc</u>**. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Subrogation</u>**. Subject to <u>Section</u> <u>13</u> hereof, in the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers reasonably required and shall do everything that may be reasonably necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. The Company shall pay or reimburse all Expenses actually and reasonably incurred by Indemnitee in connection with such subrogation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Jointly Indemnifiable Claims</u>**. Given that certain Jointly Indemnifiable Claims may arise due to the relationship between the Indemnitee-Related Entities and the Company and the service of Indemnitee to the Company at the request of the Indemnitee-Related Entities, the Company acknowledges and agrees that the Company shall be fully and primarily responsible for the payment to Indemnitee in respect of indemnification and advancement of expenses in connection with any such Jointly Indemnifiable Claim, pursuant to and in accordance with the terms of this Agreement, irrespective of any right of recovery Indemnitee may have from the Indemnitee-Related Entities. Under no circumstance shall the Company be entitled to any right of subrogation or contribution by the Indemnitee-Related Entities and no right of recovery Indemnitee may have from the Indemnitee-Related Entities shall reduce or otherwise alter the

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rights of Indemnitee or the obligations of the Company hereunder. In the event that any of the Indemnitee-Related Entities shall make any payment to Indemnitee in respect of indemnification or advancement of Expenses with respect to any Jointly Indemnifiable Claim, the Company agrees that such payment or advancement shall not extinguish or affect in any way the rights of Indemnitee under this Agreement and further agrees that the Indemnitee-Related Entity making such payment shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee against the Company. Each of the Indemnitee-Related Entities shall be third-party beneficiaries with respect to this <u>Section</u> <u>13</u>, entitled to enforce this <u>Section</u> <u>13</u> against the Company as though each such Indemnitee-Related Entity were a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>No Duplication of Payments</u>**. Subject to <u>Section</u> <u>13</u> hereof, the Company shall not be liable under this Agreement to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy, or any provision of the LLC Agreement or otherwise) of the amounts otherwise indemnifiable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Defense of Claims</u>**. The Company shall be entitled to participate in the defense of any Claim relating to an Indemnifiable Event or to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee; provided that if Indemnitee reasonably believes, after consultation with counsel selected by Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with an actual or potential conflict of interest, (b) the named parties in any such Claim (including any impleaded parties) include both the Company, or any subsidiary of the Company, and Indemnitee and Indemnitee concludes that there may be one or more legal defenses available to him or her that are different from or in addition to those available to the Company or any subsidiary of the Company, or (c) any such representation by such counsel would be precluded under the applicable standards of professional conduct then prevailing, then Indemnitee shall be entitled to retain separate counsel (but not more than one law firm plus, if applicable, one local counsel in each applicable jurisdiction in respect of any particular Claim) at the Company's expense. The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any Claim relating to an Indemnifiable Event effected without the Company's prior written consent. The Company shall not, without the prior written consent of the Indemnitee, effect any settlement of any Claim relating to an Indemnifiable Event that the Indemnitee is or could have been a party unless such settlement solely involves the payment of money and includes a complete and unconditional release of Indemnitee from all liability on all claims that are the subject matter of such Claim. Neither the Company nor Indemnitee shall unreasonably withhold, condition or delay its, his or her consent to any proposed settlement; provided that Indemnitee may withhold consent to any settlement that does not provide a complete and unconditional release of Indemnitee. In no event shall Indemnitee be required to waive, prejudice or limit attorney-client privilege or work-product protection or other applicable privilege or protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>No Adverse Settlement</u>**. The Company shall not seek, nor shall it agree to, consent to, support, or agree not to contest any settlement or other resolution of any Claim, or settlement or other resolution of any other claim, action, proceeding, demand, investigation or other matter that has the actual or purported effect of extinguishing, limiting or impairing Indemnitee's rights hereunder, including the entry of any bar order or other order, decree or stipulation, pursuant to 15 U.S.C. § 78u-4 (the Private Securities Litigation Reform Act), or any similar foreign, federal or state statute, regulation, rule or law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Binding Effect, Etc</u>**. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor or continuing company by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect successor by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Company, by written agreement in form and substance reasonably satisfactory to Indemnitee and his or her counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve the Company or any other entity or enterprise on behalf of the Company or at the Company's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Security</u>**. To the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to Indemnitee for the obligations of the Company hereunder through an irrevocable bank line of credit, funded trust or other collateral or by other means. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of such Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Severability</u>**. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (b) to the fullest extent possible, the provisions of this Agreement (including all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Specific Performance, Etc</u>**. The parties hereto recognize that if any provision of this Agreement is violated by the Company, Indemnitee may be without an adequate remedy at law. Accordingly, in the event of any such violation, Indemnitee shall be entitled, if Indemnitee so elects, to institute proceedings, either in law or at equity, to obtain damages, to enforce specific performance, to enjoin such violation without proof of damages or the posting of a bond, or to obtain any relief or any combination of the foregoing as Indemnitee may elect to pursue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Notices</u>**. All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if contained in a written document delivered in person, sent by nationally recognized overnight courier or personal delivery or sent by electronic transmission, addressed to such party at the address set forth below or such other address as may hereafter be designated on the signature pages of this Agreement or in writing by such party to the other parties:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company, to:

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, TX 77024

Attn: General Counsel

Email:

with a copy (which shall not constitute notice) to:

Vinson & Elkins L.L.P.

845 Texas Avenue, Suite 4700

Houston, Texas 77002

Attn: Michael S. Telle; Scott D. Rubinsky

Email: mtelle@velaw.com; srubinsky@velaw.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to Indemnitee, to the address set forth on the signature page hereto.

All such notices, requests, consents and other communications shall be deemed to have been given or made if and when received (including by overnight courier) by the parties at the above addresses or sent by electronic transmission. Any notice delivered by any party hereto to any other party hereto shall also be delivered to each other party hereto simultaneously with delivery to the first party receiving such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Counterparts</u>**. This Agreement may be executed in counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Headings</u>**. The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction or interpretation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Governing Law</u>**. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas applicable to contracts made and to be performed in such state without giving effect to the principles of conflicts of laws. EACH PARTY HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF, OR RELATING TO, THIS AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Further Assurances</u>**. The parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Recitals Part of Agreement</u>**. The Recitals set forth on the first page of this Agreement are, and shall be deemed, material and operative provisions of this Agreement and are hereby incorporated and made part of this Agreement with the same force and effect as if fully repeated herein.

(*Signature Page Follows*.)

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

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| | |
|:---|:---|
| EAGLEROCK LAND, LLC | EAGLEROCK LAND, LLC |
| By: |  |
| Name: | Greg Pipkin Jr. |
| Title: | Chief Executive Officer |
| INDEMNITEE | INDEMNITEE |
| By: |  |
| Name: |  |
| Address: |  |

---

Signature Page to Indemnification Agreement

## Exhibit 10.3

**Exhibit 10.3** 

**FORM OF SHAREHOLDER'S AGREEMENT** 

This **SHAREHOLDER'S AGREEMENT** (this "***Agreement***"), dated as of , 2026, is entered into by and between EagleRock Land, LLC, a Texas limited liability company (the "***Company***") and the shareholder identified on the signature page hereto (the "***Sponsor***").

WHEREAS, in connection with, and effective upon, the completion of the Company's IPO (as defined below), the Sponsor and the Company desire to enter into this Agreement to set forth certain understandings between themselves.

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

**ARTICLE I** 

**DEFINITIONS** 

Section 1.1 <u>Certain Definitions</u>. As used in this Agreement, the following terms shall have the following meanings:

"***Affiliate***" means, with respect to any specified Person, a Person that directly or indirectly Controls or is Controlled by, or is under common Control with, such specified Person; *provided* that, for purposes of this Agreement, the Sponsor shall not be deemed to be an Affiliate of the Company and its Affiliates.

"***Beneficial Owner***" of a security is a Person who directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares (a) voting power, which includes the power to vote, or to direct the voting of, such security and/or (b) investment power, which includes the power to dispose of, or to direct the disposition of, such security. The terms "***Beneficially Own***" and "***Beneficial Ownership***" shall have correlative meanings. For the avoidance of doubt, for purposes of this Agreement, the Sponsor is deemed to Beneficially Own the Common Shares owned by it.

"***Board***" means the Board of Directors of the Company.

"***Certificate of Formation***" means the Certificate of Formation of the Company, dated as of December 1, 2025.

"***Class A Shares***" means Class A Shares representing limited liability interests of the Company.

"***Class B Shares***" means Class B Shares representing limited liability interests of the Company.

"***Common Shares***" means the Class A Shares and Class B Shares, considered as a single class.

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"***Control***" (including the terms "***Controls***," "***Controlled by***" and "***under common Control with***") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

"***Distributee***" has the meaning set forth in <u>Section</u> <u>2.1(c)</u>.

"***IPO***" means the initial public offering of Class A Shares by the Company.

"***LLCA***" means the First Amended and Restated Company Agreement of the Company, dated as of even date herewith, as may be amended from time to time.

"***Necessary Action***" means, with respect to a specified result, all actions (to the extent such actions are permitted by applicable law) necessary to cause such result, including (i) voting or providing a written consent or proxy with respect to Common Shares, (ii) causing the adoption of shareholders' resolutions and amendments to the organizational documents of the Company, (iii) executing agreements and instruments and (iv) making or causing to be made, with governmental, administrative or regulatory authorities, all filings, registrations or similar actions that are required to achieve such result.

"***Parties***" means the Company and the Sponsor.

"***Permitted Transferee***" means any Affiliate of the Sponsor; provided that each such transferee shall execute a joinder agreement to this Agreement agreeing to be bound by the terms of this Agreement.

"***Person***" means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, any court, administrative agency, regulatory body, commission or other governmental authority, board, bureau or instrumentality, domestic or foreign and any subdivision thereof or other entity, and also includes any managed investment account.

"***Proceeding***" has the meaning set forth in <u>Section</u> <u>4.7</u>.

"***Selected Courts***" has the meaning set forth in <u>Section</u> <u>4.7</u>.

"***Sponsor***" means.

"***Sponsor Director***" means any individual whom the Sponsor shall designate pursuant to <u>Section</u> <u>2.1(c)</u> and who is thereafter elected to the Board to serve as a director.

"***Sponsor Representative***" has the meaning set forth in <u>Section</u> <u>4.11</u>.

"***Trigger Event***" has the meaning set forth in the LLCA.

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Section 1.2 <u>Rules of Construction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless the context requires otherwise: (i) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms; (ii) references to Articles and Sections refer to articles and sections of this Agreement; (iii) the terms "include," "includes," "including" and words of like import shall be deemed to be followed by the words "without limitation"; (iv) the terms "hereof," "hereto," "herein" or "hereunder" refer to this Agreement as a whole and not to any particular provision of this Agreement; (v) unless the context otherwise requires, the term "or" is not exclusive and shall have the inclusive meaning of "and/or"; (vi) defined terms herein will apply equally to both the singular and plural forms and derivative forms of defined terms will have correlative meanings; (vii) references to any law or statute shall include all rules and regulations promulgated thereunder, and references to any law or statute shall be construed as including any legal and statutory provisions consolidating, amending, succeeding or replacing the applicable law or statute; (viii) references to any Person include such Person's successors and permitted assigns; and (ix) references to "days" are to calendar days unless otherwise indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The headings in this Agreement are for convenience and identification only and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party that drafted or caused this Agreement to be drafted.

**ARTICLE II** 

**GOVERNANCE MATTERS** 

Section 2.1 <u>Designees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the closing of the IPO, the Board shall consist of seven directors, including Richard H. Coats, Michael W. Wallace, Jim Nelson, Jeff Lott, Stephanie Reed, Greg Pipkin Jr. and , of which shall constitute the initial Sponsor Director(s) for purposes of this Agreement. Until the Trigger Event, the Board shall consist of a single class of directors, with the initial term of office to expire at the next annual meeting of the shareholders following the date hereof. Following the Trigger Event, the Board will be divided into three classes of directors serving staggered three-year terms. Subject to <u>Section</u> <u>2.1(e)</u>, each director will be removable only for "cause" as set forth in the LLCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the closing of the IPO, the Audit Committee of the Board shall be comprised of , and .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Sponsor Designees</u>. Following the closing of the IPO, subject to <u>Section</u> <u>2.1(d)</u>, the Sponsor shall have the right, but not the obligation, to designate for nomination to the Board the following number of directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) three (3) directors for so long as the Sponsor Beneficially Owns at least 30% of the outstanding Common Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two (2) directors for so long as the Sponsor Beneficially Owns less than 30% but at least 20% of the outstanding Common Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) one (1) director, for so long as the Sponsor Beneficially Owns less than 20%, but at least 10%, of the outstanding Common Shares.

For purposes of this <u>Section</u> <u>2.1(c)</u>, the Sponsor will be deemed to Beneficially Own outstanding Common Shares owned, directly or indirectly, by (i) the Sponsor and (ii) any member or partner of the Sponsor to whom the Sponsor distributes Common Shares (each, a "***Distributee***"), without double counting any Common Shares owned by Affiliates. For the avoidance of doubt, the Sponsor shall not be deemed to Beneficially Own Common Shares that are transferred other than pursuant to the preceding sentence or that are transferred or distributed by a Distributee.

If the authorized size of the Board is increased or decreased at any time to constitute other than seven directors, then the Sponsor's nomination rights under this <u>Section</u> <u>2.1(c)</u> shall be proportionately increased or decreased, respectively, rounded to the nearest whole number; provided that such adjustment shall not reduce the number of directors the Sponsor is entitled to nominate to fewer than the number set forth in this <u>Section</u> <u>2.1(c)</u>, as long as the Sponsor maintains the required Beneficial Ownership set forth herein.

For the avoidance of doubt, the rights granted to the Sponsor to designate directors to the Board are additive to, and not intended to limit in any way, the rights that the Sponsor or its Affiliates may have to nominate, elect or remove directors under the Company's Certificate of Formation, LLCA or the Texas Business Organizations Code.

The Company agrees, to the fullest extent permitted by applicable law, to take all Necessary Action to effectuate the designation and other rights set forth in this <u>Section</u> <u>2.1</u>, and not to take any action that would be reasonably expected to result in any of such rights not becoming effectuated, including by: (A) including the persons designated pursuant to this <u>Section</u> <u>2.1</u> in the slate of nominees recommended by the Board for election at any meeting of shareholders called for the purpose of electing directors; (B) nominating and recommending each such individual to be elected as a director as provided herein; and (C) soliciting proxies or consents in favor thereof. The Company is entitled to identify each such individual nominated pursuant to <u>Section</u> <u>2.1(c)</u> as a Sponsor Director pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Of the directors designated by the Sponsor pursuant to <u>Section</u> <u>2.1(c)</u>, at least two of the Sponsor's director designees (or if the Sponsor is designating a director pursuant to <u>Section</u> <u>2.1(c)(iii)</u>, the Sponsor's designee) shall qualify as "independent" for the purposes of serving on the Audit Committee of the Board pursuant to the rules of the New York Stock Exchange and the Securities and Exchange Commission, as determined by the Board.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that the Sponsor has designated fewer than the total number of designees the Sponsor is entitled to designate pursuant to <u>Section</u> <u>2.1(c)</u>, the Sponsor shall have the right, at any time, to designate such additional designees to which it is entitled, in which case the Company and the directors shall take all Necessary Action, to the fullest extent permitted by applicable law, to (x) enable the Sponsor to designate and effect the election or appointment of such additional individuals, whether by increasing the size of the Board or otherwise, and (y) designate each such additional individual nominated by the Sponsor to fill such newly-created vacancies or to fill any other existing vacancies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) So long as the Sponsor is entitled to designate one or more nominees pursuant to <u>Section</u> <u>2.1(c)</u>, the Sponsor shall have the right to request the removal of any Sponsor Director (with or without cause) nominated by the Sponsor, from time to time and at any time, from the Board, exercisable upon written notice to the Company, and the Company and the Sponsor shall take all Necessary Action to cause such removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Nothing in this <u>Section</u> <u>2.1</u> shall be deemed to require any Party, or any Affiliate thereof, to act or be in violation of any applicable provision of law, regulation, legal duty or requirement or stock exchange or stock market rule of any national securities exchange upon which the Class A Shares are admitted to trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Vacancies</u>. If a vacancy is created on the Board at any time by the death, disability, resignation or removal (whether by the Sponsor or otherwise in accordance with this Agreement or the Company's Certificate of Formation and LLCA) of a Sponsor Director, then the Sponsor shall be entitled to designate an individual to fill the vacancy so long as the total number of persons that will serve on the Board as Sponsor Directors designated by the Sponsor immediately following the filling of such vacancy will not exceed the total number of persons the Sponsor is entitled to designate pursuant to <u>Section</u> <u>2.1(c)</u> on the date of such replacement designation. The Company and the Sponsor shall take all Necessary Action to cause such replacement Sponsor Director to become a member of the Board pursuant to this <u>Section</u> <u>2.1(h)</u>.

Section 2.2 <u>Restrictions on Other Agreements</u>. The Sponsor shall not, directly or indirectly, grant any proxy or enter into or agree to be bound by any voting trust, agreement or arrangement of any kind with respect to its Common Shares if and to the extent the terms thereof conflict with the provisions of this Agreement (whether or not such proxy, voting trust, agreement or agreements are with holders of Common Shares that are not parties to this Agreement or otherwise).

**ARTICLE III** 

**TERMINATION** 

Section 3.1 <u>Termination</u>. This Agreement shall irrevocably terminate (a) at such time as the Sponsor is no longer entitled to designate a nominee to the Board pursuant to <u>Section</u> <u>2.1(c)</u> hereof or (b) upon the delivery of a written notice by the Sponsor to the Company requesting that this Agreement irrevocably terminate. Upon a termination of this Agreement, there shall be no continuing liability or obligation on the part of the Sponsor or the Company; *provided*, *however*, that the termination of this Agreement shall not prevent any Party from seeking any remedies (at law or in equity) against any other Party for such Party's breach of any terms of this Agreement occurring prior to such termination.

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**ARTICLE IV** 

**MISCELLANEOUS** 

Section 4.1 <u>Notices</u>. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be personally delivered, sent by nationally recognized overnight courier, mailed by registered or certified mail or be sent by facsimile or electronic mail to such party at the address set forth below (or such other address as shall be specified by like notice). Notices will be deemed to have been duly given hereunder if (a) personally delivered, when received, (b) sent by nationally recognized overnight courier, one business day after deposit with the nationally recognized overnight courier, (c) mailed by registered or certified mail, five business days after the date on which it is so mailed, and (d) sent by facsimile or electronic mail, on the date sent so long as such communication is transmitted before 5:00 p.m. in the time zone of the receiving party on a business day, otherwise, on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company, to:

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, Texas 77024

Attention: General Counsel

E-mail: bobby.hunt@erok.com

With a copy to (which shall not constitute notice):

Vinson & Elkins L.L.P.

845 Texas Avenue, Suite 4700

Houston, Texas 77002

Attention: Michael S. Telle; Scott D. Rubinsky

E-mail: mtelle@velaw.com; srubinsky@velaw.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Sponsor, to:

With a copy to (which shall not constitute notice):

Section 4.2 <u>Severability</u>. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any Person or any circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

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Section 4.3 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall be considered one and the same agreement.

Section 4.4 <u>Entire Agreement; No Third Party Beneficiaries</u>. This Agreement (a) constitutes the entire agreement and supersedes all other prior agreements, both written and oral, between the Parties with respect to the subject matter hereof and (b) is not intended to confer upon any Person, other than the Parties, any rights or remedies hereunder.

Section 4.5 <u>Further Assurances</u>. Each Party shall execute, deliver, acknowledge and file such other documents and take such further actions as may be reasonably requested from time to time by the other Party to give effect to and carry out the transactions contemplated herein.

Section 4.6 <u>Governing Law; Equitable Remedies</u>. THIS AGREEMENT AND ANY CLAIMS AND CAUSES OF ACTION HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS (WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF). The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or was otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions and other equitable remedies to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any of the Selected Courts (as defined below), this being in addition to any other remedy to which they are entitled at law or in equity. Any requirements for the securing or posting of any bond with respect to such remedy are hereby waived by each of the Parties. Each Party further agrees that, in the event of any action for an injunction or other equitable remedy in respect of such breach or enforcement of specific performance, it will not assert the defense that a remedy at law would be adequate.

Section 4.7 <u>Consent to Jurisdiction</u>. With respect to any suit, action or proceeding ("***Proceeding***") arising out of or relating to this Agreement, each of the Parties hereby irrevocably (a) submits to the exclusive jurisdiction of the Business Court in the Eleventh Business Court Division of the State of Texas and the United States District Court for the Southern District of Texas and the appellate courts therefrom (the "***Selected Courts***") and waives any objection to venue being laid in the Selected Courts whether based on the grounds of forum non conveniens or otherwise and hereby agrees not to commence any such Proceeding other than before one of the Selected Courts; *provided*, *however*, that a Party may commence any Proceeding in a court other than a Selected Court solely for the purpose of enforcing an order or judgment issued by one of the Selected Courts; (b) consents, to the fullest extent permitted by law, to service of process in any Proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, or by recognized international express carrier or delivery service, to such Party's address referred to in <u>Section</u> <u>4.1</u> hereof; *provided*, *however*, that nothing herein shall affect the right of any Party to serve process in any other manner permitted by law; and (c) TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT,

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TORT OR OTHERWISE, AND AGREES THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT BETWEEN THE PARTIES IRREVOCABLY TO WAIVE THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT AND TO HAVE ALL MATTERS RELATING TO THIS AGREEMENT BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

Section 4.8 <u>Amendments; Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No provision of this Agreement may be amended or waived unless such amendment or waiver is in writing and signed (i) in the case of an amendment, by each of the Parties, and (ii) in the case of a waiver, by the Party against whom the waiver is to be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

Section 4.9 <u>Assignment</u>. Neither this Agreement nor any of the rights or obligations hereunder shall be assigned by either Party without the prior written consent of the other Party, except that each Sponsor may assign all or a portion of its rights hereunder to a Permitted Transferee in connection with a transfer of the Common Shares Beneficially Owned by such Sponsor to such Permitted Transferee in compliance with the terms of this Agreement and the Registration Rights Agreement among the Company, the Sponsor and the other parties thereto dated as of even date herewith, provided that such Permitted Transferee executes a joinder agreement and becomes bound by the provisions of this Agreement, the Company's Certificate of Formation, the LLCA and the Texas Business Organizations Code. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and assigns.

Section 4.10 <u>Information</u>. Upon the request of the Company, the Sponsor shall provide to the Company the number of Common Shares the Sponsor Beneficially Owns in the aggregate and the number of Common Shares Beneficially Owned by any Distributee.

Section 4.11 <u>Designation of a Sponsor Representative</u>. The Sponsor shall designate a sponsor representative (the "***Sponsor Representative***") for the purposes of acting in the name and stead of the Sponsor in making any elections or designations permitted or required by this Agreement and acting on the Sponsor's behalf under any other provision of this Agreement. As of the date hereof, the Sponsor Representative is , provided that the Sponsor may change its Sponsor Representative by giving notice to the Company pursuant to <u>Section</u> <u>4.1</u>.

[*Signature page follows.*]

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

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| |
|:---|
| **COMPANY** |
| **EAGLEROCK LAND, LLC** |
| By: |
| Name: |
|  Title: |

---

*Signature Page to Shareholder's Agreement* 

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| |
|:---|
| **SPONSOR** |
| By: |
| Name: |
| Title: |

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*Signature Page to Shareholder's Agreement*

## Exhibit 10.4

**Exhibit 10.4** 

**FORM OF VOTING AGREEMENT** 

THIS VOTING AGREEMENT (this "**Agreement**"), dated as of , 2026, is by and between the undersigned (the "**Shareholder**"), and EagleRock Land, LLC, a Texas limited liability company ("**EagleRock**").

**W I T N E S S E T H:** 

WHEREAS, the Shareholder legally and beneficially owns Class B Shares representing limited liability company interests in EagleRock ("**Class B Shares**") and units representing limited liability company interests in EagleRock Land Operating, LLC, a Texas limited liability company ("**OpCo**"), as set forth in EagleRock's and OpCo's books and records, respectively (such Class B Shares, together with any Class B Shares or Class A Shares representing limited liability company interests in EagleRock ("**Class A Shares**", and, together with the Class B Shares, the "**Common Shares**") held as of or acquired after the date of this Agreement, the "**Subject Shares**").

NOW, THEREFORE, in consideration of the promises and the representations, warranties and agreements contained herein and therein, the parties, intending to be legally bound hereby, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Representations and Warranties of each Shareholder</u>. The Shareholder hereby represents and warrants, as applicable, to EagleRock as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Due Organization; Authority</u>. If Shareholder is an entity, it is duly formed under the laws of its jurisdiction of formation and is validly existing and in good standing under the laws thereof, and the Shareholder has full organizational power and authority to execute and deliver this Agreement and to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Execution and Delivery; No Violation</u>. If the Shareholder is an entity, the execution and delivery of this Agreement and the performance of its obligations hereunder have been duly and validly approved by the governing authority of the Shareholder and no other organizational proceedings on the part of the Shareholder are necessary to approve this Agreement or for the Shareholder to perform its obligations hereunder. This Agreement has been duly and validly executed and delivered by the Shareholder and (assuming due authorization, execution and delivery by EagleRock) this Agreement constitutes a valid and binding obligation of the Shareholder, enforceable against the Shareholder in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or conveyance or other similar laws of general applicability relating to or affecting the rights and remedies of creditors or by general equitable principles. Neither the execution and delivery of this Agreement by the Shareholder, nor the consummation by the Shareholder of the transactions contemplated hereby, nor compliance by the Shareholder with any of the terms or provisions hereof, will, as applicable, (i) violate any provision of the governing documents of the Shareholder, as applicable, (ii) violate any statute, code, ordinance, rule, regulation, judgment, order, writ, decree or injunction applicable to the Shareholder, or any of its properties or assets, or (iii) violate, conflict with, result in a breach of any provision of, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under or result in the creation of any lien, claim, mortgage, encumbrance, pledge, deed of trust, security interest, equity or charge of any kind (each, a "**Lien**") upon any of the Subject Shares pursuant to any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Shareholder is a party, or by which it or any of its properties or assets may be bound or affected, except, in the case of clause (ii) and clause (iii), for such matters that would not, individually or in the aggregate, prevent or delay the ability of the Shareholder to perform its obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>The Subject Shares</u>. As of the date of this Agreement, the Shareholder is the legal and beneficial owner of and, together with any applicable controlled entity or entities of the Shareholder (as applicable, the "**Controlled Entities**"), has the sole right to vote and dispose of the Shareholder's Subject Shares. None of the Shareholder's Subject Shares are subject to any voting trust or other similar agreement, arrangement or restriction, except as contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Consents Required</u>. No consent of, or registration, declaration or filing with, any person or governmental entity is required to be obtained or made by or with respect to the Shareholder in connection with the execution, delivery and performance of this Agreement by the Shareholder, except for any applicable requirements and filings with the U.S. Securities and Exchange Commission, if any, under the Securities Exchange Act of 1934, as amended, and except where the failure to obtain such consents, approvals, authorizations or permits, or to make such filings or notifications, would not prevent or delay the performance by the Shareholder of the Shareholder's obligations under this Agreement in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Covenants of the Shareholder</u>. The Shareholder agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agreement to Vote Subject Shares</u>. During the Term (as defined below), at any meeting of the shareholders of EagleRock, however called, or at any postponement or adjournment thereof, at which directors are to be elected, the Shareholder shall, and shall cause each of its Controlled Entities and any other holder of record of its Subject Shares, as applicable, on any applicable record date to (i) appear at such meeting or otherwise cause all of its Subject Shares to be counted as present thereat for purposes of establishing a quorum and (ii) vote, in person or by proxy (or deliver a written consent in respect of), all of the Subject Shares beneficially owned by the Shareholder on such date in favor of the persons recommended for election to the board by the Board of Directors of EagleRock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Irrevocable Proxy</u>. In order to secure the obligations set forth herein, the Shareholder hereby irrevocably appoints each of the President and Chief Financial Officer and General Counsel of EagleRock, or any nominee thereof, with full power of substitution and resubstitution, as its true and lawful proxy and attorney-in-fact, only in the event that the Shareholder does not comply with its obligations in <u>Section 2(a)</u>, solely to the extent necessary to vote or execute written consents with respect to the Shareholder's Subject Shares beneficially owned at such time in accordance with <u>Section</u> <u>2(a)</u> and with respect to any proposed postponements or adjournments of any meeting of the shareholders of EagleRock at which any of the matters described in <u>Section</u> <u>2(a)</u> are to be considered; <u>provided</u>, that EagleRock shall provide the Shareholder with at least five (5) Business Days' prior written notice before exercising this proxy, specifying the manner in which it intends to vote. The Shareholder hereby affirms that this proxy is coupled with an interest and shall be irrevocable, except upon termination of this Agreement in accordance with its terms, and the Shareholder will take such further action or execute such other instruments as may be necessary to effectuate the intent of this proxy and hereby revokes any proxy previously granted by the Shareholder with respect to any of its Subject Shares. This proxy shall be revoked automatically upon the termination of this Agreement pursuant to <u>Section</u> <u>4</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restrictions on Other Voting Agreements</u>. The Shareholder agrees not to, and to cause any record holder of its Subject Shares, not to, in any such case directly or indirectly, during the Term grant any proxies, or deposit any of its Subject Shares into any voting trust or enter into any voting arrangement, whether by proxy, voting agreement or otherwise, with respect to its Subject Shares to the extent such proxies/deposits would violate <u>Section</u> <u>2(a)</u> hereof, other than pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Specified Transfers</u>. Each Shareholder effecting a Specified Transfer shall cause each transferee in such Specified Transfer to enter into a voting agreement with the Company substantially in the form of this Agreement. For purposes of this Agreement, "**Specified Transfer**" means an in-kind distribution or any other transfer of Subject Shares from the Shareholder, except for any Subject Shares transferred or distributed by Lea & Eddy Holdings, LLC to the TCW Entities (as described and defined in EagleRock's Registration Statement on Form S-1 filed by EagleRock in connection with its initial public offering) or any other sale of Subject Shares. Except as otherwise provided in this <u>Section</u> <u>2(d)</u>, this Agreement is not intended to limit or restrict the disposition or pledge of any Subject Shares in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Nominee Information</u>. EagleRock shall provide the Shareholder with (i) at least fifteen (15) Business Days' prior written notice of any meeting at which directors are to be elected, together with reasonably detailed information regarding each nominee recommended by the Board, including the nominee's qualifications, any known conflicts of interest, and responses to a customary director and officer questionnaire, and (ii) prompt written notice if any nominee is changed following the initial notice, and EagleRock shall respond in good faith to reasonable requests by the Shareholder for additional information regarding any nominee; <u>provided</u>, that EagleRock will not have any obligation to provide such information if it has filed a proxy statement on Schedule 14A of the EDGAR system of the Securities and Exchange Commission with respect to such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Assignment; No Third-Party Beneficiaries</u>. Except as provided herein, neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties without the prior written consent of the other parties hereto. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. Except as otherwise expressly provided herein, this Agreement (including the documents and instruments referred to herein) is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination</u>. This Agreement and the covenants and agreements set forth in this Agreement shall automatically terminate (without any further action of the parties) upon the earliest to occur of: (a) subject to compliance with Section 2(d), the date on which the Shareholder no longer beneficially owns any Subject Shares; (b) the mutual written consent of the parties hereto; and (c) the date on which none of the Shareholder's Agreements entered into by EagleRock in connection with its initial public offering remain in effect. In the event of termination of this Agreement pursuant to this <u>Section</u> <u>4</u>, this Agreement shall become void and of no effect with no liability on the part of any party; <u>provided</u>, <u>however</u>, that no such termination shall relieve any party from liability for any breach hereof prior to such termination. "**Term**" means the period from and including the date of this Agreement to and including the date of the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>General Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendments</u>. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notices</u>. Any notice or other communication required or permitted to be delivered to any party under this Agreement shall be in writing and shall be deemed properly delivered, given and received (i) on the date of delivery if delivered personally, (ii) on the date of confirmation of receipt (or the first Business Day following such receipt if the transmission is after 5:00 p.m. Central Time on such date or if the date is not a Business Day) of transmission by electronic mail, or (iii) on the date of confirmation of receipt (or the first Business Day following such receipt if the date is not a Business Day) if delivered by a nationally recognized overnight courier service. All notices hereunder shall be delivered to the address or electronic mail specified for such party below (or to such other address or electronic mail as such party shall have specified in a written notice given to the other parties hereto):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If to any Shareholder, to the address or electronic mail set forth for the Shareholder in EagleRock's books and records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If to EagleRock, to:

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, Texas 77024

Attention: General Counsel

E-mail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Rules of Construction</u>. When a reference is made in this Agreement to a Section, such reference shall be to a Section in this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Wherever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, including via facsimile or email in pdf form transmission, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties hereto and delivered to the other parties hereto, it being understood that all parties hereto need not sign the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Entire Agreement</u>. This Agreement (including the documents and the instruments referred to herein) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. Each party hereto agrees that, should any court or other competent authority hold any provision of this Agreement or part hereof to be invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such other term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Waiver</u>. No failure or delay by either party in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right hereunder. No agreement on the part of a party hereto to any such extension or waiver shall be valid unless set forth in an instrument in writing signed on behalf of such party. No waiver by any of the parties hereto of any default, misrepresentation or breach of representation, warranty, covenant or other agreement hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation or breach or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Further Assurances</u>. The Shareholder will, from time to time take, or cause to be taken, all actions, and do, or cause to be done, and assist and cooperate with the other party hereto in doing, all things reasonably necessary, proper or advisable to carry out the intent and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Capitalized Terms</u>. Capitalized terms used but not defined herein shall have the meanings set forth in the First Amended and Restated Company Agreement of EagleRock, dated as of , 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Enforcement</u>. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that money damages would not be a sufficient remedy of any such breach. It is accordingly agreed that, in addition to any other remedy to which they are entitled at law or in equity, the parties hereto shall be entitled to specific performance and injunctive or other equitable relief, without the necessity of proving the inadequacy of money damages and without the requirement of posting any bond. Notwithstanding the foregoing, EagleRock agrees that with respect to any damage claim that might be brought against the Shareholder under this Agreement, and without regard to whether such claim sounds in contract, tort or any other legal or equitable theory of relief, that damages are limited to actual damages and expressly waives any right to recover special damages, including, without limitation, lost profits as well as any punitive or exemplary damages. The parties hereto further agree that any action or proceeding relating to this Agreement or the transactions contemplated hereby shall be brought and determined in any federal or state court located in Houston, Texas and to submit to the jurisdiction of, and to venue in, such courts. In addition, each of the parties hereto (a) irrevocably submits to the exclusive jurisdiction and venue of such courts listed in this <u>Section</u> <u>6</u> in the event any dispute arises out of this Agreement or any of the transactions contemplated hereby, and (b) irrevocably waives the defense of an inconvenient forum and all other defenses to venue in any such court in any such action or proceeding. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE ANY OF SUCH WAIVER, (II) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (III) IT MAKES SUCH WAIVER VOLUNTARILY, AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS <u>SECTION</u> <u>6</u>.

[*Remainder of the page intentionally left blank*]

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IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date first written above.

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| | |
|:---|:---|
| **EAGLEROCK LAND, LLC** | **EAGLEROCK LAND, LLC** |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date first written above.

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| |
|:---|
| **SHAREHOLDER:** |
| By: |
|  Name: |

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[Signature Page to Voting Agreement]

## Exhibit 10.5

**Exhibit 10.5** 

**FORM OF CONTRIBUTION AND ASSIGNMENT AGREEMENT** 

**BY AND AMONG** 

**EAGLEROCK LAND, LLC,** 

**EAGLEROCK LAND OPERATING, LLC,** 

**LEA & EDDY HOLDINGS, LLC,** 

**DOUBLE EAGLE IV MIDCO, LLC,** 

**OWL EXPLORATION, LLC,** 

**SHALLOW VALLEY LAND, LLC,** 

**CACTUS ENERGY, INC.,** 

**ABYSS INC.,** 

**MARK T. DEHLINGER,** 

**AND** 

**RICHARD H. COATS** 

**April , 2026** 

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  **Article I** Mergers, Contributions and Assignments | **Article I** Mergers, Contributions and Assignments | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.01 | Initial Contributions and Assignments | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.02 | Multi-Survivor Mergers | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.03 | PubCo Cash Contributions | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.04 | HoldCo Contributions | 7 |
|  **Article II** Contributors' Representations and Warranties | **Article II** Contributors' Representations and Warranties | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.01 | Organization and Qualification | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.02 | Authority; Capitalization | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.03 | Title to Real Property | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.04 | Title to Personal Property | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.05 | No Brokers Fees | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.06 | No Pending or Threatened Action or Proceeding | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.07 | Non-Contravention | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.08 | Compliance with Laws; Permits | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.09 | Taxes | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10 | Material Contracts | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.11 | Indebtedness & Undisclosed Liabilities | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.12 | No Material Adverse Change | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.13 | Environmental | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.14 | Financial Statements | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.15 | Water Wells; SWDs | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.16 | Sufficiency of Assets | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.17 | Affiliate Relationships | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.18 | S-1 Information | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.19 | Private Placement | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.20 | No Implied Representations | 17 |
|  **Article III** Covenants | **Article III** Covenants | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01 | Interim Operating Covenants | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.02 | Regulatory Approvals | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.03 | Public Announcements | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.04 | Commercially Reasonable Efforts; Further Assurances | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.05 | Books and Records | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.06 | Tax Matters | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.07 | Access | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.08 | Damage Recovery | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.09 | Designated Committee | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.10 | Expenses | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.11 | Additional Flow Easements | 26 |

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| | | |
|:---|:---|:---|
|  **Article IV** Conditions Precedent to Closing; Closing | **Article IV** Conditions Precedent to Closing; Closing | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.01 | Mutual Conditions Precedent | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.02 | Closing Documents | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.03 | Closing | 29 |
|  **Article V** Termination | **Article V** Termination | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.01 | Termination | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.02 | Effect of Termination | 29 |
|  **Article VI** Survival; Damages Limitations | **Article VI** Survival; Damages Limitations | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.01 | Survival | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.02 | Damages Waiver | 31 |
|  **Article VII** Obligations to Indemnify | **Article VII** Obligations to Indemnify | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.01 | Contributors' Indemnification Obligations | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.02 | Claims Process | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.03 | Limitations on Indemnification | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.04 | Satisfaction of Claims | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.05 | Exclusive Remedy | 34 |
|  **Article VIII** Miscellaneous | **Article VIII** Miscellaneous | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.01 | Notices | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.02 | Interpretation | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.03 | Dispute Resolution | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.04 | Defined Terms | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.05 | Further Assurances | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.06 | Governing Law | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.07 | Entire Agreement | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.08 | Successors and Assigns | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.09 | Amendments | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.10 | Severability | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.11 | Counterparts | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.12 | Compliance with Laws and Regulations | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.13 | No Third Party Beneficiaries | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.14 | Time of Essence | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.15 | Waiver | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.16 | Lea & Eddy Representation | 37 |

---

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| | |
|:---|:---|
| <u>ANNEXES</u>: |  |
| Annex A | Definitions |
| <u>EXHIBITS</u>: |  |
| Exhibit A | Form of Section 1.01 Contribution Agreement |
| Exhibit B | Form of Merger Agreement |
| Exhibit C | Form of Section 1.03 Contribution Agreement |
| Exhibit D | Form of TCW Debt Assumption Agreement |
| Exhibit E | Form of Shallow Valley Entities Merger Agreement |

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| | |
|:---|:---|
| <u>SCHEDULES</u>: |  |
| Schedule I | Dehlinger Contributed Assets |
| Schedule II | Coats Contributed Assets |
| Schedule III | Abyss Contributed Assets |
| Schedule IV | Cactus Contributed Assets |
| Schedule V | Shallow Valley Contributed Assets |
| Schedule VI | OWL Contributed Assets |
| Schedule VII | Lea & Eddy Contributed Entities |
| Schedule VIII | Contributor Percentage Interests |
| Lea & Eddy Disclosure Schedules |  |
| Double Eagle Disclosure Schedules |  |
| Shallow Valley Disclosure Schedules |  |
| Schedule 3.01(a) | Assigned Employment Agreements |
| Schedule 3.10(c) | Reimbursable Expenditures |
| Schedule 3.11 | Additional Flow Easements |
| Schedule 7.03(a) | Limitations on Indemnification |
| Schedule 8.16 | Lea & Eddy Representation |

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iii

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**<u>FORM OF CONTRIBUTION AND ASSIGNMENT AGREEMENT</u>**

**THIS CONTRIBUTION AND ASSIGNMENT AGREEMENT** (this "**<u>Agreement</u>**"), dated as of April , 2026, is entered into by and among EagleRock Land, LLC, a Texas limited liability company ("**<u>PubCo</u>**"), EagleRock Land Operating, LLC, a Texas limited liability company ("**<u>OpCo</u>**"), Lea & Eddy Holdings, LLC, a Texas limited liability company ("**<u>Lea</u> <u>& Eddy</u>**"), Double Eagle IV Midco, LLC, a Delaware limited liability company ("**<u>Double Eagle</u>**"), OWL Exploration, L.L.C., a Texas limited liability company ("**<u>OWL</u>**"), Shallow Valley Land, LLC, a Texas limited liability company ("**<u>Shallow Valley</u>**"), Cactus Energy, Inc., a Texas corporation ("**<u>Cactus</u>**"), Abyss Inc., a Texas corporation ("**<u>Abyss</u>**"), Mark T. Dehlinger, an individual residing in Midland County, Texas ("**<u>Dehlinger</u>**"), and Richard H. Coats, an individual residing in Midland County, Texas ("**<u>Coats</u>**" and, collectively with OWL, Shallow Valley, Cactus, Abyss and Dehlinger, the "**<u>Shallow Valley Owners</u>**", and, the Shallow Valley Owners collectively with Lea & Eddy and Double Eagle, the "**<u>Contributors</u>**" and, the Contributors collectively with PubCo and OpCo, the "**<u>Parties</u>**" and each, individually, a "**<u>Party</u>**").

**<u>RECITALS</u>**

**WHEREAS**, the Parties desire to combine their respective businesses into OpCo and to pursue an initial public offering of the Class A shares representing limited liability company interests ("**<u>Class</u> <u>A Shares</u>**") of PubCo (the "**<u>IPO</u>**");

**WHEREAS**, the Parties desire to enter into this Agreement in order to govern the transactions to effect such combination and such IPO;

**WHEREAS**, as part of such combination, the Parties desire to complete the steps described in the following recitals in substantially the order described;

**WHEREAS**, at least one day prior to the Closing Date, Dehlinger shall form MD EagleRock HoldCo, LLC, a Texas limited liability company ("**<u>MD HoldCo</u>**") and, in exchange for the issuance to Dehlinger of all of the equity interests in MD HoldCo, Dehlinger shall contribute all of his right, title and interest in certain assets set forth on <u>Schedule I</u> (the "**<u>Dehlinger Contributed Assets</u>**") to MD HoldCo (the "**<u>Dehlinger MD HoldCo Contribution</u>**"), which will be effected pursuant to the terms of a contribution agreement substantially in the form attached as <u>Exhibit</u> <u>A</u> (the "**<u>Form of Section</u> <u>1.01 Contribution Agreement</u>**");

**WHEREAS**, at least one day prior to the date of the OWL Merger Agreement (as defined below), Coats shall form OWL EagleRock HoldCo, LLC, a Texas limited liability company ("**<u>OWL HoldCo</u>**") and, in exchange for the issuance to Coats of all of the equity interests in OWL HoldCo, Coats shall contribute all of his right, title and interest in certain assets set forth on <u>Schedule II</u> (the "**<u>Coats Contributed Assets</u>**") to OWL HoldCo (the "**<u>Coats OWL HoldCo Contribution</u>**"), which will be effected pursuant to the terms of the Form of Section 1.01 Contribution Agreement;

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**WHEREAS**, (a) at least one day prior to the date of the Shallow Valley Merger Agreement (as defined below), Shallow Valley shall form Shallow Valley EagleRock HoldCo, LLC, a Texas limited liability company ("**<u>Shallow Valley HoldCo</u>**"), as a wholly owned subsidiary, (b) at least one day prior to the date of the Cactus Merger Agreement (as defined below), Cactus shall form Cactus EagleRock HoldCo, LLC, a Texas limited liability company ("**<u>Cactus HoldCo</u>**") as a wholly owned subsidiary, and (c) at least one day prior to the date of the Abyss Merger Agreement (as defined below), Abyss shall form Abyss EagleRock HoldCo, LLC, a Texas limited liability company ("**<u>Abyss HoldCo</u>**"), as a wholly owned subsidiary;

**WHEREAS**, at least one day prior to the Closing Date, PubCo shall form each of EagleRock Merger Sub 1, LLC, a Texas limited liability company ("**<u>Merger Sub 1</u>**"), EagleRock Merger Sub 2, LLC, a Texas limited liability company ("**<u>Merger Sub 2</u>**"), and EagleRock Merger Sub 3, LLC, a Texas limited liability company ("**<u>Merger Sub 3</u>**" and, together with Merger Sub 1 and Merger Sub 2, the "**<u>Merger Subs</u>**");

**WHEREAS**, one Business Day prior to the Closing Date, Abyss shall undergo a multi-survivor merger with Abyss HoldCo, pursuant to which both entities shall survive, with Abyss HoldCo surviving as a wholly owned subsidiary of Abyss (the "**<u>Abyss Merger</u>**") and holding all of the assets set forth on <u>Schedule III</u> that Abyss held immediately prior to the Abyss Merger, other than the Retained Assets (as defined in the Abyss Merger Agreement) (the "**<u>Abyss Contributed Assets</u>**"), all pursuant to an Agreement and Plan of Merger to be entered into by and between Abyss and Abyss HoldCo one Business Day prior to the Closing (the "**<u>Abyss Merger Agreement</u>**");

**WHEREAS**, one Business Day prior to the Closing Date, Cactus shall undergo a multi-survivor merger with Cactus HoldCo, pursuant to which both entities shall survive, with Cactus HoldCo surviving as a wholly owned subsidiary of Cactus (the "**<u>Cactus Merger</u>**") and holding all of the assets set forth on <u>Schedule IV</u> that Cactus held immediately prior to the Cactus Merger, other than the Retained Assets (as defined in the Cactus Merger Agreement) (the "**<u>Cactus Contributed Assets</u>**"), all pursuant to an Agreement and Plan of Merger to be entered into by and between Cactus and Cactus HoldCo one Business Day prior to the Closing (the "**<u>Cactus Merger Agreement</u>**");

**WHEREAS**, one Business Day prior to the Closing Date, Shallow Valley shall undergo a multi-survivor merger with Shallow Valley HoldCo, pursuant to which both entities shall survive, with Shallow Valley HoldCo surviving as a wholly owned subsidiary of Shallow Valley (the "**<u>Shallow Valley Merger</u>**") and holding all of the assets set forth on <u>Schedule V</u> that Shallow Valley held immediately prior to the Shallow Valley Merger, other than the Retained Assets (as defined in the Shallow Valley Merger Agreement) (the "**<u>Shallow Valley Contributed Assets</u>**"), all pursuant to an Agreement and Plan of Merger to be entered into by and between Shallow Valley and Shallow Valley HoldCo one Business Day prior to the Closing (the "**<u>Shallow Valley Merger Agreement</u>**");

**WHEREAS**, one Business Day prior to the Closing Date, OWL shall undergo a multi-survivor merger with OWL HoldCo, pursuant to which both entities shall survive, with OWL HoldCo surviving as a subsidiary of OWL and Coats (the "**<u>OWL Merger</u>**") and holding all of the assets set forth on <u>Schedule VI</u> (Schedules I – VI, inclusive, are sometimes collectively referred to as the "**<u>Contributed Assets Schedules</u>**" and singularly as a "**<u>Contributed Assets Schedule</u>**") that OWL and OWL HoldCo held immediately prior to the OWL Merger, other than the Retained Assets (as defined in the OWL Merger Agreement) (the "**<u>OWL Contributed Assets</u>**"), all

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pursuant to an Agreement and Plan of Merger to be entered into by and between OWL, Coats and OWL HoldCo one Business Day prior to the Closing (the "**<u>OWL Merger Agreement</u>**," and together with the Abyss Merger Agreement, the Cactus Merger Agreement, and the Shallow Valley Merger Agreement, the "**<u>Merger Agreements</u>**", all of which shall be in substantially the form attached as <u>Exhibit</u> <u>B</u>);

**WHEREAS**, at Closing: (a) Lea & Eddy shall contribute immediately available cash to PubCo (the "**<u>Lea</u> <u>& Eddy PubCo Cash Contribution</u>**") in exchange for the Lea & Eddy PubCo Shares Amount (the "**<u>Lea</u> <u>& Eddy PubCo Shares</u>**"); (b) Abyss shall contribute immediately available cash to PubCo (the "**<u>Abyss PubCo Cash Contribution</u>**") in exchange for the Abyss PubCo Shares Amount (the "**<u>Abyss PubCo Shares</u>**"); (c) Cactus shall contribute immediately available cash to PubCo (the "**<u>Cactus</u>**<u> </u>**<u>PubCo Cash Contribution</u>**") in exchange for the Cactus PubCo Shares Amount (the "**<u>Cactus</u>**<u> </u>**<u>PubCo Shares</u>**"); (d) Shallow Valley shall contribute immediately available cash to PubCo (the "**<u>Shallow Valley</u>**<u> </u>**<u>PubCo Cash Contribution</u>**") in exchange for the Shallow Valley PubCo Shares Amount (the "**<u>Shallow Valley</u> <u>PubCo Shares</u>**"); (e) OWL shall contribute immediately available cash to PubCo (the "**<u>OWL</u> <u>PubCo Cash Contribution</u>**") in exchange for the OWL PubCo Shares Amount (the "**<u>OWL</u>**<u> </u>**<u>PubCo Shares</u>**"); (f) Coats shall contribute immediately available cash to PubCo (the "**<u>Coats</u> <u>PubCo Cash Contribution</u>**") in exchange for the Coats PubCo Shares Amount (the "**<u>Coats</u>**<u> </u>**<u>PubCo Shares</u>**"); (g) Dehlinger shall contribute immediately available cash to PubCo (the "**<u>Dehlinger</u> <u>PubCo Cash Contribution</u>**") in exchange for the Dehlinger PubCo Shares Amount (the "**<u>Dehlinger PubCo Shares</u>**"); and (h) Double Eagle shall contribute immediately available cash to PubCo (the "**<u>Double Eagle PubCo Cash Contribution</u>**" and, collectively with the Lea & Eddy PubCo Cash Contribution, the Abyss PubCo Cash Contribution, the Cactus PubCo Cash Contribution, the Shallow Valley PubCo Cash Contribution, the OWL PubCo Cash Contribution, the Coats PubCo Cash Contribution, and the Dehlinger PubCo Cash Contribution, the "**<u>PubCo Cash Contributions</u>**") in exchange for the Double Eagle PubCo Shares Amount (the "**<u>Double Eagle</u>**<u> </u>**<u>PubCo Shares</u>**" and, collectively with the Lea & Eddy PubCo Shares, the Abyss PubCo Shares, the Cactus PubCo Shares, the Shallow Valley PubCo Shares, the OWL PubCo Shares, the Coats PubCo Shares and the Dehlinger PubCo Shares, the "**<u>PubCo Shares</u>**"), which, in each case, will be effected pursuant to the terms of a contribution agreement substantially in the form attached as <u>Exhibit</u> <u>C</u> (the "**<u>Form of Section</u> <u>1.03 Contribution Agreement</u>**");

**WHEREAS**, simultaneously at Closing: (a) Cactus shall contribute all of its equity interests in Cactus HoldCo to OpCo (the "**<u>Cactus HoldCo Contribution</u>**") in exchange for the Cactus OpCo Unit Amount (the "**<u>Cactus OpCo Units</u>**"); (b) Shallow Valley shall contribute all of its equity interests in Shallow Valley HoldCo to OpCo (the "**<u>Shallow Valley HoldCo Contribution</u>**") in exchange for the Shallow Valley OpCo Unit Amount (the "**<u>Shallow Valley OpCo Units</u>**"); and (c) Coats shall contribute all of his equity interests in OWL HoldCo to OpCo (the "**<u>Coats HoldCo Contribution</u>**") in exchange for the Coats OpCo Unit Amount (the "**<u>Coats OpCo Units</u>**");

**WHEREAS**, at Closing, OWL shall contribute all of its equity interests in OWL HoldCo to OpCo (the "**<u>OWL HoldCo Contribution</u>**") in exchange for the OWL OpCo Unit Amount (the "**<u>OWL OpCo Units</u>**");

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**WHEREAS**, simultaneously at Closing, (a) Abyss shall contribute all of its equity interests in Abyss HoldCo to OpCo (the "**<u>Abyss HoldCo Contribution</u>**") in exchange for the Abyss OpCo Unit Amount (the "**<u>Abyss OpCo Units</u>**"); and (b) Dehlinger shall contribute all of his equity interests in MD HoldCo to OpCo (the "**<u>MD HoldCo Contribution</u>**" and, collectively with the Cactus HoldCo Contribution, the Shallow Valley HoldCo Contribution, the Coats HoldCo Contribution, the OWL HoldCo Contribution and the Abyss HoldCo Contribution, the "**<u>HoldCo Contributions</u>**") in exchange for the Dehlinger OpCo Unit Amount (the "**<u>Dehlinger OpCo Units</u>**");

**WHEREAS**, at Closing, Lea & Eddy shall contribute all of its equity interests in its subsidiaries (which for the avoidance of doubt, does not include Hydrosource Logistics, which will no longer be a subsidiary of Lea & Eddy at this point in time), including those set forth on <u>Schedule VII</u> (the "**<u>Lea</u> <u>& Eddy Contributed Entities</u>**"), to OpCo (the "**<u>Lea</u> <u>& Eddy Subsidiaries Contribution</u>**") in exchange for (a) the Lea & Eddy OpCo Unit Amount (the "**<u>Lea</u> <u>& Eddy OpCo Units</u>**"); and (b) the assumption by OpCo of the TCW Debt and of the liabilities and obligations under the TCW Debt (such assignment and assumption of such debt, the "**<u>TCW Debt Assumption</u>**"), which will be effected pursuant to the terms of an assignment and assumption agreement substantially in the form attached as <u>Exhibit</u> <u>D</u> (the "**<u>TCW Debt Assumption Agreement</u>**");

**WHEREAS**, at Closing, Double Eagle shall contribute all of its equity interests in DE IV Flow, LLC, a Delaware limited liability company ("**<u>Flow</u>**"), to OpCo (the "**<u>Flow Contribution</u>**") in exchange for the Double Eagle OpCo Unit Amount (the "**<u>Double Eagle OpCo Units</u>**" and, collectively with the Cactus OpCo Units, the Shallow Valley OpCo Units, the Coats OpCo Units, the OWL OpCo Units, the Abyss OpCo Units, the Dehlinger OpCo Units and the Lea & Eddy OpCo Units, the "**<u>Contributor OpCo Units</u>**");

**WHEREAS**, pursuant to a Warrant Exercise Agreement (the "**<u>Warrant Exercise Agreement</u>**") to be entered into contemporaneously herewith among the EagleRock Entities, the TCW Entities and Lea & Eddy, certain funds and accounts managed by TCW Asset Management Company LLC ("**<u>TCW</u>**" and such funds and accounts, the "**<u>TCW Entities</u>**") that own warrants to purchase equity interests in Lea & Eddy (such warrants, the "**<u>Lea</u> <u>& Eddy Warrants</u>**") shall: (a) forfeit and cancel certain of such Lea & Eddy Warrants (the "**<u>TCW Forfeited Warrants</u>**"); (b) exercise certain of such Lea & Eddy Warrants not so forfeited (the "**<u>TCW Remaining Warrants</u>**") in exchange for equity interests of Lea & Eddy; and (c) cause Lea & Eddy to distribute to the TCW Entities the number of Lea & Eddy OpCo Units and Class B shares representing limited liability company interests ("**<u>Class</u> <u>B Shares</u>**") of PubCo provided for in the Warrant Exercise Agreement in complete redemption of their equity interests in Lea & Eddy (the "**<u>TCW Warrant Transactions</u>**");

**WHEREAS**, pursuant to separate agreements and plans of merger (the "**<u>TCW Blocker Merger Agreements</u>**") to be entered into at the Closing among PubCo, the Merger Subs and TCW Blocker 1, LLC, a Texas limited liability company ("**<u>TCW Blocker 1</u>**"), TCW Blocker 2, LLC, a Texas limited liability company ("**<u>TCW Blocker 2</u>**"), and TCW Blocker 3, LLC, a Texas limited liability company ("**<u>TCW Blocker 3</u>**" and, collectively with TCW Blocker 1 and TCW Blocker 2, the "**<u>TCW Blockers</u>**"), Merger Sub 1, Merger Sub 2 and Merger Sub 3 shall merge with and into TCW Blocker 1, TCW Blocker 2 and TCW Blocker 3, respectively, with each of the TCW

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Blockers surviving such mergers as wholly owned subsidiaries of PubCo (the "**<u>TCW Blocker Mergers</u>**"), and in connection therewith, (a) the holders of the TCW Blockers shall exchange their interests in the TCW Blockers for Class A Shares and (b) PubCo shall cancel the Class B Shares previously held by the TCW Blockers (the "**<u>TCW Blocker Class</u> <u>B Cancellation</u>**");

**WHEREAS**, at Closing, various public investors shall contribute immediately available cash to PubCo (the "**<u>IPO Cash Contribution</u>**") in exchange for a number of Class A Shares pursuant to the terms of an underwriting agreement (such agreement, the "**<u>Underwriting Agreement</u>**");

**WHEREAS**, at Closing, PubCo shall contribute to OpCo the net cash proceeds resulting from the IPO Cash Contribution (the "**<u>PubCo OpCo Cash Contribution</u>**") in exchange for a number of OpCo Units equal to the number of Class A Shares issued to the public in the IPO (the "**<u>OpCo IPO Cash Contribution Units</u>**");

**WHEREAS**, OpCo shall (a) use a portion of the PubCo OpCo Cash Contribution to repay the obligations under the TCW Debt on or about 30 days after the date of the IPO (the "**<u>TCW Debt Repayment</u>**"); (b) retain a portion of the PubCo OpCo Cash Contribution for general corporate purposes; (c) use a portion of the PubCo OpCo Cash Contribution to pay the transaction expenses incurred in connection with the IPO (the "**<u>Transaction Expenses Payment</u>**"); (d) reimburse the applicable Contributors pursuant to <u>Section</u> <u>3.10(b)</u> and <u>Section</u> <u>3.10(c)</u>; and (e) make any Cash Distribution; and

**WHEREAS**, following the Closing, each of Abyss HoldCo, Cactus HoldCo, OWL HoldCo and MD HoldCo shall undergo a merger with Shallow Valley HoldCo, with Shallow Valley HoldCo as the surviving entity (the "**<u>Shallow Valley Entities Merger</u>**"), all pursuant to an Agreement and Plan of Merger, to be entered into by and among Abyss HoldCo, Cactus HoldCo, OWL HoldCo, MD HoldCo and Shallow Valley HoldCo and in substantially the form attached as <u>Exhibit</u> <u>E</u> (the "**<u>Shallow Valley Entities Merger Agreement</u>**").

**NOW THEREFORE**, in consideration of the mutual agreements, covenants and conditions set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

**<u>AGREEMENTS</u>**

**ARTICLE I** 

MERGERS, CONTRIBUTIONS AND ASSIGNMENTS

Section 1.01 **<u>Initial Contributions and Assignments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions of this Agreement, at least one day prior to the Closing Date, Dehlinger shall effect the Dehlinger MD HoldCo Contribution pursuant to the Form of Section 1.01 Contribution Agreement, duly executed by (i) Dehlinger on behalf of himself and (ii) Dehlinger on behalf of MD HoldCo.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the terms and subject to the conditions of this Agreement, at least one day prior to the Closing Date, Coats shall effect the Coats OWL HoldCo Contribution pursuant to the Form of Section 1.01 Contribution Agreement, duly executed by (i) Coats on behalf of himself and (ii) Coats on behalf of OWL HoldCo.

Section 1.02 **<u>Multi-Survivor Mergers</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions of this Agreement, on the Business Day immediately prior to the Closing Date, Abyss shall, and shall cause Abyss HoldCo to, enter into and consummate the Abyss Merger on the terms and conditions set forth in the Abyss Merger Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the terms and subject to the conditions of this Agreement, on the Business Day immediately prior to the Closing Date, Cactus shall, and shall cause Cactus HoldCo to, enter into and consummate the Cactus Merger on the terms and conditions set forth in the Cactus Merger Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the terms and subject to the conditions of this Agreement, on the Business Day immediately prior to the Closing Date, Shallow Valley shall, and shall cause Shallow Valley HoldCo to, enter into and consummate the Shallow Valley Merger on the terms and conditions set forth in the Shallow Valley Merger Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the terms and subject to the conditions of this Agreement, on the Business Day immediately prior to the Closing Date, OWL shall (together with Coats) cause OWL HoldCo to, enter into and consummate the OWL Merger on the terms and conditions set forth in the OWL Merger Agreement.

Section 1.03 **<u>PubCo Cash Contributions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, Lea & Eddy shall make the Lea & Eddy PubCo Cash Contribution pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to Lea & Eddy the Lea & Eddy PubCo Shares in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, Abyss shall make the Abyss PubCo Cash Contribution to PubCo pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to Abyss the Abyss PubCo Shares in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, Cactus shall make the Cactus PubCo Cash Contribution to PubCo pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to Cactus the Cactus PubCo Shares in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, Shallow Valley shall make the Shallow Valley PubCo Cash Contribution to PubCo pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to Shallow Valley the Shallow Valley PubCo Shares in exchange therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, OWL shall make the OWL PubCo Cash Contribution to PubCo pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to OWL the OWL PubCo Shares in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, Coats shall make the Coats PubCo Cash Contribution to PubCo pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to Coats the Coats PubCo Shares in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, Dehlinger shall make the Dehlinger PubCo Cash Contribution to PubCo pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to Dehlinger the Dehlinger PubCo Shares in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing, Double Eagle shall make the Double Eagle PubCo Cash Contribution to PubCo pursuant to the Form of Section 1.03 Contribution Agreement, and PubCo shall issue to Double Eagle the Double Eagle PubCo Shares in exchange therefor.

Section 1.04 **<u>HoldCo Contributions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing and immediately following the PubCo Cash Contributions, (i) Cactus shall make the Cactus HoldCo Contribution to OpCo in exchange for the issuance of the Cactus OpCo Units to Cactus; (ii) Shallow Valley shall make the Shallow Valley HoldCo Contribution to OpCo in exchange for the issuance of the Shallow Valley OpCo Units to Shallow Valley; and (iii) Coats shall make the Coats HoldCo Contribution to OpCo in exchange for the issuance of the Coats OpCo Units to Coats.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the terms and subject to the conditions of this Agreement, at the Closing and immediately following the transactions contemplated in <u>Section</u> <u>1.04(a)</u>, OWL shall make the OWL HoldCo Contribution to OpCo in exchange for the issuance of the OWL OpCo Units to OWL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing and immediately following the transactions contemplated in <u>Section</u> <u>1.04(b)</u>, (i) Abyss shall make the Abyss HoldCo Contribution to OpCo in exchange for the issuance of the Abyss OpCo Units to Abyss; and (ii) Dehlinger shall make the MD HoldCo Contribution to OpCo in exchange for the issuance of the Dehlinger OpCo Units to Dehlinger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the terms and subject to the conditions of this Agreement, simultaneously at the Closing and immediately following the transactions contemplated in <u>Section</u> <u>1.04(c)</u>, Lea & Eddy shall make the Lea & Eddy Subsidiaries Contribution to OpCo in exchange for (i) the issuance of the Lea & Eddy OpCo Units to Lea & Eddy and (ii) the TCW Debt Assumption.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On the terms and subject to the conditions of this Agreement, at the Closing and immediately following the transactions contemplated in <u>Section</u> <u>1.04(d)</u>, Double Eagle shall make the Flow Contribution to OpCo in exchange for the issuance of the Double Eagle OpCo Units to Double Eagle.

Section 1.05 **<u>TCW Warrant Transactions</u>**. At Closing and immediately after the transactions contemplated in <u>Section</u> <u>1.04(e)</u>, Lea & Eddy shall, and shall cause TCW and the TCW Entities to, and the EagleRock Entities shall, consummate the TCW Warrant Transactions pursuant to the Warrant Exercise Agreement. However, for convenience, in lieu of completing the transactions contemplated by <u>clauses (b)</u> and <u>(c)</u> of the definition of TCW Warrant Transactions, OpCo and PubCo, as applicable, will directly issue to the TCW Entities the number of Lea & Eddy OpCo Units and Class B Shares, respectively, provided for in the Warrant Exercise Agreement.

Section 1.06 **<u>TCW Blocker Mergers</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Closing, PubCo shall, and shall cause the Merger Subs to, enter into and consummate the TCW Blocker Mergers on the terms and conditions set forth in the TCW Blocker Merger Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the consummation of the TCW Blocker Mergers, PubCo shall consummate the TCW Blocker Class B Cancellation.

Section 1.07 **<u>Post-IPO Cash Contribution</u>**. Following the IPO Cash Contribution, (a) PubCo shall make the PubCo OpCo Cash Contribution to OpCo in exchange for the OpCo IPO Cash Contribution Units; and (b) OpCo shall (i) effect the TCW Debt Repayment; (ii) retain a portion of the PubCo OpCo Cash Contribution for general corporate purposes; (iii) effect the Transaction Expenses Payment; (iv) reimburse the applicable Contributors pursuant to <u>Section</u> <u>3.10(b)</u> and <u>Section</u> <u>3.10(c)</u>; and (v) make any applicable Cash Distribution.

Section 1.08 **<u>Shallow Valley Entities Merger</u>**. On the terms and subject to the conditions of this Agreement, promptly following the IPO Cash Contribution, OpCo shall cause Abyss HoldCo, Cactus HoldCo, OWL HoldCo, MD HoldCo and Shallow Valley HoldCo to enter into and consummate the Shallow Valley Entities Merger on the terms and conditions set forth in the Shallow Valley Entities Merger Agreement.

**ARTICLE II** 

CONTRIBUTORS' REPRESENTATIONS AND WARRANTIES

Each Contributor, severally and not jointly, represents and warrants to each other Party as to itself and its Contributed Assets as follows (with each such representation and warranty being made as of the date of this Agreement and as of the Closing Date):

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Section 2.01 **<u>Organization and Qualification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If such Contributor is a Person other than an individual, such Contributor is (i) a limited liability company or corporation, as applicable, duly formed, validly existing and in good standing under the laws of the State of its formation and (ii) duly qualified and licensed to do business in each state or other jurisdiction in which the assets owned, leased or operated by it, the nature of the business conducted by it or in which the actions required to be performed by it hereunder or under any other Transaction Document, makes such qualification or licensing necessary, except in the case of this clause (ii) where the failure to be so qualified or licensed would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on such Contributor's ability to perform its obligations under, or to consummate the transactions contemplated by, this Agreement or any other Transaction Document, in accordance with the terms hereof and thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If such Contributor is an individual, he is duly qualified and licensed to do business in each state or other jurisdiction in which the assets owned, leased or operated by him, the nature of the business conducted by him or in which the actions required to be performed by him hereunder or under any other Transaction Document, makes such qualification or licensing necessary, except in the case where the failure to be so qualified or licensed would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on such Contributor's ability to perform his obligations under, or to consummate the transactions contemplated by, this Agreement or any other Transaction Document, in accordance with the terms hereof and thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Contributed Entity is (i) a limited liability company or a corporation, as applicable, duly formed, validly existing and in good standing under the laws of the State of its formation and (ii) duly qualified and licensed to do business in each state or other jurisdiction in which the assets owned, leased or operated by it, the nature of the business conducted by it or in which the actions required to be performed by it hereunder or under any Transaction Document, makes such qualification or licensing necessary, except in the case of this clause (ii) where the failure to be so qualified or licensed would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on (x) such Contributed Entity's ability to carry on its business as currently conducted or as proposed to be conducted as described in the PubCo S-1 or (y) the ability of the applicable Contributor to contribute such Contributed Entity in accordance with its obligations under this Agreement.

Section 2.02 **<u>Authority</u><u>; Capitalization</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If such Contributor is a Person other than an individual, such Contributor has, as applicable, the limited liability company or corporate power and authority to execute and deliver this Agreement and each other Transaction Document to which it is or will be a party, and to carry out its obligations under this Agreement and each such other Transaction Document to which it is or will be a party. Further (a) the execution, delivery and performance of this Agreement and each other Transaction Document to which it is or will be a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized and approved by all requisite limited liability company or corporate action of such Contributor, (b) except as have been or will be obtained prior to the Closing, no other limited liability company or corporate, as applicable, act or proceeding on the part of such Contributor or its shareholders, stockholders, members or other equity holders is necessary to authorize the execution, delivery or performance of this Agreement or any such other Transaction Document or the transactions contemplated

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hereby or thereby and (c) assuming the due authorization and valid execution and delivery by the other applicable parties hereto and thereto, this Agreement and each such other Transaction Document to which such Contributor is or will be a party is or will be a legal, valid, binding and enforceable obligation of such Contributor, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws now or hereinafter in effect relating to creditors' rights generally, general equity principles (whether considered in a Proceeding in equity or at Law) and consideration of public policy (the "***Enforceability Exceptions***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If such Contributor is an individual, such Contributor is a natural person and has the requisite legal capacity to validly execute and deliver this Agreement and the other Transaction Documents to which such Contributor is or will be a party and to perform such Contributor's obligations in accordance with the terms hereof and thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Immediately following the consummation of the HoldCo Contributions in accordance with and pursuant to this Agreement, PubCo will, directly or indirectly, own, hold and control all of the shares of capital stock, membership interests or other equity interests, as applicable ("**<u>Equity Interests</u>**"), of such Contributor's Contributed Entities free from any Encumbrances, and none of such Contributed Entities has outstanding any securities, rights or claims that are convertible into, exercisable for or otherwise represent a contingent or other right to own, hold or receive, any Equity Interests in any such Contributed Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The (i) authorized and (ii) outstanding Equity Interests of each Contributed Entity of such Contributor are set forth on <u>Schedule 2.02(d)</u> of the Disclosure Schedules. None of the outstanding Equity Interests of the Contributed Entities of such Contributor are certificated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The outstanding Equity Interests of each Contributed Entity of such Contributor, collectively, consist solely of the Contributed Interests. All outstanding Equity Interests of each Contributed Entity of such Contributor are duly authorized and validly issued, and were issued in compliance with applicable Laws. Except for the Contributed Interests of such Contributor's Contributed Entities, there are no outstanding (i) Equity Interests in any such Contributed Entities, (ii) Equity Interests of any Person convertible into or exchangeable or exercisable for Equity Interests in such Contributed Entities or (iii) subscriptions, options, warrants, calls, rights (including preemptive rights), equity appreciation, phantom equity, profit participation, redemption rights, commitments, understandings or agreements to which any of such Contributed Entities is a party or by which any such Contributed Entity is bound (or bound to grant, extend or enter into any of the foregoing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Equity Interests of any Contributed Entity of such Contributor have been reserved for issuance or issued in violation of, and none are subject to, any preemptive rights, purchase or call options, drag along rights, tag-along rights, subscription rights, rights of first refusal or other similar rights. At the Closing, there will be no member agreement, stockholders agreement, irrevocable proxies, voting trust or other agreement or understanding relating to the voting of the Contributed Interests. There are, and there will be as of the Closing, no outstanding stock appreciation, phantom stock, profit participation or similar rights which are obligations of any Contributed Entity. There are no bonds, debentures, notes or other indebtedness of any such Contributed Entity having the right to vote or consent (or, convertible into, or exchangeable for, Equity Interests having the right to vote or consent) on any matters on which holders of any Contributed Interests may vote.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each Contributed Entity of such Contributor is wholly owned by Contributor or its Contributed Entities, in each case, free and clear of all Encumbrances, except for Encumbrances arising under federal and state securities Laws or the organizational documents of Contributor or one of its Contributed Entities. None of such Contributed Entities owns any Equity Interests or has any investments in, any Person that is not a Contributed Entity of such Contributor. There are no obligations, contingent or otherwise, of any Contributed Entity to provide funds to, or make any investment in (in the form of a loan, capital contribution or otherwise), or provide any guarantee with respect to the obligations of, any Person.

Section 2.03 **<u>Title to Real Property</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to such Contributor's Contributed Assets constituting real property, such Contributor or such Contributed Entity, as applicable, has (i) good, valid and marketable title in fee simple to such owned real property (other than Rights of Way) and (ii) a valid, binding and enforceable leasehold interest or other valid and enforceable use rights in such leased properties (other than Rights of Way), except for Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reference is made to those Contracts pursuant to which any of such Contributor's Contributed Assets that constitute leasehold or similar interests in real property are leased from the applicable fee simple owner or owners of such real property (each such Contract, and expressly including any and all modifications, amendments and supplements thereto and any assignments thereof, and waivers of any right thereunder, a "**<u>Real Property Lease</u>**" and collectively, "**<u>Real Property Leases</u>**"). With respect to each Real Property Lease: (i) such Real Property Lease is in full force and effect and is valid, binding and enforceable against such Contributor or its applicable Contributed Entity, and to such Contributor's knowledge, the other party to such Real Property Lease, in accordance with its terms, except as may be limited by the Enforceability Exceptions; (ii) such Contributor or such Contributor's applicable Contributed Entity is not in breach or default, and no event has occurred which with notice or lapse of time would constitute a breach or default by such Contributor or Contributed Entity, or permit termination, modification, or acceleration under such Real Property Lease on account thereof; (iii) to such Contributor's knowledge, no other party to any of such Real Property Leases is in breach or default, and no event has occurred which with notice or lapse of time would constitute a breach or default by such other party, or permit termination, modification or acceleration under any of such Real Property Leases nor has any other party repudiated any provision of any such Real Property Lease; and (iv) to such Contributor's knowledge, no other party to any of such Real Property Leases is actively seeking to renegotiate, terminate, initiate a dispute under or lessen the extent of their business conducted under, any of such Real Property Leases. There are no ongoing disputes under any Real Property Leases. With respect to any Contributed Assets of a Contributor that constitute leasehold interests in federal or state owned real property, the contribution of such leasehold interest pursuant to the terms of this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby is permitted, does not conflict with, violate, or result in a breach of or default or event of default under the related Real Property Lease and does not require any consent from the lessor or other counterparty pursuant to the applicable Real Property Lease (or from any other Person), or further action on the part of the EagleRock Entities or any of their Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as disclosed on <u>Schedule 2.03(c)</u> of the Disclosure Schedules, each Contributor, and each of such Contributor's Contributed Entities, as applicable, has a good and valid easement ownership estate or other valid and enforceable use rights in the Rights of Way that are necessary for such Contributor or Contributed Entities, as applicable, to own, use or operate such Contributor's Contributed Assets as such Contributed Assets are owned, used and operated in the ordinary course of business and consistent with past practice by such Contributor or Contributed Entities, as applicable, and are contemplated to be owned, used and operated by OpCo in the manner contemplated by the PubCo S-1, except for Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To such Contributor's knowledge, there is no condition or state of facts that would prevent the Title Company from issuing a title policy insuring the fee simple, leasehold and easement estate interests of such Contributor at the Closing without any exceptions for matters that would materially interfere with OpCo's ownership, use or operation of such Contributed Assets in the manner contemplated by the PubCo S-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There is no pending or, to such Contributor's knowledge, threatened, condemnation of any real property that constitutes a portion of such Contributor's Contributed Assets by any Governmental Authority that would interfere in any material respect with OpCo's ownership, use or operation of such Contributed Assets in the manner contemplated by the PubCo S-1.

Section 2.04 **<u>Title to Personal Property</u>**. Such Contributor or such Contributor's Contributed Entities, as applicable, has good and valid title to or, as applicable, a valid leasehold interest in, all material personal property (whether tangible or intangible) that constitutes any portion of such Contributor's Contributed Assets, free and clear of all Encumbrances, except for (i) Permitted Encumbrances and (ii) such other matters as do not interfere in any material respect with such Contributor's or such Contributed Entities', as applicable, ownership, use or operation of such Contributed Assets, and would not reasonably be expected to interfere with OpCo's ownership, use or operation in the manner contemplated by the PubCo S-1. Except as provided on <u>Schedule 2.04</u> of the Disclosure Schedules, all such personal property (x) is, in all material respects, in good condition and repair, ordinary wear and tear excepted, and is suitable for the purposes for which it is presently being used and (y) does not require any material maintenance in order to perform its ordinary function(s).

Section 2.05 **<u>No Brokers Fees</u>**. Neither such Contributor nor any of its Affiliates (including such Contributor's Contributed Entities), as applicable, have incurred any obligation or liability, contingent or otherwise, for brokers' or finders' fees in connection with the transactions contemplated by this Agreement for which the EagleRock Entities shall have any responsibility or liability.

Section 2.06 **<u>No Pending or Threatened Action or Proceeding</u>**. Except as disclosed on <u>Schedule 2.06</u> of the Disclosure Schedules, there is no Action or Proceeding pending, or since January 1, 2024 and to such Contributor's knowledge, threatened in writing against its Contributed Entities or against it with respect to such Contributor's Contributed Assets that would be material.

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Section 2.07 **<u>Non-Contravention</u>**. The execution, delivery and performance of this Agreement and the other Transaction Documents by such Contributor or any of such Contributor's Contributed Entities: (a) if such Contributor is a Person that is not an individual, do not and will not conflict with or violate its or its Contributed Entities' organizational documents or any resolution of its or its Contributed Entities' members, other equity holders or board of directors (or the equivalent thereof); (b) except with respect to filings, notices or approvals required under the HSR Act, do not require any consent, approval or notice to or from any Governmental Authority that has not been obtained as of the Closing Date; (c) do not and will not violate any provision of Law or any Order; (d) do not and will not conflict with, violate or result in a breach of or default or event of default under any Contract or Permit to which such Contributor or its Contributed Entities is a party or is subject, or subject such Contributor's Contributed Assets to any Encumbrance other than Permitted Encumbrances; and (e) do not require a consent under any Contract or Permit, in any case under <u>clauses (b)</u>, <u>(c)</u>, <u>(d)</u> and <u>(e)</u>, except for those that would reasonably be expected to interfere in any material respect with the operation, use or ownership of such Contributor's Contributed Assets.

Section 2.08 **<u>Compliance with Laws; Permits</u>**. Except for Environmental matters, which are exclusively addressed in <u>Section</u> <u>2.13</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such Contributor and such Contributor's Contributed Assets have been owned and operated since January 1, 2024, in all material respects in accordance with all Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such Contributor and such Contributor's Contributed Entities, have not received written notice of any material violation of Law in connection with its or their current ownership, use or operation of such Contributor's Contributed Assets that remains unresolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Such Contributor or such Contributor's Contributed Entities hold all material Permits pursuant to applicable Law that are required for the current ownership, use or operation of any such Contributed Assets. The contribution of such Permits pursuant to the terms of this Agreement and to the other Transaction Documents and the transactions contemplated hereby and thereby is permitted and does not require any consent from or notice to the Person that issued or granted such Permit. To such Contributor's knowledge, none of Contributor or its Contributed Entities is in violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a violation) in any material respect of any term, condition or provision of any Permit held by such Contributor or any of its Contributed Entities with respect to any of their respective Contributed Assets.

Section 2.09 **<u>Taxes</u>**. Except as disclosed on <u>Schedule 2.09</u> of the Disclosure Schedules: (a) Such Contributor and each of its Contributed Entities, as applicable, has timely filed with the appropriate Taxing Authorities all material Tax Returns required by applicable Law, and such Tax Returns are true, complete, and correct in all material respects; (b) such Contributor and each of its Contributed Entities has paid and discharged in full all material Taxes due and payable under applicable Laws (whether or not shown or required to be shown on any Tax Return); (c) no audits, claims, examinations, or investigations or other Tax Proceedings with respect to its Contributed Assets are pending or, to the knowledge of such Contributor, threatened or contemplated in writing; (d) no Contributor or Contributed Entity has granted any waivers of any limitation period, or entered into agreements providing for an extension of time (other than one obtained in the ordinary course of business and consistent with past practice and that does not result in the imposition of a penalty), for filing any material Tax Return with respect to Taxes or

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the assessment, payment, or collection of any Taxes; (e) no claim has been made in the last three (3) years by a Taxing Authority in a jurisdiction in which such Contributor or any of its Contributed Entities does not file a Tax Return that such Contributor or any of its Contributed Entities is or may be subject to taxation by that jurisdiction; (f) there are no liens for Taxes on any of the Contributed Assets other than Permitted Encumbrances, and there are no liabilities for a material amount of Taxes that are delinquent and can attach to any of the Contributed Assets under applicable Law or otherwise result in liability to any EagleRock Entity as a transferee or successor; (g) none of the Contributed Assets are subject to any tax partnership agreement or are otherwise treated, or required to be treated, as held in an arrangement requiring a partnership income Tax Return to be filed under Subchapter K of Chapter 1 of Subtitle A of the Code (other than the governing document of any Contributor that is classified as a partnership for U.S. federal income Tax purposes and the limited liability company agreement of OWL HoldCo in effect prior to the HoldCo Contributions); and (h) for U.S. federal income Tax purposes, each of such Contributor's Contributed Entities is, and at all times since its formation has been, classified as set forth on <u>Schedule 2.09</u> of the Disclosure Schedules.

Section 2.10 **<u>Material Contracts</u>**. All Contracts to which such Contributor or its Contributed Entities is a party as of the Closing Date that are material to the ownership, use or operation of all or any part of such Contributor's Contributed Assets, which shall include all Contracts pursuant to which revenues are earned by such Contributor or its Contributed Entities (each, a "**<u>Revenue Contract</u>**"), other than any Real Property Leases or Rights of Way and as set forth on <u>Schedule 2.10</u> of the Disclosure Schedules, are collectively referred to herein as the "**<u>Material Contracts</u>**" of such Contributor or such Contributed Entities. (a) Each of such Contributor's or such Contributor's Contributed Entities' Material Contracts is in full force and effect and is valid, binding and enforceable against such Contributor or its applicable Contributed Entity, and to such Contributor's knowledge, the other party to such Material Contract, in accordance with its terms, except as enforceability may be limited by the Enforceability Exceptions; (b) such Contributor or such Contributor's applicable Contributed Entity is not in material breach or default, and no event has occurred which with notice or lapse of time would constitute a material breach or default by such Contributor or Contributed Entity, or permit termination, modification, or acceleration, under such Material Contract on account thereof; (c) to such Contributor's knowledge, no other party to any of such Material Contracts is in breach or default and no event has occurred which with notice or lapse of time would constitute a breach or default by such other party, or permit termination, modification or acceleration under any of such Material Contracts nor has any other party repudiated any provision of any such Material Contract; and (d) to such Contributor's knowledge, no other party to any of such Material Contracts is actively seeking to renegotiate, terminate, initiate a dispute under or lessen the extent of its business conducted under, any of such Material Contracts. There are no ongoing disputes under any Material Contract, including any disputes regarding material revenue streams under any Revenue Contract.

Section 2.11 **<u>Indebtedness</u> <u>& Undisclosed Liabilities</u>**. Except as described in the PubCo S-1, none of such Contributor's Contributed Entities has any indebtedness for borrowed money, and none of such Contributor's Contributed Assets are subject to any Liabilities associated with any indebtedness for borrowed money, indebtedness evidenced by a note, bond, debenture or similar instrument, capital lease obligations, deferred purchase price obligations or letters of credit, earn-outs, contingent payments, or any other Liabilities.

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Section 2.12 **<u>No Material Adverse Change</u>**. Since the date of such Contributor's or its Contributed Entities' most recent annual or quarterly balance sheet included in the PubCo S-1, there has been no Material Adverse Change with respect to such Contributor's Contributed Entities or Contributed Assets.

Section 2.13 **<u>Environmental</u>**. Except as would not, individually or in the aggregate, reasonably be expected to materially impair the current ownership, use or operation of the Contributed Assets of such Contributor (taken as a whole) in the ordinary course of business and consistent with past practice, or as disclosed on <u>Schedule 2.13</u> of the Disclosure Schedules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Contributor (or its Contributed Entities) has obtained all Environmental Permits required for the operation of such Contributed Assets as currently operated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all of its Contributed Assets have been operated in compliance with all Environmental Laws and all Environmental Permits required thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there has been no Release of any Hazardous Substances on, under or at the real property included in its Contributed Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) neither such Contributor nor any of such Contributor's Contributed Entities has received any written notice of any violation of any Environmental Law, the subject of which is unresolved; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) there are no Proceedings arising under Environmental Laws pending or, to such Contributor's knowledge threatened in writing against Contributor or any of Contributor's Contributed Entities.

Section 2.14 **<u>Financial Statements</u>**. The financial statements (including all related notes thereto) provided by such Contributor with respect to its Contributed Assets for inclusion in PubCo's Registration on Form S-1 filed with the U.S. Securities and Exchange Commission (the "**<u>PubCo S-1</u>**"), including the applicable balance sheet, related statements of operations, equity and cash flows, have been prepared from the applicable books and records of Contributor (or such Contributor's Contributed Entities), which books and records are true, correct and complete as of the respective dates thereof for the respective periods covered thereby, and have been maintained in a prudent and accurate manner, in accordance with GAAP and fairly present, in all material respects, the consolidated financial position, statements of operations, equity and cash flow of such Contributor (or such Contributor's Contributed Entities) as of the respective dates thereof for the respective periods covered thereby.

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Section 2.15 **<u>Water Wells; SWDs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule 2.15(a)</u> of the Disclosure Schedules sets forth a complete and accurate listing of all of the water wells used by such Contributor or its Contributed Entities in its business on the lands included in the Contributed Assets (such wells, the "**<u>Water Wells</u>**"). There are no water wells currently utilized in such business on the lands included in the Contributed Assets or on the Contributed Assets other than the Water Wells. The Water Wells and all related equipment are in good operating condition, ordinary wear and tear excepted. There is no Water Well in respect of which the applicable Contributor or its Contributed Entities has received any order or written notice from any Governmental Authority requiring that such Water Well be curtailed in any way, or currently plugged and abandoned and for which such plugging and abandonment requirements have not been completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Schedule 2.15(b)</u> of the Disclosure Schedules sets forth a complete and accurate listing of all of the water infrastructure assets, facilities, equipment, machinery, tools, supplies, and other tangible personal property associated, or used or held for use in connection, with the Water Wells, including all gathering lines, flow lines, lay flat lines, pipelines, storage facilities, tanks, tubing, pumps, motors, gauges, valves, ponds, pits and other systems, machinery and equipment constituting part of or comprising water gathering systems or related assets (collectively, the "**<u>Water Fixtures</u>**") used in the business of such Contributor or its Contributed Entities on the lands included in the Contributed Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Schedule 2.15(c)</u> of the Disclosure Schedules sets forth a complete and accurate listing of all of the saltwater disposal wells used by such Contributor or its Contributed Entities in its business (the "**<u>SWDs</u>**"). There are no saltwater disposal wells currently utilized in such business or on the Contributed Assets other than the SWDs. The SWDs and all related equipment are in good operating condition, ordinary wear and tear excepted. There is no SWD in respect of which the applicable Contributor or its Contributed Entities has received any order or written notice from any Governmental Authority requiring that the injection rates for such SWD be curtailed, suspended, or shut-in in any way, or plugged and abandoned and for which such plugging and abandonment requirements have not been completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Schedule 2.15(d)</u> of the Disclosure Schedules sets forth a complete and accurate listing of all of the assets, facilities, equipment, machinery, tools, supplies, and other tangible personal property associated, or used or held for use in connection, with the SWDs (collectively, the "**<u>SWD Fixtures</u>**") used in the business of such Contributor or its Contributed Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Such Contributor or its Contributed Entities has made available to the EagleRock Entities a true, complete and correct wellbore diagram for each Water Well and each SWD to the extent such diagrams are in such Contributor's or its Contributed Entities' possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Water Well and SWD has been drilled and completed in compliance, in all material respects, with all applicable Laws and Permits. Neither the applicable Contributor or any of its Contributed Entities has received any correspondence from a Governmental Authority or other Person that alleges a Water Well or SWD is not in compliance with all applicable Laws and Permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Such Contributor or its Contributed Entities has not deferred maintenance or repair of any Water Well, Water Fixture, SWD or SWD Fixture.

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Section 2.16 **<u>Sufficiency of Assets</u>**. The Contributed Assets Schedule of such Contributor, as applicable, sets forth a complete and accurate listing of all of the Contributed Assets of such Contributor and its Contributed Entities. The Contributed Assets contributed by such Contributor are sufficient in all material respects to enable PubCo and its Affiliates to continue the operation of the Contributed Assets and the business of the Contributed Entities immediately following the Closing in such a manner as proposed to be conducted as described in the PubCo S-1. None of such Contributor's assets that are not Contributed Assets are necessary for the operation of any Contributed Assets or the business of any of such Contributor's Contributed Entities immediately following the Closing in such a manner as proposed to be conducted as described in the PubCo S-1.

Section 2.17 **<u>Affiliate Relationships</u>**. None of such Contributor's Contributed Entities are party to, and none of its Contributed Assets are subject to, any contractual or other business relationships with such Contributor or its Affiliates that would be required to be disclosed in the PubCo S-1 that are not so disclosed.

Section 2.18 **<u>S-1 Information</u>**. All information regarding such Contributor (and such Contributor's Contributed Assets) that was provided by such Contributor and is included in the PubCo S-1, including such Contributor's (or such Contributor's Contributed Entities) financial statements, business description and contractual arrangements, does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading.

Section 2.19 **<u>Private Placement</u>**. Such Contributor is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933. Such Contributor acknowledges that such Contributor can bear the economic risk of its investment in OpCo Units and Class B Shares for an indefinite period of time, and has such knowledge and experience in financial and business matters that such Contributor is capable of evaluating (and has evaluated) the merits and risks of the investment in OpCo Units and Class B Shares. Such Contributor understands that OpCo Units and Class B Shares to be issued in connection with the transactions contemplated by this Agreement have not been registered under the Securities Act of 1933, as amended, by reason of a specific exemption from the registration provisions of such act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of such Contributor's representations as expressed herein. Such Contributor understands that the OpCo Units and Class B Shares acquired in connection with the transactions contemplated by this Agreement and any securities issued in respect of or exchanged therefor may bear certain legends regarding the restricted nature of such securities, and any legend required by the securities laws of any state to the extent such laws are applicable to the OpCo Units or Class B Shares represented by the certificate so legended.

Section 2.20 **<u>No Implied Representations</u>**. EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN THIS <u>ARTICLE II</u>, ANY OTHER TRANSACTION DOCUMENT OR ANY CERTIFICATE OF SUCH CONTRIBUTOR DELIVERED PURSUANT TO THIS AGREEMENT, (A) SUCH CONTRIBUTOR MAKES NO REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR IMPLIED (INCLUDING WITH RESPECT TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONDITION, DESIGN, OPERATION, CAPACITY OR OTHERWISE) WITH RESPECT TO SUCH CONTRIBUTOR OR SUCH CONTRIBUTOR'S CONTRIBUTED ASSETS, (B) SUCH CONTRIBUTOR EXPRESSLY DISCLAIMS ALL LIABILITY AND

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RESPONSIBILITY FOR ANY STATEMENT OR INFORMATION MADE OR COMMUNICATED (ORALLY OR IN WRITING) TO EACH OTHER CONTRIBUTOR, THE EAGLEROCK ENTITIES OR ANY OF THEIR RESPECTIVE AFFILIATES, AGENTS, CONSULTANTS OR REPRESENTATIVES (INCLUDING ANY OPINION, INFORMATION OR ADVICE THAT MAY HAVE BEEN PROVIDED) AND (C) SUCH CONTRIBUTOR'S CONTRIBUTED ASSETS ARE CONTRIBUTED TO OPCO "AS-IS, WHERE-IS", WITH ALL FAULTS, KNOWN AND UNKNOWN.

**ARTICLE III** 

COVENANTS

Section 3.01 **<u>Interim Operating Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Closing, Lea & Eddy shall cause the EagleRock Entities not to take any actions or engage in any business or transactions other than those necessary for such entities to perform their obligations under, and consummate the transactions contemplated by, this Agreement and the other Transaction Documents to which the EagleRock Entities, as applicable, will be a party. Notwithstanding the foregoing, the employment agreements set forth on <u>Schedule</u><u> </u><u>3.01(a)</u> shall be assigned to, and all obligations thereunder assumed by PubCo prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Contributor shall, and shall cause its Contributed Entities to, operate or cause the operation of its and their respective Contributed Assets in the ordinary course of business and consistent with past practice in all material respects, and in accordance with applicable Laws, Orders, and Contracts; *provided* that, no Contributor shall, or shall permit its Contributed Entities to, amend or terminate any Material Contract, Real Property Lease, Permit or Right of Way to which it is a Party, and each Contributor shall, and shall cause its Contributed Entities to, use all reasonable efforts to keep available the service of its employees, if any, in relation thereto until the Closing Date. Additionally, each Contributor shall, and shall cause its Contributed Entities to, cooperate with OpCo to (i) cause the Title Company to issue a policy of title insurance on any real property interests included in its Contributed Assets prior to and to take effect as of the Closing, such title insurance policy insuring the fee simple, leasehold and easement estates, as the case may be, held by such Contributor (or such Contributor's Contributed Entities) subject to no Encumbrances other than Title Policy Permitted Encumbrances, and otherwise in form and substance reasonably acceptable to the Designated Committee, and (ii) procure a survey of such real property in form and substance reasonably acceptable to the Designated Committee and sufficient for the title insurance policy to provide survey coverage, endorsements, and other affirmative coverages requiring a current survey to be issued. In addition, each Contributor shall execute and deliver, and shall cause its Contributed Entities to execute and deliver, such affidavits (including non-imputation affidavits), certificates, information (including financial data), lien waivers and instruments of indemnification (including a so-called "gap" indemnification), and other documentation (all of the foregoing, collectively, "**<u>Ancillary Title Documents</u>**") as shall be required by the Title Company to induce the Title Company to issue the title policy contemplated above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except (x) as otherwise expressly contemplated by this Agreement or in a schedule to this Agreement, (y) as required by applicable Law or (z) with the prior written consent of the Designated Committee, prior to the Closing Date, each Contributor shall not, and shall cause its Contributed Entities not to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend or otherwise change its organizational documents or undertake any reorganization, restructuring, consolidation or other similar transaction other than in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) initiate, settle or voluntarily participate in any Proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) other than in respect of the Reimbursable Expenditures, make any commitment to capital expenditures or similar commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sell, assign, lease, sublease, Encumber (other than Permitted Encumbrances), transfer or otherwise dispose of any portion of such assets (other than the disposition of obsolete or worn-out assets in the ordinary course of business and consistent with past practice);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) permit any insurance policy providing coverage in respect of any of its Contributed Assets to lapse or otherwise not be maintained, including by not paying any premiums or other costs associated therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) take any action with respect to its Contributed Assets, or otherwise, that would require any amendment to the disclosures set forth in the PubCo S-1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) except as in the ordinary course of business and consistent with past practice, (A) make, change or revoke any Tax election or accounting method, (B) settle or compromise any Tax claim, (C) waive or extend the statute of limitations in respect of any Taxes (other than extensions of time to file Tax Returns), (D) enter into any agreement, settlement or compromise relating to, any Tax liability, or (E) amend any Tax Return;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) other than in the ordinary course of business and consistent with past practice, enter into a Contract that would be a Material Contract, Real Property Lease or Right of Way; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) enter into any agreement, whether in writing or otherwise, to do or commit to do any of the actions described in the foregoing <u>clauses (i)</u> through <u>(viii)</u> of this <u>Section</u> <u>3.01(c)</u>.

Section 3.02 **<u>Regulatory Approvals</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The applicable Parties have filed with the United States Federal Trade Commission and the United States Department of Justice the notification required to be filed under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and the rules and regulations promulgated thereunder (the "**<u>HSR Act</u>**") with respect to the transactions contemplated herein. Each Party shall reasonably cooperate with and use commercially reasonable efforts to assist the other with respect to such filings, applications and negotiations. Each Party shall promptly inform the other Parties of any oral communication, and provide copies of written communications, with any Governmental Authority regarding any such filings. None of the Parties shall independently

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participate in any substantive meeting with any Governmental Authority in respect of any such filings or other inquiry without giving the other Parties prior notice of the meeting and, to the extent permitted by such Governmental Authority, the opportunity to attend or participate. Any Party may, as it deems advisable and necessary, reasonably designate any competitively sensitive material provided to the other under this <u>Section</u> <u>3.02</u> as "outside counsel only." Such materials and the information contained therein shall be given only to the outside legal counsel of such Party and will not be disclosed by such outside counsel to employees, officers, or directors of such Party, unless express written permission is obtained in advance from the source of the materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties shall use commercially reasonable efforts to cooperate and eliminate each and every impediment under the HSR Act or any other antitrust, competition or merger control Law that is asserted by any Governmental Authority or any other Person so as to enable the Parties to consummate the transactions contemplated hereby as soon as practicable; *provided* that nothing in this <u>Section</u> <u>3.02</u> shall require the Parties to offer, propose, negotiate, agree to, commit to and effect, by consent decree, hold separate order or otherwise, (i) divestitures, sales, transfers or other dispositions of, licenses of, or hold separate or similar arrangements with respect to any businesses, assets or interests, (ii) the termination, amendment, assignment or creation of relationships, contractual rights or obligations, ventures or other arrangements, (iii) any change to or restriction on the conduct of business, including restrictions on the ability to manage, operate or own any assets, product lines, businesses or interests, (iv) any modification or waiver of the terms and conditions of this Agreement; and (v) any other change or restructuring and other actions and non-actions with respect to businesses, assets or interests.

Section 3.03 **<u>Public Announcements</u>**. Prior to the Closing, none of the Parties shall make any press release or other public announcement or issue any communications with respect to the IPO, this Agreement, the Transaction Documents or the transactions contemplated hereby or thereby without the prior written consent of the Designated Committee; *provided*, *however*, that the foregoing shall not restrict communications among the Parties and their Representatives related to the completion of the IPO or the transactions contemplated by this Agreement. The initial press release with respect to the IPO shall require the Designated Committee's approval and shall be issued by PubCo. After the Closing, none of the Parties shall make any press release or other public announcement or issue any communications with respect to the EagleRock Entities, the IPO, this Agreement or the transactions contemplated hereby without the prior written consent of PubCo's board of directors; *provided*, *however*, a Contributor may make such disclosures as are required by applicable Law, regulation or stock exchange rule, so long as such disclosure is not inconsistent with the disclosures and the communications of PubCo.

Section 3.04 **<u>Commercially Reasonable Efforts; Further Assurances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, each Party will use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under applicable Laws to consummate the transactions contemplated by this Agreement and the other Transaction Documents, including giving effect to decisions and directions of the Designated Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the Closing, each Party agrees to take such further actions and to execute, acknowledge and deliver all such further documents as are reasonably necessary for carrying out the purposes of this Agreement or any document delivered pursuant to this Agreement, including all agreements to be executed by the Parties in connection with the consummation of the transactions contemplated by this Agreement and the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Following the date hereof and prior to the Closing Date (or the earlier termination of this Agreement), each Party shall notify each of the other Parties in writing promptly after such Party obtains (i) any material notice or communication regarding any Contributed Entity or Contributed Asset, including from any customer, supplier, Contract counterparty or Governmental Authority (and provide each of the other Parties a copy of such notice or communication) or (ii) knowledge or otherwise becomes aware of any fact, change, condition, circumstance or occurrence or nonoccurrence of any event that is reasonably likely to result in any of the conditions set forth in <u>Section</u> <u>4.01</u> becoming incapable of being satisfied.

Section 3.05 **<u>Books and Records</u>**. After the Closing, each Contributor shall deliver to PubCo or its applicable Affiliate, to the extent such items have not previously been delivered to such applicable entity pursuant to this Agreement (or another Transaction Document), copies of all Books and Records relating to such Contributor's Contributed Assets.

Section 3.06 **<u>Tax Matters</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer Taxes</u>. OpCo shall bear, pay and hold harmless the Contributors against (i) any and all transfer, documentary, sales, use, value-added, excise, filing, recording, registration or other similar Taxes (collectively, "**<u>Transfer Taxes</u>**") imposed in connection with the HoldCo Contributions, the Lea & Eddy Subsidiaries Contribution and the Flow Contribution and (ii) all required documentary, filing and recording fees and expenses incurred in connection with the filing and recording of the assignments, conveyances, or other instruments required to convey the Contributed Assets to OpCo. The Party required by applicable Law to file any Tax Return in respect of any such Transfer Taxes shall timely file (or cause to be timely filed) such Tax Return with the applicable Taxing Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding</u>. The Parties acknowledge and agree that no deduction or withholding is required under applicable Law with respect to any amounts payable or deliverable to the Contributors (or any Affiliate thereof) in connection with the HoldCo Contributions if the certification set forth in <u>Section</u> <u>4.02(e)</u> is delivered by the Contributors. To the extent that any amounts are to be deducted or withheld as a result of any Contributor failing to deliver such certification, (i) the EagleRock Entities shall use commercially reasonable efforts to provide such Contributor with notice reasonably in advance of such intended deduction or withholding and shall reasonably cooperate with the EagleRock Entities to reduce or eliminate the amount of any such deduction or withholding to the extent permitted by applicable Law, and (ii) such deducted or withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Straddle Period Allocation</u>. In the case of Taxes that are payable by any Contributor in respect of the Contributed Assets with respect to any Straddle Period, the portion of any such Tax that is attributable to the portion of such Straddle Period ending at the Closing Date shall be:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of Taxes that are either (A) based upon or related to income or receipts, or (B) imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or intangible), deemed equal to the amount that would be payable if the Tax period of the applicable Contributed Entity ended with (and included) the Closing Date; *provided*, *however*, that exemptions, allowances or deductions that are calculated on an annual basis (including depreciation and amortization deductions) shall be allocated between the portion of the Straddle Period ending on and including the Closing Date and the period beginning after the Closing Date in proportion to the number of days in each period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of Taxes that are imposed on a periodic basis with respect to the assets or capital of the Contributed Entities, deemed to be the amount of such Taxes for the entire Straddle Period (or, in the case of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding period), multiplied by a fraction the numerator of which is the number of days in the portion of the period ending on and including the Closing Date and the denominator of which is the number of calendar days in the entire period;

*provided*, *however*, that in each case Taxes shall be treated as due for the taxable period (or portion thereof) during which the base of such Taxes are determined without regard to whether the payment of such Taxes provides the right to do business or other benefits for another taxable period (or portion thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Cooperation</u>. Each Party shall cooperate fully, as and to the extent reasonably requested by any other Party, in connection with the preparation and filing of all Tax Returns, the preparation for any Tax Proceeding, and the prosecution or defense of any Tax Proceeding. Such cooperation shall include the retention and (upon another Party's request) the provision of Books and Records that are relevant to any such Tax Return or Tax Proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided under this Agreement. The Contributors and the EagleRock Entities agree to retain all Books and Records with respect to Tax matters pertinent to the Contributed Assets relating to any Tax period beginning before the Closing Date until the expiration of the statute of limitations of the respective taxable periods and to abide by all record retention agreements entered into with any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Tax Proceedings</u>. If, after the Closing Date, an EagleRock Entity receives notice of a Tax Proceeding, the outcome of which could reasonably be expected to result in a material Claim for which the Contributors are indemnifying an EagleRock Entity pursuant to <u>Section</u> <u>7.01</u> (a "**<u>Contributor Tax Proceeding</u>**"), such EagleRock Entity shall notify the applicable Contributor(s) within ten (10) days of receipt of such notice; *provided*, that the failure of such EagleRock Entity to provide such notice will not relieve any Contributor of its obligations under this Agreement except to the extent that a Contributor shall have been materially prejudiced as a result of such failure. Contributors shall have the option, at their sole cost and expense, to control any applicable Contributor Tax Proceeding and may exercise such option by providing written notice to such EagleRock Entity within fifteen (15) days of receiving notice of such Contributor Tax Proceeding from such EagleRock Entity; *provided* that if a Contributor exercises such option, such Contributor shall (i) keep such EagleRock Entity reasonably informed of the progress of such

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Contributor Tax Proceeding, (ii) permit such EagleRock Entity (or such EagleRock Entity's counsel) to participate, at the EagleRock Entity's sole cost and expense, in such Contributor Tax Proceeding, including in meetings with the applicable Governmental Authority, and (iii) not settle, compromise and/or concede any portion of such Tax Proceeding without the consent of such EagleRock Entity, which consent shall not be unreasonably withheld, conditioned or delayed. To the extent an EagleRock Entity controls the conduct of a Contributor Tax Proceeding pursuant to this <u>Section</u> <u>3.06(e)</u>, the relevant Contributor(s) shall promptly reimburse such EagleRock Entity for all reasonable costs and expenses of defending such Contributor Tax Proceeding. To the extent the provisions of this <u>Section</u> <u>3.06(e)</u> are inconsistent with <u>Section</u> <u>7.01</u>, this <u>Section</u> <u>3.06(e)</u> shall control with respect to any Contributor Tax Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Agreed Tax Treatment</u>. The Parties agree that, for U.S. federal income tax purposes (and applicable U.S. state and local income tax purposes that follow such treatment) (x) the PubCo Cash Contributions made in exchange for the PubCo Shares and the IPO Cash Contribution made in exchange for Class A Shares, together qualify as a transaction described under Section 351 of the Code, and (y) the transfer of all of the Contributed Assets by the Contributors to OpCo in exchange for, at the Closing, Contributor OpCo Units, the TCW Debt Assumption, any reimbursement to Contributors pursuant to <u>Section</u> <u>3.10(b)</u> or <u>Section</u> <u>3.10(c)</u>, and any other liabilities related to the Contributed Assets, the right to receive the Cash Distribution, and any other amounts constituting consideration for Tax purposes, shall be treated as (i) in part, a transfer qualifying for nonrecognition of gain or loss pursuant Section 721(a) of the Code to the extent applicable and (ii) in part, (A) to the extent possible, a reimbursement of preformation capital expenditures within the meaning of Treasury Regulation Section 1.707-4(d) incurred with respect to such Contributor's Contributed Assets, and (B) to the extent that clause (A) is inapplicable, as a disguised sale transaction described in Section 707(a)(2)(B) of the Code with respect to any amounts treated as a transfer of consideration pursuant to Section 707(a)(2)(B) and Treasury Regulations Section 1.707-3(a)(1) (including any cash consideration and any amount of liabilities other than "qualified liabilities" (within the meaning of Treasury Regulations Section 1.707-5(a)(6)) deemed to be assumed as part of such transfer) (the "**<u>Agreed Tax Treatment</u>**"). The Parties shall (and shall cause their Affiliates to) (i) promptly furnish information to EagleRock Entities to support the Agreed Tax Treatment, (ii) file all Tax Returns in a manner consistent with the Agreed Tax Treatment, (iii) not take any position contrary to the Agreed Tax Treatment, and (iv) promptly inform one another in writing of any Tax Proceeding related to the matters in this <u>Section</u> <u>3.06(f)</u> and consult and keep one another informed with respect to the status of such Tax Proceeding, in each case, unless required to do so by a final "determination" as defined in Section 1313 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Parties shall (and shall cause their Affiliates to) cooperate fully and in good faith to cause, and as necessary hereby authorize the EagleRock Entities to cause to be made a timely election under Section 6226 of the Code (and any corresponding elections under any analogous provision of state or local Law) with respect to OWL HoldCo in respect of any audit, examination or judicial or administrative proceeding of OWL HoldCo by any Governmental Authority under Sections 6221 through 6241 of the Code (and any analogous provision of state or local Law) for any taxable year beginning prior to the Closing Date.

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Section 3.07 **<u>Access</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Closing, each Contributor shall provide, or cause to be provided, the other Parties with access to such Contributor's Contributed Assets, and the Books and Records associated therewith, for the purpose of conducting pre-contribution reviews of such assets and to facilitate their orderly transition to being owned, used and operated by the EagleRock Entities. Any Person seeking such access shall provide such Contributor with reasonable advance written notice of such request for access and shall abide by each such Contributor's safety rules, regulations, and operating policies with respect to such Contributed Assets while conducting such reviews of such assets. In connection with such reviews, any Person seeking such access shall not conduct any environmental sampling or testing. The access granted to such Person shall be limited to normal business hours, and such Person's reviews shall be conducted in a manner that minimizes interference with the operation of the applicable Contributed Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the provisions of <u>Section</u> <u>3.07(a)</u>, all access and disclosure shall be given on a strictly confidential basis and if any such access would impair any attorney-client or similar privilege or conflict with or result in a violation of Law then such access shall not be permitted by or under <u>Section</u> <u>3.07(a)</u>.

Section 3.08 **<u>Damage Recovery</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If between the date hereof and the Closing Date, any Contributor or any of its respective Affiliates becomes aware of any Damages incurred or suffered with respect to such Contributor's Contributed Assets, which Damages are potentially recoverable pursuant to insurance or an indemnification or similar arrangement with a Third Party, then such Contributor or its Affiliates shall use commercially reasonable efforts to pursue the collection of such Damages from such Third Party under such insurance or indemnification or other arrangement, as applicable, and, if received prior to the Closing shall pay or cause to be paid to OpCo, or as otherwise directed by OpCo, any amounts received in respect of such Damages at the Closing; *provided*, *however*, that if such Damages are remedied, to the reasonable satisfaction of the Designated Committee prior to the Closing by such Contributor, then such amounts shall be retained by such Contributor (and if such amounts are received after the Closing by a Contributed Entity, then such Contributed Entity shall promptly (and in any event within three Business Days of receipt) hand over such amounts to such Contributor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent any such insurance policies or indemnification or similar arrangements applicable to any Contributed Assets, or any Contracts that are related to any Contributed Assets but are not Contributed Assets, are not included among each such Contributor's Contributed Assets, each Contributor will (i) transfer or assign, or otherwise agree to make available, to OpCo all rights to indemnification, insurance proceeds or other third party recovery of any kind with respect to any Damages incurred or suffered by OpCo related to the relevant Contributed Assets of such Contributor, and (ii) agree to cooperate with OpCo in furtherance of any recovery thereunder, including by making, managing and prosecuting any claims or disputes thereunder as requested by OpCo in writing and assigning any rights to OpCo to prosecute and manage such claims or disputes, and such Contributor agrees to promptly (and in any event within three Business Days of receipt) hand over and pay to OpCo any proceeds paid by any such insurer or Contract counterparty as a result thereof.

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Section 3.09 **<u>Designated Committee</u>**. Each of Lea & Eddy, Double Eagle, and the Shallow Valley Owners shall have the right to appoint one (1) member to a designated committee formed for the purpose of facilitating the IPO (the "**<u>Designated Committee</u>**"), which Designated Committee shall initially be comprised of , , and (each, a "**<u>Designated Committee Member</u>**" and collectively, the "**<u>Designated Committee Members</u>**"), and the Contributors and EagleRock Entities hereby irrevocably and unconditionally appoint such persons to the "Designated Committee" to serve in such capacity pursuant to this Agreement from the date of this Agreement until the completion of the IPO in order to facilitate the IPO. The Designated Committee shall be, and hereby is, authorized to have, and is hereby delegated in full, the exclusive power and authority take all substantive and other actions, and make all decisions, in connection with the IPO, each of which actions and decisions shall be made by a majority vote of the Designated Committee Members, which must include the affirmative vote of each of the Designated Committee Members appointed by Double Eagle and Lea & Eddy, including to: (a) approve and authorize the pricing terms to be included in the preliminary prospectus in connection with the IPO; (b) to, in consultation with the underwriters, initiate and launch the road show in connection with the IPO; (c) manage communications and otherwise interact with the underwriters of the IPO during the marketing process therefor; (d) determine whether or not proceeding with the pricing and closing of the IPO is in the best interests of the Contributors as a whole based on the terms presented to the Designated Committee by the underwriters; (e) terminate the IPO and the pursuit thereof (a "**<u>Designated Committee IPO Termination</u>**"); (f) make all decisions regarding pricing and allocation in connection with the IPO; (g) negotiate the final terms of the Underwriting Agreement and make all decisions related to the finalization of such agreement, and cause the EagleRock Entities to execute and deliver the same; (h) approve and authorize the final prospectus and all terms included therein; and (i) make all decisions related to the foregoing and otherwise as are reasonably necessary to carry out and consummate the IPO as the Designated Committee deems appropriate. The Designated Committee shall act in accordance with all applicable Laws. The Designated Committee is hereby authorized to do all other things that may, in its judgment, be necessary or appropriate to carry out its responsibilities. At such time as the Designated Committee has made any decision in connection with its power and authority as set forth herein, each Party shall, and shall cause its respective Affiliates and Representatives to, cooperate and use commercially reasonable efforts to cause the successful implementation of such decision and to otherwise cause the IPO to be completed (or terminated, if a Designated Committee IPO Termination occurs), including the making of any filings with the United States Securities and Exchange Commission, the finalization of any documents contemplated by this Agreement or otherwise. The Designated Committee shall not at any time have any Liability of any kind whatsoever to any Party or its Affiliates or their respective Representatives arising out of, resulting from or in connection with its actions carried out, or decisions made, in discharging its responsibilities as the Designated Committee. Except in the case of fraud, gross negligence or willful misconduct on the part of the Designated Committee or any Designated Committee Member, but otherwise notwithstanding anything to the contrary in this Agreement, no Party shall make any claim, for any Damages (and the Parties hereby waive any right of contribution, indemnification or other recovery against the Designated Committee and its Affiliates and Representatives), under, arising out of or relating to this Agreement or the transactions contemplated by this Agreement, whether based in contract, tort, strict liability, common law, other laws or otherwise, against the Designated Committee or any Designated Committee Member for actions carried out, or decisions made, in discharging its responsibilities as the Designated Committee as set forth in this <u>Section</u> <u>3.09</u>. For the avoidance of doubt, this waiver and release shall apply solely to actions taken by the Designated Committee or any Designated Committee Member in its capacity as such in connection with this Agreement and the transactions contemplated by this Agreement.

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Section 3.10 **<u>Expenses</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section</u> <u>3.10(c)</u>, each Contributor, as to such Contributor's Contributed Assets, shall bear and pay (or reimburse the EagleRock Entities for) all costs and expenses attributable to the operation, maintenance and expansion of such Contributed Assets for the period prior to the Closing Date, including (i) all operation and maintenance expenses, (ii) all capital expenditures, (iii) other miscellaneous costs and expenses incidental to the operation, protection and maintenance of such assets, (iv) all related repair costs and (v) other costs incidental to the operation, protection and maintenance of such assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party shall bear its own legal, due diligence, accounting and other transaction costs, fees and expenses incurred by such Party in connection with the preparation for, negotiation of, and consummation of the transactions contemplated by, this Agreement; *provided* that (i) fees payable to underwriters in connection with the IPO and (ii) IPO transaction costs or other legal, accounting and advisory expenses incurred in connection with the EagleRock Form S-1 filing, or expenses incurred on behalf of the EagleRock Entities, including personnel costs and public company readiness expenses incurred by a Contributor and approved by the Designated Committee, shall be paid or reimbursed by OpCo out of the Transaction Expenses Payment within 30 days following the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Contributors agree that (i) the expenditures spent prior to the execution of this Agreement and set forth adjacent to each applicable Contributors' name on <u>Schedule 3.10(c)</u> shall be entitled to be, and shall be, reimbursed in cash by OpCo promptly following the Closing as part of the Transaction Expenses Payment and (ii) from and after the date hereof, the Contributors set forth on <u>Schedule 3.10(c)</u> are authorized to undertake the expenditures set forth adjacent to their respective names on such schedule and to incur the associated expenditures in substantially such amounts and for substantially such purposes as set forth on such schedule (the "**<u>Reimbursable Expenditures</u>**") and, so long as such expenditures are carried out in substantially such amounts and for substantially such purpose, such Contributors shall be entitled to be, and shall be, reimbursed in cash by OpCo promptly following the Closing as part of the Transaction Expenses Payment.

Section 3.11 **<u>Additional Flow Easements</u>**. As of the date hereof, Flow is seeking to obtain the easements and easement amendments described in <u>Schedule 3.11</u> hereto (the "**<u>Additional Flow Easements</u>**"). Double Eagle shall cause Flow to use commercially reasonable efforts to obtain the Additional Flow Easements prior to Closing or as soon as practicable thereafter.

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**ARTICLE IV** 

CONDITIONS PRECEDENT TO CLOSING; CLOSING

Section 4.01 **<u>Mutual Conditions Precedent</u>**. The obligations of a Contributor to consummate the transactions contemplated by this Agreement are subject to the satisfaction (or waiver by each other Contributor) on or prior to the Closing of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Order</u>. No Order of a Governmental Authority shall be in effect and no Law shall have been enacted or adopted that restrains, enjoins or otherwise prohibits the consummation of the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>HSR Waiting Period</u>. Any applicable waiting period (and any extension thereof) under the HSR Act with respect to the transactions contemplated by this Agreement shall have expired or been terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Representations and Warranties</u>. Each of the representations and warranties made by each other Contributor (other than its Fundamental Contributor Representations and Warranties, which shall be true and correct in all respects (other than de minimis inaccuracies) as though made on and as of the Closing Date) shall be true and correct in all respects as of the Closing Date as though made on and as of the Closing Date, other than representations and warranties that refer to a specified date, which need only be true and correct on and as of such specified date, without regard to any material adverse effect or other "materiality" qualifier set forth therein, except to the extent that the failure of any such representations or warranties to be so true and correct would not be, individually or in the aggregate, a Material Adverse Change with respect to such other Contributor's Contributed Assets or such other Contributor's ability to consummate the transactions contemplated by this Agreement and the other Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Covenants</u>. Each Party shall have performed and complied with, in all material respects, all covenants and agreements required hereby to be performed or complied with by such Party on or prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Closing Deliveries</u>. Each Party shall have (i) executed and delivered the documents to which such Party is a party and (ii) caused to be delivered any documents to which its Affiliates or any of their related persons is a party, in each case, as set forth in <u>Section</u> <u>4.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Contributors Closing Certificate</u>. Each Contributor shall have delivered to the EagleRock Entities and the Designated Committee a certificate in form and substance reasonably satisfactory to the EagleRock Entities and the Designated Committee to the effect that the conditions specified in <u>Section</u> <u>4.01(c)</u> and <u>(d)</u> with respect to such Contributor have been satisfied in all respects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Underwriting Agreement</u>. The Underwriting Agreement shall have been duly executed by the parties thereto.

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Section 4.02 **<u>Closing Documents</u>**. At the Closing, each applicable Party shall execute and deliver to the applicable counterparties each of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Amended and Restated Company Agreement of PubCo substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Amended and Restated Company Agreement of OpCo substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) the Merger Agreements and all associated certificates of merger, (ii) the TCW Blocker Merger Agreements and all associated certificates of merger, and (iii) the Shallow Valley Entities Merger Agreement and the related certificate of merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Contribution Agreements contemplated by <u>Section</u> <u>1.01(a)</u>, <u>Section</u> <u>1.01(b)</u>, <u>Section</u> <u>1.03</u> and <u>Section</u> <u>1.04</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a completed and executed IRS Form W-9 with respect to each Contributor (or, if a Contributor is treated as an entity disregarded as separate from its regarded tax owner for U.S. federal income tax purposes, the Person that is treated as its regarded owner for such purposes), dated not more than thirty (30) days prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) certified copies of the authorizing consents or resolutions of such Party or its Affiliates dated no later than the date of this Agreement, as applicable, authorizing the transactions contemplated pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Produced Water Recycling Rights Agreement, duly executed by OpCo and Hydrosource Logistics substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Amended and Restated Supply Water Purchase and Produced Water Gathering and Disposal Agreement, duly executed by Flow and certain subsidiaries of Double Eagle that are party thereto, in such form as the Designated Committee shall have approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Water System Management Agreement, duly executed by Flow and DEF Operating, LLC, a Delaware limited liability company and wholly owned subsidiary of Double Eagle substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Registration Rights Agreement, duly executed by the parties thereto substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Indemnification Agreement, duly executed by the parties thereto substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Shareholders' Agreement, duly executed by the parties thereto substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Voting Agreement, duly executed by the parties thereto substantially in the form filed with the PubCo S-1, with such changes thereto as the Designated Committee shall have approved; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any other documents, instruments, or certificates contemplated to be executed or delivered by a Contributor, an EagleRock Entity or otherwise pursuant to this Agreement.

Section 4.03 **<u>Closing</u>**. Each of the transactions contemplated by this Agreement shall take place at such time as contemplated by this Agreement and remotely by exchange of documents and signatures or their electronic counterparts. The Closing shall occur on the "Closing Date", which shall be the date upon which the closing of the transactions contemplated by the Underwriting Agreement is consummated.

**ARTICLE V** 

TERMINATION

Section 5.01 **<u>Termination</u>**. This Agreement may be terminated at any time before the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual written consent of each of the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by any Party if there is (i) a material breach of any representation or warranty made by any Contributor in this Agreement or (ii) a material breach of any covenant or agreement to be complied with or performed by any Party in this Agreement, in each case, that causes any of the conditions to closing set forth in <u>Section</u> <u>4.01</u> not to be satisfied by, or incapable of being satisfied by, , 2026, or such later date as agreed in writing by all of the Parties; *provided*, *however*, that such terminating Party is not then in breach of this Agreement so as to prevent the conditions to Closing set forth in <u>Section</u> <u>4.01</u> from being satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Closing has not occurred by , 2026, or such later date as agreed in writing by each of the Parties; *provided*, *however*, that the right to terminate this Agreement under this <u>Section</u> <u>5.01(c)</u> shall not be available to any Party whose failure to fulfill any obligation under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before such date; *provided further*, that neither PubCo nor OpCo shall have any right to terminate this Agreement under this <u>Section</u> <u>5.01(c)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by any Party upon a Designated Committee IPO Termination.

Section 5.02 **<u>Effect of Termination</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If validly terminated in accordance with <u>Section</u> <u>5.01</u>, this Agreement shall, except as provided in this <u>Section</u> <u>5.02</u>, terminate and be of no further force and effect. This <u>Section</u> <u>5.02</u> and <u>Article VIII</u> shall survive any termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, in the event that (x) all conditions precedent to the Closing of a Contributor have been satisfied or waived and (y) the Closing has not occurred solely as a result of the breach by another Contributor (the "**<u>Breaching Party</u>**") of its representations, warranties or covenants hereunder (including such Breaching Party's obligation to consummate the transactions contemplated by this Agreement at the Closing), each non-breaching Party shall be entitled to (i) exercise any rights available to it at law or in equity, including the right to seek specific performance, against the Breaching Party, and (ii) receive reimbursement from the Breaching Party of all documented out-of-pocket costs and expenses incurred by such non-breaching Party in connection with pursuing the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in this <u>Article V</u> will impair the right of any EagleRock Entity or Contributor to compel specific performance or other equitable remedies by another Contributor of such Contributor's obligations under this Agreement. Each Party agrees that if any of the provisions of this Agreement were not performed in accordance with their specific terms on a timely basis or were otherwise breached irreparable damage would occur, no adequate remedy at law would exist (even if Damages would be available) and Damages would be difficult to determine, and that, unless this Agreement has been terminated in accordance with its terms, the EagleRock Entities and each Contributor shall be entitled to an injunction or injunctions to prevent breaches or threatened breaches of this Agreement, to enforce specifically the terms and provisions of this Agreement and to compel performance by the Contributors of their respective obligations set forth in this Agreement, without the necessity of proving the inadequacy of money damages as a remedy, in addition to any other remedy at law or in equity. Accordingly, in the event of any such breach of a Contributor's obligation to consummate the Closing, provided that all of the conditions to Closing set forth in this Agreement have been satisfied or waived by the EagleRock Entities or Contributor(s) seeking to enforce this Agreement (other than the covenants in <u>Section</u> <u>4.02</u>, which the EagleRock Entities or Contributor(s) seeking enforcement would be otherwise prepared to satisfy), then the Parties acknowledge and agree that the EagleRock Entity or Contributor(s) seeking to enforce this Agreement shall be entitled, at its election, to specifically enforce the performance of the relevant Contributor(s) obligation to consummate the Closing as required hereunder, including by seeking injunctive relief. Each of the Contributors agrees that it will not oppose the granting of an injunction, specific performance or other equitable relief when expressly available pursuant to the terms of this Agreement on the basis that (i) there is an adequate remedy (or remedies) at law or (ii) an award of specific performance is not an appropriate remedy for any reason in equity or at law, other than on the basis that such remedy is not expressly available pursuant to the terms of this Agreement, including if one of the conditions to Closing set forth in this Agreement has not been satisfied or waived by the Party seeking to enforce this Agreement (other than the covenants in <u>Section</u> <u>4.02</u>, which the EagleRock Entity or Contributor seeking enforcement would be otherwise prepared to satisfy). Any EagleRock Entity or Contributor seeking an injunction or injunctions to prevent breaches or threatened breaches of this Agreement when expressly available pursuant to the terms of this Agreement and to enforce specifically the terms and provisions of this Agreement when expressly available pursuant to the terms of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.

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**ARTICLE VI** 

SURVIVAL; DAMAGES LIMITATIONS

Section 6.01 **<u>Survival</u>**. Each Party's representations and warranties made in this Agreement shall terminate on the date that is 90 days after the date on which PubCo files its first Annual Report on Form 10-K with the U.S. Securities and Exchange Commission, except for (a) the Fundamental Contributor Representations and Warranties, which shall terminate on the date that is 24 months after the Closing Date and (b) those representations and warranties made in <u>Section</u> <u>2.09</u>, which shall terminate on the date that is 90 days after the applicable statute of limitations closes the taxable period to which the subject Taxes relate. Each covenant and agreement in this Agreement shall survive until the date such covenant or agreement is to be performed in accordance with the terms thereof. No Claim or Action arising out of the inaccuracy or breach of any representation or warranty of any Party may be made following the termination of the applicable survival period; <u>provided</u>, <u>however</u>, that the obligations of such Party to indemnify, defend and hold harmless shall not terminate with respect to any Claim made against such Party to be indemnified before the expiration of the applicable survival period in accordance with the provisions of this Agreement.

Section 6.02 **<u>Damages Waiver</u>**. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IN NO EVENT SHALL ANY PARTY BE LIABLE OR RESPONSIBLE TO ANY OTHER PARTY OR ITS AFFILIATES FOR ANY EXEMPLARY, SPECIAL, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES OR FOR LOSS OF PROFITS OR REVENUES INCURRED THEREBY THAT ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHETHER SUCH CLAIM ARISES UNDER OR RESULTS FROM CONTRACT, TORT OR STRICT LIABILITY, EXCEPT TO THE EXTENT ANY PARTY SUFFERS 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.

**ARTICLE VII** 

OBLIGATIONS TO INDEMNIFY

Section 7.01 **<u>Contributors</u><u>'</u><u> </u><u>Indemnification Obligations</u>**. Subject to <u>Article VI</u> and the limitations contained in this <u>Article VII</u>, from and after the Closing Date, each Contributor shall, severally and not jointly, indemnify, defend, and hold the EagleRock Entities and their respective subsidiaries (including the Contributed Entities), and each of their respective Representatives, successors and assigns (collectively, but for the avoidance of doubt excluding each Contributor, the "**<u>PubCo Indemnified Persons</u>**") harmless from all Damages relating to, resulting from or arising out of: (i) a breach or inaccuracy of such Contributor's representations and warranties set forth in <u>Article II</u>, (ii) any Ancillary Title Documents executed and delivered by such Contributor or such Contributor's Contributed Entities or the inability of the Title Company to issue a title policy with respect to such Contributor's real property interests in accordance with <u>Section</u> <u>3.01(b)</u> and (iii) any of such Contributor's Contributor Taxes. The obligations to indemnify, defend, and hold harmless are binding on each Contributor and its successors, assigns, heirs and legal representatives, as applicable.

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Section 7.02 **<u>Claims Process</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that: (a) any Action is asserted or instituted by any Person against a PubCo Indemnified Person which could give rise to an indemnity obligation of any Contributor (the "**<u>Indemnifying Person</u>**") (such Action, a "**<u>Third Party Claim</u>**") or (b) any PubCo Indemnified Person shall have a claim for Damages under this Agreement which does not involve a Third Party Claim (such claim, a "**<u>Direct Claim</u>**", and together with Third Party Claims, "**<u>Claims</u>**"), such PubCo Indemnified Person shall, promptly after it becomes aware of a Third Party Claim, or facts supporting a Direct Claim, provide written notice to the Indemnifying Person specifying the nature of such Action and the amount or estimated amount thereof (which amount or estimated amount shall not be conclusive of the final amount, if any, of the Damages involved) (a "**<u>Claim Notice</u>**"), together with copies of all notices and documents served on or received by such PubCo Indemnified Person in the case of a Third Party Claim; <u>provided</u>, <u>however</u>, that a delay in notifying the Indemnifying Person shall not relieve the Indemnifying Person of its obligations under this <u>Article</u> <u>VII</u> except to the extent that (and only to the extent that) the Indemnifying Person shall have been materially prejudiced by such failure to give such notice, in which case the Indemnifying Person shall be relieved of such obligations to the extent of such material prejudice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Third Party Claim, the Indemnifying Person shall have the right to defend the PubCo Indemnified Person against such Third Party Claim and be entitled to appoint counsel of the Indemnifying Person's choice at the expense of the Indemnifying Person to represent the PubCo Indemnified Person in connection with such Action (in which case the Indemnifying Person shall not thereafter be responsible for the fees and expenses of any separate counsel retained by such PubCo Indemnified Person or any other costs or expenses with respect to the defense of a Third Party Claim except as set forth below); <u>provided</u>, <u>however</u>, that such counsel is acceptable to such PubCo Indemnified Person, acting reasonably. If requested by the Indemnifying Person, such PubCo Indemnified Person agrees to cooperate with the Indemnifying Person and its counsel in defending and contesting any Action which the Indemnifying Person defends, or, if appropriate and related to the Action in question, in making any counterclaim against the Person asserting the Third Party Claim, or any cross-complaint against any Person. No Third Party Claim may be settled or compromised (i) by the PubCo Indemnified Person without the prior written consent of the Indemnifying Person or (ii) by the Indemnifying Person without the prior written consent of such PubCo Indemnified Person (which consent shall not be unreasonably withheld or delayed), unless, in the case of <u>clause</u> <u>(ii)</u>, the sole relief provided is monetary damages that are paid in full by the Indemnifying Person and the Person asserting the Third Party Claim and the Indemnifying Person executes a full release of claims in favor of such PubCo Indemnified Persons in respect of such Third Party Claim. In the event any PubCo Indemnified Person settles or compromises or consents to the entry of any judgment with respect to any Third Party Claim without the prior written consent of the Indemnifying Person, such PubCo Indemnified Person shall be deemed to have waived all rights against the Indemnifying Person for indemnification under this <u>Article VII</u> with respect to such Third Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of a Direct Claim, the Indemnifying Person shall notify the PubCo Indemnified Person within thirty (30) days of receipt of a Claim Notice whether the Indemnifying Person disputes such claim. From and after the delivery of a Claim Notice, at the reasonable request of the Indemnifying Person, such PubCo Indemnified Person shall grant the Indemnifying Person and its Representatives reasonable access to the books, records, employees, Representatives and properties of such PubCo Indemnified Person to the extent reasonably related to the subject matter of the Claim Notice.

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Section 7.03 **<u>Limitations on Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything in <u>Section</u> <u>7.01</u> to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Contributor shall be required to indemnify any PubCo Indemnified Person pursuant to, and no Contributor shall have any Liability under, <u>Section</u> <u>7.01(i)</u> if, with respect to any individual Damage item or series of related Damage items, such item or series of items is in the aggregate less than the dollar amount set forth adjacent to such Contributor's name in <u>Schedule 7.03(a)(i)</u> (a "**<u>Minor Claim</u>**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Contributor shall be required to indemnify any PubCo Indemnified Person pursuant to, and no Contributor shall have any Liability under, <u>Section</u> <u>7.01(i)</u> until the aggregate amount of all Damages for which such Contributor would be liable under <u>Section</u> <u>7.01(i)</u> (excluding Minor Claims) exceeds the dollar amount set forth adjacent to such Contributor's name in <u>Schedule 7.03(a)(ii)</u> (the "**<u>General Indemnification Deductible</u>**"), in which case, subject to <u>Section</u> <u>7.03(a)(iii)</u>, such Contributor shall be liable for all Damages (other than Damages in respect of Minor Claims) in excess of the General Indemnification Deductible; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Contributor shall be required to indemnify any PubCo Indemnified Person pursuant to, and no Contributor shall have any Liability under, <u>Section</u> <u>7.01(i)</u> once the aggregate of all payments made by or on behalf of such Contributor in respect of its indemnification obligations under <u>Section</u> <u>7.01(i)</u> equals the dollar amount set forth adjacent to such Contributor's name in <u>Schedule 7.03(a)(iii)</u> (the "**<u>General Indemnification Cap</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding the foregoing, the limitations set forth in <u>Section</u> <u>7.03(a)(i)</u> through <u>Section</u> <u>7.03(a)(iii)</u> shall not apply to any indemnification obligation of a Contributor under <u>Section</u> <u>7.01(i)</u> for a breach or inaccuracy of any of such Contributor's Fundamental Contributor Representations and Warranties, but no Contributor shall be required to indemnify any PubCo Indemnified Person pursuant to, and no Contributor shall have any liability under <u>Section</u> <u>7.01(i)</u> once the aggregate of all payments made by or on behalf of such Contributor in respect of its indemnification obligations under <u>Section</u> <u>7.01(i)</u> equals the dollar amount set forth adjacent to such Contributor's name in <u>Schedule 7.03(a)(iv)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The indemnification limitations set forth in the foregoing <u>clause (a)</u> of this <u>Section</u> <u>7.03</u> shall not apply with respect to any Damages relating to, resulting from or arising out of (i) Contributor Taxes, (ii) the title matters indemnifiable pursuant to <u>Section</u> <u>7.01(ii)</u> or (iii) Fraud by any Contributor or its, as applicable, respective Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The amount which any Contributor is or may be required to pay to any PubCo Indemnified Person pursuant to this <u>Article VII</u> shall be reduced (retroactively, if necessary) by any insurance proceeds or other amounts recovered by or on behalf of such PubCo Indemnified Person related to the applicable Damages. If a PubCo Indemnified Person shall have received the payment required by this Agreement from the relevant Contributor in respect of such Damages and shall subsequently receive insurance proceeds or other amounts in respect of such Damages, then such PubCo Indemnified Person shall promptly repay to such Contributor a sum equal to the amount of such insurance proceeds or other amounts actually received up to the amount received from such Contributor less any costs incurred to recover such proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Damages shall be determined without duplication of recovery under other provisions of this Agreement or any other Transaction Document.

Section 7.04 **<u>Satisfaction of Claims</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An Indemnifying Person shall be required to make any required indemnity payment to the applicable PubCo Indemnified Person within two (2) Business Days of such PubCo Indemnified Person and the Indemnifying Person agreeing such amount is due or upon a final adjudication determined by a court of competent jurisdiction that such amount is due (either, a "**<u>Final Determination</u>**"). Following a Final Determination, any amounts that an Indemnifying Person is obligated to pay to a PubCo Indemnified Person in accordance with <u>Section</u> <u>7.01</u> shall be paid by the Indemnifying Person, at the sole option of such Indemnifying Person, (x) in cash by wire transfer of immediately available funds to an account designated in writing by such PubCo Indemnified Person, or (y) by the cancellation by PubCo of a number of Class B Shares of PubCo (and by OpCo of a corresponding number of OpCo Units) held by such Indemnifying Person the aggregate value of which (based on the closing price of PubCo's Class A Shares on the date of the Final Determination) is equal to the amount of the relevant Damages, with such Damages to be borne severally by such Indemnifying Person (and not jointly with any other Contributor); *provided*, *however*, that any amounts that an Indemnifying Person is obligated to pay a PubCo Indemnified Person that is not the EagleRock Entities in accordance with <u>Section</u> <u>7.01</u> shall at the request of the PubCo Indemnified Person be paid by the relevant Indemnifying Person pursuant to <u>clause (x)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the avoidance of doubt, if a Claim for indemnification is made by a PubCo Indemnified Person during the applicable survival period pursuant to <u>Section</u> <u>6.01</u>, and by the end of the applicable survival period there remain any amounts in respect of such Claim that have not yet been finally determined, such Claim shall continue to remain subject to this <u>Section</u> <u>7.04</u> and the other terms of this Agreement.

Section 7.05 **<u>Exclusive Remedy</u>**. EXCEPT (A) PURSUANT TO THIS <u>ARTICLE</u> <u>VII</u> OR (B) IN THE CASE OF FRAUD ON THE PART OF ANY PARTY, BUT OTHERWISE NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, IF THE CLOSING OCCURS, NO PARTY SHALL HAVE ANY LIABILITY, AND NO PARTY SHALL MAKE ANY CLAIM, FOR ANY LOSS (AND THE PARTIES HEREBY WAIVE ANY RIGHT OF CONTRIBUTION AGAINST EACH OTHER AND THEIR RESPECTIVE AFFILIATES), UNDER, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, WHETHER BASED IN CONTRACT, TORT, STRICT LIABILITY, COMMON LAW, OTHER LAWS OR OTHERWISE. FOR THE AVOIDANCE OF DOUBT, THIS <u>SECTION</u> <u>7.05</u> SHALL APPLY SOLELY TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

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**ARTICLE VIII** 

MISCELLANEOUS

Section 8.01 **<u>Notices</u>**. Except as otherwise expressly provided in this Agreement to the contrary, any notice required or permitted to be given under this Agreement shall be in writing (including facsimile or similar electronic transmission) and sent to the address of the Party set forth on the signature pages hereto, or to such other more recent address of which the sending Party actually has received written notice. Each such notice, demand or other communication shall be effective, if given by registered or certified mail, return receipt requested, as of the third (3<sup>rd</sup>) day after the date indicated on the mailing certificate, or if given by facsimile or other electronic transmission, upon oral or written confirmation of receipt.

Section 8.02 **<u>Interpretation</u>**. All references in this Agreement to Exhibits, Schedules, Annexes, Articles, Sections, subsections, clauses and other subdivisions refer to the corresponding Exhibits, Schedules, Annexes, Articles, Sections, subsections, clauses and other subdivisions of or to this Agreement unless expressly provided otherwise. Titles appearing at the beginning of any Exhibits, Schedules, Annexes, Articles, Sections, subsections, clauses and 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," "herein," "hereby," "hereunder" and "hereof," and words of similar import, refer to this Agreement as a whole and not to any particular Article, Section, subsection, clause or other subdivision unless expressly so limited. The words "this Article," "this Section," "this subsection," "this clause," and words of similar import, refer only to the Article, Section, subsection and clause hereof in which such words occur. The word "including" (in its various forms) means including without limitation. All references to "$" or "dollars" shall be deemed references to United States dollars. Each accounting term not defined herein will have the meaning given to it under United States generally accepted accounting principles as interpreted as of the date of this Agreement. Unless expressly provided to the contrary, the word "or" is not exclusive. 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. Annexes, Exhibits and Schedules referred to herein are attached to and by this reference incorporated herein for all purposes. Reference herein to any federal, state, local or foreign Law shall be deemed to also refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The words "day" or "days" shall mean calendar day, unless denoted as a Business Day. The word "or" is meant to be inclusive and means "and/or".

Section 8.03 **<u>Dispute Resolution</u>**. With respect to any Proceeding arising out of or relating to this Agreement, each of the Parties hereby irrevocably (a) submits to the exclusive jurisdiction of the Business Court in the Eleventh Business Court Division of the State of Texas and the United States District Court for the Southern District of Texas and the appellate courts therefrom (the "Selected Courts") and waives any objection to venue being laid in the Selected Courts whether based on the grounds of forum non conveniens or otherwise and hereby agrees not to commence any such Proceeding other than before one of the Selected Courts; *provided*,

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 *however*, that a Party may commence any Proceeding in a court other than a Selected Court solely for the purpose of enforcing an order or judgment issued by one of the Selected Courts; (b) consents, to the fullest extent permitted by law, to service of process in any Proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, or by recognized international express carrier or delivery service, to such Party's address referred to in <u>Section</u> <u>8.01</u> hereof; *provided*, *however*, that nothing herein shall affect the right of any Party to serve process in any other manner permitted by law; and (c) TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREES THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT AND TO HAVE ALL MATTERS RELATING TO THIS AGREEMENT BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

Section 8.04 **<u>Defined Terms</u>**. Capitalized terms used and not otherwise defined herein shall have the meaning assigned thereto in <u>Annex A</u> attached hereto.

Section 8.05 **<u>Further Assurances</u>**. Each Party shall take such acts and execute and deliver such documents as may be reasonably required to effectuate the purposes of this Agreement.

Section 8.06 **<u>Governing Law</u>**. This Agreement shall be governed by and construed under the laws of the State of Texas, without regard to, or giving effect to, the application of Texas choice of law rules.

Section 8.07 **<u>Entire Agreement</u>**. This Agreement (including the Schedules, Exhibits and Disclosure Schedules to this Agreement, which are integrated into and are part of this Agreement), along with the other Transaction Documents, represents the entire agreement of the Parties with respect to the subject matter hereof and supersedes all other agreements, oral or written with respect to such subject matter.

Section 8.08 **<u>Successors and Assigns</u>**. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs, legal representatives and permitted assigns; *provided*, *however*, that no Party may assign this Agreement (or any rights, benefits or obligations hereunder) without the prior written consent of all other Parties.

Section 8.09 **<u>Amendments</u>**. Except as otherwise provided herein, no supplement, amendment, alteration, modification, waiver or termination of this Agreement shall be binding unless executed in writing by the Parties.

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Section 8.10 **<u>Severability</u>**. If any provisions of this Agreement, in whole or in part, are held invalid as a matter of Law, it is the Parties' intent that such holding not affect the other portions of this Agreement, and that such portions that are not invalid be given effect without the invalid portion.

Section 8.11 **<u>Counterparts</u>**. This Agreement may be executed and delivered in multiple counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by electronic executed signature pages, which shall have the same force and effect as original executed signature pages.

Section 8.12 **<u>Compliance with Laws and Regulations</u>**. This Agreement shall be subject to all applicable Laws and each Party shall perform its obligations hereunder in accordance with all applicable Laws. Nothing contained herein shall be construed so as to require either Party to perform such acts (or to forego performing any acts) that would cause such Party to violate any such applicable Laws.

Section 8.13 **<u>No Third Party Beneficiaries</u>**. Nothing in this Agreement, express or implied, is intended to confer upon anyone, other than the Parties and their respective successors and permitted assigns, any rights or remedies under or by reason of this Agreement or to constitute any Person as a third party beneficiary of this Agreement.

Section 8.14 **<u>Time of Essence</u>**. Time is of the essence with respect to the performance by each Party of its obligations under this Agreement.

Section 8.15 **<u>Waiver</u>**. Except as otherwise provided for in this Agreement, a waiver of any of the provisions of this Agreement shall not be deemed or shall not constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver, unless otherwise expressly provided.

Section 8.16 **<u>Lea</u> <u>& Eddy Representation</u>**. Lea & Eddy represents and warrants to each other Party, as of the date of this Agreement and the Closing Date, as set forth on <u>Schedule 8.16</u>.

***[****Signature Page Follows****]*** 

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**IN WITNESS WHEREOF**, the parties have caused this Contribution and Assignment Agreement to be signed and delivered as of the date first above written.

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*Signature Page* 

*Contribution and Assignment Agreement* 

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**<u>ANNEX A</u>**

**DEFINITIONS** 

"**<u>Abyss</u>**" has the meaning given that term in the preamble.

"**<u>Abyss Contributed Assets</u>**" has the meaning given to that term in the recitals.

"**<u>Abyss HoldCo</u>**" has the meaning given to that term in the recitals.

"**<u>Abyss HoldCo Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>Abyss Merger</u>**" has the meaning given to that term in the recitals.

"**<u>Abyss Merger Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Abyss OpCo Units</u>**" has the meaning given that term in the recitals.

"**<u>Action</u>**" means any action, claim, complaint, charge, suit, investigation, petition, arbitral proceeding, whether civil, criminal or administrative, in Law or in equity.

"**<u>Additional Flow Easements</u>**" has the meaning given to that term in <u>Section</u> <u>3.11</u>.

"**<u>Affiliates</u>**" means, with respect to any relevant Person at the relevant time, any other Person that directly or indirectly Controls, is Controlled by, or is under common Control with, such relevant Person in question; *provided* that, for purposes of this Agreement, none of the Contributors shall be deemed to be Affiliates of the EagleRock Entities and each of their respective Affiliates. For purposes of this Agreement, no party to this Agreement shall be deemed to be an Affiliate of another party to this Agreement solely by reason of the execution and delivery of this Agreement.

"**<u>Agreed Tax Treatment</u>**" has the meaning given to it in <u>Section</u> <u>3.06(f)</u>.

"**<u>Agreement</u>**" has the meaning given to that term in the preamble.

"**<u>Ancillary Title Documents</u>**" has the meaning given to it in <u>Section</u> <u>3.01(b)</u>.

"**<u>Books and Records</u>**" means all books and records directly related to the operation and maintenance of a Contributed Asset, including all applicable accounting-related information, and all information with respect thereto required by Law to be maintained by the owner or operator of such Contributed Asset, including all files, correspondence, memoranda, maps, surveys, plats, customer lists, supplier lists and personnel records relating thereto.

"**<u>Breaching Party</u>**" has the meaning given to it in <u>Section</u> <u>5.02(b)</u>.

"**<u>Business Day</u>**" means Monday through Friday of each week, except that a legal holiday recognized as such by the U.S. federal government or the government of the State of Texas shall not be regarded as a Business Day.

Annex A - 1

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"**<u>Cactus</u>**" has the meaning given to that term in the preamble.

"**<u>Cactus Contributed Assets</u>**" has the meaning given to that term in the recitals.

"**<u>Cactus HoldCo</u>**" has the meaning given to that term in the recitals.

"**<u>Cactus HoldCo Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>Cactus Merger</u>**" has the meaning given to that term in the recitals.

"**<u>Cactus Merger Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Cactus OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Cash Distribution</u>**" means .

"**<u>Claim</u>**" has the meaning given to that term in <u>Section</u> <u>7.02(a)</u>.

"**<u>Claim Notice</u>**" has the meaning given to that term in <u>Section</u> <u>7.02(a)</u>.

"**<u>Class</u> <u>A Shares</u>**" has the meaning given to that term in the recitals.

"**<u>Class</u> <u>B Shares</u>**" has the meaning given to that term in the recitals.

"**<u>Closing</u>**" means the closing of all of the transactions contemplated by this Agreement that are to occur at the Closing.

"**<u>Closing Date</u>**" has the meaning given to that term in <u>Section</u> <u>4.03</u>.

"**<u>Coats</u>**" has the meaning given to that term in the preamble.

"**<u>Coats Contributed Assets</u>**" has the meaning given to that term in the recitals.

"**<u>Coats HoldCo Contribution</u>**" has the meaning given that term in the recitals.

"**<u>Coats OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Coats OWL HoldCo Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>Code</u>**" means the Internal Revenue Code of 1986 and any successor statute, as amended from time to time.

"**<u>Contract</u>**" means any contract, agreement, arrangement, indenture, note, bond, loan, instrument, lease, purchase order, conditional sale contract or mortgage.

"**<u>Contributed Assets</u>**" means, collectively, the Dehlinger Contributed Assets, the Coats Contributed Assets, the Abyss Contributed Assets, the Cactus Contributed Assets, the Shallow Valley Contributed Assets, OWL Contributed Assets, the Lea & Eddy Contributed Assets and the Flow Contributed Assets. For the avoidance of doubt, each Contributed Entity of a Contributor and all of the assets of and Contributed Interests in such Contributed Entity shall, in each case, be Contributed Assets of such Contributor.

Annex A - 2

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"**<u>Contributed Entities</u>**" means, collectively, the Lea & Eddy Contributed Entities, Abyss HoldCo, Cactus HoldCo, Shallow Valley HoldCo, OWL HoldCo, MD HoldCo and Flow. Each of the foregoing is a "**<u>Contributed Entity</u>**". When such term is used in <u>Article II</u>, it shall also include any subsidiaries of, or other Person in which any such entity owns an interest.

"**<u>Contributed Interests</u>**" means the equity interests in each of the Contributed Entities.

"**<u>Contributor OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Contributor Tax Proceeding</u>**" has the meaning given to that term in <u>Section</u> <u>3.06(e)</u>.

"**<u>Contributor Taxes</u>**" means, without duplication, all: (a) Taxes imposed on or with respect to the Contributors; (b) Taxes imposed on or with respect to the Contributed Assets or for which the Contributed Entities may otherwise be liable with respect to any Pre-Closing Tax Period (in the case of a Straddle Period, determined in accordance with <u>Section</u> <u>3.06(c)</u>) or otherwise with respect to any of the transactions contemplated by the Transaction Documents; (c) to the extent relating to Taxes, resulting from any breach of any representation, warranty or covenant set forth in this Agreement (determined without regard to any materiality or knowledge qualifiers or any scheduled items); (d) Taxes of any consolidated, combined, unitary, or similar group (or any member thereof) of which any Contributed Entity (or any predecessor thereof) is or was a member on or prior to the Closing Date; (e) Taxes of any other Person for which any Contributed Entity is or has been liable as a transferee or successor, by Contract or otherwise, relating to any events or transactions occurring prior to the Closing; (f) withholding Taxes, Transfer Taxes (except as set forth in <u>Section</u> <u>3.06(a)</u>), or any similar Taxes, in each case, owed as a result of the transactions contemplated by the Transaction Documents, including any payments made to the Contributors pursuant to this Agreement.

"**<u>Contributors</u>**" has the meaning given to that term in the preamble.

"**<u>Control</u>**," "**<u>Controlling</u>**", or "**<u>Controlled by</u>**" means the power to, directly or indirectly, direct a Person's management and policies, whether through the ownership of voting interests, having Contractual rights or other means.

"**<u>Damages</u>**" means any and all losses, Taxes, Liabilities, obligations (including indemnification and defense obligations), damages, lawsuits, deficiencies, claims, demands, costs and expenses (whether or not arising out of Claims by a Third Party) of any kind whatsoever, including interest, penalties, reasonable legal and other consultant or expert fees and all amounts paid in investigation, defense or settlement of any of the foregoing.

"**<u>Dehlinger</u>**" has the meaning given to that term in the preamble.

"**<u>Dehlinger Contributed Assets</u>**" has the meaning given to that term in the recitals.

"**<u>Dehlinger MD HoldCo Contribution</u>**" has the meaning given to that term in the recitals.

Annex A - 3

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"**<u>Dehlinger OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Designated Committee</u>**" has the meaning given to that term in <u>Section</u> <u>3.09</u>.

"**<u>Designated Committee IPO Termination</u>**" has the meaning given to that term in <u>Section</u> <u>3.09</u>.

"**<u>Designated Committee Member</u>**" has the meaning given to that term in <u>Section</u> <u>3.09</u>.

"**<u>Direct Claim</u>**" has the meaning given to that term in <u>Section</u> <u>7.02(a)</u>.

"**<u>Disclosure Schedules</u>**" means any of the Lea & Eddy Disclosure Schedules, Double Eagle Disclosure Schedules or Shallow Valley Disclosure Schedules, collectively or individually, as the context requires.

"**<u>Double Eagle</u>**" has the meaning given to that term in the preamble.

"**<u>Double Eagle OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Double Eagle PubCo Cash Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>EagleRock Entity</u>**" or "**<u>EagleRock Entities</u>**" means PubCo or OpCo, as context requires.

"**<u>Encumbrance</u>**" means any lien, pledge, option, charge, levy, security interest, deed of trust, attachment, right of first option, right of first refusal or similar restriction, mortgage, right-of-way, easement, encroachment, building or use restriction, conditional sales arrangement, common usage arrangement or other similar encumbrance, assessment, claim, covenant, condition or other similar imperfection or right of third parties affecting title, whether voluntarily incurred or arising by operation of Law, including any agreement to give any of the foregoing in the future, and any contingent sale or other title retention agreement or lease in the nature thereof.

"**<u>Enforceability Exceptions</u>**" has the meaning given to that term in <u>Section</u> <u>2.02(a)</u>.

"**<u>Environmental Laws</u>**" means any and all Laws relating to the protection of the environment or the use, treatment, storage, transportation, disposal, or exposure to Hazardous Substances, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §§ 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901, et seq., the Toxic Substances Control Act, as amended, 15 U.S.C. §§ 2601 et seq., the Clean Air Act, as amended, 42 U.S.C. §§ 7401, et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251, et seq., the Oil Pollution Act, 33 U.S.C. §§ 2701 et seq., the Federal Hazardous Materials Transportation Act, 45 U.S.C. §§ 5101, et seq., any amendments to the foregoing, and any similar federal, state or local laws, statutes, ordinances, rules, decrees, orders or regulations.

"**<u>Environmental Permits</u>**" means those Permits and any certificates, orders, waivers, variances or other approvals and licenses required by any Governmental Authority under any applicable Environmental Law that are in the name of the Contributors, related solely to the use and operation of the Contributed Assets.

Annex A - 4

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"**<u>Equity Interests</u>**" has the meaning given to that term in <u>Section</u> <u>2.02(c)</u>.

"**<u>Final Determination</u>**" has the meaning given to that term in <u>Section</u> <u>7.04(a)</u>.

"**<u>Flow</u>**" has the meaning given to that term in the recitals.

"**<u>Flow Contributed Assets</u>**" means all of the assets of Flow.

"**<u>Flow Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>Form of Section</u> <u>1.01 Contribution Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Form of Section</u> <u>1.03 Contribution Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Fraud</u>**" means fraud by a Party in connection with any representation or warranty by the Party in <u>Article II</u> of this Agreement. Fraud shall not include any equitable fraud, promissory fraud, negligent misrepresentation or any other fraud or torts (including any claim for fraud) based on constructive or imputed knowledge, negligent misrepresentation, recklessness, or a similar theory under applicable Law.

"**<u>Fundamental Contributor Representations and Warranties</u>**" means the representations and warranties set forth in <u>Section</u> <u>2.01</u> (*Organization and Qualification*), <u>Section</u> <u>2.02</u> (*Authority; Capitalization*), <u>Section</u> <u>2.05</u> (*No Brokers Fees*) and <u>Section</u> <u>2.07</u> (*Non-Contravention*).

"**<u>GAAP</u>**" means the U.S. generally accepted accounting principles, as consistently applied throughout the relevant period.

"**<u>General Indemnification Cap</u>**" has the meaning given to that term in <u>Section</u> <u>7.03(a)(iii)</u>.

"**<u>General Indemnification Deductible</u>**" has the meaning given to that term in <u>Section</u> <u>7.03(a)(ii)</u>.

"**<u>Governmental Authority</u>**" means (a) any federal, state, local, municipal, tribal or other government; (b) any governmental, regulatory or administrative agency, commission or body exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power; and (c) any court or governmental tribunal, including any tribal authority having or asserting jurisdiction.

"**<u>Hazardous Substances</u>**" means any materials, substances, or wastes that are listed, regulated, classified, or defined as "hazardous substances," "hazardous wastes," "hazardous materials," "hazardous constituents," "restricted hazardous materials," "extremely hazardous substances," "toxic substances," "contaminants," "pollutants," "toxic pollutants" or words of similar meaning under applicable Environmental Laws due to their dangerous or deleterious properties or characteristics, and shall include petroleum hydrocarbons, petroleum products, asbestos, and polychlorinated biphenyls.

Annex A - 5

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"**<u>HoldCo Contributions</u>**" has the meaning given to that term in the recitals.

"**<u>HSR Act</u>**" has the meaning given that term in <u>Section</u> <u>3.02(a)</u>.

"**<u>Hydrosource Logistics</u>**" means Hydrosource Logistics, LLC, a Texas limited liability company.

"**<u>Indemnifying Person</u>**" has the meaning given to that term in <u>Section</u> <u>7.02(a)</u>.

"**<u>IPO</u>**" has the meaning given to that term in the recitals.

"**<u>IPO Cash Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>IRS</u>**" means the United States Internal Revenue Service.

"**<u>Laws</u>**" means all applicable laws, rules, regulations, decrees, statutes, acts, ordinances, rules, treaties, codes, regulations, rulings, proclamations, resolutions, judgments or orders of any domestic, foreign or international Governmental Authority or any subdivision thereof.

"**<u>Lea</u> <u>& Eddy</u>**" has the meaning given to that term in the preamble.

"**<u>Lea</u> <u>& Eddy Contributed Assets</u>**" means all of the assets of the Lea & Eddy Contributed Entities.

"**<u>Lea</u> <u>& Eddy Contributed Entities</u>**" has the meaning set forth in the recitals.

"**<u>Lea</u> <u>& Eddy OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Lea</u> <u>& Eddy Subsidiaries Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>Lea</u> <u>& Eddy Warrants</u>**" has the meaning given to that term in the recitals.

"**<u>Liability</u>**" means any liability or obligation, whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due.

"**<u>Material Adverse Change</u>**" means, with respect to a Contributor's Contributed Assets, as applicable, any change, circumstance or effect that (a) is or would reasonably be expected to be materially adverse to the use, ownership, operation, integrity or value of such Contributed Assets or (b) materially impedes or would reasonably be expected to impede the ability of a Party or an Affiliate of a Party to complete the transactions contemplated by this Agreement and the other Transaction Documents.

"**<u>Material Contracts</u>**" has the meaning given to that term in <u>Section</u> <u>2.10</u>.

Annex A - 6

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"**<u>MD HoldCo</u>**" has the meaning given to that term in the recitals.

"**<u>MD HoldCo Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>Merger Agreements</u>**" has the meaning given to that term in the recitals.

"**<u>Merger Sub 1</u>**" has the meaning given to that term in the recitals.

"**<u>Merger Sub 2</u>**" has the meaning given to that term in the recitals.

"**<u>Merger Sub 3</u>**" has the meaning given to that term in the recitals.

"**<u>Merger Subs</u>**" has the meaning given to that term in the recitals.

"**<u>Minor Claim</u>**" has the meaning given to that term in <u>Section</u> <u>7.03(a)(i)</u>.

"**<u>OpCo</u>**" has the meaning given to that term in the preamble.

"**<u>OpCo IPO Cash Contribution Units</u>**" has the meaning given to that term in the recitals.

"**<u>OpCo Unit Amount</u>**" means, with respect to a Contributor, the aggregate number of OpCo Units resulting from multiplying the total number of OpCo Units then outstanding (prior to giving effect to the issuance of OpCo Units to PubCo pursuant to the IPO) by the percentage set forth adjacent to such Contributor's name in <u>Schedule VIII</u>.

"**<u>OpCo Units</u>**" means limited liability company interests of OpCo.

"**<u>Order</u>**" means any judgment, order, settlement agreement, writ, injunction or decree of any Governmental Authority having jurisdiction over the matter.

"**<u>OWL</u>**" has the meaning given to that term in the preamble.

"**<u>OWL Contributed Assets</u>**" has the meaning given to that term in the recitals.

"**<u>OWL HoldCo</u>**" has the meaning given to that term in the recitals.

"**<u>OWL HoldCo Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>OWL Merger</u>**" has the meaning given to that term in the recitals.

"**<u>OWL Merger Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>OWL OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Parties</u>**" has the meaning given to that term in the preamble.

"**<u>Permit</u>**" means any license, permit, concession, franchise, authority, consent, authorization, registration or approval granted by any Governmental Authority.

Annex A - 7

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"**<u>Permitted Encumbrances</u>**" means (a) carriers, warehouseman, mechanics, materialmen or other similar statutory Encumbrances which have arisen in the ordinary course of business and consistent with past practice and that secure amounts that are not yet due and payable; (b) with respect to real property interests, covenants, conditions, restrictions, easements, encroachments, and similar or encumbrances of record that do not, individually or in the aggregate, materially interfere with the current or planned occupancy, ownership or operation of the applicable Contributed Assets (but in all events, excluding any pledge, charge, levy, security interest, mortgage, deed of trust, or other monetary lien or Encumbrance); (c) with respect to real property interests, zoning, building codes and other land use laws regulating the use or occupancy of the real property or the activities conducted thereon which are imposed by a Governmental Authority that do not, individually or in the aggregate, materially interfere with the current or planned occupancy, ownership or operation of the applicable Contributed Assets; (d) Encumbrances created pursuant to the Transaction Documents and (e) liens for Taxes or assessments not yet due or delinquent, or, if delinquent, that are being contested in good faith in the normal course of business. The term "**<u>Title Policy Permitted Encumbrances</u>**" refers to the Permitted Encumbrances described in clauses (b) – (e) above only.

"**<u>Person</u>**" means any individual or entity, including any corporation, limited liability company, partnership (general or limited), joint venture, association, joint stock company, trust, unincorporated organization or government (including any board, agency, political subdivision or other body thereof).

"**<u>Pre-Closing Tax Period</u>**" means any taxable period (or portion of a Straddle Period) ending on or before the Closing Date.

"**<u>Proceedings</u>**" means any Actions, causes of action, written demands, written claims, suits, investigations, any proceeding (including any bankruptcy, civil, criminal, administrative, judicial, investigative or appellate proceeding), litigation, arbitration and appeals by or before any Governmental Authority or arbitrator.

"**<u>PubCo</u>**" has the meaning given to that term in the preamble.

"**<u>PubCo Cash Contributions</u>**" has the meaning given to that term in the recitals.

"**<u>PubCo OpCo Cash Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>PubCo Indemnified Persons</u>**" has the meaning given to that term in <u>Section</u> <u>7.01</u>.

"**<u>PubCo S-1</u>**" has the meaning given to that term in <u>Section</u> <u>2.14</u>.

"**<u>PubCo Shares</u>**" has the meaning given to that term in the recitals.

"**<u>PubCo Shares Amount</u>**" means, with respect to a Contributor, the aggregate number of Class B Shares resulting from multiplying the total number of Class B Shares then outstanding (prior to giving effect to the issuance of Class A Shares or Class B Shares to the public pursuant to the IPO) by the percentage set forth adjacent to such Contributor's name in <u>Schedule VIII</u>.

"**<u>Real Property Lease</u>**" has the meaning given to that term in <u>Section</u> <u>2.03(b)</u>.

Annex A - 8

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"**<u>Reimbursable Expenditures</u>**" has the meaning given to that term in <u>Section</u> <u>3.10(c)</u>.

"**<u>Release</u>**" means any release, spill, emission, discharge, leaking, pumping, pouring, placing, dumping, injection, disposal, or migration of Hazardous Substances into or through air, surface water, groundwater, land, or subsurface strata.

"**<u>Representatives</u>**" means any employee, agent, officer, director, manager, attorney, advisor, representative, equity holder, consultant, legal representative, heir, contractor, or subcontractor of a Person.

"**<u>Revenue Contract</u>**" has the meaning given to that term in <u>Section</u> <u>2.10</u>.

"**<u>Rights of Way</u>**" means the easements, right of way agreements, servitudes and those crossing licenses or Permits relating to the applicable Contributed Assets.

"**<u>Selected Courts</u>**" has the meaning given to that term in <u>Section</u> <u>8.03</u>.

"**<u>Shallow Valley</u>**" has the meaning given to that term in the preamble.

"**<u>Shallow Valley Contributed Assets</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley Entities Merger</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley Entities Merger Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley HoldCo</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley HoldCo Contribution</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley Merger</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley Merger Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley OpCo Units</u>**" has the meaning given to that term in the recitals.

"**<u>Shallow Valley Owners</u>**" has the meaning given to that term in the preamble.

"**<u>Straddle Period</u>**" means any Tax period that begins on or before and ends after the Closing Date.

"**<u>SWD Fixtures</u>**" has the meaning given to the term in <u>Section</u> <u>2.15(d)</u>.

"**<u>SWDs</u>**" has the meaning given to that term in <u>Section</u> <u>2.15(c)</u>.

"**<u>Tax</u>**" means any income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental, windfall profit, vehicle, airplane, boat, vessel or other title, capital stock, franchise, employees' income withholding, foreign or domestic withholding, social security, unemployment, disability, real property, personal property, sales, use,

Annex A - 9

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transfer, value added, alternative, add-on minimum and other tax, fee, assessment, levy, tariff, charge or duty of any kind whatsoever and any interest, penalty, addition or additional amount thereon imposed, assessed or collected by or under the authority of any Taxing Authority or payable under any tax-sharing agreement or any other contract.

"**<u>Tax Proceeding</u>**" means any audit, litigation or other Action with respect to Taxes for any Pre-Closing Tax Period.

"**<u>Tax Return</u>**" means any return, report, declaration, claim for refund or information return or statement required to be filed with a Taxing Authority with respect to Taxes, including any schedule or attachment thereto and any amendment thereof.

"**<u>Taxing Authority</u>**" means with respect to any Tax, the Governmental Authority or political subdivision thereof that imposes such Tax, and the agency (if any) charged with collection of such Tax for such entity or subdivision.

"**<u>TCW</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Debt</u>**" means the Tranche A Loans, as such term is defined in that certain Financing Agreement (as amended), by and between, among others, (i) the TCW Entities (as lenders), (ii) Lea & Eddy (as parent guarantor), and (iii) Desert Ram Holdings, LLC, Hydrosource Logistics, LLC, and Accelerated Water Resources, LLC (each as joint and several co-borrowers), dated as of , as amended from time to time. For the avoidance of doubt, the TCW Debt does not include the Fifth Amendment Term Loan (Tranche B) of such credit facility, and Hydrosource Logistics shall be released from any and all obligations under Tranche A upon the TCW Debt Assumption.

"**<u>TCW Debt Assumption</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Debt Assumption Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Blocker Class</u> <u>B Cancellation</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Blocker Merger Agreements</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Blocker Mergers</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Blockers</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Debt Repayment</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Entities</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Forfeited Warrants</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Remaining Warrants</u>**" has the meaning given to that term in the recitals.

"**<u>TCW Warrant Transactions</u>**" has the meaning given to that term in the recitals.

Annex A - 10

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"**<u>Third Party</u>**" means, with respect to a Party, any Person other than: (a) such Party; (b) such Party's Affiliates; (c) such Party's and its Affiliates' Representatives; and (d) such Party's heirs, legal representatives and permitted assigns.

"**<u>Third Party Claim</u>**" has the meaning given to that term in <u>Section</u> <u>7.02(a)</u>.

"**<u>Title Company</u>**" means Republic Title of Texas, Inc.

"**<u>Transaction Documents</u>**" means, collectively, this Agreement, the Underwriting Agreement, all commercial and IPO governance related agreements being entered into at the Closing, the documents set forth in <u>Section</u> <u>4.02</u> and each other agreement, instrument or certificate delivered pursuant hereto or thereto.

"**<u>Transaction Expenses Payment</u>**" has the meaning given to that term in the recitals.

"**<u>Transfer Taxes</u>**" has the meaning given to that term in <u>Section</u> <u>3.06(a)</u>.

"**<u>Treasury Regulations</u>**" means the final or temporary regulations promulgated by the United States Department of the Treasury under the Code.

"**<u>Underwriting Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Warrant Exercise Agreement</u>**" has the meaning given to that term in the recitals.

"**<u>Water Fixtures</u>**" has the meaning given to that term in <u>Section</u> <u>2.15(b)</u>.

"**<u>Water Wells</u>**" has the meaning given to that term in <u>Section</u> <u>2.15(a)</u>.

Annex A - 11

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**<u>EXHIBIT A</u>**

**FORM OF SECTION 1.01 CONTRIBUTION AGREEMENT** 

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**<u>EXHIBIT B</u>**

**FORM OF MERGER AGREEMENT** 

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**<u>EXHIBIT C</u>**

**FORM OF SECTION 1.03 CONTRIBUTION AGREEMENT** 

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**<u>EXHIBIT D</u>**

**FORM OF TCW DEBT ASSUMPTION AGREEMENT** 

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**<u>EXHIBIT E</u>**

**FORM OF SHALLOW VALLEY ENTITIES MERGER AGREEMENT** 

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**<u>SCHEDULE I</u>**

**DEHLINGER CONTRIBUTED ASSETS** 

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**<u>SCHEDULE II</u>**

**COATS CONTRIBUTED ASSETS** 

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**<u>SCHEDULE III</u>**

**ABYSS CONTRIBUTED ASSETS** 

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**<u>SCHEDULE IV</u>**

**CACTUS CONTRIBUTED ASSETS** 

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**<u>SCHEDULE V</u>**

**SHALLOW VALLEY CONTRIBUTED ASSETS** 

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**<u>SCHEDULE VI</u>**

**OWL CONTRIBUTED ASSETS** 

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**<u>SCHEDULE VII</u>**

**LEA & EDDY CONTRIBUTED ENTITIES** 

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**<u>SCHEDULE VIII</u>**

**CONTRIBUTOR PERCENTAGE INTERESTS** 

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**<u>SCHEDULE 3.01(a)</u>**

**ASSIGNED EMPLOYMENT AGREEMENTS** 

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**<u>SCHEDULE 3.10(c)</u>**

**REIMBURSABLE EXPENDITURES** 

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**<u>SCHEDULE 3.11</u>**

**ADDITIONAL FLOW EASEMENTS** 

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**<u>SCHEDULE 7.03(a)</u>**

**LIMITATIONS ON INDEMNIFICATION** 

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**<u>SCHEDULE 8.16</u>**

**LEA & EDDY REPRESENTATION**

## Exhibit 10.6

**Exhibit 10.6** 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE OF INFORMATION THAT EAGLEROCK LAND, LLC TREATS AS PRIVATE OR CONFIDENTIAL.

**FORM OF PRODUCED WATER RECYCLING RIGHTS AGREEMENT** 

This PRODUCED WATER RECYCLING RIGHTS AGREEMENT (this "**Agreement**") is made and entered into as of , 2026 (the "**Effective Date**") by and among EagleRock Land Operating, LLC, a Texas limited liability company ("**Landowner**"), Hydrosource Midstream, LLC, a Texas limited liability company ("**Hydrosource Midstream**") and Hydrosource Logistics, LLC, a Texas limited liability company ("**Hydrosource Logistics**", and collectively with Hydrosource Midstream, "**Operator**"). Landowner and Operator are sometimes referred to herein each individually as a "**Party**" and collectively as the "**Parties**". Capitalized terms used herein that are not defined in the other provisions of this Agreement have the respective meanings set forth in <u>Article</u> <u>I</u>.

**RECITALS:** 

WHEREAS, Landowner owns or controls the Lands, and Landowner desires to grant to Operator the exclusive right to utilize the surface of the Lands for the Water Rights, in each case, subject to the terms and conditions of this Agreement; and

WHEREAS, Operator desires to utilize the surface of the Lands for the Water Rights and to operate its business associated with such Water Rights, in each case, subject to the terms and conditions of this Agreement.

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the Parties hereby agree as follows:

**ARTICLE I** 

**DEFINITIONS; CONSTRUCTION** 

Section 1.1 **Definitions**. The following capitalized terms have the following respective meanings:

"**Additional Facility**" has the meaning set forth in <u>Section</u> <u>2.2(b)</u>.

"**Affected Lands**" has the meaning set forth in <u>Section</u> <u>2.1(f)</u>.

"**Affiliate**" unless otherwise provided herein, means (a) with respect to Landowner, only Landowner and its direct and indirect subsidiaries; and (b) with respect to Operator, only Operator and its direct and indirect subsidiaries (excluding Landowner and its direct and indirect subsidiaries); and the term "**Affiliated**" shall have a correlative meaning. For clarity, Landowner and Operator shall not be considered Affiliates for purposes of this Agreement or otherwise.

"**Agreement**" has the meaning set forth in the preamble.

"**Annual Cap**" has the meaning set forth in <u>Section</u> <u>2.11(a)</u>.

"**Approved Facility**" has the meaning set forth in <u>Section</u> <u>2.2(d)</u>.

"**Approved Storage Volume**" has the meaning set forth in <u>Section</u> <u>2.4(j)</u>.

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"**Barrel**" means forty-two (42) U.S. gallons.

"**Change in Control**" means, with respect to a Party, the occurrence of any of the following events: (a) the sale, transfer, or other disposition (in one transaction or a series of related transactions) of all or substantially all of such Party's assets to any Person; or (b) any merger, consolidation, or other transaction or series of related transactions as a result of which (i) any Person or group of Persons (other than the then-current equity holders of Operator or their Affiliates) becomes the beneficial owner, directly or indirectly, of more than fifty percent (50%) of the outstanding voting interests or equity securities of such Party, or (ii) such Party is merged or consolidated with or into another Person and, as a result of such merger or consolidation, the equity holders of such Party immediately prior to such transaction do not own more than fifty percent (50%) of the outstanding voting interests or equity securities of the surviving or resulting entity.

"**Change in Law**" means the occurrence of any of the following after the Effective Date: (a) the enactment of any new and applicable Law; (b) the modification of any existing applicable Law; or (c) a change in the interpretation or application of any applicable Law by a Governmental Authority having jurisdiction (including a change resulting from guidance documents or rulings issued by such Governmental Authority), in each such case of <u>clauses (a)</u> – <u>(c)</u> which has a material and adverse impact on the business and day to day operations of Landowner or its Affiliates.

"**Confidential Information**" means: (a) all information, materials and data provided by one Party or any of its Affiliates (the "**Disclosing Party**") to the other Party or any of its Affiliates (the "**Receiving Party**") under this Agreement or in connection with performance under this Agreement; and (b) the terms of this Agreement or any other Transaction Document. Confidential Information does not include (i) information that was in or comes into the lawful possession of the Receiving Party without confidentiality restrictions at the time of acquiring such information; (ii) information that is or becomes public knowledge without the fault of the Receiving Party; (iii) information that is or becomes available to the Receiving Party on an unrestricted basis from a source having a right to make such disclosure; or (iv) information that is developed by the Receiving Party independent of Confidential Information received hereunder.

"**Conflicting Dedication**" means any dedication, commitment, contract, or agreement with a Third Party that (a) purports to dedicate, commit, or grant any right with respect to the Lands or any Water Rights associated therewith to any Person other than Operator, or (b) otherwise conflicts with, limits, or restricts Landowner's ability to fully perform its obligations under this Agreement or to grant Operator the exclusive rights contemplated herein.

"**Contract Year**" means (a) the period commencing on the Effective Date and ending on December 31 of the calendar year in which the Effective Date occurs and (b) each subsequent twelve (12) month period commencing on January 1 and ending on December 31.

"**Curtailment**" has the meaning set forth in <u>Section</u> <u>2.1(f)</u>.

"**Desert Ram South Lands**" means the lands described on Part 2 of <u>Exhibit A-1</u>.

"**Disclosure Recipients**" means, with respect to any Receiving Party, such Party's Affiliates, directors, officers, employees, representatives, agents, investors, lenders, accountants, attorneys or other financial or professional advisors, in each case that receive Confidential Information of the Disclosing Party.

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"**Disposal Facilities**" means any facilities and equipment intended to transport, store, process, treat, separate, evaporate and/or dispose of Produced Water, in each case, for the ultimate disposal thereof, including Disposal Wells, as well as all evaporation facilities, ponds, pipelines and related infrastructure, as applicable.

"**Disposal Well**" means a Produced Water injection well owned and operated by Operator (or its Affiliates) and its related facilities and equipment that is permitted by the Railroad Commission of Texas, the New Mexico Oil & Gas Conservation Division, or other applicable Governmental Authority and used to inject Produced Water only into and stored in non-commercial hydrocarbon productive zones or intervals underlying the Lands, but only to the extent that such well has a surface location within the Lands. For the avoidance of doubt, Disposal Wells shall not be used to, and shall not include any wells or related facilities and equipment used to, inject and/or store any non-hydrocarbon gases (including carbon dioxide) or non-oilfield liquid wastes into or beneath the Lands.

"**Due Date**" has the meaning set forth in <u>Section</u> <u>2.7(a)</u>.

"**Easement**" has the meaning set forth in <u>Section</u> <u>2.3(a)</u>.

"**Effective Date**" has the meaning set forth in the preamble.

"**Environmental Laws**" means any applicable Law that pertains to (a) pollution or pollution control, (b) the protection of the environment (including natural resources and threatened or endangered species) or relating to public or worker health or safety, or (c) the management, transportation, release or disposal of Hazardous Materials and the remediation of contamination in connection with the operations under any Lease or Easement, including the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., the Solid Waste Disposal Act (as amended by the Resource Conservation and Recovery Act), 42 U.S.C. § 6901 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq., the Federal Safe Drinking Water Act, 42 U.S.C. §§ 300f-300, the Federal Air Pollution Control Act, 42 U.S.C. § 7401 et seq., the Oil Pollution Act, 33 U.S.C. § 2701 et seq., the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq., the Endangered Species Act, 16 U.S.C. § 1531 et seq., the Clean Air Act, 42 U.S.C. §§ 7401 et seq., Clean Water Act, 33 U.S.C. §§ 1251 et seq., Rivers and Harbors Act, 33 U.S.C. §§ 401 and 40, National Environmental Policy Act, 42 U.S.C. §§ 4321 et seq., Fish & Wildlife Coordination Act, 16 U.S.C. §§ 661 et seq., Resource Conservation & Recovery Act, 42 U.S.C. §§ 6901 et seq., each as amended, and any analogous state Laws, and the regulations and orders promulgated by a Governmental Authority thereunder.

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"**Event of Bankruptcy**" means, with respect to any Party, any of the following: (a) making a general assignment for the benefit of creditors; (b) filing a voluntary petition in bankruptcy; (c) filing a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any bankruptcy, insolvency or other similar law; (d) seeking, consenting to, or acquiescing in the appointment of a trustee, receiver or liquidator of such Party, or of all or any substantial part of its properties or assets under any bankruptcy, insolvency or other similar law; or (e) (i) the passage of one hundred twenty (120) days after the commencement of any involuntary proceeding against such Party, seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any bankruptcy, insolvency or other similar law, if the proceeding has not been dismissed, (ii) the passage of ninety (90) days after the appointment without its consent or acquiescence of a trustee, receiver or liquidator of such Party, or of all or any substantial part of its properties or assets, if the appointment is not vacated or stayed, or (iii) the passage of ninety (90) days after the expiration of any such stay, if the appointment is not vacated.

"**Excess Maintenance CapEx Notice**" has the meaning set forth in <u>Section</u> <u>2.11(b)</u>.

"**Excess Maintenance Capital Expenditures**" has the meaning set forth in <u>Section</u> <u>2.11(b)</u>.

"**Extension Term**" has the meaning set forth in <u>Section</u> <u>4.1</u>.

"**Facilities**" means, collectively, the Initial Facilities and the Additional Facilities developed on the Lands pursuant to this Agreement, including Disposal Facilities, Recycling Facilities, Fresh Water Facilities, Produced Water Facilities and associated layflat lines, pipelines, ponds, pumps, risers, roads, electrical facilities, and other related infrastructure and equipment, in each case located or to be located on the Lands.

"**Fresh Water**" means groundwater that may be produced from any subsurface water-bearing formation or aquifer that may be used in oil and gas operations or for some other beneficial purpose, but excluding Produced Water and Recycled Water.

"**Fresh Water Facilities**" means any and all facilities, systems, and equipment used to receive, handle, store, treat, blend, transfer, and transport Fresh Water for use in oil and gas operations or other beneficial purposes, including layflat lines, pipelines, ponds, tanks, pump stations, risers, manifolds, Meters, power and electrical facilities, access roads, and other related infrastructure and equipment, in each case located or to be located on the Lands and owned and operated by Operator (or its Affiliates); *provided*, *however*, that "Fresh Water Facilities" expressly excludes Recycling Facilities and Disposal Facilities.

"**Fresh Water Sourcing Services**" has the meaning set forth in <u>Section</u> <u>2.1(b)</u>.

"**Fresh Water Sourcing Services Fee**" has the meaning set forth in <u>Section</u> <u>2.4(e)</u>.

"**Governmental Authority**" means (a) any federal, state, local, municipal, tribal or other government, (b) any governmental, regulatory or administrative agency, commission, body or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or other taxing power, and (c) any court or governmental tribunal.

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"**Hazardous Material**" means any substance, material, or waste regulated or that may form the basis of liability under, or impose standards of conduct pursuant to, any Environmental Law, including any substance regulated as "hazardous," "toxic," a "pollutant," a "contaminant," a "waste," or words of similar meaning and regulatory effect.

"**Hydrosource Logistics**" has the meaning set forth in the preamble.

"**Hydrosource Midstream**" has the meaning set forth in the preamble.

"**Idle Storage Period**" has the meaning set forth in <u>Section</u> <u>2.4(j)</u>.

"**Idle Water Storage Fee**" has the meaning set forth in <u>Section</u> <u>2.4(j)</u>.

"**Initial Facilities**" means the Produced Water Facilities, Fresh Water Facilities, and Recycling Facilities existing on the Lands as of the Effective Date and described on <u>Exhibit B</u> hereto.

"**Initial Term**" has the meaning set forth in <u>Section</u> <u>4.1</u>.

"**Invoice**" has the meaning set forth in <u>Section</u> <u>2.7(a)</u>.

"**Landowner**" has the meaning set forth in the preamble.

"**Landowner Default**" has the meaning set forth in <u>Section</u> <u>5.1</u>.

"**Landowner Facilities**" has the meaning set forth in <u>Section</u> <u>2.11(a)</u>.

"**Landowner Group**" has the meaning set forth in <u>Section</u> <u>8.1</u>.

"**Landowner's Representative**" has the meaning set forth in <u>Section</u> <u>9.10</u>.

"**Lands**" means, collectively, (a) all lands, real property rights, surface rights, surface licenses, easements and rights of use described on <u>Exhibit A-1</u> attached hereto and (b) from the Effective Date until the date that is the two (2) year anniversary of the Effective Date, all lands, real property rights, surface rights, surface licenses, easements and rights of use located within the five (5) mile radius surrounding the New Mexico Lands as described on <u>Exhibit A-2</u> attached hereto to the extent and only to the extent owned or leased by Landowner or its Affiliates during such time (*provided*, that the Parties agree and acknowledge that such lands described in this <u>clause (b)</u> shall automatically no longer be included as part of the "Lands" from and after the second (2<sup>nd</sup>) anniversary of the Effective Date and thereafter shall no longer be covered by this Agreement or the Water Rights granted hereunder).

"**Law**" means any applicable statute, law (including common law and Environmental Laws), rule, regulation, requirement, ordinance, order, code, ruling, writ, injunction, decree, or other official act of or by any Governmental Authority.

"**Lease**" has the meaning set forth in <u>Section</u> <u>2.3(a)</u>.

"**Losses**" has the meaning set forth in <u>Section</u> <u>8.1</u>.

"**Memorandum**" has the meaning set forth in <u>Section</u> <u>9.25</u>.

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"**Meters**" has the meaning set forth in <u>Section</u> <u>2.6</u>.

"**Minimum Royalty Payment**" has the meaning set forth in <u>Section</u> <u>2.4(c)</u>.

"**NGL**" means NGL Water Solutions Permian, LLC or its applicable successor-in-interest.

"**NGL Supply Agreement**" means that certain Produced Water Treatment and Supply Agreement dated as of April 4, 2024 by and between NGL Water Solutions Permian, LLC, a Texas limited liability company, and Hydrosource Logistics.

"**Operator**" has the meaning set forth in the preamble.

"**Operator Default**" has the meaning set forth in <u>Section</u> <u>5.3</u>.

"**Operator Group**" has the meaning set forth in <u>Section</u> <u>8.2</u>.

"**Operator's Representative**" has the meaning set forth in <u>Section</u> <u>9.10</u>.

"**Operator Return**" has the meaning set forth in <u>Section</u> <u>2.11(c)</u>.

"**Other Lands**" means other lands owned or leased by Landowner or its applicable Affiliate during the Term for which Operator or its applicable Affiliate has the right to transport and/or dispose of Produced Water, transport and/or dispose of Fresh Water or transport Recycled Water and for which Landowner or its applicable Affiliate receives a fee or royalty, excluding, for the avoidance of doubt, the Lands.

"**Overdue Rate**" means the lesser of one percent (1%) per month and the maximum rate permitted by Law.

"**Party**" and "**Parties**" have the meanings set forth in the preamble.

"**Payback Period**" has the meaning set forth in <u>Section</u> <u>2.11(c)</u>.

"**Permit**" means a permit to construct and operate a Disposal Facility (including a Disposal Well), Recycling Facility, Produced Water Facility, Fresh Water Facility or other pond that is validly issued and approved by the Railroad Commission of Texas, the New Mexico Oil Conservation Division, or other Governmental Authority having jurisdiction.

"**Person**" means an individual, a partnership (general, limited or limited liability), a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, any other entity or organization, or a Governmental Authority.

"**Produced Water**" means any produced water, flowback water, brine water, saltwater, associated incidental hydrocarbons, trace amounts of oil industry chemicals or various trace solids, and any other water borne liquid substances generated as waste in connection with drilling for and producing hydrocarbons, but excluding Fresh Water and Recycled Water.

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"**Produced Water Facilities**" means any and all facilities, systems, and equipment used to collect, gather, receive, handle, meter, store, transfer, and transport Produced Water, including layflat lines, pipelines, trunk lines, gathering lines, pump stations, storage tanks and ponds, risers, manifolds, Meters, power and electrical facilities, access roads, and other related infrastructure and equipment, in each case located or to be located on the Lands and owned and operated by Operator (or its Affiliates); *provided*, *however*, that "Produced Water Facilities" expressly excludes Recycling Facilities and Disposal Facilities.

"**Project Limitation**" has the meaning set forth in <u>Section</u> <u>2.2(c)</u>.

"**Project Proposal**" has the meaning set forth in <u>Section</u> <u>2.2(b)</u>.

"**Prudent Industry Practices**" means that degree of skill, diligence and judgment, and the utilization of practices, methods, techniques and standards, that are generally expected of a skilled and experienced firm engaged in work similar in nature and extent to the management and development of the Water Rights hereunder, and acting as a reasonable and prudent operator. Prudent Industry Practices are not limited to the optimum practice or method to the exclusion of others, but rather refer to commonly used and reasonable practices and methods.

"**Qualified Midstream Operator**" means, with respect to any Person, that such Person, together with its Affiliates, has the requisite experience and capabilities to manage and operate the acquired assets and business of Operator as reasonably determined by Landowner; *provided*, that a Person will be deemed to be a Qualified Midstream Operator if (a) a majority of the individual members of the executive management team (including Senior Vice Presidents and above) operating the business of Operator as of immediately prior to the consummation of the applicable transaction (including pursuant to any services or similar agreement) will continue to operate the assets acquired from Operator immediately following the consummation of the applicable transaction (including pursuant to any services or similar agreement) or (b) such Person (1) is a midstream water services provider and a material part of such Person's current operations involve operating assets that are similar to those of Operator, (2) has never filed a voluntary bankruptcy proceeding or been declared bankrupt involuntarily, and (3) has not been denied or prohibited by any Governmental Authority from holding any material permits, licenses or approvals necessary to operate such Person's midstream water assets, in each case, as a result of the quality of such Person's past operations or such Person's prior failures to materially comply with material permits, licenses or approvals, or otherwise had any such material permits, licenses or approvals rescinded or revoked by any Governmental Authority due to a material violation thereof.

"**Recycled Water**" means any water obtained pursuant to the NGL Supply Agreement (or otherwise) and recycled and/or treated for re-use, including all water produced, treated, blended with other water, recycled and sold from NGL's Produced Water pipelines or other NGL facilities, whether located on or off the Lands.

"**Recycled Water Royalty**" has the meaning set forth in <u>Section</u> <u>2.4(b)(i)</u>.

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"**Recycling Facilities**" means any facilities and equipment owned and operated by Operator (or its Affiliates) intended to transport, store and/or treat Produced Water (and/or blend Produced Water with Fresh Water) for the purpose of making such Produced Water or blended water available to customers for use or reuse in oil and gas drilling, exploration, and completion operations, including ponds, pipelines, aeration and/or chemical treating facilities and related infrastructure, as applicable, but excluding Disposal Facilities.

"**Representing Party**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

"**Required Insurance**" is defined in <u>Section</u> <u>9.16(a)</u>.

"**Residual Improvements**" has the meaning set forth in <u>Section</u> <u>4.2(b)</u>.

"**Royalties**" means, collectively, the Transit Tariff, the Recycled Water Royalty, the Solid Waste Royalty (if applicable), Idle Water Storage Fee, and the Skim Oil Fee.

"**Sand Mine Facilities**" has the meaning set forth in <u>Section</u> <u>2.13</u>.

"**Sand Mine Option**" has the meaning set forth in <u>Section</u> <u>2.13</u>.

"**Skim Oil**" means oil, condensate and other liquid hydrocarbons recovered from Produced Water.

"**Skim Oil Fee**" has the meaning set forth in <u>Section</u> <u>2.4(b)(iv)</u>.

"**Solid Waste Facilities**" means the facilities described on Part 2 of <u>Exhibit A-1</u>.

"**Solid Waste Facility Option**" has the meaning set forth in <u>Section</u> <u>2.10(a)</u>.

"**Solid Waste Option Termination Date**" has the meaning set forth in <u>Section</u> <u>2.10(a)</u>.

"**Solid Waste Royalty**" has the meaning set forth in <u>Section</u> <u>2.4(d)</u>.

"**Storage Consent**" has the meaning set forth in <u>Section</u> <u>2.4(i)</u>.

"**Surface Damages**" means the surface damages and corresponding rates described on <u>Schedule</u> <u>2.4</u>; *provided*, that such rates may be escalated in accordance with <u>Section</u> <u>2.4</u>.

"**Term**" has the meaning set forth in <u>Section</u> <u>4.1</u>.

"**Third Party**" means any Person that is not a Party or an Affiliate of a Party to this Agreement.

"**Transaction Documents**" means this Agreement, together with any Lease and any Easement delivered pursuant to this Agreement, in each case that is executed and delivered by the Parties in accordance with this Agreement.

"**Transit Tariff**" has the meaning set forth in <u>Section</u> <u>2.4(b)(ii)</u>.

"**Water Rights**" has the meaning set forth in <u>Section</u> <u>2.1(a)</u>.

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Section 1.2 **Construction**. Unless the context otherwise requires: a term has the meaning assigned to it; "or" is not exclusive; words in the singular include the plural, and words in the plural include the singular; provisions apply to successive events and transactions; the words "herein," "hereof" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; all references herein to Articles, Sections, paragraphs, subparagraphs and clauses shall be deemed to be references to Articles, Sections, paragraphs, subparagraphs and clauses of this Agreement unless the context shall otherwise require; the words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation"; the word "extent" in the phrase "to the extent" shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply "if"; references to "$" or "dollars" shall mean United States dollars; unless otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement, instrument or statute that is referred to herein means such agreement, instrument or statute as from time to time amended, restated, waived or otherwise modified or supplemented, including (i) in the case of agreements or instruments and references to all attachments thereto and instruments incorporated therein, by waiver or consent, and (ii) in the case of statutes, by succession of comparable successor statutes.

**ARTICLE II** 

**FACILITIES; WATER RIGHTS; ACCESS RIGHTS** 

Section 2.1 **Grant of Water Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Water Rights</u>. Subject to the terms and conditions set forth in this Agreement and the Transaction Documents and any Conflicting Dedications, Landowner hereby grants to Operator the sole and exclusive right during the Term to utilize the surface of the Lands for the treatment, processing and recycling of Produced Water and Recycled Water for use in oil and gas operations and any necessary handling and transportation associated therewith, including the right to install, maintain, modify, own, operate and remove any facilities, infrastructure and equipment in connection therewith ("**Water Rights**"). For the avoidance of doubt, the foregoing exclusivity is limited to Landowner's rights to grant Water Rights on the Lands and shall not be construed to prevent any operator or lessee from (i) recycling, treating, or disposing of water produced from such operator's or lessee's own wells on the Lands using such operator's or lessee's own equipment or facilities or (ii) engaging a third-party service provider to provide such recycling, treatment, or disposal services solely for the benefit of such operator's or lessee's own operations on the Lands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Freshwater Sourcing Services</u>. On an as-needed basis and to the extent requested by Landowner in writing, Operator shall assist Landowner and its Affiliates in the sourcing and logistics of Fresh Water ("**Fresh Water Sourcing Services**") pursuant to a purchase order substantially in the form attached hereto as <u>Exhibit</u> <u>D</u>, whereby Landowner or its designee shall purchase Fresh Water identified and sourced by Operator from Operator pursuant to the terms thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Exclusive Access Right</u>. Subject to the terms and conditions set forth in this Agreement and payment of the applicable Surface Damages, Landowner hereby grants to Operator the non-exclusive right to use the existing roads located on the Lands, at no additional cost except for the obligation to maintain pursuant to the next succeeding sentence, in connection with the construction, development, operation, maintenance, relocation, and/or removal of the Facilities. Operator shall (i) comply with any reasonable rules and regulations of Landowner provided in writing to Operator in connection with the exercise of such access rights and (ii) maintain all existing roads utilized by Operator in reasonably good repair; *provided*, that to the extent maintenance of such existing road is required and responsibility for damages cannot be definitively determined, responsibility for such maintenance shall be apportioned appropriately between Operator and such other operators or Persons that utilize such road, based upon their proportionate use of such road as determined by Landowner in its reasonable discretion. To the extent Operator desires to construct new roads to access the Facilities following the Effective Date, Operator shall submit a Project Proposal for such new road in accordance with the terms and conditions of <u>Section</u> <u>2.2</u>, and if such new road is approved and constructed, such new road(s) shall be subject to the above requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reservations</u>. Landowner reserves, excepts and excludes any rights from Landowner's and its Affiliates' commitment provided for in <u>Section</u> <u>2.1(a)</u> other than those rights expressly described as the Water Rights. For the avoidance of doubt, such reserved rights include data center infrastructure, traditional and renewable power generation, transmission and storage facilities and related commercial development, or any purpose other than water recycling for use in oil and gas operations. Notwithstanding anything herein to the contrary, (i) the rights granted to Operator under this Agreement are subject to the terms of all existing oil, gas and mineral leases and all existing easements, rights-of-way, surface use agreements and other agreements or interests covering or affecting the Lands, in each case, that are filed of public record or disclosed to Operator in writing as of the Effective Date, and (ii) Landowner may amend such existing agreements and enter into agreements with and grant rights to any other Persons without Operator's prior written consent, except to the extent the same are in contravention of Operator's rights under <u>Section</u> <u>2.1(a)</u> or <u>Section</u> <u>2.1(b)</u> or unreasonably interfere, as reasonably determined by Landowner, with then-existing Facilities or any other rights set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Existing Dedications and Subsequently Acquired Interests</u>. Notwithstanding anything herein to the contrary, Landowner shall have the right to comply with any Conflicting Dedications set forth on <u>Schedule IV</u>. Landowner shall not enter into, extend or renew any Conflicting Dedication during the Term. Upon the termination of any Conflicting Dedication, the Lands and all rights associated therewith that are owned or controlled by Landowner, or that Landowner has the right to use or grant, subject to such Conflicting Dedication will automatically become subject to the commitments in this <u>Article</u> <u>II</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Exclusive Water Rights Releases</u>. If, for any reason other than a Landowner Default, Operator fails to conduct operations in connection with Operator's Water Rights and such failure results in no Royalties being paid to Landowner pursuant to this Agreement with respect to all or any portion of the Lands for more than one hundred twenty (120) consecutive days or one hundred eighty (180) days out of three hundred sixty-five (365) days (each, a "**Curtailment**"), then, notwithstanding Operator's obligations under <u>Section</u> <u>2.4(c)</u>, Operator's Water Rights shall no longer be sole and exclusive with regards to the Lands affected by the Curtailment (the "**Affected Lands**"), and Landowner shall be free to contract with any Third Party for non-exclusive Water Rights on the Affected Lands. Notwithstanding any other provision herein, it is the Parties' intent that all Water Rights on the Lands which have not been specifically subject to a loss of exclusivity under this <u>Section</u> <u>2.1(f)</u> shall remain the exclusive right of Operator, and the Water Rights and all other related exclusive rights and commitments relating thereto as provided hereunder shall remain in full force and effect for the duration of the Term with respect to such Water Rights and Lands.

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Section 2.2 **Additional Facilities and Project Proposals**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Facilities</u>. As of the Effective Date, Landowner hereby acknowledges, accepts and consents to each of the Initial Facilities identified on <u>Exhibit B</u>. The Parties hereby agree to promptly enter into Leases and Easements with respect to each of the Initial Facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Additional Facilities</u>. From time to time during the Term, Operator may propose that additional Facilities be constructed, owned, and operated by Operator on the Lands, including (i) additional layflat lines, pipelines, roads, electrical facilities, and other related infrastructure and equipment reasonably necessary or convenient in connection with the operation of the Initial Facilities and (ii) other Recycling Facilities, Produced Water and Recycled Water pipelines or related facilities and equipment, Fresh Water pipelines or related facilities and equipment and other Facilities (each, an "**Additional Facility**" and each such proposal, a "**Project Proposal**"). Each Project Proposal shall be submitted to Landowner in writing and include (x) a reasonably detailed description of the proposed Additional Facilities, (y) the portions of the Lands on which the Additional Facilities are proposed to be located, including a survey of such lands prepared by Operator and (z) such other information related to such Additional Facilities that is reasonably requested by Landowner. Subject to <u>Section</u> <u>2.2(c)</u>, Landowner shall accept and consent in writing (email being sufficient) to each Project Proposal for an Additional Facility described in <u>clause</u> <u>(i)</u> or <u>(ii)</u> above within thirty (30) days from the date of receipt of the Project Proposal. Subject to <u>Section</u> <u>2.2(c)</u>, if Landowner does not timely accept and consent to a Project Proposal, Landowner shall be deemed to have accepted and consented to such Project Proposal. Operator shall promptly notify Landowner in writing (email being sufficient) of any expected material changes, alterations or amendments to the applicable Additional Facilities throughout the course of the development of such Additional Facilities; *provided*, that for the avoidance of doubt, any material change to the location, scope or purpose of an Additional Facility shall require the prior written consent of Landowner, which consent shall not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Project Limitations</u>. If Landowner determines in good faith that a Project Proposal conflicts with any then-existing or definitively proposed use or business operations conducted by Landowner or Third Parties on the Lands, including then-existing or definitively proposed oil and gas operations, Produced Water and/or Recycled Water operations (each, a "**Project Limitation**"), then Landowner shall notify Operator in writing of such determination and the basis therefor within thirty (30) days from the date of receipt of the Project Proposal, and the Parties shall negotiate in good faith for not less than thirty (30) days to amend the Project Proposal in an effort to identify a mutually acceptable alternate location on the Lands for such Project Proposal that would not be subject to a Project Limitation, including allowing Operator to permit and stake potential Additional Facility locations on the Lands. If the Parties are unable to mutually agree on a revised Project Proposal within such thirty (30)-day period, then Operator shall not pursue such Additional Facility. For the avoidance of doubt, if Landowner does not provide written notice of any objection to a Project Proposal that is subject to a Project Limitation within thirty (30) days from the date of receipt of the Project Proposal, Landowner shall be deemed to have accepted and consented to such Project Proposal for all purposes to the extent that Landowner is not expressly prohibited from doing so by a valid existing instrument to which Landowner is a party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Approved Facility</u>. Upon Landowner's acceptance and consent to, or deemed consent to, a Project Proposal in accordance with this <u>Section</u> <u>2.2</u>, the applicable Additional Facility shall be deemed an "**Approved Facility**."

Section 2.3 **Leases and Easements**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For each of the Initial Facilities, Landowner and Operator shall use commercially reasonable efforts to promptly execute and deliver, as applicable, such (i) surface use agreements substantially in the form of <u>Schedule</u> <u>I</u> hereto (each, a "**Lease**") and/or (ii) easements substantially in the form of <u>Schedule</u> <u>II</u> hereto (each, an "**Easement**"), which shall cover the applicable portion(s) of the Lands, in each case, as are necessary or convenient in connection with such Initial Facilities, with such modifications to each such Lease and/or Easement forms as may be necessary to incorporate the specific terms of the applicable Initial Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For each Approved Facility, Landowner and Operator or their applicable Affiliates shall, within thirty (30) days of Landowner's acceptance (or deemed acceptance) of any Approved Facility, execute and deliver, as applicable, such Leases and/or Easements covering the applicable portion(s) of the Lands, in each case, as are necessary or convenient in connection with such Approved Facility, with such modifications to each such Lease and/or Easement forms as may be necessary to incorporate the specific terms of the applicable Approved Facility.

Section 2.4 **Surface Damages; Royalty; Minimum Royalty Payment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Operator shall pay to Landowner the applicable Surface Damages for the applicable Facilities constructed and/or utilized by Operator pursuant to this Agreement or any other operations or business of Operator or its Affiliates on the Lands pursuant to this Agreement. For the avoidance of doubt, Operator shall not owe any Surface Damages with respect to the Initial Facilities as the same exist on the Effective Date, but shall owe any applicable Surface Damages with respect to the Initial Facilities to the extent the same arise after the Effective Date. Not later than December 31 of each year, Landowner shall determine, in its reasonable discretion and with reference to market-based surface damages in the approximate vicinity of the applicable Facilities, the applicable Surface Damages for all Leases and Easements that are executed in the immediately succeeding calendar year or any other operations or business conducted by Operator or its Affiliates hereunder, and shall provide notice to Operator thereof along with reasonable supporting documentation; *provided*, that if Landowner or its applicable Affiliate has received surface damages from one or more Third Parties in the approximate vicinity of the applicable Facilities within the prior twelve (12) months, the adjusted Surface Damages shall not exceed the highest surface damages paid to Landowner or its applicable Affiliate by a Third Party in the approximate vicinity of the applicable Facilities within the prior twelve (12) months. If Landowner does not make this determination and provide notice and the required documentation to Operator thereof in accordance with this <u>Section</u> <u>2.4(a)</u>, the then-current Surface Damages shall continue in effect. Other than any Surface Damages as determined in accordance with this <u>Section</u> <u>2.4(a)</u> and the amounts set forth in <u>Section</u> <u>2.4(b)</u>, <u>Section</u> <u>2.4(c)</u>, <u>Section</u> <u>2.4(d)</u> and <u>Section</u> <u>2.4(i)</u> or otherwise expressly set forth in this Agreement, Operator will not be obligated to pay any royalties, throughputs, or other fees with respect to Operator's use of or access to the Lands in accordance with this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each month during the Term, Operator shall pay to Landowner (without duplication) the following amounts in consideration of the Water Rights granted to Operator pursuant to <u>Article II</u> (the calculation of which is further set forth in the illustrative examples set forth on <u>Exhibit</u> <u>E</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) thirty-one percent (31%) of the gross selling price for each Barrel
of Recycled Water stored, treated, processed, recycled, disposed, purchased or sold, within the Lands, by Operator or its Affiliates *less* applicable taxes, and (B) from the Effective Date until the date that is the two (2) year
anniversary of the Effective Date, five percent (5%) of the gross selling price for each Barrel of Recycled Water stored, transported, treated, processed, disposed, recycled, purchased and sold, as applicable, in New Mexico outside the Lands, by
Operator or its Affiliates, net of royalty or other payments owed to Third Party landowners (collectively, the "**Recycled Water Royalty** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to any volumes of raw Produced Water or Recycled Water that are transported across or through the
Lands solely for purposes of transit to a Recycling Facility or Disposal Facility located outside the Lands (and for which no Recycled Water Royalty or other Royalty under <u>Section</u> <u>2.4(b)</u> is payable to Landowner with respect
to such volumes), Operator shall pay to Landowner, in lieu of any other Royalty under this <u>Section</u> <u>2.4(b)</u>, a transit tariff equal to two cents ($0.02) per Barrel upon entry of such volumes onto the Lands and two cents
($0.02) per Barrel upon exit of such volumes from the Lands (the "**Transit Tariff** "), for a combined aggregate tariff of four cents ($0.04) per Barrel transported across the Lands. For the avoidance of doubt, if Operator is
transporting raw Produced Water or Recycled Water across the Lands pursuant to the NGL Supply Agreement or otherwise in a manner that will ultimately generate a Recycled Water Royalty or other Royalty payable to Landowner under <u>Section</u> <u>2.4(b)</u> (with respect to such volumes), then the Transit Tariff shall not apply to such volumes and the applicable Royalty under <u>Section</u> <u>2.4(b)</u> shall govern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) for all raw Produced Water sourced pursuant to the NGL Supply Agreement, a written consent prior to such sale
of raw Produced Water and fifty percent (50%) of the gross selling price for each Barrel of raw Produced Water received by Operator or its Affiliates *less* the amount paid to NGL for the raw Produced Water; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) fifty percent (50%) of the gross revenue received by Operator or its Affiliates from the sale of Skim Oil
recovered from the Facilities or other operations on the Lands (the "**Skim Oil Fee** ").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the aggregate Recycled Water Royalty and Transit Tariff payable and thereafter timely paid by Operator to Landowner during any Contract Year through and including the fifth (5th) Contract Year following the Effective Date is less than five million dollars ($5,000,000) for such Contract Year (as escalated in accordance with <u>Section</u> <u>2.5</u>, the "**Minimum Royalty Payment**"), Operator shall pay to Landowner an amount equal to the shortfall in such Contract Year (if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Operator exercises the Solid Waste Facility Option pursuant to <u>Section</u> <u>2.10(a)</u>, then Operator shall pay to Landowner ten percent (10%) of the gross revenue received by Operator from the Solid Waste Facilities, excluding any deductions for operating or capital costs, depreciation, overhead, fees or royalties payable to any Third Parties (the "**Solid Waste Royalty**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent that Operator provides Landowner with Fresh Water Sourcing Services as requested by Landowner, Landowner shall pay to Operator a fee equal to six percent (6%) of the gross selling price for each Barrel of Fresh Water sourced and sold ("**Fresh Water Sourcing Services Fee**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary herein, with respect to any Produced Water volumes or Recycled Water volumes that are transported across or enter the Lands more than once, Operator shall incur the applicable Royalty set forth in <u>Section</u> <u>2.4(b)</u> with respect to the first instance that such volumes cross the Lands, and shall not incur an additional Royalty with respect to subsequent crossings for such volumes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary herein, with respect to any Produced Water volumes or Recycled Water volumes that are transported across or enter the Lands and subsequently enter or cross Other Lands, Operator shall incur the applicable fee or royalty with respect to the first instance that such volumes cross the Lands or Other Lands, as applicable, and shall not incur an additional fee or royalty with respect to subsequent crossings of the Lands or Other Lands, as applicable, for such volumes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In each case of calculating the gross revenue and gross selling price under this <u>Section</u> <u>2.4</u>, the amounts shall be reduced by any applicable sale, use or gross receipts taxes imposed directly on such gross revenue and gross selling price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Operator shall not store any Fresh Water, Produced Water or Recycled Water in any pond, pit, or other storage infrastructure located on the Lands without the prior written consent of Landowner (each such consent, a "**Storage Consent**"). Each Storage Consent shall specify, at a minimum, (A) the location of the applicable pond, pit, or storage infrastructure, (B) the maximum aggregate volume of Fresh Water, Produced Water or Recycled Water approved for storage thereunder (the "**Approved Storage Volume**"), and (C) any other conditions or limitations imposed by Landowner in its reasonable discretion. In the event that any Fresh Water, Produced Water or Recycled Water volume stored on the Lands pursuant to a valid Storage Consent is not transported, recycled, treated, processed, or disposed of within sixty (60) days of the date on which such volumes were first stored in the applicable pond, pit, or storage infrastructure under such Storage Consent (each such 60-day period, an "**Idle Storage Period**"), then Operator shall pay to Landowner a storage fee of fifty thousand dollars ($50,000) for each completed Idle Storage Period (the "**Idle Water Storage Fee**"). For the avoidance of doubt, the Idle Water Storage Fee shall be

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due and payable on the sixty-first (61st) day following the commencement of any Idle Storage Period, and shall continue to accrue and be due and payable every sixty (60) days thereafter for so long as such volumes remain idle on the Lands. The Idle Water Storage Fee shall be invoiced by Landowner and paid by Operator in accordance with <u>Section</u> <u>2.7</u>. The obligation to pay the Idle Water Storage Fee shall be in addition to, and shall not in any way reduce, limit, or offset, any Royalty, Minimum Royalty Payment, Surface Damage, or other amounts owed under this Agreement.

Section 2.5 **Escalation**. Beginning on the first (1<sup>st</sup>) anniversary of the Effective Date, and on each annual anniversary thereafter, the Transit Tariff, the Minimum Royalty Payment and the Idle Water Storage Fee shall automatically increase by the amount of any upward percentage change of the immediately preceding year (if any), in the Consumer Price Index for All Urban Consumers or its most comparable successor, as published by the Department of Labor or its most comparable successor; *provided*, that any such adjustment shall not exceed three percent (3%) for any Contract Year, and the Transit Tariff, the Minimum Royalty Payment and the Idle Water Storage Fee, as applicable, shall never be decreased.

Section 2.6 **Meters**. Operator, at its sole cost, risk, and expense, shall provide, operate and maintain properly calibrated flow meters (the "**Meters**") at each (a) Disposal Facility, (b) receipt point at which one of Operator's Produced Water pipelines brings Produced Water onto the Lands, (c) receipt point on the Lands at which Produced Water originally produced on the Lands enters Operator's Disposal Facilities, (d) receipt point on the Recycling Facilities at which Produced Water is treated and becomes Recycled Water, (e) Solid Waste Facility and (f) any other necessary locations on the Facilities, all to the extent necessary to calculate the amounts owed by Operator pursuant to <u>Section</u> <u>2.4</u> and in compliance with all Laws and Prudent Industry Practices.

Section 2.7 **Payment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Invoices and Due Date</u>. No later than the fifteenth (15th) day following the end of each month during the Term (and, in the case of the Minimum Royalty Payment, the applicable Contract Year to which the Minimum Royalty Payment relates), Operator shall deliver to Landowner an invoice ("**Invoice**") setting forth (i) the Produced Water volumes, Recycled Water volumes, Skim Oil sales and Solid Waste Royalties (if applicable) for which Operator owes a payment to Landowner pursuant to <u>Section</u> <u>2.4</u> for such subject month and calculated as provided for in <u>Section</u> <u>2.4</u>, as applicable, as well as any other amounts due and payable under this Agreement, and (ii) payments owed by Operator for any Surface Damages (to the extent not previously paid), in each case, as set forth in the applicable Lease or Easement for the subject month. Operator shall pay in full any undisputed amounts due as reflected on the applicable Invoice by check or ACH transfer to Landowner's designated bank account on or prior to the date that is sixty (60) days following the end of the month with respect to which such amounts are owed (the "**Due Date**"). If any undisputed amount due hereunder remains unpaid for sixty (60) days after the Due Date for such statement, interest on such amounts will accrue at the Overdue Rate from the Due Date through and including the date the owing Party actually makes payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shortfall Payment</u>. No later than the last day of each Contract Year, Operator shall deliver to Landowner an Invoice setting forth the shortfall amount calculated as provided for in <u>Section</u> <u>2.4(c)</u>. Operator shall pay in full any undisputed amounts due as reflected on the applicable Invoice by check or ACH transfer to Landowner's designated bank account on or prior to the date that is thirty (30) days following the end of such Contract Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disputes</u>. In the event Landowner disputes in good faith all or any portion of an Invoice, then the undisputed portion, if any, shall be due and payable in accordance with <u>Section</u> <u>2.7(a)</u>. In the event that the dispute is resolved in favor of Landowner, then Operator shall promptly pay the disputed amount plus interest at the Overdue Rate from the date the disputed payment was originally due pursuant to <u>Section</u> <u>2.7(a)</u> through, and including, the date paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Audit</u>. At any time on no less than thirty (30) days' notice (but no more frequently than once in any twelve (12)-month period), either Party may, at the sole cost and expense of the requesting Party, conduct an audit of the other Party's accounts, invoices and other documents related to the Lands and operations pursuant to this Agreement, including records of Produced Water and Recycled Water volumes sourced, disposed of, transported or recycled on the Lands, Skim Oil recovered from Operator's Facilities or other operations on the Lands. Such examination shall use electronic records or, solely to the extent original documents are required, take place in the office location where such books and records are kept in the normal course of business; *provided*, that no examination may unreasonably interfere in the ongoing job responsibilities of the personnel of any Party. In the event the Parties mutually determine there was an Operator overpayment, Operator shall be due credit by Landowner for the amount of such overpayment on the next succeeding statement following such determination. In the event the Parties mutually determine there was an Operator underpayment, such amount shall be immediately due and payable, and Operator shall pay Landowner within thirty (30) days of such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Inspection</u>. Landowner shall have the right to access and enter the Lands and any Operator facilities, improvements, equipment, records, and areas where Operator conducts its business activities on, under, or relating to the Lands at any time and from time to time for the purpose of observing, inspecting, photographing, measuring, and auditing Operator's activities on the Facilities and, and to verify compliance with this Agreement and applicable Law. Operator shall provide reasonable cooperation to facilitate such inspections, including access to non-privileged books and records directly relating to operations on the Lands. Landowner shall at all times observe all posted safety notices and instructions, use required personal protective equipment, and be accompanied by an Operator representative if reasonably required for safety or security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Operator Credit Support</u>. In the event Landowner, in the exercise of reasonable judgment, has reasonable grounds for insecurity regarding Operator's payment or performance of any of Operator's obligations under this Agreement and determines Operator's credit to be unsatisfactory in Landowner's reasonable opinion based on analysis of the financial information of Operator, or of a Person that guarantees Operator's obligations under this Agreement, then within five (5) business days after Landowner's written notice, Operator shall provide to Landowner, at Landowner's sole option, one or more of the following forms of credit support: (A) an irrevocable standby letter of credit issued by a bank or financial institution incorporated in the United States, having a satisfactory long-term credit rating and net assets of not less than US$5,000,000, in form and substance reasonably acceptable to Landowner, for the benefit of Landowner and guaranteeing Operator's obligations under this Agreement; (B) an absolute, unconditional and continuing full-recourse guarantee from a corporate guarantor that is an Affiliate

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of Operator, with net assets of not less than US$5,000,000, in form reasonably acceptable to Landowner or (C) a pre-payment of the Minimum Royalty Payment for the applicable Contract Year, which pre-payment shall be credited against the Minimum Royalty Payment otherwise due and payable for such Contract Year pursuant to <u>Section</u> <u>2.4(c)</u>. Operator shall, within two (2) business days following Landowner's written request, provide reasonable documentation evidencing Operator's or any guarantor's creditworthiness.

Section 2.8 **Waiver of Rights**. Notwithstanding anything herein to the contrary and subject to the opportunity to cure provided herein, Operator shall not have any rights under this <u>Article</u> <u>II</u> with respect to a particular Approved Facility if, at the time of execution of a Lease or Easement for such Approved Facility, as applicable, (a) the applicable representations and warranties of Operator in <u>Article</u> <u>III</u> are not true and correct in all material respects or (b) if there exists an uncured Operator Default.

Section 2.9 **Taxes**. During the Term of this Agreement, Landowner shall be responsible for paying all ad valorem taxes assessed on the Lands. Operator shall pay any personal property taxes assessed specifically against the Facilities during the Term.

Section 2.10 **Solid Waste Rights Option**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Option; Term; Scope</u>. Subject to the terms and conditions of this Agreement, Landowner grants to Operator an exclusive option (the "**Solid Waste Facility Option**") to elect, at any time during the period commencing on the Effective Date and ending on the second (2nd) anniversary of the Effective Date (the "**Solid Waste Option Termination Date**"), to obtain a lease or surface use agreement for a portion of the Desert Ram South Lands for the development, construction, ownership, operation, maintenance, repair, replacement and removal of Solid Waste Facilities, together with non-exclusive access rights over existing and future roads, all as further described in a lease to be negotiated in good faith consistent with the terms of this <u>Section</u> <u>2.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Option Exercise; Lease Execution</u>. Operator may exercise the Solid Waste Facility Option by written notice to Landowner prior to the Solid Waste Option Termination Date, whereupon the Parties shall negotiate, execute and deliver a surface lease or surface use agreement substantially in the form of <u>Schedule I</u> (with customary modifications for Solid Waste Facilities), which shall include the Solid Waste Royalty and other customary provisions, within sixty (60) days following such notice. If the Parties are unable to agree on the lease within such period despite good-faith negotiations, Landowner shall have no further obligation to grant such rights and the Solid Waste Facility Option shall automatically terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Surface Damages; Easements</u>. Any Solid Waste Facilities and associated infrastructure shall be subject to Surface Damages determined in accordance with <u>Section</u> <u>2.4(a)</u> and to one or more Easements under <u>Section</u> <u>2.3</u>, in each case reflecting the footprint and linear facilities actually utilized, in addition to the Solid Waste Royalty under <u>Section</u> <u>2.4(d)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Water and Other Inputs</u>. Operator shall (i) purchase from Landowner, at then-prevailing market rates, all water and other resources available from Landowner and reasonably required for the construction and operation of the Solid Waste Facilities, and (ii) pay Landowner for all Easements and Surface Damages associated therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Permits</u>. To the extent Landowner holds any Governmental Authority permits specifically and exclusively covering proposed Solid Waste Facilities on the Desert Ram South Lands as of the date that Operator exercises the Solid Waste Facility Option, Landowner shall cooperate reasonably to assign or transfer such permits to Operator at Operator's sole cost and expense (including all transfer fees and incremental costs), subject to Governmental Authority approval and any applicable conditions; *provided*, that Landowner shall not be required to provide any indemnity, security, or ongoing obligation to effect such transfer beyond executing reasonable assignment instruments. Otherwise, if Operator exercises the Solid Waste Facility Option, then Operator shall be responsible, at its sole cost and expense, to obtain any permits necessary for the construction of any Solid Waste Facilities.

Section 2.11 **Maintenance; Maintenance Capital Expenditures**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent any of the assets, facilities or other personal property located on the Lands that are owned by Landowner or its Affiliates from time to time during the Term (the "**Landowner Facilities**") are utilized by either Party in connection with this Agreement, Operator shall be responsible for the maintenance of all such Landowner Facilities, with such maintenance done in accordance with all applicable Laws, Prudent Industry Practices and otherwise as requested by Landowner. Operator shall be responsible for the cost and expense of all such maintenance, except as otherwise provided herein. Operator may not incur maintenance capital expenditures for which Landowner is responsible without the prior written consent of Landowner. Landowner shall reimburse Operator for authorized maintenance capital expenditures, up to an aggregate annual cap of one million dollars ($1,000,000) (the "**Annual Cap**") within sixty (60) days after receipt of reasonably detailed invoices and supporting documentation from Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event Operator determines that maintenance capital expenditures in excess of the Annual Cap are necessary or advisable in any given calendar year (such excess amounts, the "**Excess Maintenance Capital Expenditures**"), Operator shall deliver to Landowner a written notice setting forth in reasonable detail the nature, scope, and estimated cost of such Excess Maintenance Capital Expenditures (the "**Excess Maintenance CapEx Notice**"). Within thirty (30) days following receipt of an Excess Maintenance CapEx Notice, Landowner shall elect, by written notice to Operator, one of the following options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Landowner may elect not to consent to the Excess Maintenance Capital Expenditures, in which case Operator shall
not incur such Excess Maintenance Capital Expenditures and shall continue to maintain the Landowner Facilities within the scope of previously authorized expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Landowner may elect to fund the Excess Maintenance Capital Expenditures directly;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Landowner may elect to engage a Third Party to fund the Excess Maintenance Capital Expenditures on such terms
as Landowner may negotiate with such Third Party in its sole discretion, *provided* that any such Third Party arrangement shall not materially interfere with Operator's operations under this Agreement. In the event Landowner elects this
option, Operator shall reasonably cooperate with Landowner and such Third Party to facilitate the completion of the applicable maintenance work; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Landowner may elect to have Operator fund the Excess Maintenance Capital Expenditures, in which case Operator
shall advance the funds necessary to complete the applicable maintenance work, and future royalty payments otherwise payable to Landowner under this Agreement shall be adjusted as set forth below to reimburse Operator for such funded amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Landowner elects the option set forth in <u>clause (iv)</u> above, then the Royalties otherwise due to Landowner under this Agreement shall be reduced on a going-forward basis until Operator has been fully reimbursed for the Excess Maintenance Capital Expenditures so funded, together with an annual markup of not less than fifteen percent (15%) per annum, compounded annually (the "**Operator Return**"), subject to a maximum payback period of two (2) years from the date such Excess Maintenance Capital Expenditures are incurred (the "**Payback Period**"). The total amount to be reimbursed to Operator through such Royalty adjustments shall not exceed the Excess Maintenance Capital Expenditures plus the Operator Return calculated over the Payback Period. For purposes of illustration, if Operator funds Excess Maintenance Capital Expenditures of one million dollars ($1,000,000), the total reimbursement amount would be calculated as follows: $1,000,000 × 1.15 (Year 1 markup at 15%) × 1.15 (Year 2 markup at 15%) = $1,322,500. Accordingly, the maximum amount recoverable by Operator through royalty adjustments in such example would be $1,322,500. Any Royalty adjustments pursuant to this <u>Section</u> <u>2.11(c)</u> shall be applied pro rata across Royalties due during the Payback Period, and Operator shall provide Landowner with quarterly statements reflecting the outstanding balance and amounts recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Landowner fails to deliver a written election notice within the thirty (30)-day period specified above, then Landowner shall be deemed to have elected not to consent to the Excess Maintenance Capital Expenditures pursuant to <u>clause (i)</u> above.

Section 2.12 **Operation of Facilities**. Operator shall operate the Facilities and conduct all of its operations and business on the Lands under this Agreement in accordance with all applicable Law, Permits, and Prudent Industry Practices.

Section 2.13 **Sand Mine**. Subject to the terms and conditions of this Agreement and further negotiation and agreement by the Parties on the applicable commercial terms (including royalty rates, option period, surface damages, and permitted uses), Landowner and Operator agree to negotiate in good faith, at any time during the period commencing on the Effective Date and ending on the second (2nd) anniversary of the Effective Date, the terms of an exclusive option (the "**Sand Mine Option**") to be granted by Landowner to Operator for the development, construction, ownership, and operation of sand mining facilities on a portion of the Lands to be mutually agreed upon by the Parties (the "**Sand Mine Facilities**"). If the Parties reach agreement on such terms within such period, the Sand Mine Option shall be set forth in a written amendment to this Agreement or a separate written agreement executed and delivered by the Parties. If the Parties are unable to agree on the terms of the Sand Mine Option within such period, despite good-faith negotiations, neither Party shall have any further obligation to the other with respect to the Sand Mine Facilities under this Agreement. For the avoidance of doubt, no Sand Mine Option or rights with respect to Sand Mine Facilities shall be deemed granted hereunder absent a separate written agreement executed and delivered by both Parties.

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**ARTICLE III** 

**REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS** 

Section 3.1 **Reciprocal Representations and Warranties**. Each Party (such Party, the "**Representing Party**") represents and warrants to the other Party that, as of the Effective Date and as of the execution of each Lease and Easement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization</u>. The Representing Party is duly organized, validly existing and in good standing under the Laws of the State of its formation and is qualified to do business and is in good standing in the State of Texas and State of New Mexico.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority; Binding Effect</u>. The Representing Party has all requisite power and authority to enter into and perform its obligations under this Agreement and the other Transaction Documents and to carry out the transactions contemplated hereby and thereby. The Representing Party has taken (or caused to be taken) all acts required to be taken by it to authorize the execution, delivery and performance by the Representing Party of this Agreement and the other Transaction Documents. This Agreement has been duly executed and delivered by the Representing Party and constitutes its valid and binding obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, moratorium, reorganization or similar Laws affecting the rights of creditors generally and by principles of equity, whether considered in a proceeding at Law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Contravention</u>. The execution, delivery and performance of this Agreement by the Representing Party does not and will not (i) conflict with, or result in, any violation of or constitute a breach or default (with notice or lapse of time, or both) under (A) any provision of its organizational documents, or (B) any Law, court order, agreement, instrument or license applicable to the Representing Party, or (ii) require the submission of any notice, report, consent or other filing with or from any Governmental Authority or other Person, other than such consents that are customarily obtained after the transfer of instruments similar to the Lease or Easement, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance with Laws; Permits</u>. The Representing Party is in material compliance with all applicable Laws, rules and regulations; holds and is in material compliance with the terms of all permits, licenses, leases or other government authorizations required to be obtained or maintained in connection with performance of its obligations under this Agreement, and all such permits are valid and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legal Proceedings</u>. There are no proceedings pending or, to the Representing Party's knowledge, threatened in writing against or affecting the Representing Party before any court, governmental agency, regulatory body or arbitrator that could reasonably be expected to materially adversely affect the ability of the Representing Party to perform its obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Bankruptcy; Solvency</u>. There are no bankruptcy, reorganization or receivership proceedings pending, or, to the Representing Party's actual knowledge, threatened against the Representing Party or an Affiliate of the Representing Party. The Representing Party is not insolvent and will not be rendered insolvent by any of the transactions contemplated by this Agreement.

Section 3.2 **Reporting Requirements**. With respect to all (i) Facilities and (ii) Approved Facilities, Operator shall furnish Landowner upon Landowner's request with reasonable access to the following data and reports within the applicable time frames set forth below, to the extent related to the applicable Facilities located on the Lands and owned or operated by Operator or its Affiliates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reasonably promptly following receipt thereof, copies of all material correspondence received by Operator or its Affiliates from any Governmental Authority, along with any material correspondence (including any reports) sent by Operator or its Affiliates to any Governmental Authority, including, without limitation, correspondence relating to Permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reasonably promptly following receipt thereof, copies of all written notices regarding material violations or potential material violations of, or material liability under, any of Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prompt notice of any (i) incidents involving loss of life or bodily injury or illness at the Facilities or Lands, (ii) incidents involving material damage to, loss of or loss of use of any Facility or other property owned or used on the Lands, (iii) material releases or spills of Produced Water or Hazardous Material or other violation of applicable Environmental Laws and (iv) safety violation or lost-time incident while operating the Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reasonably promptly following the receipt thereof, copies of all claims, demands, or actions or threatened claims, demands or actions, in each case, which are of a material nature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Reasonably promptly following receipt or preparation by Operator or its Affiliates, copies of all surveys, including in a digitally recorded format if such exists;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Daily drilling reports (if any), in Excel format if available, which shall be provided within thirty (30) days after the end of each calendar month; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Promptly following receipt thereof, copies of all material correspondence, notices, reports, and other written communications received or sent by Operator or its Affiliates pursuant to or in connection with the NGL Supply Agreement, including, without limitation, (i) any notice of default, breach, or alleged default or breach under the NGL Supply Agreement, (ii) any notice of termination, expiration, or non-renewal of the NGL Supply Agreement, (iii) any claim, demand, or assertion of rights or remedies by or against NGL, (iv) any request or notice relating to the amendment, modification, or waiver of any term of the NGL Supply Agreement, and (v) any other correspondence that could reasonably be expected to have a material effect on (1) the rights or obligations of Operator under the NGL Supply Agreement, (2) the value of the NGL Supply Agreement to Landowner or (3) Landowner under this Agreement. Operator shall deliver copies of all such correspondence to Landowner within five (5) business days of receipt or transmission, as applicable. Operator shall, upon Landowner's reasonable request, provide Landowner with copies of any other correspondence or communications relating to the NGL Supply Agreement.

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Section 3.3 **NGL Supply Agreement**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Operator represents and warrants to Landowner that (i) the NGL Supply Agreement is in full force and effect, and (ii) neither party under the NGL Supply Agreement is in default thereunder, and no event has occurred that, with the giving of notice or the lapse of time or both, would constitute a default by any party under the NGL Supply Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Operator covenants and agrees that, throughout the Term, Operator shall fully perform and comply with all of its obligations, covenants, and duties under the NGL Supply Agreement, including, without limitation, Operator's obligation to receive and take delivery of water from the NGL pipeline(s) in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [\*\*\*]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [\*\*\*]

**ARTICLE IV** 

**TERM AND TERMINATION** 

Section 4.1 **Term**. The term of this Agreement shall commence on the Effective Date and shall continue until December 31, 2035 (the "**Initial Term**"), except as otherwise provided in this <u>Section</u> <u>4.1</u>. Following the Initial Term, this Agreement shall automatically renew for an additional three (3) year extension term (the "**Extension Term**" and collectively with the Initial Term, the "**Term**") unless either Party provides notice of termination at least one hundred eighty (180) days prior to the expiration of the then-current term. The Parties may mutually agree in writing to terminate this Agreement at any time with respect to all or any portion of the Lands, in which case, <u>Section</u> <u>4.2</u> below shall apply only to such terminated Lands. No Party may terminate this Agreement except as provided in this <u>Article</u> <u>IV</u> and <u>Article</u> <u>V</u>.

Section 4.2 **Effect of Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event this Agreement is terminated in accordance with the terms and conditions of this Agreement, the Parties shall have no further rights or obligations hereunder; *provided*, that (i) no such termination shall relieve any Party of any liabilities or obligations that accrued prior to the date of such termination, (ii) the termination of this Agreement shall not affect any Lease or Easement executed and delivered prior to the date of such termination, and (iii) the provisions of this <u>Section</u> <u>4.2</u>, <u>Section</u> <u>1.2</u>, <u>Section</u> <u>2.4</u>, <u>Section</u> <u>2.5</u>, <u>Section</u> <u>2.7</u>, <u>Section</u> <u>3.2</u>, <u>Article</u> <u>V</u>, <u>Article</u> <u>VI</u>, <u>Article</u> <u>VII</u>, <u>Article</u> <u>VIII</u> and <u>Article</u> <u>IX</u>, together with the definitions in <u>Section</u> <u>1.1</u> used in such Sections and Articles shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the expiration of the Term, Landowner shall have the right, but not the obligation, to be exercised within sixty (60) days after the expiration of the Term by delivering written notice to Operator, to acquire any or all fixtures, equipment, facilities, improvements owned or leased by Operator or its Affiliates that are located on the Lands (the "**Residual Improvements**") for $1,000 free and clear of any liens or encumbrances, and any Residual Improvements that Landowner does not elect to acquire shall, within six (6) months after the expiration of the Term, be removed by Operator, and such Lands shall be remediated and restored to substantially the same condition as existed prior to the installation of such Residual Improvements.

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**ARTICLE V** 

**EVENTS OF DEFAULT** 

Section 5.1 **Landowner Default**. Landowner shall be in default of this Agreement (each, a "**Landowner Default**"): (a) upon an Event of Bankruptcy with respect to Landowner or (b) if Landowner is in material breach of any of its obligations under this Agreement, and Landowner fails to cure such breach within thirty (30) days (or ten (10) days for an obligation to pay any undisputed sums of money owed) following delivery to Landowner of a notice from Operator stating with reasonable particularity the nature and extent of such material breach or if a remedy cannot be effected within such initial thirty (30)-day period, an additional reasonable period no longer than ninety (90) days, *provided*, that Landowner has commenced pursuit of a remedy within the initial thirty (30)-day period and diligently pursues such remedy to completion.

Section 5.2 **Operator Remedies Against Landowner Default**. If a Landowner Default occurs and is uncured and continuing after the cure periods set forth in <u>Section</u> <u>5.1(b)</u>, and without prejudice to any of Operator's other rights under this Agreement or any other Transaction Document, then during the period in which Landowner Default is continuing, Operator shall have the right to take one or more of the following actions: (a) suspend performance under this Agreement and/or the other applicable Transaction Document, *provided*, that this shall not affect any rights or obligations under any Lease or Easement executed and delivered prior to the date of such suspension; (b) pursue specific performance of this Agreement and/or the other applicable Transaction Documents; (c) terminate this Agreement or (d) pursue any and all other rights and remedies available at law or in equity subject however to the limitations in this Agreement.

Section 5.3 **Operator Default**. Operator shall be in default of this Agreement (each, an "**Operator Default**"): (a) upon an Event of Bankruptcy with respect to Operator, (b) if Operator is in material breach of any of its obligations under this Agreement, and Operator fails to cure such breach within thirty (30) days (or ten (10) days for an obligation to pay any undisputed sums of money owed) following delivery to Operator of a written notice from Landowner stating with reasonable particularity the nature and extent of such material breach, or if a remedy cannot be effected within such initial thirty (30)-day period, an additional reasonable period no longer than ninety (90) days, *provided*, that Operator has commenced remedy within the initial thirty (30)-day period and diligently pursues such remedy to completion, (c) if Operator suffers a Change in Control without Landowner's prior written consent as required pursuant to <u>Section</u> <u>9.4(b)</u> (such consent not to be unreasonably withheld, conditioned or delayed) or (d) if Operator or a parent entity thereof sells all or a material portion of its consolidated assets and another entity reasonably satisfactory to Landowner does not assume Operator's obligations under this Agreement.

Section 5.4 **Landowner Remedies Against Operator Default**. If an Operator Default occurs and is uncured and continuing after the cure periods provided in <u>Section</u> <u>5.3(b)</u>, and without prejudice to any of Landowner's other rights under this Agreement or any other Transaction Document, then during the period in which the Operator Default is continuing, Landowner shall have the right to take one or more of the following actions: (a) suspend performance under this Agreement and/or the other applicable Transaction Document, *provided*, that this shall not affect any rights or obligations under any Lease or Easement executed and delivered prior to the date of such suspension; (b) pursue specific performance of this Agreement and/or the other applicable Transaction Documents; (c) terminate this Agreement or (d) pursue any and all other rights and remedies available at law or in equity subject however to the limitations in this Agreement.

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**ARTICLE VI** 

**NOTICES** 

Section 6.1 **Notices**. All notices and communications required or permitted under this Agreement shall be in writing and 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) three (3) business days after deposit with the U.S. Postal Service, certified mail, postage prepaid, return receipt requested; (c) if by email transmission, upon read receipt confirmation by the recipient (with the receiving Party being obligated to respond affirmatively to any read receipt requests delivered by the other Party); or (d) by Federal Express overnight delivery (or other reputable overnight delivery service), two (2) days after deposited with such service. Addresses for all such notices and communication shall be as follows:

---

| | |
|:---|:---|
| To Operator: | Hydrosource Midstream, LLC |
|  | Attn: |
|  | Telephone: |
|  | E-mail: |
|  | and |
|  | Hydrosource Logistics, LLC |
|  | Attn: |
|  | Telephone: |
|  | E-mail: |
| To Landowner: | EagleRock Land Operating, LLC |
|  | Attn: General Counsel |
|  | Telephone: |
|  | E-mail: |

---

Any Party may, upon written notice to the other Party, change the address and Person to whom such communications are to be directed.

Section 6.2 **Reporting**. With respect to any notices, communications and information required to be delivered pursuant to <u>Section</u> <u>3.2</u>, such notices, communications and information shall be sufficient in all respects if given in accordance with <u>Section</u> <u>6.1</u> or if such notice is delivered by email to the address specified for a Person in <u>Section</u> <u>6.1</u>.

**ARTICLE VII** 

**CONFIDENTIALITY** 

Section 7.1 **Non-Disclosure**. Each Receiving Party shall keep confidential and shall not disclose, or permit any of its Disclosure Recipients to disclose, any Confidential Information of the Disclosing Party except as required or reasonably necessary (a) to enforce this Agreement or any other Transaction Document, (b) by Law, (c) to its accountants, auditors, advisors, and/or attorneys that are subject to a professional or other obligation of confidentiality with respect to any

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such disclosed Confidential Information, or (d) to a potential purchaser or financing source in connection with any potential or actual sale of a Party or its applicable Affiliate (or an interest therein), any potential or actual sale or lease of any of such Party's assets subject to this Agreement or any other Transaction Document or any bona fide equity or debt financing transaction, *provided*, that any such recipient is subject to a professional or other obligation of confidentiality with respect to any such disclosed Confidential Information.

Section 7.2 **Required Disclosures**. In the event that any Receiving Party or any of its Disclosure Recipients is required by any Law to disclose Confidential Information to any Governmental Authority, unless otherwise agreed to by the Disclosing Party, prior to such disclosure, such Receiving Party (or its Disclosure Recipients) shall promptly notify the Disclosing Party (to the extent not prohibited by Law from giving notice) in writing of such anticipated disclosure, which notification shall include the nature of the requirement of Law and the extent of the required disclosure and such Receiving Party (or its Disclosure Recipients) shall reasonably cooperate with the Disclosing Party to preserve the confidentiality of such information consistent with Law (including reasonably withholding disclosure of such Confidential Information until such time as it has been finally determined that such disclosure is required under Law). Each Receiving Party shall cause any of its Disclosure Recipients to which it discloses any Confidential Information to hold such information confidential to the same extent as would be required if such Disclosure Recipients were a Party, and no Receiving Party or Disclosure Recipient may use any Confidential Information it receives for any purpose not contemplated by this Agreement.

**ARTICLE VIII** 

**LIABILITY AND INDEMNITY** 

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Section 8.2 **Landowner Indemnity**. To the maximum extent allowed by applicable Law, Landowner shall be solely responsible for, and shall protect, defend, indemnify and hold harmless Operator and its respective directors, managers, officers, agents, employees and Affiliates ("**Operator Group**") from and against any Losses resulting from, arising out of or in any way related to (a) (i) death, injury or illness to any person or loss of or damage to any property, including any death or personal injury or illness or loss or damage to property caused by the act or omission (whether negligent or otherwise), the negligence or breach of statutory duty of any member of Landowner Group (except, in each case, as provided in <u>Section</u> <u>8.1</u>); (ii) any Hazardous Material contamination or other environmental condition caused by any member of Landowner Group, including clean-up actions or remediation work resulting therefrom (except as provided in <u>Section</u> <u>8.1</u>); (iii) claims or investigations by any Governmental Authority arising from or related to the acts or omissions of any member of Landowner Group; or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory brought by a Third Party against any member of Operator Group; (b) Landowner's performance or non-performance of this Agreement; or (c) any breach by Landowner of its representations, warranties or covenants under this Agreement.

Notwithstanding anything to the contrary in this Agreement, the Operator Group shall not be entitled to indemnification under <u>Section</u> <u>8.2(a)(ii)</u> to the extent that any member of Operator Group had knowledge of the facts, circumstances, or conditions giving rise to such claim for indemnification prior to the Effective Date.

Section 8.3 **Exclusive Remedies**. Except to the extent caused by the gross negligence, willful misconduct, willful breach or fraud, the Parties agree that the remedies set forth in this Agreement are the Parties' exclusive remedies at all times for a breach of this Agreement, whether based in contract, tort (including negligence and strict liability), or otherwise.

Section 8.4 **Limitation on Damages**. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, REMOTE OR SPECULATIVE DAMAGES, OR INDIRECT DAMAGES FOR LOST PROFITS OR LOSS OF USE OR BUSINESS OPPORTUNITY (IN ALL CASES EXCEPT TO THE EXTENT CONSTITUTING DAMAGES PAID OR PAYABLE TO AN UNAFFILIATED THIRD PARTY), ARISING UNDER, IN CONNECTION WITH OR IN ANY WAY RELATED TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY, ON BEHALF OF ITSELF AND ITS AFFILIATES, DOES HEREBY WAIVE ANY RIGHT TO RECOVER ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, REMOTE OR SPECULATIVE DAMAGES, OR INDIRECT DAMAGES FOR LOST PROFITS OR LOSS OF USE OR BUSINESS OPPORTUNITY (IN ALL CASES EXCEPT TO THE EXTENT CONSTITUTING DAMAGES PAID OR PAYABLE TO AN UNAFFILIATED THIRD PARTY), ARISING UNDER, IN CONNECTION WITH OR IN ANY WAY RELATED TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY.

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**ARTICLE IX** 

**MISCELLANEOUS** 

Section 9.1 **Applicable Law; Venue**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION OF THE DOMESTIC SUBSTANTIVE LAWS OF ANY OTHER JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE TEXAS BUSINESS COURT DIVISION THAT INCLUDES HARRIS COUNTY, TEXAS (OR, IF SUCH COURT DOES NOT HAVE JURISDICTION, ANY STATE AND FEDERAL COURT LOCATED IN HARRIS COUNTY, TEXAS) AND APPROPRIATE APPELLATE COURTS THEREFROM FOR THE RESOLUTION OF ANY DISPUTE, CONTROVERSY, OR CLAIM ARISING OUT OF OR IN RELATION TO THIS AGREEMENT, AND EACH PARTY HEREBY IRREVOCABLY AGREES THAT ALL ACTIONS, SUITS, AND PROCEEDINGS IN RESPECT OF SUCH DISPUTE, CONTROVERSY, OR CLAIM MAY BE HEARD AND DETERMINED IN SUCH COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, (i) ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH ACTION, SUIT, OR PROCEEDING IN ANY OF THE AFORESAID COURTS, (ii) ANY CLAIM IT MAY NOW OR HEREAFTER HAVE THAT ANY SUCH ACTION, SUIT, OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM, AND (iii) THE RIGHT TO OBJECT, IN CONNECTION WITH SUCH ACTION, SUIT, OR PROCEEDING, THAT ANY SUCH COURT DOES NOT HAVE ANY JURISDICTION OVER SUCH PARTY.

Section 9.2 **Jury Waiver**. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 9.3 **Amendments**. Except as otherwise provided herein, no supplement, amendment, alteration, modification, waiver or termination of this Agreement shall be binding unless executed in writing by the Parties.

Section 9.4 **Assignment; Change in Control of Operator**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assignment</u>. Neither Party may assign any of its rights or obligations under this Agreement or any portion thereof without the prior written consent of the other Party, which consent may not be unreasonably withheld or delayed; *provided*, that such restriction shall not apply to assignments to Affiliates so long as such assignment to an Affiliate includes the assignment of all of the assigning Party's rights and obligations under this Agreement; *provided further* that (i) Landowner may assign its obligations and its rights hereunder to any purchaser or assignee of any portion of the Lands solely to the extent relating to the purchased or assigned portion of the Lands, (ii) Landowner may assign this Agreement as collateral security to a financing entity without the consent of Operator and (iii) Operator may assign its obligations and its rights hereunder to any purchaser or assignee of all or substantially all of its assets subject to this Agreement so long as Operator demonstrates that such purchaser or assignee is a Qualified Midstream Operator.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control of Operator</u>. No Change in Control of Operator shall be permitted without the prior written consent of Landowner (such consent not to be unreasonably withheld, conditioned or delayed). In the event of a Change in Control of Operator, Operator shall provide Landowner with reasonable advance written notice of any proposed Change in Control. Any attempted Change in Control in violation of this provision shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change in Control of Landowner</u>. For the avoidance of doubt, no Change in Control of Landowner shall require consent from Operator, and any such Change in Control shall not constitute a breach or default under this Agreement or give rise to any consent right, termination right, or other remedy in favor of Operator.

Section 9.5 **Disclaimer**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN ANY TRANSACTION DOCUMENT, THERE IS NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND ANY AND ALL IMPLIED WARRANTIES ARE DISCLAIMED. THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) IN FURTHERANCE OF, AND WITHOUT LIMITING, <u>SECTION</u> <u>9.5(A)</u>, THE PARTIES AGREE AND ACKNOWLEDGE THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS, WARRANTIES, COVENANTS AND OBLIGATIONS SET FORTH IN THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS, LANDOWNER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO (I) THE LANDS, INCLUDING ANY TITLE MATTERS, CONDITION, QUALITY, SUITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, USE, ZONING, COMPLIANCE WITH LAWS, AVAILABILITY OR SUFFICIENCY OF PERMITS, ENVIRONMENTAL CONDITION OR ANY OTHER MATTER RELATING THERETO, OR (II) ANY LANDOWNER FACILITIES, INCLUDING ANY CONDITION, QUALITY, SUITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, USE, COMPLIANCE WITH LAWS, AVAILABILITY OR SUFFICIENCY OF PERMITS, ENVIRONMENTAL CONDITION OR ANY OTHER MATTER RELATING THERETO.

Section 9.6 **Financing Cooperation**. In connection with any financing received by Landowner or its Affiliates in connection with Landowner's performance of this Agreement, Operator shall cooperate with and provide reasonable assistance to Landowner and any financing party in relation to their due diligence, financial, technical, scientific, engineering, accounting and environmental studies, monitoring, inspections and audits of the Lands. Operator shall (a) execute and deliver such further instruments and documents, including notices, assignments, acknowledgements, consents and related instruments that may be reasonably requested by any financing party and (b) promptly furnish documents as may reasonably be requested by any financing party to effectuate the purposes of this Agreement.

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Section 9.7 **Change in Law**. If Landowner is required by a Change in Law to incur material fees, taxes, or expenses in connection with Landowner's performance of its obligations under this Agreement or ownership of the Lands or the Landowner Facilities that would not have been incurred by Landowner or its Affiliates in accordance with applicable Law in effect on the Effective Date, then Landowner, in its sole discretion, may notify Operator of such Change in Law and its associated economic impact. Thereafter, Landowner shall have the right to increase any Surface Damages or Royalties or otherwise impose a separate surcharge, in each case, by the amount that, in Landowner's reasonable good faith judgment, is necessary to recover Landowner's proportionate share of such additional costs or expenses with the goal of preserving as closely as possible the economic arrangement prior to the Change in Law; *provided*, that Landowner provides Operator a detailed written explanation of the reasons and calculations for such increased amounts, royalties or fees or separate surcharge, as such increased amounts, royalties, fees or separate surcharge relates to Landowner, at least thirty (30) days prior to the implementation of such additional charge(s).

Section 9.8 **Compliance with Laws and Regulations**. This Agreement shall be subject to all applicable Laws and each Party shall perform its obligations hereunder in accordance with all applicable Laws. Nothing contained herein shall be construed so as to require either Party to perform such acts (or to forego performing any acts) that would cause such Party to violate any such applicable Laws.

Section 9.9 **Anti-Corruption Laws**. Each Party represents that in connection with this Agreement, it has complied, and will comply with, all applicable laws, regulations, rules and requirements of the United States and any other relevant jurisdiction relating to anti-bribery or anti-money laundering and represents that it has not taken and agrees that it will not take any action which would subject the other Party to fines or penalties under such laws, regulations, rules or requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party represents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that it has not in violation thereof, directly or indirectly, paid, offered, given or promised, or authorized
the payments of, any monies or other things of value to; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that it shall not, in violation thereof, directly or indirectly, pay, offer, give or promise to pay or
authorize the payment of, any monies or other things of value to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a government official or an officer or employee of a government or any department, agency or instrumentality of any government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an officer or employee of a public international organization;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any person acting in an official capacity for or on behalf of any government or any department, agency or instrumentality of any government or of any public international organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any political party or official thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any candidate for political office; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any other person, individual or entity at the suggestion, request, or direction, or for the benefit of, any of the above-described persons and entities, in connection with this Agreement.

Section 9.10 **Representative of Landowner and Operator**. At all times, Operator shall have appointed an individual representative ("**Operator's Representative**") authorized and empowered to act for and on behalf of Operator on all matters concerning this Agreement and Operator's obligations hereunder, and Landowner shall have appointed an individual representative ("**Landowner's Representative**") authorized and empowered to act for and on behalf of Landowner on all matters concerning this Agreement and Landowner's obligations hereunder; *provided*, *however*, that neither Operator's Representative nor Landowner's Representative shall have the authority to amend any provision of this Agreement. Either Party may change the identity of its representative by written notification to the other Party. Landowner's Representative may, in its sole discretion, by notice in writing, issue or rescind any previously issued, standing instructions regarding any of Landowner's obligations hereunder.

Section 9.11 **Waiver**. Except as otherwise provided for in this Agreement, a waiver of any of the provisions of this Agreement shall not be deemed or shall not constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver, unless otherwise expressly provided.

Section 9.12 **Relationship of the Parties**. The Parties do not intend to create, and this Agreement shall not be construed to create, a partnership, an association for profit, a trust, agency, joint venture, other relationship of partnership or any fiduciary relationship between the Parties.

Section 9.13 **Employees**; **Independent Contractor**. The relationship of Operator (and its employees, agents, contractors, and subcontractors) to Landowner is that of an independent contractor, and no provision of this Agreement shall be construed to create any employer-employee relationship between Landowner and Operator or any of Operator's employees, agents, contractors, or subcontractors. All persons employed by Operator or its Affiliates in connection with the performance of this Agreement shall be solely and exclusively employees of Operator or its Affiliates, as applicable, and shall not be deemed to be employees of Landowner for any purpose whatsoever. Neither Operator nor any of Operator's employees, agents, contractors, or subcontractors shall be entitled to any benefits provided by Landowner to its employees, including but not limited to workers' compensation, health insurance, retirement benefits, disability benefits, unemployment insurance, vacation, sick leave, or any other employee benefits of any kind. Operator shall be solely responsible for all compensation, benefits, withholdings, employment taxes, and other obligations with respect to its employees, agents, contractors, and subcontractors. Neither Operator nor any of Operator's employees, agents, contractors, or subcontractors shall have any authority to act for, bind, or commit Landowner or any of its Affiliates to any agreements, obligations, or liabilities, or to otherwise represent or hold themselves out as agents, representatives, or employees of Landowner.

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Section 9.14 **Severability**. If any provisions of this Agreement, in whole or in part, are held invalid as a matter of Law, it is the Parties' intent that such holding not affect the other portions of this Agreement, and that such portions that are not invalid be given effect without the invalid portion.

Section 9.15 **Further Assurances**. Each Party shall take such acts and execute and deliver such documents as may be reasonably required to effectuate the purposes of this Agreement.

Section 9.16 **Insurance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Operator shall obtain and maintain insurance policies of the type and in the amounts set forth on <u>Schedule III</u> (the "**Required Insurance**") and shall cause Landowner to be named as an additional insured with respect to each of the Required Insurance policies set forth on <u>Schedule III</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Operator shall cause all Required Insurance policies to contain a waiver of subrogation in favor of Landowner and each member of the Landowner Group with respect to any claims, losses, or liabilities arising out of or related to Operator's operations under this Agreement or the performance of Operator's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prior to commencing any operations on the Lands and annually thereafter (or promptly upon any material change, renewal, or replacement of coverage), Operator shall furnish to Landowner certificates of insurance evidencing the Required Insurance, in a form reasonably acceptable to Landowner. Such certificates shall: (i) identify all policies required under this <u>Section</u> <u>9.16</u>; (ii) confirm that Landowner and the Landowner Group are named as additional insureds as required herein; (iii) confirm the waiver of subrogation in favor of Landowner and the Landowner Group; and (iv) provide that the insurer shall endeavor to provide Landowner with at least thirty (30) days' prior written notice (ten (10) days in the case of non-payment of premium) of any cancellation, material modification, or non-renewal of such policies. Upon Landowner's request, Operator shall provide Landowner with copies of the applicable insurance policies (or relevant excerpts thereof) and endorsements.

Section 9.17 **Counterpart Execution**. This Agreement may be executed in counterparts, each of which shall be deemed an original, and both of which taken together shall constitute one agreement. Delivery of an executed counterpart signature page by PDF is as effective as executing and delivering this Agreement in the presence of the other Party to this Agreement.

Section 9.18 **No Third Party Beneficiaries**. Nothing in this Agreement, express or implied, is intended to confer upon anyone, other than the Parties and their respective successors and permitted assigns, any rights or remedies under or by reason of this Agreement or to constitute any Person as a third party beneficiary of this Agreement.

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Section 9.19 **Time of Essence**. Time is of the essence with respect to the performance by each Party of its obligations under this Agreement.

Section 9.20 **Binding Effect**. This Agreement shall be binding upon and shall inure to the benefit of each of the Parties and their respective Affiliates and each of their respective successors and permitted assigns.

Section 9.21 **Attorney's Fees**. SHOULD EITHER PARTY BE REQUIRED TO RESORT TO EMPLOYMENT OF ATTORNEYS TO ENFORCE THIS AGREEMENT, OR ANY OF ITS RIGHTS UNDER THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENTS, THE SUBSTANTIALLY PREVAILING PARTY SHALL BE ENTITLED TO REIMBURSEMENT FROM THE OTHER PARTY FOR THE SUBSTANTIALLY PREVAILING PARTY'S ATTORNEYS' FEES.

Section 9.22 **Entire Agreement**. This Agreement, the other Transaction Documents, and the exhibits and schedules attached hereto and thereto constitute the entire agreement between the Parties with respect to the transactions contemplated hereunder, and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties with respect to the transactions contemplated hereunder.

Section 9.23 **Joint and Several Liability**. The obligations of Hydrosource Midstream and Hydrosource Logistics shall be joint and several, and each of Hydrosource Midstream and Hydrosource Logistics shall be liable for the full performance of all obligations of Operator under this Agreement.

Section 9.24 **Covenant Running with the Lands**. This Agreement, and the rights granted hereunder and obligations contained herein, shall be covenants running with the Lands and shall be binding upon and inure to the benefit of each of the Parties and their respective successors and permitted assigns. Any sale, conveyance, grant, transfer, assignment or other disposition of all or any portion of the Lands (or the Landowner Facilities) or the Facilities, as applicable, shall be made expressly subject to this Agreement, and this Agreement or the applicable portion hereof shall be assumed by the purchaser or assignee, and both this Agreement and the Lands (or the Landowner Facilities) or the Facilities, as applicable, shall otherwise be sold or assigned in accordance with <u>Section</u> <u>9.4(a)</u>.

Section 9.25 **Recording Memorandum**. Contemporaneously with their execution and delivery of this Agreement, the Parties shall execute a recording memorandum that is substantially identical in form and substance to that attached hereto as <u>Exhibit</u> <u>C</u> (the "**Memorandum**"). Operator may file such Memorandum in the real property records of, as applicable, Andrews, Loving, and Winkler Counties, Texas, and Eddy and Lea Counties, New Mexico, in each applicable case for purposes of conferring constructive public notice of this Agreement. Notwithstanding the foregoing, except as may be required by applicable Law or as mutually agreed in writing by the Parties, neither Party shall file of record in any county or other public records this Agreement, a copy thereof, or any portion thereof (other than the Memorandum). In the event of any conflict between recitations contained in the Memorandum and the provisions contained in this Agreement, the provisions of this Agreement shall control. The execution and recording of the Memorandum shall not limit, increase, or in any manner affect any of the terms of this Agreement, or any rights, interests, or obligations of the Parties.

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Section 9.26 **Conspicuousness**. THE PARTIES AGREE THAT ANY PROVISION OF THIS AGREEMENT THAT IS SET FORTH IN THE STYLE OF THIS <u>SECTION</u> <u>9.26</u> IS CONSPICUOUS.

Section 9.27 **Mutuality of Drafting**. The Parties hereby stipulate and agree that each of them fully participated and was adequately represented by counsel in the negotiation and preparation of this Agreement, and the Parties further stipulate and agree that in the event of an ambiguity or other necessity for interpretation to be made of the content of this Agreement, this Agreement will not be construed in favor of or against Landowner or Operator as a consequence of one Party having had a greater role in the preparation of this Agreement, but will be construed as if the language were mutually drafted by both Parties with full assistance of counsel.

[*Remainder of page intentionally left blank; signature page follows.*]

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This Agreement has been duly executed and delivered by the Parties effective as of the Effective Date.

---

| |
|:---|
| **LANDOWNER:** |
| EAGLEROCK LAND OPERATING, LLC |
| By: |
| Name: |
| Title: |
| **OPERATOR:** |
| HYDROSOURCE MIDSTREAM, LLC |
| By: |
| Name: |
| Title: |
| HYDROSOURCE LOGISTICS, LLC |
| By: |
| Name: |
| Title: |

---

*Signature Page – Produced Water Recycling Rights Agreement* 

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**Schedule 2.4** 

**Surface Damages** 

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**Exhibit A-1** 

**Part 1 – Lands** 

Exhibit A-1-1

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**Part 2 – Solid Waste Facilities** 

**<u>Solid Waste Facility</u>**

Exhibit A-1-2

------

**Exhibit A-2** 

**New Mexico Lands Radius** 

Exhibit A-2-1

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**Exhibit B** 

**Initial Facilities** 

Exhibit B

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**Exhibit C** 

**Recording Memorandum** 

Exhibit C-1

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**Exhibit D** 

**Form of Purchase Order** 

Exhibit D-1

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**Exhibit E** 

**Royalty Scenario Table** 

Exhibit E-1

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**Schedule I** 

**Form of Lease** 

Schedule I-1

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**Schedule II** 

**Form of Easement** 

Schedule II-1

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**Schedule III** 

**Required Insurance** 

Schedule III-1

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**Schedule IV** 

**Conflicting Dedications** 

Schedule IV-1

## Exhibit 10.7

**Exhibit 10.7** 

**FORM OF WATER SYSTEM MANAGEMENT AGREEMENT** 

This WATER SYSTEM MANAGEMENT AGREEMENT (this "**Agreement**") is made and entered into as of , 2026 (the "**Effective Date**") by and between DE IV Flow, LLC, a limited liability company ("**Owner**"), and , a limited liability company ("**Operator**"). Owner and Operator are sometimes referred to herein each individually as a "**Party**" and collectively as the "**Parties**". Capitalized terms used herein that are not defined in the other provisions of this Agreement have the respective meanings set forth in <u>Article</u> <u>I</u>.

**RECITALS:** 

**WHEREAS**, Owner owns the Water System, which provides for the storage, transportation, treatment, processing, disposal, purchase, and sale of water, including produced water, fresh water, blended water, treated water, and recycled water;

**WHEREAS**, Owner and Operator are parties to the Gathering Agreements, pursuant to which Operator is obligated to provide certain water supply, disposal and related services to the Upstream Operators; and

**WHEREAS**, Operator shall provide the Services, including to operate, maintain, repair and optimize the Water System to satisfy Operator's obligations under the Gathering Agreements, in exchange for the consideration to be paid hereunder.

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the Parties hereby agree as follows:

**ARTICLE I** 

**DEFINITIONS; CONSTRUCTION** 

Section 1.1 **Definitions**. The following capitalized terms have the following respective meanings:

"**Affiliate**" unless otherwise provided herein, means (a) with respect to Owner, only Owner and its direct and indirect subsidiaries; and (b) with respect to Operator, only Operator and its direct and indirect subsidiaries (excluding Owner and its direct and indirect subsidiaries); and the term "**Affiliated**" shall have a correlative meaning. For clarity, Owner and Operator shall not be considered Affiliates for purposes of this Agreement.

"**Agreement**" has the meaning set forth in the preamble.

"**Annual Minimum Royalty**" has the meaning set forth in <u>Section</u> <u>2.5(b)</u>.

"**Barrel**" means forty-two (42) U.S. gallons.

"**Brackish Water**" means water with salinity levels between seawater and freshwater.

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"**Change in Control**" means, with respect to a Person, the occurrence of any of the following events: (a) the sale, transfer, or other disposition (in one transaction or a series of related transactions) of all or substantially all of such Person's assets to any other Person; or (b) any merger, consolidation, or other transaction or series of related transactions as a result of which (i) any other Person or group of Persons (other than the then-current equity holders of such Person or their Affiliates) becomes the beneficial owner, directly or indirectly, of more than fifty percent (50%) of the outstanding voting interests or equity securities of such Person, or (ii) such Person is merged or consolidated with or into another Person and, as a result of such merger or consolidation, the equity holders of such Person immediately prior to such transaction do not own more than fifty percent (50%) of the outstanding voting interests or equity securities of the surviving or resulting entity.

"**Change in Law**" means the occurrence of any of the following after the Effective Date: (a) the enactment of any new and applicable Law; (b) the modification of any existing applicable Law; or (c) a change in the interpretation or application of any applicable Law by a Governmental Authority having jurisdiction (including a change resulting from guidance documents or rulings issued by such Governmental Authority), in each such case of clauses (a) through (c) which has a material and adverse impact on the business and day to day operations of Owner or its Affiliates.

"**Claim Notice**" has the meaning set forth in <u>Section</u> <u>2.11</u>.

"**Confidential Information**" means: (a) all information, materials and data provided by one Party or any of its Affiliates (the "**Disclosing Party**") to the other Party or any of its Affiliates (the "**Receiving Party**") under this Agreement or in connection with performance under this Agreement; and (b) the terms of this Agreement. Confidential Information does not include (i) information that was in or comes into the lawful possession of the Receiving Party without confidentiality restrictions at the time of acquiring such information; (ii) information that is or becomes public knowledge without the fault of the Receiving Party; (iii) information that is or becomes available to the Receiving Party on an unrestricted basis from a source having a right to make such disclosure; or (iv) information that is developed by the Receiving Party independent of Confidential Information received hereunder.

"**Contract Year**" means (a) the period commencing on the Effective Date and ending on December 31 of the calendar year in which the Effective Date occurs and (b) each subsequent twelve (12) month period commencing on January 1 and ending on December 31.

"**DE Gathering Agreement Required Connections**" means .

"**DE Gathering Agreements**" means .

"**Deliverables**" has the meaning set forth in <u>Section</u> <u>2.2(b)</u>.

"**Direct Costs**" means all: (a) costs and expenses paid or incurred to purchase and transport Fresh Water sold to generate the Revenue; (b) costs and expenses paid or incurred to treat, recycle and transport recycled water sold to generate the Revenue; (c) costs and expenses paid or incurred to transport and dispose of Produced Water; (d) ad valorem taxes assessed on the Water System; (e) any sales and similar transactional taxes collected from Operator or Owner pursuant to this Agreement and the Gathering Agreements; (f) costs and expenses paid or incurred to operate,

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maintain and repair the Water System or perform the Services, including any Maintenance Capital Expenditures; (g) costs and expenses paid or incurred to respond to an emergency or replace, repair or remediate any assets associated with the Water System that are damaged or destroyed by any casualty loss; (h) any costs or expenses paid or incurred with respect to the Water System that are necessary to comply with Law; (i) any costs or expenses that would constitute direct charges under Council of Petroleum Accountants Society standards; (j) the costs of any general liability insurance, excess liability insurance, business interruption insurance and oil lease property insurance maintained by Operator in connection with Services; and (k) any costs or expenses incurred to comply with the DE Gathering Agreements with respect to the DE Gathering Agreement Required Connections. For the avoidance of doubt, Operator shall be solely responsible for the disbursement of all Direct Costs incurred in connection with the Gathering Agreements or otherwise in accordance with the Services.

"**Disclosure Recipients**" means, with respect to any Receiving Party, such Party's Affiliates, directors, officers, employees, representatives, agents, investors, Lenders, accountants, attorneys or other financial or professional advisors, in each case that receive Confidential Information of the Disclosing Party.

"**Disposal Well**" means a Produced Water injection well and its related facilities and equipment owned by Owner or its Affiliates (or its or their respective successors and permitted assigns) that is permitted by the Railroad Commission of Texas, the New Mexico Oil & Gas Conservation Division, or other applicable Governmental Authority and used to inject Produced Water only into and stored in non-commercial hydrocarbon productive zones or intervals underlying the Water System, but only to the extent that such well has a surface location within the Water System. For the avoidance of doubt, Disposal Wells shall not be used to, and shall not include any wells or related facilities and equipment used to, inject and/or store any non-hydrocarbon gases (including carbon dioxide) or non-oilfield liquid wastes into or beneath the Water System.

"**Due Date**" has the meaning set forth in <u>Section</u> <u>2.7(a)</u>.

"**Effective Date**" has the meaning set forth in the preamble.

"**Environmental Laws**" means any applicable Law that pertains to (a) pollution or pollution control, (b) the protection of the environment (including natural resources and threatened or endangered species) or relating to public or worker health or safety, or (c) the management, transportation, release or disposal of Hazardous Materials and the remediation of contamination in connection with the operations under the Water System, including the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., the Solid Waste Disposal Act (as amended by the Resource Conservation and Recovery Act), 42 U.S.C. § 6901 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq., the Federal Safe Drinking Water Act, 42 U.S.C. §§ 300f-300, the Federal Air Pollution Control Act, 42 U.S.C. § 7401 et seq., the Oil Pollution Act, 33 U.S.C. § 2701 et seq., the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq., the Endangered Species Act, 16 U.S.C. § 1531 et seq., the Clean Air Act, 42 U.S.C. §§ 7401 et seq., Clean Water Act, 33 U.S.C. §§ 1251 et seq., Rivers and Harbors Act, 33 U.S.C. §§ 401 and 40, National Environmental Policy Act, 42 U.S.C. §§ 4321 et seq., Fish & Wildlife Coordination Act, 16 U.S.C. §§ 661 et seq., Resource Conservation & Recovery Act, 42 U.S.C. §§ 6901 et seq., each as amended, and any analogous state Laws, and the regulations and orders promulgated by a Governmental Authority thereunder.

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"**Event of Bankruptcy**" means, with respect to any Party, any of the following: (a) making a general assignment for the benefit of creditors; (b) filing a voluntary petition in bankruptcy; (c) filing a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any bankruptcy, insolvency or other similar law; (d) seeking, consenting to, or acquiescing in the appointment of a trustee, receiver or liquidator of such Party, or of all or any substantial part of its properties or assets under any bankruptcy, insolvency or other similar law; or (e) (i) the passage of one hundred twenty (120) days after the commencement of any involuntary proceeding against such Party, seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any bankruptcy, insolvency or other similar law, if the proceeding has not been dismissed, (ii) the passage of ninety (90) days after the appointment without its consent or acquiescence of a trustee, receiver or liquidator of such Party, or of all or any substantial part of its properties or assets, if the appointment is not vacated or stayed, or (iii) the passage of ninety (90) days after the expiration of any such stay, if the appointment is not vacated.

"**Extension Term**" has the meaning set forth in <u>Section</u> <u>4.1</u>.

"**Fresh Water**" means groundwater that may be produced from any subsurface water-bearing formation or aquifer that may be used in oil and gas operations or for some other beneficial purpose, but excluding Produced Water and Recycled Water.

"**Fresh Water Royalty**" has the meaning set forth in <u>Section</u> <u>2.5(a)(iii)</u>.

"**Gathering Agreements**" means those certain gathering or similar agreements listed on <u>Exhibit A-4</u> attached hereto, as the same may be amended, restated, supplemented, or otherwise modified from time to time. <u>Exhibit A-4</u> shall be deemed automatically updated from time to time to the extent that Owner and Operator enter into any further such agreements following the Effective Date.

"**Governmental Authority**" means (a) any federal, state, local, municipal, tribal or other government, (b) any governmental, regulatory or administrative agency, commission, body or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or other taxing power, and (c) any court or governmental tribunal.

"**Hazardous Material**" means any substance, material, or waste regulated or that may form the basis of liability under, or impose standards of conduct pursuant to, any Environmental Law, including any substance regulated as "hazardous," "toxic," a "pollutant," a "contaminant," a "waste," or words of similar meaning and regulatory effect.

"**Hydrosource**" has the meaning set forth in <u>Section</u> <u>10.4(b)</u>.

"**Initial Term**" has the meaning set forth in <u>Section</u> <u>4.1</u>.

"**Invoice**" has the meaning set forth in <u>Section</u> <u>2.7(a)</u>.

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"**Items**" has the meaning set forth in <u>Section</u> <u>2.2(a)</u>.

"**Law**" means any applicable statute, law (including common law and Environmental Laws), rule, regulation, requirement, ordinance, order, code, ruling, writ, injunction, decree, or other official act of or by any Governmental Authority.

"**Lenders**" means any Person providing financing to Owner or its Affiliates.

"**Maintenance Capital Expenditure**" means any capital expenditures required to maintain, repair or replace any portion of the Water System including: (a) repairing or replacing any portion of the Water System as a result of a casualty loss, (b) bringing the Water System or the operation thereof into compliance with Law, and (c) replacing equipment related to the Water System that is no longer capable of functioning efficiently for its intended use.

"**Midco**" has the meaning set forth in <u>Section</u> <u>10.4(b)</u>.

"**Net Proceeds**" means gross revenue generated from the Water System ("**Revenue**") *minus* Direct Costs incurred in connection with the Water System.

"**Operator**" has the meaning set forth in the preamble.

"**Operating Account**" has the meaning set forth in <u>Section</u> <u>2.3</u>.

"**Operator Default**" has the meaning set forth in <u>Section</u> <u>5.3</u>.

"**Operator Group**" has the meaning set forth in <u>Section</u> <u>8.2</u>.

"**Operator's Representative**" has the meaning set forth in <u>Section</u> <u>10.10</u>.

"**Overdue Rate**" means the lesser of one percent (1%) per month and the maximum rate permitted by Law.

"**Owner**" has the meaning set forth in the preamble.

"**Owner Default**" has the meaning set forth in <u>Section</u> <u>5.1</u>.

"**Owner Group**" has the meaning set forth in <u>Section</u> <u>8.1</u>.

"**Owner-Performance Notice**" has the meaning set forth in Section 2.11.

"**Owner's Representative**" has the meaning set forth in <u>Section</u> <u>10.10</u>.

"**Party**" and "**Parties**" have the meanings set forth in the preamble.

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"**Permit**" means any permit, license, registration, approval, or similar authorization to construct, own, and operate any Water System, or pond, impoundment, tank, or similar structure, equipment or facility for the production, storage, treatment, recycling, transportation, disposal or use of Produced Water or Fresh Water that is validly issued and approved by the Railroad Commission of Texas, the New Mexico Oil Conservation Division, or other Governmental Authority having jurisdiction.

"**Person**" means an individual, a partnership (general, limited or limited liability), a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, any other entity or organization, or a Governmental Authority.

"**Produced Water**" means any produced water, flowback water, brine water, saltwater, associated incidental hydrocarbons, trace amounts of oil industry chemicals or various trace solids, and any other water borne liquid substances generated as waste in connection with drilling for and producing hydrocarbons, but excluding Fresh Water and Recycled Water.

"**Produced Water Royalty**" has the meaning set forth in <u>Section</u> <u>2.5(a)(i)</u>.

"**Prudent Industry Practices**" means that degree of skill, diligence and judgment, and the utilization of practices, methods, techniques and standards, that are generally expected of a reasonably prudent firm engaged in work similar in nature and extent to the management and operation of the Water System hereunder, and acting as a reasonable and prudent operator. Prudent Industry Practices are not limited to the optimum practice or method to the exclusion of others, but rather refer to commonly used and reasonable practices and methods. The Parties acknowledge and agree that actions taken, or not taken, by Operator in reliance on information, opinions, reports or statements of any attorney, public accountant, consulting engineer, engineering, procurement and construction contractor, or other third Person expert, selected by Operator, as to matters which Operator reasonably believes in good faith to be within such Person's professional expert competence, shall be deemed to have been taken, or not taken, in accordance with Prudent Industry Practices.

"**Put Agreement**" has the meaning set forth in <u>Section</u> <u>10.4(b)</u>

"**Recycled Water**" means any water recycled and/or treated for re-use, including all water produced, treated, blended with other water, or recycled.

"**Recycled Water Royalty**" has the meaning set forth in <u>Section</u> <u>2.5(a)(ii)</u>.

"**Representing Party**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

"**Required Insurance**" has the meaning set forth in <u>Section</u> <u>10.16(a)</u>.

"**Retained Operator Amounts**" is defined in <u>Section</u> <u>2.5(a)</u>.

"**Royalty**" means, collectively, the Produced Water Royalty, the Recycled Water Royalty, and the Fresh Water Royalty.

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"**Services**" has the meaning set forth in <u>Section</u> <u>2.1(a)(ii)</u>.

"**Shortfall**" has the meaning set forth in <u>Section</u> <u>2.7(b)</u>.

"**Shortfall Invoice**" has the meaning set forth in <u>Section</u> <u>2.7(b)</u>.

"**Shortfall Report**" has the meaning set forth in <u>Section</u> <u>2.7(b)</u>.

"**Term**" has the meaning set forth in <u>Section</u> <u>4.1</u>.

"**Third Party**" means any Person that is not a Party or an Affiliate of a Party to this Agreement.

"**Third Party Negotiations**" is defined in <u>Section</u> <u>2.1(a)(iv)</u>.

"**Upstream Operators**" means each Person that is a party (other than Owner or Operator) to a Gathering Agreement and that delivers or causes to be delivered Produced Water to the Water System or receives Fresh Water, Recycled Water, or water management or similar services from the Water System pursuant to such Gathering Agreement.

"**Water System**" means, collectively, equipment and facilities owned by Owner or its Affiliates that provide for the storage, transportation, treatment, processing, disposal, purchase and sale of produced water, fresh water, blended, treated and recycled water, including the right to install, maintain, modify, own, operate and remove any facilities, infrastructure and equipment, including Disposal Wells and all water blending, recycling, treatment and handling infrastructure and operations used in connection therewith, described on <u>Exhibit A-1</u> attached hereto, and all extensions thereof and improvements or additions thereto.

Section 1.2 **Construction**. Unless the context otherwise requires: a term has the meaning assigned to it; "or" is not exclusive; words in the singular include the plural, and words in the plural include the singular; provisions apply to successive events and transactions; the words "herein," "hereof" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; all references herein to Articles, Sections, paragraphs, subparagraphs and clauses shall be deemed to be references to Articles, Sections, paragraphs, subparagraphs and clauses of this Agreement unless the context shall otherwise require; the words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation"; the word "extent" in the phrase "to the extent" shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply "if"; references to "$" or "dollars" shall mean United States dollars; unless otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement, instrument or statute that is referred to herein means such agreement, instrument or statute as from time to time amended, restated, waived or otherwise modified or supplemented, including (i) in the case of agreements or instruments and references to all attachments thereto and instruments incorporated therein, by waiver or consent, and (ii) in the case of statutes, by succession of comparable successor statutes.

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**ARTICLE II** 

**WATER SYSTEM OPERATIONS; ACCESS RIGHTS** 

Section 2.1 **Water System Operations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Owner grants, during the term of this Agreement and to the fullest extent permitted by applicable Law, full
authority to Operator to do all things which are necessary and proper to perform the Services and carry out the duties and responsibilities of Owner (or its applicable Affiliate) and Operator under the Gathering Agreements, including the authority
to execute such agreements, permits and other documents and to take such actions as may be necessary or appropriate in Operator's reasonable judgment, for the performance of the Services so long as such activities, agreements, permits and
other documents may be lawfully carried out or performed by Owner; *provided*, *however*, that in no event shall Operator's authority hereunder be greater than or extend beyond applicable Law. Operator may delegate the authority
granted by Owner to Operator pursuant to this <u>Section</u> <u>2.1(a)</u> to contractors, subcontractors, its Affiliates or employees that are necessary or appropriate for the performance of the Services; *provided*, that Operator
shall not permit a contractor or subcontractor to execute any agreement, permit, or other document in the name of Owner. Notwithstanding the foregoing, no such delegation of authority shall relieve Operator of any of its duties, obligations, or
liabilities under this Agreement or the Gathering Agreements, and Operator shall remain fully responsible and liable for the acts, omissions, errors, negligence, and willful misconduct of any contractor, subcontractor, Affiliate, or employee to whom
Operator has delegated any authority or obligation hereunder, to the same extent as if such acts, omissions, errors, negligence, or willful misconduct were those of Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Operator shall operate, maintain, repair, expand, and optimize the Water System (together with all related
pipelines, pumps, tanks, disposal and recycling facilities, intake and delivery points, meters, electrical and control systems, and other appurtenant equipment), all as may be necessary in order to fulfill Owner's and Operator's
responsibilities under the Gathering Agreements (including carrying out the DE Gathering Agreement Required Connections), in each case, subject to the terms of this Agreement, including those services described in <u>Exhibit A-3</u> (the "**Services** "). Neither Party may expand the scope of any of the Services or add any additional services to the Services without the prior written consent of the other Party (acting in
its sole discretion). Except as expressly set forth herein, Operator shall perform the Services and any of its other obligations under this Agreement at its sole cost and expense.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything contained in this Agreement, Owner shall at all times remain the owner of the Water
System (including any expansions thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Operator may engage in negotiations with Third Parties to add such Third Parties as customers to the Water
System, including the negotiation of any new contracts, amendments, extensions, or other agreements with customers of the Water System and any other Third Parties (collectively, "**Third Party Negotiations** "), and Owner shall provide
reasonable support and cooperation to Operator in connection with such Third Party Negotiations. Operator shall keep Owner informed as to the status and progress of all Third Party Negotiations on a regular and ongoing basis, including by providing
Owner with prompt written notice of (A) the commencement of any material Third Party Negotiation, (B) any material developments or proposed terms arising in the course of such Third Party Negotiations, and (C) the conclusion or
termination of any such Third Party Negotiation. For the avoidance of doubt, Operator's authority to conduct Third Party Negotiations pursuant to this <u>Section</u> <u>2.1(a)(iv)</u> shall not be deemed to authorize Operator to
enter into, execute, terminate, novate, amend, or extend any contract with any customer of the Water System (including any Gathering Agreement) or any other agreement of Owner or its Affiliates without the express prior written consent of Owner as
required under <u>Section</u> <u>2.1(d)</u>, such consent not to be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Operator may perform any other services or actions as may be necessary or advisable to: (A) comply with
applicable Law or any contracts or arrangement by which Owner, Operator or the Water System is bound, or (B) address an emergency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Notwithstanding anything contained in this Agreement, unless otherwise mutually agreed between the Parties, in
no event shall the Services include (and Operator shall have no obligation with respect to): (A) any expansions of the Water System (other than the DE Gathering Agreement Required Connections) or (B) any other services Operator is prohibited
from performing under the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Standard of Conduct</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Operator shall (and shall cause any of its Affiliates to, if applicable) perform its obligations under this
Agreement and exercise its rights or powers under this Agreement, in each case, in compliance with this Agreement and the Gathering Agreements and in compliance in all material respects with all applicable Laws, Permits and Prudent Industry
Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Operator shall be responsible for the Services and its performance in accordance with Prudent Industry
Practices, regardless of any failure of any contractor, subcontractor, Affiliate or employee to perform.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Operator</u><u>'</u><u>s Operating Authority</u>. During the Term, Operator shall not undertake any activity that (i) violates any applicable Law in any respect that could have a materially adverse impact on Owner or its business or (ii) violates any contracts (including the Gathering Agreements), leases, orders, security instruments and other agreements to which Owner or any of its Affiliates is a party or by which Owner, its Affiliates or any of its properties is bound in any respect that could have a materially adverse impact on Owner, its Affiliates, the Water System or its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Limitations</u>. During the Term, except to the extent required by applicable Law or otherwise necessary to comply with any contracts or arrangements by which Owner, Operator or the Water System is bound, Operator shall not undertake any of the following activities with respect to its performance under this Agreement without the express prior written consent of Owner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) undertaking any expansion or material alteration or modification of the Water System (other than the DE
Gathering Agreement Required Connections);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) creating or permitting to be incurred any lien on any asset constituting part of the Water System, with the
exception of (A) tax liens created in the ordinary course of business or by operation of law and liens of mechanics and materialmen created in the ordinary course of business or by operation of law or (B) liens which are promptly disputed
by Operator and as to which measures are promptly taken to obtain their removal, all of which liens shall be administered or otherwise addressed by Operator as a reasonable and prudent operator in accordance with Prudent Industry Practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) entering into any settlement agreement or arrangement with respect to litigation matters, proceeding or other
dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) entering into, executing, terminating, novating, amending, or extending any contracts with customers of the
Water System (including any Gathering Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) obtaining, applying for, terminating, surrendering, materially amending, or failing to renew any Permit, or
taking any action or failing to take any action that would reasonably be expected to result in the revocation, suspension, material modification, or non-renewal of any Permit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) entering into any tax settlement agreements or arrangements related to any ad valorem taxes assessed on the
Water System or any sales and similar transactional taxes collected pursuant to this Agreement or the Gathering Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) entering into, amending, extending, renewing, terminating, assigning, consenting to any assignments or
transfers of, issuing change orders under, or waiving any rights or obligations under, any agreement of Owner or its Affiliates or any agreement otherwise related to the Water System;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) granting of powers of attorney with respect to Owner, its Affiliates or the Water System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) (i) lending money to any Person, incurring, guaranteeing, securing or assuming, in one or more transactions
(whether or not related) any indebtedness; (ii) making prepayments or extensions of indebtedness; (iii) obligating or causing Owner or any of its Affiliates to make any expenditures or approve any growth or similar projects; or
(iv) granting any credit support from Owner or its Affiliates or otherwise related to the Water System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) commencing a bankruptcy, winding up, insolvency or reorganization proceeding involving Owner or any of its
Affiliates or otherwise related to the Water System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) changing Owner's or any of its Affiliate's independent public accountants or auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) undertaking any political or lobbying activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) obligating or causing Owner or any of its Affiliates to enter into or modify any commodity, basis differential
or interest rate hedging transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) committing or agreeing to do any of the foregoing activities in clauses (i) through (xvii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Emergencies</u>. Notwithstanding anything herein to the contrary, nothing in this Agreement shall prohibit Operator from taking any actions or performing any operations to the extent reasonably necessary to address an emergency that poses an imminent risk of harm to persons or material damage to property, in which case Operator shall notify Owner as soon as reasonably practicable of such emergency and any associated expenditures.

Section 2.2 **Title, Documents and Data; Records**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Title to all materials, equipment, supplies, consumables, spare parts and other items purchased or obtained by Operator for or on behalf of Owner and its Affiliates (as applicable) ("**Items**"), shall pass to and vest in Owner or its Affiliates (as applicable) free and clear of all liens and encumbrances upon the earlier of payment for or delivery to Owner of such Items and in any event no later than the passage of title from the vendor or supplier thereof. Without limiting the foregoing, wherever possible, Operator shall procure such Items in the name of Owner; *provided*, that if Operator reasonably determines that it is necessary or in the commercial best interest of Owner to acquire Items in the name of Operator as agent for Owner, then Operator (i) may acquire the Items in its name as agent for Owner and thereafter assign and convey to Owner such Items free and clear of all liens and encumbrances upon the earlier of payment for or delivery to Owner of such Items and in any event no later than the passage of title from the vendor or supplier thereof and (ii) shall either (A) assign to Owner the warranties, guarantees and indemnities or (B) if Operator determines such assignment is not practical, enforce such warranties, guarantees and indemnities for the benefit of Owner.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All (i) written materials, data, documents and other work product prepared or developed by Operator, any Affiliate of Operator or their respective employees or contractors during the term of this Agreement for Owner in connection with the performance of the Services, including all manuals, data, designs, drawings, plans, specifications, reports, studies, forecasts, other information (collectively, the "**Deliverables**"), together with all intellectual property rights incorporated or imbedded therein and (ii) Owner accounts, shall belong to Owner; *provided*, *however*, that, for the avoidance of doubt, the Deliverables shall exclude any and all information developed by Operator or its Affiliates related to the upstream oil and gas business. All such Deliverables, in whatever form, including electronic copies and databases, shall be provided promptly to Owner following any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each of Operator and Owner agrees to take such further actions and to execute, acknowledge and deliver all such further documents as are reasonably requested by the other Party giving full effect to the purpose and intent of this <u>Section</u> <u>2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Operator shall prepare and deliver to Owner such Deliverables as Owner may reasonably request and in the form then-currently maintained by Operator or its Affiliates, including reports required (i) under applicable Law, (ii) under any agreements entered into by or on behalf of Owner or in connection with the Water System (including the Gathering Agreements), (iii) by any Lenders, and (iv) regular reports setting forth in reasonable detail (A) the volumes of water on the Water System, (B) revenue generated in connection with the Water System, (C) operating expenses incurred in connection with the Water System, and (D) such other pertinent data and information as may be necessary or appropriate to demonstrate the financial performance of the Water System. Without limiting the foregoing, Operator shall furnish Owner with such other reports, data, and financial information as Owner may request in order to enable Owner to produce (1) monthly financial reports, (2) quarterly unaudited financial statements, and (3) annual audited financial statements, in each case in such form, with such detail, and within such timeframes as Owner may reasonably specify. Operator shall cooperate fully with Owner's independent auditor and shall provide all information, records, documentation, and access reasonably requested by Owner's auditor in connection with the preparation or audit of Owner's financial statements or any other audit or review relating to the Water System or the Services.

Section 2.3 **Operating Accounts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Operator shall establish a bank account or accounts (each, an "**Operating Account**"), which may be subject to encumbrances and control rights of Lenders only. The employees set forth on <u>Exhibit A-5</u> and any replacements thereof approved by Owner in writing (such approval not to be unreasonably withheld, conditioned or delayed) shall be designated as authorized signatories to the Operating Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All revenues attributable to the Water System received by Operator, including all amounts due to Operator under the Gathering Agreements, shall be deposited promptly into the Operating Account. Operator shall have the authority and duty, subject to the terms of this Agreement and the provisions of the Gathering Agreements, to collect all monies due under the Gathering Agreements and any other agreements relating to the Water System and to cause such amounts to be deposited into the Operating Account. Operator shall be responsible for the payment of all Direct Costs from the Operating Account or otherwise incurred in connection with the Gathering Agreements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Operator shall administer the Operating Account and shall pay, from funds available in the Operating Account, all (i) Direct Costs (ii) any other amounts expressly authorized to be paid under this Agreement, in each case, as and when due in accordance with the terms and conditions of this Agreement. Operator shall make no disbursements from the Operating Account except as authorized under this <u>Section</u> <u>2.3</u> and <u>Section</u> <u>2.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Operator shall account to Owner for any expenses pursuant to this Agreement. Such monies of Owner shall be applied only to their intended use and shall in no way be deemed to be funds belonging to Operator (other than the Retained Operator Amounts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Operator shall provide Owner with monthly settlement statements detailing receipt of payments of expenses using funds in the Operating Accounts, prior to the last day of the succeeding calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All interest and other benefits pertaining to the Operating Account belong to Owner.

Section 2.4 **No Services Fee**. For the avoidance of doubt, the only consideration Operator retains under this Agreement is the Retained Operator Amounts. Operator will not receive any incremental services fee or management fee under this Agreement.

Section 2.5 **Royalty; Minimum Royalty**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each month during the Term, as consideration for Owner granting Operator the right to use the Water System to satisfy Operator's obligations under the Gathering Agreements, Operator shall pay to Owner (without duplication) from the Operating Account or otherwise, the following royalties on a monthly basis out of Net Proceeds derived from the Water System (with the other Net Proceeds not payable to Owner hereunder to be disbursed from the Operating Account, and retained by Operator (the "**Retained Operator Amounts**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 90% of the Net Proceeds for each Barrel of Produced Water stored, transported, treated, processed, disposed,
purchased or sold utilizing all or any portion of the Water System ()"**Produced Water Royalty** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 90% of the Net Proceeds for each Barrel of Recycled Water stored, transported, treated, processed, disposed,
purchased or sold utilizing all or any portion of the Water System ()"**Recycled Water Royalty** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) 90% of the Net Proceeds for each Barrel of Fresh Water and Brackish Water stored, transported, treated,
processed, disposed, purchased or sold utilizing all or any portion of the Water System ()"**Fresh Water Royalty** ").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Royalty is subject to an annual guaranteed minimum royalty of: (i) forty million dollars ($40,000,000) during each of the first five (5) Contract Years of the Initial Term, and (ii) ten million dollars ($10,000,000) during each of the last five (5) Contract Years of the Initial Term ((i) and (ii) collectively, as adjusted pursuant to <u>Section</u> <u>2.6</u>, the "**Annual Minimum Royalty**") during the Initial Term; *provided, however*, that if the Royalty paid during any year of the Initial Term exceeds the Annual Minimum Royalty, the excess amount shall be credited to the next succeeding year on a dollar-for-dollar basis.

Section 2.6 **Escalation**. Beginning on the Effective Date, and on each annual anniversary thereafter, the Annual Minimum Royalty shall automatically increase or decrease, as applicable, by the amount of any percentage change of the immediately preceding year (if any), in the Consumer Price Index for All Urban Consumers or its most comparable successor, as published by the Department of Labor or its most comparable successor; *provided*, that any such adjustment shall not exceed three percent (3%) for any Contract Year; *provided, further*, that in no event shall the Annual Minimum Royalty be decreased below the amounts set forth in <u>Section</u> <u>2.5(b)</u>.

Section 2.7 **Payment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Invoices and Due Date</u>. No later than the thirtieth (30th) day following the end of each month during the Term, Operator shall deliver to Owner an invoice ("**Invoice**") setting forth (i) the Produced Water sales, Recycled Water sales and Fresh Water and Brackish Water sales for which the Operator owes a payment to Owner pursuant to <u>Section</u> <u>2.5(a)</u> for such subject month, expressed in Barrels and calculated as provided for in <u>Section</u> <u>2.5(a)(i) – (iii)</u>, as applicable and (ii) the Retained Operator Amounts for such month. Operator shall pay in full from the Operating Account any undisputed amounts due as reflected on the applicable Invoice by check or ACH transfer to Owner's designated bank account on or prior to the date that is sixty (60) days following the end of the month with respect to which such amounts are owed (the "**Due Date**"). If any undisputed amount due hereunder remains unpaid for sixty (60) days after the Due Date for such statement, interest on such amounts will accrue at the Overdue Rate from the Due Date through and including the date the owing Party actually makes payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shortfall Payment</u>. In the event that the aggregate Royalty paid to Owner during any Contract Year is less than the Annual Minimum Royalty (such deficiency, a "**Shortfall**"), Operator shall provide Owner with a written report setting forth in reasonable detail the calculation of such Shortfall (the "**Shortfall Report**"), together with an invoice for the amount of the Shortfall (the "**Shortfall Invoice**"), within thirty (30) days following the end of such Contract Year. Operator shall directly pay to Owner the amount set forth in the Shortfall Invoice from Operator's own funds (and not from the Operating Account) within thirty (30) days following delivery of the Shortfall Report and Shortfall Invoice to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disputes</u>. In the event either Party disputes in good faith all or any portion of an Invoice or Shortfall Invoice, then the undisputed portion, if any, shall be due and payable in accordance with <u>Section</u> <u>2.7(a)</u>. Upon the resolution of the dispute, the non-prevailing Party shall promptly pay the prevailing Party the disputed amount plus interest at the Overdue Rate from the date the disputed payment was originally due pursuant to <u>Section</u> <u>2.7(a)</u> through, and including, the date paid.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Audit</u>. At any time on no less than thirty (30) days' notice (but no more frequently than twice in any twelve (12)-month period), either Party may, at the sole cost and expense of the requesting Party, conduct an audit of the other Party's accounts, invoices and other documents related to the Water System and operations pursuant to this Agreement, including records of Produced Water, Recycled Water and Fresh Water and Brackish Water volumes stored, transported, treated, processed, disposed, purchased and sold in the Water System, or other operations with respect to the Water System and calculation of all or any portion of the Royalty. Such examination shall use electronic records or, solely to the extent original documents are required, take place in the office location where such books and records are kept in the normal course of business; *provided*, that no examination may unreasonably interfere in the ongoing job responsibilities of the personnel of any Party. In the event the Parties mutually determine there was an Operator overpayment, Operator shall be due credit by Owner for the amount of such overpayment on the next succeeding statement following such determination. In the event the Parties mutually determine there was an Operator underpayment, such amount shall be immediately due and payable, and Operator shall pay Owner within thirty (30) days of such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Inspection</u>. Owner shall have the right to access and enter the Water System, improvements, equipment, records at any time and from time to time for the purpose of observing, inspecting, photographing, measuring, and auditing Operator's activities with respect to the Water System and, to verify compliance with this Agreement and applicable Law. Operator shall provide reasonable cooperation to facilitate such inspections, including access to non-privileged books and records directly relating to operations with respect to the Water System. Owner shall at all times observe all posted safety notices and instructions, use required personal protective equipment, and be accompanied by an Operator representative if reasonably required for safety or security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Books and Records</u>. Operator shall keep records and books of account relating to the Services, this Agreement or the Water System in compliance with this Agreement and in compliance in all material respects with all applicable Laws, Permits and Prudent Industry Practices.

Section 2.8 **Reserved**.

Section 2.9 **Taxes**. During the Term of this Agreement, Operator shall timely pay from the Operating Account or otherwise all (1) ad valorem taxes assessed on the Water System to the applicable Governmental Authority and (2) sales and similar transactional taxes collected from Owner or Operator pursuant to the Gathering Agreements to the applicable Governmental Authority, in each case as a Direct Cost. For the avoidance of doubt, such tax payments shall be Operator's independent obligation as operator of the Water System, and Operator shall not be deemed to be collecting or remitting such taxes on behalf of Owner.

Section 2.10 **Maintenance; Maintenance Capital Expenditures**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Operator shall be responsible for the maintenance of the Water System, with such maintenance done in accordance with all applicable Laws, Prudent Industry Practices and otherwise as requested by Owner. Operator shall be responsible for the cost and expense of all such maintenance, except as otherwise provided herein. Operator shall provide Owner with prior written notice in the event that Operator anticipates that the Maintenance Capital Expenditures in any shall exceed $.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Other than any capital expenditures associated with the DE Gathering Agreement Required Connections, Operator shall not incur any capital expenditures without the prior written consent of Owner. Operator shall provide Owner with prior written notice in the event that Operator anticipates that the capital expenditures associated with the DE Gathering Agreement Required Connections in any shall exceed $.

Section 2.11 **Owner Performance Rights**. Without prejudice to any other right or remedy given to Owner or Operator under this Agreement, if there is a dispute pursuant to <u>Section</u> <u>2.7(c)</u> or <u>Section</u> <u>2.7(d)</u> or Operator is otherwise in breach of any of its obligations under this Agreement, including performance of any of the Services, Owner shall provide Operator with a written notice (a "**Claim Notice**") detailing the nature of such claimed failure or breach, and shall provide Operator with an opportunity to discuss such claim with Owner (including an opportunity for Operator to describe why Operator disagrees with such claim). Within thirty (30) Days after receipt of such Claim Notice, if such claimed failure or breach has been adequately remedied or resolved, or continues to dispute with Operator whether such failure or breach occurred, Owner shall give Operator a further written notice of Owner's intent to perform, or cause to be performed by third parties, such obligation or Service of Operator that is the subject of such claim (an "**Owner-Performance Notice**"); *provided*, *however*, if any alleged failure or breach is not reasonably capable of being cured during such thirty (30) Day time period, Owner may not deliver an Owner-Performance Notice until after an additional reasonable period no longer than one-hundred eighty (180) days has elapsed. Following delivery to Operator of such Owner-Performance Notice, Owner shall have the right to perform the applicable obligation or Service or have third parties perform such obligation or Service for so long as is reasonably required to remedy or resolve the applicable failure or breach; *provided*, that Operator shall remain obligated to perform all of its other obligations hereunder. The fact that any such obligation or Service has been performed or caused to be performed by Owner or third parties shall not preclude Operator from disputing the validity of any such claim of failure or breach, provided that Operator provides Owner with a written protest notice that it protests the performance of such obligation or Service by Owner or third parties. Owner or any third party acting on its behalf shall not interfere with any operations of Operator that are not the subject of an Owner-Performance Notice, and Operator shall not be liable under this Agreement for any non-performance to the extent its operations are interfered with by Owner or any third party acting on its behalf outside the scope of any Owner-Performance Notice.

Section 2.12 **Availability of other Rights or Remedies**. The rights of Owner under Section 2.11 do not preclude Owner's exercise of (a) other non-monetary remedies that may be available for such breach, including termination of this Agreement or equitable relief or (b) any remedies (monetary or otherwise) available for other defaults that occur concurrently with, before, or after such breach.

Section 2.13 **Access to Water System**. Operator and its Affiliates and other Persons engaged by Operator to perform the Services (and their respective employees and agents) shall at all times during their performance of the Services have full and free access to the Water System and Owner personnel as necessary to perform the Services. Owner and its designated representatives shall have access to the Water System at all times. Notwithstanding this <u>Section</u> <u>2.13</u> and the appointment of Operator hereunder to provide the Services, Owner retains the right to grant its Affiliates or any Third Parties access to and use of the Water System at all times, so long as such access or use does not cause Operator to breach its obligations under this Agreement or the Gathering Agreements.

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**ARTICLE III** 

**REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS** 

Section 3.1 **Reciprocal Representations and Warranties**. Each Party (such Party, the "**Representing Party**") represents and warrants to the other Party that, as of the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization</u>. The Representing Party is duly organized, validly existing and in good standing under the Laws of the State of its formation and is qualified to do business and is in good standing in the State of Texas and State of New Mexico.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority; Binding Effect</u>. The Representing Party has all requisite power and authority to enter into and perform its obligations under this Agreement and to carry out the transactions contemplated hereby and thereby. The Representing Party has taken (or caused to be taken) all acts required to be taken by it to authorize the execution, delivery and performance by the Representing Party of this Agreement. This Agreement has been duly executed and delivered by the Representing Party and constitutes its valid and binding obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, moratorium, reorganization or similar Laws affecting the rights of creditors generally and by principles of equity, whether considered in a proceeding at Law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Contravention</u>. The execution, delivery and performance of this Agreement by the Representing Party does not and will not (i) conflict with, or result in, any violation of or constitute a breach or default (with notice or lapse of time, or both) under (A) any provision of its organizational documents, or (B) any Law, court order, agreement, instrument or license applicable to the Representing Party, or (ii) require the submission of any notice, report, consent or other filing with or from any Governmental Authority or other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Legal Proceedings</u>. There are no proceedings pending or, to the Representing Party's knowledge, threatened in writing against or affecting the Representing Party before any court, governmental agency, regulatory body or arbitrator that could reasonably be expected to materially adversely affect the ability of the Representing Party to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Bankruptcy; Solvency</u>. There are no bankruptcy, reorganization or receivership proceedings pending, or, to the Representing Party's actual knowledge, threatened against the Representing Party or an Affiliate of the Representing Party. The Representing Party is not insolvent and will not be rendered insolvent by any of the transactions contemplated by this Agreement.

Section 3.2 **Reporting Requirements**. With respect to the Water System, Operator shall furnish Owner with the following data and reports within the applicable time frames set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reasonably promptly following receipt thereof, copies of all material correspondence received by Operator or its Affiliates from any Governmental Authority, along with any material correspondence (including any reports) sent by Operator or its Affiliates to any Governmental Authority, including, without limitation, correspondence relating to Permits;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reasonably promptly following receipt thereof, copies of all written notices regarding material violation or potential material violation of, or material liability under, any Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly following Operator becoming aware thereof, notice of any (i) incidents involving loss of life or bodily injury or illness at the Water System, (ii) incidents involving material damage to, loss of or loss of use of any property owned or used on the Water System, and (iii) material releases or spills of Produced Water or Hazardous Material or other violation of applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reasonably promptly following the receipt thereof, copies of all claims, demands, or actions or threatened claims, demands or actions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Reasonably promptly following receipt or preparation by Operator or its Affiliates, copies of all surveys, including in a digitally recorded format if such exists; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Daily drilling reports (if any), in Excel format if available, which shall be provided within thirty (30) days after the end of each calendar month.

**ARTICLE IV** 

**TERM AND TERMINATION** 

Section 4.1 **Term**. The term of this Agreement shall commence on the Effective Date and shall continue until December 31, 2035 (the "**Initial Term**"), except as otherwise provided in this <u>Section</u> <u>4.1</u>. Following the Initial Term, this Agreement shall automatically renew for an additional three (3) year extension term (the "**Extension Term**" and collectively with the Initial Term, the "**Term**") unless either Party provides notice of termination at least one hundred eighty (180) days prior to the expiration of the then-current term. The Parties may mutually agree in writing to terminate this Agreement at any time. No Party may terminate this Agreement except as provided in this <u>Article</u> <u>IV</u> and <u>Article</u> <u>V</u>.

Section 4.2 **Effect of Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event this Agreement is terminated in accordance with the terms and conditions of this Agreement, the Parties shall have no further rights or obligations hereunder; *provided*, that no such termination shall relieve any Party of any liabilities or obligations that accrued prior to the date of such termination and the provisions of this <u>Section</u> <u>4.2</u>, <u>Section</u> <u>1.2</u>, <u>Section</u> <u>2.4</u>, <u>Section</u> <u>2.5</u>, <u>Section</u> <u>2.6</u>, <u>Section</u> <u>2.7</u>, <u>Section</u> <u>3.2</u>, <u>Article</u> <u>V</u>, <u>Article</u> <u>VI</u>, <u>Article</u> <u>VII</u>, <u>Article</u> <u>VIII</u> and <u>Article</u> <u>X</u>, together with the definitions in <u>Section</u> <u>1.1</u> used in such Sections and Articles shall survive the termination of this Agreement.

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**ARTICLE V** 

**EVENTS OF DEFAULT** 

Section 5.1 **Owner Default**. Owner shall be in default of this Agreement (each, a "**Owner Default**"): (a) upon an Event of Bankruptcy with respect to Owner or (b) if Owner is in material breach of any of its obligations under this Agreement, and Owner fails to cure such breach within thirty (30) days (or ten (10) days for an obligation to pay any undisputed sums of money owed) following delivery to Owner of a notice from Operator stating with reasonable particularity the nature and extent of such material breach or if a remedy cannot be effected within such initial thirty (30)-day period, an additional reasonable period no longer than ninety (90) days, *provided*, that Owner has commenced pursuit of a remedy within the initial thirty (30)-day period and diligently pursues such remedy to completion.

Section 5.2 **Operator Remedies Against Owner Default**. If an Owner Default occurs and is uncured and continuing after the cure periods set forth in <u>Section</u> <u>5.1(b)</u>, and without prejudice to any of Operator's other rights under this Agreement, then during the period in which Owner Default is continuing, Operator shall have the right to take one or more of the following actions: (a) suspend performance under this Agreement; (b) pursue specific performance of this Agreement; (c) terminate this Agreement; or (d) pursue any and all other rights and remedies available at law or in equity subject however to the limitations in this Agreement.

Section 5.3 **Operator Default**. Operator shall be in default of this Agreement (each, an "**Operator Default**"): (a) upon an Event of Bankruptcy with respect to Operator, (b) if Operator is in material breach of any of its obligations under this Agreement, and Operator fails to cure such breach within thirty (30) days (or ten (10) days for an obligation to pay any undisputed sums of money owed) following delivery to Operator of a written notice from Owner stating with reasonable particularity the nature and extent of such material breach, or if a remedy cannot be effected within such initial thirty (30)-day period, an additional reasonable period no longer than ninety (90) days, *provided*, that Operator has commenced remedy within the initial thirty (30)-day period and diligently pursues such remedy to completion, (c) Operator is in default under any of the Gathering Agreements, (d) if Operator suffers a Change in Control without the Owner's prior written consent as required pursuant to <u>Section</u> <u>10.4(b)</u> (such consent not to be unreasonably withheld, conditioned or delayed) or (e) if Operator, a parent entity thereof or a "Producer" entity (as defined in either of the DE Gathering Agreements) sells all or substantially all of its consolidated assets and another entity reasonably satisfactory to Owner does not assume Operator's obligations under this Agreement.

Section 5.4 **Owner Remedies Against Operator Default**. If an Operator Default occurs and is uncured and continuing after the cure periods (if any) provided in <u>Section</u> <u>5.3(b)</u> or <u>Section</u> <u>5.3(c)</u>, and without prejudice to any of Owner's other rights under this Agreement, then during the period in which the Operator Default is continuing, Owner shall have the right to take one or more of the following actions: (a) suspend performance under this Agreement; (b) pursue specific performance of this Agreement; (c) terminate this Agreement; or (d) pursue any and all other rights and remedies available at law or in equity subject however to the limitations in this Agreement.

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**ARTICLE VI** 

**NOTICES** 

Section 6.1 **Notices**. All notices and communications required or permitted under this Agreement shall be in writing and 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) three (3) business days after deposit with the U.S. Postal Service, certified mail, postage prepaid, return receipt requested; (c) if by email transmission, upon read receipt confirmation by the recipient (with the receiving Party being obligated to respond affirmatively to any read receipt requests delivered by the other Party); or (d) by Federal Express overnight delivery (or other reputable overnight delivery service), two (2) days after deposited with such service. Addresses for all such notices and communication shall be as follows:

To Operator:

Attn: <br>

Telephone:

E-mail: <br>

To Owner: DE IV Flow, LLC

Attn: <br>

Telephone:

E-mail: <br>

Any Party may, upon written notice to the other Party, change the address and Person to whom such communications are to be directed.

Section 6.2 **Reporting**. With respect to any notices, communications and information required to be delivered pursuant to <u>Section</u> <u>3.2</u>, such notices, communications and information shall be sufficient in all respects if given in accordance with <u>Section</u> <u>6.1</u> or if such notice is delivered by email to the address specified for a Person in <u>Section</u> <u>6.1</u>.

**ARTICLE VII** 

**CONFIDENTIALITY** 

Section 7.1 **Non-Disclosure**. Each Receiving Party shall keep confidential and shall not disclose, or permit any of its Disclosure Recipients to disclose, any Confidential Information of the Disclosing Party except as required or reasonably necessary (a) to enforce this Agreement, (b) by Law, (c) to Disclosure Recipients that are subject to a professional or other obligation of confidentiality with respect to any such disclosed Confidential Information, or (d) to a potential purchaser or financing source in connection with any potential or actual sale of a Party or its applicable Affiliate (or an interest therein), any potential or actual sale or lease of any of such Party's assets subject to this Agreement or any bona fide equity or debt financing transaction, provided, that any such recipient is subject to a professional or other obligation of confidentiality with respect to any such disclosed Confidential Information. The terms and provision of this <u>Section</u> <u>7.1</u> shall terminate on the date that is two (2) years following the termination of this Agreement.

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Section 7.2 **Required Disclosures**. In the event that any Receiving Party or any of its Disclosure Recipients is required by any Law to disclose Confidential Information to any Governmental Authority, unless otherwise agreed to by the Disclosing Party, prior to such disclosure, such Receiving Party (or its Disclosure Recipients) shall promptly notify the Disclosing Party (to the extent not prohibited by Law from giving notice) in writing of such anticipated disclosure, which notification shall include the nature of the requirement of Law and the extent of the required disclosure and such Receiving Party (or its Disclosure Recipients) shall reasonably cooperate with the Disclosing Party to preserve the confidentiality of such information consistent with Law (including reasonably withholding disclosure of such Confidential Information until such time as it has been finally determined that such disclosure is required under Law). Each Receiving Party shall cause any of its Disclosure Recipients to which it discloses any Confidential Information to hold such information confidential to the same extent as would be required if such Disclosure Recipients were a Party, and no Receiving Party or Disclosure Recipient may use any Confidential Information it receives for any purpose not contemplated by this Agreement.

**ARTICLE VIII** 

**LIABILITY AND INDEMNITY** 

Section 8.1 **Operator Indemnity**. To the maximum extent allowed by applicable Law, Operator shall be solely responsible for, and shall protect, defend, indemnify and hold harmless Owner and its respective directors, managers, officers, agents, employees and Affiliates ("**Owner Group**") from and against any Losses resulting from, arising out of or in any way related to (a) Operator Group's presence at or operation of the Water System or its activities pursuant to this Agreement or performance of the Services, including (i) death, injury or illness to any person or loss of or damage to any property, including any death or personal injury or illness or loss or damage to property caused by the act or omission (whether negligent or otherwise), the negligence or breach of statutory duty of any member of Operator Group (except, in each case, as provided in <u>Section</u> <u>8.2</u>); (ii) any Hazardous Material contamination or other environmental condition, including clean-up actions or remediation work resulting therefrom, whether now known or hereafter discovered; (iii) claims or investigations by any Governmental Authority or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory brought by a Third Party against any member of Operator Group, (b) Operator's performance or non-performance of this Agreement (including causing any breach or other performance failure of Owner under any Gathering Agreement) or (c) Operator's breach of any of Operator's obligations under the Gathering Agreements.

Section 8.2 **Owner Indemnity**. To the maximum extent allowed by applicable Law, Owner shall be solely responsible for, and shall protect, defend, indemnify and hold harmless Operator and its respective directors, managers, officers, agents, employees and Affiliates ("**Operator Group**") from and against any Losses resulting from, arising out of or in any way related to (a) the death, injury or illness to any person or loss of or damage to any property, caused by the act or omission (whether negligent or otherwise), the negligence or breach of statutory duty of Owner or otherwise caused in connection with Owner's access to the Water System as described in <u>Section</u> <u>2.7(e)</u> or <u>Section</u> <u>2.13</u> (except, in each case, as provided in <u>Section</u> <u>8.1</u>) or (b) Owner's performance or non-performance of this Agreement.

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Section 8.3 **Exclusive Remedies**. Except to the extent caused by the gross negligence, willful misconduct, willful breach or fraud, the Parties agree that the remedies set forth in this Agreement are the Parties' exclusive remedies at all times for a breach of this Agreement, whether based in contract, tort (including negligence and strict liability), or otherwise.

Section 8.4 **Limitation on Damages**. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, REMOTE OR SPECULATIVE DAMAGES, OR INDIRECT DAMAGES FOR LOST PROFITS OR LOSS OF USE OR BUSINESS OPPORTUNITY (IN ALL CASES EXCEPT TO THE EXTENT CONSTITUTING DAMAGES PAID OR PAYABLE TO AN UNAFFILIATED THIRD PARTY), ARISING UNDER, IN CONNECTION WITH OR IN ANY WAY RELATED TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY, ON BEHALF OF ITSELF AND ITS AFFILIATES, DOES HEREBY WAIVE ANY RIGHT TO RECOVER ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, REMOTE OR SPECULATIVE DAMAGES, OR INDIRECT DAMAGES FOR LOST PROFITS OR LOSS OF USE OR BUSINESS OPPORTUNITY (IN ALL CASES EXCEPT TO THE EXTENT CONSTITUTING DAMAGES PAID OR PAYABLE TO AN UNAFFILIATED THIRD PARTY), ARISING UNDER, IN CONNECTION WITH OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

**ARTICLE IX** 

**WARRANTY/CLAIMS** 

Section 9.1 **Warranties**. Operator shall (i) use commercially reasonable efforts to secure from vendors, suppliers and contractors, in favor of Owner and for Owner's benefit, such warranties and guarantees as may reasonably be available regarding Items and services purchased by Operator for the Water System or for Owner in connection with the Services and (ii) in accordance with Prudent Industry Practices, enforce such warranties and guarantees (including enforcing all rights associated therewith, including warranty claims and audit rights) on behalf of Owner. With respect to any Items or services obtained by Operator from vendors, suppliers and contractors in accordance with this Agreement, the only warranties, if any, applicable thereto and available to Owner shall be those offered by such vendors, suppliers and contractors.

Section 9.2 WITHOUT LIMITING OPERATOR'S OBLIGATIONS PURSUANT TO <u>SECTION</u> <u>2.1(B)</u>, OPERATOR'S ONLY OBLIGATION IN RESPECT OF ANY WARRANTY PROVIDED BY A VENDOR, SUPPLIER OR CONTRACTOR WITH RESPECT TO ITEMS OR SERVICES OBTAINED BY OPERATOR FROM SUCH VENDORS, SUPPLIERS AND CONTRACTORS OR BREACH THEREOF SHALL BE TO ACT FOR OWNER'S INTEREST IN ENFORCEMENT OF SUCH WARRANTIES AND USE DILIGENT EFFORTS TO ENFORCE SUCH WARRANTIES; *PROVIDED*, THAT OPERATOR SHALL NOT HAVE THE RIGHT TO COMPROMISE ANY WARRANTY CLAIM BY SETTLING IT FOR LESS THAN THE FULL VALUE OF SUCH CLAIM WITHOUT OWNER'S PRIOR WRITTEN CONSENT.

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Section 9.3 **Claims**. Except for Losses covered by the indemnification procedures set forth in <u>Article</u> <u>VIII</u>, any and all claims against Owner instituted by anyone other than Operator arising out of the performance of the Services that are not covered by insurance in accordance with <u>Section</u> <u>10.16</u> shall be settled or litigated and defended by Operator in accordance with Prudent Industry Practices. Operator shall provide written notice to Owner as soon as practicable of any claims instituted against Owner (regardless of the amount or nature of the claim). Operator shall not commence, release, compromise or settle any litigation or other dispute resolution procedure against another Person unless Operator receives Owner's written approval.

**ARTICLE X** 

**MISCELLANEOUS** 

Section 10.1 **Applicable Law; Venue**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION OF THE DOMESTIC SUBSTANTIVE LAWS OF ANY OTHER JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE TEXAS BUSINESS COURT DIVISION THAT INCLUDES HARRIS COUNTY, TEXAS (OR, IF SUCH COURT DOES NOT HAVE JURISDICTION, ANY STATE AND FEDERAL COURT LOCATED IN HARRIS COUNTY, TEXAS) AND APPROPRIATE APPELLATE COURTS THEREFROM FOR THE RESOLUTION OF ANY DISPUTE, CONTROVERSY, OR CLAIM ARISING OUT OF OR IN RELATION TO THIS AGREEMENT, AND EACH PARTY HEREBY IRREVOCABLY AGREES THAT ALL ACTIONS, SUITS, AND PROCEEDINGS IN RESPECT OF SUCH DISPUTE, CONTROVERSY, OR CLAIM MAY BE HEARD AND DETERMINED IN SUCH COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, (i) ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH ACTION, SUIT, OR PROCEEDING IN ANY OF THE AFORESAID COURTS, (ii) ANY CLAIM IT MAY NOW OR HEREAFTER HAVE THAT ANY SUCH ACTION, SUIT, OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM, AND (iii) THE RIGHT TO OBJECT, IN CONNECTION WITH SUCH ACTION, SUIT, OR PROCEEDING, THAT ANY SUCH COURT DOES NOT HAVE ANY JURISDICTION OVER SUCH PARTY.

Section 10.2 **Jury Waiver**. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 10.3 **Amendments**. Except as otherwise provided herein, no supplement, amendment, alteration, modification, waiver or termination of this Agreement shall be binding unless executed in writing by the Parties.

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Section 10.4 **Assignment; Put Agreement**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assignment</u>. Neither Party may assign any of its rights or obligations under this Agreement or any portion thereof without the prior written consent of the other Party, which consent may not be unreasonably withheld or delayed; *provided*, that such restriction shall not apply to assignments to Affiliates so long as such assignment to an Affiliate includes the assignment of all of the assigning Party's rights and obligations under this Agreement; *provided further* that in the case of Owner, (i) Owner may assign its obligations and its rights hereunder to any purchaser or assignee of any portion of the Water System solely to the extent relating to the purchased or assigned portion of the Water System and (ii) Owner may assign this Agreement as collateral security to a financing entity without the consent of Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Put Agreement</u>. The Parties hereby acknowledge and agree that Double Eagle IV Midco, LLC, a Delaware limited liability company ("**Midco**"), and Hydrosource Logistics, LLC, a Texas limited liability company ("**Hydrosource**") have entered into that certain Put Option Agreement dated as of even date herewith (the "**Put Agreement**"), pursuant to which Midco has the option to cause Hydrosource to purchase all of the outstanding equity interests of Operator pursuant to the terms and conditions set forth in the Put Agreement. Owner hereby consents to the transactions contemplated by the Put Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change in Control of Owner</u>. For the avoidance of doubt, no Change in Control of Owner shall require consent from Operator, and any such Change in Control shall not constitute a breach or default under this Agreement or give rise to any consent right, termination right, or other remedy in favor of Operator.

Section 10.5 **Disclaimer**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) EXCEPT AS EXPRESSLY SET FORTH HEREIN, THERE IS NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND ANY AND ALL IMPLIED WARRANTIES ARE DISCLAIMED. THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) IN FURTHERANCE OF, AND WITHOUT LIMITING, <u>SECTION</u> <u>10.5(A)</u>, THE PARTIES AGREE AND ACKNOWLEDGE THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS, WARRANTIES, COVENANTS AND OBLIGATIONS SET FORTH IN THIS AGREEMENT, OWNER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO THE WATER SYSTEM, INCLUDING ANY CONDITION, QUALITY, SUITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, USE, COMPLIANCE WITH LAWS, AVAILABILITY OR SUFFICIENCY OF PERMITS, ENVIRONMENTAL CONDITION OR ANY OTHER MATTER RELATING THERETO.

Section 10.6 **Reserved**.

Section 10.7 **Change in Law**. If either Party is required by a Change in Law to incur material fees, taxes, or expenses in connection with Operator's performance of its obligations under this Agreement or ownership of the Water System that would not have been incurred by Operator or its Affiliates or Owner or its Affiliates in accordance with applicable Law in effect on

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the Effective Date, then either Party may notify the other Party of such Change in Law and its associated economic impact. Upon delivery of such notice, the Parties shall, within thirty (30) days, commence good faith negotiations with the objective of amending or modifying this Agreement so as to restore each Party, to the greatest extent reasonably practicable, to the same relative economic position that such Party would have occupied had the Change in Law not occurred. Each Party shall make available to the other such information as may be reasonably necessary to evaluate the economic impact of the Change in Law and to facilitate the negotiation of appropriate adjustments.

Section 10.8 **Compliance with Laws and Regulations**. This Agreement shall be subject to all applicable Laws and each Party shall perform its obligations hereunder in accordance with all applicable Laws. Nothing contained herein shall be construed so as to require either Party to perform such acts (or to forego performing any acts) that would cause such Party to violate any such applicable Laws.

Section 10.9 **Anti-Corruption Laws**. Each Party represents that in connection with this Agreement, it has complied, and will comply with, all applicable laws, regulations, rules and requirements of the United States and any other relevant jurisdiction relating to anti-bribery or anti-money laundering and represents that it has not taken and agrees that it will not take any action which would subject the other Party to fines or penalties under such laws, regulations, rules or requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party represents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that it has not in violation thereof, directly or indirectly, paid, offered, given or promised, or authorized
the payments of, any monies or other things of value to; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that it shall not, in violation thereof, directly or indirectly, pay, offer, give or promise to pay or
authorize the payment of, any monies or other things of value to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a government official or an officer or employee of a government or any department, agency or instrumentality of any government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an officer or employee of a public international organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any person acting in an official capacity for or on behalf of any government or any department, agency or instrumentality of any government or of any public international organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any political party or official thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any candidate for political office; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any other person, individual or entity at the suggestion, request, or direction, or for the benefit of, any of the above-described persons and entities, in connection with this Agreement.

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Section 10.10 **Representative of Owner and Operator**. At all times, Operator shall have appointed an individual representative ("**Operator's Representative**") authorized and empowered to act for and on behalf of Operator on all matters concerning this Agreement and Operator's obligations hereunder, and Owner shall have appointed an individual representative ("**Owner's Representative**") authorized and empowered to act for and on behalf of Owner on all matters concerning this Agreement and Owner's obligations hereunder; *provided*, *however*, that neither Operator's Representative nor Owner's Representative shall have the authority to amend any provision of this Agreement. Either Party may change the identity of its representative by written notification to the other Party. Owner's Representative may, in its sole discretion, by notice in writing, issue or rescind any previously issued, standing instructions regarding any of Owner's obligations hereunder.

Section 10.11 **Waiver**. Except as otherwise provided for in this Agreement, a waiver of any of the provisions of this Agreement shall not be deemed or shall not constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver, unless otherwise expressly provided.

Section 10.12 **Relationship of the Parties**. The Parties do not intend to create, and this Agreement shall not be construed to create, a partnership, an association for profit, a trust, agency, joint venture, other relationship of partnership or any fiduciary relationship between the Parties.

Section 10.13 **Employees**; **Independent Contractor**. The relationship of Operator (and its employees, agents, contractors, and subcontractors) to Owner is that of an independent contractor, and no provision of this Agreement shall be construed to create any employer-employee relationship between Owner and Operator or any of Operator's employees, agents, contractors, or subcontractors. All persons employed by Operator or its Affiliates in connection with the performance of this Agreement shall be solely and exclusively employees of Operator or its Affiliates, as applicable, and shall not be deemed to be employees of Owner for any purpose whatsoever. Neither Operator nor any of Operator's employees, agents, contractors, or subcontractors shall be entitled to any benefits provided by Owner to its employees, including but not limited to workers' compensation, health insurance, retirement benefits, disability benefits, unemployment insurance, vacation, sick leave, or any other employee benefits of any kind. Operator shall be solely responsible for all compensation, benefits, withholdings, employment taxes, and other obligations with respect to its employees, agents, contractors, and subcontractors. Neither Operator nor any of Operator's employees, agents, contractors, or subcontractors shall have any authority to act for, bind, or commit Owner or any of its Affiliates to any agreements, obligations, or liabilities, or to otherwise represent or hold themselves out as agents, representatives, or employees of Owner.

Section 10.14 **Severability**. If any provisions of this Agreement, in whole or in part, are held invalid as a matter of Law, it is the Parties' intent that such holding not affect the other portions of this Agreement, and that such portions that are not invalid be given effect without the invalid portion.

Section 10.15 **Further Assurances**. Each Party shall take such acts and execute and deliver such documents as may be reasonably required to effectuate the purposes of this Agreement.

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Section 10.16 **Insurance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Operator shall obtain and maintain insurance policies of the type and in the amounts set forth on <u>Exhibit A-2</u> (the "**Required Insurance**") and shall cause Owner to be named as an additional insured with respect to each of the Required Insurance policies set forth on <u>Exhibit A-2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Operator shall cause all Required Insurance policies to contain a waiver of subrogation in favor of Owner and each member of the Owner Group with respect to any claims, losses, or liabilities arising out of or related to Operator's operations under this Agreement or the performance of Operator's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prior to commencing any operations on the Water System and annually thereafter (or promptly upon any material change, renewal, or replacement of coverage), Operator shall furnish to Owner certificates of insurance evidencing the Required Insurance, in a form reasonably acceptable to Owner. Such certificates shall: (i) identify all policies required under this <u>Section</u> <u>10.16</u>; (ii) confirm that Owner and the Owner Group are named as additional insureds as required herein; (iii) confirm the waiver of subrogation in favor of Owner and the Owner Group; and (iv) provide that the insurer shall endeavor to provide Owner with at least thirty (30) days' prior written notice (ten (10) days in the case of non-payment of premium) of any cancellation, material modification, or non-renewal of such policies. Upon Owner's request, Operator shall provide Owner with copies of the applicable insurance policies (or relevant excerpts thereof) and endorsements.

Section 10.17 **Counterpart Execution**. This Agreement may be executed in counterparts, each of which shall be deemed an original, and both of which taken together shall constitute one agreement. Delivery of an executed counterpart signature page by PDF is as effective as executing and delivering this Agreement in the presence of the other Party to this Agreement.

Section 10.18 **No Third Party Beneficiaries**. Nothing in this Agreement, express or implied, is intended to confer upon anyone, other than the Parties and their respective successors and permitted assigns, any rights or remedies under or by reason of this Agreement or to constitute any Person as a third party beneficiary of this Agreement.

Section 10.19 **Time of Essence**. Time is of the essence with respect to the performance by each Party of its obligations under this Agreement.

Section 10.20 **Binding Effect**. This Agreement shall be binding upon and shall inure to the benefit of each of the Parties and their respective Affiliates and each of their respective successors and permitted assigns.

Section 10.21 **Attorney's Fees**. SHOULD EITHER PARTY BE REQUIRED TO RESORT TO EMPLOYMENT OF ATTORNEYS TO ENFORCE THIS AGREEMENT, OR ANY OF ITS RIGHTS UNDER THIS AGREEMENT, THE SUBSTANTIALLY PREVAILING PARTY SHALL BE ENTITLED TO REIMBURSEMENT FROM THE OTHER PARTY FOR THE SUBSTANTIALLY PREVAILING PARTY'S ATTORNEYS' FEES.

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Section 10.22 **Entire Agreement**. This Agreement and the exhibits and schedules attached hereto and thereto constitute the entire agreement between the Parties with respect to the transactions contemplated hereunder, and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties with respect to the transactions contemplated hereunder.

Section 10.23 **Conspicuousness**. THE PARTIES AGREE THAT ANY PROVISION OF THIS AGREEMENT THAT IS SET FORTH IN THE STYLE OF THIS <u>SECTION</u> <u>10.23</u> IS CONSPICUOUS.

Section 10.24 **Mutuality of Drafting**. The Parties hereby stipulate and agree that each of them fully participated and was adequately represented by counsel in the negotiation and preparation of this Agreement, and the Parties further stipulate and agree that in the event of an ambiguity or other necessity for interpretation to be made of the content of this Agreement, this Agreement will not be construed in favor of or against Owner or Operator as a consequence of one Party having had a greater role in the preparation of this Agreement, but will be construed as if the language were mutually drafted by both Parties with full assistance of counsel.

Section 10.25 **Force Majeure**. Performance under this Agreement, other than to make payments due, shall be excused in the event any Party is rendered unable, wholly or in part, by force majeure to carry out its obligations under this Agreement, and, in this regard, it is agreed that, on such Party giving notice in reasonably full particulars of such force majeure, in writing, to the other Party, within a reasonable time after the occurrence of the cause relied on, then the obligations of such Party, so far as they are affected by such force majeure, shall be suspended during the continuance of any inability so caused, but for no longer period, and such cause shall, so far as possible, be remedied with all reasonable dispatch. The term "force majeure" as employed herein means, to the extent not within the reasonable control of the Party claiming force majeure, after the exercise by such Party of due diligence: acts of God; strikes, lockouts or other industrial disturbances; acts of the public enemy, sabotage, terrorist acts, wars, blockades, insurrections, civil disturbances, riots; pandemics, epidemics, quarantines, landslides, lightning, earthquakes, fires, storms, floods, and washouts; arrests, orders, directives, requisitions, and actions, orders, rules, regulations or restraints of any government and government entity; changes in law after the date of this Agreement; application of governmental curtailment rules and regulations; explosions, breakage, or accident to machinery or lines of pipe; breakdown or accident to electric transmission lines and freezing of lines of pipe; unavailability, upon commercially reasonable terms, of labor, materials or other services; and other causes, whether of the kind herein enumerated or otherwise, not reasonably within the control of the Party claiming suspension, and which such Party is unable to overcome by the exercise of due diligence. It is understood and agreed that the settlement of strikes or lockouts is entirely within the discretion of the Party having the difficulty, and that the above requirement that any force majeure be remedied with all reasonable dispatch does not require the settlement of labor disputes, strikes or lockouts by acceding to the demands of an opposing Party when such course is inadvisable in the discretion of the Party having the difficulty.

[*Remainder of page intentionally left blank; signature page follows.*]

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This Agreement has been executed and delivered by the Parties effective as of the Effective Date.

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| |
|:---|
| **OWNER:** |
| DE IV FLOW, LLC |
| By: |
| Name: |
| Title: |
| **OPERATOR:** |
| By: |
| Name: |
| Title: |

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*Signature Page –Water System Management Agreement*

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**Exhibit A-1** 

**Water System** 

Exhibit A-1

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**Exhibit A-2** 

**Required Insurance** 

Exhibit A-2

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**Exhibit A-3** 

**Services** 

Exhibit A-3

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**Exhibit A-4** 

**Gathering Agreements** 

Exhibit A-4

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**Exhibit A-5** 

**Employees** 

Exhibit A-5

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**Exhibit A-6** 

**DE Gathering Agreement Required Connections** 

Exhibit A-6

## Exhibit 10.9

**Exhibit 10.9** 

**FORM OF EAGLEROCK LAND, LLC** 

**CHANGE IN CONTROL SEVERANCE PLAN** 

**ARTICLE I** 

**PURPOSE** 

This EagleRock Land, LLC Change in Control Severance Plan has been established by the Company on , 2026 (the "**Effective Date**") to provide Participants with the opportunity to receive severance protection in connection with a Change in Control of the Company. The purpose of the Plan is to attract and retain talent and to assure the present and future continuity, objectivity, and dedication of management in the event of any Change in Control to maximize the value of the Company on a Change in Control. The Plan is intended to be a top hat welfare benefit plan under ERISA.

Capitalized terms used but not otherwise defined herein have the meanings set forth in <u>Article</u> <u>II</u>.

**ARTICLE II** 

**DEFINITIONS** 

**Section 2.01** "**Administrator**" means the Compensation Committee of the Board or any other person or committee appointed by the Board to administer the Plan.

**Section 2.02** "**Affiliate**" means any person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company and any predecessors to such entity; *provided, however*, that a natural person shall not be considered an Affiliate.

**Section 2.03 "Board**" means the Board of Directors of the Company.

**Section 2.04 "Cause**" means with respect to a Participant, the definition of "Cause" set forth in the Participant's individual employment agreement, severance agreement, or other written agreement with the Company, if any, as in effect at the time of the Participant's termination of employment. In the absence of such a definition or such an agreement, "Cause" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Participant's willful failure to substantially perform Participant's duties (other than due to Disability) after written notice and a reasonable cure period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Participant's willful failure to comply in any material respect with a lawful directive of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Participant's conviction of, plea of guilty or nolo contendere to, or imposition of unadjudicated probation for, any felony or any crime involving moral turpitude;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Participant's unlawful use or possession of illegal drugs on Company premises or while performing duties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Participant's fraud, embezzlement, misappropriation, material misconduct, or breach of fiduciary duty with respect to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Participant's material breach of any agreement with or written policy of the Company, after written notice and a reasonable cure period if curable. Determinations of Cause shall be made by the Board in good faith.

**Section 2.05 "Change in Control**" has the same meaning of a "Change in Control" or similar term within the Company's then-current LTIP or the Participant's specific award agreement, as applicable.

**Section 2.06** "**Change in Control Protection Period**" means the period commencing one hundred eighty (180) days prior to the Closing and ending on the date that is eighteen (18) months following the Closing.

**Section 2.07 "Change in Control Severance"** has the meaning set forth in <u>Section</u> <u>4.02(a)</u>.

**Section 2.08 "CIC COBRA Benefit**" has the meaning set forth in <u>Section</u> <u>4.01(e)</u>.

**Section 2.09** "**Closing**" means the consummation of a Change in Control.

**Section 2.10 "COBRA**" means the Consolidated Omnibus Budget Reconciliation Act of 1985.

**Section 2.11** "**Cobra Multiplier**" shall be the number assigned to each Participant in the Participant's Participation Agreement in order to calculate his or her CIC COBRA Benefit under <u>Section</u> <u>4.01(e)</u>.

**Section 2.12 "Code**" means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.

**Section 2.13 "Company**" means EagleRock Land LLC a Texas limited liability company, and any successor thereto.

**Section 2.14** "**Disability**" means with respect to any Participant, a condition such that the Participant by reason of physical or mental disability becomes unable to perform his or her normal duties for more than 180 days in the aggregate (excluding infrequent or temporary absence due to ordinary transitory illness) during any twelve (12)-month period.

**Section 2.15** "**Effective Date**" has the meaning set forth in <u>Article</u> <u>I</u>.

**Section 2.16 "Eligible Employee**" means any member of the management team that the Administrator has appointed as of the Effective Date, or from time to time at the Administrator's discretion, in each case, to be limited to individuals that the Administrator deems to be appropriate to maintain the Plan's status as a top hat welfare benefit plan under ERISA.

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**Section 2.17 "ERISA**" means the Employee Retirement Income Security Act of 1974, as amended.

**Section 2.18** "**Good Reason**" means with respect to a Participant, the definition of "Good Reason" set forth in the Participant's individual employment agreement, severance agreement, or other written agreement with the Company, if any, as in effect at the time of the Participant's termination of employment. In the absence of such a definition or such an agreement, "Good Reason" shall mean, without the Participant's consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a material reduction in base salary or target annual bonus opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a material diminution of Participant's title, authority, duties, or responsibilities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a requirement that Participant relocate Participant's principal work location more than fifty (50) miles from its then-current location; provided that Good Reason shall exist only if (1) Participant provides written notice to the Company of the existence of the condition within sixty (60) days of its initial occurrence; (2) the Company fails to cure such condition within thirty (30) days after receiving such notice; and (3) Participant resigns employment for Good Reason within thirty (30) days after the expiration of such cure period.

Notwithstanding the foregoing provisions of this <u>Section</u> <u>2.18</u> or any other provision of this Agreement to the contrary, any assertion by Participant of a termination for Good Reason shall not be effective unless all of the following conditions are satisfied: (A) the condition described in <u>Section</u> <u>2.18(a)</u>, <u>(b)</u> or <u>(c)</u> giving rise to Participant's termination of employment must have arisen without Participant's prior written consent; (B) Participant must provide written notice to the Board of the existence of such condition(s) within sixty days after the initial occurrence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected for thirty days following the Board's receipt of such written notice; and (D) the date of Participant's termination of employment must occur within thirty days following the expiration of the Board's cure period in <u>(C)</u> <u>above</u>.

**Section 2.19** "**Lookback Bonus Amount**" means the highest actual bonus paid to (or earned by) the Participant with respect to any of the three (3) fiscal years immediately preceding the fiscal year in which the Qualifying Termination (or Change in Control, if earlier) occurs. For the avoidance of doubt, any bonuses that were pro-rated based on the Participant's employment with the Company for less than a full fiscal year shall be annualized for purposes of calculating the Lookback Bonus Amount.

**Section 2.20** "**LTIP**" means the EagleRock Land LLC Long Term Incentive Plan, as amended, or any successor or replacement plan.

**Section 2.21 "Participant**" has the meaning set forth in <u>Section</u> <u>3.01</u>.

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**Section 2.22 "Participation Agreement**" means the latest participation agreement delivered by the Company to a Participant informing the Eligible Employee of the Eligible Employee's participation in the Plan and containing any terms and conditions that may be applicable to the Eligible Employee in addition to or contrary to the terms of this Plan. Each Participation Agreement shall specify the Participant's Severance Multiplier and COBRA Multiplier, and shall be binding upon the Company and any successor resulting from a Change in Control.

**Section 2.23 "Plan"** means this EagleRock Land LLC Change in Control Severance Plan, as may be amended and/or restated from time to time.

**Section 2.24 "Qualifying Termination**" means the termination of a Participant's employment with the Company without Cause or by the Participant for Good Reason, in each case, during the Change in Control Protection Period. For purposes of clarity, a termination due to death or Disability shall not be deemed to be a Qualifying Termination pursuant to this Plan.

**Section 2.25 "Release**" has the meaning set forth in <u>Section</u> <u>5.01(b)</u>.

**Section 2.26 "Release Expiration Date**" means that date that is twenty-one (21) days following the date upon which the Company delivers the Release to the Employee (which shall occur no later than seven (7) days after the Participant's Termination Date) or, in the event that such termination of employment is "in connection with an exit incentive or other employment termination program" (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the date that is forty-five (45) days following such delivery date.

**Section 2.27 "Severance**" has the meaning set forth in <u>Section</u> <u>4.01(a)</u>.

**Section 2.28** "**Severance Multiplier**" shall be the number assigned to each Participant in his or her Participation Agreement in order to calculate his or her Change in Control Severance.

**Section 2.29 "Specified Employee Payment Date**" has the meaning set forth in <u>Section</u> <u>10.13(</u><u>b)</u>.

**Section 2.30 "Termination Date**" means that date on which a Participant's Qualifying Termination becomes effective. For purposes of clarity, for an applicable termination of employment that occurs prior to the Change in Control, the consummation of the Change in Control will be the date that the Participant's Qualifying Termination occurs solely for determining benefits that may become due pursuant to this Plan.

**ARTICLE III** 

**PARTICIPATION** 

**Section 3.01 Participants.** The Administrator shall designate and provide a Participation Agreement to each Eligible Employee chosen by the Administrator to participate in the Plan (each, a "**Participant**"). Each Participation Agreement shall specify the Participant's Severance Multiplier and COBRA Multiplier. The Participation Agreement shall be binding on the successors of the Company.

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**ARTICLE IV** 

**CHANGE IN CONTROL SEVERANCE** 

**Section 4.01 Change in Control Severance**. If a Participant has a Qualifying Termination, then, subject to <u>Article</u> <u>V</u>, the Company will provide the Participant with the following (collectively, the "**Change in Control Severance**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A lump sum cash payment equal to the Participant's Severance Multiplier multiplied by the Participant's annual base salary amount in effect on the date of the Termination Date (or, if Participant separates from service prior to the Change in Control, at the time of the Participant's separation from service).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Payment of the Participant's earned but unpaid annual bonus, if any, for the fiscal year of the Company preceding the fiscal year in which the Termination Date occurs, payable on the date when bonuses for such fiscal year are otherwise paid to the Company's executives, but in all events within the fiscal year that includes the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A lump sum cash payment equal to the Participant's Severance Multiplier multiplied by the greater of (x) the Participant's target annual cash bonus for the fiscal year in which the Termination Date occurs; or (y) the Participant's Lookback Bonus Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A lump sum cash payment equal to a pro-rata portion of the greater of (x) the Participant's target annual cash bonus for the fiscal year in which the Termination Date occurs; or (y) the Participant's Lookback Bonus Amount, in each case, pro-rated based on the number of days the Participant was employed during the fiscal year in which the Termination Date occurs (or, if Participant separates from service prior to the Change in Control, the fiscal year in which the Participant's separation from service occurred).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Participant elects to continue coverage for the Participant and the Participant's spouse and eligible dependents, if any, under the Company's group health plans pursuant to COBRA, then the Company shall provide the Participant with a lump-sum cash payment equal to (i) the Participant's COBRA Multiplier times (ii) the monthly premiums for the Participant's and the Participant's covered dependents' participation in the Company's group health plans pursuant to COBRA, less the amount of employee contributions that would apply to such participation if the Participant were an active employee, each determined as of the Termination Date, (the "**CIC COBRA Benefit**"). Notwithstanding the foregoing, if the provision of the benefits described in this paragraph cannot be provided in the manner described above without penalty, tax, or other adverse impact on the Company, then the Company and the Participant shall negotiate in good faith to determine an alternative manner in which the Company may provide substantially equivalent benefits to the Participant without such adverse impact on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything in this Plan to the contrary, no Change in Control Severance shall be paid unless and until the Participant has executed the Release and any applicable revocation period has expired without revocation. Subject to <u>Section</u> <u>8.13</u>, the Change in Control Severance shall be paid as soon as practicable following the expiration of such revocation period, but in no event later than ten (10) days following the end of such a revocation period.

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**Section 4.02 Change in Control Equity Award Acceleration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision in the LTIP, any successor equity incentive plan or any applicable award agreement to the contrary, effective as of the Change in Control (whether or not the Participant's employment with the Company is terminated), all of the Participant's outstanding or unvested equity incentive awards shall become immediately vested and no longer subject to forfeiture. With respect to any equity awards that are subject to performance-based vesting criteria, all performance goals or other vesting criteria will be deemed achieved at the maximum possible payout level applicable to such awards and all other terms and conditions will be deemed met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Participant's employment is terminated by the Company without Cause (excluding by reason of death or Disability) or by the Participant for Good Reason prior to the consummation of a Change in Control and (i) such termination of employment results in the forfeiture of unvested equity incentive awards, and (ii) a Change in Control is consummated within one hundred eighty (180) days thereafter, in lieu of the accelerated vesting described in <u>Section</u> <u>4.2(a)</u> above, the Participant shall be entitled to receive an additional lump sum payment in an amount equal to the value of such forfeited equity awards as if such awards remained outstanding and vested upon the consummation of the Change in Control in accordance with <u>Section</u> <u>4.2(a)</u> above. Any such amount that becomes due pursuant to this paragraph shall be paid to the Participant at the same time that the Participant receives the Change in Control Severance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as modified by this <u>Section</u> <u>4.02</u>, upon a termination of a Participant's employment for any reason, all outstanding equity incentive awards that the Participant holds at the time of the applicable termination of employment shall be governed by the terms and conditions of the LTIP and the Participant's individual LTIP award agreements.

**ARTICLE V** 

**CONDITIONS** 

**Section 5.01 Conditions.** A Participant's entitlement to any Change in Control Severance under this Plan, or the right to continue receiving such Change in Control Severance, will be subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Participant executing and delivering to the Company his or her Participation Agreement in accordance with the terms thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Participant executing on or before the Release Expiration Date and not revoking within any time provided by the Company to do so, a release of all claims in a form acceptable to the Company, consistent with the form of general release on <u>Appendix</u> <u>A</u> (the **"Release"**), which Release shall release the Company's respective shareholders, members, partners, officers, managers, directors, fiduciaries, employees, representatives, agents, and benefit plans (and fiduciaries of such plans) from any and all

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claims, including any and all causes of action arising out of the Participant's employment with the Company or the termination of such employment, but excluding all claims to Change in Control Severance the Participant may have under Article IV; *provided, however*, that if the Release is not executed and returned to the Company on or before the Release Expiration Date, and the required revocation period has not fully expired without revocation of the Release by the Participant, then the Participant shall not be entitled to any portion of the Change in Control Severance under Article IV.

**ARTICLE VI** 

**CLAIMS PROCEDURES** 

**Section 6.01 Initial Claims.** A Participant who believes he or she is entitled to a payment under the Plan that has not been received may submit a written claim for benefits to the Plan within sixty (60) days after the Participant's Qualifying Termination. Claims should be addressed and sent to:

**[Contact information for Chairman of the Compensation Committee]** 

If the Participant's claim is denied, in whole or in part, the Participant will be furnished with written notice of the denial within ninety (90) days after the Administrator's receipt of the Participant's written claim, unless special circumstances require an extension of time for processing the claim, in which case a period not to exceed 180 days will apply. If such an extension of time is required, then written notice of the extension will be furnished to the Participant before the termination of the initial ninety (90)-day period and will describe the special circumstances requiring the extension, and the date on which a decision is expected to be rendered. Written notice of the denial of the Participant's claim will contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reason or reasons for the denial of the Participant's claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) References to the specific Plan provisions on which the denial of the Participant's claim was based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A description of any additional information or material required by the Administrator to reconsider the Participant's claim (to the extent applicable) and an explanation of why such material or information is necessary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A description of the Plan's review procedures and time limits applicable to such procedures, including a statement of the Participant's right to bring a civil action under Section 502(a) of ERISA following a benefit claim denial on review.

**Section 6.02 Appeal of Denied Claims.** If the Participant's claim is denied and he or she wishes to submit a request for a review of the denied claim, then the Participant, or his or her authorized representative, must follow the procedures described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon receipt of the denied claim, the Participant (or his or her authorized representative) may file a request for review of the claim in writing with the Administrator. This request for review must be filed no later than sixty (60) days after the Participant has received written notification of the denial.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Participant has the right to submit in writing to the Administrator any comments, documents, records, and other information relating to his or her claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant has the right to be provided with, upon request and free of charge, reasonable access to and copies of all pertinent documents, records, and other information that is relevant to his or her claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The review of the denied claim will take into account all comments, documents, records, and other information that the Participant submitted relating to his or her claim, without regard to whether such information was submitted or considered in the initial denial of his or her claim.

**Section 6.03 Administrator's Response to Appeal.** The Administrator will provide the Participant with written notice of its decision within sixty (60) days after the Administrator's receipt of the Participant's written claim for review. There may be special circumstances which require an extension of this sixty (60)-day period. In any such case, the Administrator will notify the Participant in writing within the sixty (60)-day period and the final decision will be made no later than 120 days after the Administrator's receipt of the Participant's written claim for review. The Administrator's decision on the Participant's claim for review will be communicated to the Participant in writing and will clearly state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reason or reasons for the denial of the Participant's claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reference to the specific Plan provisions on which the denial of the Participant's claim is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A statement that the Participant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, the Plan and all documents, records, and other information relevant to his or her claim for benefits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A statement describing the Participant's right to bring an action under Section 502(a) of ERISA.

**Section 6.04 Exhaustion of Administrative Remedies.** The exhaustion of these claims procedures is mandatory for resolving every claim and dispute arising under the Plan. As to such claims and disputes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No claimant shall be permitted to commence any legal action to recover benefits or to enforce or clarify rights under the Plan under Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory, until these claims procedures have been exhausted in their entirety; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In any such legal action, all explicit and implicit determinations by the Administrator (including, but not limited to, determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by law.

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**Section 6.05 Arbitration.** Subject to <u>Section</u> <u>6.04</u>, any dispute, controversy or claim arising out of or related to the Plan shall be submitted to and decided by binding arbitration. Arbitration shall be administered exclusively by arbitration in Harris County, Texas before, and in accordance with the then-existing American Arbitration Association Employment Arbitration Rules. Any arbitral award determination shall be final and binding. The Arbitrator shall expeditiously hear and decide all matters concerning the dispute.

**Section 6.06 Attorney's Fees.** The Company and each Participant shall bear their own attorneys' fees incurred in connection with any disputes between them.

**ARTICLE VII** 

**ADMINISTRATION, AMENDMENT AND TERMINATION** 

**Section 7.01 Administration.** The Administrator has the exclusive right, power, and authority, in its sole and absolute discretion, to administer and interpret the Plan. The Administrator has all powers reasonably necessary to carry out its responsibilities under the Plan including (but not limited to) the sole and absolute discretionary authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) administer the Plan according to its terms and to interpret Plan policies and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) resolve and clarify inconsistencies, ambiguities, and omissions in the Plan, and among and between the Plan and other related documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) take all actions and make all decisions regarding questions of eligibility and entitlement to benefits, and benefit amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) process and approve or deny all claims for benefits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) decide or resolve any and all questions, including benefit entitlement determinations and interpretations of the Plan, as may arise in connection with the Plan.

The decision of the Administrator on any disputes arising under the Plan, including (but not limited to) questions of construction, interpretation and administration shall be final, conclusive and binding on all persons having an interest in or under the Plan. Any determination made by the Administrator shall be given deference in the event the determination is subject to judicial review and shall be overturned by a court of law only if it is arbitrary and capricious.

**Section 7.02 Amendment and Termination.** The Company reserves the right to amend or terminate the Plan at any time, by providing at least ninety (90) days advance written notice to each Participant; provided that, notwithstanding anything to the contrary in this Plan, no such amendment or termination that has the effect of reducing or diminishing the right of any Participant will be effective without the written consent of such Participant.

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**ARTICLE VIII** 

**GENERAL PROVISIONS** 

**Section 8.01 At-Will Employment.** The Plan does not alter the status of each Participant as an at-will employee of the Company. Nothing contained herein shall be deemed to give any Participant the right to remain employed by the Company or to interfere with the rights of the Company to terminate the employment of any Participant at any time, with or without Cause.

**Section 8.02** Effect on Other Plans, Agreements and Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Change in Control Severance payable to a Participant under the Plan will be: (i) in lieu of and not in addition to any severance benefits to which the Participant would otherwise be entitled or has received under any general severance policy or severance plan maintained by the Company or any agreement between the Participant and the Company that provides for severance benefits (an "***Alternative Severance Arrangement***") (unless the policy, plan or agreement expressly provides for severance benefits to be in addition to those provided under the Plan); (ii) reduced by any severance benefits to which Participant is entitled or has received pursuant to any Alternative Severance Arrangement; and (iii) reduced by any severance benefits to which the Participant is entitled by operation of a statute or government regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Change in Control Severance payable to a Participant under the Plan will not be counted as compensation for purposes of determining benefits under any other benefit policies or plans of the Company, except to the extent expressly provided therein.

**Section 8.03 Mitigation.** If a Participant obtains other employment, then such other employment will not affect the Participant's rights or the Company's obligations under the Plan.

**Section 8.04 Severability.** The invalidity or unenforceability of any other provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan. If any other provision of the Plan is held by a court of competent jurisdiction to be illegal, invalid, void, or unenforceable, such provision shall be deemed modified, amended, and narrowed to the extent necessary to render such provision legal, valid, and enforceable, and the other remaining provisions of the Plan shall not be affected but shall remain in full force and effect.

**Section 8.05 Headings and Subheadings.** Headings and subheadings contained in the Plan are intended solely for convenience and no provision of the Plan is to be construed by reference to the heading or subheading of any section or paragraph.

**Section 8.06 Unfunded Obligations.** The amounts to be paid to Participants under the Plan are unfunded obligations of the Company. The Company is not required to segregate any monies or other assets from its general funds with respect to these obligations. Participants shall not have any preference or security interest in any assets of the Company other than as a general unsecured creditor.

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**Section 8.07 Successors.** The Plan (including all Participation Agreements) will be binding upon any successor to the Company, its assets, its businesses, or its interest (whether as a result of the occurrence of a Change in Control or otherwise), in the same manner and to the same extent that the Company would be obligated under the Plan if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by the Plan and all Participation Agreements, the Company shall require any successor to the Company to expressly and unconditionally assume the Plan and all Participation Agreements in writing and honor the obligations of the Company hereunder, in the same manner and to the same extent that the Company would be required to perform if no succession had taken place. All payments and benefits that become due to a Participant under the Plan or applicable Participation Agreement will inure to the benefit of his or her heirs, assigns, designees, or legal representatives.

**Section 8.08 Transfer and Assignment.** Neither a Participant nor any other person shall have any right to sell, assign, transfer, pledge, anticipate, or otherwise encumber, transfer, hypothecate, or convey any amounts payable under the Plan prior to the date that such amounts are paid, except that, in the case of a Participant's death, such amounts shall be paid to the Participant's beneficiaries.

**Section 8.09 Waiver.** Any party's failure to enforce any provision or provisions of the Plan will not in any way be construed as a waiver of any such provision or provisions, nor prevent any party from thereafter enforcing each and every other provision of the Plan.

**Section 8.10 Governing Law.** To the extent not pre-empted by federal law, the Plan shall be construed in accordance with and governed by the laws of Texas without regard to conflicts of law principles. Subject to <u>Section</u> <u>6.05</u>, any action or proceeding to enforce the provisions of the Plan will be brought only in a state or federal court located in the state of Texas, county of Harris, and each party consents to the venue and jurisdiction of such court. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

**Section 8.11 Clawback.** Any amounts payable under the Plan are subject to any policy (whether in existence as of the Effective Date or later adopted) established by the Company providing for clawback or recovery of amounts that were paid to the Participant. The Company will make any determination for clawback or recovery in its sole discretion and in accordance with any applicable law or regulation.

**Section 8.12 Withholding.** The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

**Section 8.13** Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and administered in accordance with Section 409A of the Code. Notwithstanding any other provision of the Plan, payments provided under the Plan may only be made upon an event and in a manner that complies with Section 409A of the Code or an applicable exemption. Any payments under the Plan that may be excluded from Section 409A of the Code either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A of

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the Code to the maximum extent possible. For purposes of Section 409A of the Code, each installment payment provided under the Plan shall be treated as a separate payment. Any payments to be made under the Plan upon a termination of employment shall only be made upon a "separation from service" under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under the Plan comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by a Participant on account of non-compliance with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision of the Plan, if any payment or benefit provided to a Participant in connection with his or her Qualifying Termination is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code and the Participant is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i) of the Code, then such payment or benefit shall not be paid until the first payroll date to occur following the six (6)-month anniversary of the Qualifying Termination or, if earlier, on the Participant's death (the "**Specified Employee Payment Date**"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which the Participant's separation from service occurs shall be paid to the Participant in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. Notwithstanding any other provision of the Plan, if any payment or benefit is conditioned on the Participant's execution of a Release, then the first payment shall include all amounts that would otherwise have been paid to the Participant during the period beginning on the date of the Qualifying Termination and ending on the payment date if no delay had been imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent required by Section 409A of the Code, each reimbursement or in-kind benefit provided under the Plan shall be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; and (ii) any right to reimbursements or in-kind benefits under the Plan shall not be subject to liquidation or exchange for another benefit.

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<u>APPENDIX A</u> 

*The following Release is intended to be an example of the material terms of the* 

*general form of Release that shall be used in connection with the* 

*EagleRock Land, LLC Change in Control Severance Plan* 

**FORM OF GENERAL RELEASE** 

**SEPARATION AND GENERAL RELEASE AGREEMENT** 

This SEPARATION AND GENERAL RELEASE AGREEMENT (this "***Agreement***") is entered into by and between [•] ("***Employee***") and EagleRock Land, LLC (together with its successors, the "***Company***"). Employee and the Company are each referred to herein as a "***Party***" and together as the "***Parties***." All capitalized terms used and not defined herein shall have the meaning given to them in the EagleRock Land, LLC Change in Control Severance Plan effective [_____], 2026, as amended from time to time (the "***Plan***").

WHEREAS, Employee is a Participant under the Plan;

WHEREAS, Employee has experienced a Qualifying Termination;

WHEREAS, the Parties wish for Employee to receive the severance benefits set forth in this Agreement, conditioned upon Employee's timely entry into and return to the Company [(and non-revocation, in any time provided to do so)] of this Agreement and Employee's compliance with the terms of this Agreement;

WHEREAS, the Parties wish to resolve any and all claims that Employee has or may have against the Company or any of the other Company Parties (as defined below), including any claims that may have arisen out of Employee's employment or the end of such employment with the Company or any of the other Company Parties.

NOW, THEREFORE, in consideration of the promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties hereby acknowledge and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Separation from Employment</u>**. Employee's employment with the Company ended as of [Date] (the "***Separation Date***"). As of the Separation Date, Employee ceased to have any further employment relationship with the Company or any other Company Party. Employee acknowledges that, as of the Separation Date, Employee no longer holds any offices or other positions with the Company or any other Company Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Change in Control Severance</u>**. Provided that Employee (i) executes this Agreement on or after the Separation Date and returns a copy of this Agreement signed by Employee to the Company, care of [Name], by email to [email address] or by hand delivery or mail to [mailing address], so that it is received by [Name] no later than the 46<sup>th</sup> calendar day after Employee first received this Agreement, [(ii) does not exercise Employee's revocation right as set forth in <u>Section</u> <u>6</u> below;] and (iii) abides by each of Employee's obligations set forth herein, then Employee shall receive the severance benefits set forth on <u>Schedule I</u> to this Agreement (the

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"***Change in Control Severance***"), which Employee acknowledges and agrees represent the entirety of the severance pay and benefits Employee is eligible to receive pursuant to the Plan. Employee acknowledges and agrees that the severance benefits described herein are in full satisfaction of the Change in Control Severance (as defined in the Plan) and that Employee is not eligible for any other severance pay or benefits from the Company or any other Company Party other than the Change in Control Severance set forth in this <u>Section</u> <u>2</u>. For the avoidance of doubt, Employee acknowledges and agrees that Employee had no right to the Change in Control Severance (or any portions thereof) but for Employee's timely entry into [(and non-revocation of)] this Agreement and satisfaction of the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Satisfaction of All Leaves and Payment Amounts; Prior Rights and Obligations</u>**. Employee acknowledges that, other than the Change in Control Severance [ and •], Employee has received all salary, bonuses, wages, and compensation due from any Company Party and has been provided all benefits, been afforded all rights, been reimbursed for all expenses and been permitted to take all required leaves (paid and unpaid) that Employee is or has been entitled to receive from any Company Party. For the avoidance of doubt, Employee acknowledges and agrees that Employee has no rights to further or future severance or termination-related pay or benefits from any Company Party other than the Change in Control Severance [ and •], and Employee is not entitled to any further or future payments from any Company Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Complete Release of Claims</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For good and valuable consideration, including Employee's receipt of the Change in Control Severance (and any part thereof), Employee hereby forever releases, discharges and acquits the Company and its past, present and future subsidiaries, affiliates, stockholders, members, managers, partners, directors, officers, employees, agents, attorneys, heirs, lenders, creditors, insurers, insureds, assigns, predecessors, successors and representatives, in their personal and representative capacities, as well as all employee benefit plans maintained by the Company or any of its affiliates and all fiduciaries and administrators of any such plans, in their personal and representative capacities (collectively, the "***Company Parties***" and each a "***Company Party***"), from liability for, and Employee hereby waives, any and all claims, damages, or causes of action of any kind related to Employee's employment or affiliation with any Company Party, the termination of such employment or affiliation, and any other acts or omissions related to any matter occurring or existing, whether known or unknown, based on facts occurring prior to the time that Employee signs this Agreement, whether arising under federal or state laws or the laws of any other jurisdiction, including (i) any alleged violation of: (A) the Age Discrimination in Employment Act of 1967 (including as amended by the Older Workers Benefit Protection Act), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, and Sections 1981 through 1988 of Title 42 of the United States Code, the Americans with Disabilities Act of 1990; (B) the Employee Retirement Income Security Act of 1974 ("***ERISA***"); (C) the Immigration Reform Control Act; (D) the Family and Medical Leave Act of 1993; (E) the Securities Exchange Act of 1934; (F) the Investment Advisers Act of 1940; (G) the Investment Company Act of 1940; (H) the Private Securities Litigation Reform Act of 1995; (I) the Sarbanes-Oxley Act of 2002; (J) the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010; (K) the Worker Adjustment and Retraining Notification Act; (L) any federal, state, or local wage law; (M) any federal, state or local anti-discrimination or anti-retaliation law, including any causes of action or claims under [the Texas Labor Code (including the Texas Payday Law, the Texas Anti-Retaliation Act, Chapter 21

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of the Texas Labor Code, and the Texas Whistleblower Act)][New Mexico Human Rights Act, Reemployment of Persons in the Armed Forces Act, Fraud Against Taxpayers Act, Promoting Financial Independence of Victims of Domestic Abuse Act, Employee Privacy Act, and New Mexico social media privacy law]; (N) any other local, state or federal law, regulation, ordinance or orders which may have afforded any legal or equitable causes of action of any nature; or (O) any public policy, contract, tort, or common law, including any claim for defamation, slander, libel, negligence, emotional distress, fraud or misrepresentation of any kind, promissory estoppel, breach of implied duty of good faith and fair dealing, breach of implied or express contract, breach of fiduciary duty or wrongful discharge; (ii) any allegation for costs, fees, or other expenses including attorneys' fees incurred in, or with respect to, a Released Claim (as defined below); (iii) any and all claims Employee may have under or relating to any employment contract or offer letter, or any other agreement, incentive or compensation plan or under any other benefit plan or program (including the Plan and any other severance plan); and (iv) any claim for compensation, damages or benefits of any kind not expressly set forth in this Agreement (collectively, the "***Released Claims***"). **THIS RELEASE INCLUDES MATTERS ATTRIBUTABLE TO THE SOLE OR PARTIAL NEGLIGENCE (WHETHER GROSS OR SIMPLE) OR OTHER FAULT, INCLUDING STRICT LIABILITY, OF ANY OF THE COMPANY PARTIES**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Notwithstanding this release of liability, nothing in this Agreement prevents Employee from filing any non-legally waivable claim, including a challenge to the validity of this Agreement, with the Equal Employment Opportunity Commission, the Securities and Exchange Commission, or other federal, state or local governmental agency or commission (collectively "****Governmental Agencies****") or participating in (or cooperating with) any investigation or proceeding conducted by any Governmental Agency or communicating with any Governmental Agency; however, Employee understands and agrees that, to the extent permitted by law, Employee is waiving any and all rights to recover any monetary or personal relief or recovery from a Company Party as a result of such Governmental Agency proceeding or subsequent legal actions.* Nothing herein waives Employee's right to receive an award for information provided to a Governmental Agency (including, for the avoidance of doubt, any monetary award or bounty from any governmental agency or regulatory or law enforcement authority in connection with any protected "whistleblower" activity). Nothing herein shall prohibit or restrict Employee from (i) initiating communications directly with, cooperating with, providing information or making statements to, causing information to be provided to, or otherwise assisting in an investigation by, any Governmental Agency; (ii) responding truthfully to any inquiry or legal process directed to Employee from any Governmental Agency; (iii) testifying, participating or otherwise assisting in any action or proceeding by any Governmental Agency; (iv) disclosing an act of sexual abuse or facts related to an act of sexual abuse; or (v) making any disclosures that are protected under the whistleblower provisions of any applicable law. Further, nothing in this Agreement requires Employee to obtain prior authorization before engaging in any conduct described in this <u>Section</u> <u>4(b)</u> or to notify any Company Party that Employee engaged in any such conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In no event shall the Released Claims include (i) any claim for payment or receipt of the Change in Control Severance; (ii) any rights or claims based on facts that may occur after the date that this Agreement is executed by Employee; (iii) any claim to vested benefits under an employee benefit plan that is subject to ERISA and that ERISA prevents from being released pursuant to a release agreement; or (iv) any claims that cannot be waived as a matter of law, including claims for unemployment compensation benefits or workers' compensation insurance

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benefits. [Employee's release of claims hereunder does not release any rights: (x) with respect to Employee's right to receive indemnification pursuant to the terms of any Company Party bylaws or similar documentation or pursuant to any other written agreement between Employee and any Company Party, or (y) that Employee may have pursuant to directors and officers insurance coverage, or other insurance coverage, of which Employee is a beneficiary.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Advice to Consult with Attorney; Employee</u><u>'</u><u>s Acknowledgements</u>**. *This is an important legal document, and the Company hereby advises Employee to consult with an attorney prior to signing this Agreement.* By executing and delivering this Agreement, Employee expressly acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Employee has carefully read this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Employee has had sufficient time (and at least 45 calendar days) since this Agreement was first provided to Employee to consider this Agreement before the execution and delivery to the Company, and Employee further agrees that no changes to this Agreement after the time it was first provided to Employee, whether material or immaterial, will re-start the period for Employee to consider whether to enter into this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Employee has been provided with (and attached to this Agreement as <u>Exhibit A</u> is) information (including job titles, ages, and selection information) regarding the employment termination program applicable to Employee;]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Employee has been advised in writing to discuss this Agreement with an attorney before signing this Agreement, and Employee has had adequate opportunity to do so prior to executing this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Employee fully understands the final and binding effect of this Agreement; the only promises made to Employee to sign this Agreement are those stated within the four corners of this Agreement, and in entering this Agreement, Employee has not relied on any representation or statement, written or oral, of any Company Party or Company Party's agent that is not set forth in this Agreement; and Employee is signing this Agreement knowingly, voluntarily and of Employee's own free will; Employee relies on Employee's own judgment in entering into this Agreement; and Employee understands and agrees to each of the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Company Party has provided any tax or legal advice regarding this Agreement, and Employee has had an adequate opportunity to receive sufficient tax and legal advice from advisors of Employee's own choosing such that Employee enters into this Agreement with full understanding of the tax and legal implications thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>[Revocation Period; Effective Date</u>.** Employee has seven (7) calendar days after signing this Agreement to revoke it (such seven (7)-day period is referred to herein as the "***Revocation Period***"). This Agreement will not become effective or enforceable unless the Revocation Period has expired without Employee exercising Employee's revocation right. To be effective, such revocation must be in writing received by the Company, care of [Name] [email address] [mailing address], so that it is received by no later than 11:59 p.m. central standard time, on the last day of the Revocation Period. If an effective revocation is delivered in the foregoing manner and timeframe, then no consideration shall be provided to Employee pursuant to <u>Section</u> <u>2</u>, and the release of claims set forth in <u>Section</u> <u>4</u> shall be of no force or effect. Provided that Employee does not timely revoke this Agreement, it shall become effective and enforceable on the eighth (8<sup>th</sup>) day after Employee signs this Agreement.] [**<u>Effective Date</u>**. This Agreement shall become effective and enforceable on the day Employee signs this Agreement.]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Ongoing Obligations</u>**. [Employee acknowledges and agrees that, in connection with Employee's employment, Employee has obtained Confidential Information (as defined) in that certain [Name of Agreement] between Employee and the Company dated [Date] (the "***Restrictive Covenant Agreement***"), and that Employee has continuing obligations to the Company pursuant to the Restrictive Covenant Agreement (the "***Ongoing Covenants***").] In entering into this Agreement, Employee reaffirms Employee's commitment to abide by, and promises to abide by, the terms of the Ongoing Covenants. Notwithstanding the foregoing, nothing herein or the Ongoing Covenants shall prevent Employee from making disclosures or statements to any Governmental Agencies or otherwise engaging in any activity permitted by <u>Section</u> <u>4(b)</u> above, or from providing truthful statements in response to any subpoena or other legal process. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (2) solely for the purpose of reporting or investigating a suspected violation of law; (B) is made to the individual's attorney in relation to a lawsuit for retaliation against the individual for reporting a suspected violation of law; or (C) is made in a complaint or other document filed in a lawsuit or proceeding, if such filing is made under seal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Cooperation</u>**. For a period of twelve (12) months following Employee's Separation Date, Employee agrees to provide reasonable assistance and cooperate with the Company Parties, during normal business hours, upon reasonable advance request with respect to matters within the scope of Employee's duties and responsibilities during Employee's employment with any Company Party (as applicable). Employee also agrees, for a period of twelve (12) months following Employee's Separation Date, to cooperate with, and assist, the Company Parties, as they may reasonably request, in connection with any investigation, regulatory matter, lawsuit, or arbitration in which a Company Party is a subject and as to which Employee has material information. Notwithstanding any of the foregoing, no Company Party shall require Employee to provide any of the foregoing to the extent such assistance and cooperation impedes Employee's ability to engage in full-time employment with a new employer following the Separation Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Withholding of Taxes and Other Employee Deductions</u>**. The Company may withhold from any payment made pursuant to this Agreement all federal, state, local, and other taxes and withholdings as may be required pursuant to any law or governmental regulation or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Section 409A</u>**. Neither this Agreement nor any payment or benefit provided hereunder is intended to constitute "deferred compensation" subject to the requirements of Section 409A of the Internal Revenue Code of 1986 and the United States Treasury regulations and interpretive guidance issued thereunder (collectively, "***Section 409A***"), and this Agreement shall be construed and administered in accordance with such intent. Notwithstanding the foregoing, the Company makes no representations that the payments or benefits provided under this Agreement comply with or are exempt from the requirements of Section 409A, and in no event shall the Company or any other Company Party be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>No Admission</u>**. Nothing in this Agreement shall be construed as an admission of wrongdoing or liability on the part of the Company or any other Company Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>No Waiver</u>**. No failure by any Party at any time to give notice of any breach by the other Party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>Assignment</u>**. This Agreement is personal to Employee and may not be assigned by Employee. The Company may assign its rights and obligations under this Agreement without Employee's consent, including to any other Company Party and to any successor (whether by merger, purchase or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>Severability and Modification</u>**. To the extent permitted by applicable law, the Parties agree that any term or provision of this Agreement (or part thereof) that renders such term or provision (or part thereof) or any other term or provision (or part thereof) of this Agreement invalid or unenforceable in any respect shall be severable and shall be modified or severed to the extent necessary to avoid rendering such term or provision (or part thereof) invalid or unenforceable, and such severance or modification shall be accomplished in the manner that most nearly preserves the benefit of the Parties' bargain hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>Applicable Law; Dispute Resolution</u>**. This Agreement is entered into under, and shall be governed for all purposes by, the laws of the state of Texas without regard to its conflicts of law principles, unless preempted by federal law (including ERISA, which is the federal law that governs the Plan and any claims made under the Plan). The Parties expressly acknowledge and agree that any judicial proceeding that may be brought hereunder must be brought in the state or federal courts, as applicable, located in the state of Texas, county of Harris. The Parties acknowledge the right of these courts to assert personal jurisdiction in any such action over the Parties and waive and release now and forever any defense to that assertion of personal jurisdiction that might otherwise exist. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Counterparts</u>***.* This Agreement may be executed in one or more counterparts (including portable document format (.pdf) and facsimile counterparts), each of which shall be deemed to be an original, but all of which together will constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>Third-Party Beneficiaries</u>**. This Agreement shall be binding upon and inure to the benefit of the Company and each other Company Party, as Employee expressly acknowledges and agrees that each Company Party that is not a signatory hereto shall be a third-party beneficiary of Employee's representations, warranties and release of claims set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Amendment; Entire Agreement</u>***.* This Agreement may not be changed orally but, subject to <u>Section</u> <u>15</u> above, only by an agreement in writing agreed to and signed by Employee and the Company. This Agreement and the Plan (and as referenced herein, the Restrictive Covenant Agreement), constitute the entire agreement of the Parties with regard to the subject matter hereof. Notwithstanding the foregoing, this Agreement complements and is in addition to (and does not supersede or replace) any obligation Employee has to the Company or any of its affiliates (whether arising by contract, common law, statute, or otherwise) with respect to return of property or other materials, confidentiality, non-disclosure, assignment of inventions, non-disparagement, non-competition, or non-solicitation or any other restrictive covenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>Interpretation</u>**. Titles and headings to Sections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof. The word "or" as used herein is not exclusive and is deemed to have the meaning "and/or." The words "herein", "hereof", "hereunder" and other compounds of the word "here" shall refer to the entire Agreement and not to any particular provision hereof. Unless the context requires otherwise, all references herein to a law, agreement, instrument or other document shall be deemed to refer to such law, agreement, instrument or other document as amended, supplemented, modified and restated from time to time to the extent permitted by the provisions thereof. The use herein of the word "including" following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as "without limitation", "but not limited to", or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against any Party, whether under any rule of construction or otherwise. This Agreement has been reviewed by each of the Parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the Parties.

[*Signatures begin on the following page*]

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The Parties have executed this Agreement as of the date(s) set forth beneath their signatures below.

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| |
|:---|
| **EAGLEROCK LAND, LLC** |
| By: |
| Name: |
| Title: |
| Date: |
| **[EMPLOYEE NAME]** |
| Date: |

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*Signature Page to Separation and General Release Agreement* 

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**<u>Schedule I</u>**

Subject to the terms and conditions of this Agreement and the Change in Control Severance Plan, Employee shall be entitled to receive the following Change in Control Severance:

(a) <u>Cash Severance Payment</u>. A lump sum cash payment of $[•], which is equal to Employee's Severance Multiplier multiplied by Employee's annual base salary amount in effect on the Termination Date (or, if Employee separates from service prior to the Change in Control, at the time of Employee's separation from service).

(b) <u>Unpaid Prior-Year Bonus</u>. Payment of Employee's earned but unpaid annual bonus, if any, for the fiscal year of the Company preceding the fiscal year in which the Termination Date occurs, payable on the date when bonuses for such fiscal year are otherwise paid to the Company's executives, but in all events within the fiscal year that includes the Termination Date. The amount of this lump sum cash payment is $[•].

(c) <u>Bonus Severance Payment</u>. A lump sum cash payment of $[•], which is equal to Employee's Severance Multiplier multiplied by the greater of (x) Employee's target annual cash bonus for the fiscal year in which the Termination Date occurs or (y) Employee's Lookback Bonus Amount.

(d) <u>Pro-Rata Bonus</u>. A lump sum cash payment of $[•], which is equal to a pro-rata portion of the greater of (x) Employee's target annual cash bonus for the fiscal year in which the Termination Date occurs or (y) Employee's Lookback Bonus Amount, in each case, pro-rated based on the number of days Employee was employed during the fiscal year in which the Termination Date occurs (or, if Employee separates from service prior to the Change in Control, the fiscal year in which Employee's separation from service occurred).

(e) <u>COBRA</u>. If Employee elects to continue coverage for Employee and Employee's spouse and eligible dependents, if any, under the Company's group health plans pursuant to COBRA, then the Company shall provide Employee with a lump-sum cash payment of $[•], which is equal to (i) Employee's COBRA Multiplier times (ii) the CIC COBRA Benefit. Notwithstanding the foregoing, if the provision of the benefits described in this paragraph cannot be provided in the manner described above without penalty, tax, or other adverse impact on the Company, then the Company and Employee shall negotiate in good faith to determine an alternative manner in which the Company may provide substantially equivalent benefits to Employee without such adverse impact on the Company.

The sum of the payments referred to above in (a)-(e) is equal to $[•], which shall be paid as soon as practicable following the expiration of the applicable revocation period (if any), but in no event later than ten (10) days following the end of such revocation period, subject to Section 409A.

*Schedule I to Separation and General Release Agreement* 

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**EXHIBIT A** 

**[OWBPA Disclosure]** 

[OWBPA disclosure information to be inserted]

The following is a listing of the ages and job titles of executives in the decisional unit who were, and were not, selected for layoff (and, if selected for layoff, were thus offered the opportunity to receive a severance payment in exchange for a release of claims):

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| | | | |
|:---|:---|:---|:---|
| **Job Title** | **Age** | **Selected for**<br> **Layoff** | **Not Selected**<br> **for Layoff** |

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<u>APPENDIX B</u> 

**FORM OF PARTICIPATION AGREEMENT** 

EAGLEROCK LAND, LLC

CHANGE IN CONTROL SEVERANCE PLAN

PARTICIPATION AGREEMENT

[•], 2026

[Participant]

Re: Participation Agreement – EagleRock Land, LLC (the "Company") Change in Control Severance Plan

Dear [Participant]:

We are pleased to inform you that you have been designated as eligible to participate in the EagleRock Land, LLC Change in Control Severance Plan (as it may be amended from time to time, the "<u>Plan</u>"). Your participation in the Plan is subject to the terms and conditions of the Plan and your execution and delivery of this agreement, which constitutes a Participation Agreement (as defined in the Plan). A copy of the Plan is attached hereto as <u>Annex A</u> and is incorporated herein and deemed to be part of this Participation Agreement for all purposes. The Plan provides severance payments and benefits in connection with a participant's Qualifying Termination.

You acknowledge that receipt of payments and benefits following a Qualifying Termination under the Plan is contingent upon your execution of a general release of claims at the time of such Qualifying Termination. You further acknowledge and agree that (i) you have fully read, understand and voluntarily enter into this Participation Agreement and (ii) you have had a sufficient opportunity to consult with your personal tax, financial planning advisor and attorney about the tax, financial and legal consequences of your participation in the Plan before signing this Participation Agreement.

Pursuant to the Plan, this Participation Agreement designates the following multipliers to your Change in Control Severance:

Severance Multiplier: [•]

COBRA Multiplier: [•]

Unless otherwise defined herein, capitalized terms used in this Participation Agreement shall have the meanings set forth in the Plan. This Participation Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. This Agreement, including the Plan, shall be binding on the executors, heirs, administrators, successors and assigns of the participant and the successors and assigns of the Company and shall inure to the benefit of the respective executors, heirs, administrators, successors and assigns of the Company.

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Please execute this Participation Agreement in the space provided below and send a fully executed copy to [•] no later than [•] days following the date of this letter.

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| | |
|:---|:---|
| Sincerely, | Sincerely, |
| EAGLEROCK LAND, LLC | EAGLEROCK LAND, LLC |
| By: |  |
| Name: | [•] |
| Title: | [•] |

---

---

| | |
|:---|:---|
| AGREED AND ACCEPTED<br> this ____ day of ______, 2026 by: | AGREED AND ACCEPTED<br> this ____ day of ______, 2026 by: |
|  | [Participant] |

---

## Exhibit 10.10

**Exhibit 10.10** 

**FORM OF EAGLEROCK LAND, LLC** 

**LONG TERM INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purpose**. The purpose of the EagleRock Land, LLC Long Term Incentive Plan (the "***Plan***") is to provide a means through which (a) EagleRock Land, LLC, a Texas limited liability company (the "***Company***"), and its Affiliates may attract, retain and motivate qualified persons as employees, directors and consultants, thereby enhancing the profitable growth of the Company and the Affiliates and (b) persons upon whom the responsibilities of the successful administration and management of the Company and the Affiliates rest, and whose present and potential contributions to the Company and the Affiliates are of importance, can acquire and maintain share ownership or awards the value of which is tied to the performance of the Company, thereby strengthening their concern for the Company and the Affiliates. Accordingly, the Plan provides for the grant of Options, SARs, Restricted Shares, Restricted Share Units, Share Awards, Dividend Equivalents, Other Share-Based Awards, Cash Awards, Substitute Awards, or any combination of the foregoing, as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions**. For purposes of the Plan, the following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Affiliate***" means any corporation, partnership, limited liability company, limited liability partnership, association, trust or other organization that, directly or indirectly, controls, is controlled by, or is under common control with, the Company. For purposes of the preceding sentence, "control" (including, with correlative meanings, the terms "controlled by" and "under common control with"), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of the controlled entity or organization or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities, by contract, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***ASC Topic 718***" means the Financial Accounting Standards Board Accounting Standards Codification Topic 718, *Compensation – Stock Compensation*, as amended or any successor accounting standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Award***" means any Option, SAR, Restricted Shares, Restricted Share Unit, Share Award, Dividend Equivalent, Other Share-Based Award, Cash Award, or Substitute Award, together with any other right or interest, granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Award Agreement***" means any written instrument (including any employment, severance or change in control agreement) that sets forth the terms, conditions, restrictions and/or limitations applicable to an Award, in addition to those set forth under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Board***" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Cash Award***" means an Award denominated in cash granted under <u>Section</u> <u>6(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***Change in Control***" means, except as otherwise provided in an Award Agreement, the occurrence of any of the following events after the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 40% or more of either (x) the then-outstanding Class A shares representing limited liability company interests (the "***Outstanding Class A Shares***") or (y) the

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combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the "***Outstanding Company Voting Securities***"); <u>provided</u> that for purposes of this clause (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company or its subsidiaries, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company or (D) any acquisition by any entity pursuant to a transaction that complies with clauses (A), (B) and (C) of clause (iii) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The individuals constituting the Board on the Effective Date (the "***Incumbent Directors***") cease for any reason (other than death or disability) to constitute at least majority of the Board; <u>provided</u> that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election, by the Company's shareholders was approved by a vote of at least two-thirds of the Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination) will be considered as though such individual were an Incumbent Director, but excluding, for purposes of this proviso, any such individual whose initial assumption of office occurs as a result of an actual or threatened proxy contest with respect to election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a "person" (as used in Section 13(d) of the Exchange Act), in each case, other than the Board, which individual, for the avoidance of doubt, shall not be deemed to be an Incumbent Director for purposes of this definition, regardless of whether such individual was approved by a vote of at least two-thirds of the Incumbent Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or an acquisition of assets of another entity (a "***Business Combination***"), in each case, unless, following such Business Combination, (A) the Outstanding Class A Shares and Outstanding Company Voting Securities immediately prior to such Business Combination represent or are converted into or exchanged for securities which represent or are convertible into more than 60% of, respectively, the then-outstanding Shares or common equity interests and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors or other governing body, as the case may be, of the entity resulting from such Business Combination (including an entity which as a result of such transaction owns the Company, or all or substantially all of the Company's assets either directly or through one or more subsidiaries), (B) no individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), excluding the Company, its subsidiaries and any employee benefit plan (or related trust) sponsored or maintained by the Company or the entity resulting from such Business Combination (or any entity controlled by either the Company or the entity resulting from such Business Combination), beneficially owns, directly or indirectly, 40% or more of, respectively, the then-outstanding Shares or common equity interests of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors or other governing body of such entity except to the extent that such ownership results solely from direct or indirect ownership of the Company that existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors or similar governing body of the entity resulting from such Business Combination were Incumbent Directors at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

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Notwithstanding any provision of this <u>Section</u> <u>2(g)</u>, for purposes of an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules, to the extent the impact of a Change in Control on such Award would subject a Participant to additional taxes under the Nonqualified Deferred Compensation Rules, a Change in Control described in subsection (i), (ii), (iii), (iv), or (v) above with respect to such Award will mean both a Change in Control and a "change in the ownership of a corporation," "change in the effective control of a corporation," or a "change in the ownership of a substantial portion of a corporation's assets" within the meaning of the Nonqualified Deferred Compensation Rules as applied to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "***Change in Control Price***" means the amount determined in the following clause (i), (ii), (iii), (iv) or (v), whichever the Committee determines is applicable, as follows: (i) the price per share offered to holders of Shares in any merger or consolidation, (ii) the per share Fair Market Value of the Shares immediately before the Change in Control or other event without regard to assets sold in the Change in Control or other event and assuming the Company has received the consideration paid for the assets in the case of a sale of the assets, (iii) the amount distributed per Share in a dissolution transaction, (iv) the price per share offered to holders of Shares in any tender offer or exchange offer whereby a Change in Control or other event takes place, or (v) if such Change in Control or other event occurs other than pursuant to a transaction described in clauses (i), (ii), (iii), or (iv) of this <u>Section</u> <u>2(h)</u>, the value per Share that may otherwise be obtained with respect to such Awards or to which such Awards track, as determined by the Committee as of the date determined by the Committee to be the date of cancellation and surrender of such Awards. In the event that the consideration offered to shareholders of the Company in any transaction described in this <u>Section</u> <u>2(h)</u> or in <u>Section</u> <u>8(e)</u> consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash and such determination shall be binding on all affected Participants to the extent applicable to Awards held by such Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Class A Shares***" means Class A shares representing limited liability company interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "***Class B Shares***" means Class B shares representing limited liability company interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "***Code***" means the Internal Revenue Code of 1986, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "***Committee***" means a committee of two or more directors designated by the Board to administer the Plan; <u>provided</u> that, unless otherwise determined by the Board, the Committee shall consist solely of two or more Qualified Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "***Dividend Equivalent***" means a right, granted to an Eligible Person under <u>Section</u> <u>6(g)</u>, to receive cash, Shares, other Awards or other property equal in value to dividends paid with respect to a specified number of Shares, or other periodic payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "***Effective Date***" means .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "***Eligible Person***" means any individual who, as of the date of grant of an Award, is an officer or employee of the Company or of any Affiliate, and any other person who provides services to the Company or any Affiliate, including directors of the Company; <u>provided</u> that any such individual must be an "employee" of the Company or any of its parents or subsidiaries within the meaning of General Instruction A.1(a) to Form S-8 if such individual is granted an Award that may be settled in Shares. An employee on an approved leave of absence may be an Eligible Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "***Exchange Act***" means the Securities Exchange Act of 1934, as amended from time to time, including the guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "***Fair Market Value***" of a Share means, as of any specified date, (i) if the Shares are listed on a national securities exchange, the closing sales price of the Shares, as reported on the stock exchange composite tape on that date (or if no sales occur on such date, on the last preceding date on which such sales of the Shares are so reported); (ii) if the Shares are not traded on a national securities exchange but is traded over the counter on such date, the average between the reported high and low bid and asked prices of Shares on the most recent date on which Shares were publicly traded on or preceding the specified date; or (iii) in the event Shares are not publicly traded at the time a determination of its value is required to be made under the Plan, the amount determined by the Committee in its discretion in such manner as it deems appropriate, taking into account all factors the Committee deems appropriate, including the Nonqualified Deferred Compensation Rules. Notwithstanding this definition of Fair Market Value, with respect to one or more Award types, or for any other purpose for which the Committee must determine the Fair Market Value under the Plan, the Committee may elect to choose a different measurement date or methodology for determining Fair Market Value so long as the determination is consistent with the Nonqualified Deferred Compensation Rules and all other applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "***ISO***" means an Option intended to be and designated as an "incentive stock option" within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "***Nonqualified Deferred Compensation Rules***" means the limitations and requirements of Section 409A of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "***Nonstatutory Option***" means an Option that is not an ISO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "***Option***" means a right, granted to an Eligible Person under <u>Section</u> <u>6(b)</u>, to purchase Shares at a specified price during specified time periods, which may either be an ISO or a Nonstatutory Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "***Other Share-Based Award***" means an Award granted to an Eligible Person under <u>Section</u> <u>6(h)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "***Participant***" means a person who has been granted an Award under the Plan that remains outstanding, including a person who is no longer an Eligible Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "***Qualified Member***" means a member of the Board who is (i) a "non-employee director" within the meaning of Rule 16b-3(b)(3), and (ii) "independent" under the listing standards or rules of the securities exchange upon which the Shares are traded, but only to the extent such independence is required in order to take the action at issue pursuant to such standards or rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "***Restricted Shares***" means Shares granted to an Eligible Person under <u>Section</u> <u>6(d)</u> that is subject to certain restrictions and to a risk of forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "***Restricted Share Unit***" means a right, granted to an Eligible Person under <u>Section</u> <u>6(e)</u>, to receive Shares, cash or a combination thereof at the end of a specified period (which may or may not be coterminous with the vesting schedule of the Award).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "***Rule 16b-3***" means Rule 16b-3, promulgated by the SEC under Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "***SAR***" means a share appreciation right granted to an Eligible Person under <u>Section</u> <u>6(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "***SEC***" means the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "***Securities Act***" means the Securities Act of 1933, as amended from time to time, including the guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "***Shares***" means Class A Shares and such other securities as may be substituted (or re-substituted) for Shares pursuant to <u>Section</u> <u>8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "***Share Award***" means unrestricted Shares granted to an Eligible Person under <u>Section</u> <u>6(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "***Substitute Award***" means an Award granted under <u>Section</u> <u>6(j)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Administration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authority of the Committee</u>. The Plan shall be administered by the Committee except to the extent the Board elects to administer the Plan, in which case references herein to the "Committee" shall be deemed to include references to the "Board." Subject to the express provisions of the Plan, Rule 16b-3 and other applicable laws, the Committee shall have the authority, in its sole and absolute discretion, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) designate Eligible Persons as Participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) determine the type or types of Awards to be granted to an Eligible Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) determine the number of Shares or amount of cash to be covered by Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) determine the terms and conditions of any Award, including whether, to what extent and under what circumstances Awards may be vested, settled, exercised, cancelled or forfeited (including conditions based on continued employment or service requirements or the achievement of one or more performance goals);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) modify, waive or adjust any term or condition of an Award that has been granted, which may include the acceleration of vesting, waiver of forfeiture restrictions, modification of the form of settlement of the Award (for example, from cash to Shares or vice versa), early termination of a performance period, or modification of any other condition or limitation regarding an Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) determine the treatment of an Award upon a termination of employment or other service relationship;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) impose a holding period with respect to an Award or the Shares received in connection with an Award;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) interpret and administer the Plan and any Award Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) correct any defect, supply any omission or reconcile any inconsistency in the Plan, in any Award, or in any Award Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. Any action of the Committee shall be final, conclusive and binding on all persons, including the Company and its successors and assigns, the Affiliates, shareholders, Participants, beneficiaries, and permitted transferees under <u>Section</u> <u>7(a)</u> or other persons claiming rights from or through a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise of Committee Authority</u>. At any time that a member of the Committee is not a Qualified Member, any action of the Committee relating to an Award granted or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the Company where such action is not taken by the full Board may be taken either (i) by a subcommittee, designated by the Committee, composed solely of two or more Qualified Members, or (ii) by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; <u>provided</u> that upon such abstention or recusal, the Committee remains composed solely of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of the Plan. For the avoidance of doubt, the full Board may take any action relating to an Award granted or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delegation of Authority</u>. The Committee may delegate any or all of its powers and duties under the Plan to a subcommittee of directors or to any officer of the Company, including the power to perform administrative functions and grant Awards; <u>provided</u> that such delegation does not (i) violate state or corporate law, or (ii) result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company. Upon any such delegation, all references in the Plan to the "Committee," other than in <u>Section</u> <u>8</u>, shall be deemed to include any subcommittee or officer of the Company to whom such powers have been delegated by the Committee. Any such delegation shall not limit the right of such subcommittee members or such an officer to receive Awards; <u>provided</u> that such subcommittee members and any such officer may not grant Awards to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate, or take any action with respect to any Award previously granted to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate. The Committee may also appoint agents who are not executive officers of the Company or members of the Board to assist in administering the Plan, <u>provided</u> that such individuals may not be delegated the authority to grant or modify any Awards that will, or may, be settled in Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Limitation of Liability</u>. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or employee of the Company or any Affiliate, the Company's legal counsel, independent auditors, consultants or any other agents assisting in the administration of the Plan. Members of the Committee and any officer or employee of the Company or any Affiliate acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Participants in Non-U.S. Jurisdictions</u>. Notwithstanding any provision of the Plan to the contrary, to comply with applicable laws in countries other than the United States in which the Company or any Affiliate operates or has employees, directors or other service providers from time to time, or to ensure that the Company complies with any applicable requirements of foreign securities exchanges, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which of the Affiliates shall be covered by the Plan; (ii) determine which Eligible Persons outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to Eligible Persons outside the United States to comply with applicable foreign laws or listing requirements of any foreign exchange; (iv) establish sub-plans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such sub-plans and/or modifications shall be attached to the Plan as appendices), <u>provided</u> that no such sub-plans and/or modifications shall increase the share limitations contained in <u>Section</u> <u>4(a)</u>; and (v) take any action, before or after an Award is granted, that it deems advisable to comply with any applicable governmental regulatory exemptions or approval or listing requirements of any such foreign securities exchange. For purposes of the Plan, all references to foreign laws, rules, regulations or taxes shall be references to the laws, rules, regulations and taxes of any applicable jurisdiction other than the United States or a political subdivision thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Shares Subject to the Plan**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares Available for Delivery</u>. Subject to adjustment in a manner consistent with <u>Section</u> <u>8</u>, Shares are reserved and available for delivery with respect to Awards, and such total shall be available for the issuance of shares upon the exercise of ISOs; <u>provided</u>, that, on January 1 of each calendar year occurring after the Effective Date and prior to the tenth anniversary of the Effective Date, the total number of Shares reserved and available for delivery with respect to Awards under the Plan shall increase by a number of Shares equal to the lesser of (x) 2% of the total number of Class A Shares and Class B Shares outstanding as of December 31 of the immediately preceding calendar year; (y) the number of Shares required to bring the total Shares available for issuance under the Plan to % of the total number of Class A Shares and Class B Shares outstanding as of December 31 of the immediately preceding calendar year; or (z) such smaller number of Shares as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application of Limitation to Grants of Awards</u>. Subject to <u>Section</u> <u>4(c)</u>, no Award may be granted if the number of Shares that may be delivered in connection with such Award exceeds the number of Shares remaining available under the Plan minus the number of Shares issuable in settlement of or relating to then-outstanding Awards. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or Substitute Awards) and make adjustments if the number of Shares actually delivered differs from the number of shares previously counted in connection with an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Availability of Shares Not Delivered under Awards</u>. If all or any portion of an Award expires or is cancelled, forfeited, exchanged, settled in cash or is otherwise terminated without the delivery of Shares, the Shares subject to such Award (including (i) Shares forfeited with respect to Restricted Shares, and (ii) the number of Shares withheld or surrendered to the Company in payment of any exercise or purchase price of an Award or taxes relating to Awards) shall not be considered "delivered Shares" under the Plan, shall be available for delivery with respect to Awards, and shall no longer be considered issuable or related to outstanding Awards for purposes of <u>Section</u> <u>4(b)</u>. If an Award may be settled only in cash, such Award need not be counted against any Share limit under this <u>Section</u> <u>4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Shares Available Following Certain Transactions</u>. Substitute Awards granted in accordance with applicable stock exchange requirements and in substitution or exchange for awards previously granted by a company acquired by the Company or any subsidiary or with which the Company or any subsidiary combines shall not reduce the number of Shares authorized for issuance under the Plan or the limitations on grants to non-employee members of the Board under <u>Section</u> <u>5(b)</u>, nor shall Shares subject to such Substitute Awards be added to the Shares available for issuance under the Plan as provided above (whether or not such Substitute Awards are later cancelled, forfeited or otherwise terminated).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Shares Offered</u>. The Shares to be delivered under the Plan shall be made available from (i) authorized but unissued Shares, (ii) Shares held in the treasury of the Company, or (iii) previously issued Shares reacquired by the Company, including Shares purchased on the open market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Eligibility; Award Limitations for Non-Employee Members of the Board**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Awards may be granted under the Plan only to Eligible Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In each calendar year during any part of which the Plan is in effect, a non-employee member of the Board may not be granted Awards for such individual's service on the Board having a value (determined, if applicable, pursuant to ASC Topic 718) on the date of grant in excess of $1,000,000; <u>provided</u> that for any calendar year in which a non-employee member of the Board (i) first commences service on the Board, (ii) serves on a special committee of the Board, or (iii) serves as lead director or chairman of the Board, additional Awards may be granted to such non-employee member of the Board in excess of such limit; <u>provided</u>, <u>further</u>, that the limit set forth in this <u>Section</u> <u>5(b)</u> shall be applied without regard to (A) cash fees paid to a non-employee member of the Board during such calendar year (or grants of Awards, if any, made to a non-employee member of the Board in lieu of all or any portion of such cash fees) or (B) grants of Awards, if any, made to a non-employee member of the Board during any period in which such individual was an employee of the Company or any Affiliate or was otherwise providing services to the Company or to any Affiliate other than in the capacity as a director of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Specific Terms of Awards**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Awards may be granted on the terms and conditions set forth in this <u>Section</u> <u>6</u>. Awards granted under the Plan may, in the discretion of the Committee, be granted either alone, in addition to, or in tandem with any other Award. In addition, the Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to <u>Section</u> <u>10</u>), such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including subjecting such awards to service- or performance-based vesting conditions. Without limiting the scope of the preceding sentence, with respect to any performance-based conditions, (i) the Committee may use one or more business criteria or other measures of performance as it may deem appropriate in establishing any performance goals applicable to an Award, (ii) any such performance goals may relate to the performance of the Participant, the Company (on a consolidated basis), or to specified subsidiaries, business or geographical units or operating areas of the Company, (iii) the performance period or periods over which performance goals will be measured shall be established by the Committee, and (iv) any such performance goals and performance periods may differ among Awards granted to any one Participant or to different Participants. To the extent provided in an Award Agreement, the Committee may exercise its discretion to reduce or increase the amounts payable under any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Options</u>. The Committee is authorized to grant Options, which may be designated as either ISOs or Nonstatutory Options, to Eligible Persons on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Exercise Price</u>. Each Award Agreement evidencing an Option shall state the exercise price per Share (the "***Exercise Price***") established by the Committee; <u>provided</u> that except as provided in <u>Section</u> <u>6(j)</u> or in <u>Section</u> <u>8</u>, the Exercise Price of an Option shall not be less than the greater of (A) the par value per Share or (B) 100% of the Fair Market Value per Share as of the date of grant of the Option (or in the case of an ISO granted to an individual who owns Shares possessing more than 10% of the total combined voting power of all classes of shares of the Company or its parent or any of its subsidiaries, 110% of the Fair Market Value per Share on the date of grant).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Time and Method of Exercise; Other Terms</u>. The Committee shall determine the methods by which the Exercise Price may be paid or deemed to be paid, the form of such payment, including cash or cash equivalents, Shares (including previously owned shares or through a cashless exercise, i.e., "net settlement", a broker-assisted exercise, or other reduction of the amount of shares otherwise issuable pursuant to the Option), other Awards or awards granted under other plans of the Company or any Affiliate, other property, or any other legal consideration the Committee deems appropriate (including notes or other contractual obligations of Participants to make payment on a deferred basis), the methods by or forms in which Shares will be delivered or deemed to be delivered to Participants, including the delivery of Restricted Shares subject to <u>Section</u> <u>6(d)</u>, and any other terms and conditions of any Option. In the case of an exercise whereby the Exercise Price is paid with Shares, such Shares shall be valued based on the Share's Fair Market Value as of the date of exercise. No Option may be exercisable for a period of more than ten years following the date of grant of the Option (or in the case of an ISO granted to an individual who owns shares possessing more than 10% of the total combined voting power of all classes of shares of the Company or its parent or any of its subsidiaries, for a period of more than five years following the date of grant of the ISO).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>ISOs</u>. The terms of any ISO granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code. ISOs may only be granted to Eligible Persons who are employees of the Company or employees of a parent or any subsidiary corporation (as defined in Section 424 of the Code) of the Company. Except as otherwise provided in <u>Section</u> <u>8</u>, no term of the Plan relating to ISOs (including any SAR in tandem therewith) shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify either the Plan or any ISO under Section 422 of the Code, unless notice has been provided to the Participant that such change will result in such disqualification. ISOs shall not be granted more than ten years after the earlier of the adoption of the Plan or the approval of the Plan by the Company's shareholders. Notwithstanding the foregoing, to the extent that the aggregate Fair Market Value of Shares subject to an ISO and the aggregate Fair Market Value of Shares of any parent or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) subject to any other incentive stock options of the Company or a parent or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) that are exercisable for the first time by a Participant during any calendar year exceeds $100,000, or such other amount as may be prescribed under Section 422 of the Code, such excess shall be treated as Nonstatutory Options in accordance with the Code. As used in the previous sentence, Fair Market Value shall be determined as of the date the ISO is granted. If a Participant shall make any disposition of Shares issued pursuant to an ISO under the circumstances described in Section 421(b) of the Code (relating to disqualifying dispositions), the Participant shall notify the Company of such disposition within the time provided to do so in the applicable award agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>SARs</u>. The Committee is authorized to grant SARs to Eligible Persons on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Right to Payment</u>. A SAR is a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one Share on the date of exercise over (B) the grant price of the SAR as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Grant Price</u>. Each Award Agreement evidencing a SAR shall state the grant price per Share established by the Committee; <u>provided</u> that except as provided in <u>Section</u> <u>6(j)</u> or in <u>Section</u> <u>8</u>, the grant price per Share subject to a SAR shall not be less than the greater of (A) the par value per Share or (B) 100% of the Fair Market Value per Share as of the date of grant of the SAR.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Method of Exercise and Settlement; Other Terms</u>. The Committee shall determine the form of consideration payable upon settlement, the method by or forms in which Shares (if any) will be delivered or deemed to be delivered to Participants, and any other terms and conditions of any SAR. SARs may be either free-standing or granted in tandem with other Awards. No SAR may be exercisable for a period of more than ten years following the date of grant of the SAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Rights Related to Options</u>. A SAR granted in connection with an Option shall entitle a Participant, upon exercise, to surrender that Option or any portion thereof, to the extent unexercised, and to receive payment of an amount determined by multiplying (A) the difference obtained by subtracting the Exercise Price with respect to a Share specified in the related Option from the Fair Market Value of a Share on the date of exercise of the SAR, by (B) the number of shares as to which that SAR has been exercised. The Option shall then cease to be exercisable to the extent surrendered. SARs granted in connection with an Option shall be subject to the terms and conditions of the Award Agreement governing the Option, which shall provide that the SAR is exercisable only at such time or times and only to the extent that the related Option is exercisable and shall not be transferable except to the extent that the related Option is transferrable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Restricted Shares</u>. The Committee is authorized to grant Restricted Shares to Eligible Persons on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Restrictions</u>. Restricted Shares shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose. Except as provided in <u>Section</u> <u>7(a)(iii)</u> and <u>Section</u> <u>7(a)(iv)</u>, during the restricted period applicable to the Restricted Shares, the Restricted Shares may not be sold, transferred, pledged, hedged, hypothecated, margined or otherwise encumbered by the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Dividends and Splits</u>. As a condition to the grant of an Award of Restricted Shares, the Committee may allow a Participant to elect, or may require, that any cash dividends paid on a Restricted Share be automatically reinvested in additional Restricted Shares, applied to the purchase of additional Awards or deferred without interest to the date of vesting of the associated Award of Restricted Shares. Unless otherwise determined by the Committee and specified in the applicable Award Agreement, Shares distributed in connection with a Share split or Share dividend, and other property (other than cash) distributed as a dividend, shall be paid to the Award holder at the same time that the Shares or other property are distributed to shareholders generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Restricted Share Units</u>. The Committee is authorized to grant Restricted Share Units to Eligible Persons on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Award and Restrictions</u>. Restricted Share Units shall be subject to such restrictions (which may include a risk of forfeiture) as the Committee may impose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Settlement</u>. Settlement of vested Restricted Share Units shall occur upon vesting or upon expiration of the deferral period specified for such Restricted Share Units by the Committee (or, if permitted by the Committee, as elected by the Participant). Restricted Share Units shall be settled by delivery of (A) a number of Shares equal to the number of Restricted Share Units for which settlement is due, or (B) cash in an amount equal to the Fair Market Value of the specified number of Shares equal to the number of Restricted Share Units for which settlement is due, or a combination thereof, as determined by the Committee at the date of grant or thereafter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Share Awards</u>. The Committee is authorized to grant Share Awards to Eligible Persons as a bonus, as additional compensation, or in lieu of cash compensation any such Eligible Person is otherwise entitled to receive, in such amounts and subject to such other terms as the Committee in its discretion determines to be appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Dividend Equivalents</u>. The Committee is authorized to grant Dividend Equivalents to Eligible Persons, entitling any such Eligible Person to receive cash, Shares, other Awards, or other property equal in value to dividends or other distributions paid with respect to a specified number of Shares. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award . The Committee may provide that Dividend Equivalents that are granted as free-standing awards shall be paid or distributed when accrued or at a later specified date and, if distributed at a later date, may be deemed to have been reinvested in additional Shares, Awards, or other investment vehicles or accrued in a bookkeeping account without interest, and subject to such restrictions on transferability and risks of forfeiture, as the Committee may specify. With respect to Dividend Equivalents granted in connection with another Award, absent a contrary provision in the Award Agreement, such Dividend Equivalents shall be paid out to the Award holder at the same time that the underlying dividend giving rise to the Dividend Equivalent was paid to shareholders generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Share-Based Awards</u>. The Committee is authorized, subject to limitations under applicable law, to grant to Eligible Persons such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the Plan, including convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Shares or the value of securities of, or the performance of, specified Affiliates. The Committee shall determine the terms and conditions of such Other Share-Based Awards. Shares delivered pursuant to an Other-Share Based Award in the nature of a purchase right granted under this <u>Section</u> <u>6(h)</u> shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including cash, Shares, other Awards, or other property, as the Committee shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Cash Awards</u>. The Committee is authorized to grant Cash Awards, on a free-standing basis or as an element of, a supplement to, or in lieu of any other Award under the Plan to Eligible Persons in such amounts and subject to such other terms as the Committee in its discretion determines to be appropriate, including for purposes of any annual or short-term incentive or other bonus program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Substitute Awards; No Repricing</u>. Awards may be granted in substitution or exchange for any other Award granted under the Plan or under another plan of the Company or an Affiliate or any other right of an Eligible Person to receive payment from the Company or an Affiliate. Awards may also be granted under the Plan in assumption of, or substitution for, awards held by individuals who become Eligible Persons as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or with the Company or an Affiliate. Such Substitute Awards referred to in the immediately preceding sentence that are Options or SARs may have an exercise price that is less than the Fair Market Value of a Share on the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation Rules and other applicable laws and exchange rules. Except as provided in this <u>Section</u> <u>6(j)</u> or in <u>Section</u> <u>8</u>, without the approval of the shareholders of the Company, the terms of outstanding Awards may not be amended to (i) reduce the Exercise Price or grant price of an outstanding Option or SAR, (ii) grant a new Option, SAR or other Award in substitution for, or upon the cancellation of, any previously granted Option or SAR that has the effect of reducing the Exercise Price or grant price thereof, (iii) exchange any Option or SAR for Shares, cash or other consideration when the Exercise Price or grant price per Share under such Option or SAR exceeds the Fair Market Value of a Share or (iv) take any other action that would be considered a "repricing" of an Option or SAR under the applicable listing standards of the national securities exchange on which the Shares are listed (if any).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Certain Provisions Applicable to Awards**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Limit on Transfer of Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in <u>Sections 7(a)(iii)</u> and <u>(iv)</u>, each Option and SAR shall be exercisable only by the Participant during the Participant's lifetime, or by the person to whom the Participant's rights shall pass by will or the laws of descent and distribution. Notwithstanding anything to the contrary in this <u>Section</u> <u>7(a)</u>, an ISO shall not be transferable other than by will or the laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as provided in <u>Sections 7(a)(i)</u>, <u>(iii)</u> and <u>(iv)</u>, no Award, other than a Share Award, and no right under any such Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent specifically provided by the Committee and permitted pursuant to Form S-8 and the instructions thereto, an Award may be transferred by a Participant on such terms and conditions as the Committee may from time to time establish; <u>provided</u> that no Award (other than a Share Award) may be transferred to a third-party financial institution for value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) An Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the Company of a written request for such transfer and a certified copy of such order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Form and Timing of Payment under Awards; Deferrals</u>. Subject to the terms of the Plan and any applicable Award Agreement, payments to be made by the Company or any Affiliates upon the exercise or settlement of an Award may be made in such forms as the Committee shall determine in its discretion, including cash, Shares, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis (which may be required by the Committee or permitted at the election of the Participant on terms and conditions established by the Committee); <u>provided</u> that any such deferred or installment payments will be set forth in the Award Agreement. Payments may include provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Evidencing Shares</u>. The Shares or other securities of the Company delivered pursuant to an Award may be evidenced in any manner deemed appropriate by the Committee in its sole discretion, including in the form of a certificate issued in the name of the Participant or by book entry, electronic or otherwise, and shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Shares or other securities are then listed, and any applicable federal, state or other laws, and the Committee may cause a legend or legends to be inscribed on any such certificates to make appropriate reference to such restrictions. Further, if certificates representing Restricted Shares are registered in the name of the Participant, the Company may retain physical possession of the certificates and may require that the Participant deliver a share power to the Company, endorsed in blank, related to the Restricted Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Consideration for Grants</u>. Awards may be granted for such consideration, including services, as the Committee shall determine, but shall not be granted for less than the minimum lawful consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Additional Agreements</u>. Each Eligible Person to whom an Award is granted under the Plan may be required to agree in writing, as a condition to the grant of such Award or otherwise, to subject an Award that is exercised or settled following such Eligible Person's termination of employment or service to a general release of claims and/or a noncompetition or other restricted covenant agreement in favor of the Company and the Affiliates, with the terms and conditions of such agreement(s) to be determined in good faith by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Subdivision or Consolidation; Recapitalization; Change in Control; Reorganization**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Existence of Plans and Awards</u>. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Company, the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Shares or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Additional Issuances</u>. Except as expressly provided herein, the issuance by the Company of Shares of any class, including upon conversion of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares subject to Awards theretofore granted or the purchase price per Share, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subdivision or Consolidation of Shares</u>. The terms of an Award and the Share limitations under the Plan shall be subject to adjustment by the Committee from time to time, in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>Section</u> <u>9(k)</u>, if at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Share split, by the issuance of a distribution on Shares payable in Shares, or otherwise) the number of Shares then outstanding into a greater number of Shares or in the event the Company distributes an extraordinary cash dividend, then, as appropriate (A) the maximum number of Shares available for delivery with respect to Awards and applicable limitations with respect to Awards provided in <u>Section</u> <u>4</u> and <u>Section</u> <u>5</u> (other than cash limits) shall be increased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of Shares (or other kind of shares or securities) that may be acquired under any then-outstanding Award shall be increased proportionately, and (C) the price (including the Exercise Price or grant price) for each Share (or other kind of shares or securities) subject to then-outstanding Awards shall be reduced proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions; <u>provided</u> that in the case of an extraordinary cash dividend that is not an Adjustment Event, the adjustment to the number of Shares and the Exercise Price or grant price, as applicable, may be made in such other manner as the Committee may determine that is permitted pursuant to applicable tax and other laws, rules and regulations. Notwithstanding the foregoing, Awards that already have a right to receive extraordinary cash dividends as a result of Dividend Equivalents or other dividend rights will not be adjusted as a result of an extraordinary cash dividend.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, by reverse Share split, or otherwise) the number of Shares then outstanding into a lesser number of Shares, then, as appropriate (A) the maximum number of Shares available for delivery with respect to Awards and applicable limitations with respect to Awards provided in <u>Section</u> <u>4</u> and <u>Section</u> <u>5</u> (other than cash limits) shall be decreased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of Shares (or other kind of shares or securities) that may be acquired under any then-outstanding Award shall be decreased proportionately, and (C) the price (including the Exercise Price or grant price) for each Share (or other kind of shares or securities) subject to then-outstanding Awards shall be increased proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Recapitalization</u>. In the event of any change in the capital structure or business of the Company or other corporate transaction or event that would be considered an "equity restructuring" within the meaning of ASC Topic 718 and, in each case, that would result in an additional compensation expense to the Company pursuant to the provisions of ASC Topic 718, if adjustments to Awards with respect to such event were discretionary or otherwise not required (each such an event, an "***Adjustment Event***"), then the Committee shall equitably adjust (i) the aggregate number or kind of shares that thereafter may be delivered under the Plan, (ii) the number or kind of shares or other property (including cash) subject to an Award, (iii) the terms and conditions of Awards, including the purchase price or Exercise Price of Awards and performance goals, as applicable, and (iv) the applicable limitations with respect to Awards provided in <u>Section</u> <u>4</u> and <u>Section</u> <u>5</u> (other than cash limits) to equitably reflect such Adjustment Event ("***Equitable Adjustments***"). In the event of any change in the capital structure or business of the Company or other corporate transaction or event that would not be considered an Adjustment Event, and is not otherwise addressed in this <u>Section</u> <u>8</u>, the Committee shall have complete discretion to make Equitable Adjustments (if any) in such manner as it deems appropriate with respect to such other event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Change in Control and Other Events</u>. In the event of a Change in Control or other changes in the Company or the Outstanding Class A Shares by reason of a recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant change occurring after the date of the grant of any Award, all outstanding awards shall immediately vest in full and, to the extent applicable, become exercisable and nonforfeitable, without the consent or approval of any holder and without any action by the Committee, unless otherwise expressly provided in an Award Agreement. In addition to the foregoing, the Committee, acting in its sole discretion without the consent or approval of any holder, may exercise any power enumerated in <u>Section</u> <u>3</u> (including the power to accelerate vesting, waive any forfeiture conditions or otherwise modify or adjust any other condition or limitation regarding an Award) which may vary among individual holders and which may vary among Awards held by any individual holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **General Provisions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Tax Withholding</u>. the Company and any Affiliate are authorized to withhold from any Award granted, or any payment relating to an Award, including from a distribution of Shares, taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company, the Affiliates and Participants to satisfy the payment of withholding taxes and other tax obligations relating to any Award in such amounts as may be determined by the Committee. The Committee shall determine, in its sole discretion, the form of payment acceptable for such tax withholding obligations, including the delivery of cash or cash equivalents, Shares (including through delivery of previously owned shares, net settlement, a broker-assisted sale, or other cashless withholding or reduction of the amount of shares otherwise issuable or delivered pursuant to the Award), other property, or any other legal consideration the Committee deems appropriate. Any determination made by the Committee to allow a Participant who is subject to Rule 16b-3 to pay taxes with Shares through net settlement or previously owned shares shall be approved by either a committee made up of solely two or more Qualified Members or the full Board. If such tax withholding

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amounts are satisfied through net settlement or previously owned shares, the maximum number of Shares that may be so withheld or surrendered shall be the number of Shares that have an aggregate Fair Market Value on the date of withholding or surrender equal to the aggregate amount of such tax liabilities determined based on the greatest withholding rates for federal, state, foreign and/or local tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment for the Company with respect to such Award, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Limitation on Rights Conferred under Plan</u>. Neither the Plan nor any action taken hereunder shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or any Affiliate, (ii) interfering in any way with the right of the Company or any Affiliate to terminate any Eligible Person's or Participant's employment or service relationship at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under the Plan or to be treated uniformly with other Participants and/or employees and/or other service providers, or (iv) conferring on a Participant any of the rights of a shareholder of the Company unless and until the Participant is duly issued or transferred Shares in accordance with the terms of an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Governing Law; Submission to Jurisdiction</u>. All questions arising with respect to the provisions of the Plan and Awards shall be determined by application of the laws of the State of Texas, without giving effect to any conflict of law provisions thereof, except to the extent Texas law is preempted by federal law. The obligation of the Company to sell and deliver Shares hereunder is subject to applicable federal and state laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Shares. With respect to any claim or dispute related to or arising under the Plan, the Company and each Participant who accepts an Award hereby consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in Montgomery County, Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Severability and Reformation</u>. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. If any of the terms or provisions of the Plan or any Award Agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Eligible Persons who are subject to Section 16 of the Exchange Act) or Section 422 of the Code (with respect to ISOs), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule 16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3) or Section 422 of the Code, in each case, only to the extent Rule 16b-3 and such sections of the Code are applicable. With respect to ISOs, if the Plan does not contain any provision required to be included herein under Section 422 of the Code, that provision shall be deemed to be incorporated herein with the same force and effect as if that provision had been set out at length herein; <u>provided</u> that, to the extent any Option that is intended to qualify as an ISO cannot so qualify, that Option (to that extent) shall be deemed a Nonstatutory Option for all purposes of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Unfunded Status of Awards; No Trust or Fund Created</u>. The Plan is intended to constitute an "unfunded" plan for certain incentive awards. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or such Affiliate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Nonexclusivity of the Plan</u>. Neither the adoption of the Plan by the Board nor its submission to the shareholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable. Nothing contained in the Plan shall be construed to prevent the Company or any Affiliate from taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No employee, beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Fractional Shares</u>. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine in its sole discretion whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be cancelled, terminated, or otherwise eliminated with or without consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Interpretation</u>. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. Words in the masculine gender shall include the feminine gender, and, where appropriate, the plural shall include the singular and the singular shall include the plural. In the event of any conflict between the terms and conditions of an Award Agreement and the Plan, the provisions of the Plan shall control. The use herein of the word "including" following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as "without limitation", "but not limited to", or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. References herein to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and not prohibited by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Facility of Payment</u>. Any amounts payable hereunder to any individual under legal disability or who, in the judgment of the Committee, is unable to manage properly his financial affairs, may be paid to the legal representative of such individual, or may be applied for the benefit of such individual in any manner that the Committee may select, and the Company shall be relieved of any further liability for payment of such amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Conditions to Delivery of Shares</u>. Nothing herein or in any Award Agreement shall require the Company to issue any shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act, any other applicable statute or regulation, or the rules of any applicable securities exchange or securities association, as then in effect. In addition, each Participant who receives an Award under the Plan shall not sell or otherwise dispose of Shares that is acquired upon grant, exercise or vesting of an Award in any manner that would constitute a violation of any applicable federal or state securities laws, the Plan or the rules, regulations or other requirements of the SEC or any stock exchange upon which the Shares are then listed. At the time of any exercise of an Option or SAR, or at the time of any grant of any other Award, the Company may, as a condition precedent to the exercise of such Option or SAR or settlement of any other Award, require from the Participant (or in the event of his or her death, his or her legal representatives, heirs, legatees, or distributees) such written representations, if any, concerning the holder's intentions with regard to the

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retention or disposition of the Shares being acquired pursuant to the Award and such written covenants and agreements, if any, as to the manner of disposal of such shares as, in the opinion of counsel to the Company, may be necessary to ensure that any disposition by that holder (or in the event of the holder's death, his or her legal representatives, heirs, legatees, or distributees) will not involve a violation of the Securities Act, any other applicable state or federal statute or regulation, or any rule of any applicable securities exchange or securities association, as then in effect. Shares or other securities shall not be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including any Exercise Price, grant price, or tax withholding) is received by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Section 409A of the Code</u>. It is the general intention, but not the obligation, of the Committee to design Awards to comply with or to be exempt from the Nonqualified Deferred Compensation Rules, and Awards will be operated and construed accordingly. Neither this <u>Section</u> <u>9(k)</u> nor any other provision of the Plan is or contains a representation to any Participant regarding the tax consequences of the grant, vesting, exercise, settlement, or sale of any Award (or the Shares underlying such Award) granted hereunder, and should not be interpreted as such. In no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with the Nonqualified Deferred Compensation Rules. Notwithstanding any provision in the Plan or an Award Agreement to the contrary, in the event that a "specified employee" (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment under an Award that would be subject to additional taxes and interest under the Nonqualified Deferred Compensation Rules if the Participant's receipt of such payment or benefits is not delayed until the earlier of (i) the date of the Participant's death, or (ii) the date that is six months after the Participant's "separation from service," as defined under the Nonqualified Deferred Compensation Rules (such date, the "***Section 409A Payment Date***"), then such payment or benefit shall not be provided to the Participant until the Section 409A Payment Date. Any amounts subject to the preceding sentence that would otherwise be payable prior to the Section 409A Payment Date will be aggregated and paid in a lump sum without interest on the Section 409A Payment Date. The applicable provisions of the Nonqualified Deferred Compensation Rules are hereby incorporated by reference and shall control over any Plan or Award Agreement provision in conflict therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Clawback</u>. The Plan and all Awards granted hereunder are subject to any written clawback policies that the Company, with the approval of the Board or an authorized committee thereof, may adopt either prior to or following the Effective Date, including any policy adopted to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder by the SEC and that the Company determines should apply to Awards. Any such policy shall, to the extent required by law, or may otherwise subject a Participant's Awards and amounts paid or realized with respect to Awards to reduction, cancelation, forfeiture or recoupment if certain specified events or wrongful conduct occur, including an accounting restatement due to the Company's material noncompliance with financial reporting regulations or other events or wrongful conduct specified in any such clawback policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Status under ERISA</u>. The Plan shall not constitute an "employee benefit plan" for purposes of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Plan Effective Date and Term</u>. The Plan was adopted by the Board to be effective on the Effective Date. No Awards may be granted under the Plan on and after the tenth anniversary of the Effective Date. However, any Award granted prior to such termination (or any earlier termination pursuant to <u>Section</u> <u>10</u>), and the authority of the Board or Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award in accordance with the terms of the Plan, shall extend beyond such termination until the final disposition of such Award.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Amendments to the Plan and Awards.** The Committee may amend, alter, suspend, discontinue or terminate any Award or Award Agreement, the Plan or the Committee's authority to grant Awards without the consent of shareholders or Participants, except that any amendment or alteration to the Plan, including any increase in any share limitation, shall be subject to the approval of the Company's shareholders not later than the annual meeting next following such Committee action if such shareholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Shares may then be listed or quoted, and the Committee may otherwise, in its discretion, determine to submit other changes to the Plan to shareholders for approval; <u>provided</u> that, without the consent of an affected Participant, no such Committee action may materially and adversely affect the rights of such Participant under any previously granted and outstanding Award. For purposes of clarity, any adjustments made to Awards pursuant to <u>Section</u> <u>8</u> will be deemed not to materially and adversely affect the rights of any Participant under any previously granted and outstanding Award and therefore may be made without the consent of affected Participants.

## Exhibit 10.11

**Exhibit 10.11** 

**FORM OF EMPLOYEE SHARE PURCHASE PLAN** 

**WHEREAS**, EagleRock Land, LLC, a Texas limited liability company (the "***Company***"), desires to establish an employee share purchase plan to provide employees of the Company designated by the Company with an opportunity to purchase shares of common stock of the Company through Offerings of Options at a discount so as to further incentivize them to work for the continued success of the Company;

**NOW THEREFORE**, the Company hereby establishes the EagleRock Land LLC Employee Share Purchase Plan (the "***Plan***"), effective , 2026, as follows:

**Section 1. Definitions.** 

For purposes of the Plan, the following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "  ***Account***" means the bookkeeping account maintained by the Administrative Committee
that reflects the amount of payroll deductions credited on behalf of a Participant under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "  ***Administrative Committee***" means committee appointed to administer the Plan, which
shall be the Compensation Committee or another committee consisting of not less than two directors of the Company appointed by the Board, each of whom shall qualify as non-employee directors and in the absence
of such committee, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "  ***Authorized Leave of Absence***" means a bona fide leave of absence from service with
the Company if the period of the leave does not exceed 90 days, or, if longer, so long as the individual's right to reemployment with the Company is guaranteed either by statute or contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "  ***Base Compensation***" means base salary and overtime, excluding payments for shift
differentials, incentive compensation, bonuses, and other special payments, fees, allowances or extraordinary compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "  ***Beneficiary***" means the person who is entitled to receive amounts under the Plan upon
the death of a Participant as determined under Section 11(m).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "  ***Board***" means the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "  ***Code***" means the United States Internal Revenue Code of 1986, as amended from time to
time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "  ***Committee***" means the Compensation Committee of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "  ***Company***" means EagleRock Land LLC, a Texas limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "  ***Corporation***" has the meaning prescribed by Section 7701(a)(3) of the Code and
Treasury Regulation Section 301.7701-2(b). For example, the term Corporation includes a foreign corporation (as defined in Section 7701(a)(5) of the Code) and a limited liability company that is
treated as a corporation for all United States Federal income tax purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "  ***Employee***" means any individual employed by the Company, which, for the avoidance of
doubt, excludes (i) any independent contractor, (ii) any consultant, (iii) any individual performing services for the Company who has entered into an independent contractor or consulting agreement with the Company; (iv) any
individual performing services for the Company under an independent contractor or consulting agreement, a purchase order, a supplier or staffing agreement or any other agreement that the Company enters into for services; and (v) any individual
whose terms and conditions of employment are governed by a collective bargaining agreement resulting from good faith collective bargaining where participation under the Plan has been the subject of such bargaining and the collective bargaining
agents have made a decision on behalf of such employee not to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "  ***Exercise Date***" means the last Trading Day of each Offering Period, which is the day
that all Options that eligible Employees have elected to exercise are to be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "  ***Five Percent Owner***" means an owner of five percent or more of the total combined
voting power of all classes of shares of the Company. An individual is considered to own any shares that are owned directly or indirectly by or for their brothers and sisters (whether by whole or half-blood), spouse, ancestors and lineal
descendants. For purposes of determining whether an Employee is a Five Percent Owner, an Employee is considered to own shares that the Employee may purchase under outstanding options (including incentive stock options, nonqualified stock options,
Options granted under the Plan or any other stock options). Further, for purposes of determining whether an Employee is a Five Percent Owner, the rules of Section 424 of the Code (relating to attribution of share ownership) shall apply.
Accordingly, for purposes of determining whether an Employee is a Five Percent Owner, (i) the Employee is considered as owning the shares owned, directly or indirectly, by or for the Employee's brothers or sisters (whether by the whole or
half blood), spouse, ancestors and lineal descendants and (ii) shares owned, directly or indirectly, by or for a corporation, partnership, estate or trust is considered as being owned proportionately by or for its shareholders, partners, or
beneficiaries. The determination of the percentage of the total combined voting power of all classes of shares of the Company that are owned by an individual is made by comparing the voting power or value of the shares owned (or treated as owned) by
the individual to the aggregate voting power of all shares actually issued and outstanding immediately after the grant of the Option to the individual. The aggregate voting power or value of all shares actually issued and outstanding immediately
after the grant of the Option does not include the voting power or value of treasury shares or shares authorized for issue under outstanding options held by the individual or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "  ***Grant Date***" means the first day of each Offering Period, which is the day all
eligible Employees are granted an Option under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "  ***Highly Compensated Employee***" has the meaning specified in Section 414(q) of the
Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "  ***Offering***" means a given offering of Options under the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "  ***Offering Period***" means, with respect to a given Offering, the period beginning on
the Grant Date and ending on the Exercise Date. The Offering Periods shall begin and end at such times as are specified by the Administrative Committee. Unless and until the Administrative Committee specifies different Offering Periods in writing,
there shall be two Offering Periods during a calendar year, the first of which commences on    and ends on    and the second of which begins on    and ends
on    . In no event shall an Offering Period exceed 27 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "  ***Option***" means an option granted under the Plan to purchase Shares at the Option
Price on the Exercise Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "  ***Option Price***" means the price per Share to be paid by each Participant upon exercise
of an Option, which, subject to the following sentence, shall be    percent of the lesser of (i) the fair market value of a Share on the Grant Date or (ii) the fair market value of a Share on the Exercise Date.
Prior to the commencement of an Offering Period, the Board, the Committee or the Administrative Committee may, in lieu of the Option Price specified in the preceding sentence, establish in writing an Option Price for an Offering that is greater than
the amount specified in the preceding sentence; provided, that in no case shall such Option Price be lower than     percent of (i) the fair market value of a Share on the Grant Date or (ii) the fair market value of
a Share on the Exercise Date, as applicable. The Option Price may be stated as either a percentage or as a dollar amount. The Option Price shall be subject to adjustment under Section 4(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "  ***Participant***" means a person who is eligible to be granted an Option under the Plan
for the applicable Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "  ***Participating Subsidiary***" means any Subsidiary of the Company that has been
designated by the Administrative Committee, from time to time and in its sole discretion, as eligible to participate in the Plan; provided that each such Subsidiary is a "subsidiary corporation" within the meaning of Section 424(f)
of the Code at the time of participation and that such participation will not cause the Plan to fail to satisfy the requirements of Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "  ***Person***" shall have the meaning given in Section 3(a)(9) of the Securities
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any
Subsidiary thereof, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as
their ownership of Shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "  ***Plan***" means the EagleRock Land LLC Employee Share Purchase Plan, as set out in this
document and as it may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "  ***Qualified Employee Share Purchase Plan***" means a share purchase plan to the extent
that Section 423 of the Code applies to the plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "  ***Retirement***" means the Participant's voluntary termination of employment after
the date on which the Participant has reached the age of    and has a total of at least    years of continuous employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "  ***Securities Exchange Act***" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "  ***Shares***" means Class A shares representing limited liability company interests
in the Company. For the avoidance of doubt, "Shares" does not include the Company's Class B shares representing limited liability company interests, which carry no economic rights (including no right to receive dividends or
distributions upon liquidation of the Company), or any preferred shares that may be established and issued by the Company's board of directors from time to time. All Shares issued under this Plan shall be duly authorized, fully paid and non-assessable. Shares, when issued, may be represented by a certificate or by book or electronic entry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "  ***Subsidiary***" means, with respect to any Person, as of any date of determination, any
other Person as to which such first Person owns or otherwise controls, directly or indirectly, more than 50% of the voting shares or other similar interests or a sole general partnership interest or managing member or similar interest of such other
Person. An entity shall be deemed a Subsidiary of the Company for purposes of this definition only for such periods as the requisite ownership or control relationship is maintained, and only to the extent permitted by Section 424 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "  ***Trading Day***" means a day on which the New York Stock Exchange is open for trading.

**Section 2. Purpose, Share Commitment and Intent.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purpose. The purpose of the Plan is to provide Employees of the Company that are selected by the Company to
participate in the Plan an opportunity to purchase Shares through periodic Offerings of Options to purchase Shares at a discount and strengthen the commitment of Employees to the Company, motivate Employees to faithfully and diligently perform their
responsibilities and attract and retain competent and dedicated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Share Commitment. The aggregate number of Shares authorized to be sold pursuant to Options granted under the
Plan is    , subject to adjustment as provided in Section 4(g). In computing the number of Shares available for grant, any Shares relating to Options which are granted, but which subsequently lapse, are cancelled or are
otherwise not exercised by the final date for exercise, shall be available for future grants of Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Intent. It is the intention of the Company to have the Plan qualify as an "employee share purchase
plan" under Section 423 of the Code. Therefore, the provisions of the Plan are to be construed in a manner that is consistent with the requirements of Section 423 of the Code.

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**Section 3. Eligibility.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) General Requirements. Subject to Section 3(c), each Employee of the Company who is not excluded from
participation pursuant to Section 3(b) is eligible to participate in a given Offering if the individual is in the employ of the Company on the Grant Date; provided, that, subject to Section 3(b), an Employee hired during an Offering Period
will be eligible to participate in the next Offering. For purposes of this Section 3(a), the existence of the employment relationship between an individual and the Company will be determined under Treasury Regulation Section 1.421-1(h). Participation in the Plan by any Employee is voluntary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Exclusions From Participation. Subject to Section 3(c), under each Offering Options will be granted to all
Employees of the Company, except that one or more of the following categories of Employees may, at the discretion of the Administrative Committee, be excluded from coverage under an Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) *Persons Employed Less Than Two Years*. Employees who have been employed less than two years (or a lesser
period of time) as of the Grant Date may be excluded from an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) *Persons Customarily Employed Less Than 20 Hours Per Week*. Employees whose customary employment is 20
hours or less per week (or a lesser number of hours per week as may be specified in writing by the Administrative Committee) as of the Grant Date may be excluded from an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) *Persons Customarily Employed for Not More Than Five Months During a Calendar Year.* Employees whose
customary employment is for not more than five months in any calendar year as of the Grant Date (or a lesser number of months as may be specified in writing by the Administrative Committee) may be excluded from an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) *Persons Who Are Highly Compensated Employee* s. Employees who are Highly Compensated Employees as of the
Grant Date may be excluded from an Offering. Alternatively, Employees who are Highly Compensated Employees with compensation above a certain level as of the Grant Date may be excluded from an Offering. Alternatively, Employees who are both Highly
Compensated Employees and officers or subject to the disclosure requirements of Section 16(a) of the Securities Exchange Act as of the Grant Date may be excluded from an Offering. Any exclusion relating to Highly Compensated Employees must be
applied in an identical manner to all Highly Compensated Employees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) *Certain Residents of Foreign Jurisdictions.* Employees who are residents of a foreign jurisdiction
(without regard to whether they are also citizens of the United States or resident aliens within the meaning of Section 7701(b)(1)(A) of the Code) ("Foreign Residents") may be excluded from an Offering if (1) the grant of an
Option under the Offering to a citizen or resident of the foreign jurisdiction is prohibited under the laws of such jurisdiction or (2) compliance with the laws of the foreign jurisdiction would cause the Offering to violate the requirements of
Section 423 of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) *Default Exclusions From Participation.* Unless the Administrative Committee specifies in writing
different exclusions are applicable with respect to a given Offering, the persons referenced in paragraphs (1), (2), (3), (4) and(5) of this Section 3(b) shall be excluded from participation in an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) *Use of Exclusions Other Than Default Exclusions From Participation.* If the Administrative Committee
determines to apply exclusions from participation with respect to a given Offering that are different than the default exclusions specified in paragraph (6) of this Section 3(b), such exclusions shall be specified in writing. Any such
exclusions from participation shall be consistent with the provisions of this Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Limitations Upon Participation by Certain Shareholders. No Employee shall be granted an Option to the extent
that the Option would cause the Employee to be a Five Percent Owner immediately after the grant. Accordingly, an Employee who is a Five Percent Owner immediately prior to the Grant Date for an Offering shall not be granted an Option for such
Offering. An Employee who would become a Five Percent Owner immediately after the grant of an Option only as a result of the grant of the Option shall be granted an Option to purchase no more than the number of whole Shares that would not cause the
Employee to become a Five Percent Owner.

**Section 4. Options.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms of an Offering</u>. The terms of an Offering shall be established by the Administrative Committee. The
terms shall be set forth in writing and communicated to eligible Employees prior to the Grant Date for the Offering. The terms of an Offering shall include (1) a designation of the Company, (2) the identification of any exclusions from
participation applicable to the Offering (which exclusions must be permitted under Section 3(b)), (3) the Offering Period, and (4) the Option Price. Offerings may be consecutive and overlapping, and the terms of each Offering need not be
identical provided that the terms of the Plan and the Offering together satisfy the requirements of this Section 4(a) and Department of Treasury Regulations issued under Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Grant of Option</u>. Effective as of the Grant Date of each Offering, the Company shall grant an Option to
each Participant which shall be exercisable on the Exercise Date through funds accumulated by the Participant through payroll deductions made during the Offering Period. Each Option grant is subject to the availability of a sufficient number of
Shares reserved for purchase under the Plan. In the event there is an insufficient number of shares reserved for purchase under the Plan, the number of shares purchased shall be adjusted as provided in Section 4(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Maximum Number of Shares Subject to Option</u>. An Option granted to an Employee for any Offering shall be
for that number of whole Shares equal to the least of the number of whole Shares that may be purchased during the Offering Period (1) at the Option Price with the amount credited to the Participant's Account on the Exercise Date,
(2) under limitations established by the Administrative Committee or the Committee pursuant to Section 4(d), (3) under the limitation set forth in Section 4(e) or (4) without causing the Employee to become a Five Percent Owner.

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The number of Shares that may be purchased under an Option shall be subject to adjustment under Section 4(g) and Section 4(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Formula or Specific Share Limitation Established by the Company</u>. The Administrative Committee may
establish and announce to Participants prior to an Offering a maximum number of Shares that may be purchased by a Participant during the Offering Period. The Administrative Committee or the Committee may specify that the maximum amount of Shares
that a Participant may purchase under an Offering is determined on the basis of a uniform relationship to the total compensation or the basic or regular rate of compensation, of all Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Annual $25,000 Limitation</u>. No Employee will be permitted to purchase Shares under all Qualified Employee
Share Purchase Plans of the Company at a rate which exceeds $25,000 in fair market value of the Shares (determined at the time the Option is granted) for each calendar year in which any option granted to the Employee is outstanding at any time. This
limitation shall be applied taking into account the rules set forth in Treasury Regulation Section 1.423-2(i) (or a successor regulation). Accordingly, in applying the limitation set forth in this
Section 4(e), (1) the right to purchase Shares under an option accrues when the option (or any portion thereof) first becomes exercisable during the calendar year, (2) the right to purchase Shares under an option accrues at the rate
provided in the option, but in no case may such rate exceed $25,000 of fair market value of such Shares (determined at the time such option is granted) for any one calendar year and (3) a right to purchase Shares that has accrued under one
option granted pursuant to the Plan may not be carried over to any other option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Equal Rights and Privileges</u>. All Employees who are granted Options under an Offering must have equal
rights and privileges within the meaning of Section 423 of the Code and Treasury Regulation Section 1.423-2(f). An Offering will not fail to satisfy the requirements of this Section 4(f) if, in
order to comply with the laws of a foreign jurisdiction, the terms of an Option granted under the Offering to Foreign Residents are less favorable than the terms of Options granted under the Offering to Employees who are residents of the United
States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Adjustments of Options</u>. In the event of any (1) merger, amalgamation, consolidation,
reclassification, recapitalization, spin-off, spin-out, repurchase or other reorganization or corporate transaction or event, (2) ordinary or special dividend
(whether in the form of cash, Shares or other property), share split or reverse share split, (3) combination or exchange of Shares, (4) other change in corporate structure, or (5) any other transaction, distribution or action, which,
in any such case the Administrative Committee determines, in its sole discretion, affects the Shares such that an adjustment is appropriate, the total number of Shares authorized to be committed to the Plan, the number of Shares subject to each
outstanding Option, the Option Price applicable to each Option, and/or the consideration to be received upon exercise of each Option shall be appropriately adjusted by the Administrative Committee or the Committee. For the avoidance of doubt,
adjustments in accordance with this Section 4(g) shall not in any case be contrary to the rules of Section 423 of the Code. In addition, the Committee shall, in its sole discretion, have authority to provide for (a) the acceleration
of the Exercise Date of outstanding Options or (b) the conversion of outstanding Options into cash or other property to be received in certain of the transactions specified in this paragraph above upon the completion of the transaction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Insufficient Number of Shares</u>. If the number of Shares reserved for purchase for any Offering Period is
insufficient to cover the number of shares which Participants elect to purchase during such Offering Period, then the number of Shares which each Participant has a right to purchase on the Exercise Date shall be reduced to the number of Shares which
the Administrative Committee shall determine by multiplying the number of Shares reserved under the Plan for such Offering Period by a fraction, the numerator of which shall be the number of Shares which the Participant elected to purchase during
the Offering Period and the denominator of which shall be the total number of Shares which all Participants elected to purchase during such Offering Period.

**Section 5. Payroll Deductions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authorization of Payroll Deductions</u>. For an Employee to participate during a given Offering Period, they
must elect to participate in the Offering by authorizing deductions from their Base Compensation prior to the beginning of the Offering Period in accordance with procedures established by the Administrative Committee or the Committee. An Employee
who does not authorize payroll deductions from their Base Compensation with respect to a given Offering shall be deemed to have elected to not participate in the Offering. Unless otherwise determined by the Administrative Committee or the Committee,
the Participant's payroll deductions shall be limited to    percent of their Base Compensation. Subject to a Participant's right to discontinue payroll deductions as set forth in Section 5(c) and
Section 6, a Participant may not, during any Offering Period, change their percentage of payroll deduction for that Offering Period. A Participant may not make additional payments to the Participant's Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payroll Deductions Continuing</u>. A Participant's payroll deduction authorization may remain in
effect for all ensuing Offering Periods until changed by the Participant, subject to Section 5(a), in accordance with procedures established by the Administrative Committee or the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right to Stop Payroll Deductions</u>. A Participant shall have the right to discontinue the
Participant's payroll deduction authorization in accordance with procedures established by the Administrative Committee or the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Accounting for Funds</u>. As of each payroll deduction period, the Company shall cause to be credited to the
Participant's Account in a ledger established for that purpose the funds withheld from and attributable to the Participant's cash compensation for that period. No interest shall be credited to the Participant's Account at any time.
The obligation of the Company to the Participant for this Account shall be a general corporate obligation and shall not be funded through a trust nor secured by any assets which would cause the Participant to be other than a general creditor of the
Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Company's Use of Funds</u>. All payroll deductions received or held by the Company may be used by the
Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Return of Funds</u>. Except as specified herein, as soon as administratively practicable after the
expiration of an Offering Period, payroll deductions that are not used to purchase Shares during such Offering Period will be refunded to the Participants without interest. In accordance with procedures established by the Administrative Committee or
the Committee, the Company may be permitted to apply a Participant's unused payroll deductions to purchase additional Shares during a subsequent Offering Period, but only if the amount so applied does not exceed the value of a fractional share
that the Participant could not purchase during the preceding Offering Period (because purchases of fractional shares are not permitted under the Plan).

**Section 6. In Service Withdrawal, Termination or Death.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In Service Withdrawal</u>. A Participant may, at any time on or before 15 days prior to the Exercise Date,
or such other date as shall be selected by the Administrative Committee or the Committee from time to time, elect to withdraw all of the funds then credited to the Participant's Account by giving notice in accordance with the rules established
by the Administrative Committee or the Committee. The amount elected to be withdrawn by the Participant shall be paid to the Participant as soon as administratively feasible. Any election by a Participant to withdraw the Participant's cash
balance under the Plan terminates the Participant's right to exercise the Participant's Option on the Exercise Date and the Participant's entitlement to elect any further payroll deductions for the then-current Offering Period. If
the Participant wishes to participate in any future Offering Period, they must file a new payroll deduction election within the time frame required by the Administrative Committee or the Committee for participation for that Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Employment Prior to the Exercise Date</u>. Except as specified in Section 6(d) and
Section 6(e), if a Participant's employment with the Company is terminated for any reason, the Option granted to the Participant for that Offering Period shall lapse. If a Participant is on an Authorized Leave of Absence, for purposes of
the Plan, the Participant's employment with the Company shall be deemed to be terminated on the later of the 91st day of such leave or the date through which the Participant's employment is guaranteed either by statute or contract. The
Participant's funds then credited to the Participant's Account shall be returned to the Participant as soon as administratively feasible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Employment due to Death</u>. If a Participant's employment with the Company is
terminated due to death, the Participant's Beneficiary shall be refunded all of the funds then credited to the Participant's Account as of the date of the Participant's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination of Employment Due to Retirement Prior to the Exercise Date</u>. If a Participant's
employment with the Company is terminated due to the Retirement of the Participant, the Participant shall withdraw all of the funds then credited to the Participant's Account as of the Participant's termination date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination as a Result of a Disposition of Assets, a Division or an Entity</u>. A Participant whose
employment with the Company is terminated as a result of a disposition of assets, a division or an entity may, at their election by written notice to the Administrative Committee, either (1) exercise their Option as of the date of their
termination of employment, in which event the Company shall apply the amount accrued under the Plan at that time to the purchase at the Option Price of Shares or (2) request payment of the Participant's prior payroll deductions made under
the Plan at that time, in which event the Company promptly shall make such payment, and thereupon the Participant's interest in unexercised Options under the Plan shall terminate. If the Participant elects to exercise their Option, the date of
their termination of employment shall be deemed to be the Exercise Date for the purpose of computing the amount of the Option Price of the Shares. As determined by the Administrative Committee, a Participant shall be deemed to have terminated their
employment with the Company as a result of a disposition of assets, a division or an entity if such employment is terminated coincident with and as a result of the disposition.

**Section 7. Exercise of Option.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase of Shares</u>. Subject to the provisions of the Plan, on the Exercise Date of the applicable
Offering Period for an Offering, each Participant's Account shall be used to purchase the maximum number of whole Shares that can be purchased at the Option Price for that Offering. If in any Offering the total number of Shares to be purchased
by all Participants exceeds the number of Shares committed to the Plan, then each Participant shall be entitled to purchase only the Participant's pro rata portion of the Shares remaining available under the Plan based on the balances in each
Participant's Account as of the Exercise Date. After the purchase of all Shares available on the Exercise Date, all Options granted for the Offering to the extent not used are terminated because no Option shall remain exercisable after the
Exercise Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Accounting for Shares</u>. After the Exercise Date of each Offering, a report shall be given to each
Participant stating the amount of the Participant's Account, the number of Shares purchased and the Option Price. <u>Issuance of Shares</u>. The Administrative Committee may determine in its discretion the manner of delivery of the Shares
purchased under the Plan, which may be by electronic account entry into new or existing accounts, delivery of Shares certificates or any other means as the Administrative Committee, in its discretion, deems appropriate. The Administrative Committee
may, in its discretion, hold the Shares certificate for any Shares or cause it to be legended in order to comply with the securities laws of the applicable jurisdiction, or should the Shares be represented by book or electronic account entry rather
than a certificate, the Administrative Committee may take such steps to restrict transfer of the Shares as the Administrative Committee considers necessary or advisable to comply with applicable law.

**Section 8. Administration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Plan shall be administered under the direction of the Administrative Committee who shall
have the authority to administer the Plan and to make and adopt rules and regulations not inconsistent with the provisions of the Plan or the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delegation</u>. To the extent permitted by applicable law, the Administrative Committee may delegate to one
or more Employees some or all of its authority over the administration of the Plan. The Administrative Committee may appoint agents to assist it in administering the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Standard of Judicial Review of Committee Actions</u>. The Administrative Committee has full and absolute
discretion in the exercise of its authority under the Plan. Notwithstanding anything to the contrary, any action taken, or ruling or decision made by the Administrative Committee in the exercise of any of its powers and authority under the Plan
shall be final and conclusive as to all parties other than the Company, including without limitation all Participants and their beneficiaries, regardless of whether the Administrative Committee or one or more of its members may have an actual or
potential conflict of interest with respect to the subject matter of the action, ruling, or decision. No final action, ruling, or decision of the Administrative Committee shall be subject to de novo review in any judicial proceeding; and no final
action, ruling, or decision of the Administrative Committee may be set aside unless it is held to have been arbitrary and capricious by a final judgment of a court having jurisdiction with respect to the issue.

**Section 9. Participation in Plan By Designated Subsidiaries.** The Administrative Committee may, from time to time and in its sole discretion, designate any Subsidiary as a "Participating Subsidiary" for purposes of the Section 423 component of the Plan, effective for any future Offering or Offering Period, provided that (i) such entity is a "subsidiary corporation" within the meaning of Section 424(f) of the Code, and (ii) its participation will not cause the Plan to fail to satisfy the requirements of Section 423 of the Code. The Administrative Committee may condition, limit, or terminate any such designation as it deems necessary or advisable to ensure compliance with Section 423 of the Code and other applicable law. The terms and conditions of this Plan may be interpreted as necessary to give effect to the inclusion of such a Participating Subsidiary.

**Section 10. Termination and Amendment of the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination</u>. The Company may, by action of the Board or the Committee, terminate the Plan at any time
and for any reason. The Plan shall automatically terminate upon the purchase by Participants of all Shares committed to the Plan, unless the number of Shares committed to the Plan is increased by the Committee or the Board and approved by the
shareholders of the Company. Upon termination of the Plan, as soon as administratively feasible there shall be refunded to each Participant the remaining funds in the Participant's Account. The termination of the Plan shall not affect the
current Options already outstanding under the Plan to the extent there are Shares committed, unless the Participants agree otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment</u>. The Board or the Committee has the right to modify, alter or amend the Plan at any time and
from time to time to any extent that it deems advisable, including, without limiting the generality of the foregoing, any amendment to the Plan deemed necessary to ensure compliance with Section 423 of the Code. The Board or the Committee may
suspend the operation of the Plan for any period as it may deem advisable.

However, no amendment or suspension shall operate to reduce any amounts previously allocated to a Participant's Account, reduce a Participant's rights with respect to Shares previously purchased and held on the Participant's behalf under the Plan or adversely affect the current Option a Participant already has outstanding under the Plan without the Participant's agreement. Any amendment changing the aggregate number of Shares to be committed to the Plan and any other change for which shareholder approval is required under regulations issued by the Department of Treasury must be approved by the shareholders of the Company in order to be effective.

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**Section 11. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Plan Not An Employment Contract</u>. The adoption and maintenance of the Plan is not a contract between the
Company and its Employees which gives any Employee the right to be retained in its employment. Likewise, it is not intended to interfere with the rights of the Company to discharge any Employee at any time or to interfere with the Employee's
right to terminate the Employee's employment at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Options Are Not Transferable</u>. No Option granted to a Participant under the Plan is transferable by the
Participant otherwise than by will or the laws of descent and distribution, and must be exercisable, during the Participant's lifetime, only by the Participant. In the event any Participant attempts to violate the terms of this
Section 11(b), any Option held by the Participant shall be terminated by the Company and, upon return to the Participant of the remaining funds in the Participant's Account, all of the Participant's rights under the Plan will
terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Voting of Shares</u>. Shares held under the Plan for the account of each Participant shall be voted by the
holder of record of those Shares in accordance with the Participant's instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Rights of Shareholder</u>. No eligible Employee or Participant shall by reason of participation in the
Plan have any rights of a shareholder of the Company until they acquire Shares as provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Governmental Regulations</u>. The obligation to sell or deliver the Shares under the Plan is subject to the
approval of all governmental authorities required in connection with the authorization, purchase, issuance or sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. All notices and other communication in connection with the Plan shall be in the form specified
by the Administrative Committee and shall be deemed to have been duly given when sent to the Participant at the Participant's last known address or to the Participant's designated personal representative or beneficiary, or to the Company
or its designated representative, as the case may be. Such notification, at the discretion of the Administrator, may be made via the Company's electronic recordkeeping system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Indemnification of the Administrative Committee, the Committee and the Board</u>. In addition to all other
rights of indemnification as they may have as directors or as members of the Administrative Committee, the Committee, the members of the Administrative Committee and the Committee shall be indemnified by the Company to the extent permitted under
applicable law against the reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal, to which they or any of them may
be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option granted under the Plan, and against all amounts paid in settlement (provided the settlement is approved by independent legal counsel
selected by the Company) or paid by them in satisfaction of a judgment in any action, suit or proceeding, except in relation to matters as to which it is adjudged in the action, suit or proceeding, that the Administrative Committee or Committee
member is liable for gross negligence or willful misconduct in the performance of their duties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Tax Withholding</u>. At the time a Participant's Option is granted or exercised or at the time a
Participant disposes of some or all of the Shares purchased under the Plan, the Participant must make adequate provision for the Company's federal, state, foreign or other tax withholding obligations, if any, which arise upon the grant or
exercise of the Option or the disposition of the Shares. At any time, the Company may, but shall not be obligated to, withhold from the Participant's compensation the amount necessary for the Company to meet applicable withholding obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Gender and Number</u>. If the context requires it, words of one gender when used in the Plan shall include
the other genders, and words used in the singular or plural shall include the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Data Privacy</u>. By participating in the Plan, each Participant agrees to the collection, processing, use
and transfer of personal information by the Company that employs the Participant, the Company, the Administrative Committee and the Committee in order to administer the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Notice of Disposition</u>. By becoming a Participant in the Plan, each Participant agrees to promptly give
the Administrative Committee notice of any Shares disposed of within the later of (a) one year from the Exercise Date and (b) two years from the Grant Date with respect to such Shares, and the notice shall include the number of Shares
disposed of and the Exercise Date and the Grant Date for the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Dispositions in Compliance with Securities Laws</u>. By becoming a Participant in the Plan, each Participant
agrees that any dispositions of Shares by such Participant shall be in compliance with the provisions of federal, state and foreign securities laws, including the provisions of Section 16(b) of the Securities Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Beneficiary(ies)</u>. At the time of the Participant's or former Participant's death,
(a) any cash in the Plan or (b) any cash and Shares in the Account shall be distributed to such Participant's or former Participant's (1) executor or administrator or (2) their heirs at law, if there is no
administration of such Participant's or former Participant's estate. The Participant's or former Participant's executor or administrator or heirs at law, if there is no administration of such Participant's or former
Participant's estate, shall be such Participant's or former Participant's Beneficiaries. Before any distribution is made, the Administrative Committee may require appropriate written documentation of (a) the appointment of the
personal representative of the Participant's estate or (b) heirship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Severability</u>. Each provision of this Plan may be severed. If any provision is determined to be invalid
or unenforceable, that determination shall not affect the validity or enforceability of any other provision.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Binding Effect</u>. This Plan shall be binding upon any successor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Limitation on Liability</u>. Under no circumstances shall the Company incur liability for any indirect,
incidental, consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to this Plan or the
Company's role as Plan sponsor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Governing Law</u>. The Plan shall be governed by and construed in accordance with the laws of the State of
Texas, without giving effect to principles of conflicts of law of such state.

## Exhibit 10.12

**Exhibit 10.12** 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE OF INFORMATION THAT EAGLEROCK LAND, LLC TREATS AS PRIVATE OR CONFIDENTIAL.

**AMENDED AND RESTATED EMPLOYMENT AGREEMENT** 

This Amended and Restated Employment Agreement ("**<u>Agreement</u>**") is made and entered into by and between Hydrosource Logistics, LLC, a Texas limited liability company (the "**<u>Company</u>**"), EagleRock Land, LLC, a Texas limited liability company (the "**<u>EagleRock</u>**"), and Gregory Pipkin Jr. ("**<u>Executive</u>**") effective as of April 15, 2026 (the "**<u>Effective Date</u>**"). Prior to the IPO Effective Date (defined below), for purposes of this Agreement, EagleRock shall only be deemed a party to this Agreement for purposes of the Assignment contemplated below.

RECITALS

WHEREAS, the Executive and the Company previously entered into that certain Employment Agreement dated as of November 17, 2025 (as amended, the "**<u>Prior Agreement</u>**");

WHEREAS, the Company and the Executive wish to make certain changes to the Prior Agreement, and enter into this Agreement, which shall amend and restate the Prior Agreement in its entirety as of the Effective Date;

WHEREAS, pursuant to Section 18 of the Prior Agreement, the Prior Agreement may be amended at any time by written agreement between the Company and the Executive;

WHEREAS, the Executive is currently employed by the Company, and the parties acknowledge and agree that, effective automatically upon the effectiveness of the Form S-1 registration statement of EagleRock filed in connection with the IPO (as defined below, with the date of such effectiveness the "**<u>IPO Effective Date</u>**"), the Company shall assign this Agreement to EagleRock, after which EagleRock shall be deemed Executive's employer for all purposes under this Agreement and EagleRock shall assume all rights, responsibilities and obligations of the "**<u>Company</u>**" party within the Agreement (the "**<u>Assignment</u>**");

WHEREAS, the Assignment shall be deemed a springing assignment that is contingent upon and effective only upon the IPO Effective Date; and

WHEREAS, the Executive has also consented to this Assignment;

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Employment</u>**. During the Employment Period (as defined in <u>Section</u> <u>4</u>), the Company shall employ Executive, and Executive shall serve, as Chief Executive Officer of the Company and in such other position or positions as may be assigned from time to time by the board of managers (the "**<u>Board</u>**"). During the Employment Period, Executive's principal place of business shall be Houston, Texas, subject to travel as may be required in the course of Executive's duties from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Duties and Responsibilities of Executive</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Employment Period, Executive shall devote Executive's best efforts and full business time and attention to the businesses of the Company and its direct and indirect subsidiaries as may exist from time to time (collectively, the Parent and its direct and indirect subsidiaries are referred to as the "**<u>Company Group</u>**") as may be requested by the Board from time to time. Executive's authority, duties and responsibilities shall include those normally incidental to the position(s) identified in <u>Section</u> <u>1</u>, which will include leading and supporting the Company's efforts to become (or to cause one of its affiliates to become) publicly listed though transactions resulting in the Company (or one of its affiliates) being publicly listed or an initial public offering of the Company or one of its affiliates (such event, a "**<u>Public Listing</u>**"), and related strategic activities. Upon the consummation of a Public Listing, Executive will transition to Chief Executive Officer of the newly publicly traded entity ("**<u>Newco</u>**") subject to Newco's organizational approvals. Executive may, without violating this <u>Section</u> <u>2(a)</u>, (i) as a passive investment, own publicly traded securities, in an amount not to exceed 5% of any company, in such form or manner as will not require any services by Executive in the operation of the entities in which such securities are owned; (ii) engage in charitable and civic activities; or (iii) engage in other personal and passive investment activities, in each case, so long as such ownership, interests or activities do not interfere with Executive's ability to fulfill Executive's duties and responsibilities under this Agreement and are not inconsistent with Executive's obligations to any member of the Company Group or competitive with the business of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive owes each member of the Company Group fiduciary duties (including (i) duties of loyalty and disclosure and (ii) such fiduciary duties that an officer of the Company would have if the Company were a corporation organized under the laws of the State of Delaware), and the obligations described in this Agreement are in addition to, and not in lieu of, the obligations Executive owes each member of the Company Group under statutory and common law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Compensation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. During the Employment Period, the Company shall pay to Executive an annualized base salary of $500,000 (the "**<u>Base Salary</u>**"), less applicable taxes and other withholdings, in consideration for Executive's services under this Agreement, payable in substantially equal installments in conformity with the Company's customary payroll practices for similarly situated employees as may exist from time to time, but no less frequently than monthly. Executive's Base Salary shall be reviewed and may only be increased (not decreased) from time to time in the discretion of the Board or the compensation committee thereof. Upon the consummation of a Public Listing and Executive's transition to CEO of Newco, Executive's compensation will be reviewed and aligned with market practices for similar public companies as determined by Newco's board of directors (the "**<u>Newco Board</u>**") or compensation committee thereof (the "**<u>Newco Compensation Committee</u>**"), with input from an independent compensation consultant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Bonus</u>. For each complete calendar year that Executive is employed hereunder, Executive may be eligible for discretionary bonus compensation in an amount determined by the Board (or a committee thereof) in its sole discretion (the "**<u>Annual Bonus</u>**"). Each Annual Bonus, if any, shall be paid as soon as administratively feasible after the Board (or a committee thereof) has made such determination, but in no event later than March 15 following the end of the applicable year. Notwithstanding anything in this <u>Section</u> <u>3(b)</u> to the contrary, no Annual Bonus, if any, nor any portion thereof, shall be payable for any year unless Executive remains continuously employed by the Company from the Effective Date through the end of the applicable year to which such Annual Bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Public Listing Award</u>. Upon the successful completion of a Public Listing of Newco or a successor thereto and subject to Executive's continuous employment with the NewCo (the "**<u>Performance Condition</u>**"), NewCo shall grant Executive a one-time bonus of $10,000,000, payable in cash or in fully-vested shares of Newco, subject to Newco's applicable equity incentive plan and a definitive award agreement to be approved by the Newco Board or the Newco Compensation Committee (the "**<u>Public Listing Bonus</u>**"), on terms no less favorable to Executive than that provided under this Agreement. Within thirty (30) days following the Public Listing of Newco, the Company's Chief Executive Officer will provide Executive with a written notice that specifies whether the Public Listing Bonus will be paid in the form of cash, NewCo shares or a combination of cash and NewCo shares, with such decision regarding settlement to apply uniformly to all executive officers that are entitled to a "Public Listing Bonus" within their individual employment agreements. The Public Listing Bonus, whether payable in cash or shares of NewCo, shall be paid or issued to Executive in two tranches, with one-half (<sup>1</sup>⁄<sub>2</sub>) of such amount paid or issued within the first week of the fiscal quarter immediately following the quarter in which the Public Listing occurs and the remaining one-half (<sup>1</sup>⁄<sub>2</sub>) paid or issued within the first week of the fiscal quarter thereafter, but in all events no later than March 15 of such following calendar year. Further provided that settlement may occur at any time prior to such date, as determined by the Company's Chief Executive Officer in its sole discretion. Notwithstanding the time of settlement provided within this paragraph, if applicable, the number of shares issuable pursuant to the Public Listing Bonus shall be determined by dividing the amount payable in shares by the offering price in connection with the Public Listing, with any fractional share rounded down to the nearest whole share. The Public Listing Bonus will be subject to applicable taxes and other withholdings; provided that, to the extent the Public Listing Bonus is payable in shares, Executive shall have the right to elect to have any applicable withholding satisfied through the withholding of shares based on their then fair market value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Discretionary Cash Bonus</u>. To the extent that a Public Listing of the Company or affiliated entity does not occur and the Company or substantially all of the Company's assets are otherwise sold, Executive shall be entitled to a one-time cash bonus, in an amount determined by the Board (or a committee thereof) in its sole discretion, which shall be paid no later than thirty days following the date of such applicable sale, so long as Executive remains continuously employed through the date of such applicable sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Public Listing Additional Bonus.</u> Executive will be eligible to receive additional compensation (the "**<u>Public Listing Additional Bonus</u>**") as set forth in Exhibit A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Term of Employment</u>**. The initial term of Executive's employment under this Agreement shall be for the period beginning on the Effective Date and ending on the second anniversary of the Effective Date (the "**<u>Initial Term</u>**"). On the second anniversary of the Effective Date, the Initial Term shall expire and, at that time, the Company and Executive shall negotiate in good faith to enter into a new employment agreement, which will govern Executive's employment following the Initial Term. Notwithstanding any other provision of this Agreement, Executive's employment pursuant to this Agreement may be terminated at any time in accordance with <u>Section</u> <u>7</u>. The period from the Effective Date through the expiration of this Agreement or, if sooner, the termination of Executive's employment pursuant to this Agreement, regardless of the time or reason for such termination, shall be referred to herein as the "**<u>Employment Period</u>**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Business Expenses</u>**. Subject to <u>Section</u> <u>24</u> and otherwise applicable tax requirements, the Company shall reimburse Executive for Executive's reasonable out-of-pocket business-related expenses actually incurred in the performance of Executive's duties under this Agreement so long as Executive timely submits all documentation for such expenses, as required by Company policy in effect from time to time. Any such reimbursement of expenses shall be made by the Company upon or as soon as practicable following receipt of such documentation (but in any event not later than the close of Executive's taxable year following the taxable year in which the expense is incurred by Executive). In no event shall any reimbursement be made to Executive for any expenses incurred after the date of termination of Executive's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Benefits</u>**. During the Employment Period, Executive shall be eligible to participate in the same benefit plans and programs in which other similarly situated Company employees are eligible to participate, subject to the terms and conditions of the applicable plans and programs in effect from time to time. The Company shall not, however, by reason of this <u>Section</u> <u>6</u>, be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such plan or policy, so long as such changes are similarly applicable to similarly situated Company employees generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Termination of Employment</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company</u><u>'</u><u>s Right to Terminate Executive</u><u>'</u><u>s Employment for Cause</u>. The Company shall have the right to terminate Executive's employment hereunder at any time for Cause. For purposes of this Agreement, "**<u>Cause</u>**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive's willful failure, other than due to Disability, to substantially perform Executive's duties pursuant to this Agreement or to comply in any material respect with a lawful directive from the Board, as determined by the Board in good faith (sitting without Executive, if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Executive's conviction of, or plea of *nolo contendere* by Executive to, or imposition of unadjudicated probation for, any felony or any crime involving moral turpitude;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Executive's unlawful use or possession of illegal drugs on the Company's premises or while performing Executive's duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Executive's fraud, embezzlement, misappropriation, material misconduct or breach of fiduciary duty with respect to the Company; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Executive's material breach of this Agreement or any other written agreement between Executive and one or more members of the Company Group, including Executive's material breach of any representation, warranty or covenant made under any such agreement;

*provided*, *however*, that if Executive's actions or omissions as set forth in this <u>Section</u> <u>7</u> are of such a nature that the Board in good faith determines are curable by Executive, such actions or omissions must remain uncured thirty days after the Board first provided Executive written notice of the obligation to cure such actions or omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company</u><u>'</u><u>s Right to Terminate for Convenience</u>. The Company shall have the right to terminate Executive's employment for convenience at any time and for any reason, or no reason at all, upon written notice to Executive. For the avoidance of doubt, the Company's non-renewal of Executive's employment under this Agreement will be treated as a termination without Cause for purposes of <u>Section</u> <u>7(f)(ii)(A)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Executive</u><u>'</u><u>s Right to Terminate for Good Reason</u>. Executive shall have the right to terminate Executive's employment with the Company for Good Reason at any time following the second anniversary from the Effective Date, but only to the extent that a Public Listing of the Company or successor thereto has not occurred. For purposes of this Agreement, "**<u>Good Reason</u>**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in Executive's Base Salary or target bonus opportunity (other than an Across-the-Company Reduction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution in Executive's title, authority, duties or responsibilities with the Company or its subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the relocation of the geographic location of Executive's principal place of employment by more than fifty miles from the location of Executive's principal place of employment as of the Effective Date.

An "**<u>Across-the-Company Reduction</u>**" shall mean a general reduction in salaries of similarly situated senior executives employed by the Company.

Notwithstanding the foregoing provisions of this <u>Section</u> <u>7(c)</u> or any other provision of this Agreement to the contrary, any assertion by Executive of a termination for Good Reason shall not be effective unless all of the following conditions are satisfied: (A) the condition described in <u>Section</u> <u>7(c)(i)</u>, <u>(ii)</u> or <u>(iii)</u> giving rise to Executive's termination of employment must have arisen without Executive's prior written consent; (B) Executive must provide written notice to the Board of the existence of such condition(s) within sixty days after the initial occurrence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected for thirty days following the Board's receipt of such written notice; and (D) the date of Executive's termination of employment must occur within thirty days following the expiration of the Board's cure period in (C) above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death or Disability</u>. Upon the death of Executive, or upon written notice from the Company following Executive's Disability, Executive's employment with the Company shall automatically (and without any further action by any person or entity) terminate with no further obligation under this Agreement of either party hereunder. For purposes of this Agreement, a "**<u>Disability</u>**" shall exist if the Board determines in good faith that Executive is unable to perform the essential functions of Executive's position (after accounting for reasonable accommodation, if applicable and required by applicable law), due to physical or mental impairment that continues, or can reasonably be expected to continue, for a period in excess of one hundred-twenty (120) consecutive days or one hundred-eighty (180) days, whether or not consecutive (or for any longer period as may be required by applicable law), in any twelve-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Executive</u><u>'</u><u>s Right to Terminate for Convenience</u>. In addition to Executive's right to terminate Executive's employment for Good Reason, Executive shall have the right to terminate Executive's employment with the Company for convenience at any time and for any other reason, or no reason at all, upon thirty days' advance written notice to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Effect of Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Termination by the Company for Cause; Resignation by Executive without Good Reason; Termination Due to Death or Disability*. If Executive's employment hereunder is terminated by the Company for Cause (including a resignation by Executive at a time when grounds for Cause exist), Executive resigns without Good Reason, or Executive's employment terminates due to Executive's death or Disability, then Executive will be entitled to receive (A) all accrued but unpaid Base Salary through the date of termination of Executive's employment, (B) any unpaid or unreimbursed expenses incurred in accordance with applicable Company policy and (C) any benefits under the Company's employee benefit plans in accordance with the terms contained therein (collectively, the "**<u>Accrued Obligations</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Termination by the Company without Cause; Resignation by Executive for Good Reason*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If Executive's employment hereunder is terminated by the Company without Cause pursuant to <u>Section</u> <u>7(b)</u> (including the Company's non-renewal of Executive's employment under this Agreement) at any time, or is terminated by Executive for Good Reason pursuant to <u>Section</u> <u>7(c)</u> following the second anniversary from the Effective Date and only to the extent that a Public Listing of the Company or successor thereto has not occurred, then (1) Executive will be entitled to receive the Accrued Obligations and (2) so long as (and only if) Executive: (x) executes on or before the Release Expiration Date (as defined below), and does not revoke within any time provided by the Company to do so (such date on which the Release becomes effective, the "**<u>Release Effective Date</u>**"), a release of all claims in a form acceptable to the Company (the "**<u>Release</u>**"), which Release shall release each member of the Company Group and their respective affiliates, and the foregoing entities' respective shareholders, members, partners, officers, managers, directors, predecessors, successors, fiduciaries, employees, representatives, agents and benefit plans (and fiduciaries of such plans) from any and all claims, including any and all causes of action arising out of Executive's employment, engagement, or affiliation with the Company and any other member

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of the Company Group or the termination of such employment, engagement or affiliation, but excluding all claims to severance payments Executive may have under this <u>Section</u> <u>7</u>; and (y) abides by the terms of each of <u>Sections</u> <u>9</u>, <u>10</u> and <u>11</u>, the Company shall make severance payments to Executive in a total amount equal to $2,500,000 (such total severance payment being referred to as the "**<u>Severance Payment</u>**"). The Severance Payment will be paid in a single lump sum on the first regularly scheduled payroll date following the Release Effective Date; *provided* if the Review Period begins in one calendar year and ends in a second calendar year, the Severance Payment shall not be made until the first regularly scheduled payroll date in the second calendar year regardless of the Release Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Notwithstanding anything herein to the contrary, Executive shall have no right to terminate employment hereunder for Good Reason prior to November 3, 2027 and if such resignation occurs prior to the second anniversary from the Effective Date, Executive shall only be entitled to the Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If the Release is not executed and returned to the Company on or before the Release Expiration Date, or the required revocation period has not fully expired without revocation of the Release by Executive, then Executive shall not be entitled to any portion of the Severance Payment. As used herein, the "**<u>Release Expiration Date</u>**" is that date that is twenty-one days following the date upon which the Company delivers the Release to Executive (which shall occur no later than seven days after the date on which Executive's employment terminates (the "**<u>Termination Date</u>**") or, in the event that such termination of employment is "in connection with an exit incentive or other employment termination program" (as such phrase is defined in the Age Discrimination in Employment Act of 1967) and Executive is age 40 or over as of the Termination Date, the date that is forty-five days following such delivery date (such twenty-one or forty-five day period, as applicable, the "**<u>Review Period</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Disclosures</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive hereby represents and warrants that as of the Effective Date, there exist (i) no actual or potential Conflicts of Interest and (ii) no current or pending lawsuits, claims, charges or arbitrations filed against or involving Executive or any trust or vehicle owned or controlled by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive hereby represents and warrants that, during the course of discussions and negotiations regarding Executive's prospective employment with the Company, Executive has not disclosed, transmitted, furnished, or otherwise made available any Confidential Information (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly (and in any event, within three Business Days) upon becoming aware of (i) any actual or potential Conflict of Interest or (ii) any lawsuit, claim, charge or arbitration filed against or involving Executive or any trust or vehicle owned or controlled by Executive, in each case, Executive shall disclose such actual or potential Conflict of Interest or such lawsuit, claim, charge or arbitration to the Board. "**<u>Business Day</u>**" means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York or Dallas, Texas are authorized or required by law to be closed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A "**<u>Conflict of Interest</u>**" shall exist when Executive engages in, or plans to engage in, any activities, associations, or interests that conflict with, or create an appearance of a conflict with, Executive's duties, responsibilities, authorities, or obligations for and to any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Confidentiality</u>**. In the course of Executive's employment with the Company and the performance of Executive's duties on behalf of the Company Group hereunder, Executive will be provided with, and will have access to, Confidential Information (as defined below). In consideration of Executive's receipt and access to such Confidential Information, and as a condition of Executive's employment hereunder, Executive shall comply with this <u>Section</u> <u>9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Both during the Employment Period and thereafter, except as expressly permitted by this Agreement or by directive of the Board, Executive shall not disclose any Confidential Information to any person or entity and shall not use any Confidential Information except for the benefit of the Company Group. Executive acknowledges and agrees that Executive would inevitably use and disclose Confidential Information in violation of this <u>Section</u> <u>9</u> if Executive were to violate any of the covenants set forth in <u>Section</u> <u>10</u>. Executive shall follow all Company Group policies and protocols regarding the security of all documents and other materials containing Confidential Information (regardless of the medium on which Confidential Information is stored). Except to the extent required for the performance of Executive's duties on behalf of the Company Group, Executive shall not remove from facilities of any member of the Company Group any equipment, drawings, notes, reports, manuals, invention records, computer software, customer information, or other data or materials that relate in any way to the Confidential Information, whether paper or electronic and whether produced by Executive or obtained by the Company Group. The covenants of this <u>Section</u> <u>9(a)</u> shall apply to all Confidential Information, whether now known or later to become known to Executive during the period that Executive is employed by or affiliated with the Company or any other member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any provision of <u>Section</u> <u>9(a)</u> to the contrary, Executive may make the following disclosures and uses of Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) disclosures to other employees of a member of the Company Group who have a need to know Confidential Information in connection with the businesses of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) disclosures and uses that are approved in writing by the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) disclosures to a person or entity that has (A) been retained by a member of the Company Group to provide services to one or more members of the Company Group and (B) agreed in writing to abide by the terms of a confidentiality agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the expiration of the Employment Period, and at any other time upon request of the Company, Executive shall promptly surrender and deliver to the Company all documents (including electronically stored information) and all copies thereof and all other materials of any nature containing or pertaining to all Confidential Information and any other Company Group property (including any Company Group-issued computer, mobile device or other equipment) in Executive's possession, custody or control and Executive shall not retain any such documents or other materials or property of the Company Group. Within five days of such expiration or any such request, Executive shall certify to the Company in writing that all such documents, materials and property have been returned to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**<u>Confidential Information</u>**" means all confidential, competitively valuable, non-public or proprietary information that is conceived, made, developed or acquired by or disclosed to Executive (whether conveyed orally or in writing), individually or in conjunction with others, during the period that Executive is employed or engaged by the Company or any other member of the Company Group (whether during business hours or otherwise and whether on the Company's premises or otherwise) including: (i) technical information of any member of the Company Group, its affiliates, its customers or other third parties, including computer programs, software, databases, data, ideas, know-how, formulae, compositions, processes, discoveries, machines, inventions (whether patentable or not), designs, developmental or experimental work, techniques, improvements, work in process, research or test results, original works of authorship, training programs and procedures, diagrams, charts, business and product development plans, and similar items; (ii) information relating to any member of the Company Group's businesses or properties, products or services (including all such information relating to corporate opportunities, operations, future plans, methods of doing business, business plans, strategies for developing business and market share, research, financial and sales data, pricing terms, evaluations, opinions, interpretations, acquisition prospects, the identity of customers or acquisition targets or their requirements, the identity of key contacts within customers' organizations or within the organization of acquisition prospects, or marketing and merchandising techniques, prospective names and marks); (iii) other valuable, confidential information and trade secrets of any member of the Company Group, its affiliates, its customers or other third parties; and (iv) any other information that is competitively valuable to any member of the Company Group by virtue of not being publicly known. Moreover, all documents, videotapes, written presentations, brochures, drawings, memoranda, notes, records, files, correspondence, manuals, models, specifications, computer programs, e-mail, voice mail, electronic databases, maps, drawings, architectural renditions, models and all other writings or materials of any type including or embodying any of such information, ideas, concepts, improvements, discoveries, inventions and other similar forms of expression are and shall be the sole and exclusive property of the Company or the other applicable member of the Company Group and be subject to the same restrictions on disclosure applicable to all Confidential Information pursuant to this Agreement. For purposes of this Agreement, Confidential Information shall not include any information that (A) is or becomes generally available to the public other than as a result of a disclosure or wrongful act of Executive or any of Executive's agents; (B) was available to Executive on a non-confidential basis before its disclosure by a member of the Company Group; or (C) becomes available to Executive on a non-confidential basis from a source other than a member of the Company Group; *provided*, *however*, that such source is not bound by a confidentiality agreement with, or other obligation with respect to confidentiality to, a member of the Company Group.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, nothing in this Agreement shall prohibit or restrict Executive from lawfully: (i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by, any governmental agency (including the Department of Justice, Department of Labor, National Labor Relations Board, Securities and Exchange Commission, any Inspector General and any other governmental agency, commission, or regulatory authority) regarding a possible violation of any law; (ii) responding to any inquiry or legal process directed to Executive from any governmental agency; (iii) testifying, participating or otherwise assisting in any action or proceeding by any governmental agency relating to a possible violation of law; or (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (2) solely for the purpose of reporting or investigating a suspected violation of law; (B) is made to the individual's attorney in relation to a lawsuit for retaliation against the individual for reporting a suspected violation of law; or (C) is made in a complaint or other document filed in a lawsuit or proceeding, if such filing is made under seal. Nothing in this Agreement requires Executive to obtain prior authorization before engaging in any conduct described in this paragraph, or to notify the Company that Executive has engaged in any such conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Non-Competition; Non-Solicitation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide Executive access to Confidential Information for use only during the Employment Period, and Executive acknowledges and agrees that the Company Group will be entrusting Executive, in Executive's unique and special capacity, with developing the goodwill of the Company Group, and in consideration of the Company providing Executive with access to Confidential Information and as an express incentive for the Company to enter into this Agreement and employ Executive hereunder, Executive has voluntarily agreed to the covenants set forth in this <u>Section</u> <u>10</u>. Executive agrees and acknowledges that the limitations and restrictions set forth herein, including geographical and temporal restrictions on certain competitive activities, are reasonable in all respects, do not interfere with public interests, will not cause Executive undue hardship, and are material and substantial parts of this Agreement intended and necessary to prevent unfair competition and to protect the Company Group's Confidential Information, goodwill and legitimate business interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Prohibited Period, Executive shall not, without the prior written approval of the Board, directly or indirectly, for Executive or on behalf of or in conjunction with any other person or entity of any nature:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) engage or participate within the Market Area in competition with any member of the Company Group in any aspect of the Business, which prohibition shall prevent Executive from directly or indirectly: (A) owning, managing, operating, or being an officer or director of, any business that competes with any member of the Company Group in the Market Area, or is similar to the Business in the Market Area, or (B) joining, becoming an employee or consultant of, or otherwise being affiliated with or providing services to, any person or entity engaged in, or planning to engage in, the Business in the Market Area in competition, or anticipated competition, with any member of the Company Group in any capacity (with respect to this clause (B)) in which Executive's duties or responsibilities involve direct or indirect responsibilities with respect to the Business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) appropriate any Business Opportunity of, or relating to, any member of the Company Group located in the Market Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solicit, canvass, approach, encourage, entice or induce any customer or supplier of any member of the Company Group with whom Executive had contact on behalf of any member of the Company Group or about whom Executive obtained Confidential Information or for whom Executive had direct or indirect responsibilities on behalf of the Company Group to cease or lessen such customer's or supplier's business with any member of the Company Group; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) solicit, canvass, approach, encourage, entice or induce any employee or contractor of any member of the Company Group to terminate his, her or its employment or engagement with any member of the Company Group or hire or engage any employee or contractor of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Because of the difficulty of measuring economic losses to the Company Group as a result of a breach or threatened breach of the covenants set forth in <u>Section</u> <u>9</u> and in this <u>Section</u> <u>10</u>, and because of the immediate and irreparable damage that would be caused to the members of the Company Group for which they would have no other adequate remedy, the Company and each other member of the Company Group shall be entitled to enforce the foregoing covenants, in the event of a breach or threatened breach, by injunctions and restraining orders from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall not be the Company's or any other member of the Company Group's exclusive remedy for a breach but instead shall be in addition to all other rights and remedies available to the Company and each other member of the Company Group at law and equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The covenants in this <u>Section</u> <u>10</u>, and each provision and portion hereof, are severable and separate, and the unenforceability of any specific covenant (or portion thereof) shall not affect the provisions of any other covenant (or portion thereof). Moreover, in the event any arbitrator or court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent which such arbitrator or court deems reasonable, and this Agreement shall thereby be reformed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**<u>Business</u>**" shall mean the business and operations that are the same or similar to those performed by the Company and any other member of the Company Group for which Executive provides services or about which Executive obtains Confidential Information during the Employment Period, which business and operations include logistics services.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**<u>Business Opportunity</u>**" shall mean any commercial, investment or other business opportunity relating to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**<u>Market Area</u>**" shall mean the state of Texas and New Mexico.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**<u>Prohibited Period</u>**" shall mean the period during which Executive is employed by any member of the Company Group and continuing for a period of one year following the date that Executive is no longer employed by any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Non-Disparagement</u>**. During the Employment Period and at all times thereafter, Executive shall not make any statement (either directly or through Executive's representatives or agents) that is intended, or reasonably may be expected, to become public and which disparages, criticizes, or otherwise harms the reputation, business, prospects, or operations of the Company or any other member of the Company Group. The Company shall instruct its senior executives and members of the Board not to make any statement (either directly or indirectly) that is intended, or reasonably may be expected, to become public and which disparages, criticizes, or otherwise harms the reputation of Executive. Notwithstanding the foregoing, nothing in this <u>Section</u> <u>11</u> shall prevent Executive from making any statements required by applicable law or permitted pursuant to <u>Section</u> <u>9(e)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Arbitration</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any dispute, controversy or claim between Executive and any member of the Company Group arising out of or relating to this Agreement or Executive's employment or engagement with any member of the Company Group ("**<u>Disputes</u>**") will be finally settled by arbitration in Houston, Texas in accordance with the then-existing American Arbitration Association ("**<u>AAA</u>**") Employment Arbitration Rules. The arbitration award shall be final and binding on both parties. Any arbitration conducted under this <u>Section</u> <u>12</u> shall be private, and shall be heard by a single arbitrator (the "**<u>Arbitrator</u>**") selected in accordance with the then-applicable rules of the AAA. The Arbitrator shall expeditiously hear and decide all matters concerning the Dispute. Except as expressly provided to the contrary in this Agreement, the Arbitrator shall have the power to (i) gather such materials, information, testimony and evidence as the Arbitrator deems relevant to the Dispute before him or her (and each party will provide such materials, information, testimony and evidence requested by the Arbitrator), and (ii) grant injunctive relief and enforce specific performance. All Disputes shall be arbitrated on an individual basis, and each party hereto hereby foregoes and waives any right to arbitrate any Dispute as a class action or collective action or on a consolidated basis or in a representative capacity on behalf of other persons or entities who are claimed to be similarly situated, or to participate as a class member in such a proceeding. The decision of the Arbitrator shall be reasoned, rendered in writing, be final and binding upon the disputing parties and the parties agree that judgment upon the award may be entered by any court of competent jurisdiction. The party whom the Arbitrator determines is the prevailing party in such arbitration shall receive, in addition to any other award pursuant to such arbitration or associated judgment, reimbursement from the other party of all reasonable legal fees and costs associated with such arbitration and associated judgment. This <u>Section</u> <u>12</u> shall be governed by the Federal Arbitration Act, 9 U.S.C. §1, et seq.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding <u>Section</u> <u>12(a)</u>, either party may make a timely application for, and obtain, judicial emergency or temporary injunctive relief to enforce any of the provisions of <u>Sections</u> 9 through <u>11</u>; *provided*, *however*, that the remainder of any such Dispute (beyond the application for emergency or temporary injunctive relief) shall be subject to arbitration under this <u>Section</u> <u>12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) By entering into this Agreement and entering into the arbitration provisions of this <u>Section</u> <u>12</u>, THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT THEY ARE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVING THEIR RIGHTS TO A JURY TRIAL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this <u>Section</u> <u>12</u> shall prohibit a party to this Agreement from instituting litigation to enforce any arbitration award. Further, nothing in this <u>Section</u> <u>12</u> precludes Executive from filing a charge or complaint with a federal, state or other governmental administrative agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this <u>Section</u> <u>12</u>, to the extent that any dispute, controversy or claim between Executive and the Company arises out of or relates to the LLC Agreement, such dispute, controversy or claim shall be governed by the terms and conditions set forth in the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Defense of Claims</u>**. During the Employment Period and thereafter, upon request from the Company, Executive shall: (a) cooperate with the Company Group in the defense of any claims or actions that may be made by or against any member of the Company Group that relate to Executive's actual or prior areas of responsibility, and (b) provide such information as the Company may reasonably request with respect to Executive's services performed for the Company and the other members of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Section</u> <u>280G</u>**. Notwithstanding any provision of this Agreement or any other plan, agreement, or arrangement to the contrary, if any of the payments or benefits provided or to be provided by the Company or any other member of the Company Group to Executive pursuant to this Agreement or otherwise ("**<u>Covered Payments</u>**") constitute "**<u>parachute payments</u>**" within the meaning of Section 280G of the Internal Revenue Code of 1986 (the "**<u>Code</u>**"), and the applicable Treasury regulations and administrative guidance issued thereunder, and would, but for this <u>Section</u> <u>14</u>, be subject to the excise tax imposed under Section 4999 of the Code, then such Covered Payments shall be either (a) reduced (but not below zero) to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to such excise tax or (b) paid in full to Executive, whichever results in Executive receiving a greater aggregate net after-tax amount of the Covered Payments. If a reduction in Covered Payments is required, such reduction shall be made in a manner that maximizes Executive's economic position and, to the extent consistent therewith, shall be applied first to payments that are not compensation for services, then pro rata among other Covered Payments in a manner consistent with Section 409A (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Withholdings; Deductions</u>**. The Company may withhold and deduct from any benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local and other taxes as may be required pursuant to any law or governmental regulation or ruling and (b) any deductions consented to in writing by Executive.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Title and Headings; Construction</u>**. Titles and headings to Sections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof. Any and all Exhibits or Attachments referred to in this Agreement are, by such reference, incorporated herein and made a part hereof for all purposes. Unless the context requires otherwise, all references to laws, regulations, contracts, documents, agreements and instruments refer to such laws, regulations, contracts, documents, agreements and instruments as they may be amended, restated or otherwise modified from time to time, and references to particular provisions of laws or regulations include a reference to the corresponding provisions of any succeeding law or regulation. All references to "dollars" or "$" in this Agreement refer to United States dollars. The words "herein", "hereof', "hereunder" and other compounds of the word "here" shall refer to the entire Agreement, including all Exhibits attached hereto, and not to any particular provision hereof. Unless the context requires otherwise, the word "or" is not exclusive. Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number includes the plural and conversely. All references to "including" shall be construed as meaning "including without limitation." Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by each of the parties hereto and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Applicable Law; Submission to Jurisdiction</u>**. This Agreement shall in all respects be construed according to the laws of the State of Texas without regard to its conflict of laws principles that would result in the application of the laws of another jurisdiction. With respect to any claim or dispute related to or arising under this Agreement, the parties hereby consent to the arbitration provisions of <u>Section</u> <u>12</u> and recognize and agree that should any resort to a court be necessary and permitted under this Agreement, then they consent to the exclusive jurisdiction, forum and venue of the state and federal courts (as applicable) located in Houston, Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Entire Agreement and Amendment</u>**. This Agreement contains the entire agreement of the parties with respect to the matters covered herein and supersedes all prior and contemporaneous agreements and understandings (including that certain offer letter entered into by the Company and Executive, effective November 3rd, 2025 or any similar agreement), oral or written, between the parties hereto concerning the subject matter hereof; *provided*, *however*, that in the event that Executive is subject to any other restrictive covenants with respect to any member of the Company Group (including with respect to confidentiality or non-disclosure, non-competition, non-solicitation, intellectual property, and non-disparagement), the restrictive covenants contained in this Agreement shall complement and be in addition to, and not supersede or be in lieu of, such other restrictive covenants (which shall remain in full force and effect in accordance with the terms thereof). This Agreement may be amended only by a written instrument executed by both parties hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Waiver of Breach</u>**. Any waiver of this Agreement must be executed by the party to be bound by such waiver. No waiver by either party hereto of a breach of any provision of this Agreement by the other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party of any similar or dissimilar provision or condition at the same or any subsequent time. The failure of either party hereto to take any action by reason of any breach will not deprive such party of the right to take action at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Assignment</u>**. This Agreement is personal to Executive, and neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise transferred by Executive. The Company may assign this Agreement without Executive's consent, including to any member of the Company Group and to any successor to or acquirer of (whether by merger, purchase or otherwise) all or substantially all of the equity, assets or businesses of the Company. Notwithstanding the foregoing, the parties acknowledge and agree that the Company's assignment of this Agreement to EagleRock shall occur automatically upon the IPO Effective Date, without any further action required by any party, and EagleRock shall thereupon assume all of Hydrosource Logistics, LLC's rights, responsibilities, and obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Notices</u>**. Notices provided for in this Agreement shall be in writing and shall be deemed to have been duly received (a) when delivered in person, (b) on the first Business Day after such notice is sent by express overnight courier service, or (c) on the second Business Day following deposit with an internationally-recognized second-day courier service with proof of receipt maintained, in each case, to the following address, as applicable:

If to the Company, addressed to:

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, Texas 77024

Attn: Gregory Pipkin Jr.

If to Executive, addressed to:

Gregory Pipkin Jr.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, including by electronic mail or facsimile, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a copy hereof containing multiple signature pages, each signed by one party, but together signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Deemed Resignations</u>**. Except as otherwise determined by the Board or as otherwise agreed to in writing by Executive and any member of the Company Group prior to the termination of Executive's employment with the Company or any member of the Company Group, any termination of Executive's employment shall constitute, as applicable, an automatic resignation of Executive: (a) as an officer of the Company and each other member of the Company Group; (b) from the Board; and (c) from the board of directors or board of managers (or similar governing body) of any member of the Company Group and from the board of directors or board of managers (or similar governing body) of any corporation, limited liability entity, unlimited liability entity or other entity in which any member of the Company Group holds an equity interest and with respect to which board of directors or board of managers (or similar governing body) Executive serves as such Company Group member's designee or other representative.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Section</u> <u>409A</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision of this Agreement to the contrary, all provisions of this Agreement are intended to comply with Section 409A of the Code, and the applicable Treasury regulations and administrative guidance issued thereunder (collectively, "**<u>Section</u> <u>409A</u>**") or an exemption therefrom and shall be construed and administered in accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of Executive's employment shall only be made if such termination of employment constitutes a "separation from service" under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A), (i) any such expense reimbursement shall be made by the Company no later than the last day of Executive's taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; *provided*, *however*, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period in which the arrangement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any provision in this Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under Section 409A if Executive's receipt of such payment or benefit is not delayed until the earlier of (i) the date of Executive's death or (ii) the date that is six months after the Termination Date (such date, the "**<u>Section</u> <u>409A</u> <u>Payment Date</u>**"), then such payment or benefit shall not be provided to Executive (or Executive's estate, if applicable) until the Section 409A Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or compliant with, Section 409A and in no event shall any member of the Company Group be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Effect of Termination</u>**. The provisions of <u>Sections</u> <u>7</u>, <u>9-15</u> and <u>23-25</u> and those provisions necessary to interpret and enforce them, shall survive any termination of this Agreement and any termination of the employment relationship between Executive and the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Third-Party Beneficiaries</u>**. Each member of the Company Group that is not a signatory to this Agreement shall be a third-party beneficiary of Executive's obligations under <u>Sections</u> <u>8-13</u> and <u>23-25</u> and shall be entitled to enforce such obligations as if a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **<u>Severability</u>**. If an arbitrator or court of competent jurisdiction determines that any provision of this Agreement (or portion thereof) is invalid or unenforceable, then the invalidity or unenforceability of that provision (or portion thereof) shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions (and such provision after removal of the invalid or unenforceable portion thereof) shall remain in full force and effect.

[Remainder of Page Intentionally Blank;

Signature Page Follows]

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Executive and the Company each have caused this Agreement to be executed and effective as of the Effective Date.

---

| | |
|:---|:---|
| **EXECUTIVE** | **EXECUTIVE** |
|  | /s/ Gregory Pipkin Jr. |
|  | Gregory Pipkin Jr. |

---

---

| | |
|:---|:---|
| **HYDROSOURCE LOGISTICS, LLC** | **HYDROSOURCE LOGISTICS, LLC** |
| By: | /s/ Elo Peter Omavuezi |
| Name: | Elo Peter Omavuezi |
| Title: | Chief Financial Officer |

---

---

| | |
|:---|:---|
| **EAGLEROCK LAND, LLC** | **EAGLEROCK LAND, LLC** |
| By: | /s/ Robert W. Hunt Jr. |
| Name: | Robert W. Hunt Jr. |
| Title: | General Counsel |

---

SIGNATURE PAGE TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

------

**EXHIBIT A** 

[*Omitted*.]

EXHIBIT A

## Exhibit 10.13

**Exhibit 10.13** 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE OF INFORMATION THAT EAGLEROCK LAND, LLC TREATS AS PRIVATE OR CONFIDENTIAL.

**AMENDED AND RESTATED EMPLOYMENT AGREEMENT** 

This Amended and Restated Employment Agreement ("**<u>Agreement</u>**") is made and entered into by and between Hydrosource Logistics, LLC, a Texas limited liability company (the "**<u>Company</u>**"), EagleRock Land, LLC, a Texas limited liability company (the "**<u>EagleRock</u>**"), and Neal Shah ("**<u>Executive</u>**") effective as of April 15, 2026 (the "**<u>Effective Date</u>**"). Prior to the IPO Closing Date (defined below), for purposes of this Agreement, EagleRock shall only be deemed a party to this Agreement for purposes of this Assignment contemplated below.

RECITALS

WHEREAS, the Executive and the Company previously entered into that certain Employment Agreement dated as of December 14, 2025 (as amended, the "**<u>Prior Agreement</u>**");

WHEREAS, the Company and the Executive wish to make certain changes to the Prior Agreement, and enter into this Agreement, which shall amend and restate the Prior Agreement in its entirety as of the Effective Date;

WHEREAS, pursuant to Section 19 of the Prior Agreement, the Prior Agreement may be amended at any time by written agreement between the Company and the Executive;

WHEREAS, the Executive is currently employed by the Company, and the parties acknowledge and agree that, effective automatically upon the effectiveness of the Form S-1 registration statement of EagleRock filed in connection with the IPO (as defined below, with the date of such effectiveness, the "**<u>IPO Effective Date</u>**"), the Company shall assign this Agreement to EagleRock, after which EagleRock shall be deemed Executive's employer for all purposes under this Agreement and EagleRock shall assume all rights, responsibilities and obligations of the "**<u>Company</u>**" party, and "**<u>NewCo</u>**", within the Agreement (the "**<u>Assignment</u>**");

WHEREAS, the Assignment shall be deemed a springing assignment that is contingent upon and effective only upon the IPO Effective Date; and

WHEREAS, the Executive has also consented to the Assignment;

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Employment</u>**. During the Employment Period (as defined in <u>Section</u> <u>4</u>), the Company shall employ Executive, and Executive shall serve, as President and Chief Financial Officer of the Company and in such other position or positions as may be assigned from time to time by the board of managers (the "**<u>Board</u>**"). During the Employment Period, Executive's principal place of business shall be Dallas, subject to travel as may be required in the course of Executive's duties, including to the Company's offices in Houston.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Duties and Responsibilities of Executive</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Employment Period, Executive shall devote Executive's best efforts and full business time and attention to the businesses of the Company and its direct and indirect subsidiaries as may exist from time to time (collectively, the Parent and its direct and indirect subsidiaries are referred to as the "**<u>Company Group</u>**") as may be requested by the Board from time to time. Executive's authority, duties and responsibilities shall include those normally incidental to the position(s) identified in <u>Section</u> <u>1</u>, which will include leading and supporting the Company's efforts to become (or to cause one of its affiliates to become) publicly listed though transactions intended to result in the Company (or one of its affiliates) being publicly listed or an initial public offering of the Company or one of its affiliates (such event, a "**<u>Public Listing</u>**"), and related strategic activities. Upon the consummation of a Public Listing, Executive will transition to President and Chief Financial Officer of the newly publicly traded entity ("**<u>NewCo</u>**"). Executive may, without violating this <u>Section</u> <u>2(a)</u>, (i) as a passive investment, own publicly traded securities, in an amount not to exceed 5% of any company, in such form or manner as will not require any services by Executive in the operation of the entities in which such securities are owned; (ii) engage in charitable and civic activities; or (iii) engage in other personal and passive investment activities, in each case, so long as such ownership, interests or activities do not interfere with Executive's ability to fulfill Executive's duties and responsibilities under this Agreement and are not inconsistent with Executive's obligations to any member of the Company Group or competitive with the business of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive owes each member of the Company Group fiduciary duties (including (i) duties of loyalty and disclosure and (ii) such fiduciary duties that an officer of the Company would have if the Company were a corporation organized under the laws of the State of Delaware), and the obligations described in this Agreement are in addition to, and not in lieu of, the obligations Executive owes each member of the Company Group under statutory and common law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Compensation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Signing Bonus</u>. Upon execution of this Agreement, Executive shall receive a signing bonus of $250,000, less applicable taxes and withholdings within 30 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Base Salary</u>. During the Employment Period, the Company shall pay to Executive an annualized base salary of $500,000 (the "**<u>Base Salary</u>**"), less applicable taxes and other withholdings, in consideration for Executive's services under this Agreement, payable in substantially equal installments in conformity with the Company's customary payroll practices for similarly situated employees as may exist from time to time, but no less frequently than monthly. Executive's Base Salary shall be reviewed and may only be increased (not decreased) from time to time in the discretion of the Board or the compensation committee thereof. Upon the consummation of a Public Listing and Executive's transition to President and CFO of NewCo, Executive's compensation will be reviewed and aligned with market practices for similar public companies as determined by NewCo's board of directors (the "**<u>NewCo Board</u>**") or compensation committee thereof (the "**<u>NewCo Compensation Committee</u>**"), with input from an independent compensation consultant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Annual Bonus</u>. For each complete calendar year that Executive is employed hereunder, Executive may be eligible for discretionary bonus compensation in an amount determined by the Board (or a committee thereof) in its sole discretion (the "**<u>Annual</u> <u>Bonus</u>**"). Each Annual Bonus, if any, shall be paid as soon as administratively feasible after the Board (or a committee thereof) has made such determination, but in no event later than March 15 following the end of the applicable year. In determining whether and to what extent Executive is entitled to an Annual Bonus, Executive shall be treated no less favorably than other executive officers of the Company. Notwithstanding anything in this <u>Section</u> <u>3(c)</u> to the contrary, no Annual Bonus, if any, nor any portion thereof, shall be payable for any year unless Executive remains continuously employed by the Company from the Effective Date through the end of the applicable year to which such Annual Bonus relates; it being understood that if Executive remains employed through the end of any calendar year, he shall be entitled to receive a bonus for such year, regardless of whether his employment shall have terminated for any reason other than for Cause prior to the date of payment of the Annual Bonus for such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Public Listing Award</u>. Upon the successful completion of a Public Listing of NewCo or a successor thereto and subject to Executive's continuous employment with the NewCo through the date thereof (the "**<u>Performance Condition</u>**"), NewCo shall grant Executive a one-time bonus of $10,000,000, payable in cash or fully-vested shares of NewCo, subject to Newco's applicable equity incentive plan and a definitive award agreement approved by the NewCo Board or the NewCo Compensation Committee (the "**<u>Public</u> <u>Listing Bonus</u>**"), on terms no less favorable to Executive than that provided under this Agreement. Within thirty (30) days following the Public Listing of Newco, the Company's Chief Executive Officer will provide Executive with a written notice that specifies whether the Public Listing Bonus will be paid in the form of cash, NewCo shares or a combination of cash and NewCo shares, with such decision regarding settlement to apply uniformly to all executive officers that are entitled to a "Public Listing Bonus" within their individual employment agreements. The Public Listing Bonus, whether payable in cash or shares of NewCo, shall be paid or issued to Executive in two tranches, with one-half (<sup>1</sup>⁄<sub>2</sub>) of such amount paid or issued within the first week of the fiscal quarter immediately following the quarter in which the Public Listing occurs and the remaining one-half (<sup>1</sup>⁄<sub>2</sub>) paid or issued within the first week of the fiscal quarter thereafter, but in all events no later than March 15 of such following calendar year. Further provided that settlement may occur at any time prior to such date, as determined by the Company's Chief Executive Officer in its sole discretion. Notwithstanding the time of settlement provided within this paragraph, if applicable, the number of shares issuable pursuant to the Public Listing Bonus shall be determined by dividing the amount payable in shares by the offering price in connection with the Public Listing, with any fractional share rounded down to the nearest whole share. The Public Listing Bonus will be subject to applicable taxes and other withholdings; provided that, to the extent the Public Listing Bonus is payable in shares, Executive shall have the right to elect to have any applicable withholding satisfied through the withholding of shares based on their then fair market value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Public Listing Additional Bonus</u>. Executive will be eligible to receive additional compensation (the "**<u>Public Listing Additional Bonus</u>**") as set forth in Exhibit A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Cash Bonus upon a Company Sale or Asset Sale</u>. If prior to a Public Listing, the Company or any affiliated entity, including the entity intended to become a publicly traded company upon the Public Listing and Lea and Eddy Holdings LLC (as applicable, the "**<u>Selling</u> <u>Company</u>**"), engages in a sale, whether in a single transaction or cumulatively in a series of transactions, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the majority of the equity interests (i.e., whether capital interests, stock of any class or warrants or other convertible interests) in the Selling Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) substantially all of the assets of the Selling Company,

Executive shall be paid a cash bonus with respect to each such transaction (including on a cumulative basis, in connection with that transaction in series of transactions that causes such transactions to cumulatively meet the foregoing conditions) equal to one percent (1%) of the aggregate sales price payable for such equity interests or assets in any such transaction or transactions, net of (1) any indebtedness of the Selling Company or any of its affiliates repaid or otherwise satisfied from such sale proceeds and (2) all other selling or transaction expenses. Any such bonus shall be paid no later than thirty (30) days following the closing of the applicable sale transaction, provided Executive does not voluntarily terminate his employment with the Company (or any successor in interest thereto) prior to the earlier to occur of (i) the closing date of the transaction giving rise to such payment and (ii) December 31, 2027, and shall be subject to applicable taxes and withholdings. In the event that a binding written agreement is entered into on or before December 31, 2027, such transaction closes after December 31, 2027 and such transaction would have resulted in the payment of a bonus under this Section 3(f) if the closing had occurred on or before December 31, 2027, the Company shall pay Executive the bonus specified in this Section 3(f) within 30 days of the closing of such transaction. The bonus in this Section 3(f) shall be credited towards the Severance Payment as set forth in Section 7(f)(ii)(C).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Except as expressly provided in the last sentence of this paragraph, notwithstanding anything to the contrary herein, Sections 3(d), 3(e) and 3(f) shall be automatically canceled and of no further force or effect upon the earlier of: (i) the termination of Executive's employment pursuant to Sections 7(a), 7(d) or 7(e); (ii) the termination of Executive's employment and the payment in full of the Severance Payment pursuant to Section 7(f)(ii)(A) and (iii) the close of business on December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Term of Employment</u>**. The initial term of Executive's employment under this Agreement shall be for the period beginning on the Effective Date and ending on December 31, 2027 (the "**<u>Initial Term</u>**"). Commencing sixty (60) days prior to the expiration of the Initial Term, the Company and Executive shall negotiate in good faith to enter into a new employment agreement, which will govern Executive's employment following the Initial Term. Notwithstanding any other provision of this Agreement, Executive's employment pursuant to this Agreement may be terminated at any time in accordance with <u>Section</u> <u>7</u>. The period from the Effective Date through the expiration of this Agreement or, if sooner, the termination of Executive's employment pursuant to this Agreement, regardless of the time or reason for such termination, shall be referred to herein as the "**<u>Employment Period.</u>**"

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Business Expenses</u>**. Subject to <u>Section</u> <u>25</u> and otherwise applicable tax requirements, the Company shall reimburse Executive for Executive's reasonable out-of-pocket business-related expenses actually incurred in the performance of Executive's duties under this Agreement, so long as Executive timely submits all documentation for such expenses, as required by Company policy in effect from time to time. Any such reimbursement of expenses shall be made by the Company upon or as soon as practicable following receipt of such documentation (but in any event not later than the close of Executive's taxable year following the taxable year in which the expense is incurred by Executive). In no event shall any reimbursement be made to Executive for any expenses incurred after the date of termination of Executive's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Benefits</u>**. During the Employment Period, Executive shall be eligible to participate in the same benefit plans and programs in which other similarly situated Company employees are eligible to participate, subject to the terms and conditions of the applicable plans and programs in effect from time to time. The Company shall not, however, by reason of this <u>Section</u> <u>6</u>, be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such plan or policy, so long as such changes are similarly applicable to similarly situated Company employees generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Termination of Employment</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company's Right to Terminate Executive's Employment for Cause</u>. The Company shall have the right to terminate Executive's employment hereunder at any time for Cause. For purposes of this Agreement, "**<u>Cause</u>**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive's willful failure, other than due to Disability, to substantially perform Executive's duties pursuant to this Agreement or to comply in any material respect with a lawful directive from the Board, as determined by the Board in good faith (sitting without Executive, if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Executive's conviction of, or plea of *nolo contendere* by Executive to, or imposition of unadjudicated probation for, any felony or any crime involving moral turpitude;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Executive's unlawful use or possession of illegal drugs on the Company's premises or while performing Executive's duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Executive's fraud, embezzlement, misappropriation, material misconduct or breach of fiduciary duty with respect to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Executive's material breach of this Agreement or any other written agreement between Executive and one or more members of the Company Group, including Executive's material breach of any representation, warranty or covenant made under any such agreement;

*provided*, *however*, that if Executive's actions or omissions as set forth in this <u>Section</u> <u>7</u> are of such a nature that the Board in good faith determines are curable by Executive, such actions or omissions must remain uncured thirty days after the Board first provided Executive written notice of the obligation to cure such actions or omissions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company's Right to Terminate for Convenience</u>. The Company shall have the right to terminate Executive's employment for convenience at any time and for any reason, or no reason at all, upon written notice to Executive. For the avoidance of doubt, any termination of Executive's employment for convenience or the Company's non-renewal of Executive's employment under this Agreement will be treated as a termination without Cause for purposes of Section 7(f)(ii)(A).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Executive's Right to Terminate for Good Reason</u>. Executive shall have the right to terminate Executive's employment with the Company for Good Reason at any time. For purposes of this Agreement, "**<u>Good Reason</u>**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material diminution in Executive's Base Salary or target bonus opportunity (other than an Across-the-Company Reduction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material diminution in Executive's title, authority, duties or responsibilities with the Company or its subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the relocation of the geographic location of Executive's principal place of employment by more than fifty miles from the location of Executive's principal place of employment as of the Effective Date.

An "**<u>Across-the-Company Reduction</u>**" shall mean a proportionate reduction in salaries of similarly situated senior executives employed by the Company.

Notwithstanding the foregoing provisions of this <u>Section</u> <u>7(c)</u> or any other provision of this Agreement to the contrary, any assertion by Executive of a termination for Good Reason shall not be effective unless all of the following conditions are satisfied: (A) the condition described in <u>Section</u> <u>7(c)(i)</u>, (ii) or <u>(iii)</u> giving rise to Executive's termination of employment must have arisen without Executive's prior written consent; (B) Executive must provide written notice to the Board of the existence of such condition(s) within sixty days after the initial occurrence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected for thirty days following the Board's receipt of such written notice; and (D) the date of Executive's termination of employment must occur within thirty days following the expiration of the Board's cure period in (C) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death or Disability</u>. Upon the death of Executive, or upon written notice from the Company following Executive's Disability, Executive's employment with the Company shall automatically (and without any further action by any person or entity) terminate with no further obligation under this Agreement of either party hereunder, other than any benefits provided in accordance with the terms of any applicable employee benefit plan. For purposes of this Agreement, a "**<u>Disability</u>**" shall exist if the Board determines in good faith that Executive is unable to perform the essential functions of Executive's position (after accounting for reasonable accommodation, if applicable and required by applicable law), due to physical or mental impairment that continues, or can reasonably be expected to continue, for a period in excess of one hundred-twenty (120) consecutive days or one hundred-eighty (180) days, whether or not consecutive (or for any longer period as may be required by applicable law), in any twelve-month period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Executive's Right to Terminate for Convenience</u>. In addition to Executive's right to terminate Executive's employment for Good Reason, Executive shall have the right to terminate Executive's employment with the Company for convenience at any time and for any other reason, or no reason at all, upon thirty days' advance written notice to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Effect of Termination*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Termination by the Company for Cause; Resignation by Executive without Good Reason; Termination Due to Death or Disability*. If Executive's employment hereunder is terminated by the Company for Cause (including a resignation by Executive at a time when grounds for Cause exist), Executive resigns without Good Reason, or Executive's employment terminates due to Executive's death or Disability, then Executive will be entitled to receive (A) all accrued but unpaid Base Salary through the date of termination of Executive's employment, (B) any unpaid or unreimbursed expenses incurred in accordance with applicable Company policy and (C) any benefits under the Company's employee benefit plans in accordance with the terms contained therein (collectively, the "**<u>Accrued Obligations</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Termination by the Company without Cause; Resignation by Executive for Good Reason and Termination at the Expiration of the Contract Term*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If Executive's employment hereunder is terminated by the Company without Cause pursuant to <u>Section</u> <u>7(b)</u> (including the Company's non-renewal of Executive's employment under this Agreement) at any time, by Executive for Good Reason pursuant to <u>Section</u> <u>7(c)</u> or at the expiration of the term at the close of business on December 31, 2027, then (1) Executive will be entitled to receive the Accrued Obligations and (2) so long as (and only if) Executive: (x) executes on or before the Release Expiration Date (as defined below), and does not revoke within any time provided by the Company to do so (such date on which the Release becomes effective, the "**<u>Release Effective Date</u>**"), a release of all claims in a form acceptable to the Company (the "**<u>Release</u>**"), which Release shall release each member of the Company Group and their respective affiliates, and the foregoing entities' respective shareholders, members, partners, officers, managers, directors, predecessors, successors, fiduciaries, employees, representatives, agents and benefit plans (and fiduciaries of such plans) from any and all claims, including any and all causes of action arising out of Executive's employment, engagement, or affiliation with the Company and any other member of the Company Group or the termination of such employment, engagement or affiliation, but excluding all claims to severance payments (including, if applicable, the Late Closing Sale Bonus) Executive may have under this <u>Section</u> <u>7</u>; and (y) is not in breach of his obligations under <u>Sections</u> <u>9</u>, <u>10</u> and <u>11</u>, the Company shall pay Executive $5,000,000 (the "**<u>Cash Payable Portion</u>**") in cash and $10,000,000 (the "**<u>Share Payable Portion</u>**") in fully vested shares of Parent (such total severance payment being referred to as the "**<u>Severance Payment</u>**"), with the value of the shares deliverable to be determined as of the end of the calendar month ended on or immediately preceding the Termination Date based on the Company's then enterprise value reduced by all outstanding debts of the Parent and its subsidiaries, as determined in good faith by the Company and approved by the Parent's board of managers; provided however, that such shares issued shall not exceed 2% of

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enterprise value of Lea & Eddy Holdings, LLC (the "**<u>Share Cap</u>**"). The Company shall provide Executive in writing a description in reasonable detail of the manner in which such value was determined. The Severance Payment shall be paid or delivered, whether in cash or shares, not later than the earlier of (i) six months following the Termination Date and (ii) March 15 of the calendar year following the Termination Date. Notwithstanding the foregoing provisions of this Section 7(f)(ii)(A), if the Share Cap does not apply, the Company may, in its sole discretion by written notice to Executive delivered within 30 days following the date of Executive's termination date elect to settle the obligation to deliver all or a specified portion of the Share Payable Portion in cash in an amount corresponding to the dollar value of the applicable portion of the Share Payable Portion being settled in cash. If the Share Cap does apply, Executive's consent shall be required to cash out any portion of the Share Payable Portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In the event of a Public Listing and the payment of the Public Listing Bonus pursuant to Section 3(d) (and, if applicable, the Public Listing Additional Bonus pursuant to Section 3(e)), Executive shall not be entitled to the Severance Payment and the Severance Payment pursuant to Section 7(f)(ii)(A) shall be automatically cancelled and of no further force or effect; provided, that upon any termination of Executive's employment for any reason Executive shall remain entitled to any Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) In the event of a Company Sale or Asset Sale pursuant to Section 3(f) which either (i) occurs on or before December 31, 2027 or (ii) a binding written agreement is entered into on or before December 31, 2027, such transaction closes after December 31, 2027 and such transaction would have resulted in the payment of a bonus under Section 3(f) if the closing had occurred on or before December 31, 2027, the amount of the Severance Payment due and payable under Section 7(f)(ii)(A) shall be reduced, but not below zero, by any amounts actually paid to Executive pursuant to Section 3(f) based on the occurrence of any event described in such Section. Any such reduction in the Severance Payment shall be applied ratably to the Cash Payable Portion and the Share Payable Portion of the Severance Payment. In addition, in the event of a termination of Executive's employment following a Company Sale or Asset Sale, Executive shall in all events be entitled to the Accrued Obligations and, if such termination is effected by the Company pursuant to Section 7(b) or by Executive pursuant to Section 7(c), to receive an additional severance benefit determined in the same manner as severance benefits payable to the Company's executive officers under the Company's generally applicable practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) If the Release is not executed and returned to the Company on or before the Release Expiration Date, or having delivered the Release, Executive revokes such Release during the required revocation period, then Executive shall not be entitled to any portion of the Severance Payment. As used herein, the "**<u>Release Expiration Date</u>**" is that date that is twenty-one days following the date upon which the Company delivers the Release to Executive (which shall occur no later than seven days after the date on which Executive's

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employment terminates (the "**<u>Termination Date</u>**") or, in the event that such termination of employment is "in connection with an exit incentive or other employment termination program" (as such phrase is defined in the Age Discrimination in Employment Act of 1967) and Executive is age 40 or over as of the Termination Date, the date that is forty-five days following such delivery date (such twenty-one or forty-five day period, as applicable, the "**<u>Review Period</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The Severance Payment will be subject to applicable taxes and other withholdings; provided that, to the extent any portion of the Severance Payment is payable in shares, Executive shall have the right to elect to have any applicable withholding satisfied through the withholding of shares based on their fair market value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Disclosures</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive hereby represents and warrants that as of the Effective Date, there exist (i) no actual or potential Conflicts of Interest and (ii) no current or pending lawsuits, claims, charges or arbitrations filed against or involving Executive or any trust or vehicle owned or controlled by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive hereby represents and warrants that, during the course of discussions and negotiations regarding Executive's prospective employment with the Company, Executive has not disclosed, transmitted, furnished, or otherwise made available any Confidential Information (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly (and in any event, within three Business Days) upon becoming aware of (i) any actual or potential Conflict of Interest or (ii) any lawsuit, claim, charge or arbitration filed against or involving Executive or any trust or vehicle owned or controlled by Executive, in each case, Executive shall disclose such actual or potential Conflict of Interest or such lawsuit, claim, charge or arbitration to the Board. "**<u>Business Day</u>**" means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York or Dallas, Texas are authorized or required by law to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A "**<u>Conflict of Interest</u>**" shall exist when Executive engages in, or plans to engage in, any activities, associations, or interests that conflict in any material way with Executive's duties, responsibilities, authorities, or obligations for and to any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Confidentiality</u>**. In the course of Executive's employment with the Company and the performance of Executive's duties on behalf of the Company Group hereunder, Executive will be provided with, and will have access to, Confidential Information (as defined below). In consideration of Executive's receipt and access to such Confidential Information, and as a condition of Executive's employment hereunder, Executive shall comply with this <u>Section</u> <u>9</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Both during the Employment Period and thereafter, except as expressly permitted by this Agreement or by directive of the Board, Executive shall not disclose any Confidential Information to any person or entity and shall not use any Confidential Information except for the benefit of the Company Group. Executive acknowledges and agrees that Executive would inevitably use and disclose Confidential Information in violation of this <u>Section</u> <u>9</u> if Executive were to violate any of the covenants set forth in <u>Section</u> <u>10</u>. Executive shall follow all Company Group policies and protocols regarding the security of all documents and other materials containing Confidential Information (regardless of the medium on which Confidential Information is stored). Except to the extent reasonably required for the performance of Executive's duties on behalf of the Company Group, Executive shall not remove from facilities of any member of the Company Group any equipment, drawings, notes, reports, manuals, invention records, computer software, customer information, or other data or materials that relate in any way to the Confidential Information, whether paper or electronic and whether produced by Executive or obtained by the Company Group. The covenants of this <u>Section</u> <u>9(a)</u> shall apply to all Confidential Information, whether now known or later to become known to Executive during the period that Executive is employed by or affiliated with the Company or any other member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any provision of <u>Section</u> <u>9(a)</u> to the contrary, Executive may make the following disclosures and uses of Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) disclosures to other employees of a member of the Company Group who have a need to know Confidential Information in connection with the businesses of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) disclosures and uses that are approved in writing by the Board or are made to business associates of the Company Group in the good faith performance of Executive's duties for the Company, including, but not limited to, disclosure made in furtherance of the objective of achieving the Public Listing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) disclosures to a person or entity that has (A) been retained by a member of the Company Group to provide services to one or more members of the Company Group and (B) agreed in writing to abide by the terms of a confidentiality agreement or is otherwise legally or ethically bound to maintain the confidentiality of information disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the expiration of the Employment Period, and at any other time upon request of the Company, Executive shall promptly surrender and deliver to the Company all documents (including electronically stored information) and all copies thereof and all other materials of any nature containing or pertaining to all Confidential Information and any other Company Group property (including any Company Group-issued computer, mobile device or other equipment), other than documents related his rights to compensation or benefits (including, without limitation, this Agreement) in Executive's possession, custody or control and Executive shall not retain any such documents or other materials or property of the Company Group. Within five days of such expiration or any such request, Executive shall certify to the Company in writing that all such documents, materials and property have been returned to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**<u>Confidential Information</u>**" means all confidential, competitively valuable, non-public or proprietary information that is conceived, made, developed or acquired by or disclosed to Executive (whether conveyed orally or in writing), individually or in conjunction with others, during the period that Executive is employed or engaged by the Company or any other member of the Company Group (whether during business hours or otherwise and whether on the

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Company's premises or otherwise) including: (i) technical information of any member of the Company Group, its affiliates, its customers or other third parties, including computer programs, software, databases, data, ideas, know-how, formulae, compositions, processes, discoveries, machines, inventions (whether patentable or not), designs, developmental or experimental work, techniques, improvements, work in process, research or test results, original works of authorship, training programs and procedures, diagrams, charts, business and product development plans, and similar items; (ii) information relating to any member of the Company Group's businesses or properties, products or services (including all such information relating to corporate opportunities, operations, future plans, methods of doing business, business plans, strategies for developing business and market share, research, financial and sales data, pricing terms, evaluations, opinions, interpretations, acquisition prospects, the identity of customers or acquisition targets or their requirements, the identity of key contacts within customers' organizations or within the organization of acquisition prospects, or marketing and merchandising techniques, prospective names and marks); (iii) other valuable, confidential information and trade secrets of any member of the Company Group, its affiliates, its customers or other third parties; and (iv) any other information that is competitively valuable to any member of the Company Group by virtue of not being publicly known. Moreover, all documents, videotapes, written presentations, brochures, drawings, memoranda, notes, records, files, correspondence, manuals, models, specifications, computer programs, e-mail, voice mail, electronic databases, maps, drawings, architectural renditions, models and all other writings or materials of any type including or embodying any of such information, ideas, concepts, improvements, discoveries, inventions and other similar forms of expression are and shall be the sole and exclusive property of the Company or the other applicable member of the Company Group and be subject to the same restrictions on disclosure applicable to all Confidential Information pursuant to this Agreement. For purposes of this Agreement, Confidential Information shall not include any information that (A) is or becomes generally available to the public other than as a result of a disclosure or wrongful act of Executive or any of Executive's agents; (B) was available to Executive on a non-confidential basis before its disclosure by a member of the Company Group; or (C) becomes available to Executive on a non-confidential basis from a source other than a member of the Company Group; *provided*, *however*, that such source is not bound by a confidentiality agreement with, or other obligation with respect to confidentiality to, a member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, nothing in this Agreement shall prohibit or restrict Executive from lawfully: (i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by, any governmental agency (including the Department of Justice, Department of Labor, National Labor Relations Board, Securities and Exchange Commission, any Inspector General and any other governmental agency, commission, or regulatory authority) regarding a possible violation of any law; (ii) responding to any inquiry or legal process directed to Executive from any governmental agency; (iii) testifying, participating or otherwise assisting in any action or proceeding by any governmental agency relating to a possible violation of law; or (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (2) solely for the purpose of reporting or investigating a suspected violation of law; (B) is made to the individual's attorney in relation to a

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lawsuit for retaliation against the individual for reporting a suspected violation of law; or (C) is made in a complaint or other document filed in a lawsuit or proceeding, if such filing is made under seal. Nothing in this Agreement requires Executive to obtain prior authorization before engaging in any conduct described in this paragraph, or to notify the Company that Executive has engaged in any such conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Non-Competition; Non-Solicitation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide Executive access to Confidential Information for use only during the Employment Period, and Executive acknowledges and agrees that the Company Group will be entrusting Executive, in Executive's unique and special capacity, with developing the goodwill of the Company Group, and in consideration of the Company providing Executive with access to Confidential Information and as an express incentive for the Company to enter into this Agreement and employ Executive hereunder, Executive has voluntarily agreed to the covenants set forth in this <u>Section</u> <u>10</u>. Executive agrees and acknowledges that the limitations and restrictions set forth herein, including geographical and temporal restrictions on certain competitive activities, are reasonable in all respects, do not interfere with public interests, will not cause Executive undue hardship, and are material and substantial parts of this Agreement intended and necessary to prevent unfair competition and to protect the Company Group's Confidential Information, goodwill and legitimate business interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Prohibited Period, Executive shall not, without the prior written approval of the Board, directly or indirectly, for Executive or on behalf of or in conjunction with any other person or entity of any nature:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) engage or participate within the Market Area in competition with any member of the Company Group in any aspect of the Business, which prohibition shall prevent Executive from directly or indirectly: (A) owning, managing, operating, or being an officer or director of, any business that competes with any member of the Company Group in the Market Area, or is similar to the Business in the Market Area, or (B) joining, becoming an employee or consultant of, or otherwise being affiliated with or providing services to, any person or entity engaged in, or planning to engage in, the Business in the Market Area in competition, or anticipated competition, with any member of the Company Group in any capacity (with respect to this clause (B)) in which Executive's duties or responsibilities involve direct or indirect responsibilities with respect to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) appropriate any Business Opportunity of, or relating to, any member of the Company Group located in the Market Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solicit, canvass, approach, encourage, entice or induce any customer or supplier of any member of the Company Group with whom Executive had contact on behalf of any member of the Company Group or about whom Executive obtained Confidential Information or for whom Executive had direct or indirect responsibilities on behalf of the Company Group to cease or lessen such customer's or supplier's business with any member of the Company Group; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) solicit, canvass, approach, encourage, entice or induce any employee or contractor of any member of the Company Group to terminate his, her or its employment or engagement with any member of the Company Group or hire or engage any employee or contractor of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Because of the difficulty of measuring economic losses to the Company Group as a result of a breach or threatened breach of the covenants set forth in <u>Section</u> <u>9</u> and in this <u>Section</u> <u>10</u>, and because of the immediate and irreparable damage that would be caused to the members of the Company Group for which they would have no other adequate remedy, the Company and each other member of the Company Group shall be entitled to enforce the foregoing covenants, in the event of a breach or threatened breach, by injunctions and restraining orders from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall not be the Company's or any other member of the Company Group's exclusive remedy for a breach but instead shall be in addition to all other rights and remedies available to the Company and each other member of the Company Group at law and equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The covenants in this <u>Section</u> <u>10</u>, and each provision and portion hereof, are severable and separate, and the unenforceability of any specific covenant (or portion thereof) shall not affect the provisions of any other covenant (or portion thereof). Moreover, in the event any arbitrator or court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent which such arbitrator or court deems reasonable, and this Agreement shall thereby be reformed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**<u>Business</u>**" shall mean the business and operations that are the same or similar to those performed by the Company and any other member of the Company Group for which Executive provides services or about which Executive obtains Confidential Information during the Employment Period, which business and operations include logistics services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**<u>Business Opportunity</u>**" shall mean any commercial, investment or other business opportunity relating to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**<u>Market Area</u>**" shall mean the state of Texas and New Mexico.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**<u>Prohibited Period</u>**" shall mean the period during which Executive is employed by any member of the Company Group and continuing for a period of one year following the date that Executive is no longer employed by any member of the Company Group.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Non-Disparagement</u>**. During the Employment Period and at all times thereafter, Executive shall not make any statement (either directly or through Executive's representatives or agents) that is intended, or reasonably may be expected, to become public and which disparages, criticizes, or otherwise harms the reputation, business, prospects, or operations of the Company or any other member of the Company Group. The Company shall instruct its senior executives and members of the Board not to make any statement (either directly or indirectly) that is intended, or reasonably may be expected, to become public and which disparages, criticizes, or otherwise harms the reputation of Executive. Notwithstanding the foregoing, nothing in this <u>Section</u> <u>11</u> shall prevent Executive from making any statements required by applicable law or permitted pursuant to <u>Section</u> <u>9(e)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Arbitration</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any dispute, controversy or claim between Executive and any member of the Company Group arising out of or relating to this Agreement or Executive's employment or engagement with any member of the Company Group ("**<u>Disputes</u>**") will be finally settled by arbitration in Houston, Texas in accordance with the then-existing American Arbitration Association ("**<u>AAA</u>**") Employment Arbitration Rules. The arbitration award shall be final and binding on both parties. Any arbitration conducted under this <u>Section</u> <u>12</u> shall be private, and shall be heard by a single arbitrator (the "**<u>Arbitrator</u>**") selected in accordance with the then-applicable rules of the AAA. The Arbitrator shall expeditiously hear and decide all matters concerning the Dispute. Except as expressly provided to the contrary in this Agreement, the Arbitrator shall have the power to (i) gather such materials, information, testimony and evidence as the Arbitrator deems relevant to the Dispute before him or her (and each party will provide such materials, information, testimony and evidence requested by the Arbitrator), and (ii) grant injunctive relief and enforce specific performance. All Disputes shall be arbitrated on an individual basis, and each party hereto hereby foregoes and waives any right to arbitrate any Dispute as a class action or collective action or on a consolidated basis or in a representative capacity on behalf of other persons or entities who are claimed to be similarly situated, or to participate as a class member in such a proceeding. The decision of the Arbitrator shall be reasoned, rendered in writing, be final and binding upon the disputing parties and the parties agree that judgment upon the award may be entered by any court of competent jurisdiction. The party whom the Arbitrator determines is the prevailing party in such arbitration shall receive, in addition to any other award pursuant to such arbitration or associated judgment, reimbursement from the other party of all reasonable legal fees and costs associated with such arbitration and associated judgment. This <u>Section</u> <u>12</u> shall be governed by the Federal Arbitration Act, 9 U.S.C. §1, et seq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding <u>Section</u> <u>12(a)</u>, either party may make a timely application for, and obtain, judicial emergency or temporary injunctive relief to enforce any of the provisions of <u>Sections</u> <u>9</u> through <u>11</u>; *provided, however*, that the remainder of any such Dispute (beyond the application for emergency or temporary injunctive relief) shall be subject to arbitration under this <u>Section</u> <u>12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) By entering into this Agreement and entering into the arbitration provisions of this <u>Section</u> <u>12</u>, THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT THEY ARE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVING THEIR RIGHTS TO A JURY TRIAL.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this <u>Section</u> <u>12</u> shall prohibit a party to this Agreement from instituting litigation to enforce any arbitration award. Further, nothing in this <u>Section</u> <u>12</u> precludes Executive from filing a charge or complaint with a federal, state or other governmental administrative agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this <u>Section</u> <u>12</u>, to the extent that any dispute, controversy or claim between Executive and the Company arises out of or relates to the LLC Agreement, such dispute, controversy or claim shall be governed by the terms and conditions set forth in the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Defense of Claims</u>**. During the Employment Period and thereafter, upon request from the Company, Executive shall: (a) cooperate with the Company Group in the defense of any claims or actions that may be made by or against any member of the Company Group that relate to Executive's actual or prior areas of responsibility, and (b) provide such information as the Company may reasonably request with respect to Executive's services performed for the Company and the other members of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Section</u> <u>280G</u>**. Notwithstanding any provision of this Agreement or any other plan, agreement, or arrangement to the contrary, if any of the payments or benefits provided or to be provided by the Company or any other member of the Company Group to Executive pursuant to this Agreement or otherwise ("**<u>Covered Payments</u>**") constitute "**<u>parachute payments</u>**" within the meaning of Section 280G of the Internal Revenue Code of 1986 (the "**<u>Code</u>**"), and the applicable Treasury regulations and administrative guidance issued thereunder, and would, but for this <u>Section</u> <u>14</u>, be subject to the excise tax imposed under Section 4999 of the Code, then such Covered Payments shall be either (a) reduced (but not below zero) to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to such excise tax or (b) paid in full to Executive, whichever results in Executive receiving a greater aggregate net after-tax amount of the Covered Payments. If a reduction in Covered Payments is required, such reduction shall be made in a manner that maximizes Executive's economic position and, to the extent consistent therewith, shall be applied first to payments that are not compensation for services, then pro rata among other Covered Payments in a manner consistent with Section 409A (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Withholdings; Deductions</u>**. The Company may withhold and deduct from any benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local and other taxes as may be required pursuant to any law or governmental regulation or ruling and (b) any deductions consented to in writing by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Title and Headings; Construction</u>**. Titles and headings to Sections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof. Any and all Exhibits or Attachments referred to in this Agreement are, by such reference, incorporated herein and made a part hereof for all purposes. Unless the context requires otherwise, all references to laws, regulations, contracts, documents, agreements and instruments refer to such laws, regulations, contracts, documents, agreements and instruments as they may be amended, restated or otherwise modified from time to time, and references to particular provisions of laws or regulations include a reference to the corresponding provisions of any succeeding law or regulation. All references to "dollars" or "$" in this Agreement refer to United States dollars. The words "herein", "hereof", "hereunder" and other compounds of the word "here" shall refer to the entire Agreement, including all Exhibits attached hereto, and not to any particular provision hereof.

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Unless the context requires otherwise, the word "or" is not exclusive. Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number includes the plural and conversely. All references to "including" shall be construed as meaning "including without limitation." Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by each of the parties hereto and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Applicable Law; Submission to Jurisdiction</u>**. This Agreement shall in all respects be construed according to the laws of the State of Texas without regard to its conflict of laws principles that would result in the application of the laws of another jurisdiction. With respect to any claim or dispute related to or arising under this Agreement, the parties hereby consent to the arbitration provisions of <u>Section</u> <u>12</u> and recognize and agree that should any resort to a court be necessary and permitted under this Agreement, then they consent to the exclusive jurisdiction, forum and venue of the state and federal courts (as applicable) located in Houston, Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Executive's Legal Fees</u>**. Promptly (and no event later than 45 days) following delivery of a written invoice therefor, the Company shall pay Executive's legal fees incurred in connection with the negotiation and execution of this Agreement, subject to a cap of $50,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Entire Agreement and Amendment</u>**. This Agreement contains the entire agreement of the parties with respect to the matters covered herein and supersedes all prior and contemporaneous agreements and understandings (including that certain offer letter entered into by the Company and Executive, effective November __, 2025 or any similar agreement), oral or written, between the parties hereto concerning the subject matter hereof; *provided*, *however*, that in the event that Executive is subject to any other restrictive covenants with respect to any member of the Company Group (including with respect to confidentiality or non-disclosure, non-competition, non-solicitation, intellectual property, and non-disparagement), the restrictive covenants contained in this Agreement shall complement and be in addition to, and not supersede or be in lieu of, such other restrictive covenants (which shall remain in full force and effect in accordance with the terms thereof). This Agreement may be amended only by a written instrument executed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Waiver of Breach</u>**. Any waiver of this Agreement must be executed by the party to be bound by such waiver. No waiver by either party hereto of a breach of any provision of this Agreement by the other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party of any similar or dissimilar provision or condition at the same or any subsequent time. The failure of either party hereto to take any action by reason of any breach will not deprive such party of the right to take action at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Assignment</u>**. This Agreement is personal to Executive, and neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise transferred by Executive. The Company may assign this Agreement without Executive's consent, including to any member of the Company Group and to any successor to or acquirer of (whether by merger, purchase or otherwise) all or substantially all of the equity, assets or businesses of the Company. Notwithstanding the foregoing, the parties acknowledge and agree that the Company's assignment of this Agreement to EagleRock shall occur automatically upon the IPO Effective Date, without any further action required by any party, and EagleRock shall thereupon assume all of Hydrosource Logistics, LLC's rights, responsibilities, and obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Notices</u>**. Notices provided for in this Agreement shall be in writing and shall be deemed to have been duly received (a) when delivered in person, (b) on the first Business Day after such notice is sent by express overnight courier service, or (c) on the second Business Day following deposit with an internationally-recognized second-day courier service with proof of receipt maintained, in each case, to the following address, as applicable:

If to the Company, addressed to:

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, Texas 77024

Attn: Gregory Pipkin Jr.

If to Executive, addressed to:

Neal Shah

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, including by electronic mail or facsimile, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a copy hereof containing multiple signature pages, each signed by one party, but together signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Deemed Resignations</u>**. Except as otherwise determined by the Board or as otherwise agreed to in writing by Executive and any member of the Company Group prior to the termination of Executive's employment with the Company or any member of the Company Group, any termination of Executive's employment shall constitute, as applicable, an automatic resignation of Executive: (a) as an officer of the Company and each other member of the Company Group; (b) from the Board; and (c) from the board of directors or board of managers (or similar governing body) of any member of the Company Group and from the board of directors or board of managers (or similar governing body) of any corporation, limited liability entity, unlimited liability entity or other entity in which any member of the Company Group holds an equity interest and with respect to which board of directors or board of managers (or similar governing body) Executive serves as such Company Group member's designee or other representative.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Section</u> <u>409A</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision of this Agreement to the contrary, all provisions of this Agreement are intended to comply with Section 409A of the Code, and the applicable Treasury regulations and administrative guidance issued thereunder (collectively, "**<u>Section</u> <u>409A</u>**") or an exemption therefrom and shall be construed and administered in accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of Executive's employment shall only be made if such termination of employment constitutes a "separation from service" under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A), (i) any such expense reimbursement shall be made by the Company no later than the last day of Executive's taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; *provided*, *however*, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period in which the arrangement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any provision in this Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under Section 409A if Executive's receipt of such payment or benefit is not delayed until the earlier of (i) the date of Executive's death or (ii) the date that is six months after the Termination Date (such date, the "**<u>Section</u> <u>409A Payment Date</u>**"), then such payment or benefit shall not be provided to Executive (or Executive's estate, if applicable) until the Section 409A Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or compliant with, Section 409A and in no event shall any member of the Company Group be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Effect of Termination</u>**. The provisions of <u>Sections</u> <u>7</u>, <u>9-15</u> and <u>24-25</u> and those provisions necessary to interpret and enforce them, shall survive any termination of this Agreement and any termination of the employment relationship between Executive and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **<u>Third-Party Beneficiaries</u>**. Each member of the Company Group that is not a signatory to this Agreement shall be a third-party beneficiary of Executive's obligations under <u>Sections</u> <u>8-13</u> and <u>24-25</u> and shall be entitled to enforce such obligations as if a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. **<u>Severability</u>**. If an arbitrator or court of competent jurisdiction determines that any provision of this Agreement (or portion thereof) is invalid or unenforceable, then the invalidity or unenforceability of that provision (or portion thereof) shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions (and such provision after removal of the invalid or unenforceable portion thereof) shall remain in full force and effect.

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[Remainder of Page Intentionally Blank;

Signature Page Follows]

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Executive and the Company each have caused this Agreement to be executed and effective as of the Effective Date.

---

| | |
|:---|:---|
| **EXECUTIVE** | **EXECUTIVE** |
|  | /s/ Neal Shah |
|  | Neal Shah |

---

---

| | |
|:---|:---|
| **HYDROSOURCE LOGISTICS, LLC** | **HYDROSOURCE LOGISTICS, LLC** |
| By: | /s/ Elo Peter Omavuezi |
| Name: | Elo Peter Omavuezi |
| Title: | Chief Financial Officer |

---

---

| | |
|:---|:---|
| **EAGLEROCK LAND, LLC** | **EAGLEROCK LAND, LLC** |
| By: | /s/ Greg Pipkin Jr. |
| Name: | Greg Pipkin Jr. |
| Title: | Chief Executive Officer |

---

SIGNATURE PAGE TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

------

**EXHIBIT A** 

[*Omitted*.]

EXHIBIT A

## Exhibit 10.14

**Exhibit 10.14** 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE OF INFORMATION THAT EAGLEROCK LAND, LLC TREATS AS PRIVATE OR CONFIDENTIAL.

**AMENDED AND RESTATED EMPLOYMENT AGREEMENT** 

This Amended and Restated Employment Agreement (this "**<u>Agreement</u>**") is made and entered into by and between Lea & Eddy Holdings, LLC, a Texas limited liability company (the "**<u>Company</u>**"), EagleRock Land, LLC, a Texas limited liability company (together with its direct and indirect subsidiaries and Affiliates (and including any other entity formed for the purposes of effecting an IPO (as defined below), as applicable,**<u>EagleRock</u>**"), and Robert W. Hunt Jr. ("**<u>Executive</u>**"), effective as of April 15, 2026 (the "**Effective Date**"). Prior to the IPO Effective Date (defined below), for purposes of this Agreement, EagleRock shall only be deemed a party to this Agreement for purposes of the Assignment contemplated below.

RECITALS

WHEREAS, the Executive and the Company previously entered into that certain Employment Agreement dated as of January 8, 2026 (as amended, the "**<u>Prior Agreement</u>**");

WHEREAS, the Company and the Executive wish to make certain changes to the Prior Agreement, and enter into this Agreement, which shall amend and restate the Prior Agreement in its entirety as of the Effective Date;

WHEREAS, pursuant to Section 15 of the Prior Agreement, the Prior Agreement may be amended at any time by written agreement between the Company and the Executive;

WHEREAS, the Executive is currently employed by the Company, and the parties acknowledge and agree that, effective automatically upon the effectiveness of the Form S-1 registration statement of EagleRock filed in connection with the IPO (as defined below, with the date of such effectiveness, the "**<u>IPO Effective Date</u>**"), the Company shall assign this Agreement to EagleRock, after which EagleRock shall be deemed Executive's employer for all purposes under this Agreement and EagleRock shall assume all rights, responsibilities and obligations of the "**<u>Company</u>**" party within the Agreement (the "**<u>Assignment</u>**");

WHEREAS, the Assignment shall be deemed a springing assignment that is contingent upon and effective only upon the IPO Effective Date; and

WHEREAS, the Executive has also consented to the Assignment.

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.  **<u>Employment; Title; Location</u>** . During the Employment Period (as defined in Section 4), the
Company shall employ Executive, and Executive shall serve, as General Counsel of the Company. Executive's principal place of employment shall be the Company's offices in Houston, Texas, subject to customary business travel as may be
required by Executive's duties from time to time.

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2.  **<u>Duties and Responsibilities</u>** . During the Employment Period, Executive shall devote
Executive's best efforts and full business time and attention to the businesses of the Company and its direct and indirect subsidiaries and Affiliates, as may exist from time to time (collectively, the "**Company Group** "), and
shall perform such duties and responsibilities as are customary for a General Counsel of a company of comparable size and complexity, including leading and supporting the Company's general legal activities to become (or to cause EagleRock to
become) publicly listed through transactions intended to result in the Company (or EagleRock) being publicly listed or an initial public offering of the Company or EagleRock (such event, an "**IPO**") and any other capital markets
initiatives. Upon the consummation of the IPO, Executive will transition to General Counsel of EagleRock. Executive acknowledges that no outcome of any capital markets transaction, including an IPO, is guaranteed. Executive shall comply with all
lawful directives of the Company's board of managers or comparable governing body (the "**Board**") and all applicable written policies of the Company Group, in each case as may be in effect from time to time. Executive owes
fiduciary duties (including duties of loyalty and disclosure) to each member of the Company Group. Notwithstanding the foregoing, Executive may, without violating this Agreement, (a) engage in charitable and civic activities, (b) as a
passive investment, own publicly-traded securities in an amount not exceeding 5% of any class of securities of any one issuer, and (c) engage in other passive personal investment activities, in each case so long as such activities do not
interfere with Executive's duties hereunder, do not create a conflict of interest, and are not competitive with the business of the Company Group.

3.  **<u>Compensation and Benefits</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. During the Employment Period, the Company shall pay Executive an annualized base salary of $400,000 (the "Base Salary"), payable in accordance with the Company's normal payroll practices and subject to applicable tax withholdings and deductions. The Base Salary may be reviewed and adjusted from time to time in the discretion of the Board or a committee thereof, but shall not be decreased except in connection with an across-the-board reduction affecting similarly situated executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Equity Award</u>. Upon the successful completion of an IPO of EagleRock or a successor thereto and subject to Executive's continuous employment with the Company or EagleRock through the date thereof (the "**<u>Performance Condition</u>**"), EagleRock shall grant Executive a one-time bonus of $3,000,000, payable in cash or fully-vested shares of EagleRock, subject to EagleRock's applicable equity incentive plan and a definitive award agreement approved by the EagleRock Board or the EagleRock Compensation Committee (the "**<u>Public</u> <u>Listing Bonus</u>**"), on terms no less favorable to Executive than that provided under this Agreement. Within thirty (30) days following the IPO of EagleRock, the Company's Chief Executive Officer will provide Executive with a written notice that specifies whether the Public Listing Bonus will be paid in the form of cash, EagleRock shares or a combination of cash and EagleRock shares, with such decision regarding settlement to apply uniformly to all executive officers that are entitled to a "Public Listing

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Bonus" within their individual employment agreements. The Public Listing Bonus, whether payable in cash or shares of EagleRock, shall be paid or issued to Executive in two tranches, with one-half (<sup>1</sup>⁄<sub>2</sub>) of such amount paid or issued within the first week of the fiscal quarter immediately following the quarter in which the IPO occurs and the remaining one-half (<sup>1</sup>⁄<sub>2</sub>) paid or issued within the first week of the fiscal quarter thereafter, but in all events no later than March 15 of such following calendar year. Further provided that settlement may occur at any time prior to such date, as determined by the Company's Chief Executive Officer in its sole discretion. Notwithstanding the time of settlement provided within this paragraph, if applicable, the number of shares issuable pursuant to the Public Listing Bonus shall be determined by dividing the amount payable in shares by the offering price in connection with the IPO, with any fractional share rounded down to the nearest whole share. The Public Listing Bonus will be subject to applicable taxes and other withholdings; provided that, to the extent the Public Listing Bonus is payable in shares, Executive shall have the right to elect to have any applicable withholding satisfied through the withholding of shares based on their then fair market value. Notwithstanding anything to the contrary in this Agreement, if Executive's employment is terminated by the Company without Cause, or Executive resigns his employment for Good Reason, in either case prior to the occurrence of an IPO, then the Performance Condition shall be deemed satisfied notwithstanding such termination or resignation, and EagleRock shall grant Executive the Public Listing Bonus on the terms as otherwise provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Special Transaction Bonus</u>. If, prior to the occurrence of an IPO, the Company or substantially all of its assets are sold, merged or otherwise undergo a merger, acquisition or similar transaction (other than an IPO) approved by the Board (a "**Sales Transaction**"), Executive shall be eligible to participate in any special transaction bonus program on terms similar to those applicable to other employees of the Company, in each case subject to approval by the Board and to Executive's continued employment through the closing of the applicable Sales Transaction. Any such bonus shall be subject to applicable withholdings and plan/program terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Benefits and Expenses</u>. During the Employment Period, Executive shall be eligible to participate in the employee benefit plans and programs in which similarly situated Company employees are eligible to participate, subject to the terms and conditions of such plans and programs, as they may be amended from time to time. The Company shall reimburse Executive for reasonable and necessary business expenses incurred in the performance of Executive's duties hereunder in accordance with the Company's expense reimbursement policies as in effect from time to time and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Public Listing Additional Bonus.</u> Executive will be eligible to receive additional compensation (the "**<u>Public Listing Additional Bonus</u>**") as set forth in Exhibit A.

4.  **<u>Term of Employment; At-Will Employment</u>** . Executive's
employment hereunder shall commence on the Effective Date and shall continue until terminated in accordance with Section 7 (the "**Employment Period** "). Executive's employment is "at will," meaning that either
the Company or Executive may terminate employment at any time, with or without cause, and with or without notice, subject to the terms of this Agreement.

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5.  **<u>Confidentiality; Intellectual Property; Return of Property</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidential Information</u>. Executive acknowledges that, during the Employment Period, Executive will be provided with, and will have access to, confidential, competitively valuable, non-public or proprietary information of the Company Group and third parties with whom any member of the Company Group has confidentiality obligations (collectively, "**Confidential Information**"). Except as permitted by this Agreement, required by law, rule, regulation, or pursuant to any subpoena, court or arbitral order, or authorized in writing by the Board, Executive shall not use or disclose to any third party any Confidential Information at any time, during or after the Employment Period, other than in connection with Executive's employment by the Company, or otherwise for the benefit of the Company Group. Confidential Information includes, without limitation, trade secrets, business plans, strategies, financial data, pricing, customer and supplier information, legal analyses and strategies, and all non-public information concerning the business and affairs of the Company Group. Confidential Information shall not include information that is or becomes generally available to the public through no breach of this Agreement by Executive, that was available to Executive on a non-confidential basis before disclosure by or on behalf of the Company Group, or that becomes available to Executive on a non-confidential basis from a source not bound by confidentiality to the Company Group. Notwithstanding the foregoing, Executive shall be entitled to retain mental impressions of the Confidential Information, and such retained mental impressions shall not violate the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Whistleblower and Protected Activity</u>. Nothing in this Agreement prohibits or restricts Executive from initiating communications with, cooperating with, providing information to, or otherwise assisting in an investigation by any governmental or regulatory authority; responding to any inquiry or legal process from any such authority; or making other disclosures protected under applicable whistleblower laws. Pursuant to the Defend Trade Secrets Act, Executive will not be held liable under any trade secret law for disclosures made (i) in confidence to a government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, (ii) under seal in a court filing, or (iii) to an attorney in a retaliation lawsuit for reporting a suspected violation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Work Product; IP Assignment</u>. Executive shall promptly disclose and hereby assigns to the Company all right, title and interest in and to any and all inventions, works of authorship, developments, improvements, and other intellectual property conceived, developed, or reduced to practice by Executive alone or with others during the Employment Period that relate to the business of the Company Group or are created using Company Group resources, subject in all cases to applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Return of Property</u>. Upon the termination of employment or upon the Company's request at any time, Executive shall promptly return to the Company all documents, data and other property of the Company Group (including all copies and electronic records) in Executive's possession, custody or control.

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6.  **<u>Restrictive Covenants</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Solicitation of Employees and Certain Business Relations</u>. During the Employment Period and for twelve (12) months following the termination of Executive's employment for any reason, Executive shall not, directly or indirectly, (i) solicit for employment or engagement, hire, or induce to end their employment or engagement with any member of the Company Group any individual who is, or within the prior six (6) months was, an employee or contractor of any member of the Company Group with whom Executive worked or about whom Executive received Confidential Information; or (ii) knowingly interfere with, solicit to reduce or terminate, or attempt to adversely alter, any material business relationship between any member of the Company Group and any customer, supplier, or business partner with whom Executive had material dealings on behalf of the Company Group or about whom Executive received Confidential Information. The foregoing restrictions shall not apply to (i) general public solicitations and solicitations of employment agencies or "head-hunters", in each case, that are not specifically targeted towards such Company Group individuals, and (ii) inquiries for employment first initiated by such Company Group individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Disparagement</u>. During the Employment Period and thereafter, Executive shall not make any statement intended, or reasonably likely, to disparage or harm the reputation of the Company or any other member of the Company Group or their respective officers, managers, directors or employees; provided that nothing in this Section 6(b) shall prohibit truthful statements required by law or protected activity under Section 5(b). The Company shall instruct its senior executives and members of the Board not to make public statements intended, or reasonably likely, to disparage or harm the reputation of Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Professional Responsibility; No Restriction on Practice of Law Where Prohibited</u>. The parties acknowledge that Executive is an attorney licensed to practice law and that, to the extent applicable law or governing professional responsibility rules limit or prohibit restrictions on the practice of law, nothing in this Agreement is intended to, nor shall it, restrict Executive's right to practice law in violation of such law or rules. The covenants in this Section 6 shall be interpreted and, if necessary, modified to comply with such law and rules.

7.  **<u>Termination of Employment</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Cause**" means: (A) Executive's willful failure to substantially perform Executive's duties (other than due to Disability) after written notice and a reasonable cure period; (B) Executive's willful failure to comply in any material respect with a lawful directive of the Board; (C) Executive's conviction of, plea of guilty or nolo contendere to, or imposition of unadjudicated probation for, any felony or any crime involving moral turpitude; (D) Executive's unlawful use or possession of illegal drugs on Company premises or while performing duties; (E) Executive's fraud, embezzlement, misappropriation, material misconduct, or breach of fiduciary duty with respect to the Company Group; or (F) Executive's material breach of any agreement with or written policy of the Company Group, after written notice and a reasonable cure period if curable. Determinations of Cause shall be made by the Board in good faith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Good Reason**" means, without Executive's consent: (A) a material reduction in Base Salary or target annual bonus opportunity (other than an Across-the-Company Reduction affecting similarly situated executives); (B) a material diminution of Executive's title, authority, duties, or responsibilities; or (C) a requirement that Executive relocate Executive's principal work location more than fifty (50) miles from its then-current location; provided that Good Reason shall exist only if (1) Executive provides written notice to the Company of the existence of the condition within sixty (60) days of its initial occurrence; (2) the Company fails to cure such condition within thirty (30) days after receiving such notice; and (3) Executive resigns employment for Good Reason within thirty (30) days after the expiration of such cure period.

An "**<u>Across-the-Company Reduction</u>**" shall mean a general reduction in salaries of similarly situated senior executives employed by the Company.

Notwithstanding the foregoing provisions of <u>Section</u> <u>7(a)(ii)</u> or any other provision of this Agreement to the contrary, any assertion by Executive of a termination for Good Reason shall not be effective unless all of the following conditions are satisfied: (A) the condition described in <u>Section</u> <u>7(a)(ii)</u> giving rise to Executive's termination of employment must have arisen without Executive's prior written consent; (B) Executive must provide written notice to the Board of the existence of such condition(s) within sixty days after the initial occurrence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected for thirty days following the Board's receipt of such written notice; and (D) the date of Executive's termination of employment must occur within thirty days following the expiration of the Board's cure period in (C) of this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination</u>. The Company may terminate Executive's employment at any time with or without Cause, and Executive may resign employment at any time with or without Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Accrued Obligations</u>. Upon any termination of employment, Executive shall receive: (i) any accrued but unpaid Base Salary through the termination date; (ii) reimbursement of any unreimbursed business expenses incurred in accordance with Company policy; and (iii) any benefits due under the Company's employee benefit plans in accordance with the terms of such plans (collectively, the "**<u>Accrued Obligations</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Severance</u>. Except as expressly set forth in Section 3(b) with respect to vesting of the Equity Award upon a termination of employment by Executive for Good Reason, no severance or separation benefits are provided under this Agreement unless otherwise provided in a separate written agreement executed by the Company and Executive.

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8.  **<u>Dispute Resolution; Arbitration</u>** . Any dispute, controversy, or claim between Executive and any
member of the Company Group arising out of or relating to this Agreement or Executive's employment or termination ("  **<u>Dispute</u>**") shall be finally settled by binding, confidential arbitration in Houston, Texas,
administered by the American Arbitration Association ("  **<u>AAA</u>**") in accordance with its Employment Arbitration Rules then in effect. The arbitration shall be conducted before a single arbitrator selected in accordance with AAA
rules. The arbitrator shall have authority to grant all remedies available at law or equity, including injunctive relief and specific performance. All Disputes must be arbitrated on an individual basis, and neither party shall have the right to
arbitrate any Dispute as a class or collective action or in a representative capacity, or to participate as a class member in any such proceeding. The prevailing party in any arbitration shall be entitled to recover reasonable attorneys' fees
and costs as awarded by the arbitrator. Judgment on the award may be entered in any court of competent jurisdiction. Notwithstanding the foregoing, either party may seek temporary or preliminary injunctive relief from a court of competent
jurisdiction to enforce Sections 5 and 6 pending arbitration. This Section 8 shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1 et seq.

9.  **<u>Withholdings; Deductions</u>** . The Company may withhold from any payments due to Executive all
federal, state, local, or other taxes as required by law and make such other deductions as permitted or required by applicable law or authorized in writing by Executive.

10.  **<u>280G; Best Net</u>** . If any payments or benefits under this Agreement or otherwise constitute
"parachute payments" under Section 280G of the Internal Revenue Code and would result in an excise tax under Section 4999, such payments or benefits shall be either (a) reduced to the extent necessary to avoid the excise
tax or (b) paid in full, whichever yields the greater net after-tax benefit to Executive. Any reductions shall be made in a manner intended to maximize Executive's economic position and in
compliance with Section 409A (as defined below).

11.  **<u>Section</u> <u>409A</u>** . This Agreement is intended to comply with, or be
exempt from, Section 409A of the Internal Revenue Code and related guidance ("  **<u>Section</u> <u>409A</u>** "), and shall be interpreted and administered accordingly. Each installment payment hereunder
shall be treated as a separate payment for purposes of Section 409A. Any reimbursement or in-kind benefits subject to Section 409A shall be provided in a manner consistent with Treasury Regulation
§ 1.409A-3(i)(l)(iv). Notwithstanding anything to the contrary, to the extent required by Section 409A, if Executive is a "specified employee," any payments on account of a separation
from service that are non-qualified deferred compensation shall be delayed until the earlier of Executive's death or six (6) months after separation from service. The Company makes no representation
or warranty and shall have no liability for any taxes, penalties, or interest imposed on Executive under Section 409A.

12.  **<u>Governing Law; Venue</u>** . This Agreement shall be governed by and construed in accordance with the
laws of the State of Texas, without regard to its conflicts of law principles that would result in the application of the laws of any other jurisdiction. Subject to Section 8, the state and federal courts located in Houston, Texas shall have
exclusive jurisdiction over any action permitted to be brought in court under this Agreement, and each party irrevocably submits to the jurisdiction and venue of such courts.

------

13.  **<u>Notices</u>** . All notices under this Agreement shall be in writing and shall be deemed duly given when
delivered in person or by nationally recognized overnight courier, or on the second business day after deposit with such courier, to the addresses set forth below (or to such other address as a party may designate by notice to the other):

If to the Company:

EagleRock Land, LLC

9655 Katy Freeway, Suite 375

Houston, Texas 77024

Attn: Gregory Pipkin Jr.

If to Executive:

Robert W. Hunt Jr.

[\*\*\*]

14.  **<u>Assignment</u>** . This Agreement is personal to Executive, and Executive may not assign any rights or
obligations hereunder. The Company may assign this Agreement, without Executive's consent, to any member of the Company Group or to any successor to or acquirer of all or substantially all of the equity, assets, or business of the Company.
Notwithstanding the foregoing, the parties acknowledge and agree that the Company's assignment of this Agreement to EagleRock shall occur automatically upon the IPO Effective Date, without any further action required by any party, and
EagleRock shall thereupon assume all of Lea & Eddy Holdings, LLC's rights, responsibilities, and obligations under this Agreement.

15.  **<u>Entire Agreement; Amendment</u>** . This Agreement, together with the Plan and any applicable award
agreement, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, representations, understandings, and agreements (including any offer letter)
relating to such subject matter. This Agreement may be amended only by a written instrument signed by both parties.

16.  **<u>Deemed Resignations</u>** . Except as otherwise determined by the Board or as otherwise agreed to in
writing by Executive and any member of the Company Group prior to the termination of Executive's employment with the Company or any member of the Company Group, any termination of Executive's employment shall constitute, as applicable,
an automatic resignation of Executive: (a) as an officer of the Company and each other member of the Company Group; (b) from the Board; and (c) from the board of directors or board of managers (or similar governing body) of any member
of the Company Group and from the board of directors or board of managers (or similar governing body) of any corporation, limited liability entity, unlimited liability entity or other entity in which any member of the Company Group holds an equity
interest and with respect to which board of directors or board of managers (or similar governing body) Executive serves as such Company Group member's designee or other representative.

------

17.  **<u>Waiver; Severability</u>** . No waiver of any breach of this Agreement shall be deemed a waiver of any
subsequent breach. If any provision of this Agreement is determined to be invalid or unenforceable, such provision shall be enforced to the maximum extent permissible and the remaining provisions shall continue in full force and effect.

18.  **<u>Counterparts; Electronic Signatures</u>** . This Agreement may be executed in counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by facsimile, PDF, or by electronic signature service shall be deemed effective for all purposes.

[Remainder of page intentionally left blank; signature page follows]

------

IN WITNESS WHEREOF, the parties have executed this Amended and Restated Employment Agreement as of the Effective Date.

---

| | |
|:---|:---|
| LEA & EDDY HOLDINGS, LLC: | LEA & EDDY HOLDINGS, LLC: |
| By: | /s/ Elo Peter Omavuezi |
| Name: | Elo Peter Omavuezi |
| Title: | Chief Financial Officer |
| Date: | April 15, 2026 |
| EAGLEROCK LAND, LLC | EAGLEROCK LAND, LLC |
| By: | /s/ Greg Pipkin Jr. |
| Name: | Greg Pipkin Jr. |
| Title: | Chief Executive Officer |
| Date: | April 15, 2026 |
| EXECUTIVE: | EXECUTIVE: |
| /s/ Robert W. Hunt Jr. | /s/ Robert W. Hunt Jr. |
| Robert W. Hunt Jr. | Robert W. Hunt Jr. |
| Date: | April 15, 2026 |

---

------

**EXHIBIT A** 

[*Omitted.*]

EXHIBIT A

## Exhibit 10.15

**Exhibit 10.15** 

**FORM OF WARRANT EXERCISE AGREEMENT** 

This Warrant Exercise Agreement (this "***Agreement***"), is being entered into on , 2026, by and among EagleRock Land, LLC, a Texas limited liability company ("***PubCo***"), EagleRock Land Operating, LLC, a Texas limited liability company and a wholly owned subsidiary of PubCo ("***OpCo***"), Lea & Eddy Holdings, LLC, a Texas limited liability company ("***L&E***"), and the entities set forth on <u>Exhibit A</u> hereto (each, a "***Holder***" and collectively, the "***Holders***"). Each of PubCo, OpCo, L&E and each Holder are referred to herein as a "***Party***" and, collectively, the "***Parties***." Capitalized terms used but not defined herein, except as otherwise indicated, shall have the meaning ascribed to such terms in the Warrant Agreements (as defined below).

**WHEREAS**, L&E and each Holder entered into those certain Warrants to Purchase Common Units of L&E, as amended from time to time (each, a "***Warrant Agreement***"), pursuant to which L&E issued to each Holder Warrants representing the right to purchase the number of common units representing limited liability company interests in L&E (the "***L&E Units***") set forth next to the name of such Holder on <u>Exhibit A</u>;

**WHEREAS**, PubCo intends to commence an initial public offering of its Class A shares, representing limited liability company interests (such offering, the "***IPO***");

**WHEREAS**, pursuant to and in accordance with that certain Contribution and Assignment Agreement, dated as of the date hereof (the "***Contribution Agreement***"), by and among PubCo, OpCo, L&E and the other parties thereto, such parties agreed to complete certain contribution transactions in connection with the Closing (as defined below), including L&E's contribution all of the equity interests in its subsidiaries, to OpCo in exchange for (a) a number of units in OpCo ("***OpCo Units***") determined pursuant to the Contribution Agreement and a corresponding number of PubCo's Class B shares representing limited liability company interests (such shares, the "***Class B Shares***") and (b) the assumption by OpCo of the TCW Debt (as such term is defined in the Contribution Agreement) and the assumption of liabilities and obligations under the TCW Debt (such contribution, the "***L&E Contribution***");

**WHEREAS**, in connection with and conditioned on the consummation of the IPO, (i) each Holder wishes to exercise, pursuant to Section 2.01 of its Warrant Agreement, Warrants to purchase the number of L&E Units set forth on <u>Exhibit A</u> (such exercise, the "***Warrant Exercise***" and such exercised Warrants, the "***Exercised Warrants***"), (ii) each Holder wishes to forfeit the remaining portion of its Warrants and the right to purchase the number of L&E Units set forth on <u>Exhibit A</u> associated therewith (the "***Warrant Forfeiture***" and such forfeited Warrants, the "***Forfeited Warrants***") and (iii) the Parties wish to cancel all of the Forfeited Warrants;

**WHEREAS**, in connection with the IPO and L&E Contribution, the Parties wish to have L&E distribute to each Holder such percentage of OpCo Units and Class B Shares received by L&E in the L&E Contribution as is set forth on <u>Exhibit A</u> in redemption of the L&E Units received by such Holder in respect of its Exercised Warrants (the "***L&E Unit Redemption***"); and

**WHEREAS**, for convenience, in lieu of completing the Warrant Exercise and L&E Unit Redemption as described in the foregoing recitals, the Parties wish to have PubCo and OpCo issue to each Holder the number of OpCo Units and Class B Shares such Holder is entitled to receive pursuant to the L&E Unit Redemption (such issuance by OpCo, the "***OpCo Issuance***" and such issuance by PubCo, the "***PubCo Issuance***").

------

**NOW, THEREFORE**, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Issuance of</u> <u>OpCo</u> <u>Units and Class</u> <u>B Shares</u>**. Subject to and at the closing of the IPO and the completion of the transactions contemplated by the Contribution Agreement (the "***Closing***"), in lieu of completing the Warrant Exercise and the L&E Unit Redemption as described in the applicable foregoing recitals, L&E and each Holder agree that each Holder shall receive, and OpCo and PubCo hereby agree to complete, the OpCo Issuance and the PubCo Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Agreement to Exercise Warrants</u>**. Subject to the Closing, notwithstanding the OpCo Issuance and the PubCo Issuance, the Warrant Exercise and Warrant Forfeiture are deemed to have occurred pursuant to each Warrant Agreement. This Agreement shall serve as each Holder's notice of election to exercise its Exercised Warrants under Section 2.01 of the applicable Warrant Agreement and L&E's notice to the Holder under Section 5 of the applicable Warrant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Termination of Warrant Agreement and Warrant Certificates; Release</u>**. Upon the OpCo Issuance and the PubCo Issuance as described in <u>Section</u> <u>1</u>, each Warrant Agreement will automatically be terminated and the Forfeited Warrants forfeited pursuant to <u>Section</u> <u>2</u> shall be irrevocably cancelled. Effective upon such termination, L&E, on the one hand, and each Holder, on the other hand, hereby release and forever discharge the other from any and all claims, demands, damages, actions, causes of action, and liabilities of any kind or nature whatsoever, whether known or unknown, arising out of or relating to the Warrants or the Warrant Agreements, other than any claims arising under this Agreement and the Operating Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Waiver of Certain Requirements Under the Warrant</u>**. L&E and each Holder hereby agree to waive the following requirements associated with the Warrant Exercise pursuant to Section 10.04 of the applicable Warrant Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the payment of the Exercise Price pursuant to Section 2.01(B)(i) of the applicable Warrant Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the requirement for the Holder to deliver a joinder to L&E's operating agreement if not already a
party thereto pursuant to Section 2.01(C) of the applicable Warrant Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. surrender of the applicable Warrants to L&E.

In addition, this Agreement hereby amends each Warrant Agreement to allow for the forfeiture of a portion of the applicable Forfeited Warrants pursuant to <u>Section</u> <u>2</u> hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Representations and Warranties of L&E, PubCo and OpCo</u>**. L&E, PubCo and OpCo represent, warrant and agree (as to itself) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. each of L&E, PubCo and OpCo is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Texas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. each of L&E, PubCo and OpCo has all requisite authority and power to enter into and consummate the
transactions contemplated by this Agreement and such transactions do not contravene any of its organizational documents or any contractual, regulatory or other obligation or restriction applicable to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. this Agreement has been duly authorized, executed and delivered by each of L&E, PubCo and OpCo and
constitutes a legal, valid and binding obligation of each such party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and
general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. each of L&E, PubCo and OpCo is not required to obtain any consent, authorization or order of, or make any
filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other person, including, without limitation, any other security holders of L&E, in order to execute, deliver or perform any of its
obligations under or contemplated by this Agreement. All consents, authorizations, orders, filings and registrations which L&E, PubCo or OpCo are required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to
the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. all OpCo Units and Class B Shares issuable pursuant to this Agreement shall be duly and validly issued,
fully paid and nonassessable and free and clear of any Liens, other than restrictions under the Securities Act of 1933, as amended, the Limited Liability Company Agreement of PubCo, as may be amended, and the Limited Liability Company Agreement of
OpCo, as may be amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Representations and Warranties of the Holders</u>**. Each Holder represents, warrants and agrees (as to itself) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. such Holder is an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. such Holder has all requisite authority and power to enter into and consummate the transactions contemplated by
this Agreement and such transactions do not contravene any of its organizational documents or any contractual, regulatory or other obligation or restriction applicable to such Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. this Agreement has been duly authorized, executed and delivered by such Holder and constitutes a legal, valid
and binding obligation of such Holder, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. such Holder is not required to obtain any consent, authorization or order of, or make any filing or
registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other person in order to execute, deliver or perform any of its obligations under or contemplated by this Agreement;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. such Holder is the sole legal owner and registered holder of the Warrants held by such Holder, free and clear
of all Liens, other than restrictions under the Securities Act of 1933, as amended, applicable state securities laws, the applicable Warrant Agreement, the Credit Agreement and the Operating Agreement, and has not sold, transferred, assigned,
pledged, hypothecated or otherwise disposed of, or granted any option or right to acquire, such Warrants or any portion thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. there is no action, suit, proceeding, inquiry or investigation before or by any court or government agency
pending or, to the knowledge of such Holder, threatened against such Holder that would reasonably be expected to have an adverse effect on Holder's performance of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Interim Covenants</u>**. During the period from the date of this Agreement until the earlier of the completion of the transactions contemplated by this Agreement or the termination of this Agreement, each Holder covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. each Holder shall not sell, transfer, assign, pledge, hypothecate or otherwise dispose of, or grant any option
or right to acquire, any Warrant or any portion thereof, or any right, title or interest therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. each Holder shall not exercise any Warrant or any portion thereof, except as contemplated by this Agreement;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. each Holder shall not create, incur, assume or permit to exist any Lien on any Warrant or any portion thereof,
other than restrictions under the Securities Act of 1933, as amended, applicable state securities laws, the applicable Warrant Agreement, the Credit Agreement and the Operating Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Further Assurances</u>**. Each Party shall promptly notify the other Parties in writing of any event, condition or circumstance that would reasonably be expected to result in any representation or warranty of such Party set forth in this Agreement being untrue or inaccurate in any material respect or any covenant of such Party set forth in this Agreement not being satisfied in any material respect. The Parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purpose and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Amendment</u>**. This Agreement and any provision hereof may be changed, waived, discharged or terminated, but only by an instrument in writing signed by each Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Severability</u>**. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Governing Law</u>**. This Agreement and the rights and obligations of the Parties under this Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Entire Agreement</u>**. This Agreement constitutes the full and entire understanding and agreement between the Parties with respect to the subject matter hereof, and cancels and supersedes all prior and contemporaneous agreements or understandings, whether written or oral, with respect to the subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Termination</u>**. This Agreement shall terminate automatically on , 2026 if the Closing shall not have occurred prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Counterparts; Electronic Signatures</u>**. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by facsimile or electronic transmission (including by email in PDF format or through any electronic signature platform) shall be deemed to be original signatures for all purposes.

[*Remainder of Page Intentionally Blank*]

------

**IN WITNESS WHEREOF**, this Agreement is executed as of the day and year first written above.

---

| |
|:---|
| **EAGLEROCK LAND, LLC** |
| By: |
| Name: |
| Title: |
| **EAGLEROCK LAND OPERATING, LLC** |
| By: |
| Name: |
| Title: |
| **LEA & EDDY HOLDINGS, LLC** |
| By: |
| Name: |
| Title: |
| **[Holder]** |
| By: |
| Name: |
| Title: |

---

SIGNATURE PAGE TO

WARRANT EXERCISE AGREEMENT

------

**<u>Exhibit A</u>**

**Warrants, L&E Units, OpCo Units and Class B Shares**

## Exhibit 21.1

**Exhibit 21.1** 

**EagleRock Land, LLC** 

**List of Subsidiaries** 

---

| | |
|:---|:---|
| Name | Jurisdiction of Organization |
| EagleRock Land Operating, LLC | Texas |
| Hydrosource Logistics Waste Management, LLC | Texas |
| Desert Ram Holdings, LLC | Texas |
| Desert Ram South, Inc. | Delaware |
| Desert Ram South Ranch, Inc. | New Mexico |
| Desert Ram North Ranch, LLC | Texas |
| Accelerated Water Resources, LLC | Delaware |
| Basin Properties Ranches, LLC | Delaware |
| RRR and Basin Properties Ranches LLC | New Mexico |
| Limestone Basin Properties Ranch, LLC | Delaware |
| RRR and Limestone Basin Properties Ranch LLC | New Mexico |
| AWR Equipment, LLC | Delaware |
| Accelerated SWD, LLC | Delaware |
| DE IV Flow, LLC | Delaware |

---

## Exhibit 23.1

**Exhibit 23.1** 

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

We consent to the use in this Registration Statement on Form S-1 of our report dated March 13, 2026, relating to the financial statements of Lea & Eddy Holdings, LLC. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

---

| |
|:---|
|  /s/ DELOITTE & TOUCHE LLP |
|  Houston, Texas |
|  April 16, 2026 |

---

## Exhibit 23.2

**Exhibit 23.2** 

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

We consent to the use in this Registration Statement on Form S-1 of our report dated March 13, 2026, relating to the financial statements of EagleRock Land, LLC. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

---

| |
|:---|
|  /s/ DELOITTE & TOUCHE LLP |
|  Houston, Texas |
|  April 16, 2026 |

---

## Exhibit 23.3

**Exhibit 23.3** 

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

We have issued our report dated January 8, 2026, with respect to the consolidated financial statements of Accelerated Water Resources, LLC for the years ended December 31, 2024 and December 31, 2023. We consent to the use of the aforementioned report in the Registration Statement on Form S-1 of EagleRock Land, LLC and to the reference to our firm under the heading "Experts" in such Registration Statement.

---

| |
|:---|
|  /s/ EEPB |
|  Houston, Texas |
|  April 16, 2026 |

---

## Exhibit 23.4

**Exhibit 23.4** 

**CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS** 

We have issued our report dated March 11, 2026, with respect to the combined carve-out financial statements of DE IV Flow, LLC contained in the Registration Statement (Form S-1) and Prospectus of EagleRock Land, LLC. We consent to the use of the aforementioned report in the Registration Statement and Prospectus, and to the use of our name as it appears under the caption "Experts."

---

| |
|:---|
|  /s/ GRANT THORNTON LLP |
|  Dallas, Texas |
|  April 16, 2026 |

---

## Exhibit 23.5

**Exhibit 23.5** 

**Consent of Independent Auditor** 

We consent to the use in this Registration Statement on Form S-1 of our report dated March 6, 2026, relating to the combined carve-out financial statements of certain land, improvements, and surface rights businesses of Abyss, Inc. Cactus Energy, Inc., Owl Exploration, LLC, Shallow Valley Lands LLC, and Mark T. Dehlinger (collectively referred to as Shallow Valley Ranch), which comprise the combined carve-out balance sheets as of December 31, 2025 and 2024, and the related combined carve-out statements of income, changes in net investment, and cash flows for the years then ended, and the related notes to the financial statements, appearing in the Prospectus, which is part of this Registration Statement. We also consent to the reference to us under the caption "Experts" in such Registration Statement.

---

| |
|:---|
|  /s/ Weaver and Tidwell, L.L.P. |
|  WEAVER AND TIDWELL, L.L.P. |
|  Midland, Texas |
|  April 16, 2026 |

---

## Exhibit 99.1

**Exhibit 99.1** 

**Consent of Director Nominee** 

**EagleRock Land, LLC** 

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**<u>Securities Act</u>**"), in connection with the filing of the Registration Statement on Form S-1 (the "**<u>Registration Statement</u>**") of EagleRock Land, LLC with the U.S. Securities and Exchange Commission, the undersigned hereby consents to being named and described as a director nominee in the Registration Statement, including in the section thereof entitled "Management," and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

IN WITNESS WHEREOF, the undersigned has executed this consent as of the 16<sup>th</sup> day of April, 2026.

---

| |
|:---|
| /s/ Gregory Pipkin Jr. |
| Gregory Pipkin Jr. |

---

## Exhibit 99.2

**Exhibit 99.2** 

**Consent of Director Nominee** 

**EagleRock Land, LLC** 

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**<u>Securities Act</u>**"), in connection with the filing of the Registration Statement on Form S-1 (the "**<u>Registration Statement</u>**") of EagleRock Land, LLC with the U.S. Securities and Exchange Commission, the undersigned hereby consents to being named and described as a director nominee in the Registration Statement, including in the section thereof entitled "Management," and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

IN WITNESS WHEREOF, the undersigned has executed this consent as of the 16<sup>th</sup> day of April, 2026.

---

| |
|:---|
| /s/ Richard H. Coats |
| Richard H. Coats |

---

## Exhibit 99.3

**Exhibit 99.3** 

**Consent of Director Nominee** 

**EagleRock Land, LLC** 

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**<u>Securities Act</u>**"), in connection with the filing of the Registration Statement on Form S-1 (the "**<u>Registration Statement</u>**") of EagleRock Land, LLC with the U.S. Securities and Exchange Commission, the undersigned hereby consents to being named and described as a director nominee in the Registration Statement, including in the section thereof entitled "Management," and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

IN WITNESS WHEREOF, the undersigned has executed this consent as of the 16<sup>th</sup> day of April, 2026.

---

| |
|:---|
| /s/ Jeff S. Lott |
| Jeff S. Lott |

---

## Exhibit 99.4

**Exhibit 99.4** 

**Consent of Director Nominee** 

**EagleRock Land, LLC** 

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**<u>Securities Act</u>**"), in connection with the filing of the Registration Statement on Form S-1 (the "**<u>Registration Statement</u>**") of EagleRock Land, LLC with the U.S. Securities and Exchange Commission, the undersigned hereby consents to being named and described as a director nominee in the Registration Statement, including in the section thereof entitled "Management," and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

IN WITNESS WHEREOF, the undersigned has executed this consent as of the 16<sup>th</sup> day of April, 2026.

---

| |
|:---|
| /s/ James C. Nelson |
| James C. Nelson |

---

## Exhibit 99.5

**Exhibit 99.5** 

**Consent of Director Nominee** 

**EagleRock Land, LLC** 

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**<u>Securities Act</u>**"), in connection with the filing of the Registration Statement on Form S-1 (the "**<u>Registration Statement</u>**") of EagleRock Land, LLC with the U.S. Securities and Exchange Commission, the undersigned hereby consents to being named and described as a director nominee in the Registration Statement, including in the section thereof entitled "Management," and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

IN WITNESS WHEREOF, the undersigned has executed this consent as of the 16<sup>th</sup> day of April, 2026.

---

| |
|:---|
| /s/ Stephanie Reed |
| Stephanie Reed |

---

## Exhibit 99.6

**Exhibit 99.6** 

**Consent of Director Nominee** 

**EagleRock Land, LLC** 

Pursuant to Rule 438 of Regulation C promulgated under the Securities Act of 1933, as amended (the "**<u>Securities Act</u>**"), in connection with the filing of the Registration Statement on Form S-1 (the "**<u>Registration Statement</u>**") of EagleRock Land, LLC with the U.S. Securities and Exchange Commission, the undersigned hereby consents to being named and described as a director nominee in the Registration Statement, including in the section thereof entitled "Management," and any amendment or supplement to any prospectus included in such Registration Statement, any amendment to such Registration Statement or any subsequent Registration Statement filed pursuant to Rule 462(b) under the Securities Act and to the filing or attachment of this consent with such Registration Statement and any amendment or supplement thereto.

IN WITNESS WHEREOF, the undersigned has executed this consent as of the 16<sup>th</sup> day of April, 2026.

---

| |
|:---|
| /s/ Michael W. Wallace |
| Michael W. Wallace |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**EagleRock Land, LLC**  |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A shares representing limited liability company interests | 457(o) | $100000000.00 | 0.0001381 | $13810.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $13810.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $13810.00  |

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 **Offering Note** <br>

<sup>1</sup> (1) Includes Class A shares representing limited liability company interests ("Class A shares") issuable upon exercise of the underwriters' option to purchase additional Class A shares, if any. (2) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.

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| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

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